Hello, the reason why the cost of the fund is reduced after dividends is because the net value of the fund is reduced after dividends, and dividends will be eliminated. When the dividend plan is relatively high, the cost price will be reduced. Fund dividends are actually part of the income divided into the net value of the fund. After the net value of the fund declines, the net value of the fund shares held by investors will also decline, so the cost of holding positions will naturally decrease.

Fund dividends can play a role in reducing the net value of funds with higher net worth. If the net value of the fund is low, some investors who are afraid of heights can buy the fund. The lower the net capital value, the lower the return rate. If cash dividends are selected for fund dividends, the funds obtained from dividends will generally be returned to Yu 'ebao. If the dividend is reinvested, the amount after the dividend will be converted into the same shares and included in the investor's shareholding.