Quote:
Originally Posted by Rainger99
But if the fund manager sells stocks at a loss, why aren’t the losses passed along to the shareholders?
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I believe that losses are passed on to the shareholders, but I don't remember that ever occuring with my mutual funds. The fund manager doesn't itemize the individual stocks that were sold, so you only get a consolidated total of the losses and the gains, which usually results in a net capital gain distribution, not a net loss.