Lots of people don’t notice this, however you could possibly personal a mutual fund, have losses on that fund, and STILL should pay main capital good points 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 traders…one might make the argument that proudly owning excessive payment tax inefficient mutual funds in a taxable consumer account is malpractice.