I'm reading The Little Book of Common Sense Investing by Bogle John, the founder of Vanguard index funds.
Chapter Six: Dividends Are the Investor’s (Best?) Friend: But Mutual Funds Confiscate Too Much of Them, he mentioned that reinvesting stock dividends can be a huge difference in the long run, but mutual funds will not add that to their net assets, thus "confiscated" them.
- Why won't the mutual funds add the dividends to its net assets? Or was it totally consumed by their operation fees?
- Would index fund add the dividends to its net assets?