Module 120 min2496 wordsFree — no account
Three kinds of fund income, and one of them is never paid out
The module’s worked examples, then cases to attempt before revealing their solution · 2 sections · 253 words · 3 min
Worked example
Purchase in April
An investor buys her units on 20 April. Calculated over the whole year, the advance lump sum would come to 240 €. The month of purchase, April, is preceded by January, February and March, three full months. The advance lump sum falls by three twelfths, which is 60 €, to 180 €.
Practical case
How large is the advance lump sum?
An investor has held units in a fund for years. At the start of the year they are worth 20,000 euros, at the end 20,200 euros. During the year the fund distributes 100 euros. The bank has computed the arithmetical base yield, the starting value times 70 percent of the base rate, at 350 euros. How large is the advance lump sum, and when is it deemed received?
Hint: First check the cap under section 18(1) sentence 3: increase in value plus distributions. Only then deduct the distributions.
Show the solution
The cap is 20,200 minus 20,000, that is 200 euros of increase in value, plus 100 euros of distribution, 300 euros in total. It lies below the arithmetical base yield of 350 euros, so the base yield is capped at 300 euros. The year's distributions are deducted from it: 300 minus 100 gives 200 euros. The distribution of 100 euros is taxed alongside as a kind of income in its own right. Under section 18(3) the advance lump sum is deemed received on the first working day of the following calendar year.
Answer: 200 euros, received on the first working day of the following year
Educational content, current with the sources cited. It does not replace advice tailored to your situation. These courses are neither certifying nor CPF-eligible: they prepare for no certification registered with the French RNCP or specific register.