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I have some money to invest now (Oct 2012). I have read that it is not a good idea to invest in Mutual Funds during the year-end due to capital gains distributions related tax implications. Does the same apply to ETFs also?
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EFTs can distribution capital gains and dividends.

Especially if the EFT or Mutual Fund only distributes dividends and capital gains once a year, then buying late in the year can have significant tax consequences.

Rather than saying you should never invest in Mutual Funds or EFTs at year-end, check the ex-dividend dates and history of the specific EFT or Mutual Fund.

Also, if the EFT or Mutual Fund is held in a retirement account, the timing of dividends and capital gain distributions have very limited tax consequences.
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