1. Cash dividend means that the fund manager distributes profits to investors according to the fund profits and the number of fund shares held by investors;

2. Converting dividend reinvestment into fund shares refers to converting the net profit to be distributed into equivalent new fund shares according to the net share value after ex-dividend for fund distribution.

There is no reinvestment risk in cash dividends; Dividend reinvestment can realize profit appreciation and compound interest investment, which is more beneficial to long-term investors. Investors can choose the method of fund dividend when purchasing funds. If they don't choose the dividend method, they will default to cash dividend.