Fund dividend is not the biggest standard to measure fund performance. The biggest criterion to measure the fund's performance is the growth of the fund's net value, and dividends are just the cash for the growth of the fund's net value.
For open-end funds, if investors want to realize income, they can also redeem part of the fund shares to achieve the effect of cash dividends; Therefore, whether the fund pays dividends and the number of dividends will not have a significant impact on investors' investment income.
For closed-end funds, it is sometimes not feasible to realize fund income by selling fund shares because the unit price of the fund is often different from the net value of the fund.
In this case, fund dividends become the only reliable way to realize fund income. Investors should pay more attention to dividends when choosing closed-end funds.
Extended data:
There are two main ways of fund dividend: one is cash dividend, and the other is dividend reinvestment.
According to the Measures for the Administration of the Operation of Securities Investment Funds, if the investor does not specify the dividend distribution method, the default income distribution method is cash dividend. Investors can go to the institution where you bought the fund to modify the dividend distribution method before date of record.
For example, if you hold 6,543,800+shares of a fund, each fund will receive a dividend of 0.05 yuan: if you choose the cash dividend method, then the basic people will receive a cash dividend of 0.5 million yuan; Assuming that dividends are reinvested, the net value of fund shares on the benchmark date of dividends is 1.25 yuan.
Then, the citizen can be divided into 5,000 yuan1.25 yuan/share = 4,000 fund shares, and the fund share becomes104,000. As the total assets of the fund decreased due to dividends, the net value of the fund decreased after dividends.
The default dividend method of open-end funds is cash dividend, but the basic people can change it independently according to the individual's specific situation and the changes in the fund market.
When changing the dividend distribution method, the consignment customer needs to bring his ID card and securities card to the consignment agency that originally purchased the fund for modification; Direct selling customers can modify themselves through the fund company's website or telephone trading system.
According to the Interim Measures for the Administration of Securities Investment Funds:
Twenty-first in any of the following circumstances, the fund custodian must be approved by the China Securities Regulatory Commission and the People's Bank of China to resign:
(1) The fund custodian is dissolved, revoked or bankrupt according to law, or its assets are taken over by the receiver;
(2) The fund manager has every reason to believe that it is in the interest of the fund holder to replace the fund custodian;
(3) The fund holder representing more than 50% of the fund shares requests the fund custodian to resign;
(4) The People's Bank of China has every reason to believe that the fund custodian can't continue to perform the fund custody duties.
Article 22 The new fund custodian shall be approved by the China Securities Regulatory Commission and the People's Bank of China; Upon approval, the original fund custodian may retire. If there is no new fund custodian to undertake the fund managed by the original fund custodian, it shall be terminated.
Article 23 An application for the establishment of a fund management company must be approved by the China Securities Regulatory Commission.
Article 24 To establish a fund management company, the following conditions shall be met:
(a) the main promoters are securities companies and trust and investment companies established in accordance with relevant state regulations;
(2) The main promoters are in good operating condition and have made profits continuously in the last three years;
(3) The paid-in capital of each promoter is not less than 300 million yuan;
(4) The minimum paid-in capital of the fund management company to be established is RMB 6,543,800,000;
(5) Having a clear and feasible fund management plan;
(6) Having a qualified fund manager;
(seven) other conditions stipulated by the China Securities Regulatory Commission.
To apply for the establishment of a fund management company, relevant documents shall be submitted in accordance with the requirements of the China Securities Regulatory Commission.
Baidu Encyclopedia-Fund Dividends