Is the fund dividend good or bad?
In fact, dividends themselves have no effect on investors. The so-called fund dividend is essentially putting money from the left pocket to the right pocket. This part of the income from fund dividends is originally a part of the net value of the fund unit, which comes from the fund itself, so the net value of the fund will be lowered accordingly after dividends, and the assets of investors will remain unchanged after the two are offset.
However, fund dividends will have a certain impact on the profit and loss of the market outlook. After the dividend, because the principal is reduced, if the fund rises later, the dividend will lead to the loss of appreciation opportunities for the fund; If the fund falls sharply after dividends, part of the principal will avoid the decline of the market. The more dividends, the more fully it will be avoided.