Income Dividends Payments to mutual fund shareholders consisting of dividends, interest and short-term capital gains earned on the fund's portfolio securities after deduction of operating expenses.
Income Dividends: The distribution of earnings to stockholders by a company.
Index Fund: A mutual fund that replicates the behavior of a given index.
This applies not only to unit trusts, but to shares of companies, as well. Dividends from unit trusts may be of three types: income dividends, short-term capital gains dividends and long-term capital gains.
 See also: Deposit, Offer, Bear, Market Price, Vesting
  
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