Fund dividend means that the fund distributes part of its income to fund investors in cash. Where will this money go? At the same time, after some funds pay dividends, how does the money become less? Below we have prepared relevant contents for your reference.

Generally, fund dividends are reinvested in cash, and the money after dividends goes to different places. If investors choose to pay dividends in cash, that is, the fund company will distribute part of the fund income to fund investors in cash, and the dividend money will go to the bank card bound by investors. If investors choose to reinvest in dividends, that is, the fund holders convert the cash from dividends into fund shares according to the net value of the fund on that day and distribute them to investors.

After the fund pays dividends, the net value of the fund will be lowered accordingly, so that the total assets of investors will not change. However, the following special circumstances will occur, resulting in less money for investors after the fund pays dividends:

1, part of the principal is converted into cash dividends and deposited in the investor's bank card. For example, if an investor holds 5,000 shares of a fund and the net value of the fund is 2 yuan, a cash bonus will be distributed for every 10 share. Before dividends, the market value of the investor's capital account is 10000 yuan. After dividends are distributed, investors can get 250 yuan cash in their bank accounts.

2. After dividends, the net value of the fund shows a downward trend, which leads to the loss of investors and the decrease of market value.

It should be noted that investors who still hold fund shares at the close of the dividend registration date stipulated by the fund company can enjoy dividends. On the other hand, if you don't hold the fund at the close of the fund registration date, or buy the fund after the close of the registration date, you won't enjoy dividends.