2. Reduce the cash cost. Fund dividends can enable investors who choose cash dividends to reduce the cost of cashing in their income. Because his dividend will not generate some redemption fees. The investor who chooses dividend reinvestment also reduces the subscription fee for reinvestment, because he increases the investment share.
3. increase income. No matter what the market is like, no matter whether the market is stable or not, investors can get some benefits.
according to
Generally speaking, fund dividends need to meet the following principles:
1. The current income of the fund can only be distributed after making up the previous losses.
2. After the distribution of fund income, the net value of each fund share cannot be lower than the face value.
3. If the fund loses money in the current period, no income distribution will be made. Some funds also stipulate the distribution method of fund income in advance in the prospectus, such as the minimum and maximum distribution times in a year, or dividends when the distributable income reaches a certain standard.
The above contents refer to Baidu Encyclopedia-Fund Dividends.