As bull markets develop, many investors are lured by the low volatility and cheery market sentiment. However, as rallies stretch over a number of years, as they have recently, a hazard emerges for investors seeking to invest in mutual funds. First-time investors purchasing shares bear the risk of inheriting a portion of the unrealized capital gains that accrued during the market rally. Should the fund manager elect to sell any appreciated assets, all shareholders will receive their proportional share of the resulting realized capital gains regardless of how long the shares were owned…

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