Mutual funds - buying after dividend

  • Last Updated:
  • Oct 1st, 2019 11:58 am
Jun 7, 2013
202 posts

Mutual funds - buying after dividend

I was just wondering since the fund I own RBF1014 paid out dividends yesterday, is it a good idea to buy additional funds today as the price of the fund dropped due to the dividend being paid. Thanks
1 reply
Deal Addict
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May 11, 2014
4627 posts
Iqaluit, NU
It makes little to zero difference. To be eligible for the next distribution, you would have to put that much more time into the investment meaning the time function of your money equalizes the price difference due to the distribution.

When buying mutual or ETF funds, you are better off just buying it when you can rather than trying to time based on distributions.
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