For open-end funds, at present, most fund companies provide cash dividends and dividend reinvestment for investors to choose from. Investors choose to pay dividends in cash, and the dividends will be transferred from the fund custody account to the bank deposit account designated by the investors on the dividend payment date; Dividend reinvestment is a service provided by fund management companies to investors. The dividend obtained is directly reinvested in the fund, which is equivalent to the income distribution of listed companies in the form of rights issue. If investors don't need cash for the time being, they can choose dividend reinvestment. In this case, the dividend funds will be converted into corresponding fund shares and credited to the investor's account, and the reinvestment fee is generally exempted. Fund dividend means that the fund distributes part of its income to fund investors in cash.
For open-end funds, at present, most fund companies provide cash dividends and dividend reinvestment for investors to choose from. Investors choose to pay dividends in cash, and the dividends will be transferred from the fund custody account to the bank deposit account designated by the investors on the dividend payment date; Dividend reinvestment is a service provided by fund management companies to investors. The dividend obtained is directly reinvested in the fund, which is equivalent to the income distribution of listed companies in the form of rights issue. If investors don't need cash for the time being, they can choose dividend reinvestment. In this case, the dividend funds will be converted into corresponding fund shares and credited to the investor's account, and the reinvestment fee is generally exempted.
For closed-end funds, because the fund share is fixed, the income distribution can only be in the form of cash, and so is ETF.