Mutual fund owners face a double dilemma. | Jobs Vox


If you own a stock-mutual fund, you may face a double whammy this year.

First, the value of your mortgage has declined relative to the overall market.

When shareholders leave mutual funds during a market slide, managers are forced to sell shares to get these investors out.

That’s where the second eclipse comes from.

Because these sales generate capital gains on long-term holdings, they result in capital gains distributions to shareholders, who must then pay capital gains taxes.


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