A mutual fund is in essence a way for investors to pool their money together for investment purposes. Although one can make deposits as well as withdrawals from a mutual fund, it is a mistake to look at it as a glorified bank account.
There are three methods available to you for investors when it comes time to figure out their capital gains for stock and mutual funds come tax season. The better their record keeping, the better off they will be!
No one likes to fill out any extra paperwork when it comes to taxes. There is a way for some investors to get out of having to fill out that 54 page Schedule D. But does your client qualify?