Compared with other investment methods, the biggest advantage of buying a fund is that it pays dividends. Under normal circumstances, the foundation in a certain period of time to distribute cash dividends, then how is the fund dividend? How often does the fund dividend? The following will take you to understand.
How is the fund that invests bonus to return a responsibility
Fund dividend refers to the fund will be part of the income in cash to fund investors, this part of the income is a part of the net value of the fund unit. People usually say that the fund mainly refers to the securities investment fund.
Fund dividends include 'cash dividends' and' dividend reinvestment '. Cash dividend: the default method of non monetary fund, the dividend will be directly transferred to the current account; dividend reinvestment: directly increase the share of the fund, the default method of general monetary fund. Fund dividends generally default to cash dividends, dividend method can be modified, the specific announcement of the fund company shall prevail.
How often do you buy fund dividends?
According to the Interim Measures for the administration of securities investment funds, the fund shall pay dividends at least once a year,. Generally speaking, fund dividends need to meet the following principles: 1. The current income of the fund can be distributed only after making up for the losses of the previous period; 2. The net value of each fund share after the income distribution of the fund can not be lower than the face value; 3. If the fund has losses in the current period, the income distribution will not be carried out.
Finally, many investors will worry that after the fund dividends, it will affect the later earnings. In fact, the factors that affect the growth of the fund mainly depend on its fund performance, whether it pays dividends and how many times it pays dividends. There is no direct connection.