The expected return of the fund generally includes two parts: the difference of the net value of the fund and the dividend of the fund. Dividends are usually reinvested and paid in cash. After the cash dividend, the total assets of investors will not change. At this time, investors will have a question: is the cash dividend of the fund deducted from the principal?

Fund cash dividend refers to a dividend method in which a fund company distributes a part of the expected income of the fund to fund investors in cash, that is, by reducing the unit net value, the difference is converted into cash and distributed to investors, which is not taken out by the fund company, but the investors' own funds, that is, deducted from the principal.

For example, if an investor invests in a fund, the fund will pay dividends of 65,438+000,000, and the fund will pay dividends in cash, and every 65,438+000 funds will pay dividends to 20 yuan. Before each dividend, the net value of each fund is 1.5 yuan, and the market value of funds held by investors is = 1.5 10000 = 65438. Investors can get cash = 65,438+000,000/65,438+00020 = 20,000 yuan, but the net value of the fund unit is lowered to 65,438+0.3 yuan, and the holding market value is 65,438+030,000 yuan, which is 20,000 yuan less than before dividends.

Since the cash dividend is deducted from the investor's principal, it means that this dividend is meaningless. Actually, it is not. To a certain extent, the fund can reduce the net value of the fund through cash dividends, that is, it can reduce the cost of investors' positions and reduce risks. At the same time, the decrease of fund net value can attract more investors to buy, and make fund trading more active to some extent.

Investment is risky, so be cautious when entering the market.