If an investor was concerned about the tax efficiency of their mutual fund,which type of mutual funds should they buy?

Question

Quizplus · Accepted Answer

Open-end mutual funds are known for their tax efficiency because they have the ability to redeem shares when investors choose to sell, allowing for more control over capital gains distributions. In contrast, close-end funds can trade at premiums or discounts to their net asset value, which can cause tax complications. Front-end load and back-end load funds refer to fees charged by a mutual fund, and do not have a direct correlation to tax efficiency.

If an Investor Was Concerned About the Tax Efficiency of Their