Why is there less money after the fund pays dividends?
The dividend of the fund is part of the fund's income. After dividends, the net value of the fund will fall, and investors will find that their principal is less. The cash generated by the cash dividend in the fund dividend will return to the investor's bank card, which is equivalent to reducing the investment principal.
For example, Xiao Li has a fund with 1 1,000 copies, and the current net value is 1 yuan, so the value of holding the fund is 1 1,000 yuan. The fund company announced dividends, and each dividend went to 0.2 yuan. After dividends, the net value of the fund unit decreased to 0.8 yuan (1-0.2). At present, the value of funds held by Xiao Li is 800 yuan (0.8* 1000) and 200 yuan (0.2* 1000), which add up to the original 1000, but only 800 yuan holds the principal.
Therefore, fund dividends are not extra money for investors, and total assets have not changed. Therefore, don't think that a fund with dividends is a good fund. There are many criteria for judging a good fund, and the number of fund dividends is not the only indicator. Investors should analyze in many ways.
Finally, remind investors that the fund is risky and investment needs to be cautious.