Fund dividends are mainly paid in cash and reinvested in dividends, in which cash dividends are paid in cash and reinvested in funds, that is, in the form of fund shares.
The bond fund's dividend principal is less because the bond fund uses cash dividend to earn the dividend money into the account. For example, the bond fund bought with the money of bank card, the dividend money of the fund went into the bank card, and the bond fund bought with the money of Yu 'ebao, the dividend money of the fund went into Yu 'ebao. The money did not disappear, but returned to the previous account.
After the fund pays dividends, the net value of the bond fund will decrease accordingly, and the market value of the bond fund held by investors will decrease, giving investors a feeling that the dividend principal of the bond fund is less.
Dividends of bond funds are actually deducted from the principal, that is, the money inside is taken out, and the total share remains the same, but the net value becomes smaller, and the reduced market value is exactly equal to the money obtained from dividends.
Fund dividends will not affect the fund. Only when the fund meets certain conditions will it pay dividends. Some funds have been falling, and no matter how serious they fall, there will be no dividends.