I’ve seen this question a few times now… and I know how to answer it… If a person wants to liquidate some funds and is taxable investor, they should liquidate the one with the loses rather than the one with the gains, regardless if the fund is under or over valued…
Why is the answer not to liquidate 50% fund A and 50% fund be, thereby offsetting your gains and loses so you net zero. Why do you liquidate 100% of the fund that has the losses ?
A: Liquidate Fund A
B Liquidate Fund B
C. Liquidate 50% fund A and 50% Fund B