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Strategies & Market Trends : Fidelity Select Sector funds -- Ignore unavailable to you. Want to Upgrade?

To: gunslinger who wrote (1283)	11/28/1998 7:01:00 AM
From: Jim Battaglia	Read Replies (1) \| Respond to of 4916

If a fund declares a dividend in December 1998, but does not pay it until January of 1999, you are treated as having received the dividend in December 1999, the year it was declared. If you plan on investing in a mutual fund before the end of a calendar year, find out first when distributions are made. If you buy the mutual fund shortly before the distribution, you will have to pay tax on that distribution. In effect, all you will have done is bought taxable income that the fund earned earlier in the year but had not yet paid out to shareholders. ey.com Jim