ETF ACADEMY: High Cost of Mutual Funds – Part 3

If you owned mutual funds in 2007, you likely had a much bigger tax bill to pay by April 15.

According to Lipper analyst Tom Roseen, mutual fund taxes totaled $33.8 billion in 2007, up 42% from the prior year. On a performance basis, investors did even worse with taxes reducing returns by 1.77 points in 2007 compared to 1.3 percentage points in 2006.

The WSJ’s Eleanor Lase has the full story in her article Index-Tracking Funds Can Lessen Tax Bite.

Roseen’s full report is available for purchase on Lipper’s website.

For more on the High Cost of Mutual Funds, see our postings here and here.

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