A: If you hold it for a long time, then I suggest you reinvest in dividends, because there is no subscription fee for dividends.
Since the fixed investment of the fund accumulates wealth by compound interest, the shorter the compound interest period, the better, which means that the shorter the dividend period, the better the compound interest effect.
Therefore, when buying a fund and choosing a fund, should you choose a fund with more dividends and more times?
A: The longer the effect of compound interest, the better. The formula is as follows: A*( 1+x%)N, where n is your fixed investment amount, x is your future rate of return, and n is the investment cycle time. That is, the greater the value of n, the more obvious your compound interest effect will be.
Still asking financial experts for advice? The more frequent dividends are not necessarily good, because the investment target of dividend funds is 95% of the stock ceiling and the cash is not less than 5%. If a large proportion of dividends are paid, then the fund company will redeem its shares. If this stock keeps making profits and redeeming because of dividends, then investors will lose money. So maybe not as often as possible. This depends on the profitability of the fund, not the frequency of dividends.