How does a fund capital-gains distribution work?
The fund sells a holding, realizes a gain, and pays it out. NAV usually drops by about that amount. A 1099-DIV can show tax even if you never sold.
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How does mutual fund settlement actually work?
T+1 is one business day after the trade date, not after the click. The fund prices at the next NAV. The app can show shares before the official transfer.
How does a mutual fund expense ratio actually work?
The ratio is a percent of average net assets, taken from the fund, not a separate bill. Two similar funds can still post different net returns.
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How does a fund capital-gains distribution work?
The fund sells a holding, realizes a gain, and pays it out. NAV usually drops by about that amount. A 1099-DIV can show tax even if you never sold.
How does mutual fund settlement actually work?
T+1 is one business day after the trade date, not after the click. The fund prices at the next NAV. The app can show shares before the official transfer.
How does a mutual fund expense ratio actually work?
The ratio is a percent of average net assets, taken from the fund, not a separate bill. Two similar funds can still post different net returns.
What is the difference between a money market fund and a high-yield savings account?
A high-yield savings account is an insured bank deposit. A money market fund is SEC-regulated mutual fund shares, not a money-market account.
How does an index fund actually own the stocks in an index?
An index is a list. An index fund is a pooled company that buys some or all of the securities on that list. You own shares of the fund, not the index.