Fund dividend generally refers to the distribution of part of the fund's income to fund investors. Only when the fund makes money will there be fund dividends. The fund fell seriously, and some funds did not pay dividends. Does the fund still pay dividends when it falls? Why does the fund keep falling and pay dividends? I have prepared relevant contents for your reference.

Will the fund still pay dividends if it falls?

There will be dividends when the fund falls. However, it does not mean that there must be dividends when the fund falls. Some funds have dividends when they fall, and some funds have no dividends when they fall, mainly depending on whether the fund meets the conditions for fund dividends.

Fund dividends shall meet the following three conditions:

1, the fund can only be distributed after the current year's income makes up for the previous year's losses;

2. After the distribution of fund income, the unit net value cannot be lower than the face value;

3. If the fund investment has a net loss in the current period, it cannot be distributed.

Why does the fund keep falling and pay dividends?

Because as long as the fund meets the above three conditions, even if it has been falling, it is possible to pay dividends as long as the current income of the fund makes up for the loss of the previous year. At present, fund dividends are divided into two ways: cash dividends and dividend reinvestment.

Cash dividend means that the fund company distributes part of the fund's income to fund investors in cash, while dividend reinvestment means that when the fund pays dividends, the fund holders convert the cash obtained from dividends into fund shares according to the net value of the fund on that day and distribute them to investors.

Fund dividends have little effect on the fund. Fund dividends will not cause the rise and fall of funds, but funds are risky investments. Investors must be cautious when buying.