Because the exact impermissible element inside market appreciation cannot usually be identified transaction by transaction, an average percentage may be used based on the interest income of companies held in the portfolio.
This is an approximation designed to apply the purification principle consistently across the fund.
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Equity Funds: Purification and Fund Management
Because the exact impermissible element inside market appreciation cannot usually be identified transaction by transaction, an average percentage may be used based on the interest income of companies held in the portfolio.
This is an approximation designed to apply the purification principle consistently across the fund.