Monthly distribution fund

A fund that pays out cash every month

In detail

A set amount arrives each month, which feels like income. In months the fund did not earn it, the payment comes out of the capital and the unit price falls. What you receive and what you have gained are not the same thing.

Example

Paying $100 a month can take the unit price from $10,000 down to $9,000.

Related terms

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For learning, not investment advice. Decisions are your own.

StockFit · TrueNorthLabs Inc.