All else being equal, an investment fund that has a high level of portfolio turnver will accrue more tax liabilities, and have a smaller tax deferral benefit. Why a smaller (and not larger) tax deferral benefit? Thanks, l
Because every time you sell a security that has appreciated you pay capital gains taxes and every time you hold one that has appreciated you gain the benefit of tax deferral by not paying taxes on accumulated gains.
thank you! I feel like a dumb L-3er.