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Why does my Fund’s net asset value (NAV) drop when distributions are paid?

April 26, 2017ASSET distributions drop fund NAV NET paid value

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Why does my Fund’s net asset value (NAV) drop when distributions are paid?

1 Answer

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A. The NAV, or price, of a Fund that’s paying a distribution drops on the “ex-date” to reflect the Fund’s adjusted NAV after the distribution has been paid. Market activity is also reflected in that day’s NAV.