Many investors will pay attention to fund dividends when investing in funds. Generally speaking, the fund will pay dividends once a year, and there are two ways to pay dividends, one is cash dividend, and the other is dividend reinvestment. So will the fund dividend be counted in the income?

Do fund dividends count as income?

Calculate, the fund dividend is a part of the fund income, and the fund dividend money is included in the accumulated income. However, since the fund dividend includes cash dividend and dividend reinvestment, if it is cash dividend, the fund company will distribute part of the fund income to investors in cash, while if it chooses dividend reinvestment, the fund investors are equivalent to reinvesting the cash obtained from the fund dividend in the fund to obtain the fund share.

However, it should be noted that fund dividends are only a way of interest distribution. According to the regulations, the public offering foundation distributes the income to investors according to the frequency and proportion agreed in the contract, so it will not increase the additional income of investors. Therefore, the fund held immediately did not pay dividends, and the income due to investors is still in the investor's fund account, which will also be returned to investors at the time of redemption.

In addition, if the fund pays dividends, it also needs to meet three conditions:

1 The fund has no net loss in the current period;

② The income of the fund in the current year can make up for the losses in the previous year;

If the fund income is distributed, the net value of the fund share will not be lower than the face value.

Therefore, according to the conditions of fund dividends, the total assets held by the fund dividends are unchanged for investors, so the fund dividends are neither profitable nor loss for investors, but at least it can show that the dividend-paying funds are running well at present.

Generally speaking, fund dividends are part of fund assets and are not given to investors in vain. Whether the fund will pay dividends also needs to meet certain conditions. The specific dividend time also depends on the decision of the fund company. If investors need to know the dividend distribution method, they can learn about it through the fund prospectus and the chapter "Income and Distribution of the Fund" in the fund contract.