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MFEGX

MFS GROWTH FUND A

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This is yet another downside of actively managed funds. You get held responsible for the tax impacts of them deciding to sell out of positions. Over long time horizons, they certainly don't have "the highest yields." Active performers overwhelmingly underperform net of the fees they charge (MFEGX you call out in a comment charges a whopping 0.86%). Those that underperform in a given time frame do not repeatedly outperform in a new timeframe, suggesting that those who overperform for a given time period were just the lucky survivors. Index mutual fund capital gains are rare unless there are large amounts of cash being withdrawn from the fund. Index ETF capital gains distributions are even rarer. If you want to avoid in taxes, invest in something that isn't actively churning.

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I hope this lands in the right place to get some discussion. So far it has been blown off an Indian mutual fund sub and Bogleheads. Having done some investigating, the problem stems from a single MFS mutual fund MFEGX which has a high amount of NVIDIA. Over the last two years the capital gains have been in the range of $50,000 a year. It's projected that this is going to continue, but will it go on forever.

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MFEGX

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