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  • FIRST POST
    • _pete_
    • By _pete_ 12th Jan 18, 10:43 AM
    • 131Posts
    • 36Thanks
    _pete_
    Selling Fund 'Mid Year'. Do I lose Dividends?
    • #1
    • 12th Jan 18, 10:43 AM
    Selling Fund 'Mid Year'. Do I lose Dividends? 12th Jan 18 at 10:43 AM
    I'm assuming that if I sell a fund a month or so before its dividend date I will not receive any dividend (not even pro-rata).

    Is this correct?

    Should I therefore take into account the dividend date of a fund before selling it?

    And ditto when buying funds?
Page 1
    • TheTracker
    • By TheTracker 12th Jan 18, 11:05 AM
    • 1,213 Posts
    • 1,198 Thanks
    TheTracker
    • #2
    • 12th Jan 18, 11:05 AM
    • #2
    • 12th Jan 18, 11:05 AM
    I'm assuming that if I sell a fund a month or so before its dividend date I will not receive any dividend (not even pro-rata).

    Is this correct?

    Should I therefore take into account the dividend date of a fund before selling it?

    And ditto when buying funds?
    Originally posted by _pete_
    In theory, the current price of the fund incorporates this circumstance.
    • ColdIron
    • By ColdIron 12th Jan 18, 11:38 AM
    • 4,261 Posts
    • 5,393 Thanks
    ColdIron
    • #3
    • 12th Jan 18, 11:38 AM
    • #3
    • 12th Jan 18, 11:38 AM
    If you don't own the fund/share on the ex-dividend date you don't get the dividend, however the price will reflect the dividends/cash accrued to date so you should benefit from the increased value on sale (a sort of pro-rata). It's a similar situation when you buy but reversed. It may suit you from a tax point of view to receive dividends rather than a capital gain but only to a small degree
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