Cash dividend is the default dividend method. If you haven't modified the dividend method, so be it. Dividends will be paid directly to your associated bank account.

If dividends are reinvested, the dividends will automatically become fund shares, which will increase the share. Number of new shares = dividend amount/dividend daily net value. There is an exception here. Money funds and wealth management funds cannot modify the dividend distribution method. The only way to pay dividends for such funds is to reinvest the dividends.

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Investors have long-term planned investment funds, and dividends are temporarily useless to users. At this time, they can choose to reinvest in dividends. The other is very optimistic about the prospects of the fund, and it is expected that there will be more room for growth. At this time, if you choose dividend reinvestment, you can achieve the investment goal of rolling interest.

Dividend reinvestment can be converted into shares no matter how much money, even if it is only a few dollars. However, this part of the dividend reinvestment can only be purchased according to the net value of the dividend payment date, and the dividend will be calculated according to the date.

Baidu Encyclopedia-Fund Dividends