Mutual funds make two types of distributions: income distributions and capital gains distributions.

Income distributions represent all interest and dividend income generated from money market, bond, mortgage, equity, or derivative-based index funds.

Capital gains come from the profit a fund makes when it sells securities such as stocks or bonds at a higher price than orignial purchased price.

All income and gains held outside of a registered plan are subject to income tax.

NAVPS (Net Asset Value per Share) = (Total asset -total liability) / Total number of shares of units outstanding