
I just got hammered by a mutual fund double whammy. Since I bought my SSgA Tuckerman Active REIT (SSREX), it lost nearly 6%, then the fund distributed $2.9418 per share last Friday. The end result? The fund is now down almost 20% and I will have to pay capital gains tax on the distribution! Overall, I should have been more careful about having mutual funds in my non-tax sheltered account.

Photo from Wikipedia
A mutual fund double whammy occurs when:
These changes helped me accomplishes several things:
Overall, I didn’t think the loss was a big deal, and believe that the changes will make my portfolio more tax-efficient and diversified.
You can track this particular portfolio at my Covestor page.
This article was featured in the Festival of Stocks hosted by Financial Alchemist.

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Yikes…that is a scary drop on the chart…ahem..my recommendation..
Asia funds, Asia fund, Asia funds
-Raymond
With all due respect to Raymond, diversify, diversify. Asia funds make up about 15% of my portfolio, but I wouldn’t expose myself heavily to them any more than I would heavily expose myself to the US equity market. Diversification and low fees are the best ways to minimize risk and maximize long-term returns. Dump anything with high fees – I did it a few years ago. Painful in the short term but worth it now.
Great moves – I’d argue that you had a triple whammy if you include the higher expenses of the mutual fund which will end up being the biggest cost over time.
Excellent site.
Mike
@Raymond – I found that many international funds invest very little in Japan and Asian markets. Based on another comment, I chose an Asian fund specifically this time.
@Brip Blap – I agree. I try to limit my investment to no more than 20% in any particular thing. I still have room for improvement though.
@FourPillars – I sounds like a good plan, I hope it does work out. Anyway, reducing cost should work out better regardless. Now I wish I have the courage to get out of my old mutual funds; I am afraid of capital gains though.
Good choice Pinyo, the sign of a good investor is knowing when to cut and run so that you can reinvest elsewhere.