Fund dividend reinvestment means that when a fund pays a cash dividend, the fund holder directly purchases the fund with the cash obtained from the dividend and converts the dividend into the fund share held. For fund managers, there is no cash outflow from dividend reinvestment, so dividend reinvestment usually does not charge subscription fees.
If the fund reinvests in dividends, how much share to increase is calculated according to the net value on the day of dividends. Bonus/net value = increased share
Although the subscription before dividends can get dividends and be converted into fund shares, the subscription after dividends can buy more fund shares with the same subscription amount because of the decrease of fund net value.
Fund dividend benchmark:
Generally speaking, fund dividends need to meet the following principles:
1. The current income of the fund can only be distributed after making up the previous losses;
2. After the distribution of fund income, the net value of each fund share cannot be lower than the face value;
3. If the fund loses money in the current period, no income distribution will be made. Some funds also stipulate the distribution method of fund income in advance in the prospectus, such as the minimum and maximum distribution times in a year, or dividends when the distributable income reaches a certain standard.
Cash dividend refers to the transfer of dividend funds into investors' accounts, which is regarded as a safe bag and the fund share remains unchanged. This part of the bonus can be purchased again or consumed.
Dividend reinvestment refers to re-purchasing new shares of dividend-paying funds according to the net value of fund shares on the dividend-paying date, increasing the fund shares held, and enjoying or bearing the gains or losses brought by the subsequent changes in the net value of fund shares.
If you hold 65,438+00,000 shares of a fund, the unit net value is 65,438+0.50 yuan, and each share will receive a dividend of 0.65,438+00 yuan. When dividends are not paid, the stock market value is 15000 yuan.
In the case of cash dividends, 0. 10 yuan * 10000 shares = 1000 yuan, and at this time, the stock market value is 1.40 * 10000 yuan = 14000 yuan, and at the same time,
In case of dividend reinvestment, the dividend is 1 1,000 yuan/unit net value 1.4 yuan = 7 14.29. At this time, the number of shares has increased by 765,438+04.29, and the stock market value is 65,438+0.40 * 65,438+007, 14.29.