Current location - Trademark Inquiry Complete Network - Tian Tian Fund - How do closed-end funds pay dividends?
How do closed-end funds pay dividends?
Dividend method of closed-end funds: \x0d\ Closed-end dividend method, different from open-end funds, the share of closed-end funds remains unchanged, and dividends can only be paid in cash, not in the form of dividend reinvestment. For closed-end funds with long-term discount trading, dividends can play a role in enhancing the investment value of funds. \x0d\ uses N0 to represent the unit net value of closed-end funds before dividends, and D0 represents the dividend amount of unit shares. Assuming that the normal discount rate of closed-end funds is p. \ x0d \ Compared with non-dividends, dividends increase the unit fund share value by P×D0, and fund dividends increase the investment value of closed-end funds, and the increase is positively related to the discount rate and dividend amount. In fact, because the dividends of closed-end funds enhance the investment value, closed-end funds are favored by funds before a large proportion of dividends, and the discount rate will be greatly reduced. However, in practice, investors should pay attention to whether the discount reduction degree of closed-end funds overdraws the dividend promotion degree in advance. \x0d\ Dividend time of closed-end funds: \x0d\ The fund contract has stated that dividends should be paid twice a year, in the middle of the year and at the end of the year respectively. Now is the dividend period of closed-end funds, but there is a hard condition that the dividend of closed-end funds must be based on profit. If the fund is negative this year, it can't pay dividends.