Is the fund dividend the same as the stock dividend?
Fund dividends are different from stock dividends, and the ways and sources of dividends are still different.
1 Dividend method: cash dividend and dividend reinvestment can only be selected for fund dividend, and some fund dividend methods are default and cannot be adjusted. For example, the default dividend method of money funds is dividend reinvestment, and the dividend method of closed-end funds is cash dividend. There are two ways of stock dividend: cash dividend and stock dividend. Listed companies can choose one way to pay dividends according to the situation, or they can use both ways at the same time.
2 Source of dividend: Fund dividend is to distribute part of fund income to fund investors, and this part of income itself is part of the net value of fund units; Stock dividend is to distribute part of the profits of listed companies to shareholders, and shareholders can get dividends.
3 Pay taxes: No personal income tax is required for fund dividends. If the fund dividend is reinvested in the dividend, there is no need to pay the corresponding handling fee. However, stock dividends need to be taxed according to the holding time of investors, and personal income tax can only be exempted if they are held for more than one year. If it is held for less than one month, the personal income tax rate is 20%; Personal income tax 10% if the holding time is between one month and one year.
As for dividends, if part of the investor's fund dividends come from the dividends of the stocks invested by the fund, then this part of dividends needs to pay personal income tax.