TITLE

What Mutual Funds Really Return After Taxes

AUTHOR(S)
Fortin, Rich; Michelson, Stuart
PUB. DATE
April 1996
SOURCE
Journal of Financial Planning;Apr96, Vol. 9 Issue 2, p60
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article examines the after-tax performance of a large population of mutual funds across investment classifications over time.
The majority of mutual fund studies have examined mutual fund returns on, a before-tax basis. Two recent exceptions to this are Jeffrey and Amott [Spring 1993], who examine the after-tax performance of 72 large equity mutual funds, and Siegel and Montgomery [Winter 19951, who examine the after-tax returns of Ibbotson Associates data. Certainly, investors should be primarily interested in their after-tax returns. High before-tax returns in an aggressive mutual fired with high turnover could result in lower after-tax returns than a comparable low-turnover fund because of the gains realized and passed on to the investor.
ACCESSION #
5561514

 

Related Articles

  • A lack of information. Freeman, Peter // Money (Australia Edition);Feb2008, Issue 98, p24 

    The author presents his views on drawbacks of investing in managed funds, two of which center on tax. He points out that many funds not only invest inefficiently tax-wise, but they also do little to help potential investors understand this, since very few publish after-tax returns or provide...

  • Tax Externalities of Equity Mutual Funds. Dickson, Joel M.; Shoven, John B.; Sialm, Clemens // National Tax Journal;Sep2000 Part 2, Vol. 53 Issue 3, p607 

    Investors holding mutual funds in taxable accounts face a classic externality. The after-tax return of their investment depends on the behavior of others. In particular, redemptions may force the mutual fund to sell some of its equity positions in order to pay off the liquidating investors. As a...

  • 'Last chance' for full tax breaks on SEIS. Berry, Michael // Fundweb;11/21/2013, p12 

    The article reports on the government-designed Seed Enterprise Investment Scheme (SEID) in Great Britain. Matthew Brown of RAM Capital Partners cites that the full tax benefits will accumulate to return all the capital put up by investors with enough tax liability who invest in SEIS companies....

  • Penalty calls. Freeman, Peter // Bulletin with Newsweek;5/2/2006, Vol. 124 Issue 6518, p57 

    The article provides information related to investment companies and how these companies are generating excellent returns. The main investment companies such as Argo and Australian Foundation Investment, do not get caught up in the giddy atmosphere currently pervading the market. They have a...

  • Solving Environmental Problems with Regional Decision-Making: A Case Study of Ground-Level Ozone. Plancich, Stephanie // National Tax Journal;Mar2003 Part 1, Vol. 56 Issue 1, p123 

    This paper studies long- and short-term capital gains distributions around the time of the Tax Reform Act of 1997, which lowered the maximum tax rate on long-term gains. Using a panel of mutual fund data, I find that fund managers appear to tilt their distributions towards the long-term after...

  • LETTING THE TAIL WAG THE DOG. Lutschaunig, Art // On Wall Street;Feb2007, Vol. 17 Issue 2, p66 

    The article offers strategies for financial advisors to minimize investors' tax payments and avoid their unintended consequences. In buying and selling investments, the advisor must help the investor accept the potential risks of the investments' performance. As each year ends, advisors...

  • Mutual funds taking off. Bruno, Mark // Pensions & Investments;10/2/2006, Vol. 34 Issue 20, p17 

    The article discusses the future of the financial planning industry in Japan. There is now a widespread awakening among investors in Japan, particularly about the market of mutual funds. Japanese mutual fund market is expected to witness a major boom as its baby-boom generation is approaching...

  • 2010, A Fund Odyssey. ISRAELSEN, CRAIG L. // Financial Planning;Nov2008, Vol. 38 Issue 11, p125 

    The article focuses on the performance of 2010 target-date funds in the U.S. It is indicated that target-date funds with a target date of 2010 was first introduced back in 1994 and the majority of its investors are people born in the mid-1940s. It is stated that almost US$192 billion was...

  • Choice of Funds Snapshot.  // Money Management;11/11/2004, Vol. 18 Issue 42, p2 

    Presents a breakdown of types of funds in Australia. Proportion of all super-fund members considering a change of fund after June 2005; Proportion intending to seek advice from a financial planner; Proportion unhappy with super fees; Proportion who think industry funds will outperform retail in...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics