Lots of people don’t understand this, however you might personal a mutual fund, have losses on that fund, and STILL need to pay main capital good points taxes…say what?! (Article from Russell.)
Morningstar has an annual report that covers some significantly huge distributions, and normally there are fund distributing 20, 40% or extra!
Here’s a desk from S&P that demonstrates the tax drag for traders…one might make the argument that proudly owning excessive charge tax inefficient mutual funds in a taxable shopper account is malpractice.
