In-Kind Distribution

An in-kind distribution refers to a distribution of assets or securities made by a financial account or investment fund to its shareholders or investors. Instead of distributing cash, the assets or securities themselves are directly transferred or distributed to the recipients. In simpler terms: An in-kind distribution means that when you receive a distribution from a financial account or investment fund, you get actual assets or securities instead of cash. For example, if you own shares in a mutual fund and it decides to make an in-kind distribution, you might receive shares of another fund or stocks directly rather than receiving cash in your account.