Current location - Trademark Inquiry Complete Network - Tian Tian Fund - Is fund dividend a good thing or a bad thing?
Is fund dividend a good thing or a bad thing?
Whether it is a good thing or a bad thing to meet the fund dividends cannot be generalized. If the market is good, then the fund dividend is undoubtedly a good thing. However, after the fund pays dividends, it will have a certain impact on the net value of the fund. When investing in closed-end funds, we should consider the impact of this dividend.

If you choose the dividend reinvestment method, the investor's fund share will increase after dividends, and the increased share will not generate any expenses. For long-term investment customers, the increased share will bring considerable compound interest effect.

Extended data

Dividends are not as much as possible. 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.