Considering buying fund in a taxable account


Question: A mutual fund has a turnover of 25% and a potential capital gains exposure (PCGE) of 75%. You are considering buying this fund in a taxable account. Which of the following is an accurate statement? Group of answer choices You do not need to be concerned about the PCGE because this fund is held in a taxable account. You should be concerned about the PCGE, but the low turnover mutes the potential tax risk. You would be more concerned if this asset were being considered for an IRA account. You should only be concerned if the PCGE represents long-term capital gains.

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Accounting Basics: Considering buying fund in a taxable account
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