Many fund investors will encounter fund dividends. So, is the fund dividend good for us novices? Bian Xiao has sorted out the dividends of the funds held here. Does it affect me? For your reference, I hope everyone will gain something in the reading process!

What is fund dividend?

Fund dividend is a way of investment return by distributing part of fund income to investors, which is originally a part of the net value of fund shares.

Simply put, it is to return some of the money earned by the fund to investors.

Before the dividend, the fund company will announce three important dates:

Date of record: Only registered holders can participate in dividends on this day (PS: buying on the same day cannot participate in dividends).

Ex-dividend date: the date when dividends are deducted from fund assets. The net value of fund shares will deduct the dividend amount of each fund, so investors usually see an abnormal decline in the net value on this day, and there will be a temporary "loss" in the account.

Dividend payment date: the date when dividends are distributed to investors. On this day, the foundation withdraws dividend funds from the fund custody account. Please wait patiently for the dividend to arrive ~

Is dividend a "profit" or a "loss"?

Fund dividends are equivalent to returning your money to you in different ways, which will not generate additional profits and losses, but will only be cashed in the growth of the fund's net value. After paying dividends, the unit net value of the fund will decline, and investors will either have more "cash" or more "shares", and the total assets will remain unchanged.

Therefore, it is normal for the net value of dividends to decline (your total assets remain unchanged, you take some money, and the rest is less). In addition, it is also wrong to buy before dividends in an attempt to "earn" dividends.

What are the benefits of dividends to investors?

Generally speaking, there are two ways of fund dividend: cash dividend (more "cash") and dividend reinvestment (more "shares"):

Cash dividend refers to the conversion of some income into cash income, which is safe in time and free of redemption fee;

Dividend reinvestment is to buy the fund again directly with dividend money, and there is no subscription fee.

Therefore, dividends give investors more choices-they can choose better investment channels according to market conditions, and they can also save some handling fees for the entry and exit of funds.

How to choose the dividend method? Investors who want to settle down in time and have financial needs in the near future can choose cash dividends; Investors who are optimistic about the future market and don't need money in the short term can choose to reinvest in dividends. In addition, if a fixed investment plan is set, then the dividend reinvestment can better play the compound interest effect.

What are the conditions for fund dividends?

Not all funds can get dividends. Under normal circumstances, being able to pay dividends means that the fund has obtained certain income. The fund contract will stipulate the fund income distribution plan, taking the Bank of China Research Selection as an example;

On the premise of meeting the dividend conditions of relevant funds, the Fund evaluates the income distribution on a quarterly basis, with the last trading day at the end of each quarter as the base date of income distribution. If the distributable profit of the fund share exceeds 0.05 yuan at the end of last quarter, the income will be distributed in the first month of this quarter, and the proportion of income distribution will not be less than 60% of the distributable profit on the base date of income distribution.

In the past two years, the returns of funds purchased by many investors are generally unsatisfactory. What caused the large losses of most funds? Mars, an analyst at Shanghai Securities Fund Evaluation Center, pointed out that, first of all, the essence of fund products is the combination of securities, and the performance of fund income is closely related to the performance of the underlying market. In the continuous decline of the stock market, it is difficult for equity funds and hybrid funds, which mainly invest in stocks, to achieve positive returns. In the case of rising stock market, most partial stock funds can often achieve positive returns. Therefore, it is impossible for funds to create myths and create high positive returns in the continuous decline of the market in recent years.

From the long-term performance, in most cases, the overall performance of funds is better than that of individual investors, especially in bull markets and volatile markets. For example, in 2006 and 2007, more than 80% of equity funds achieved a return of more than 100%, while the proportion of individual investors was less than 20 12 years. Nearly 50% of equity funds have achieved a return of 5% to 30%. According to the survey, more than 50% of individual investors have lost between 5% and 50%. Therefore, the fund is still a good investment tool for individual investors to participate in the capital market.

All kinds of problems, whether China's stock market construction, economic development or asset management industry, can't be eliminated in a short time, and all need the rationality of the market as a whole to promote it. However, as investors themselves, we must measure our risk tolerance clearly and not blindly listen to the propaganda of sales staff. If your risk tolerance is weak, or the funds you want to use in the short term, you can't invest too much in a single stock fund to avoid being greatly affected by the risk of stock market fluctuations. Therefore, for individual investors, it is more meaningful to have a long-term investment mentality, choose appropriate fund products according to their own risk tolerance and renewal, avoid excessive pursuit of popular funds with outstanding short-term returns, pay more attention to funds with relatively stable long-term performance, and spread risks through fixed investment and portfolio allocation to obtain long-term stable returns.

Tip:

First, we should pay attention to arranging the proportion of fund varieties according to our own risk tolerance and investment purpose. Choose the fund that suits you best, and set an investment ceiling when buying partial stock funds.

Second, be careful not to buy the wrong "fund". The popularity of funds has led to some fake and shoddy products "fishing in troubled waters", so we should pay attention to identification.

Third, pay attention to the post-maintenance of your account. Although the fund is worry-free, it should not be left unattended. Always pay attention to the new announcements on the fund website, so as to have a more comprehensive and timely understanding of the funds you hold.

Fourth, pay attention to buying funds, and don't care too much about the net value of funds. In fact, the fund's income is only related to the net growth rate. As long as the fund's net growth rate stays ahead, the income will naturally be high.

Fifth, we should be careful not to "love the new and hate the old" or blindly pursue new funds. Although the new fund has inherent advantages such as preferential prices, the old fund has long-term operating experience and reasonable positions, which is more worthy of attention and investment.

Sixth, we should be careful not to buy dividend funds unilaterally. Fund dividend is the return of investors' previous income, so it is more reasonable to change the dividend method to "dividend reinvestment" as far as possible.

Seventh, we should pay attention not to talk about heroes in the short term. It is obviously unscientific to judge the pros and cons of the fund by short-term ups and downs, and it is necessary to make a comprehensive evaluation of the fund in many aspects and conduct a long-term investigation.

Eighth, we should pay attention to the flexible choice of investment strategies such as steady and worry-free fixed investment and affordable and simple dividend transfer.

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