Dividend reinvestment, commonly known as rolling interest calculation, means that when the fund pays dividends in cash, the fund holder directly uses the cash obtained from the dividends at the fund price of the day to purchase the fund and increase the original fund share. For fund managers, there is no cash outflow from dividend reinvestment, so dividend reinvestment usually does not charge subscription fees.

Fund managers encourage investors to invest more, so there is generally no charge for dividend reinvestment. If investors want to invest more after receiving cash dividends, they will be regarded as new subscriptions and need to pay subscription fees. Therefore, choosing dividend reinvestment is conducive to reducing the cost of investors, and dividend reinvestment can also be operated like buying individual stocks.

Extended data:

Fund dividend benchmark:

1. Generally speaking, fund dividends need to meet the following principles: 1. The current income of the fund can only be distributed after making up the previous losses;

2. After the distribution of fund income, the net value of each fund share cannot be lower than the face value;

3. If the fund loses money in the current period, no income distribution will be made. Some funds also stipulate the distribution method of fund income in advance in the prospectus, such as the minimum and maximum distribution times in a year, or dividends when the distributable income reaches a certain standard.

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