Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
Why did mutual fund PRWAX go down 10% yesterday?
I cant figure out why prwax, t rowe price new america growth fund went down over ten percent yesterday. The major holdings in the fund did not go down and other funds in same catagory did not go down either, can anyone explain the big drop?
2 Answers
- kelby7670Lv 77 years agoFavorite Answer
You got a capital gains distribution. Your investment amount did not chance but you have to pay taxes on the capital gains and you raise the basis of your fund the same amount.
- DonaldLv 77 years ago
Very likely, it went ex-dividend. That means it pays a substantial dividend, and that amount was subtracted from the fund. I had the same thing happen a few days ago with a Fidelity mutual fund--it fell 8.5% when all the underlying stocks were actually up. I called Fidelity, and they knew immediately. You should call T. Rowe Price, but I imagine it's the same thing. It really doesn't reflect a loss in value. That "drop" will either be reinvested or sent to you, depending on what your direction is regarding dividends.
Hope that helps.
