What is the dividend situation of the fund?
It is the investor's money, and the dividend of the fund is the net value of the fund, so its essence is to put the money in the investor's left pocket into the right pocket. After dividends, the total value of the fund has not changed. The so-called fierce operation, a look at the assets did not increase.
Fund dividend is a part of the net value of the fund distributed to investors. After dividends, the net value will decrease, but it will not increase or decrease the total assets of investors. When the fund pays dividends, investors can choose whether to pay dividends in cash or reinvest the dividends. Cash dividend is direct dividend, and dividend reinvestment is to buy the share of the fund with dividend money, so dividend reinvestment will increase the share of investors, but the net value of the fund will fall after dividend, so it seems that investors have made nothing.
In fact, the fund dividends only share our own money. If you want to turn the "floating surplus" in your account into "falling into the bag for safety", you can consider "cash dividend". If you want to continue to invest, it is better to choose dividends and reinvest directly.
After reading the above introduction, I believe everyone has a better understanding of fund dividends. Although the dividend of the fund is divided into its own money, it also has its positive side, because after the dividend of the fund, it will inspire people and attract more investors to buy the fund, thus boosting its future net worth.