If investors plan to invest in a fund for a long time, they can choose to reinvest in dividends, and the reinvested part will not charge subscription fees, which can save some expenses. 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.
Dividend reinvestment is suitable for these situations: investors have plans to invest in funds for a long time, and dividends are temporarily useless to them. 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 the dividend reinvestment method, you can achieve the investment goal of "rolling profit".