Is a fund that pays dividends regularly a good fund?
We can think of a fund as a company, we are the holders of this fund, and the fund company and fund manager work for us (collect fund management fees). When the fund makes a lot of money, it can cash in the expected income through dividends.
For example, last year you bought a fund with a net value of 1 1,000 yuan, and at that time you bought 1 1,000 shares. A year later, you found that the net value of this fund rose to 2 yuan, and you made a profit. The fund company decides that each fund will pay a dividend of 1 yuan, which means you can get a dividend of 1 ,000 yuan.
But don't be too happy, fund dividends and stock dividends are different in nature. For stock dividends, listed companies don't pay dividends, so the money stays in their pockets, and shareholders can't earn it, but the money earned by the fund is reflected in the net value, and we can redeem it at any time, regardless of whether the fund pays dividends or not, which has little impact on the interests of the people.
When the fund pays dividends, although we get the expected income from cash dividends (if cash dividends are set up instead of reinvesting dividends), the fund company will also deal with the fund net value, and the fund net value will reduce the cash, so the fund dividend is equivalent to the fund company moving the money originally belonging to the people from the left pocket to the pocket, which is of little significance.
Therefore, don't think that a fund that pays dividends regularly is a good fund, and a broke fund is a bad fund. Fund dividend is not an important indicator to measure fund performance.
Well, the principle of fund dividend is introduced here, hoping to help the people. Warm reminder, financial management is risky and investment needs to be cautious.