Fund dividends are not extra income, but money distributed by investors themselves, that is, the income from fund dividends is originally a part of fund assets, not from fund companies. After dividends, the net value of the fund will be adjusted accordingly, and the total assets of investors will not change.
For example, when the net value of the fund is 1.5 yuan, Xiao Li bought 1, 000 shares of a stock fund. After subscription, the net value of the fund showed a downward trend, falling to 1.3 yuan. At the same time, cash dividends will be paid, and cash 0.3 yuan will be distributed for every 65,438+00 shares. After the distribution, 30 yuan was added to Xiao Li's account, but the net fund value was reduced to 1.20 accordingly.
Fund dividends are divided into two ways: cash dividends and dividend reinvestment, in which cash dividends refer to fund companies distributing part of 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.
So, how do investors choose the dividend method? 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.