EARNINGS FROM MUTUAL FUNDS
As you invest in mutual funds, you will receive distributions
of your earnings. Some of them may arrive in your mailbox on a regular basis.
Others you will only receive when you sell your funds. You may have additional
earnings when you sell your shares. In the articles that follow, we will discuss
the earnings that mutual funds pay their investors. At the end, we will discuss
your option to reinvest your earnings.
Before we tackle the types of earnings, we will begin with
a short discussion of how mutual funds earn money.