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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124780  
Subject: Re: Moving from Mutual to Index Date: 12/6/1999 7:10 PM
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ejcg: "I'd like to move money from a mutual fund to an index fund. I'm not too excited about paying the long term capital gains taxes when I take the money out of the mutual fund - the money's been in there for about 10 years. Is there a smart way to make this change?"

I hate to be the bearer of bad news, but most index funds are in fact mutual funds.

The good news (such as it is), is that your basis in your existing mutual fund has been increasing with each reinvested dividend and capital gain over the years (assuming that you have been reinvesting all distributions).

Hope this helps. Regards, JAFO

PS - I have assumed that you are discussing a taxable account because you mentioned taxes and did not reference an IRA, 401-k or other tax benefitted account.
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