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"I agree that you want to consider the tax consequences of switching funds, but I'm not sure that it's rarely worth it. You have to run the numbers to see what your particular situation really is.
If you choose to keep the existing fund, you could also stop having the dividends reinvested. Instead, have them paid to you and invest them in the newly acquired fund."

Point well taken.

An added thought. I'm thinking of someone who has been dripping money into a mutual fund for years and now has accumulated a large capital gain, for whom the taxes would be very high changing funds. However, it would still be possible to sell shares in the old fund that have been bought recently (you have to specify which shares to your broker or first in/first out is presumed by the IRS), taking advantage (?) of the down market to move the money into a more tax efficient fund without having to pay capital gains, or even taking a loss.
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