Investors may be surprised by capital gains distributions from their mutual funds this year.
The size of the payout depends on the fund and its investment strategy. A fund that holds stocks for long periods, such as an index fund, will have fewer distributions than actively managed funds that frequently trade.
Mutual fund research firm Morningstar has estimated the average distributions for U.S. stock funds with capital gains by percentage of net asset value from 2011 through November 2016. Distributions are lower so far this year because most payouts take place in December.