Private Asset Management
No robots, no pie charts, just custom advice from seasoned professionals.
As a shareholder in a mutual fund, you participate in the fund on a pro rata basis with all other mutual fund shareholders. Think of the homeowner’s association of a condo complex. Everyone shares in the expenses together. If the roof over Unit 4C is leaking, the collective funds of the community pay for the repair. If a mutual fund manager takes capital gains, each shareholder reaps their corresponding portions of the tax liability for the capital gains. Those gains or losses are typically calculated after the October 31st fiscal year end most funds observe. As an investor you are unable to plan for potential gains or losses or capital distributions made by the fund, creating a potentially unknown tax liability.