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Subject:  Re: Avoid Mutual Fund taxes by getting stock ? Date:  9/22/1998  12:25 PM
Author:  shess Number:  5433 of 127617

gsr wrote:
<<My question is: Can you postpone capital gains taxes on money that is in these mutual funds by receiving stock instead of cash ?

I remember several prospecti saying that the mutual funds had the Option to send you stock certificates if selling stocks to raise cash would be disruptive to other fund members.>>

This is probably something at the fund's sole discretion. In other words, if you are pulling $10k from a $10B fund, there's no way they're going to do this. I you are pulling $500k from a $10M fund, perhaps.

Beyond that, it would still be a bad deal because they don't open their portfolio and let you pick your payment - instead, they are going to pawn off the dogs of the portfolio on you. The reason they might not want to just send cash in the first place is if the block of stocks they would want to sell was large enough that the sale itself would depress the price they received. So they would instead transfer that risk to _you_.


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