Fund dividend refers to the cash or dividend distribution made by the fund company to fund holders in a specific period according to the fund investment income. This is usually a measure taken by fund companies to increase the attractiveness of products and safeguard the interests of investors. However, when the fund pays dividends, sometimes the net value will be lower than 1, which makes some investors feel confused and uneasy. So, why is this happening?

First, we need to understand the concept of net worth. Net value refers to the total assets of the fund MINUS the total liabilities and then divided by the total share of the fund. The fluctuation of fund net value is determined by the market situation of fund investment. If the market is depressed, the assets of the fund will be affected and fall, which will lead to a decline in net value. When the fund loses money and needs to pay dividends according to the set proportion, the net value is lower than 1, which is the inevitable result.

Secondly, fund dividends will also affect the net value. After the fund pays dividends, the fund holders can choose to buy the fund again after receiving the corresponding dividends, and the dividends will also reduce the total assets of the fund, thus affecting the net value of the fund. Therefore, the frequency, proportion and time of dividends will have an impact on the net value of the fund. Investors should make accurate risk analysis and income forecast of the fund according to their own risk tolerance and asset allocation needs, and choose the corresponding fund products for investment.