Mutual fund gains can be in the form of dividends or capital gains, which are passed on to the individual investors.

Question

Quizplus · Accepted Answer

Mutual funds generate returns for investors through dividends on stocks and interest on bonds held in the fund's portfolio, which are distributed to investors. Additionally, if the fund sells securities that have increased in value, it realizes capital gains, which are also passed on to investors.

Mutual Fund Gains Can Be in the Form of Dividends