John At The Center

Many funds have negative capital gains exposure of more than 50%. That means that they would have to appreciate about 50% before they start distributing capital gains. (Technically, it varies based on flows and how tax-savvy the managers are.) Thus, for a change, someone starting out a fund portfolio today has a major advantage over someone beginning a stock portfolio.

via These Funds Offer You a Break on Taxes – Morningstar – Fund Spy.