2. Dividend conversion: the dividend system of the fund with dividend conversion mode will be automatically converted into the new fund share of the fund. Investors will not receive direct dividends during the period of holding this fund, but their share of the fund will continue to grow.
According to relevant regulations, the fund pays dividends at least once a year. However, there are two conditions for fund dividends: after making up the previous losses, the current dividends can only be paid if there are profits available for distribution on the expected income distribution base date; After distribution, the net value of fund shares shall not be lower than the face value. It can be seen that the fund dividend must be carried out in the case of fund profit.
Cash dividend refers to the direct payment of dividends to investors' bank accounts in cash, which is real cash. Dividend reinvestment refers to reinvesting dividends into fund shares, which is similar to subscribing for new funds, but there is no subscription fee for this part of fund shares. The two dividend distribution methods have their own advantages, so you can choose according to your own needs.