Is it a good thing or a bad thing that the fund doesn't pay dividends for about a year? It is said that the net value will fall after dividends. Would you please explain? What do you mean, no dividends? After paying dividends, the net worth will definitely drop. This is called ex-dividend. Dividend is actually to turn the income on the book into actual income. According to relevant laws, if a fund has income, it must pay dividends at least once a year.

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.

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When distributing dividends, fund managers need to set a date when registered holders can participate in dividends, and this date is date of record. Ex-dividend date refers to the total amount of dividends deducted from the fund assets on a predetermined day. On the ex-dividend date, the net value of fund shares shall be ex-dividend according to the dividend ratio.

Fund dividends will not increase in value out of thin air. Before dividends, the net value of fund shares subscribed by investors is higher, but they can enjoy dividends. After dividends, the net value of fund shares is lower. As a medium and long-term investment and financial management method, as long as you are optimistic about the future growth trend of a fund, you can consider buying in time.

Baidu Encyclopedia-Fund Dividends