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Which statement(s) is(are) true about mutual fund capital gain distributions? They are paid every 3 months (quarterly capital gains distributions). Many investors are surprised by
Which statement(s) is(are) true about mutual fund capital gain distributions?
- They are paid every 3 months (quarterly capital gains distributions).
- Many investors are surprised by this tax effect because they have not actually received any capital gains since the money is reinvested by the professional money manager.
- Difficult for a mutual fund investor to plan for as there is a lack of control over when the investments inside the mutual fund will be sold, leading to a potential unexpected tax liability.
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