What are Distributions?
Answer:
Distributions are the net profits paid to mutual
fund shareholders after all the capital gains, capital losses and dividends have been calculated.  More than just profit paid on one particular stock, distributions refer specifically to pooled money accounts like mutual funds.

One share of mutual fund investment might represent fractions of shares in specific stocks and each individual stock in the fund (or fraction) might have a different rate of return, or no return at all.

Because of this, the capital gain or loss on each type of investment in the fund is calculated individually and then the total profit of the fund is distributed equally based on the number of shares each mutual fund participant owns.
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