Two. Related contents of fund dividends:
1. Fund dividend means that the fund distributes part of the income to investors in cash, which is originally a part of the net value of the fund unit. According to the Interim Measures for the Administration of Securities Investment Funds, fund management companies should distribute at least 90% of the net income of funds in cash once a year. The "Interim Measures" have expired, and how to allocate them now is subject to the provisions of the Fund Contract. Dividends are not as much as possible. Investors should choose a dividend distribution method that suits their own needs. Fund dividend is not the biggest standard to measure fund performance. The biggest criterion to measure the fund's performance is the growth of the fund's net value, and dividends are just the cash for the growth of the fund's net value.
2. Fund dividend means that the fund distributes part of the income to fund investors in cash, which is originally part of the net value of the fund unit. According to the Interim Measures for the Administration of Securities Investment Funds, fund dividends are paid at least once a year, and there are two main ways of fund dividends: one is cash dividends, and the other is dividend reinvestment. 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, it will not distribute the income. The specific situation needs to pay attention to the fund announcement and keep abreast of it.
3. For open-end funds, if investors want to realize income, they can also redeem some fund shares to achieve the effect of cash dividends; Therefore, whether the fund pays dividends and the number of dividends will not have a significant impact on investors' investment income. For closed-end funds, it is sometimes not feasible to realize fund income by selling fund shares because the unit price of the fund is often different from the net value of the fund. In this case, fund dividends become the only reliable way to realize fund income. Investors should pay more attention to dividends when choosing closed-end funds.