If you are trading huge volumes, buying and selling, then I gather the distributed income is made mostly of distributed capital gains which are passed on to the individual. Funnily enough I didnt see many distributed capital gains on 04-05 tax information for navra. If one is on a 30% tax bracket then the returns look quite poor, esp as some of you are using it for capital growth. Im concerned that some people have stated they have 50-80% or even 100% of their share portfolio into this fund, and expect growth thru reinvesting dividends. Just seems very inefficienct, compared to say some value funds/ indexes.