Fund dividends will not change the risk-return characteristics of the fund, nor will it reduce the investment risk or improve the investment income of the fund. After the fund pays dividends, it changes the price of the fund, not the share. Generally speaking, fund dividend is to convert the net value of the fund into money and distribute it to investors, but there is no redemption fee for this part of the money.
The fund shares subscribed by date of record do not enjoy the dividend right, while the fund shares redeemed by date of record enjoy the dividend right. Investors can choose cash dividends or cash dividends to be automatically converted into fund shares according to the net value of ex-dividend units for reinvestment.
Investors who choose the dividend reinvestment method are exempt from subscription fees for the fund shares converted from their dividends. If investors do not choose, the default income distribution method of the Fund is cash dividend. Investors can choose for themselves.
If the fund investment has a net loss in the current period, it will not pay dividends. After the fund pays dividends, the net value of the fund share cannot be lower than the initial face value, otherwise it will not pay dividends. Each fund share enjoys equal distribution rights.
The above is what Bian Xiao shared with you about the impact of the decline in the net value of the fund after dividends. More information can focus on the construction industry and share more dry goods.