How does a Mutual Fund Pay Dividends?
How benefit from these dividends? If you reinvested automatically?
Seeking high income means investing in things that will give better performance. but seeking high income populations at high risk in terms of loss goes. If cash dividends have to pay capital gains.
Taxes.
You pay no tax as long as you keep reinvesting their dividends. when you buy at the bottom, there is a place on the occasion of maintaining dividends reinvested automatically. if getting dividends means that the money making. if getting dividends, not its making money. high income stocks are very high risk compared to other investment series.
Also Depend the account
Whether you are reinvested may depend on how set up the account. You can specify that dividends reinvested. Some mutual funds debt instruments pay monthly dividends. Some quarterly and some only once a year. More or less depends on the substance.
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