What is the significance of fund dividends?
From the holder's point of view, fund dividends can make the holder get tangible benefits in a certain way.
First of all, according to the relevant tax regulations, the income obtained by investors from fund distribution is not subject to personal income tax for the time being;
Secondly, for investors who choose to pay dividends in cash, because there is no redemption fee for dividends, the cost of cashing in income is reduced. For investors who choose to reinvest in dividends, the investment share will be increased and the subscription fee for reinvestment will be exempted.
Moreover, when the market is in turmoil, the realized dividends can be given to the holders to avoid the loss of net worth after the market crash.
For investors who have not bought, they dare not buy when the fund's net value is high, but after the fund's net value is reduced, it means that the lower the buying cost, the more profitable the market outlook will be. In addition, the fund dividend also shows that the fund has a strong ability to return, so it will stimulate the subscription of new funds. If dividends are not paid all the time, the size of the fund will become smaller and smaller after investors redeem it.
Many people think that a fund with more dividends is a good fund, but I want to remind you that a good fund should not be defined only by the amount of dividends, but should be comprehensively analyzed in many aspects.
Finally, remind investors that the fund is risky and investment needs to be cautious.