For example, before normalization, the net value was 1.2, and you had 10000 shares. Then the normalized net value becomes 1, and your share becomes 12000 shares.

Fund dividend means that the fund distributes part of the income to investors in cash, which is originally a part of the net value of the fund unit.

According to Article 38 of the Interim Measures for the Administration of Securities Investment Funds, fund management companies must distribute 90% of their net income in cash at least once a year. The "Interim Measures" have expired, and how to allocate them now is subject to the provisions of the Fund Contract.

Extended data:

Generally speaking, fund dividends need to meet the following principles:

1. The current income of the fund can only be distributed after making up the previous losses;

2. After the distribution of fund income, the net value of each fund share cannot be lower than the face value;

3. If the fund loses money in the current period, no income distribution will be made. Some funds also stipulate the distribution method of fund income in advance in the prospectus, such as the minimum and maximum distribution times in a year, or dividends when the distributable income reaches a certain standard.

People's Network-Top-up Conversion of Graded Index Fund

Baidu Encyclopedia-Interim Measures for the Administration of Securities Investment Funds