1. When the market is bad or the fund is in a downward trend, the fund has dividends. At this time, it is better to choose cash dividends, because it can be safe at this time and keep part of the income;
2. When the market bottoms out or the market improves, it is best to choose dividend reinvestment, because reinvestment will buy a certain share of dividend money. If the market outlook rises, the more profit you will get from the stock. Moreover, at this time, the fund that chooses to reinvest dividends does not need to pay the subscription fee.
In addition, many fund investors can't judge whether the current market is good or bad. In this case, if they don't want to continue investing in the short term, they will choose cash dividends. If they want to continue to invest for a long time, they will choose to reinvest in dividends. At the same time, I suggest you learn more theoretical knowledge and have a general judgment on the market before you can make the right choice.
1. What is a bonus?
Refers to the fund's net investment income and its distribution to fund holders. 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, bonuses, bond interest, price difference between buying and selling securities, bank deposit interest and other income.
Fund dividend means that the fund distributes part of the income to fund investors in cash, which is originally a part of the net value of the fund unit. Therefore, investors actually get the assets on their books, which is why the net value of fund shares fell on the day of dividends (ex-dividend date).
Fund dividends and income: The more dividends, the better. Investors should choose a dividend distribution method that suits their own needs. Fund dividend is not the biggest standard to measure fund performance. The biggest criterion to measure the fund's performance is the growth of the fund's net value, and dividends are just the cash for the growth of the fund's net value.
For open-end funds, if investors want to realize income, they can also redeem part of the fund shares to achieve the effect of cash dividends; Therefore, whether the fund pays dividends and the number of dividends will not have a significant impact on investors' investment income. For closed-end funds, it is sometimes not feasible to realize fund income by selling fund shares because the unit price of the fund is often different from the net value of the fund. In this case, fund dividends become the only reliable way to realize fund income. Investors should pay more attention to dividends when choosing closed-end funds.
Cash dividend: cash dividend is a direct cash dividend, which does not need to pay redemption fee and is tax-free, that is, it is safe to leave the bag;