capital gains distribution


A payment to investment company shareholders of profits realized on the sale of its securities. Equity funds usually pay out these amounts once a year, typically in December, while bond funds often include capital gains in their monthly distributions. Many funds allow automatic reinvestment of capital gains, instead of distribution. In general, capital gains distributions reduce the value of the fund. Also, these distributions are taxable income for the recipient, so funds that allow reinvestment instead of distribution are sometimes preferred by investors in high tax brackets.

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You should try to make sure that you are getting the most out of any capital gains distribution that you take on.

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The capital gains distribution that the investment group was receiving would allow them to invest money in blood-free diamond mines.

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I love to watch my ROTH IRA at the end of the year and see my shares increase when the capital gains distributions come in as I have them set up to reinvest.

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