normal.

Fundamentally speaking, fund dividends do not bring us additional income. They just take our money out of our wallets and put it into our pockets. The total assets do not change and have no real impact on us.

And your income will not increase or decrease as a result, but the fund size will decrease and the net value of the fund will also decrease.

The net value of a fund unit is the net asset value of each fund unit, which is equal to the balance of the fund's total assets minus its total liabilities divided by the total number of units issued by the fund.

Subscriptions and redemptions of open-end funds are conducted at this price.

The trading price of closed-end funds is the market price that is known when the buying and selling behavior occurs.

Different from this, the transaction price of fund units of open-end funds depends on the net asset value of the unit fund that is not yet known when the subscription and redemption activities occur (but can be calculated after the market closes on that day and announced on the next trading day).

With the recent sharp decline in stock indexes, the net values ??of these funds have also fallen accordingly.

According to legal regulations, a stock fund must have 60% of its assets invested in stocks, so its stock investment ratio is relatively high, and its probability of falling below the net value is also relatively high, which is normal.

In the recent continuous sharp decline in the stock market, investors have suffered serious losses. Funds, which are the mainstay of institutional investors, have not been immune. The reason for the decline in the net value of fund units is the decline in the stocks, bonds and other investments in which the fund invests.