Do Tracker Funds Pay Dividend?

Do Tracker Funds Pay Dividend?

1 Answer

  1. Yes, most often than not. Like any other funds, tracker funds are also a kind of investment in an company. The profit on which are a part of company’s wealth and they divide this wealth in the form of dividend to the shareholders. So, dividends are a form of interest. According to the Investment Company Act 1940, index mutual funds have to pay out the dividends to their investors. Hence, you can get some amount on your investment, and the amount depends on the type of index you have.

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