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Why do some foundations pay dividends?
Eligible, pay dividends every year. (1) closed-end fund income distribution. According to relevant laws and regulations, the income distribution of closed-end funds shall not be less than once a year, and the annual income distribution ratio of closed-end funds shall not be less than 90% of the realized income of funds. The income of closed-end funds in the current year must first make up for the losses of the previous year. If losses occur in that year, no income distribution will be made. Closed-end funds generally use cash dividends.

(2) Income distribution of open-end funds. The fund contract of an open-end fund shall stipulate the maximum number of fund income distribution and the minimum proportion of fund income distribution each year. In practice, many fund contracts stipulate at least once a year. The income of the open-end fund in the current year should also make up for the loss of the previous year. If there is a loss in that year, the income will not be distributed. Dividends can be divided into two ways: cash dividends and dividends reinvested in fund shares. Fund share holders of open-end funds can choose to convert the distributed cash proceeds into fund shares in advance according to the agreement on fund share subscription in the fund contract; If the fund share holder fails to make a choice in advance, the fund manager shall pay cash.