FYI: The week of Dec. 15, as the worst year of returns relative to market averages in modern history drew to a close, dozens of mutual funds paid out taxable gains to their shareholders.
As of Dec. 19, more than 79% of U.S. stock funds had failed to beat their market benchmarks for the year, compared with the average of 59% over the previous 25 years, according to investment-research firm Morningstar. As if that weren’t bad enough, investors in many underperforming funds will find themselves owing whopping tax bills without having sold a share.
Regards,
Ted
http://blogs.wsj.com/moneybeat/2014/12/26/when-funds-insult-their-investors/tab/print/
