What, if any, is the tax consequence of cashing in an expensed mutual fund, then buying into a no-load fund?

My expensed mutual fund costs 5% per annum, a hefty expense ratio. I want to get out of this mutual and re-invest in a no-load index fund. What are the tax consequences of shifting my investment into a new similar investment (no-load index fund)?

You own a mutual fund with a 5% expense ratio?

If you sell it, you have a taxable event. Depending on what your cost basis is and what the sales proceeds are, you would have a capital gain or a capital loss. Depending upon how long you owned the fund, it could be short-term or long-term.

Is this an open acct or IRA? Another way to look at it is taxable or non taxable. Have you made any money? If its an IRA as long as you do a transfer no taxes. An open acct will depend on the gain. Then if you held it for more than a year you pay tax at long term rate(5% or 15%) No-load index funds have got a lot of press lately but are not the greatest thing since sliced bread.

Selling your mutual fund will result in a capital gain (or loss) in the year sold if the sale price is different than your cost basis. If you sell it for more than you paid, you would owe capital gains tax on the difference

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