The more dividends the fund has, the better? Dividends are not as much as possible. Investors should choose a dividend distribution method that suits their own needs. Fund dividend is not the biggest standard to measure fund performance. The biggest criterion to measure the fund's performance is the growth of the fund's net value, and dividends are just the cash for the growth of the fund's net value. In some specific periods, the fund dividend is not as much as possible.

First, the more dividends the fund pays, the better?

For open-end funds, if investors want to realize the expected annualized expected return, they can also redeem part of the fund shares to achieve the effect of cash dividends; Therefore, whether the fund pays dividends and the number of dividends will not have a significant impact on investors' expected annualized expected returns. For closed-end funds, because the unit price of the fund is often different from the net value of the fund, it is sometimes not feasible to realize the expected annualized expected return of the fund by selling the fund share. In this case, the fund dividend has become the only reliable way to realize the expected annualized expected return of the fund. Investors should pay more attention to dividends when choosing closed-end funds.

1, the bonus is not the more the better, nor is it the most important criterion to measure the quality of a foundation. Measuring the quality of a foundation mainly depends on the growth of net worth. Funds are suitable for long-term investment. When choosing funds, be careful not to look at short-term dividends and ignore long-term investment value.

2, the fund dividends need to meet certain conditions:

First, the fund can only be distributed after the expected annualized income of the current year makes up for the loss of the previous year;

Second, after the expected annualized expected income distribution of the fund, the unit net value cannot be lower than the face value;

Third, if the fund investment has a net loss in the current period, it cannot be distributed. Some funds also stipulate in advance in the prospectus the distribution method of the expected annualized expected return of the fund, such as the minimum and maximum distribution times in a year, or pay dividends when the expected annualized expected return that can be distributed reaches a certain standard.

3. It is not that the higher the net worth, the greater the dividend ratio.

Two, the fund dividend is not the more the better:

In a specific period, it is not that the more dividends the fund pays, the better. This is because the source of fund dividends is the expected annualized expected income obtained by the fund during its operation, including interest, dividends, bid-ask spread of securities and so on. If the securities invested by the fund are not sold, no matter what the market price of the securities is, they can only be recorded as floating gains and losses. If the fund wants to achieve a high dividend, it is bound to sell some securities, so as to improve the expected annualized expected return and dividend smoothly.

In the short-selling market environment, a large proportion of fund dividends is an ideal operation mode to avoid market risks and keep the annualized expected return of floating expectations safe.

However, in a bull market, the fund may have to sell stocks that it thinks may continue to rise to ensure that it has enough funds to pay dividends. After the dividend, if the fund re-opens a position, it may have to pay a higher cost of opening a position. In the long run, this will have a negative impact on the performance of investors and funds.

Third, the misunderstanding of fund dividends:

1, we can't just look at short-term dividends and ignore long-term investments.

2. It is not that the higher the net worth, the greater the dividend ratio.

3. The Fund pays dividends unconditionally.

4. Short-term dividends do not necessarily represent long-term good funds.

5. Cash dividend is not necessarily better than dividend reinvestment.