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Taxes
Investors will owe taxes on any distributions and dividends in the year they receive them (or reinvest them).
They will also owe taxes on any capital gains received when shares are sold. Keep account statements in order to figure out taxes at the end of the year.
For those who invest in a taxexempt fund (such as a municipal bond fund), some or all of the dividends will be exempt from federal (and sometimes state and local) income tax.
They v'ill, however, owe taxes on any capital gains. Comparing different funds
After identifying the types of funds that interest an investor, it is time to look at particular funds in those categories.
A fund’s past performance is not as important as one might think.
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