Do unitholders receive the full distribution amount even if theyve held their fund units for only part of the year?
Yes. On the distribution date, all unitholders on-record receive capital gains distributions in proportion to the number of units they hold. An investor who becomes a unitholder at the end of the year in a fund that makes its capital gains distributions at year-end, may have to pay taxes on capital gains that were realized before the actual investment date.
Related Questions
- How could there be a capital gain distribution if the net asset value of my fund has gone down during the year?
- Do unitholders receive the full distribution amount even if they held their Fund units only part of the year?
- Will the Fund have a Distribution Reinvestment Plan and, if so, how can unitholders participate?
