How do I get the money earned from a mutual fund investment?
April 20th, 2010
Hello I’m just starting out learning about investing and one of them is mutual fund. How do I get the money earned from mutual fund? Do I have to sell it just like a stock? or will the mutual fund company give it to me as cash or deposit to my bank account?
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If it is a bond mutual fund, the fund company can deposit the interest into your bank account or send you a check every month.
If it is a stock (equity) mutual fund, dividends and capital gains (their gains from buying and selling stocks) can be send the same way once (December) or twice (December and April) per year. If you want your unrealized gains from the fund price being higher than what you paid for it, you must call or write them asking for it, and then they will sell some (or all) shares just like a stock.