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To: Peter V who wrote (1942)10/21/1998 8:01:00 PM
From: John Dally  Respond to of 2506
 
Hi Peter,

The mutual fund trading gains get passed through to the investors as taxable income. So, if a fund has sold shares with capital gains, it will often sell shares with losses to offset the gains.

They seek to minimize the taxable income passed through to their investors.

Best regards, John.