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Is it good to invest in a mutual fund when the date that it distributes dividends date is close?

Last Updated: October 09, 2009

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If you want to purchase a mutual fund close to its distribution date (generally toward the end of the year), it may be wise to wait until after dividend and/or capital gains distributions have been made. By doing this, you will avoid receiving a distribution and then almost immediately having to pay taxes on it.

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