Fund dividend means that you distribute the profit of the fund to investors and put the money into the fund account. However, after dividends, the net value of the fund will also come down accordingly. Dividends are actually of little significance to the holders, and the fund makes money by the fluctuation of the net value of the fund.

Fund dividends will not affect the total amount held by the holder (fund+currency). It is just a means for fund companies to reduce the net value of funds. The purpose of reducing net worth is different, and the frequency of dividends is different, that's all.

There are different opinions about fund dividends on the Internet. From the purpose of dividend, the fund dividend has certain rationality. For example, in order to reduce the scale of funds, facilitate management and avoid risks, the so-called ship is difficult to turn around; There are also elements that create gimmicks, such as reducing net worth through dividends, lowering entry barriers and attracting people to buy.

Extended data:

Dividends are not as much as possible. Investors should choose a dividend distribution method that suits their own needs. Fund dividend is not the biggest standard to measure fund performance. The biggest criterion to measure the fund's performance is the growth of the fund's net value, and dividends are just the cash for the growth of the fund's net value.

For open-end funds, if investors want to realize income, they can also redeem part of the fund shares to achieve the effect of cash dividends; Therefore, whether the fund pays dividends and the number of dividends will not have a significant impact on investors' investment income.

Baidu Encyclopedia-Fund Dividends