What are the conditions for fund dividends?
Conditions for fund dividends: 1. The fund can only be distributed after the current year's income makes up for 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. Before paying dividends, investors can choose their own dividend method, which can be cash dividend or dividend reinvestment.
Remember, the dividend method should be set in advance, otherwise the system defaults to cash dividend. Judging from the positive significance of fund dividends, dividends are generally chosen for reinvestment. In addition to meeting the requirements of relevant laws and regulations, fund dividends should also be paid in accordance with the income distribution clauses in the prospectus.
Fund dividend means that the fund distributes part of the income to investors in cash, which is originally a part of the net value of the fund unit. Therefore, fund dividends are not the biggest criterion to measure fund performance, but the growth of fund net value, and dividends are only cash for the growth of fund net value.
What conditions do you need for fund dividends? I hope I can help you better understand the knowledge and regulations of fund dividends. It should be noted that fund dividends are not fixed, and some funds may not pay dividends for several years.