1, dividend conversion is the reinvestment of investment income. After purchasing the fund, you will see it in the application of purchasing channels. Reinvestment and reinvestment have the same meaning, that is, when the fund pays dividends, the fund holder will directly use the cash from dividends to buy the fund at the fund price of the day, and increase the original fund share, and generally confirm the share on the next trading day.

2. Reinvestment is a compound interest investment method. If you continue to be optimistic about the funds held in your hands, you can choose to reinvest. There is no need to pay additional subscription fees for reinvested shares, and redemption fees can only be paid at the time of redemption.

3. Another dividend method is cash dividend, that is, when the fund pays dividends, it holds the dividend money in its hand and does not make compound interest investment. Therefore, if investors want to "put their pockets in a safe place", investors can choose to pay dividends in cash.

4. The fund dividend will be distributed to investors in cash by reducing the net value of the fund. In fact, dividend capital is the net value after the fund rises.

5. Fund investment is an indirect way of securities investment. Fund management companies concentrate investors' funds by issuing fund shares, which are managed by fund custodians (qualified banks). Fund managers manage and use funds to invest in financial instruments such as stocks and bonds, and then share the investment risks and benefits. Generally speaking, the securities investment fund is an investment tool that collects the funds of many investors and gives them to the bank for safekeeping, and the fund management company is responsible for investing in stocks, bonds and other securities to maintain and increase their value. Value.

1. Prohibited projects for fund investment:

According to the current laws and regulations, the investment activities prohibited by China's fund assets mainly include:

(1) underwriting securities.

(2) Providing loans or guarantees to others;

(three) engaged in unlimited liability investment;

(4) buying and selling other fund shares, except as otherwise provided by the State Council.

(5) making capital contributions to fund managers and fund custodians, or buying and selling stocks and bonds issued by fund managers and fund custodians;

(6) buying and selling securities issued by shareholders who have control relations with their fund managers and fund custodians, or securities issued by companies that have other significant interests with their fund managers and fund custodians, or securities underwritten during the underwriting period;

(seven) engaged in insider trading, manipulation of securities trading prices and other improper securities trading activities;

(eight) the relevant provisions of laws and administrative regulations, other activities prohibited by the the State Council securities regulatory agency.