Cash dividend refers to the payment of cash to the user account. After the cash dividend, the fund's asset share will remain unchanged, but the market value will decrease, and the reduced part is exactly equal to the dividend.
Dividend reinvestment means that dividends are distributed to users in the form of fund shares, and the fund shares held will increase, but the total market value will remain unchanged.
In fact, neither method will change the total assets. The first scheme can meet the needs of some people for funds, and it is also good for the account to have some liquidity. The second kind of investment after dividends, if the fund generates income, is to make money continuously.