Capital Gain Distributions

Capital Gains Distribution

An amount of money paid to shareholders of a mutual fund from its capital gains over the course of a year. That is, a mutual fund takes its capital gains over a year and divides them among shareholders, who are then responsible for capital gains taxes. Capital gains distributions are usually made at the end of each calendar year and they reduce the fund's net asset value. Because of the existence of capital gains distributions, some analysts advise against purchasing mutual funds at the end of a calendar year because a shareholder will become instantly liable for capital gains taxes.

Capital Gain Distributions

Amounts paid by mutual funds, regulated investment companies, and real estate investment trusts that represent the shareholder's portion of gain from the sale of capital assets owned by these investment companies. Capital gain distributions are taxed in the year constructively received and are always considered to be held long term.
References in periodicals archive ?
The above-listed funds are not expected to pay any short-term capital gain distributions for 2007.
1103 per share, 9% represents short-term capital gain distributions and 7% represents long-term capital gain distributions.
the investment advisor to each of the Cohen & Steers open- end mutual funds, announced projected short-term and long-term capital gain distributions for 2007 as follows:
0147 per share and 2% represents long-term capital gain distributions.
7992 per share, and 1% represents long-term capital gain distributions.
4679 per share, and 18% represents long-term capital gain distributions.
1116 per share, 4% represents long-term capital gain distributions and 44% represents return of capital.
3887 per share, and 24% represents long-term capital gain distributions.
Distributions may be redesignated as capital gain distributions or, if in excess of taxable income, as a return of paid-in capital.
2328 per share, and 31% represents long-term capital gain distributions.
0785 per share, 1% represents long-term capital gain distributions and 27% represents return of capital.
the investment adviser to each of the closed-end Cohen & Steers mutual funds, announced projected long-term capital gain distributions for 2006 as follows: