If you are optimistic about the fund when it pays dividends, it is suggested to choose dividend reinvestment, because dividend reinvestment is to buy the fund directly with the funds obtained from dividends, and at the same time, it will convert dividends into fund shares and increase the fund shares held, but the total assets of the fund will remain unchanged and participants will gain new shares.

How long will the dividend be reinvested and the share will increase?

The reinvested dividend share will be paid to the investor's account on the next trading day of the dividend payment date, and the holding share will be increased accordingly. Confirmed share of dividend reinvestment = fund share entitled to dividend × dividend amount per unit fund share/net value of fund share after ex-dividend on the registration date of dividend right.

When the fund implements dividends, investors can choose cash dividends or automatically convert cash dividends into fund shares for reinvestment; If investors do not choose, the default income distribution method of the Fund is cash dividend.

Cash dividend is direct cash dividend, free of personal income tax and safe in the bag. Suitable for customers who are not optimistic about the market outlook or have short-term cash use needs. Dividend reinvestment is to convert cash dividends into fund shares and continue to hold funds. Suitable for value investors who have no cash demand in the short term and are optimistic about the market outlook during the adjustment period.

No matter whether you choose cash dividend or dividend reinvestment, the total assets of the fund held by the participants have not changed after the dividend, so when buying the fund, don't care too much about whether the fund pays dividends or is about to pay dividends. But one thing is certain: funds with dividends are profitable.