ns distributions can be received as cash or they can be reinvested in the fund. Either way, the distribution is taxable. It is useful to note that distributions from mutual funds are usually made at year end. Dividend distributions by the fund, no matter the particular date of distribution, are a second allied way of incurring taxable income. Capital gains arising from the sale or exchange of shares within a mutual fund is the third way of profiting and risking taxes (Greenbaum, 1995, 123).
Investors in mutual funds must consider that they have purchased more than an opportunity to make more money. The particular use of mutual funds expands the meaning of investment beyond the usual earn and tax mode that most of us are familiar with. Investing in mutual funds allows the potential to earn more money pe
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