When investors buy fund products, they often give priority to dividend-paying fund products and think that they are better than non-dividend-paying fund products. Is that really the case? Why do some foundations pay dividends and others don't? Let's have a look.

Why do some funds have dividends and some don't?

Not every fund will pay dividends, only when the fund meets certain conditions will it pay dividends. The specific requirements are as follows:

1 the fund can only pay dividends after making up the previous losses;

② After the fund pays dividends, the net value of each fund share cannot be lower than the face value, which is generally 1 yuan;

3 when the fund has a net loss in the current period, it cannot pay dividends.

Simply put, the fund can only pay dividends after making money.

Is there a fund with dividends?

The answer is not absolute. Investors can't simply conclude that dividend-paying funds are good funds and non-dividend-paying funds are bad funds. In fact, whether the fund pays dividends or not does not affect the real investment income of investors.

Fund dividends only distribute part of the income to investors in the form of cash, which is a part of the fund's net value. In other words, some of the dividends of the fund are the investors' own, which just means that they are now paid directly to investors in cash or other forms, and have not brought any additional income.