Fund is a product that many investors like to invest in at present. In addition to the gains from net growth, investors can also get dividends from the fund. But many investors find that some funds don't pay dividends, so what about the funds without dividends?

What's wrong with the fund not paying dividends?

1, the current income of the fund cannot make up for the previous losses.

2. After the distribution of fund income, the net value of each fund share is lower than the face value, that is, the net value after dividends is lower than 1.

3. The Fund incurred losses in the current period.

4. The fund company keeps the fund below the face value by means of large-scale split, so as to reasonably avoid fund dividends, keep the fund at a certain scale and obtain corresponding management fees.

It should be noted that fund dividend refers to the distribution of a part of the fund's net value to investors, which will not generate actual income for investors, which is equivalent to putting the money in the left pocket into the right pocket. Dividends will generally be announced first, and investors will pay attention to the relevant announcements of the fund.

The Fund has two dividend ways: cash dividend and dividend reinvestment. If cash dividend is selected, the dividend amount is cash. If you choose to reinvest in dividends, the dividends will be repurchased into the fund and then get the share of the fund. As for which way to choose, it mainly depends on the needs of investors.