Taxes
You’re Facing a Big Tax Bill If You Hold These Mutual Funds
Even if the investments declined in value last year, you might still be on the hook for capital gains.
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What’s worse than watching your mutual fund investments decline in value? Getting hit with a big tax bill too.
That’s the reality some Americans are facing this year as the deadline to file taxes approaches. It’s largely a function of how actively managed mutual funds operate: Portfolio managers buy and sell securities within the fund to reposition their strategies, and many did so in 2022’s volatile market.