How does the money fund pay dividends?

Fund dividend means that the fund distributes a part of the expected annualized expected income to investors in cash, which was originally a part of the net value of the fund unit. According to the Interim Measures for the Administration of Securities Investment Funds, fund management companies must allocate at least 90% of the expected annualized expected return of funds in cash at least once a year.

Upward posture:

There are two main ways of fund dividend: one is cash dividend, and the other is dividend reinvestment.

According to the Measures for the Operation and Management of Securities Investment Funds, if the investor does not specify the dividend distribution method, the expected annualized expected income distribution method defaults to cash dividend. Investors can go to the institution where you bought the fund to modify the dividend distribution method before date of record.

For example, if you hold 6,543,800+shares of a fund, you will get a cash dividend of 1 10,000 yuan for each share of the fund: if you choose the cash dividend method, then the basic people will get a cash dividend of 1 10,000 yuan; Assuming that dividends are reinvested and the net value of fund shares on the dividend base date is RMB yuan, then the basic people can be divided into 5000 yuan/share = 4000 fund shares, and the fund shares become 10000. Due to dividends, the total assets of the fund decreased, and the net value of the fund decreased after dividends.

The default dividend method of open-end funds is cash dividend, but the basic people can change it independently according to the individual's specific situation and the changes in the fund market.

When changing the dividend distribution method, the consignment customer needs to bring his ID card and securities card to the consignment agency that originally purchased the fund for modification; Direct selling customers can modify themselves through the fund company's website or telephone trading system.

How does the money fund pay dividends?

Money funds usually pay dividends on a monthly basis and reinvest them. If you redeem it all, you usually don't have to wait for the next dividend, and you will directly get the unpaid expected annualized expected income and all your shares.

The monetary fund calculates the expected annualized expected income every day and carries it over to the corresponding share at the end of the month. Because there is no handling fee for the subscription/redemption of money funds, there is no difference between cash and reinvestment.