As the saying goes, stand high and fall hard. The same is true of funds. With the increase of fund net value, the higher the risk, the more difficult the operation. At this time, the fund company will pay dividends to the fund in order to reduce its net worth. So do fund dividends make money for investors? What is fund dividend?

First, the fund pays dividends to make money?

For individual investors, fund dividends can't make money, because the net value will fall after dividends, and the net value decline is basically the same as the dividend range. For example, I bought 1000, net value 1, and confirmed share 1000 before dividends. Assuming that the dividend ratio is 0.2 yuan per share, and the net value after dividend falls to 0.8 yuan, then:

(1) If you pay dividends in cash, then your total assets = holding market value+cash dividend income = 0.8 *1000+0.2 *1000 =1000, and you have not earned it.

(2) If you reinvest in dividends, then your total assets = (original holding share+dividend income share) * net value after dividends = (1000+1000 * 0.2/0.8) * 0.8 =1000, and you still haven't earned it.

So you can't expect to make money through fund dividends.

Second, what is the fund dividend?

1, you can lighten your position without violating the provisions of the fund.

2. The net value of the fund can be reduced, which looks cheaper and can attract investors to buy.

3. Dividends are also publicity gimmicks, and funds that regularly pay dividends are usually better publicized.