Not necessarily, improper dividends and spin-offs often lead to fund performance far worse than before. Of course, better results can be achieved if dividends are distributed and split in a controlled and purposeful way.

For example, before the plunge, some funds also made dividends and splits out of consideration for the possible sharp shocks in the market outlook. Because they are not in a hurry to open positions and hold more cash, their net worth decreases less during the plunge, absorbs some chips at the low level after the plunge, and then rises faster when the market rebounds.

After the old fund absorbed a lot of money through spin-off, it became a problem whether it could find enough good stocks to invest. If you can't find a good investment variety, then a lot of cash deposits will inevitably be diluted by the original fund holders.

Extended data:

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.

Generally speaking, the fund share holders registered on the equity registration date enjoy the current dividend rights of the Fund. If the date of record falls on the same day as the ex-dividend date, the dividend amount shall be deducted from the share net value of the net value of that day.

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.