Funds will also pay dividends, and there are often two forms of fund dividends, namely cash dividends and dividend reinvestment. Dividends from the fund are to take out part of the fund's income and distribute it to investors. In essence, it is to use the assets of the fund to pay dividends. So when investors invest in the fund, is it better to buy it after the fund pays dividends? Let's get to know each other.

Will it be better to buy after the fund pays dividends?

It is more appropriate for the fund to buy after dividends. After the fund pays dividends, the net value of the fund unit tends to decline. At this time, buying funds can hold funds with reduced investment costs. In addition, buying a fund investment when the net value of the fund is low can also bring good returns to investors if the net value of the follow-up fund rises. If you buy a fund after the fund pays dividends, there will be more room for the appreciation of the fund and more room for profit development.

However, if the fund pays dividends, the investment and financial management environment will be bad. Often after dividends, the net value of fund units will not rise back. In this case, investors' purchase of the fund after dividends has little impact and may also cause losses.

Generally speaking, the timing of buying a fund is also very important. Buying a fund after paying dividends means buying it when the net value of the fund is relatively low. On the one hand, it can reduce the position of the fund, on the other hand, if the net value of the fund rises, investors can get higher returns. Of course, the development potential of the fund is also very important. If the fund itself is not so good, or the future upward trend is not good, then no matter when investors buy it, it is of little significance.