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Why did the net value of Cathay Select Fund suddenly drop yesterday?

It should be dividends. Dividends are actually returning part of the fund's original net value to the investor's bank card in cash. Fund dividends are actually dividing your own money. So don’t rush to sell just because you heard about that fund branch. If dividends are distributed, the net worth will definitely fall. The fund already has so much money, and if part of it is distributed, a fall is inevitable.

For example: The current net value of the fund is 2 yuan. You have 1,000 copies at a time, with total assets of 2,000 yuan. There are two ways to distribute fund dividends:

1 Choose cash dividends: If the fund distributes one yuan each dividend, then there will be 1,000 in cash in your bank card, your fund assets will be 1,000 yuan, and the total assets will still be 2,000 yuan< /p>

2 Choose dividend reinvestment: Each fund still pays dividends of 1 yuan, then the fund company will automatically use the system to help you buy the fund based on the net value of 1 yuan after dividends. This part of the buying behavior is not Subject to subscription and redemption rates. Then you have 2,000 funds, and the total assets are still 2,000 yuan.