Investors will get dividends when they buy funds and stocks. The total assets of investors will not change before and after dividends, and the cost of their positions will be adjusted according to the actual situation of dividends, but there will be some differences. The difference is as follows: fund dividend means that the fund manager distributes a part of the expected income to fund investors in cash, which is originally a part of the net value of fund shares. Dividend refers to a small part of the profits distributed to investors by listed companies, and investors get dividends.

Cash dividend and dividend reinvestment are two ways. In order to keep the share unchanged, closed-end funds and open-end funds can only use cash dividends and cannot reinvest dividends. Stock dividends will be distributed to shareholders in cash and stock dividends, and listed companies can choose one or both according to the situation. Fund dividend means that the fund distributes some profits to fund investors in cash or reinvestment, which is actually a part of the net value of the fund unit.

Simply put, dividend is the "fund income" part of dividend, that is to say, this part of income is originally a part of fund assets, rather than falling from the sky, so it is essentially agreed in the holder's own monetary fund contract, which is not divided into violations! The general fund contract stipulates the conditions of fund income distribution, and dividends will be paid as long as the conditions are met; On the other hand, if the dividend conditions stipulated in the fund contract are not met, no income distribution may be made. According to the judgment of the securities market and the adjustment of investment strategy, the fund company decides whether to pay dividends within the scope agreed in the contract, with the purpose of protecting the investment income realized by investors and providing investors with the choice of cash income or continuing investment. Fund dividends are different from stock dividends.

Stock dividend is the income of the holder, and the surplus reserve fund and the profit payable or undistributed from the company's operation are distributed or sent to the stock in cash. Fund dividends will not increase the holder's assets, but will lead to a decrease in the net value of fund shares, but the total assets of the holder remain unchanged, and the decrease in the net value of fund shares is dividends, that is, fund dividends will not increase the actual income of investors.