Click here for a 30-day free trial. OK, maybe capital-gains distributions aren't at the forefront of your mind right now, but perhaps they should be. With most mutual fund companies distributing their capital gains to shareholders in December, many of them will begin releasing their preliminary distribution estimates this month. A preliminary view of the most recent estimates from top mutual fund companies shows many funds already preparing to distribute 10 percent or more of their net asset value in capital gains. Generally, distributions of 10 percent or more are considered large.
Some funds are already well beyond that level.
Those monstrous estimates have many market watchers bracing for more mammoth capital-gains distributions this year. And with the average technology fund gaining an incredible 135 percent return last year, chances are that many of 1999's skyrocketing funds have taken some profits on their more highflying stocks, leading to large capital gains for this year. We're probably looking at a repeat of last year's unusually high levels. That's because many of the tech-heavy funds that did so well in 1999 and in the first quarter of this year experienced steep losses since. So even if these funds did take some profits earlier this year, those gains would be offset by the subsequent downturn.