There are two main ways of fund dividend: one is cash dividend, and the other is dividend reinvestment. The dividend reinvestment method is to buy back the fund share directly with the expected annualized expected return of cash, which is equivalent to the listed company distributing the expected annualized expected return in the form of stock dividend. But in fact, the expected annualized expected returns of these two dividend methods are exactly the same.

Open-end funds do not necessarily pay dividends once a year. In fact, the dividends of open-end funds can only be distributed if certain preconditions are met:

1. After selling the profitable stocks, the fund investment obtains the expected annualized expected return;

Second, the expected annualized expected income of the fund in the current year can only be distributed after making up for the losses in the previous year;

3. The net value of each fund share after the expected annualized expected income distribution of the fund cannot be lower than the face value;

4. If there is a net loss in the fund investment year, the expected annualized expected income distribution will not be carried out.

After meeting the above conditions, the dividend depends on the investment strategy of the fund manager. If the fund manager thinks that the stocks held by the fund have room for long-term appreciation, he may not pay dividends. See the fund contract or prospectus for specific dividend terms.