The basic terminology of mutual funds is needlessly confusing, even misleading. Terms like NAV and dividend don’t actually mean what a new investor would assume they mean. This is an unfortunate reality, one which is not going to change anytime soon.
Therefore, it’s best for investors to make a little effort to understand what’s going on, rather than making bad decisions later. Practically speaking, the first thing that a new investor learns about funds is that you buy a fund...