The distribution method is based on the amount invested by investors!
There are two ways of fund dividend: cash dividend and dividend reinvestment. According to the Measures for the Operation and Management of Securities Investment Funds, if investors have not specified the dividend distribution method, the default income distribution method is cash dividend. You can also modify the dividend distribution method at the institution that purchased the fund before the equity registration date. Investors choose to pay dividends in cash, and the dividends will be transferred from the fund custody account to the bank deposit account designated by the investors on the implementation date. Dividend reinvestment is provided by the fund management company to investors, and the dividends obtained are directly reinvested in the services of the fund, which is equivalent to the distribution of income by listed companies in the form of stock dividends. If investors do not need cash for the time being and want to reinvest directly, they can choose the dividend reinvestment method. In this case, the dividend funds will be converted into corresponding fund shares and credited to your account, and the reinvestment fee is generally free.
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