Tax Tips: Mutual Fund Tax Breaks
04/02/2010 0 comments
March 31, 2010
By Bill Bischoff from SmartMoney
Now many investors have already been aware of the importance of avoiding load funds and funds with ridiculously high expense ratios. But they have not paid close enough attention to a fund's tax efficiency. This article gives some tax tips for investors who invested in forgein mutual funds and reinvested dividends in the funds.
Part of being a smart mutual-fund investor is making sure you walk away with as much profit in your pocket as possible. This means avoiding load funds (usually, anyway) and funds with ridiculously high expense ratios.
Most readers of SmartMoney.com are already aware of these pitfalls, but one area where many wise fund investors still stumble is with taxes. For starters, many investors don't pay close enough attention to a fund's tax efficiency. And that isn't the only common mistake. Here are a couple often-overlooked ways to reduce the tax hit to your mutual fund shares.
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