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Where do you find answers for 1 day mutual fund losses>5%? |
Does the fund management offer any explanation? Where do you find it? dont worry about 1 day loss If you are new to funds, maybe your fund has posted dividends and gains for the year...in a couple of days you will have more shares at the new price.( should work out just about even)... if you are sure that the fund lost 5%...I don't know what to say. Only 5%? if this is something that just recently happened it is most likely they did a capitol gains distribution, so the NAV dropped 5% but you really arent losing money, besides the taxes due on the distribution Your best bet would be to log onto a site such as Yahoo Finance, go to the Fund's page. Their top 10 holdings will be listed. Another click will bring up their other holdings. If the fund dropped it is most likely because one or more of the stock holdings took a hit. If it was an inside the fund problem the SEC and Reuters would blaze it across the sky. You m ay also want to check Moody's for the risk factor. Mutuals are meant to be held and you may have too high of risk factor fund. it is depending of market. olso gains some days. and when dividend issued, then NAV will falls sounds like a distribution. funds have to make distributions to shareholderrs from gains and losses as well as dividends the fund realizes throughout the year. if that's what it was, you'll see a deposit of cash in your account in the next few days equal to the $ per share drop (ie, if you had 100 in the fund and now it's worth 95, you'll see a distribution of about $5 in your account.) some accounts allow for automatic reinestment of these proceeds in which case you'll simply acquire more shares. you'll owe tax on those gains though if the fund is held outside a tax-exempt account like a 401k or IRA. the fund company should have these distributions listed on their company web page. also, they're quite common this time of year. hope this helps. |
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