1, the fund can only be distributed after the current year's income makes up for the previous year's losses;

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

3. If the fund investment has a net loss in the current period, it cannot be distributed.

Therefore, when the fund meets the above conditions, it can pay dividends, and the specific dividend situation is subject to the information published by the fund company official website.

There are generally two ways for fund dividends: cash dividends and dividend reinvestment. Among them, fund cash dividend refers to a dividend method in which the fund company distributes part of the fund income to fund investors in cash. Fund dividend reinvestment refers to a dividend method that converts the cash obtained from dividends into fund shares according to the net market value and then distributes them to investors. No matter which dividend method is adopted, after the dividend is distributed, the net value of the fund will be lowered accordingly according to the distributed dividend, and the total assets of investors will not change.

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1. What is fund dividend?

When investing in funds, some people like dividends very much, and they have misunderstandings about dividends, thinking that dividends mean that fund companies give other money to investors. It's definitely not right. Dividends just give our money back to ourselves. In fact, it is to put the money in the left pocket in the right pocket.

This cash is part of the net value of the fund unit. After the fund pays dividends, the net value of the fund unit will decline. Actually, you earned the money. The fund company returns it to investors in the form of dividends, but it is still its own money. Let's turn around.

2. Why should the fund pay dividends?

Some investors are "afraid of high net worth" and dare not buy high net worth funds. After the fund pays dividends, the net value will generally decrease, which will attract these investors.

Of course, this can also show that the performance of fund companies is good, because listed companies can only pay dividends if they make money, which means that this fund must have made money, and the performance of such funds is definitely better.

3. Two forms of fund dividends

For fund dividends, investors have two choices: first, cash dividends, that is, dividends are paid directly to the bank account at the time of subscription, and no handling fee is charged; The second is dividend reinvestment, in which the fund custodian directly counts the fund share corresponding to the cash dividend into the fund account. Under normal circumstances, the fund defaults to cash dividends. If you need to choose the dividend reinvestment method, you need to modify the dividend method before date of record.

4. Finally, when will the dividend be paid?

For this issue, we must make clear three particularly important dates: the registration date of rights and interests, the ex-dividend date and the dividend payment date.

A. date of record: When distributing dividends, the fund manager needs to set a date on which all registered holders can participate in dividends, and this day is date of record.

B. Ex-dividend date: Ex-dividend date is to subtract the total dividends on a predetermined date from the fund assets.

C dividend payment date: refers to the date when investors pay dividends. If cash dividend is selected, the dividend will be withdrawn from the fund custody account on the dividend distribution date.

At present, the prevailing practice in the industry is that date of record and ex-dividend date are the same day. However, under normal circumstances, since the fund subscription is confirmed by T+ 1, the fund subscription on or after the ex-dividend date (equity registration date) does not enjoy the dividend of the fund.