From: Fund China

1, select Fund dividends is the more favored funds worth more?

Usually, only the funds to meet the contract requirements dividends prerequisite conditions, the Fund will consider dividends. If dividends are too frequent, and lead to fund operations into the short wave band, which lost professional financial advantages, greatly increased investment risk; and the Fund frequent access to the market, will increase the stamp duty and commission These transaction costs ultimately borne by investors.

Fund dividends amount of the contract depends on the investment style. Medium and long-term investment style of funds, in selecting stocks with a focus on growth in the company, premium for their shares may take a longer time to manifest, such funds are not suitable for regular dividends.

Therefore, we recommend you not to dividends as the sole criteria for selection, after all, a fast-changing market and the Fund have different styles, Selection will depend on whether the fund can achieve long-term, stable investment returns.

2, bought the default fund cash dividends, which means dividends characteristics?

Cash dividends will be way in the form of a cash dividend directly into your financial accounts, appropriate hedging and cost-saving way of cash dividends greatest characteristics.

Demand cash for the investors to choose cash dividends. For instance, you have a monthly repayment pressure, or the Fund’s investment income account for your high proportion of the total expenditure. Also, if you judge the short term investment risk, the market is facing sharp decline may temporarily opt for the cash dividends, avoid high state of the net-too low share of the dividend fund.

Again, in accordance with the relevant provisions of the cash dividend will be included in your cash account funds is tax-free. This provides a reasonable tax avoidance, while allowing you easy to save transaction costs.

Copyright Fund China 2009.

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