Finance, Forex and Investments

Dividends in a mutual funds/ETF are distribute to the shareholders or back to the funds?

Dividends in a mutual funds/ETF are distribute to the shareholders or back to the funds? Do we get to invest the dividends or the dividends are automatically reinvested in to the funds, hence you own more shares of the funds? Lastly, I was told I should invest tax inefficient funds into my IRA rather than tax efficient funds. Can someone give me some comparisons?

Public Comments

1. When you purchase a mutual fund, you have the option of receiving cash dividends or having your dividends reinvested. Certainly you can have your dividends reinvested into an IRA, but will your fund allow this and what is your ceiling and what is your floor as far as your salary is concerned. I would place money into my IRA on my own, that way I would have more control.