"Fund dividend" means that the fund will return a part of its profits to investors' accounts in the form of cash or dividend reinvestment, which is actually a part of the net value of the fund unit, so the general net value of the fund will decline after dividends.
The fund dividend methods include "cash dividend" and "dividend reinvestment". Cash dividend: non-monetary fund default method, dividend will be directly transferred to current account; Dividend reinvestment: directly increase the fund share, which is the default method of general money funds. Fund dividends are generally cash dividends by default, and the dividend method can be modified, which is subject to the announcement of the fund company. How much product dividends, the net value of products will be reduced accordingly; Product dividends will not increase additional income, but will only save part of the product income and distribute it to investors; Product dividend is not the biggest criterion to measure product performance, but the biggest criterion to measure product performance growth is the growth of product net value, and dividend is only one of the cash forms after product net value growth.
Fund cash dividend refers to a dividend method in which a fund company distributes a part of fund income to fund investors in cash. Fund dividend reinvestment means that when a fund pays a cash dividend, the fund holder directly purchases the fund with the cash obtained from the dividend and converts the dividend into the fund share held. For fund managers, there is no cash outflow from dividend reinvestment, so dividend reinvestment usually does not charge subscription fees.
If the fund reinvests in dividends, how much share to increase is calculated according to the net value on the day of dividends. Bonus/net worth = increased share. Although the subscription before dividends can get dividends and be converted into fund shares, the subscription after dividends can buy more fund shares with the same subscription amount because of the decrease of fund net value. Fund dividend means that the fund company distributes part of the fund income to investors as a return on investment. Cash dividend method is a dividend method in which fund companies distribute part of fund income to fund investors in cash. Dividend reinvestment is a way for fund investors to reinvest the cash dividends from dividends in the fund to obtain fund shares. If it is a short-term investment, it is recommended to pay dividends in cash. If it is a long-term fixed investment, it is recommended to turn dividends. After paying dividends, if you choose to pay dividends in cash, the cash you get will be credited to the account where you bought the fund. As long as it arrives, you can go to the bank and take it out. When the money is transferred to the wealth management account, there is an option in the wealth management account to transfer the account deposit (that is, the money in the wealth management account) to the current account.