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different ways an investor can realize a return on a mutual fund investment? can you please...

different ways an investor can realize a return on a mutual fund investment? can you please explain deeply? i cant find much information online :)

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Expert Solution

An investor who is investing into Mutual Funds can realise his return on mutual fund in different ways-

A. He can realise his return in form of dividend which are paid by the mutual fund as Mutual fund are also distributing the dividend to these fundholders at regular intervals and it is like distribution of profits back to the fundholders.

B. Mutual fund companies are also distributing the capital gains to their fund holders because mutual fund companies when they will be selling their assets will be trying to provide the benefits that to be fund holders in form of distribution of the capital gains.

C. Mutual fund holders can also sell their units in order to gain through capital appreciation.when there will be a capital appreciation upon investment in mutual fund then it can be realised through liquidation of a stake in the market.

D. Mutual fund holders can also transfer their stake to another individual and it will be helping in realising bi gains by transferring the stake. .

jeff jeffy answered 1 year ago
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