In addition, when investors invest in this fund, the income is obtained through fund dividends, and when the dividends are reinvested, the income will also be converted into fund shares. If it is a cash dividend, the proceeds will not be converted into shares and will be directly transferred to the investor's bank card.
Cash dividends and dividend reinvestment.
Cash dividend is the default dividend method. If you haven't modified the dividend method, so be it. Dividends will be paid directly to your associated bank account.
If dividends are reinvested, the dividends will automatically become fund shares, which will increase the share. Number of new shares = dividend amount/dividend daily net value. There is an exception here. Money funds and wealth management funds cannot modify the dividend distribution method. The only way to pay dividends for such funds is to reinvest the dividends.
How to calculate the fund income?
If the subscription funds are before the working day 15, the income will be calculated from the second working day. If you buy after 15 on the same day, you need to calculate the income on the second and third working days. If the fund is purchased during holidays, it will be recognized by the system as the first working day after holidays, and the income will be calculated the next day.
Extended data:
Precautions:
Investors have long-term planned investment funds, and dividends are temporarily useless to users. At this time, they can choose to reinvest in dividends. The other is very optimistic about the prospects of the fund, and it is expected that there will be more room for growth. At this time, if you choose dividend reinvestment, you can achieve the investment goal of rolling interest.
Dividend reinvestment can be converted into shares no matter how much money, even if it is only a few dollars. However, this part of the dividend reinvestment can only be purchased according to the net value of the dividend payment date, and the dividend will be calculated according to the date.