Let's Talk Investing
Understanding mutual fund distributions
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Rob Carrick examines confusing and misunderstood items in the mutual funds industry
Segment Three: Mutual fund tax primer
-why do funds make distributions?
-describe the difference between payouts of dividends and interest and year-end capital gains distributions (need to keep this very simple for our viewers). (You pay tax both on capital gains distributions and on any capital gains when redeeming your funds. Some people think that they are being taxed twice on the same gains. Explain why this is not so.)