Dear TaxGuru,

What are tax-efficient investment strategies? I keep hearing on CNBC that one should keep in mind tax impact on purchasing mutual funds. Particularly, the topics usually state that there is a timing strategy.

Can you please kindly elaborate on this? Thanks a lot.

these strategies are for investments held in after-tax accounts. The best tax-effecient strategy in that case would be either index funds or exchange-traded funds. If you don't like index funds, (some of which I do not), then you can get tax-managed mutual funds that have a lower turnover, and distribute less gains. Check the Vanguard site out.