[Editor’s note: Even though the market is up strongly in recent years, 2018 saw two substantial sell-offs. That’s why mutual fund “distributions” are likely to be a significant event this year. During those sell-offs, some funds sold long-held winning positions. The gains from those sales must be distributed to investors.]
It’s not unusual for new readers to become concerned when one of our recommended funds suffers what appears to be a severe one-day decline! We assure them there’s no cause for alarm: the drop was caused by a fund distribution.