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IBD: Mutual Fund Distributions May Fall for First Time Since 2009

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.

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