Help- Clarifications on distributions/dividends on mutual fund and how much ive made?

FSUBall23 wrote: ↑hi there, sorry if silly question but in a TFSA I just purchased a mutual fund. I dont have to worry about ACB because I am sheltered from tax but today I look at my book value/market value and I see my book value went up 100 dollars but I didnt contribute 100 dollars into the mutual fund.

I see a recent transaction of a reinvested mutual fund and that must have increased the book value, but my understand is the market value remains the same as the reinvested money is purchased at the new mutual fund which has been decreased the same amount of the dividend meaning that the market value has stayed the same correct?

So by that logic everytime a dividend/distribution is given to me fro the mutual fund that means my book value is increasing but market value is staying the same (if all things equal of course).

So this means I just cant take book value - market value to see how much I have truly made in the mutual fund from the time I purchased it to its market value today??????

thank you for clarification

a_1_a wrote: ↑profit = market value - (initial investment + additional investment). Book value is for non registered accts to calculate capital gain when selling.

mr_raider wrote: ↑The only hitch is that with mutual funds, sometimes the turnover of underllying securities generates a distribution. This is often returned to the fund hodler as return of capital which reduces your adjusted cost, i.e. it has the net effect of lower your initial investment. Tracking this can be a bitch if your brokerage doesn't do it for you.

a_1_a wrote: ↑Since it is in a TFSA, ACB is irrelevant.