Fund dividend means that the fund distributes part of the income to fund investors in cash, which is originally a part of the net value of the fund unit. Talking about people is to let part of the income fall into the bag, give it to everyone, and transfer the money from the fund to your hands.
When the fund pays dividends, the net value of the unit will drop sharply, and some parents will be shocked and think that they are losing money. In fact, this part of the fund income has been distributed to everyone. If the net value of the fund is less, your cash or share will increase, that is, your total assets will not increase or decrease because of dividends.
2. Why pay dividends?
There are two reasons for dividends: on the one hand, the fund contract stipulates that dividends must be paid if the fund income reaches a standard; On the other hand, the dividend is regarded as a hedge to reduce the fund position and ensure that part of the current income can be pocketed in time.
3. What's the use of dividends to me?
For everyone, dividends are equal to giving you a chance to choose again. You can choose "cash dividend" to settle down, or you can choose "dividend reinvestment" in buy buy to continue your purchase, and you can also save the purchase cost.
4. Is "cash dividend" better or "dividend reinvestment"?
There are generally two ways for fund dividends: one is cash dividends and direct payment, which is in the traditional sense. The second is dividend reinvestment, which converts the dividend money into the share of continuing investment funds, without any handling fee and no minimum subscription limit.
If you are not in urgent need of cash and have confidence in the fund, it is generally recommended to choose dividend reinvestment. However, it should be noted that this part of the share of dividends reinvested is to start calculating the holding time again, and the handling fee will be waived if it is held for 30 days.
No matter whether it is cash dividend or dividend reinvestment, there is no charge at first. There is no redemption fee for cash dividends and no subscription fee for dividend reinvestment. At present, fund dividends do not charge personal income tax, which can be regarded as a reasonable tax avoidance method.
5. Is a fund with more dividends a good fund?
Listed companies rarely pay dividends in the stock market. It can't be said that the company is not well run, but it can't be wrong to say that the company is stingy. By analogy, the fund circle is similar.
Generally speaking, funds that can continue to pay dividends usually have good and stable performance and are confident enough to show their strength in the future.
6. What are the important days for dividends?
Equity registration date: when distributing fund dividends, it is necessary to agree on a fixed date to register and count the list of holders participating in dividends and the number of dividends. The agreed registration date of fund shares with dividend rights is called the equity registration date. Subscription funds in date of record and beyond do not enjoy the bonus of the fund.
Ex-dividend date: Ex-dividend date refers to the date when dividends are deducted from fund assets. The net value of fund shares on ex-dividend day will be deducted from the dividend amount of each fund, so the net value of fund shares on that day will generally decrease compared with the previous day.
Bonus payment date: refers to the date when investors pay dividends.