
Remember, you should be comfortable with the direction of the fund, so if changes bother you, get rid of it. Portfolio Management. Mutual Funds Mutual Fund Essentials. For instance, many international markets, especially the emerging ones, are just too difficult to directly invest. The mutual fund makes distributions to mutual fund holders of this interest. Dividend-bearing funds are a poor choice for those looking to minimize their tax liability. If you are looking to grow her wealth over the long-term and is not concerned with generating immediate income, funds that focus on growth stocks and use a buy-and-hold strategy are best because they generally incur lower expenses and have a lower tax impact than other types of funds.












