Dividend conversion is aimed at cash dividends, which is just a marketing tool designed by fund companies to attract customers in the case of fund dividends, because cash dividends can directly get dividends in cash and get tangible benefits, but in order to prevent consumers from redeeming funds, they can continue to invest and use dividend conversion, so that they need to pay redemption fees when redeeming. Therefore, dividend conversion can only happen when the fund company pays dividends, which is completely decided by the fund company and is an uncertain factor. Generally speaking, responsible fund companies will not pay dividends frequently in a bull market.

Dividend transfer is also dividend reinvestment. After purchasing the fund, you will see it on the APP of the purchase channel. The meaning of reinvestment is the same as reinvestment, that is, when the fund pays dividends, the fund holder will directly use the cash obtained from dividends to buy the fund at the fund price of the day, so as to increase the fund share held before, and generally confirm the share on the next trading day.

Switching to investment is a compound interest investment method. If you continue to be optimistic about the funds held in your hands, you can choose to switch to investment. No additional subscription fee is required for conversion of purchased shares, and only redemption fee is required for redemption.

Another dividend method is cash dividend, that is, when the fund pays dividends, the dividend money will be held in hand, so investors who want to "settle down" can choose cash dividend method.

Fund dividends are paid to investors in cash by reducing the net value of the fund. In fact, dividends are the net value after the fund rises.