When mutual fund companies sell investments that have increased in value, the profits, or capital gains, are passed on to their shareholders as' Capital gains distribution's. These distributions are made on a regular schedule, often at the end of the year and are taxable at your regular rate unless the funds are held in a tax-deferred or tax-free account. Most funds offer the option of automatically reinvesting all or part of your capital gains distributions to buy more shares.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). capital gains distribution. Retrieved September 20, 2026, from http://smartdefine.org/capital_gains_distribution/definitions/1149370 |
| Chicago | Barry Goldsmith. 2010. "capital gains distribution" http://smartdefine.org/capital_gains_distribution/definitions/1149370 (accessed September 20, 2026). |
| Harvard | Barry Goldsmith 2010, capital gains distribution, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/capital_gains_distribution/definitions/1149370>. |
| MLA | Barry Goldsmith. "capital gains distribution" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/capital_gains_distribution/definitions/1149370> |