Fund dividend means that the fund distributes part of the income to fund investors in cash, and the fund dividend mainly adopts two ways: cash dividend and dividend reinvestment. So, how often does the fund pay dividends? Which method is the best for fund dividends? The following small series has prepared relevant content for everyone's reference.

What is the better way to choose fund dividends?

First of all, we all know that fund companies generally give investors two dividend options, one is cash dividend and the other is dividend reinvestment. Next, I will tell you the difference between the two methods. Cash dividend, that is, the dividend is paid directly to the bank account at the time of subscription, and no handling fee is charged; Dividend reinvestment means that the fund custodian directly accounts for the fund share corresponding to the cash dividend.

The essential difference between cash dividend and dividend reinvestment lies in: cash dividend is to get cash dividend directly without paying redemption fee; Dividend reinvestment is to reinvest the cash from dividends into the fund, which can not only avoid the subscription cost of reinvestment, but also further enjoy the continuous income brought by the growth of the fund. Personally, I think the fund is a long-term investment process, so if I can choose dividend reinvestment, I choose dividend reinvestment.

2. Which is better, daily fixed investment, weekly fixed investment or monthly fixed investment?

Fund fixed investment is a regular fixed investment fund, usually investors invest in designated funds at a fixed time every month. The purpose of doing this is to invest in a lazy way, regardless of the timing and timing of buying funds, and achieve the ultimate goal of making money through long-term investment.

There are daily fixed investment, weekly fixed investment and monthly fixed investment, and different investment methods are suitable for different people. Investors who make daily fixed investment are mainly short-term, and then deduct a fixed amount every day when the balance of the fund deduction account is sufficient.

Weekly fixed investment will generally choose Thursday or Friday, and then buy the fund after the market enters the end of the week, which is usually the way of medium-term investment. According to this rhythm, you can buy your own fund at different times of the week, or refine the risks as much as possible every week, so that investors can see the changes in the weekly principal and fund net value.

Fixed investment is a kind of long-term investment, which includes early, middle and end of the month, mainly based on investors' monthly funds. This trading method does not need to worry too much about the rise and fall of the fund. You can invest according to your own fixed investment plan. A few years later, when the principal is increased, a rising bull market is ushered in, and rich returns can often be obtained.

Personally, I don't usually make a fixed investment. Fixed investment is generally based on a small amount of fixed investment+hand compensation every day when I want to improve my position and get more income.

Which method is better for fund dividends?

1 cash dividend: the fund company will distribute part of the proceeds to you in cash. If you hold 10000 shares with a dividend of 0. 1 yuan each, then the dividend is1000x0.1=1000 yuan.

Dividend reinvestment: directly convert the income into fund shares for you (at this time, the fund shares you hold will increase).

How to choose

1 If it is judged that there is basically no increase or there is not much room for increase, cash dividends will be chosen, which will exempt the redemption fee, which is equivalent to reducing the investment of the fund.

If it is judged that the stock market has bottomed out and there is a large room for growth, you can choose to reinvest in dividends, which can avoid subscription fees and increase the fund share, which is equivalent to additional investment.

3. Fixed investment of the fund: choose dividends and reinvestment to avoid subscription fees and redemption fees arising from irrelevant entry and exit.

Second, the principle of fund dividend: the dividend money actually comes from a part of the fund's net value, and its actual total assets have not changed.

If the fund dividends meet the following conditions, there is the possibility of dividends, and dividends are not always distributed:

1, the fund can only be distributed after the current year's income makes up for the previous year's losses;

2. After the distribution of fund income, the unit net value cannot be lower than the face value;

3. If the fund investment has a net loss in the current period, it cannot be distributed.

Cash dividend means that the fund company distributes part of the fund income to fund investors in cash; Dividend reinvestment means that when the fund pays dividends, the fund holders convert the cash from dividends into fund shares according to the net value of the fund on that day and then distribute them to investors.

At the same time, some fund investors can choose the dividend method, which is better? Investors need to consider the market situation and the actual situation of the fund.

If the market is not good, or the fund is in a downward trend, investors can choose cash dividends, so that investors can get some cash, reduce their own losses and save redemption fees; If the market situation is good, or the fund is on the rise, investors can choose to reinvest with dividends, which can increase the share held by investors, improve the income and produce the effect of compound interest. At the same time, choosing dividends and reinvesting dividends can save fund subscription costs.

No matter which dividend method is adopted, after the dividend, the net value of the fund will be lowered accordingly according to the dividend distributed this time, so that the total assets of investors will remain unchanged.