Dividends of bond funds have certain significance. Dividend means that bond funds distribute part of their income to investors in the form of cash or shares, so that they can share the profits of the fund. However, it should be noted that dividends will not increase the total income of investors. This is because after dividends, the net value of the fund will decrease accordingly, which is equivalent to transferring part of the proceeds of the total assets of the fund to investors.

For example, suppose an investor holds 1 1,000 bond funds with a net value of RMB 2, with a total value of RMB 2,000. If the fund pays a dividend of 0. 1 yuan per share, investors will get a cash dividend of 100 yuan. At the same time, however, the net value of the fund will drop to 1.9 yuan RMB, which means that the share held by investors will become 1.000 RMB, and the total value will become 1.900 yuan RMB. Although investors get cash dividends, the total assets are still 2000 RMB, which has not increased.

Therefore, the dividend of the fund is essentially to transfer the income from the fund account to the investor account, and there is no substantial increase.

What is a bond fund?

Bond fund is an investment tool, which is issued and managed by fund companies. It mainly invests in various bonds, such as government bonds and corporate bonds. The operation mode of bond funds is to pool investors' funds, and professional fund managers invest in bonds in pursuit of stable returns. Investors buy bond fund shares and enjoy the benefits and appreciation of bonds held by the fund. Compared with the direct purchase of bonds, bond funds have the advantages of risk diversification and good liquidity, and are suitable for investors who pursue relatively stable returns.