1. The bull market chooses dividend reinvestment, and the bear market chooses cash dividend. It depends.

2. Comparatively speaking, cash dividends will enable investors to gain cash benefits, satisfy the psychology of safety, and appropriately avoid risks when the market is expected to enter the downward channel; Choosing dividend reinvestment can make the original holder get lower subscription cost, increase the fund share and continue to share the fund income, and play a "compound interest" investment effect.

3. Both methods have their own advantages, but under the background of bull market, investors may get more investment income by choosing dividend reinvestment. The most realistic significance of dividend reinvestment is that it can avoid subscription fees and reduce subscription costs. Although the subscription rate of stock funds 1.5% seems to be low, considering the "compound interest" effect of long-term investment, this temporarily insignificant cost difference may completely lead to a large gap in long-term income, which should not be underestimated.

At present, investment funds can choose some leading old funds, including closed-end funds, in long-distance running. There is no need to focus only on dividends and split funds, and whether to choose dividends for reinvestment should also be carefully considered.

Extended data:

The fund dividend methods include "cash dividend" and "dividend reinvestment".

Cash dividend: non-monetary fund default method, dividend will be directly transferred to current account;

Dividend reinvestment: directly increase the fund share, which is the default method of general money funds;

Tips Fund dividends are generally cash dividends by default, and the dividend method can be modified, which is subject to the announcement of the fund company.