According to relevant regulations, fund dividends need to meet the following three conditions:
First, the fund can only be distributed after the income of the current year makes up for the loss of the previous year;
Second, after the distribution of fund income, the unit net value cannot be lower than the face value;
Third, if the fund investment has a net loss in the current period, it cannot be distributed.
If the fund loses money in the current period, no income distribution will be made. Some funds also stipulate the distribution method of fund income in advance in the prospectus, such as the minimum and maximum distribution times in a year, or dividends when the distributable income reaches a certain standard.
Extended data:
Mode of fund dividend
There are two main ways of fund dividend: one is cash dividend, and the other is dividend reinvestment.
According to the Measures for the Administration of the Operation of Securities Investment Funds, if the investor does not specify the dividend distribution method, the default income distribution method is cash dividend. Investors can go to the institution where you bought the fund to modify the dividend distribution method before date of record.
For example, if you hold 6,543,800+shares of a fund, each fund share will receive a dividend of 0.05 yuan: if you choose the cash dividend method, then the basic people will receive a cash dividend of 0.5 million yuan; Assuming that dividends are reinvested, the net value of fund shares on the benchmark date of dividends is 1.25 yuan.
Then, the citizen can be divided into 5,000 yuan1.25 yuan/share = 4,000 fund shares, and the fund share becomes104,000. As the total assets of the fund decreased due to dividends, the net value of the fund decreased after dividends.