Tax-Savvy Investing: 10 Ways to Minimize Your Tax Burden
Published Wednesday June 28 2023 by Michael Hoffman
5. Invest in Tax-Efficient Funds
Some mutual funds and ETFs are designed to be tax-efficient. These funds typically have a lower turnover rate, meaning they buy and sell securities less frequently, thus generating fewer taxable events.
Tax-efficient funds can be a good option for taxable brokerage accounts. They allow you to maintain a diversified portfolio without the tax headache that comes with high-turnover funds.
