It doesn't make sense that the capital gain was much, much higher than the fund earn as a total for the year.
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When a mutual fund sells investments inside the fund, it realizes capital gains and losses. The fund could be selling investments that it has held for a long time with very significant gains. The investments sold could have even decreased during 2018, and have been sold for a large gain, nonetheless. It sounds like your fund had a fair amount of that. By law, mutual funds are required to distribute virtually all of the net capital gains (and dividends) to shareholders.
When a mutual fund sells investments inside the fund, it realizes capital gains and losses. The fund could be selling investments that it has held for a long time with very significant gains. The investments sold could have even decreased during 2018, and have been sold for a large gain, nonetheless. It sounds like your fund had a fair amount of that. By law, mutual funds are required to distribute virtually all of the net capital gains (and dividends) to shareholders.
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