2007-12-08 04:46:10 · 3 answers · asked by Tim 1 in Business & Finance ➔ Investing
It's dividend season. found the dividend data for the first fund listed:
Distribution 12/07/2007
Qualified Dividend .34
Long Term Cap Gain $6.40
Total Dist $6.74
which would take $6.74 off the price. The rest of the difference is just the days performance. Just a speculation that happened to the second fund also.
2007-12-08 05:00:28 · answer #1 · answered by jon b 4 · 0⤊ 0⤋
In December many, many funds post your dividends and gains for the year...( in the form of more shares)...your portfolio will be updated shortly ( 2 days at most ) and it will show that you have more shares...but at a lower price. Usually you end up with the same balance or slightly ahead.; but in the long run you are better off because now when the price goes up 47 cents in one day...you have more shares, so you earn more that day than you would have last week.
You'll get used to it...if you're keeping a portfolio on another site, you just have to adjust the number of shares...( and actually the " cost" because these shares cost yo " zero"... take your total cost , and divide it by your new number of shares...and you have a new number to enter under " cost", or " purchase price". ( This is all just the way that " buy and hold" pays off)
If you work with just a Fidelity site, it will all be done for you...and if you go to " research" and the " mutual funds"..you can see which funds are paying " distributions" this month and exactly how much per share you will be getting. ( I believe the link is on the right...says something about " fund distributions".
2007-12-08 13:11:48 · answer #2 · answered by jebediabartlett 6 · 1⤊ 0⤋
Never invest in anything you don't understand.
The previous answers on "dividends" are correct. You'll have more shares... at a lower price. Net difference = $0.00
If not in an IRA (401k, ROTH, Keogh.. etc..)... it will be taxable.
2007-12-08 23:28:18 · answer #3 · answered by Common Sense 7 · 0⤊ 0⤋