What is the fund dividends? Fund Dividend Fund Dividend kind of sense of what it means fund dividend
First, what is the dividend fund
1, the fund dividend means: the fund company will fund a portion of the proceeds distributed to investors in the way of an investment return.
2, in fact, does not make the fund dividend increase in assets holders, only the part of the Fund into a dividend.
3, for example:
Suppose you hold hands now 1000 price of $ 2 a fund holding is worth 2,000 yuan. One day, the Fund issued notice to say dividends per share of the fund dividend of 0.2 yuan.
So, you will receive the dividend fund: 0.2 × 1000 = 200 Yuan
The net value of the fund after the dividend is: 2-0.2 = 1.8 yuan
After holding fund dividend amount is 1.8 × 1000 = 1800 Yuan
Before dividends, you hold 2,000 yuan worth of funds; after dividends, you hold 200 yuan 1800 yuan worth of funds and dividends . So, it does not make dividend increase or decrease your assets.
Some investors in the choice of fund, when the fund will determine whether dividends as the fund is good or bad standard.
As can be seen from the above analysis, this approach is not scientific, because the fund's dividend itself does not bring in revenue.
Second, fund dividend of significance
1, we assume that a fund has been no dividends, so only the net value of the fund would have been an increase , the price of the fund will be getting higher and higher, this might lead to some investors can not buy the fund.
2, however, through continuous dividends, it can reduce the net value of the fund units . Such investors will not feel the price of your fund will attract more people to buy.
3 In addition, fund managers feel that when no suitable investment targets , through dividends may also be used to "force" the Christian Democratic redeem part of the fund, so as to achieve the purpose to lighten up , but this is rare.
4, since that net dividend will reduce the fund is not better then buying it at a later fund dividends?
of course not. Dividend funds do not change your assets, nor change the quality of the fund. Therefore, the Fund whether dividends should not be a consideration in our decision whether or not to buy.
Therefore, we in the investment fund, in fact, does not need to be too concerned about the dividends of the Fund.
Third, the type of fund dividends
1, two ways to fund dividends - cash dividend and bonus dividend .
2, cash dividends: the dividend means a direct hit on your account money, the equivalent of fee-free redemption . (Direct cash)
3, bonus dividends: dividends will be automatically reinvested the money in the fund, this investment is not charge subscription fees of. (Continue to invest)
4, these two dividend payment you can always set.
5, recommended that: in a bull market , it is best to choose a cash dividend , so you can only do part of the profit, can be secured ; but in a bear market , the best choice for the bonus dividend , so you can buy more fund shares, also You can save subscription fee .
Fourth, determine whether a fund dividends
1 way is to look at the net value of the fund:
- NAV = cumulative net, never dividends.
- NAV <cumulative net, there have been dividends.
- NAV> cumulative net, not seen.
2, the reference picture is as follows:
3, summarize, if wrong, please correct me, thank you!
Reference: https://mp.weixin.qq.com/s/DjN1zuvu7Jfphbl0Dq6S9w
