Mutual fund investors, proceed with caution.
If you're planning to purchase a fund in your taxable account between now and the end of the year, you could get stuck paying taxes on gains you didn't earn.
How's that? Mutual funds are required to distribute their income to shareholders each year in the form of interest, dividends and capital gains. Most do so at year-end, by Dec. 31.
Those distributions are subject to taxes even if you reinvest them in more fund shares.