after the funds (excluding monetary funds) have been running for a period of time and gained certain profits, some funds (excluding monetary funds) will choose to pay dividends.

There are two ways for investors to choose dividends from funds (excluding monetary funds):

1. Cash dividend is also called dividend (tax-free), and the dividend day is called dividend day.

2. Dividend reinvestment. Investors choose this method, and the fund (excluding monetary fund) will automatically convert the dividend income into the original fund share according to the net value of the fund on the dividend date (free of handling fee and tax).

At present, open-end funds generally provide investors with two options for dividend distribution, namely, obtaining cash or reinvesting dividends. Dividend reinvestment is a service provided by fund management companies to investors to reinvest the dividends directly in the fund. If cash is selected, the dividend will be transferred from the fund custody account to the bank deposit account reserved by the investor on the dividend implementation date. If you don't need cash for the time being and want to reinvest directly, you can choose the dividend reinvestment method. In this case, the dividend funds will be converted into the corresponding fund units and credited to your account, and the reinvestment fee is generally exempted. If you want to change the original dividend distribution method, you can also go through the change procedures at the business outlets of fund management companies or consignment agencies where you handle fund business.