Capital Gains Distribution

Capital Gains Distribution refers to payments made by mutual funds or exchange-traded funds (ETFs) to investors, representing a portion of the proceeds from the fund’s sales of stocks and assets within its portfolio. It reflects the investor’s share of the fund’s capital gains.

Related Terms

Capital Gain or Loss

Capital gain is the profit earned from selling an asset, while capital loss is the loss incurred from selling an asset. Gains can be realized (after sale) or unrealized (before sale). Capital gains are taxable, and losses may offset gains for tax purposes.

Capital Gain

A capital gain is a profit an investor or trader earns by selling shares, commodities, futures, options, currencies, and other assets. More literally, a profit represents a gain on the capital invested, highlighting the importance of effective investment strategies in wealth accumulation.

Capital

Capital refers to the total amount of money a trader uses to buy and sell securities, often starting with “starting capital.” For investors, it encompasses cash and financial assets. In economics, capital includes machinery, inventory, and factories necessary for production.

Capital Losses

Capital Loss is the loss that occurs when an investor sells a capital asset for less than its purchase price. This includes stocks, real estate, and other investments. Capital losses can offset capital gains, thereby reducing overall taxable income for the investor.

Cash Commodity

A cash commodity refers to physical goods such as metals, grains, or other tangible products, traded and delivered, often after exercising futures or options contracts. These goods are also called “actuals” and are commonly delivered for payment in futures trading.

Cash Contract 

A cash contract is an agreement between two parties for the delivery of goods at a predetermined price and date. Unlike futures contracts, it involves physical delivery. It’s commonly used by large companies for securing commodities without engaging in speculation.

0

Account Opening
Charges*

₹50000 Worth Stocks With Just ₹10000