What is fund dividend?
Fund dividends are not extra income, but the income after the net value of the fund rose before, and are distributed to investors in the form of cash or dividend reinvestment. This part of the income was originally included in the net value of the fund unit. Compared with transferring money from left hand to right hand, this money is equal to no points.
After the fund pays dividends, it will carry out ex-dividend operation to keep the total assets of investors unchanged. No matter which method is adopted, the net value of the fund will be lowered accordingly after dividends.
For example, the net value of a fund is 1.5 yuan, and there are 1, 000 investors. After 5 yuan cash is distributed every 10, investors will get 500 yuan cash dividend, but the net value of the fund will be reduced to 1 yuan. If five dividends are invested for every 65,438+00 shares, the share held by investors will become 65,438+0.500 shares, but the net value of the fund will also be reduced from the original 65,438+0.5 yuan to 65,438+0 yuan.
Fund dividends must be met: the fund can only be distributed after the current year's income makes up for the previous year's losses; After the distribution of fund income, the unit net value cannot be lower than the face value; If the fund investment has a net loss in the current period, it cannot be distributed.
It is worth mentioning that fund dividends are not taxed. Income tax is temporarily exempted from the fund income distributed by the Fund to investors, and no subscription fee is charged for the reinvested portion of the fund dividend. However, if the fund buys stocks and the stocks pay dividends, the income tax will be deducted from the cash dividends. This part of the income tax does not require investors to pay extra, but is deducted from the fund assets.