Compared with the current policy, this scheme has the following advantages: first, the full distribution of dividends, bonuses, bond interest and deposit interest income and the distribution of capital gains in this scheme ensure the low limit of fund income distribution to a certain extent; The second is to cancel the mandatory provisions on income distribution beyond the lower limit, so that the fund can not retain too much cash, enhance the flexibility and effectiveness of fund assets operation, and avoid the impact of large-scale realization of the fund on the securities market when it is close to income distribution; Third, fund investors can reinvest their investment income effectively. If the fund's capital gains exceed a certain proportion of the fund's net assets, it shows that the fund manager can get a fairly good return on investment. When the fund manager chooses, the excess will be reinvested, so that the fund holder will have the opportunity to continue to obtain the good performance of the fund manager. Fourth, the fund can carry forward the rich profits obtained in one year to the following years, make up for the apology with rich profits, and ensure that the fund holders can obtain relatively stable cash income during the fund's existence.
In addition, we also suggest that capital gains beyond the lower limit can be distributed in the form of fund shares, which are converted according to the market price of funds. This practice can, to a certain extent, reduce the abnormal situation that the fund price is much higher than its net assets due to artificial speculation. Because funds can only choose the allocation method of sending fund shares when they have strong profitability, it is different from the newly issued fund shares and does not violate the management's quota control policy for newly issued funds, just as listed companies do not violate the quota control of new share issuance, so it is feasible.