Dividends in the fund are actually that the fund manager thinks that the assets of this fund are too large to pay dividends. Fund dividends are more about reducing the size of the entire fund. The larger the scale of the fund, it will have a negative impact on this fund. When the fund manager is operating, there will be a feeling that the money is useless, so the fund manager will choose to limit the purchase and stop buying. In fact, the fund dividend is not the income of the fund, it is still a part of our principal. Of course, you can also choose the fund to pay dividends and then invest in this fund, or you can directly put this part of the dividends into your pocket, depending on how you choose.
Therefore, the income source of the fund is the income brought by the fixed increase. If the fund returns well, then the income will be relatively high. In the event of a stock market crash or a retracement, the fund's income will be relatively poor. Buying funds has been in a state of loss for a long time, which is also a feature of A shares. Being in this state of shock or decline for a long time will only usher in an outbreak in the short term. Then what we need to do is to grasp where this short-term point is, so the best way is to make a long-term fixed investment, so as not to miss every wave of market, the income will become more stable and the risk will become lower. This is the source of income for the fund.