Cryptocurrency Q&A
Why does NAV go down after dividend?
Why does NAV go down after dividend?
Maria
Wed Oct 30 2024
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7 answers
1625
I noticed that the NAV of a certain investment fund decreased after the dividend was paid out. I'm wondering why this happens and what are the reasons behind this drop in NAV following a dividend distribution.
7 answers
CharmedFantasy
Fri Nov 01 2024
This practice leads to a decrease in the net asset value (NAV) of the dividend scheme.
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Pietro
Fri Nov 01 2024
The NAV reduction corresponds to the amount of dividends distributed to investors.
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Maria
Fri Nov 01 2024
Mutual fund dividends serve as an alternative to capital appreciation.
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Lorenzo
Fri Nov 01 2024
Essentially, investors receive a portion of their capital back in the form of dividends.
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Lucia
Fri Nov 01 2024
Instead of increasing the value of the investment, dividends are paid out to investors from their capital.
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