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Biotech / Medical : Ligand (LGND) Breakout! -- Ignore unavailable to you. Want to Upgrade?


To: Zeuspaul who wrote (11724)11/26/1997 12:55:00 AM
From: Proton  Respond to of 32384
 
Re: Timing Fund Purchases

When can one buy a mutual fund and not incurr the artificial capital gain that is included in the price?

You'll love this answer: after they make the distribution! I'm not a mutual fund maven, so I don't know the niceties of announcing impending distributions. It is vitally important to know, at least, whether the distribution for a hot fund has been made before buying in.

"that might be questionable."... Do you know of any price prediction that doesn't fit this bill?

Heck no! ;-)




To: Zeuspaul who wrote (11724)11/26/1997 12:58:00 AM
From: CYBERKEN  Read Replies (1) | Respond to of 32384
 
Best time to buy a mutual fund is once per year on the day after they go ex div on the capital gain distribution. It's a good way to engage in cost averaging while minimizing the "buying a dividend" problem. I believe that some funds also distribute twice per year or even quarterly to facilitate investors who prefer to buy in this manner.

Barron's publishes prior distribution dates by type to assist with this.



To: Zeuspaul who wrote (11724)11/26/1997 1:08:00 AM
From: CYBERKEN  Respond to of 32384
 
Another good MF strategy is to buy a fund when it has an accumulation of undistributed net losses. Harder to do these days after 3 years of great market gains. But at times when the market is making a turnaround (and providing it's a reasonable fund to invest in otherwise), this limits the size of future cap gain distributions, thus minimizing your potential taxes.

Most recent prospectus usually shows these losses, and sometimes the mutual fund editions of financial magazines will refer to them. There may be a good reference for this on the internet, also.