Quote:
Originally Posted by roob1
I invested 200K in a Vanguard mutual fund, and at year's end (2021 and 2022), it was valued at approx. 165K. Both years it was reported I had about 10K in capital gains. How can I have capital gains (and tax liability) when the investment value is less than I invested?
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If you don't mind sharing, which Vgd fund was that?
If a number of investors leave a particular fund at the same time it can force the manager to sell assets to pay the liquidating shareholders, and this can result in unexpected capital gains. I know this has happened at least once in the recent past in one of Vanguard's target retirement funds.
Thanks.