After investors buy funds, there are two main ways to make money. One is to buy low and sell high to earn the difference. The other is to choose cash dividends when paying dividends, and money is also distributed. So is the income from fund dividends the same as the income from fund trading? What's the difference between them?

What is the difference between fund dividends and income?

1 is essentially different. Fund dividend is to distribute a part of the net value of the fund to investors. Fund income is the profit brought by the increase of fund net value;

② The total assets change differently, and the fund dividends will not change the total assets of the fund. Fund income will increase the total assets of the fund;

Fund dividends will not cause losses or profits to investors. Fund income will make investors generate profits or losses;

4 the number of dividends paid by the fund dividend fund is not necessarily, and it can be once a year or not distributed for several years. Fund income may generate profit or loss every trading day;

5 the fund pays dividends because of its high net worth, and the dividend is to reduce the net worth. Fund income is calculated by net value, and if the net value rises, the fund will have income.

Fund dividend and fund income are two completely different concepts, which are easy to distinguish. Fund dividends are not really profitable for investors, just taking out some money in advance, and the fund income is actually profitable, only if you sell it in time. If your fund goes up but you don't sell it, it may change from making money to losing money, but as long as you don't sell it, you can't say that you really make money or lose money.

Last reminder: If the fund you buy wants to pay dividends, remember to decide in advance whether to choose cash dividends or reinvest dividends. If not, the system defaults to cash dividend. If you want to choose dividend reinvestment, you need to modify the dividend method yourself.