Fund dividend refers to the distribution of a part of the fund's net value to investors. Fund dividends will not change the total assets of the fund, nor will it cause losses or profits to investors. The number of fund dividends is not necessarily, it may be once a year, or it may not be paid for several years. Fund income refers to the profit brought by the increase of fund net value, which will increase the total assets of the fund and also generate profits for investors. The fund will generate profits or losses every trading day.

1. Fund dividend means that the fund distributes part of the income to investors in cash, which is originally part of the net value of the fund unit. According to the Interim Measures for the Administration of Securities Investment Funds, fund management companies should distribute at least 90% of the net income of funds in cash once a year. The "Interim Measures" have expired, and how to allocate them now is subject to the provisions of the Fund Contract. Dividends are not as much as possible. Investors should choose a dividend distribution method that suits their own needs. Fund dividend is not the biggest standard to measure fund performance. The biggest criterion to measure the fund's performance is the growth of the fund's net value, and dividends are just the cash for the growth of the fund's net value. For open-end funds, if investors want to realize income, they can also redeem part of the fund shares to achieve the effect of cash dividends; Therefore, whether the fund pays dividends and the number of dividends will not have a significant impact on investors' investment income. For closed-end funds, it is sometimes not feasible to realize fund income by selling fund shares because the unit price of the fund is often different from the net value of the fund. In this case, fund dividends become the only reliable way to realize fund income. Investors should pay more attention to dividends when choosing closed-end funds.

Second, the stock return is the stock dividend and the return that exceeds the actual purchase price of the stock because of the ownership of the stock, which is also the most concerned point for every investor to buy the stock. Specifically, stock returns refer to dividends and the appreciation of stock market prices. There are three forms of company dividends: cash dividends, share dividends and property dividends. The appreciation of the stock market price depends in part on the degree of asset increase and the operating conditions of enterprises.

Third, the biggest difference between fund dividends and fund returns lies in the different properties of money. Dividend money is part of the principal, and income is part of the principal. We need to pursue more fund income, and fund dividends are the choice that fund managers have to make.