What are the best type of mutual funds to hold in a taxable investment account?
cash$$$$rules asked:
I have a balanced account that includes bonds and various classifications of mutual funds. What are the most tax efficient to be held in a taxable account?
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I have a balanced account that includes bonds and various classifications of mutual funds. What are the most tax efficient to be held in a taxable account?
March 1st, 2009 at 7:32 am
Among stock funds, broad-market index funds and tax-managed funds are generally tax-efficient because they typically generate lower levels of capital gains, short- or long-term.
For bonds you want municipal bond funds, preferably in the state you live in.