Tax - conscious mutual fund investors should determine a mutual fund's
unrealized accumulated
capital gains, which are expressed as a percentage of its net assets,
before investing in a fund with a significant
unrealized capital gain component.
If you're sitting on
unrealized capital losses in investments in taxable accounts, you may want to consider selling shares
before the end of the year to realize the loss and apply it against realized
capital gains in other investments (including mutual funds, which are expected to make sizable distributions this year).