Simply put, the reinvestment of fund dividends means that when the fund pays dividends, investors will buy all the money allocated to the fund, and the handling fee is free. So when will the fund share bought by dividend reinvestment be confirmed?

When will the share of fund dividend reinvestment be confirmed?

The reinvested share of fund dividends will be confirmed on the next trading day. If there are some special reasons, it may be confirmed in three trading days, and most of them will be confirmed in the next trading day. For example, if you choose to reinvest your dividend on Monday, your dividend reinvestment share will be confirmed on Tuesday, and you can generate income after confirmation.

The advantage of reinvesting fund dividends is that it can save the handling fee for repurchasing funds. When the market is good or the fund is in an upward trend, investors can choose to reinvest the dividend. By increasing the share of investors, the income can be increased and the compound interest effect can be produced.

Dividend reinvestment means that when the fund pays the dividend in cash, the fund holder directly purchases the fund with the cash obtained from the dividend and turns the dividend into the holding fund unit. For fund managers, there is no cash outflow from dividend reinvestment, so dividend reinvestment usually does not charge subscription fees.

When the fund pays dividends, investors can choose whether to pay dividends in cash or reinvest the dividends. If you plan to sell the fund or take out some money, you will choose cash dividends. If you plan to continue to hold the fund and look good for a long time, you will choose to reinvest in dividends.