The best way for me to learn something is by example. I found this fund using my Scottrade fund center.

The snapshot thru Scottrade showed Cumulative Distributions of .32 for dividend and 1.04 for Cap Gain. What is a cap gain distribution as opposed to dividend? I didn't see any reference to Cap Gain in the Morningstar snapshot below. Why?

If I had put $100k in this fund on Jan 1, 2005 (assume entry price of $10 share and ignore commission).... and did not re-invest the distributions ... how much $ would I have received and what would my fund balance be at the end of the year?

This fund seems to have been giving high returns for several years. I gather that it is risky but I reckon if it kept it up for a few more and I put a big chunk of change in it I could be set pretty good. I wouldn't put all my eggs in the basket but a substantial amount.

Talk me out of it.


http://quicktake.morningstar.com/Fund/Snapshot.asp?Country=USA&Symbol=PSPFX