Series 6: 5.1.7.3. Timing Mutual Fund Purchases

Taken from our Series 6 Online Guide

5.1.7.3. Timing Mutual Fund Purchases

When a fund pays a distribution, the NAV per share decreases by the amount of the distribution. After the distribution, the value of the fund stays the same, but investors in the fund are required to pay taxes on the distributed portion. Many funds pay distributions annually. If an investor purchases

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