SIE: Taxation Of Mutual Funds

Taxation of Mutual Funds

Mutual funds, which are essentially large pools of investments that individual investors buy a slice of, generally pay out a combination of capital gains, interest income, and dividend income each year. Here are some important general pieces of information to remember about mutual funds distributions:

• • A mutual fund will specify how much of each type of earnings (short-term gains, long-term gains, dividends,