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What does dividend distribution mean?

What does dividend distribution mean?

The meaning of fund dividend distribution is to turn some fund profits into cash and send them to fund investors. This part of the funds is originally the net value of some fund units. The funds that everyone usually refers to generally refer to stock investment funds. However, the more fund dividends are not, the better. Investors should choose the appropriate dividend method. Because when considering fund performance, the increase in the net value of the fund is generally the highest standard, and dividends are just payment for the increase in the net value of the fund.

How to distribute fund dividends

For open-end funds, if investors want to get income, the company can still get cash dividends after redeeming part of the fund; therefore, whether it can be obtained Fund dividends and the amount of dividends will not have a significant impact on investors' investment returns. However, if the fund suffers a loss during the current period, no profit distribution will be carried out. Some funds have made commitments in the prospectus on the distribution of fund profits before recruitment, such as the minimum and maximum number of distributions in a year, or dividends can be carried out when the distributable profits reach a certain level, etc.