Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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?
Print the post Back To Top
No. of Recommendations: 1
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.
Print the post Back To Top