Quote:
Originally Posted by Fltpkr
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.
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That is why it is best to invest in index funds. I use the S&P 500 Index fund. It is very "tax efficient" because most investors are long term investors, so the fund has very little turnover.