What is fund dividend? Fund dividend refers to the behavior that the fund company returns a part of the fund net value to investors in cash within a certain period of time. Generally speaking, the time period of fund dividend is one year, that is, there will be a dividend every year.
The types of fund dividends are divided into cash dividends and reinvested dividends. Cash dividend means that the fund company returns the dividend amount to investors in cash and reinvests the dividend amount in the fund to increase the fund share and net value.
How to choose the way of fund dividend? When choosing the fund dividend method, you need to consider it according to your investment objectives and risk tolerance. If investors need cash flow, they can choose cash dividends; If investors pursue long-term investment income, they can choose to reinvest in dividends. At the same time, we also need to pay attention to the regulations of fund companies on dividend distribution methods. Some fund companies may only offer some kind of dividend.
Fund dividend is an important feature of fund investment. Investors need to know the dividend policy and dividend method of the fund in order to make more informed investment decisions.