Question about capital gain returns from mutual funds

Slew Foot

Lifer
Sep 22, 2005
12,379
96
86
So I probably should have noticed this earlier, but after reviewing last years portfolio performance, I noticed that some of my mutual funds paid out a fairly hefty capital gain. Namely, FDVLX (Fidelity Value) paid out about 8% total in addition to the standard dividend. I dont see where to find out how much the capital gain is on a yearly basis. Is it based on the performance of the fund over the year and is there a way to predict how much will be paid out? Thanks.
 

DaveSimmons

Elite Member
Aug 12, 2001
40,730
670
126
The gain is based on the fund selling stocks, less losses from selling other stocks.

Actively managed funds and large index funds (Russell 2000, total market) have a lot more turnover than an index with a smaller number of stocks like the S&P 500.

That's why if you have a choice it can make better tax sense to put worldwide, small cap, and actively managed funds into retirement accounts, then put an S&P fund into your non-retirement account.