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Why did the price of my mutual fund drop in December?

Why did the price of my mutual fund drop in December?

For 2019: The Azzad Ethical Fund (ADJEX) will distribute capital gains to its shareholders on December 18, 2019. Shareholders may see the fund’s share price drop for a couple of days while the capital gains are processed and distributed. The post below should help explain this standard procedure of capital gains distributions for mutual funds in the U.S. What are mutual fund capital gains distributions? When a mutual fund realizes capital gains, such as from stock dividends or from selling holdings that had increased in value, the fund must distribute those gains periodically among all fund shareholders. If you own shares in a mutual fund, you will receive a portion of those gains for each share of the fund you own. While the capital gains are being distributed to the fund shareholders, the fund’s net asset value (NAV) — sometimes called the share price — will be lower. But this NAV drop doesn’t mean that the funds lost money because of this event, so there’s no need to worry. Pooled investments like mutual funds are supposed to work this way. When a distribution occurs, a fund’s share price drops by the per-share amount of the distribution. If you’re like most

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Heads up: Azzad Funds distribution will occur next week

On Wednesday, December 19, the Azzad Funds will make a capital gains distribution to all fund shareholders. This will mean the net asset value (NAV) — sometimes called the share price — will be lower on Wednesday than it will have been when the market closed on Tuesday, December 18. But this NAV drop doesn’t mean that the funds  lost money because of this event, so there’s no need to worry. Pooled investments like mutual funds are supposed to work this way. When a mutual fund realizes capital gains, such as from stock dividends or from selling holdings that had increased in value, the fund must distribute those gains periodically among all fund shareholders. If you own shares in a mutual fund, you will receive a portion of those gains for each share of the fund you own. When a distribution occurs, a fund’s share price drops by the per-share amount of the distribution. If you’re like most Azzad Funds shareholders and you have elected to reinvest your investment gains in additional shares, you just got more shares of the fund. Why does this happen? Mutual funds are required to work this way to qualify for special tax rules available for

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How to take advantage of long-term capital gains rates

Did you know that you or your heirs might be eligible for a 0% rate on long-term capital gains and dividends? The Tax Cuts and Jobs Act (TCJA) signed into law late last year kept the three federal income tax rates on long-term gains (0%, 15%, and 20%). But unlike the old rules, these rates are no longer tied to the ordinary income rate brackets. What’s more, many individual taxpayers may still qualify for the 0% federal income tax rate on long-term capital gains and dividends. Before you object that your income is too high to benefit, remember that you may have children, grandchildren, or other loved ones who may still be able to take advantage. Here’s what you need to know. Help loved ones to cash in on the 0% rate While your income may be too high to benefit from the 0% rate, you may have relatives who qualify. If so, consider giving them some appreciated stock or mutual fund shares that they can then sell and then pay 0% federal income tax on the resulting long-term capital gains. Gains will be long-term as long as your ownership period plus your gift recipient’s ownership period (before the recipient

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