After buying a fund, if you encounter a fund dividend, you can participate in the dividend no matter how many shares you hold. Fund dividends can be divided into cash dividends and dividend reinvestment. The general fund dividend method will be explained in the dividend announcement. Of course, investors can also choose their own dividend distribution methods. So where did the fund's dividend money go? Let's get to know each other.

Where did the money from the fund dividends go?

Investors' accounts may become fund shares. After the cash dividend, there will be a sum of money in the investor's account. If the dividend is reinvested, all the money will be bought into fund shares. After the fund pays dividends, it will be ex-dividend and its net value will drop. This is because when the fund pays dividends, it is actually taken out from the fund income, and part of the fund income will be distributed to the fund investors in the form of dividends, so investors will find that their total assets have not changed after dividends.

When the fund pays dividends, investors can choose their own dividend methods. And if you want to participate in dividends, you must hold the share of this fund before the equity registration date. If the equity registration date is T, the income distribution object is all fund holders registered on T, that is, the fund shares registered on T enjoy the right to distribute fund dividends. Therefore, the fund shares subscribed and converted on T-day do not enjoy the dividend distribution right, while the fund shares redeemed and converted on T-day enjoy the dividend distribution right.

It is worth mentioning that in the case of fund dividends, the total assets of investors have not changed, and the money for fund dividends actually comes from the net value of the fund. After dividends, the net value of the fund will fall.