Lots of people don’t notice this, however you would personal a mutual fund, have losses on that fund, and STILL should pay main capital beneficial properties taxes…say what?! (Article from Russell.)
Morningstar has an annual report that covers some significantly huge distributions, and often there are fund distributing 20, 40% or extra!
Here’s a desk from S&P that demonstrates the tax drag for buyers…one may make the argument that proudly owning excessive price tax inefficient mutual funds in a taxable consumer account is malpractice.
