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Percent gain

Posted: Sun Feb 07, 2021 12:49 am
by beginner-4
Hello everyone,

I was wondering how percent gain relates to fund price share change. I think % gain. let's say fund A initial price (when I buy the fund) was $10/share and now $15/share ($5 increase), and there is 8% gain during this time. Does that mean that my fund grows 8% (dividend, etc. included), and I can sale it $5 more of the initial price (plus expenses and tax)?

Thank you so much!

Re: Percent gain

Posted: Sun Feb 07, 2021 1:40 am
by mjedlin66
beginner-4 wrote: Sun Feb 07, 2021 12:49 am Hello everyone,

I was wondering how percent gain relates to fund price share change. I think % gain. let's say fund A initial price (when I buy the fund) was $10/share and now $15/share ($5 increase), and there is 8% gain during this time. Does that mean that my fund grows 8% (dividend, etc. included), and I can sale it $5 more of the initial price (plus expenses and tax)?

Thank you so much!
If you buy at $10 and it ends at $15, that is a 50% gain.

If you buy at $10 and have an 8% gain, then it ends at $10.80.

It is not possible to go from $10 to $15 share price with an 8% gain. The two are directly correlated. So it is one or the other.

And this has nothing to do with taxes, and almost nothing to do with dividends. The TSP does receive dividends, but they handle it by raising the share price. They don't pay out dividends or reinvest (buy more shares) like most brokers do.

Re: Percent gain

Posted: Sun Feb 07, 2021 1:50 pm
by beginner-4
I understand now. Thank you so much mjedlin66!!