Different investment targets of funds can be divided into different types of funds. For example, those funds that specialize in investing in bonds are called bond funds. Because the bonds invested are highly secure, the security of bond funds is relatively high, but they are not guaranteed. What many people expect most after buying funds is dividends.

how often do bond funds pay dividends?

There is no definite time limit for dividends, because it is common that no matter what type of funds, they will pay dividends only after certain conditions are met. Some funds pay dividends several times a year, while others have not paid dividends for several years.

The bond fund must meet the following dividend conditions first:

1 The fund can be distributed only after the current year's income makes up for the previous year's losses;

2 The net unit value after fund income distribution cannot be lower than the face value;

3 if the fund investment has a net loss in the current period, it cannot be distributed.

under the premise of meeting the above dividend conditions, you can look at the fund prospectus or how often it is generally stipulated in the fund contract. As long as the fund meets the conditions for dividends, most fund companies will implement dividends, because fund dividends are good for the fund itself and the fund company.

are fund dividends additional assets?

no, whether the fund pays dividends or not and the number of dividends will not have a significant impact on the investment income. In essence, the fund dividend distributes a part of the fund income to the holders in advance by cash dividend or dividend reinvestment. This part of the income is originally a part of the net value of the fund unit, and the fund assets are unchanged before and after the dividend.

In fact, for open-end funds, if investors want to realize income, they can also achieve the effect of cash dividend by redeeming some fund units. Closed-end funds are generally the default cash dividend method.