Fund dividend means that the fund distributes part of its income to fund investors in cash. Fund dividends themselves will not create income, which can be understood as turning part of the money on investors' books into money in their pockets. When the fund pays dividends, the dividend amount of each fund share will be deducted from the net value of the fund on the ex-dividend date. Since this part of the proceeds used for dividends have been distributed, it seems that the net value of the fund may decline that day, but it is actually not a decline, but a dividend. Whether the invested Public Offering of Fund pays dividends mainly depends on the fund contract. But generally speaking, when the fund income reaches a standard, the fund manager can pay dividends.

At present, there are two ways of fund dividend, namely cash dividend and dividend reinvestment. Among them, dividend reinvestment is the default dividend method of the money fund, and the dividend funds are directly used to increase the holding share; Cash dividend is the default dividend method for non-monetary funds, and the dividend funds will be allocated to investors' current accounts or bank accounts.