Re: Novice tax question

While we are talking about mutual fund gain tax, I am wondering why
most mutual funds want to distribute most gains regularly and resulted
in tax for the owners? If it is the law, I have known some funds that
don't do that regularly. I mean, if the owners want distribution, they
can always withdraw some shares and they can withdraw the right amount
that they wanted, right?
I have heard that index funds (say S&P500) do not distribute most gains
regularly, is that true?
Thank you again for your responses.

.

Relevant Pages

  • Re: Novice tax question
    ... >>While we are talking about mutual fund gain tax, ... >>I have heard that index funds do not distribute most gains ... > capital gains distributions reinvested in the fund, ...
    (misc.taxes)
  • Re: Novice tax question
    ... >While we are talking about mutual fund gain tax, ... >I have heard that index funds do not distribute most gains ... capital gains distributions reinvested in the fund, ... If you are asking why the mutual fund makes capitalgains ...
    (misc.taxes)