In order to reduce my taxable consequence, would it make sense for me to redeem shares in the fund before the record date for the capital gain distribution?
A. That depends on several factors how long you have held shares in the fund, charges that might be associated with fund redemptions, and your individual tax situation. By redeeming shares in the fund, you’ll realize a capital gain (which will be either short- or long-term) to the extent that the sales proceeds exceed your tax basis. Remember, the acceleration of a large taxable gain could offset any tax benefit you might achieve by avoiding the capital gain distribution.
