Fund cash dividend refers to that the fund company distributes part of the fund income purchased by investors to investors after obtaining the income, but this part of the fund dividend is converted into cash for dividend payment and directly credited to the investor's current account. Usually this part of the dividend refers to the part of the net value of the fund unit, not the part of the extra income.

Introduction of fund dividend model

Generally speaking, the fund dividend includes two ways, one is the cash dividend of the fund, and the other is the reinvestment of the dividend of the fund. In the initial stage of investment, investors should choose the investment return method that suits them from two kinds of fund dividends. For cautious investors, cash dividends are generally chosen, so that the fund income from investment can be directly returned to the bank card in the form of cash. But for investors who like long-term investment, it is more ideal to choose dividend reinvestment, which can directly convert dividend funds into corresponding fund shares and save the cost of reinvestment.