Unlike stocks, funds earn not how much they rise, but management fees, such as subscription fees and redemption fees.
Dividend reinvestment is to subtract the price of dividend from the net value of the fund, and then calculate how much share you want according to your current share and add it to your current share.
For example, your current share is 65,438+00,000 shares, and the net fund value before dividends is 65,438+0.73 yuan. The fund company is prepared to pay dividends to the fund: for every 10 dividend of 7.3 yuan, the net value of the fund after dividends is 1.73-0.73 = 1.00 yuan.
Your share of dividends reinvested is: 10000 shares *0.73 yuan/net value after dividends 1.00 yuan =7300 shares.
Meanwhile, your current share is 10000 +7300 = 17300.
I wonder if you can read it?