Dividends are something that makes investors happy. In the stock or other investment markets, generally dividends can provide good expected returns. So in the field of funds, is fund dividends really good?

Under what conditions will the fund pay dividends?

Next, let’s talk about fund dividends.

Under what conditions will the fund pay dividends?

1. The net value of the fund rises sharply: If the net value of the fund simply rises sharply, it is a good thing to pay dividends.

Fund dividends also have other purposes. First, it is to adjust positions. Second, there are major changes in the company, such as expanding the size of the fund company or changing the fund manager.

2. Adjust positions: When the fund manager believes that the net value has fallen, he will reduce the position and lower the net value to attract a type of investor to invest in the fund.

3. The company has major changes: When the company expands its scale or replaces a high-performance fund manager, the former uses dividends to attract investors to expand the company's scale, and the latter enhances investor confidence.

Is it good for funds to pay dividends?

To sum up, the difference between fund dividends and other investment targets is that fund dividends actually take out part of the market value of the fund that the holder originally held, and turn this part of the fund assets into cash to return to the holder, but it does not involve any wealth appreciation.

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Summary: In fact, fund dividends are mainly to enhance the confidence of holders, hoping to increase sales capabilities.

As for the fund dividend itself, you need to know more information and analyze its reasons. Generally, it will have little impact on expected returns.

That’s all the above points about the conditions under which funds will pay dividends and whether dividends are good or not. I hope it will be helpful to everyone.

Warm reminder, financial management is risky, so investment needs to be cautious.