Many portfolios, complex or simple, will hold mutual funds as a component of the overall strategy. There are many reasons why all investor types would want to use mutual funds. Explanation of that will be saved for a post at another time.
In the meantime, a lesser understood component of mutual fund investing surrounds the subject of distributions. You might want to stay away from adding to a mutual fund in a taxable account late in the year, and part of the reason is the taxable distributions that generally occur around this time. To understand why, let's turn to this well written post by my friends at Manulife. Click here for the details (why would I write something new when they did such a good job?)
Read and share.