Mutual Fund Switch Tax Calculator
Mutual fund switch tax
A switch from one mutual fund into another may seem like the right thing to do when you are holding an underperforming fund or one which carries a SELL recommendation. But you could have invested a large amount in such a fund, and the absolute tax outgo that you will have to bear when you exit the fund may have you hesitating. Your new investment has to make up for the tax outgo and deliver better than your current fund, too.
Therefore, you are left with the following dilemma:
Should you cash out of your current fund and switch into a new one? Or should you continue to hold on to your underperforming fund, save the taxes, and hope that it eventually picks up?
Our Mutual Fund Switch Tax calculator makes it easy for you to resolve this dilemma by quantifying the impact of the mutual fund switch tax. With this interactive calculator, you will know:
- Just how much additional returns your new fund will have to generate in order to make up for the tax cost you’re bearing.
- Whether or not you should switch from your current fund to a new fund
