Active Bond Funds Underperform

The fact that active mutual fund managers regularly underperform their benchmarks when it come to equities is well known. Now, evidence points to the same poor performance on the part of active bond managers.

Case Study: Locking in Tax Savings

Jane and John have experienced significant declines in their portfolio over the past year and want to lock in capital losses now to offset future gains. They anticipate a market upturn at some point in the near future, so they don’t want to be out of the market. At the same time, they want to avoid any problems with the “wash-sale” rule that discourages the sale and repurchase of a similar security within a 30-day period.