Cash dividend and dividend reinvestment are two ways of fund dividend. This is only for OTC funds, and ETFs belonging to OTC funds only have cash dividends. Many investors will be entangled in which dividend method is better, so which is better, fund dividend or dividend reinvestment?

Is the fund dividend good for cash dividend or dividend reinvestment?

No matter whether it is cash dividend or dividend reinvestment, there is no charge at first. There is no redemption fee for cash dividends and no subscription fee for dividend reinvestment.

For investors, if they are not optimistic about the market outlook and just want to get the price difference in a short time, and want to keep the income in their pockets, they can choose the cash dividend method.

If you are optimistic about the future market, think that this product still has investment value and want to make long-term investment, then you can choose the way of dividend reinvestment. After all, through dividend reinvestment, this part of cash can be "seamlessly" converted into product shares, and there is no need to pay subscription fees.

Dividend reinvestment is a form of compound interest, which is equivalent to converting the money earned from products into product shares and then investing. The longer the investment time, the more effective the dividend reinvestment can be, and the greater the income can be raised by compound interest.

Finally, investors need to be reminded that general cash dividends are the default. If investors want to reinvest in dividends, they need to modify them themselves.

To sum up, investors can make decisions according to the actual situation, that's all. I hope it helps you.