What does fund dividends mean? What does fund dividends mean

Dividends refer to the distribution of a portion of the income to investors in cash, which is originally part of the net value of the unit. Choice of dividend method: There are two ways to choose from dividends: cash dividends and dividend reinvestment.

The company takes out a portion of the earnings and distributes them to investors in cash. Only if you make money can you pay dividends, and after dividends, the net value of the share cannot be lower than the face value (generally 1 yuan).

**Reasons for dividends: The reasons for dividends are roughly the following two aspects. a.In order to reduce the ** unit net value.

There are many people who suffer from "fear of high net worth" and dare not buy high net worth **. And when the ** dividend, the net value of the unit decreases, which looks cheaper, attracting more investors to come and buy.

b.Dividends are also an effective investment strategy. Dividends are equivalent to allowing the people to redeem part of their assets, so as to achieve the purpose of reducing their positions. This operation works best at the top of the bull market and does not require a redemption fee.

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Dividends refer to the fact that the investment company distributes a part of the income to other investors, and there are two types of dividends: dividend reinvestment and cash dividends. Dividend reinvestment refers to the investor's dividends being used to invest in the **, and the investor can get the **share. Cash dividends are paid directly to investors.

**Generally, the following conditions must be met in order to pay dividends:

1. There is no net loss;

2. **The net value after dividends cannot be lower than the face value;

3. **There is no loss at present.

What does dividend mean.

Dividends mean that a portion of the proceeds is distributed to investors in cash.

**Firm. Sometimes it is emphasized that there are many dividends, and I think there are mainly the following reasons:

1.Dividends are traditional. If the company does not pay dividends, it may not be recognized by novice investors. Some newcomers believe that the dividends are earned by themselves, so it can be considered that the company's emphasis on dividends is to cater to immature investors.

2.Dividends will make a net worth.

Decline. Many novice investors believe that the high net deferred auction value will be risky, and the low net worth will have more space, and the higher the net worth, the lower the share purchased. Investors with investment experience generally know the level of net worth and the time of establishment, and the manager.

The management ability is closely related, and sometimes it is the ** with high net worth that is good**.

3.Some investors believe that the dividend indicates that the performance is good. According to regulatory requirements, dividends must meet three conditions: first, the income of the current year can only be distributed after making up for the losses of previous years; The second is the net value of the unit after the distribution of income.

It cannot be lower than the face value; The third is the current investment period, if there is a net loss, it cannot be distributed. Therefore, many investors think that only those who have made money can pay dividends.

But in fact, even if there is a loss, some ** may actively pay dividends. Why is that? The core problem is that people misunderstand the meaning of losses.

The profit and loss understood by investors is the book profit and loss of **, which is the rise and fall of net value. However, in the context of regulatory policy, profits can be distributed.

is including the undistributed profit that has been rolled over.

If there is undistributed profits, plus the income realized in the current period, dividends can be distributed, that is to say, dividends do not mean that the performance is good.

A dividend is an adjustment made by a company to reduce its holdings. There are requirements for different ** and bond holding ratios, such as **type**.

The ** open interest cannot be less than 80%. It's okay to put it in a bull market, but once it encounters a bear market, more than 80%** means** is trapped at a high level, how to reasonably reduce ** in this case? That is, to reduce the denominator, so that the total amount of funds of ** is reduced, the proportion of positions remains unchanged, and the amount of positions is reduced in disguise.

And the way to reduce the total amount of funds is to pay dividends, sell **, and return the money to investors.

To sum up, there are multiple reasons for dividends, which may be to cater to novice investors to do marketing, or it may be to reduce **, so that investors' stupidity can be safe. Is dividend good or bad for investors? From the fourth point, we can understand that when the company pays dividends, the company needs to sell and get back the cash, which in itself may affect the investment income.

If the investor chooses to reinvest the dividend, it means that the manager may have to buy back the dividend after selling the dividend to everyone, which increases the transaction cost.

**Dividends sometimes have the effect of avoiding some risks. However, when the investor gets the first cash dividend, the cash dividend will be distributed to the investor's account, and the investor's original share remains unchanged. However, because the cash dividend money is part of the net value of the unit.

Therefore, the net value of the ** unit of the cash dividend will be lower. Therefore, from the perspective of the investor's actual assets, the investor's ** assets will not change.

1. Cash dividends refer to a dividend method in which the company distributes a part of the income to investors in cash.

Dividend reinvestment means that when a cash dividend is paid, the holder uses the cash obtained from the dividend directly to purchase the dividend and converts the dividend into holding units. For ** managers, there is no cash outflow from dividend reinvestment, so dividend reinvestment is usually free of subscription fees.

**If dividends are reinvested, the increase in shares is calculated based on the net value on the day of dividends. Dividends Equity = Shares Increased.

Dividend method refers to a way of return on investment in which the company distributes a part of the income to investors. The cash dividend method is a dividend method in which the company distributes a part of the company's income to investors in cash; The dividend reinvestment method is a way for investors to reinvest the cash dividends obtained from dividends to obtain a share.

If it is a short-term investment, it is recommended to pay cash dividends, and if it is a long-term regular investment, it is recommended to switch dividends.

2. After the dividend, if you choose to pay cash dividends, the cash will be paid into the account of buying **, as long as it arrives, you can go to the bank to take it out.

The money is transferred to the wealth management account, and there is an option in the wealth management account to transfer the account margin (that is, the money in the wealth management account) to the current account.

What is a dividend.

Some people have a misunderstanding about dividends, thinking that dividends are distributed to investors by ** companies with other money, but in fact they are not. In fact, the money used for dividends is itself part of the ** asset. Dividends are a part of the income and distributed to investors in cash.

