Reinvestment of dividends in funds means reinvesting the income from investment in funds. After the fund pays dividends, there are generally two ways: cash dividend and dividend investment. The cash dividend of the fund is to distribute the fund's income directly to investors in cash, and the reinvestment of the fund is to reinvest the income, generally speaking, it is to realize rolling interest. And the dividends of the fund do not require subscription fees when investing.

Distribution of fund income dividends

1. Before the fund pays dividends, it must make up for the previous losses of the fund before it can pay dividends. That is to say, the amount of the fund's current income MINUS the previous losses is the amount of this dividend;

2. After the distribution of fund income, the net value of each fund cannot be lower than the face value of each fund;

Generally speaking, the fund has a certain dividend period every year. The dividend period of most funds is 12. However, if the fund loses money in the current period, it will not pay dividends in the current period, which will reduce the dividends in the first period.