When the fund pays dividends, it is either cash dividend or dividend reinvestment. Cash dividends are money sharing, such as fund dividends 10 to 0.5, but many investors are participating in dividends for the first time, and I don't know what this means.

What do you mean by 10 and 0.5 fund dividends?

The fund dividend of 10 is 0.5, which means that investors can distribute cash to 500 yuan and 0.5 yuan for every 10 fund discovery fund. For example, investors can distribute cash for every 10000 fund. Fund dividends are distributed according to the share held by investors, not according to the principal of investment.

Fund cash dividend refers to a dividend method in which a fund company distributes a part of fund income to fund investors in cash. Fund dividend reinvestment means that when a fund pays a cash dividend, the fund holder directly purchases the fund with the cash obtained from the dividend and converts the dividend into the fund share held. For fund managers, there is no cash outflow from dividend reinvestment, so dividend reinvestment usually does not charge subscription fees.

Before the fund pays dividends, investors can choose the dividend method according to their own situation. If short-term investment suggests cash dividends, you can take out some money in advance. If it is a long-term investment, it is recommended to transfer dividends, which can save the handling fee for re-buying.