After the fund pays dividends, the original investment principal will change. Dividends are not as much as possible. Investors should choose a dividend distribution method that suits their own needs. Fund dividend is not the biggest standard to measure fund performance. The biggest criterion to measure the fund's performance is the growth of the fund's net value, and dividends are just the cash for the growth of the fund's net value.

For open-end funds, if investors want to realize income, they can also redeem part of the fund shares to achieve the effect of cash dividends; Therefore, whether the fund pays dividends and the number of dividends will not have a significant impact on investors' investment income.

For example, if you hold 6,543,800+shares of a fund, each fund share will receive a dividend of 0.05 yuan: if you choose the cash dividend method, then the basic people will receive a cash dividend of 0.5 million yuan; Assuming that dividends are reinvested and the net value of fund shares on the dividend base date is 1.25 yuan, then the citizen can be divided into 5,000 yuan1.25 yuan/share = 4,000 fund shares, and the fund shares will become104,000. As the total assets of the fund decreased due to dividends, the net value of the fund decreased after dividends.

The default dividend method of open-end funds is cash dividend, but the basic people can change it independently according to the individual's specific situation and the changes in the fund market. When changing the dividend distribution method, the consignment customer needs to bring his ID card and securities card to the consignment agency that originally purchased the fund for modification; Direct selling customers can modify themselves through the fund company's website or telephone trading system.

Baidu Encyclopedia-Fund Dividends