Is fund dividend equal to making money?
First of all, the essence of fund dividend is to send a part of the expected income of the fund to the fund holders. This part of the dividend is originally a part of the net value of the fund unit, so after the fund dividend is completed, the net value of the fund unit will be deducted from the dividend. To put it bluntly, the bonus is to move your money from your left pocket to your right pocket, which has no effect on your expected income.
For example, Xiaoming bought a fund of 10000, the unit net value is 1.5 yuan, and Xiaoming's total assets are 15000 yuan. Assuming that each fund pays dividends in 0.5 yuan, the net value of the fund after dividends is 1.5-0.5 = 1, and the present value of the fund is = 1 * 60.
Before dividends, Xiaoming held the fund value of 1.5 million yuan. After dividends, Xiaoming holds a fund worth 65,438+00,000 yuan, plus 5,000 yuan in cash, and his total assets remain unchanged.
Although fund dividends do not make money, they still have a certain effect. Its significance lies in realizing the expected income growth of the fund, and there is no need to deduct the fund redemption fee like the redemption of the fund.
It should be noted that not all funds will pay dividends, and whether the funds will pay dividends depends on the contract. First, the fund can only pay dividends if it makes money this year, and second, the expected income from fund transfer can only be distributed if it makes up for the losses of the previous year (if any).
Well, the analysis of whether the fund dividends make money is here, and I hope it will help everyone. Warm reminder, the fund is risky and needs to be cautious in investment.
Introduction reading:
What is the expected return of long-term investment funds? The ten-year average annualized rate of equity funds is 7.2%.