Fund dividend refers to the process that the fund company regularly distributes part of the income to fund holders in the form of cash or stock according to the fund income. This is equivalent to the return on investors' fund investment, and its share depends on the fund share held by individuals and the dividend ratio announced by the fund company. But dividends may also need to be deducted from the principal, which is important information that investors need to know.

Deducting the principal means that a part of the dividend amount of the fund is used to repay the management fee, sales fee or other expenses of the fund, and the corresponding funds can no longer be included in the investment port, that is, part of the principal is "deducted". This is also why when fund companies announce dividends, there will be words such as "deducting related expenses". Investors need to pay attention to this information when calculating income and accurately evaluate the rate of return.

Although dividends are deducted from the principal, the development and performance of the fund are still considerable. Investors can obtain a relatively safe investment environment and a higher income level by diversifying asset risks and relying on the professional management of fund managers. As long as we manage our investment portfolio well and understand the operation strategy and dividend mechanism of fund companies, we can achieve good economic benefits in the process of asset management. When buying a fund, besides paying attention to the dividend ratio and the deduction of principal, it is also necessary to rationally evaluate the risk-return ratio to avoid over-concentration of investment in a single fund.