Fund dividend \x0d\ 1 What is fund dividend? Fund dividend refers to a return on investment in which a fund company distributes part of the fund income to investors, which was originally a part of the net value of the fund unit. Generally speaking, fund dividends should meet the following principles: 1. The current income of the fund can only be distributed after making up the previous losses; 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. 2. After the distribution of fund income, the net value of each fund share cannot be lower than the face value; 3. If the fund loses money in the current period, no income distribution will be made. Therefore, investors actually get the assets on their books, which is why the net value of fund shares fell on the day of dividends (ex-dividend date). After meeting the above conditions, the dividend depends on the investment strategy of the fund manager. If the fund manager thinks that the stocks held by the fund have room for long-term appreciation, he may not pay dividends. See the fund contract or prospectus for specific dividend terms. \x0d\2 Dividend payment method of the fund. At present, open-end funds generally provide investors with two alternative dividend modes: cash dividend and dividend reinvestment. \x0d\ cash dividend method: it is a dividend method that the fund company distributes part of the fund income to fund investors in cash. The fund company directly deposits the dividend amount into your bank card. \x0d\ dividend reinvestment method: it is a way for fund investors to reinvest the cash dividends from dividends in the fund to obtain fund shares. If you don't need cash for the time being and want to reinvest directly, you can choose dividend reinvestment. In this case, the dividend funds will be converted into corresponding fund share increase, and the reinvestment fee will be exempted. For customers who are optimistic about the market outlook and want to invest more, or customers who usually have no time to pay attention to investment and want to invest this money for a long time, it is wise to choose dividends and reinvest. For cautious and conservative investors who want to settle down, choosing cash dividends can guarantee the early investment income. \x0d\ If you need to change the original dividend distribution method, you can also go through the change procedures at the business outlets of fund management companies or consignment agencies that handle fund business. \x0d\ According to the Measures for the Administration of the Operation of Securities Investment Funds, if the investor does not specify the dividend method, the default dividend method is cash dividend method. \ x0d \ 2.36 \ x0d \ When distributing dividends, fund managers need to set a date when registered holders can participate in dividends, that is, the "equity registration date". \x0d "ex-dividend date" refers to the deduction of the total dividends distributed from the fund assets on a predetermined day. On the ex-dividend date, the net value of fund shares shall be ex-dividend according to the dividend ratio. \x0d\ Generally speaking, the fund share holders registered on the equity registration date enjoy the current dividend rights of the Fund. If the date of record falls on the same day as the ex-dividend date, the dividend amount shall be deducted from the share net value of the net value of that day. \x0d\ Fund dividends are not value-added out of thin air. Before dividends, the net value of fund shares subscribed by investors is higher, but they can enjoy dividends. After dividends, the net value of fund shares is lower. As a medium and long-term investment and financial management method, as long as you are optimistic about the future growth trend of a fund, you can consider buying in time. Buying before or after dividends has no effect on income. \x0d\ Only healthy dividends are worthy of attention. The so-called healthy dividend is the rational choice of fund managers according to market judgment: when the market rises, you don't have to pay dividends too quickly, you can wait for the bull stocks in your hands to get more income; When the market starts to pull back, it will distribute the income realized in its hands, so as not to devour the floating profits of investors in the future. The state of healthy dividends is ideal, but if fund companies can insist on doing so from the interests of investors, there is no reason not to attract long-term followers. \x0d\ When choosing a fund, the more dividends, the better. If the fund invests in an industry for a period of time and feels that the potential of this industry has been fully released and needs to adjust its asset allocation, then dividends are normal. When deciding whether to choose a high dividend fund, you should also know the purpose of your investment fund Some investors "raise funds" for the purpose of liking this "fund" to "lay eggs" frequently; Others hope that the bigger the "base", the better. To be sure, whether to pay dividends should not affect whether investors buy funds or not. Because the fund dividend actually divides the fund holder's own money, which is equivalent to getting the right pocket from the investor's left pocket. If you want to continue to invest in this fund, you need another procedure to get the money back from your right pocket to your left pocket, and at the same time, you have to pay another subscription or redemption fee. It is completely wrong to think that dividends are cheap.