By reinvesting capital gains, you can increase the number of shares in your account. While a fund may not know the exact date or amount of an annual income or capital gains distribution far in advance, they do usually know the approximate amount and date. If you own a Fund on the record date you will receive the distribution. The payable date is the date that the distribution is paid out to the shareholders. The ex dividend date is the date that the Fund's price is reduced to reflect the amount of the dividend.
Most distributions occur near year end.
Therefore, if you are planning a substantial investment in a fund near year end, you may wish to contact the fund group and inquire about potential distributions. All rights reserved - Privacy Policy .