Lots of people don’t understand this, however you may personal a mutual fund, have losses on that fund, and STILL should pay main capital features 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 price tax inefficient mutual funds in a taxable consumer account is malpractice.
