Lincoln County. NC | Rod! - 3/1/2015 22:52
I hate those mutual funds. What happens is that stocks that have gains within the fund are sold at a gain, your share is then passed onto you ( capital gains distribution) even though you personally have not sold anything. Management of the fund creates the gain by selling appreciated stocks within the fund.
The total gain is the same whether tax is paid incrementally as with mutual funds or upon sale as with stocks.
Took me a while to get my head wrapped around this, but I still prefer carefully chosen funds over stocks due to my limited skill set on the topic and limited time to be a student of the market. I'm happy with my results over the last couple decades. |
Mutual fund gains tax??
