After five straight years of rising mutual fund distributions, 2015 may be headed for a decline. At least this is what Paul Katzeff says in his article for Investor’s Business Daily.
Katzeff points to the summer market pullback and lower dividend payouts as the root cause of the possible decline in distributions.
The article points out that distributions amid negative returns are a worst-case scenario for many fund shareholders in nontax-deferred accounts. That’s because they trigger potential tax bills even though the fund declines.
Things should become clearer in the next few weeks, as fund families start posting their distribution information.
These AAII articles contain useful information that all fund investors should know:
If you are not an AAII member but want unlimited access to AAII’s library of educational articles, simply take a risk-free 30-day Trial AAII Membership to start becoming an effective manager of your assets.