This chapter explains the process mutual funds use to distribute earnings to shareholders.
Dividend Concepts
Periodic Dividend Funds
Daily Dividend Funds
Money Market Funds
Capital Gains
Reinvestment
Impact on NAV
· dividends paid to the portfolio by stocks held in the portfolio, andinterest paid to the portfolio by bonds held in the portfolio
· daily
· monthly
· quarterly
· semi-annualannual.
Dividends are normally considered “ordinary income”, and taxed at the shareholder’s regular income tax rate.
· Equity funds (also called periodic funds, or equities)
· Daily dividend funds (also known as daily accrual funds, income funds, bond funds, or dailies)Money Market funds.