1, changes in fund net value after dividends:

(1) decrease in net value: the definition of fund dividends is that the net value of the fund will decrease with the amount of fund dividends, but the total assets of investors will remain unchanged and will not increase due to dividends.

(2) Why does the net value decrease? Fund dividends are not extra income, but the fund distributes part of the income to investors. The decline in the net value of the dividend fund is actually to divide your own money, but you don't have to redeem it, you don't have to pay redemption fees, you don't have to pay taxes for the time being, and you don't have to pay handling fees. Actually, it's your own money, and you can get it back in advance.

For example:

(1) You buy it at 1 yuan, and it rises to 1.5 yuan; Dividend 0.2 yuan, after dividend, the net value of the fund is 1.3 yuan (but the accumulated net value is 1.5 yuan), and your assets are 1.5 yuan after adding 3 yuan and 0.2 yuan, which is still 1.5 yuan, but this is for the fund company to satisfy some risk aversion. You can also change it to dividend transfer according to your own preferences.

(2) Assuming that Guo Futianhui's net worth before dividends is 3.5644 yuan, and after dividends is 0. 15 yuan, the net worth will become 3.4 144 yuan. In other words, if you hold a fund of 654.38+00,000 yuan, the assets before dividends are 35,644 yuan (share * net value). The assets after dividends are 34 144 yuan (share unchanged, net value decreased)+1500 yuan (cash dividends), totaling 35,644 yuan.

First, the impact of fund dividends:

For example, you bought Guo Fu Tianhui on March 26th, 2020 1 years ago. At that time, the net value was 2.2084 yuan, and now it is 3.5644 yuan, up by 1.356 yuan, or 6 1.4%.

The fund manager used 1 to help investors earn 1.356 yuan, and took out 0. 15 yuan as dividends.

For them, dividends are the real dividends. For those who want to pick peaches, it's just a left hand and a right hand.

Two, two ways of fund dividends:

There are two ways for fund dividends: one is cash dividends, and the other is dividend reinvestment.

The main difference is that cash dividends can be collected, and share dividends (dividend reinvestment) can be collected.

Cash dividend: refers to a dividend method in which a fund company distributes part of the fund income to fund investors in cash.

Dividend reinvestment: When the fund pays the cash dividend, the fund holder directly purchases the fund with the cash obtained from the dividend and turns the dividend into the holding fund unit (no subscription fee). Because dividends are received as shares, the shares held will increase, which is also called share dividends.

Note: On-site shares can only be distributed in cash, not shares.

The simple understanding of cash dividend is to distribute the money earned to investors, and dividend reinvestment is to continue investing the money earned and get compound interest.