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by kirkland 3132 days ago
In that example, presumably "moduspol mutual fund" would need to pay capital gains taxes.
1 comments
moduspol 3132 days ago
Wouldn't its profits be coming from the fees it charges me, and not from the investments themselves?

Do normal mutual funds pay capital gains taxes as the things they invest other people's money in are changed?

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phil21 3132 days ago
> Do normal mutual funds pay capital gains taxes as the things they invest other people's money in are changed?

Yep! Tax efficiency of a mutual fund is quite an important factor to look at for your overall expenses as well. It's a large reason actively managed funds don't do as well as simple market-wide ETFs.

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moduspol 3132 days ago
Wow. TIL. Thanks!
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