Fund dividend is a right that many investors can choose. When choosing fund dividends, many users don't know which way to choose. In general dividend business, cash dividend and dividend reinvestment are optional. The essence of fund dividends is to distribute the income originally belonging to users to investors in the form of dividends. So, does the fund choose cash or reinvest?

Do you choose cash or reinvestment for fund dividends?

If users have a small amount of dividend funds, they can choose to reinvest in dividends. This operation is to re-purchase the cash from dividends into the fund, and no subscription fee is charged, so the way of dividend reinvestment will increase the share of the fund. In the case of less dividends, it is better to choose cash to reinvest dividends without reducing the investment amount.

If investors can get more dividends, they can choose cash dividends or reinvest dividends. In the case of short-term capital demand, cash dividends can be considered. If there is no short-term capital demand, you can reinvest the dividends of the funds that benefit better. If the fund's income is poor, you can choose cash dividends and then invest in the fund or wealth management products you want.

There are many techniques for cash dividend or dividend reinvestment, and investors need to make judgments according to their actual situation. Simply put, cash dividends are received in cash, and dividend reinvestment will increase the fund share. Different choices have different subsequent effects.