"Wow! My fund has paid dividends, and another sum of money has been recorded, which is very pleasant. "Did you have the same idea when you received the fund dividend? But what I want to tell you is not to be too happy, because the fund dividends are actually divided into your assets, and your total amount has not changed. If you don't understand what I said earlier, you might as well learn about "fund dividends" with me. 1 what is the fund dividend

many investors will feel very happy when they receive the fund dividend for the first time in the process of fund investment. It feels like an extra income out of thin air, but when they look at the fund amount carefully, they will find that "the wool is on the sheep" and they have indeed got a sum of money, but the fund's position amount has decreased.

by definition, fund dividend means that the fund distributes part of its income to fund investors in cash.

the definition of fund dividend may not be easy for a few novice investors to understand. We can change our thinking. In fact, fund dividend is to split the net value of the fund into two parts, and then forcibly redeem one part. The money we receive is also the income from redeeming this part of the fund.

Take a very simple example: the unit net value of a fund is 2., and Xiao Wang holds 1, shares of the fund, that is, Xiao Wang's position amount is 2, yuan. One day, the fund pays dividends, and each fund share can be divided into .5 yuan, so the cash that Xiao Wang can share is 5 yuan. However, because the total assets of the fund decrease after the dividend, the net value of the fund will also decrease. At this time, it will become 1.95, with the position amount of 19,5 yuan and the total assets of 2, yuan. 2 how often does the fund pay dividends

There is no rule about the frequency of fund dividends. It may not be paid once every two or three years, or it may be paid two or three times in a month. There is no clear regulation on the number of fund dividends in the Measures for the Administration of Securities Investment Funds, so in actual investment, it depends on the specific provisions in the purchased fund contract.

However, the fund does not want to pay dividends, and at least the following three conditions need to be met before it can pay dividends:

① The fund can not be distributed until the current year's income makes up the previous year's losses;

② After the distribution of fund income, the unit net value cannot be lower than the face value;

③ If the fund investment has a net loss in the current period, it cannot be distributed.

from the above three points, we can know that if the current fund is in a loss state or the profit margin is too low to cover the losses of previous years, then this fund cannot pay dividends. 3 forms of fund dividend

There are two forms of fund dividend, namely: cash dividend and dividend reinvestment.

Cash dividend refers to the dividend paid to investors in cash. The dividend paid to the fund owned by Xiao Wang mentioned earlier is actually cash dividend. If we don't make any changes when purchasing the fund, it is generally cash dividend by default.

dividend reinvestment means that the dividend money is reinvested in the fund in cash. Take the example of Xiao Wang as an example to explain, Xiao Wang's dividend is 5 yuan, and the net value of the fund after dividend is 1.95, so Wang Hongli's reinvested fund share is 5÷1.95=256.41, so Xiao Wang's total position share is 1,256.41, and the total position amount is still 2, yuan.

These two dividend methods have their own advantages and disadvantages. When choosing, we should mainly consider the expectation of the market outlook. If it is expected that there will be a better market outlook in the market outlook, it is suggested to choose the dividend reinvestment method, so that the funds can continue to earn profits. If you are uncertain about the changes in the market outlook or feel that the market will get worse, then choose cash dividends and put the money in the bag.

To sum up, fund dividend is actually a part of fund income distributed to investors in cash, and the frequency of dividend is uncertain, mainly depending on the relevant provisions in the fund contract.