Cryptocurrency Q&A
Do dividends reduce NAV?
Do dividends reduce NAV?
Isabella
Tue Dec 31 2024
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6 answers
1217
I'm trying to understand the relationship between dividends and NAV. Specifically, I want to know if dividends have an impact on reducing the Net Asset Value of a fund or an investment portfolio.
6 answers
HanRiverVisionary
Thu Jan 02 2025
The payment of a dividend can lead to a decrease in the net asset value (NAV) of a fund.
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Elena
Thu Jan 02 2025
This decline happens because the value of the fund is reduced when a dividend is paid out to investors.
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Tommaso
Thu Jan 02 2025
Such a drop in NAV is a normal and expected consequence of dividend payments.
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InfinityVoyager
Thu Jan 02 2025
Investors should not be discouraged from selecting a fund solely based on this occurrence.
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MoonlitCharm
Wed Jan 01 2025
Dividend payments are a common practice in the investment world.
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