When you own shares of a mutual fund,you can choose to have the dividend and capital gains distributions paid directly to you in the form of cash or you can choose to have them reinvested into additional shares of the fund itself.

Question

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This statement is true. When you own shares of a mutual fund, you typically have the option to receive distributions in cash or reinvest them in the form of additional shares of the fund.

When You Own Shares of a Mutual Fund,you Can Choose