Why did the price of my mutual fund drop in December?

For 2019: The Azzad Ethical Fund (ADJEX) will distribute capital gains to its shareholders on December 18, 2019. Shareholders may see the fund’s share price drop for a couple of days while the capital gains are processed and distributed. The post below should help explain this standard procedure of capital gains distributions for mutual funds in the U.S. What are mutual fund capital gains distributions? When a mutual fund realizes capital gains, such as from stock dividends or from selling holdings that had increased in value, the fund must distribute those gains periodically among all fund shareholders. If you own shares in a mutual fund, you will receive a portion of those gains for each share of the fund you own. While the capital gains are being distributed to the fund shareholders, the fund’s net asset value (NAV) — sometimes called the share price — will be lower. But this NAV drop doesn’t mean that the funds lost money because of this event, so there’s no need to worry. Pooled investments like mutual funds are supposed to work this way. When a distribution occurs, a fund’s share price drops by the per-share amount of the distribution. If you’re like most

November 19, 2019 No Comments

Heads up: Azzad Funds distribution will occur next week

On Wednesday, December 19, the Azzad Funds will make a capital gains distribution to all fund shareholders. This will mean the net asset value (NAV) — sometimes called the share price — will be lower on Wednesday than it will have been when the market closed on Tuesday, December 18. But this NAV drop doesn’t mean that the funds lost money because of this event, so there’s no need to worry. Pooled investments like mutual funds are supposed to work this way. When a mutual fund realizes capital gains, such as from stock dividends or from selling holdings that had increased in value, the fund must distribute those gains periodically among all fund shareholders. If you own shares in a mutual fund, you will receive a portion of those gains for each share of the fund you own. When a distribution occurs, a fund’s share price drops by the per-share amount of the distribution. If you’re like most Azzad Funds shareholders and you have elected to reinvest your investment gains in additional shares, you just got more shares of the fund. Why does this happen? Mutual funds are required to work this way to qualify for special tax rules available for

December 7, 2018 No Comments

Why your mutual fund dropped on a day the market was up

On Monday, December 18, the Azzad Ethical Fund (ADJEX) made a capital gains distribution to all shareholders, which resulted in an adjusted net asset value (share price) that is lower than it was as of market close on Friday. This is something that all mutual funds do. ADJEX didn’t “tank,” so there’s no need to worry; pooled investments are supposed to work this way. When a fund distributes gains, its share price drops by the per share amount of the distribution–but it’s to your benefit. If you’re like most ADJEX shareholders who have their accounts set to reinvest gains and dividends, you just got more shares of the fund, but your account value remains steady. Why did this happen? Mutual funds are required to work this way to qualify for special tax rules available for registered investment companies. They must pay net income and realized capital gains to their shareholders at least annually. Sometimes this happens monthly or quarterly, but it’s often once a year during December. The reason that distributions occur is because the fund has made money for investors, which is a good thing. Do I have to pay taxes on this? A mutual fund’s distribution of capital

December 19, 2017 No Comments

LPL Financial adds Azzad Funds to mutual fund platform

(Falls Church, Virginia, 7/2/14) – Two no-load, socially responsible mutual funds that observe Islamic investing criteria can now be purchased through the LPL Financial mutual fund brokerage and wrap platforms. The Azzad Funds, known for their rigorous adherence to halal investing guidelines, were added to the platform in June, giving affiliated financial advisors access to Shariah-compliant options for their clients, including, for the first time, a Halal fixed-income fund. The Funds’ investment advisor, Azzad Asset Management, made the LPL announcement from their offices in Falls Church, Virginia. “Many Shariah-sensitive clients are currently served by LPL advisors,” said Azzad Asset Management’s senior investment strategist, Fatima Iqbal. “This announcement gives those clients access to important growth and income-generating investment options that align with their faith. We will continue to work with partners like LPL Financial to make sure the Azzad Funds are available to a broad segment of the American investor public.” The Azzad Funds include the first Shariah-compliant fixed-income mutual fund in the United States, the Azzad Wise Capital Fund (NASDAQ: WISEX). The Fund won a Lipper Fund Award in June for Best Global Sukuk Fund for the one-year period ending 12/31/13. Azzad launched its mid-cap growth fund, the Azzad Ethical

July 2, 2014 No Comments