Fund dividend means that the fund will return part of its profits to investors' accounts in the form of cash or dividend reinvestment, which sounds like a good thing, so why does the net value of the fund decrease after dividend? Will the net value of the fund decrease after dividends? I have prepared relevant contents for your reference.

Why does the net value of the fund decline after dividends?

Because the dividend income of this part of the fund is actually a part of the net value of the fund unit, the net value of the general fund will decline after dividends. In layman's terms, it is to distribute part of the income earned by investors to the holders, and the holding share has not changed, so the unit net value will decrease.

For example, if an investor holds 2000 funds, and the dividend amount of each fund is 2000 * yuan, the share amount is written as "4 yuan for each 10 fund share", which is converted into 1 dividend yuan.

If the net value of the fund before the dividend date is RMB yuan, regardless of the influence of market fluctuation on the net value of the fund on the dividend date, the net value after the dividend should be equal to 1 yuan (in this way, the value of 2000 funds is 2000 yuan, and the total is still 2800 yuan, which is consistent with the total market value before the dividend.

Will the net value of the fund decrease after dividends?

If the net value of the fund falls after dividends, you can buy it. If the development prospect of the fund is good and the fund itself is good, you can buy it. If the prospect is not good, it is generally recommended not to buy it. Let's wait and see.