Is it the fund dividend income?
No, fund dividend is not fund income, and fund income includes fund dividend and fund net value difference. Fund dividends will not bring real benefits to investors, and the net value of funds generally falls after dividends.
Fund dividends are mainly divided into cash dividends and dividend reinvestment. Cash dividend only distributes the income to investors in the form of cash, which is originally a part of the net value of the fund unit. Dividend reinvestment refers to the re-use of fund dividend income to purchase funds and convert it into fund shares in order to increase investors' share of fund holdings.
The Fund only needs to meet the following specific conditions for dividend distribution:
1, the fund can only be distributed after the current year's income makes up for the previous year's loss.
2. After the distribution of fund income, the unit net value cannot be lower than the face value.
3. If the fund investment has a net loss in the current period, it cannot be distributed, and the dividend is subject to the announcement of the fund company.
What is the difference between fund cash dividend and fund income?
Fund income is calculated according to the net value. If the net value of the fund rises, investors will have the opportunity to gain income. Fund dividends are implemented because the fund's net value is high, in order to adjust the balance and make the fund's net value fall. The difference between the two is that:
1, essential difference
Fund dividend refers to the distribution of a part of the fund's net value to investors, while fund income refers to the profit brought by the increase of the fund's net value. Moreover, dividends will not bring actual losses or profits to investors, while fund income will make investors generate actual profits or losses.
2. Changes in assets
Fund dividends will not change the total assets of investors, but fund income will increase the total assets of the fund.
3. Frequency of occurrence
The number of fund dividends is not fixed, maybe once a year, or even no dividends, depending on the actual situation of the fund company. Fund income income will appear every trading day, because the statistics of fund net value changes will be carried out after the trading day closes.