Two ways of fund dividend: cash dividend; Dividend reinvestment Cash dividend means that the fund share remains unchanged, but the net value of the fund will decrease. Dividend reinvestment refers to the conversion of dividend currency into corresponding fund shares. With the increase of fund share, the net value of the fund will also decrease.
Case: holding 1000 A fund, 1 yuan/share, dividend announcement: cash dividend 0. 1 yuan/share. After dividends, your account will become 900 yuan A Fund, with cash 100 yuan, A Fund share 1000 shares, and the net fund value will be 0.9, that is, the price will become 0.9 yuan/share. Hold 1000 A fund, 1 yuan/share, dividend announcement: dividend 0. 1 yuan/share, dividend reinvested. After paying dividends, your account becomes a fund in 900 yuan, with 100 yuan in cash, and the net value of the fund unit becomes 0.9; At the same time, the manager bought all the cash of 65,438+000 yuan into a fund (65,438+065,438+0 copies). At this time, your account equity is still 1 1,000 yuan, but your position will be changed to11a fund.
The default dividend payment method for domestic Public Offering of Fund products is cash dividend, but you will receive the notice from the fund manager before dividend payment, so you can choose the way you want. Optimistic about the market outlook, it is more favorable to choose dividend reinvestment. The more shares you hold, the greater the gains from the rise; Because there is no cash outflow from dividend reinvestment, there is no need to charge subscription fee, which saves a transaction cost. Look short on the market outlook and choose cash dividends. Avoid the risk of market decline, take profits and avoid redemption fees, killing two birds with one stone.
Fund dividends are the money in the left hand and the money in the right hand. No matter how much dividends are paid, it will not affect the total income of the fund, because dividends are realized income and are kept in the fund in the form of cash. Whether dividends are paid or not depends on the fund manager. Being able to realize fund dividends shows that this fund has a good performance in the past, but it is not the basis for judging the future trend of the fund, and must be considered comprehensively before investing in the fund. Long-term investment, it is best to choose dividend reinvestment, which not only saves transaction costs, but also enjoys the "compound interest" of investment. Through the above comparative analysis, whether it is found that the fund dividend is actually a neutral event and does not bring additional income, whether it is better to take money and leave or reinvest in dividends depends entirely on investors' views on the market outlook.