There are two main ways of fund dividend, one is cash dividend and the other is dividend reinvestment. In fact, fund dividends are not available to every fund, but only when relative conditions are met. So is the fund dividend good or bad? What is the reason for the fund's dividend? We have prepared relevant contents for your reference.

Is the fund dividend good or bad?

If the fund needs to meet the conditions of fund dividends, part of the previously profitable funds will be distributed to the fund share holders, and the net value will drop after dividends. Although the dividend money is not extra, it is equivalent to taking out a part in advance, but the share of the fund will not change after it is put forward, and the foundation of the position will continue to float.

If you choose to invest in dividends again, you will increase the fund share. In fact, fund dividends do not mean extra money. This money is your own. If it is distributed to your own account, you can avoid the retracement caused by the subsequent market decline, which is good from this perspective.

What is the reason for the fund's dividend?

The reason why the fund pays dividends is that the fund meets the conditions for dividends. Generally speaking, there are three conditions for fund dividends, that is, the income of the fund in the current year can only be distributed after making up for the losses in previous years; After the distribution of fund income, the unit net value cannot be lower than the face value, and if there is a net loss in the current period, the fund investment cannot be distributed.

If you unfortunately choose a bad fund, it will always fall much, rise little and suffer serious losses. If you don't meet the choice of fund dividends, you won't get dividends, so fund dividends represent the fund to some extent, at least there is no special difference.

I hope the above content can help everyone ~