If investors sell their mutual fund shares after the net asset value of the fund increases, the return is called
A) share price appreciation.
B) capital gains distribution.
C) dividends.
D) split net asset value.

Question

Quizplus · Accepted Answer

When investors sell their mutual fund shares after the net asset value (NAV) of the fund increases, the return is called share price appreciation. This is because the increase in NAV leads to an increase in the share price, and therefore, selling the shares at a higher price than they were bought at results in a gain for the investor.

If Investors Sell Their Mutual Fund Shares After the Net