There are open-end funds and closed-end funds in the fund market. There are many differences between these two types of funds, but there are also many similarities. For example, both can pay dividends, but the way of paying dividends is somewhat different. There is only one way for closed-end funds to pay dividends.

How to divide the dividends of closed-end funds?

The fund size of closed-end funds has been determined before the issuance, and the fund size is fixed after the issuance and within the specified period. Only cash dividends can be used, and dividends cannot be reinvested. The fund's cash dividend is distributed in the same way as the stock cash dividend, and is distributed according to each investor's share. If a fund holds 654.38+10,000 fund shares and each fund share pays a dividend of 0.20 yuan, the fund holder can get a cash dividend of 20,000 yuan.

At present, domestic closed-end funds stipulate that not less than 90% of the realized income of the fund in the current period must be distributed to fund holders in cash. For closed-end funds with long-term discount trading, dividends can play a role in enhancing the investment value of funds.

In fact, because the dividends of closed-end funds enhance the investment value, closed-end funds are favored by funds before a large proportion of dividends, and the discount rate will be greatly reduced. However, in practice, investors should pay attention to whether the discount reduction degree of closed-end funds overdraws the dividend promotion degree in advance.