According to the Interim Measures for the Management of Securities Investment Funds, fund management must allocate at least 90% of the net income of the fund in cash at least once a year. The net income of the fund refers to the balance of the fund income after deducting the expenses that can be deducted from the fund income according to the relevant regulations, including dividends, bonuses, bond interest, price difference between buying and selling securities, bank deposit interest and other income. In addition, the cost or expense savings arising from the use of fund assets should also be included in the fund income. Because closed-end funds generally do not issue new fund shares during the duration, income distribution can only be carried out in the form of cash, and most open-end funds can choose to receive cash or dividends for reinvestment. The dividend reinvestment method is to buy back the fund shares directly with the due cash income, which is equivalent to the listed company distributing the income in the form of stock dividend. But in fact, these two ways of paying dividends are actually exactly the same when they pay dividends. Fund dividend means that the fund distributes part of the income to fund investors in cash, which is originally a part of the net value of the fund unit. So what you actually get is the assets on your own books, which is why the net value of the fund unit fell on the day of dividends (ex-dividend date). Dividend is not the more the better, you should choose a dividend method that suits your needs. For open-end funds, if you want to realize income, you can also redeem part of the fund shares to achieve the effect of cash dividends; Therefore, whether the fund pays dividends or not will not have a significant impact on your investment income. For closed-end funds, it is sometimes not feasible to realize fund income by selling fund shares because the unit price of the fund is often different from the net value of the fund. In this case, fund dividends become the only reliable way to realize fund income. Investors should pay more attention to dividends when choosing closed-end funds.