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Automatic Withdrawal |
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Automatic withdrawal A mutual fund that gives shareholders the right to receive a fixed payment from dividends on a quarterly or monthly basis. Automatic Withdrawal A mutual fund that gives a certain, stated amount to each shareholder every month or quarter. For example, an automatic withdrawal fund could be structured to give shareholders one dollar per share per month. The money theoretically comes from dividends or coupons, but if there is not enough income to cover the withdrawal, the fund's managers must liquidate some securities to cover the obligation.
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