Is the fund dividend earned or lost?
Fund dividend is a neutral concept, and investors have neither earned nor lost when they get the fund dividend. The essence of fund dividend is to distribute a part of the distributable income in the fund net value to investors in advance in the form of cash dividend or dividend reinvestment, which was originally a part of the fund net value held by investors. Therefore, the total assets held by investors before and after dividends remain unchanged, and only a part of the net fund value needs to be converted into cash or the fund share is accumulated into the original fund share.
Is it a bonus?
No, the fund dividend itself does not increase the actual income of investors, and the dividend itself is part of the net value of the fund unit. Therefore, the fund's net value will drop by the amount of dividends, and no new wealth will be created.
Although fund dividends will not increase additional income, fund dividends can help investors save money. Among them, the way of cash dividend is equivalent to the redemption of some funds by investors, and these funds are free of redemption fees. The way of dividend reinvestment is equivalent to using the dividend money for additional investment to increase the share and avoid the subscription fee.