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Yes, I was thinking of mutual funds. Vanguard and others offer mutual funds that are specifically designed to avoid big capital gains distributions. In addition, index funds are usually very good in this regard. Much of the capital gains comes from managed funds buying and selling stocks. Index funds need not do much trading. They simply buy the stocks that mimick the index and hold them.

Tax considerations are important. If you get into a major investment program without considering those effects, you will soon find yourself with sizable tax bills. Some mutual funds incurr sizable capital gains distributions even when the NAV of the shares is declining. Its something to watch out for.
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