Will fund dividends affect the rate of return?
No, fund dividend means that the fund will return some profits to investors in the form of cash or dividend reinvestment. Simply put, dividends only put money from one pocket to another, which will neither improve the income nor affect the income.
For example, if a citizen has a fund with 1 1,000 copies and the current net value is 1 yuan, then the total value of the citizen's fund is 1 1,000 yuan. If the fund wants to pay dividends, and each dividend goes to 0.2 yuan, then the dividend amount is 200 yuan, and the net value of the fund after dividends is 0.8 yuan. Therefore, the dividend is to split the original fund value of 1 000 yuan into the dividend of 800 yuan's fund and 200 yuan's, and Jimin has not gained any additional income.
Why pay dividends?
For fund managers, after the fund pays dividends, the asset size of the fund will be reduced, which is convenient for better position adjustment and fund management. For investors, no matter whether it is cash dividend or dividend reinvestment, there is no need for redemption fee and subscription fee.
When choosing fund products, we don't need to refer to the scale or frequency of fund dividends too much. The key is to see whether the cumulative net value of products grows steadily.