Lots of people don’t notice this, however you could possibly personal a mutual fund, have losses on that fund, and STILL need to pay main capital positive aspects taxes…say what?! (Article from Russell.)
Morningstar has an annual report that covers some notably massive 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 may make the argument that proudly owning excessive price tax inefficient mutual funds in a taxable shopper account is malpractice.
