Closed-end fund belongs to trust fund, which refers to the relationship between open-end fund and closed-end fund, which has been determined before issuance and fixed within the specified period after issuance and traded in the securities market. Open-end funds and closed-end funds are isomorphic, forming two basic modes of fund operation. Open-end fund refers to an investment fund whose scale is not fixed, but which can issue new shares or be redeemed by investors at any time according to market supply and demand. Closed-end fund is relative to open-end fund, which refers to the investment fund whose fund size has been determined before issuance and remains unchanged within the specified period after issuance. Open-end funds are not listed and traded, and are generally purchased and redeemed by banks. The scale of the fund is not fixed, and the fund unit can sell it to investors at any time or buy it back at the request of investors. Closed-end funds have a fixed duration, and the fund size is fixed during the duration. Generally listed on the stock exchange, investors buy and sell fund shares through the secondary market. Closed-end funds are not allowed to accept new shares and IPOs for a period of time before the new round of opening. When opening up, you can decide how much to bid or reinvest, and newcomers can also buy shares at this time. Generally, the opening time is 1 week and the closing time is 1 year. Fund is an indirect way of securities investment. By issuing fund shares, fund management companies concentrate investors' funds, which are managed by fund custodians (that is, qualified banks) and managed and used by fund managers to invest in financial instruments such as stocks and bonds, and then * * * bear the investment risks and share the benefits.
2. According to the Measures for the Administration of Securities Investment Funds, the income distribution of closed-end funds shall not be less than once a year, and the proportion of annual income distribution of closed-end funds shall not be less than 90% of the realized income of the fund. Closed-end funds generally pay dividends in cash.
Investors generally know about cash dividends. At present, domestic closed-end funds stipulate that not less than 90% of the realized income of the fund in the current period must be distributed to fund holders in cash. The fund's cash dividend is distributed in the same way as the stock cash dividend, and is distributed according to each investor's share. If you hold 6,543,800 units of a fund, and each unit pays a dividend of 0.20 yuan, then you can get a cash dividend of 20,000 yuan.
Similarly, in the above dividend situation, if you choose to pay dividends by fund share when investing, and the fund share (announced the next day) is 65,438+0.20 yuan, you can get 20,000 ÷ 65,438+0.20 = 65,438+06,667 fund shares, and your fund share will become 65,438.
The fund share dividend is also called reinvestment. The cash dividend to be distributed will continue to be invested in the fund, accumulated and expanded. For this kind of reinvestment, under normal circumstances, fund management companies do not charge subscription fees and encourage investors to continue to invest in the Fund. If the subscription rate is 2% and the cash dividend reinvestment fund is selected, only (20,000-20,000× 2% )×1.20 =16333 fund units can be purchased, which is 334 less than the direct selection of fund share dividends.
If investors are optimistic about a fund, they may wish to consider choosing fund share dividends; If you need cash income to supplement your family regularly, you should choose cash dividends. Most fund management companies will allow investors to change the choice of dividend distribution methods, so even if your income and household expenses have changed greatly, don't worry, you can apply to the fund management company for change.
Generally speaking, investors who invest in growth funds have strong anti-risk ability and pay attention to the growth and accumulation of capital, which is more suitable for choosing the distribution method of fund share dividends; Investors who invest in balanced funds and income funds pay more attention to stability and cash income, and can choose the distribution method of cash dividends.
I hope it helps you! !