Mutual Fund Holders Face Double Trouble

If you’re a stock-mutual fund holder, you may face a double whammy this year.

First, the value of your holding has likely dropped along with the overall market. 

As shareholders have exited mutual funds amid the market’s slide, managers have been forced to sell shares to cash these investors out. 

That’s where the second whammy comes from.  

It’s because those sales often generate capital gains on longterm holdings which generate capital gains distributions to shareholders, who then have to pay capital gains taxes on them.

Source: https://www.thestreet.com/investing/funds/mutual-funds/mutual-fund-holders-face-double-trouble?puc=yahoo&cm_ven=YAHOO&yptr=yahoo