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.
Related information about capital gains distribution:
- Capital Gains Distribution Definition | Investopedia
Distributions that are paid to a mutual fund's shareholders out of the capital gains of the company's investment portfolio.
- Capital gains distribution - Wiki | The Motley Fool
A capital gains distribution is the method mutual funds use to pay their net gains to shareholders. Most mutual fund holders reinvest their distributions to accrue ...
- What is capital gains distribution? definition and meaning
Definition of capital gains distribution: A payment to investment company shareholders of profits realized on the sale of its securities. Equity funds usually pay out ...
- Mutual Fund Distributions - Mutual Fund Capital Gains Distributions
The capital gains distribution is taxable to the fund shareholders unless the fund is ... While it might seem like a positive to receive a capital gains distribution, ...
- When Are Capital Gains Distributions a Bad Thing? - The Smarter ...
Nov 15, 2011 ... If the fund has net capital gains to distribute, you'll get a capital gains distribution as a shareholder of record and face a tax hit. And if you use ...
- American Funds - The effect of a capital gain distribution on a fund's ...
If your fund is down when the market is up, the fund might have just paid a capital gain. What is a capital gain? When you sell a capital asset — such as a stock ...
- Capital gains distribution - Bogleheads
Because they receive a capital gains distribution, they immediately receive taxable income and face a mutual fund NAV that is reduced from the distribution.
- Capital Gains Distribution - Financial Dictionary - The Free Dictionary
A distribution to the shareholders of a mutual fund out of profits from selling stocks or bonds, that is subject to capital gains taxes for the shareholders.