Why did the net value of the fund plummet after dividends?

Fund dividends are divided into net values, so we will see the net value of funds plummet.

Fund dividends Fund dividends and stock dividends are not the same concept. Fund dividend is an operation to return a part of the net fund value to your account in the form of cash or fund share, which is equivalent to putting the money in your left pocket into your right pocket. Fund dividends have little effect on your investment income.

If you want to buy some more, you can look at the investment direction, investment strategy and fund manager style of this fund according to your investment plan, which is inconsistent with your expectations. The net value of the fund should not be the decisive factor whether you want to invest in the fund or not. )

Extended data:

Fund dividends:

Fund dividend means that the fund distributes part of the income to investors in cash, which is 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 should distribute at least 90% of the net income of funds in cash once a year. The "Interim Measures" have expired, and how to allocate them now is subject to the provisions of the Fund Contract.

Dividends are not as much as possible. Investors should choose a dividend distribution method that suits their own needs. Fund dividend is not the biggest standard to measure fund performance. The biggest criterion to measure the fund's performance is the growth of the fund's net value, and dividends are just the cash for the growth of the fund's net value.

Source: Baidu Encyclopedia-Fund Dividends