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What is fund dividend distribution?

fund dividend means that the fund distributes part of the income to investors in cash, which is originally a part of the net value of the fund unit. According to the Interim Measures for the Administration of Securities Investment Funds, fund management companies must distribute at least 9% of the net income of funds in cash at least once a year. The interim measures have been invalidated, and how to allocate them now shall be subject to the provisions of the fund contract.

The more dividends, the better. Investors should choose a dividend method that suits their own needs. Fund dividend is not the biggest criterion to measure fund performance. The biggest criterion to measure fund performance is the growth of fund net value, and dividend is just the cash of fund net value growth.

For open-end funds, if investors want to realize income, they can also achieve the effect of cash dividend by redeeming some fund units; Therefore, whether the fund pays dividends or not and the number of dividends will not have a significant impact on investors' investment income.