- 1). Figure out the number of units of the fund you own. This is usually clearly stated on your brokerage statement. For this example, assume that you own 100 units of a particular mutual fund.
- 2). Obtain the price of the shares from when you purchased them. Assume you purchased 100 units at a price of $10 per unit. The total cost of the units is $10 multiplied by 100 or $1,000.
- 3). Look up the dividend paid out for each unit owned in the fund. Assume the dividend payment is $1 per unit. This means you received $100 in dividend payments which are reinvested into the fund and purchased at the current market price of the mutual fund.
- 4). Calculate the number of shares you are able to purchase with the reinvested funds. If the current price of the one unit has increased to $20, you can purchase five additional units with the reinvested funds.
- 5). Calculate the shareholder basis. Your new basis is the total value of units or shares owned divided by the number of shares or units owned. The answer for this instance is $1,100 divided by 105 shares, or $10.48.
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