Dividend reinvestment reinvests the cash dividends received into the fund or the stocks purchased, so as to increase the share of the original fund or stocks, commonly known as "accumulated interest", which can not only exempt the subscription fee for reinvestment, but also enjoy or increase the next dividend amount of the reinvested fund share, and increase the fund share with the number of dividends.

2. The dividend reinvestment fund is highly secure:

Fund managers encourage investors to invest more, so there is generally no charge for dividend reinvestment. If investors want to invest more after receiving cash dividends, they will be regarded as new subscriptions and need to pay subscription fees. Therefore, choosing dividend reinvestment is conducive to reducing the cost of investors, and dividend reinvestment can also be used in the case of buying individual stocks.

3. The capital turnover rate of dividend reinvestment is high:

Choosing dividend reinvestment is conducive to reducing the cost of investors. At the same time, long-term investment in open-end funds, if you choose dividend reinvestment, can enjoy the compound interest growth effect of fund investment appreciation.