After buying the fund, I will look at the total assets I hold every day. During this period, I may encounter a problem, that is, I clearly know that the income of this fund I bought is positive, that is, I made money, but the total assets in my account are actually less than the cost of buying. What's going on here?

Why is the total income of the fund less?

Fund income, but the total income is less, the fund dividend should be paid. When the fund pays dividends, part of the fund's income will be distributed to investors, which will lead to a decline in the fund's net value, so the income will be positive, but the total income of investors will be less. In fact, a small part is also in the fund account. After the fund pays dividends in cash, investors will get a sum of cash.

For example, if you hold 50 shares of a fund with the latest net value of 2 yuan, then the total assets are 100 yuan. Later, this fund paid dividends, and 10 paid dividends to 5 yuan. You chose to pay dividends in cash, so you can get a share in 25 yuan. After dividends, the net value of the fund dropped to 1.5 yuan, so the total assets of this fund are 75 yuan, and 25 yuan with dividends in his account is actually 100.

After the dividend, the total assets held by the fund are less, but there is a sum of money in the account, so the total assets held by investors before and after the dividend are unchanged, but the accounts are different. Fund dividends are not extra money for investors. Don't buy some funds just because you want to pay dividends.

When the fund pays dividends, it can choose cash dividends or reinvest dividends. If you reinvest in the bonus, you will buy all the money you have allocated. Cash dividends mean that you can get the money directly. The advantage of cash dividend is that you can save a sum of money in advance, and the advantage of dividend reinvestment is that you don't have to pay the cost of re-purchase.