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Subject:  Re: Newbie Advice & IRA Dividends/Gains Question Date:  3/29/2002  4:34 PM
Author:  Mark0Young Number:  34068 of 80228

regarding the IRA mutuals:

1. are the dividends/gains generally reinvested? While the MPGFX site indicates that they are, the DODGX site didn't even mention it. Unless I'm missing something, why would you ever want to receive the dividends/gains rather then reinvest them... particularly with a Roth.

Many (most?) open-ended mutual funds will default to reinvesting all distributions (both dividends and realized capital gains)--the fund manager, after all, generally wants to maximize the amount of money under the manager's management (usually their compensation is tied to the money under management), so it is in their best interest to make it as easy as possible to have all distributions reinvested.

The Prospectus for the Dodge & Cox Stock fund (DODGX) is on the web( and it looks