Legal analysis: at present, there are two main forms of dividends for private equity funds, one is split and the other is dividends. For dividends, investors can generally choose cash dividends or dividend reinvestment. However, no matter how the fund pays dividends, the total value of investors' fund assets does not increase or decrease, but only appears in the form of fund share and cash increase, similar to public offering funds.

Legal basis: Article 3 of the Securities Investment Fund Law of People's Republic of China (PRC), the rights and obligations of fund managers, fund custodians and fund share holders are stipulated in the fund contract in accordance with this Law.

Fund managers and fund custodians shall perform their fiduciary duties in accordance with this Law and the provisions of fund contracts.

Fund share holders of funds established through public offering (hereinafter referred to as Public Offering of Fund) shall enjoy benefits and bear risks according to their fund shares, and the income distribution and risk bearing of funds established through non-public offering (hereinafter referred to as non-public offering funds) shall be stipulated in the fund contract.