Investing2 min read
DistributionGerman: Ausschüttung
A distribution is a payment of income or other amounts from a fund to its shareholders.
In plain language
Depending on the fund, payments may occur annually, quarterly or monthly. All else equal, the share value falls by the amount distributed. You decide whether to reinvest the cash.
Let’s make it concrete
A share is worth €100 before a distribution. A €2 payout leaves an illustrative €98 share value and €2 in cash.
Simplified example for illustration.Worth understanding
Large distributions alone are not a quality signal. Their source, total return and costs matter.
Read more from official sources
For further learning and reference:
Financial education for orientation. No individual investment, tax or legal advice.
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