Fund dividend is to distribute part of the fund's income to investors. The wool is on the sheep, and the net value of the fund drops after the dividend, so everyone says that the fund dividend is meaningless, so why should the fund company pay dividends? This is because fund dividends are still of great significance to fund companies. Let's take a look at the detailed introduction.

What are the benefits of fund dividends to fund companies?

1, the net value of the fund decreases after dividends, which can attract more people to buy, improve the visibility of the fund, and also improve the visibility of the fund company.

2. Increase the income of fund companies. After the fund pays dividends, the net value drops, and more people buy it, so the fund company can charge more management fees.

3. Fund dividends indirectly prove that the fund has made money, which is conducive to improving investors' trust in the fund and holding the fund for a long time.

4. Conducive to the operation of fund managers. Fund dividend is one of the ways for fund managers to adjust their positions and lighten their positions. Too much money is sometimes difficult to operate, and dividends can just reduce the scale.

Whether the fund pays dividends is good or not is a question with no fixed answer. The key is that investors depend on the market situation after dividends, and which dividend method to choose depends on investors' judgment on the market outlook.

Fund dividends have the above benefits for fund companies. In addition, fund dividends are also good for investors. If you choose cash dividends, it will be safer. If you choose dividend reinvestment, you can reduce the handling fee for purchasing this fund again. After reading the above introduction, I believe everyone has a better understanding of fund dividends.