The income of an investment fund includes both the growth of the net value of the fund and the dividends of the fund. Many investors think that there is a certain relationship between participating in fund dividends and the time of holding the fund. So how long can the fund hold dividends?

How long can the fund hold dividends?

In fact, the dividend of the fund has nothing to do with the holding time of the fund. As long as the fund meets the following three conditions, it can be distributed:

1 The fund's income in the current year can make up for the loss in the previous year;

After the distribution of fund income, the unit net value cannot be lower than the face value;

③ The Fund cannot have a net loss in the current period.

Of course, this may also depend on the fund company. Some funds have made an agreement on the distribution of fund income in advance in the prospectus, such as paying dividends when the distributable income reaches a certain standard.

In fact, there are two ways of fund dividend, one is cash dividend, the other is dividend investment, the former is cash payment, and the latter is fund share payment to investors.