At present, there are two main forms of dividends for private equity funds, one is split and the other is dividends. For dividends, investors can generally choose cash dividends or dividend reinvestment. However, no matter how the fund pays dividends, the total value of investors' fund assets does not increase or decrease, but only appears in the form of fund share and cash increase, similar to public offering funds.

From the investment manager's point of view, whether it is Public Offering of Fund or private equity funds, there are four motives for comprehensive dividends: on the one hand, let the holders "keep their bags at ease" and maintain the previous investment results; The second is to enhance the confidence of holders and lay the foundation for the continuous marketing of products; The third is to adjust the position through dividends to reduce the risk of the market outlook; The fourth is to control the fund size through cash dividends, especially those private equity funds that are mainly small and medium-sized stocks and operate in a fast-forward and fast-out style.

For investors, although fund dividends are real money, they are only cash for the growth of fund net value. The earning ability of the fund after dividends only depends on the changes of the market and the management ability of the fund manager, and has nothing to do with dividends themselves. There are two ways of fund dividend: cash dividend and dividend reinvestment. Therefore, the overall dividend of the fund is actually an opportunity for investors to re-select, and the holders should adjust the dividend method in a timely, reasonable and objective manner. Choosing the dividend method that suits you depends not only on the market environment, but also on the psychological expectations of investors. At the same time, we should also consider the investment level of fund managers and their responsible attitude towards the interests of customers.

According to relevant regulations, dividends of private equity funds shall meet the following conditions:

1), the private equity fund gains income after selling profitable stocks.

2) The income of the fund in the current year can only be distributed after making up for the losses in the previous year.

3) After the fund income is distributed, the net value of each fund share cannot be lower than the face value.

4) If there is a net loss in the fund investment year, the fund income will not be distributed.

After meeting the above conditions, the dividend depends on the investment strategy of the fund manager. If the fund manager thinks that the stocks held by the fund have room for long-term appreciation, he may not pay dividends. See the fund contract or prospectus for specific dividend terms.