$Fullerton SGD Cash Fund (SG9999005961.MF)$ is all the profi...
$Fullerton SGD Cash Fund(SG9999005961.SG$ is all the profit revenue automativally reinvested? can moo moo admin advise please?
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Moomoo Lily : @Moomoo Buddy Please help assist it.
Dadacai : Do you understand what is unit trust? You buy units in the unit trust with your money. The number of units you hold (Invested amount/Net Asset Value at the point of subscription) are in your moomoo statements which you can find in your email. The fund house calculates and publishes the net asset value of each unit based on the value of the underlying assets in the fund less expenses and fees every weekday excluding public holidays and funds closed dates. The “daily revenue” lets you see the increase/decrease in NAV of the units you hold compared to the previous day. This fund does not pay revenue/dividends/interest which you get to keep even if the NAV goes down. Hence there is nothing to reinvest. The total revenue is not money in your pocket until you sell (redeem) the units at the NAV that applies at the point of redemption. It is similar to stocks in that you have paper profits when the price goes up and paper losses when the price goes down but the profit/loss isn’t locked in until you sell the stock. The profit/loss fluctuates when the stock price fluctuates. This is not financial advice.
Noob-investor OP Dadacai : Thanks for the detailed explanation
Moomoo Buddy : Dear customer, further to below comment, when you use a certain amount of money to subscribe for a fund, the NAV (price) of the fund on a certain day will be used to confirm the final units of the fund (quantity) you have subscribed for. If you do not continue to subscribe/redeem, the unit of the fund you hold will not change, but the NAV (price) of the fund may change on each trading day. The fund's return is calculated by the change of the fund's NAV, which is the same as the return on stocks, instead of calculating compound interest, If any further help needed, please kindly contact us through Me-Customer Service-Online Inquiry or drop us a call at +65-63218888. Thanks for your support and have a nice day ahead
wkwb : The simple answer to that is yes. Your profit from your investment (ie the rise of your NAV) is accumulated within the fund and reinvested into new deposits. This is not a distribution class so you do not need to reinvest dividends back into the fund