tax-managed mutual fund

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Tax-Managed Mutual Fund

A mutual fund that invests in securities thought to have given fund shareholders the least possible tax liability. Common securities in which a tax-managed fund invests are municipal bonds, which are usually tax-free, and non-dividend paying stocks, which reduce a shareholder's capital gains tax liability. Tax-managed funds often hold on to stocks in which they invest, as stocks held for more than a year are taxed at a lower capital gains rate. They are often thought of as an alternative to tax-deferred investment vehicles, such as 401(k)s and IRAs.

tax-managed mutual fund

A mutual fund that is managed so as to maximize the aftertax return rather than the pretax return of its shareholders. Capital gains distributions are minimized by low portfolio turnover and an attempt by the portfolio manager to offset realized gains with realized losses.
References in periodicals archive ?
But in the past five years no new type of fund has provided more good news for certain investors than tax-managed mutual funds.
For tax conscious investors, tax-managed mutual funds are one solution to the problem of taxable mutual fund distributions.
Although there are fewer than 100 tax-managed mutual funds (see exhibit 1, for a sampling), their stated goal of reducing the impact of federal and state income taxes on fund returns gives clients who already contribute the maximum amount to tax-favored IRAs or 401 (k) plans another low-tax way to invest in the stock market.
As CPAs try to keep pace with the best investment vehicles to help clients realize their goals, tax-managed mutual funds are an increasingly important way clients can hold down taxes, leaving more for retirement, college funding and other key objectives.
we offer access to tax-managed mutual funds, annuities, retirement plans, tax-exempt funds and our newly created Wealth Strategies Group," said Stephen E.
advises and distributes investment funds including tax-managed mutual funds and separate accounts for individual and institutional clients.
A study by KPMG, Tax-Managed Mutual Funds and the Taxable Investor, found that after 20 years, a $10,000 investment in a tax-managed fund would be 25% greater than a comparable investment in an actively managed fund.
Investment advisory services to Vanguard Tax-Managed International Fund will be provided at-cost by the Vanguard Core Management Group, which oversees some $185 billion in 15 index mutual funds, five tax-managed mutual funds, and three variable annuity index portfolios.
Furthermore, over the last three years, tax-managed mutual funds have outperformed the average growth fund on both a before and after-tax basis.
Eaton Vance is one of the largest and most experienced advisers of tax-managed mutual funds.
This fund provides the missing piece to our line-up of tax-managed mutual funds," says Wharton P.
the investment adviser to the Scudder Funds, introduced two no-load tax-managed mutual funds, Scudder Tax Managed Growth Fund and Scudder Tax Managed Small Company Fund.