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Is it better to divide funds or pay dividends? What's the difference between them?
Both fund split and fund dividend discount the net value of the fund, and generally have no effect on the actual expected return of the holder. So, is it better to split the fund or pay dividends? What's the difference between them? Today we will look at the connection and difference between these two contents.

1. Is it better to distribute funds or pay dividends?

Division of funds

Keep the investment portfolio unchanged, the fund manager unchanged and the fund share reduced. It does not affect the realized expected income, unrealized income and paid-in funds of the fund.

Fund dividend

In fact, fund dividend is to take out part of the market value of the fund originally held by the holder and turn this part of fund assets into cash and return it to the holder, but it does not involve any wealth appreciation.

So, is it better to split the fund or pay dividends?

In fact, from the operation of the two, it has no effect on the expected return of the holder. From the perspective of split accuracy, the fund split can be more accurate to 1.

Judging from the expected return of the fund, both of them are aimed at increasing investors' investment information, but one is through dividends and the other is through cost reduction, which has no significant impact.

2. What is the difference between fund split and fund dividend?

1, fund share splitting can accurately adjust the net value of fund shares to 1 yuan, while fund dividends (including large-scale dividends) are difficult to accurately adjust the net value of fund shares to 1 yuan, only to 1 yuan.

2. Compared with fund dividends, fund splitting does not need to sell stocks that are still optimistic, and benefits from dividends to investors, which has little impact on fund investment and has no adverse impact on investors' rights and interests.

All of the above are opinions about whether the fund is split or dividends, and what is the difference between the two. I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.