Does the fund pay dividends every year?
No, the fund does not need to pay dividends every year, so it is not every year. Fund companies need to meet certain standards to pay dividends. There is no clear time limit for fund dividends, which depends entirely on the announcement issued by the fund company and the performance of the fund. When a fund company pays dividends to the fund, it will generally issue a dividend announcement in advance, clearly telling investors when to pay dividends and the amount that each investor can get.
According to the relevant provisions of the Interim Measures for the Administration of Securities Investment Funds, fund management companies should distribute 90% of the net income of funds in cash at least once a year. This provision was required of the Fund in the past. At present, the interim measures have expired. How to distribute dividends in the current fund needs to be based on the terms agreed in the fund contract.
Fund dividend rules:
1 This year's fund dividends need the fund income of this year to make up for the fund losses of previous years, and the fund income can only be distributed when it reaches positive income.
After the fund pays dividends, the net value of the fund unit cannot be lower than the face value of the fund, otherwise it cannot be distributed.
When there is a net loss in the fund's income this year, the fund cannot pay dividends.
If a fund company wants to pay dividends to the fund, it needs to meet the above three conditions at one time, otherwise it cannot pay dividends. Fund dividends are sometimes a way for fund companies to adjust the net value of funds. When the fund pays dividends, the net value of the fund unit will decline, which can better attract investors to invest and reduce the net value position of the fund.