Fund dividends are divided into two ways: cash dividends and dividend reinvestment, in which cash dividends refer to fund companies distributing part of fund income to fund investors in cash; Dividend reinvestment means that when the fund pays dividends, the fund holders convert the cash from dividends into fund shares according to the net value of the fund on that day and then distribute them to investors.

Therefore, if the fund dividend is paid in cash, it will not increase the investor's holding share, but if the dividend is reinvested, it will increase the investor's holding share.

For example, if an investor buys 1 0,000 shares of a fund and the fund pays dividends in cash, that is, every 1 share of the fund is distributed, then the investor holds 1 0,000 shares and the holding share becomes 1 0,654,38+.

It should be noted that no matter which dividend distribution method is adopted, the net value of the fund will be lowered after dividend distribution, and the total assets of investors will not change.