Question regarding mutual fund performance | TigerDroppings.com

Posted byMessage
jimbeam
USA Fan
University of LSU
Member since Oct 2011
33722 posts

Question regarding mutual fund performance



I've been looking into Vanguard funds to start my retirement funding and I have a question.

When looking at the price and performance of each fund, i'm confused. Why such a large jump when including 'sale of fund shares'?

For example- VSEQX
Returns before taxes- 18.46%
Returns after taxes on distributions- 18.17%
Returns after taxes on distributions and sale of fund shares- 10.90%

Are you really only making 10.9% on this fund? Can someone explain this to me please?


Thanks from a total noob.







Back to top
Share:
CHSBears
Texas A&M Fan
Baton Rouge
Member since Aug 2007
523 posts

re: Question regarding mutual fund performance


They use the highest marginal tax rate in effect at the time. Could be quite high considering what went into law for 1/1/13. They also only consider federal taxes; ordinary income, qualified dividends, short term gains & long term gains.

2013 Highest marginal rate is 39.6% plus surcharge of 3.8% for a total of 43.4%. So just to ballpark, they look correct.



This post was edited on 5/16 at 11:59 am


Back to top
jimbeam
USA Fan
University of LSU
Member since Oct 2011
33722 posts

re: Question regarding mutual fund performance








Back to top
  Replies (0)


Back to top