Cash dividend method Cash dividend method is a dividend method in which fund companies distribute part of fund income to fund investors in cash. Dividend reinvestment method Dividend reinvestment method is a way for fund investors to reinvest the cash dividends obtained from dividends in the fund to obtain fund shares.
According to the provisions of the Measures for the Administration of the Operation of Securities Investment Funds, if the investor does not specify the dividend method, the default dividend method is cash dividend method. In other words, the default dividend method of fund management companies is cash dividend. However, before the equity registration date, fund investors can go to the fund sales organization of the fund you purchased to select and modify the required dividend distribution method. You can choose this way. The bull market had better choose dividend reinvestment, and the bear market had better choose cash dividend.