The funds in Alipay will be announced before dividends, so investors should pay attention. Even if you don't pay attention to the announcement, as long as you meet the conditions for participating in the dividend, the system will automatically pay dividends, but if there is no dividend method, the default is cash dividend. After paying dividends, you can see the changes in the funds in the account.
There are two ways: cash dividend and dividend reinvestment. Closed-end funds must pay cash dividends. Open-end funds can choose dividend reinvestment or cash dividend. Investors can choose the dividend payment method by themselves, and open the Alipay mobile client-wealth management-fund-holding-fund selection-dividend payment method-selection method-confirmation.
Fund dividends will not bring great benefits to investors. Don't blindly pursue dividend-paying funds.
It is understood that there is no redemption fee for cash dividends, which is equivalent to redeeming some funds at zero rate, which can lock in the income to a certain extent. The advantage of dividend reinvestment is that it can avoid subscription fees, so it can reduce investment costs, which will cause a large income gap for many long-term investors.
Therefore, no matter which dividend method is chosen, the above two fund dividend methods have little impact. Generally speaking, cash dividends are suitable for those who are not optimistic about the market outlook and have financial needs in the near future. Dividend reinvestment is suitable for long-term value investors who are optimistic about the market outlook and have no short-term demand for funds. Investors can choose according to their own situation.