Can a fixed investment fund set a dividend for reinvestment?

In the process of fixed investment, investors can choose dividend reinvestment or cash dividend, among which dividend reinvestment has better effect and can bring greater compound interest effect to investors.

Among them, cash dividend means that the fund company distributes part of the fund income to fund investors in cash; Dividend reinvestment means that when the fund pays dividends, the fund holders convert the cash from dividends into fund shares according to the net value of the fund on that day and then distribute them to investors.

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