Many investors will have some dividend income when investing in funds, so they think that the funds they invest in are profitable, but as long as the funds pay dividends, it means that the funds are profitable? Is the fund dividend earned or lost?

Is the fund dividend earned or lost?

Fund dividends are actually neutral and cannot represent the profit and loss of the fund. Because the fund dividend is actually a way of profit distribution, that is, Public Offering of Fund distributes the income to investors according to the frequency and proportion agreed in the contract, so it will not increase the extra income of investors.

Under normal circumstances, if the fund pays dividends, it also needs to meet three conditions:

1 The fund has no net loss in the current period;

② The income of the fund in the current year can make up for the losses in the previous year;

If the fund income is distributed, the net value of the fund share will not be lower than the face value.

Therefore, according to the conditions of fund dividends, the total assets held by the fund dividends are unchanged for investors, so the fund dividends are neither profitable nor loss for investors, but at least it can show that the dividend-paying funds are running well at present.

However, investors need to pay attention to the fact that not all funds will pay dividends, and the specific dividend method also needs investors to choose, so don't worry after seeing other people's funds pay dividends. Even if the funds you hold haven't paid dividends, the income that investors deserve is still in the investor's fund account, and this part of the income will be returned to investors when redeeming.