What is fund return?
Fund reinvestment refers to reinvesting the proceeds from the purchase of funds into the fund for compound interest and appreciation.
There are two ways to return the fund: one is manual operation, and investors buy the fund again by themselves; The second is to automatically return investment. After the automatic return on investment is set, the fund will be automatically re-purchased after the fund income is received.
The return of funds can increase the utilization efficiency of funds, save transaction costs, and enable investors to better realize the compound interest effect. Especially in the period of economic growth, the fund's rate of return will continue to increase, the income will increase, the return investment will increase, and the income brought by the return investment will also increase, forming a good compound interest effect.
However, it should be noted that the return on investment does not necessarily mean a high rate of return. It is possible that the fund will continue to grow and its income will increase during this period. It is also possible that after the fund returns to investment, the fund will fall in the future, which may lead to losses. Therefore, it is best to carefully consider whether to make return investment and the proportion of return investment according to your investment risk preference and the actual situation of the fund.
What is fund dividend reinvestment?
The reinvestment of fund dividends is actually a kind of reinvestment. When the fund pays dividends, it does not choose cash dividends, but converts the cash due for dividends into shares according to the fund's net market value and distributes it to investors' accounts, which will have the effect of compound interest when the fund's net value rises.
The advantage of reinvesting fund dividends is that there is no subscription fee for the increased share.
Note: the income of this fund will be included in the second day after the fund subscription confirms the share, and there will be no income if it is not open on holidays. For example, buy a fund before 3 pm on Friday, confirm the share and calculate the income next Monday, and the income on Monday will not be displayed until Tuesday.