A mutual fund that gives shareholders the right to receive a fixed payment from dividends on a quarterly or monthly basis.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A feature of some mutual funds that allows a shareholder to specify that the fund remit fixed payments at periodic intervals. The payments are composed of dividends, interest, and capital gains received by the fund, and, if these are insufficient, liquidation of some shares owned by the shareholder.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.