What is Foolsaurus?   How Often Should Your Mutual Funds
Distribute?  Original post by Geri Terzo of Demand Media
Although mutual funds pass on capital gains, these investment
vehicles earn money from fees charged to investors.  A mutual
fund firm typically makes distributions to shareholders once or
twice each year. The more frequency in which a mutual fund makes
distributions, the higher the administrative costs for that
firm. Those expenses surround tasks including calculating and
distributing payments. Nonetheless, there are tax advantages for
a mutual fund firm in relinquishing income to investors.
Mutual fund distributions represent the profits and dividends
earned over a period of time. More specifically, these are
capital gains from investments in the financial markets when
profits exceed losses. Distributions also include cash or stock
dividend payments made to the mutual fund firm by issuing
corporations and government entities to which the fund has
exposure. Issuing entities could distribute di