independent investment advice

Mutual fund distribution season risks

   Mutual funds issue distributions to shareholders typically in either early November or late December.   Investors should ask their advisor to examine the mutual funds that he has recommended to clients and see what are the risks of getting a distribution. Bond funds had very modest potential unrealized capital gains or no gains. The bond market this year came close to breaking even roughly speaking and thus the risk of a significant distribution from a bond mutual fund is low. Usually when a moderate amount of outflow of mutual fund customers occurs the fund can sell things with a high tax basis and this avoids trigger capital gains distributions. Mutual funds usually have some easy

October 25th, 2013|mayflowercapital blog|Comments Off on Mutual fund distribution season risks