(1) There are provisions in the fund contract, and there will be no violations! General fund contracts will stipulate the conditions of fund income distribution. As long as this condition is met, dividends must be paid. On the other hand, if the dividend conditions stipulated in the fund contract are not met, the income distribution may not be carried out.
(2) In the case that the fund contract does not stipulate that dividends must be paid to meet the dividend conditions, the fund company will decide whether to pay dividends in combination with the judgment of the securities market and the adjustment of investment strategy within the scope stipulated in the contract, with the aim of protecting the realized investment income of investors, providing them with cash for income or providing them with the choice of whether to continue investing. Provide investors with a choice that can not only lock in the existing income, but also safely drop the bag. Moreover, compared with fund redemption, cash dividends do not need to consider redemption fees. If the market outlook falls, dividends can help investors avoid risks and turn the floating surplus in the account into money in the capital account.
Is there a handling fee for fund dividends? No matter whether you choose cash dividend or dividend reinvestment, there is no handling fee at present, and there is no personal income tax for fund dividend at present. In addition, for corporate investors, the funds obtained from dividends do not need to pay income tax, which is also a reasonable tax avoidance method.