10 distributing 9 funds refers to the dividend-paying behavior that investors distribute 9 yuan cash for every 10 fund. After the dividend, the net value of the fund will be lowered according to the dividend distributed this time, so that the total assets of investors will remain unchanged.

In addition, when the fund company pays dividends, it will also adopt the method of dividend reinvestment, that is, the fund holder will convert the cash obtained from dividends into fund shares according to the net value of the fund on that day and then distribute them to investors.

Generally speaking, in the case of bad market conditions, choose cash dividends, and in the case of good market conditions, choose dividends for reinvestment.