Ex-dividend date refers to the total amount of dividends deducted from the fund assets on a predetermined day. On the ex-dividend date, the net value of fund shares shall be ex-dividend according to the dividend ratio.
Generally speaking, the fund share holders registered on the equity registration date enjoy the current dividend rights of the Fund. If the date of record falls on the same day as the ex-dividend date, the dividend amount shall be deducted from the share net value of the net value of that day. Fund dividends will not increase in value out of thin air. Before dividends, the net value of fund shares subscribed by investors is higher, but they can enjoy dividends. After dividends, the net value of fund shares is lower. As a medium and long-term investment and financial management method, as long as you are optimistic about the future growth trend of a fund, you can consider buying in time.
Since the fund income distributed by dividends is a part of the fund's net value, the fund's net value will be relatively low after dividends. Is it more cost-effective to buy? Assuming that there is no market fluctuation between date of record and dividend reinvestment date, there is no difference in the assets owned by investors whether they buy before or after dividends. This is because, although the subscription before dividends can get dividends and be converted into fund shares, the subscription after dividends can buy more fund shares with the same subscription amount due to the decrease of the net value of the fund.