Of course, the premise is that you can only pay dividends when you make money, and after dividends, the net value of your shares cannot be lower than the face value (generally 1 yuan).

Since the share does not change, the net unit value will decrease after the dividend.

Why do you want to pay dividends?

On the one hand, it is to reduce the net value of ** unit. Because many people suffer from "fear of heights in net worth", they dare not buy high-net-worth **, **after dividends, **net worth decreases, and it looks cheaper. But in fact, buying ** looks at the growth rate, not the absolute value of the net value of the share, and the net value of the share has no impact on the investment income of the **.

On the other hand, dividends are also an effective investment strategy. Dividends are equivalent to allowing the people to redeem part of their assets, so as to achieve the purpose of reducing their positions. This operation works best at the top of the bull market.

Ways to distribute dividends.

For dividends, the company gives investors two options, one is cash dividends, that is, the dividends are directly distributed to the bank account at the time of subscription, and no handling fee is charged; The other is dividend reinvestment, that is, the custodian directly counts the cash dividend as a share into the account. In general, the default is cash dividends, and if you want to choose the dividend reinvestment dividend method, you need to modify the dividend method before the equity registration date.

The difference between the two types of dividends.

First of all, the fees are different, after choosing cash dividends, you need to pay a subscription fee for reinvestment, while dividend reinvestment generally does not charge a subscription fee; Secondly, the risk is different, cash dividends mean that the pocket is safe, and the choice of dividend reinvestment needs to bear the risk of loss.

Cash dividends refer to a dividend method in which the company distributes a part of the company's earnings to investors in cash.

And the reason why the company chooses dividends is because it is a matter of dividends. That is to say, if a ** has not paid dividends, the net value of ** may continue to grow, ** will be higher and higher, on the contrary, with the help of dividends, the net value of ** unit can be reduced, which may attract some investors with "fear of heights of net worth".

Another reason is that only companies with guaranteed performance and sufficient net profit can continue to pay dividends, so dividends have become a manifestation of the company's strength.

Dividends refer to the distribution of a part of the income to investors in the form of cash, which is originally part of the net value of the unit. According to the provisions of the Interim Measures for the Administration of Investment, the management company must distribute at least 90% of the net income in the form of cash, and at least once a year.

Dividends are not always better, and investors should choose a dividend method that suits their needs. Dividends are not the biggest criterion for measuring performance, the biggest criterion for measuring performance is the growth of net worth, and dividends are just the realization of net worth growth.

For open-ended**, if investors want to realize income, they can also achieve the effect of cash dividends by redeeming a part of ** units; Therefore, whether or not to pay dividends and the number of dividends will not have a significant impact on investors' investment returns. As for closed-ended, since the unit is often not the same as the net value, it is sometimes not feasible to achieve a profit by selling the unit. In this case, dividends become the only reliable way to achieve returns.

That is, after you buy **, it is equivalent to entering my shares, and the income of your shares will be distributed to you every year.

Dividends are this**make money,**The company liquidates according to the amount of money, and then each share will share a certain amount of money, to put it bluntly, it is like two people partnering to do business, at the end of the year after liquidation, it is found that there is a surplus in addition to the capital, then the remaining money must be shared between you and your partner, this process is the process of dividends, but the dividend is based on the distribution of profits to all the people who hold this **.

The basic concept of dividendsDividends refer to a part of the income, distributed to investors in cash, this part of the income is originally a part of the net value of the unit, in accordance with the provisions of the interim measures for the management of investment, the management company must distribute at least 90% of the net income in cash, and at least once a year the interim measures have been abolished, how to distribute the contract terms shall prevail, dividends are not the more the better, investors should choose the dividend method that suits their needs,** Dividends are not the biggest criterion for measuring performance, the biggest criterion for measuring performance is the growth of net worth, and dividends are just the realization of net worth growth.

Open**If you want to realize the income, through the redemption of a part of the units, you can also achieve the effect of cash dividends, therefore, whether to pay dividends or not, and the number of dividends, will not have a significant impact on investors' investment income.

The basic way to pay dividendsThe main way, there are two main ways to dividends, one is cash dividends, one is dividends in investment, according to the operation and management measures of **investment**, if the investor does not specify the dividend method, the default income distribution method is cash dividends, investors can modify the dividend method at the institution that purchased ** last year before the equity registration date.

Dividends refer to the distribution of a part of the income to investors in the form of cash or reinvestment by the reinvestment of the imitators, which is part of the original net value of the unit, which is essentially the holder's own money. The main reference here is investment.

At present, there are two main ways to pay dividends in China, one is cash dividends, and the other is dividend reinvestment.

In accordance with the relevant regulations, when the open-ended ** meets the following three conditions, ** will pay dividends in the current year. The first is that the distribution can only be made after the current year is made up for the losses of the previous year, and the second is that the net value of the unit is higher than the face value after the income distribution, and the third is that there is no net false loss of bridge fiber in the current period of investment. If the prospectus does not specify the specific dividend conditions, then the timing and frequency of dividends are completely determined by the ** company.

What does dividend mean? "Dividends" refers to the return of a part of the profits to the investor's account in the form of cash or dividend reinvestment, which is actually part of the net value of the unit, so after the dividend, the net value will generally decline.

Tips] 1How much the product dividends are, how much the net value of the product will be reduced accordingly; 2.Product dividends will not increase additional income, but only pocket a part of the product income and distribute it to investors; 3.

Product dividends are not the biggest criterion for measuring product performance, the biggest criterion for measuring product performance growth is the growth of product net value, and dividends are just one of the forms of cash after the growth of product net value.

**Dividend distribution methods include "cash dividend" and "dividend reinvestment". Cash Dividends: Non-monetary** default method, dividends will be transferred directly to the current account; Dividend reinvestment: directly increase the **share, and the general currency** will default to this method.