Mutual Fund Distributions: The Profit And The Peril

Ted

FYI: (Click On Article Title at Top Of Google Search)
This is the time of year when mutual fund investors in taxable accounts need to be on the lookout for mandatory year-end capital-gains and dividend distributions. Most, but not all, fund companies put out distribution estimates in the fall, though many don’t go out of their way to tell investors about an impending payout—and the taxes they trigger.

On the whole, investors probably won’t see the same kind of distributions as last year, when funds paid out some $633 billion, according to the Investment Company Institute. Still, a choppy market doesn’t mean that investors aren’t going to be slapped with an unwanted distribution and subsequent tax bill.
Regards,
Ted
https://www.google.com/#q=Mutual+Fund+Distributions:+The+Profit+and+the+Peril+barron's

Old_Skeet

I received my first yearend mutual fund capital gain distribution this week from Thornburg Strategic Income (TSIAX) in the amount of 2.74 cents per share with a payout date of 11/19/2015. I anticipate receiving about a 3% capital gain distribution on the equity side of my portfolio. If this materializes, then the total distribution (interest, dividends, capital gains) received will be north of 5% on current valuation and better than 6% on amount invested. Thus far, this year, I have been able to have competitive performance with my portfolio's benchmark (The Lipper Balanced Index). Times are now tough for us yield seekers as I can remember my portfolio easily paid out better than 8% ten years ago.