Lots of people don’t understand this, however you possibly can 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 notably large distributions, and often there are fund distributing 20, 40% or extra!
Here’s a desk from S&P that demonstrates the tax drag for traders…one may make the argument that proudly owning excessive charge tax inefficient mutual funds in a taxable shopper account is malpractice.
