Losses get baked into the price. They are not "distributed."Many mutual funds annually state the capital gains realized per share and pass those gains to shareholders where they are taxed. I don't think I've ever seen a fund post a capital loss for a year. Is that possible?
No, realized capital losses are kept in the mutual fund and are applied against future capital gains. After 2008 most equity mutual funds did not distribute any capital gains for a couple of years.
Mutual funds aren’t allowed to distribute capital losses.
Although ETFs can have distributions, they are pretty rare. You can go that route instead to control your gains or losses.Interesting info, thanks. Having to wait for later cap gains rather than being able to deduct cap losses is a drawback of mutual funds of which I had not been aware.
Interesting info, thanks. Having to wait for later cap gains rather than being able to deduct cap losses is a drawback of mutual funds of which I had not been aware.
That's true of index mutual funds too, isn't it?Although ETFs can have distributions, they are pretty rare. You can go that route instead to control your gains or losses.
If you personally have capital losses in the fund, then I recommend you realize those losses by selling the fund and waiting over 30 days to buy it back to avoid a wash sale. You can buy something similar in the meantime, just not substantially identical.Interesting info, thanks. Having to wait for later cap gains rather than being able to deduct cap losses is a drawback of mutual funds of which I had not been aware.