Fund dividend means that the fund distributes part of its income to fund investors in cash, which can be divided into two ways: cash dividend and dividend reinvestment. Cash dividend means that the fund company distributes part of its income to fund investors in cash. Dividend reinvestment means that when the fund pays dividends, the fund holders convert the cash from dividends into fund shares according to the net value of the fund on that day and then distribute them to investors.

If the fund adopts the cash dividend method, that is, the dividend is distributed to the investor's bank account in cash, which will reduce the funds in the investor's fund account, and at the same time, if the net value of the fund falls after the dividend, it will also reduce the market value of the investor.

At the same time, no matter which dividend method is adopted, after the dividend, the net value of the fund will be lowered accordingly according to its dividend situation.

Fund dividend means that the fund distributes part of its income to fund investors in cash. There are two main ways of fund dividend: cash dividend and dividend reinvestment. Only when the current income of the fund is met and the previous losses are made up can the current income be distributed. After the distribution of fund income, the net value of each fund share cannot be lower than the face value; The principle of not distributing income in the current loss of the fund.

There are two main ways of fund dividend: one is cash dividend, and the other is dividend reinvestment.

According to the Measures for the Administration of the Operation 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 bought the fund to modify the dividend distribution method before date of record.

For example, if you hold 6,543,800+shares of a fund, each fund share will receive a dividend of 0.05 yuan: if you choose the cash dividend method, then the basic people will receive a cash dividend of 0.5 million yuan. Assuming that dividends are reinvested and the net value of fund shares on the dividend base date is 1.25 yuan, then the citizen can be divided into 5,000 yuan1.25 yuan/share = 4,000 fund shares, and the fund shares will become104,000. As the total assets of the fund decreased due to dividends, the net value of the fund decreased after dividends.

The default dividend method of open-end funds is cash dividend, but the basic people can change it independently according to the individual's specific situation and the changes in the fund market. When changing the dividend distribution method, the consignment customer needs to bring his ID card and securities card to the consignment agency that originally purchased the fund for modification; Direct selling customers can modify themselves through the fund company's website or telephone trading system.