FYI: Almost two decades after I wrote it, this column still shocks me: Seven weeks after he bought a mutual fund, an investor found out he owed $10,000 in taxes on it even though he hadn’t sold a share and the fund hadn’t even made any money for him.
Is it any wonder that investors have shoved mutual funds aside in favor of exchange-traded funds, which tend to be more tax-efficient?
Regards,
Ted
http://jasonzweig.com/mutual-fund-tax-bombs/
