the so-called fund dividend means that after the fund realizes the net investment income, it will be distributed to investors. The net income of the fund refers to the balance of the fund income after deducting the expenses that can be deducted from the fund income according to the relevant regulations, including dividends, dividends, bond interest, price difference between buying and selling securities, bank deposit interest and other income. In addition, the fund dividend must meet the following conditions: 1. The fund can only be distributed after the current year's income makes up for the previous year's losses; 2. After the distribution of fund income, the unit net value cannot be lower than the face value; 3. If the fund investment has a net loss in the current period, it cannot be distributed. In addition to the requirements of relevant laws and regulations, fund dividends should also be carried out in accordance with the income distribution clauses in the prospectus.

there are two ways of fund dividend: cash dividend and dividend reinvestment. According to the Measures for the Operation and Management of Securities Investment Funds, if the investor does not specify the dividend distribution method, the default income distribution method is cash dividend. Investors can go to the institution where you buy the fund to modify the dividend method before the equity registration date.

So, do you know the calculation method of cash bonus? The cash dividend is the fund share you hold multiplied by the dividend amount distributed by each fund. At present, the state does not levy income tax on the dividend income from securities investment, so the dividend income you get is equal to the cash dividend distributed. If you choose dividend reinvestment, the cash dividend from dividends will be automatically converted into fund units for reinvestment by the net asset value of the unit fund on the dividend distribution date specified in the dividend announcement. Need to be reminded that the fund share obtained by dividend reinvestment is free of subscription fee, which can help your long-term investment to obtain higher returns.

many investors will ask, should we buy the fund before dividends or after dividends? Since the fund income distributed by dividends is a part of the fund's net value, after dividends, the fund's net value will be relatively low. Is it more cost-effective to buy? Assuming that there is no market fluctuation between the equity registration date and the dividend reinvestment date, there is no difference in the assets owned by investors whether they buy before or after dividends. This is because, although the purchase before dividends can get dividends and be converted into fund shares, the purchase after dividends can buy more fund units with the same subscription amount due to the decrease in the net value of the fund.

Another issue that investors are concerned about is whether a good fund should pay more dividends. In fact, in addition to dividend-paying funds, for other types of funds, more dividends are not necessarily a good thing, and reasonable dividends are the most important. Because the fund dividend should be based on the realized income, the fund manager must throw out the profitable stocks or bonds in his hand to pay dividends. If dividends are paid frequently, the fund will naturally fall into the short-term behavior of band operation, and the frequent entry and exit of funds in the market will increase stamp duty and commission accordingly. In fact, these transaction costs will ultimately be borne by fund holders.

Respondent: Gui Yi-Trainee Magician Level 3 6-2 16:45