How many times does the fund pay dividends a year?
There is no fixed number of times, but the fund pays dividends at least once a year on the basis of meeting the dividend conditions, which is subject to the rules of the fund company. At present, most funds are required to distribute income at least once a year, up to six or eight times, and the distribution ratio of each income distribution is not less than 60% of the distributable income at that time.
Fund dividend conditions:
1 the fund can only pay dividends in the current year after the current year's income makes up for the previous year's losses.
② If there is a net loss in the current period of fund investment, no dividend will be paid.
After the fund pays dividends, the net value of the general fund unit cannot be lower than the face value.
Conditions for investors to participate in fund dividends:
If the equity registration date is T, the target of income distribution is all fund holders registered on T, that is, the fund shares registered on T enjoy the right to distribute fund dividends. Therefore, the fund shares subscribed and converted on T-day do not enjoy the dividend distribution right, while the fund shares redeemed and converted on T-day enjoy the dividend distribution right.
When the fund pays dividends, part of the fund's income is distributed to investors according to the shareholding ratio, and then the net ex-dividend value will decrease accordingly, which means that the investors' assets are unchanged before and after dividends.