No. of Recommendations: 0
Let's say you have 1000 shares of YourFund, and the current NAV is $15, so your current value is $15,000. On the day YourFund distributes its dividends/gains/etc, that equal say, $3.00 per share, the NAV will go from $15 to $12.

Assuming you take your distributions in cash, you now have 1,000 shares valued at $12 per share for $12,000, plus a distribution of $3 per share x 1,000 shares for $3,000.

So you still have $15,000.

If you know you need the whole $15,000, and there's an tax advantage to selling this year vs. next, I'd suggest selling at the current price. December and January are a volatile time of year in mutual funds and the market in general*, with people and institutions selling to lock in gains or tax-deductible losses in both funds and the stocks they hold.

*I'm not trying to start a January effect debate here, just noting an observation that flakey stuff happens this time of year, and it aint necessarily logical.

Print the post  


Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.