I have had AMCAP since early 80's and it has looked decent for decades. What happened? It's down now to a MS rating of 2 stars and has been in the bottom quartile rank for the past ytd, 3 year and 5 year averages. I started with a few thousand and let it ride for all those years. If I moved it to the balanced fund ABALX would I be clobbered at tax time?
Recordman, if you hold it in a sheltered account (IRA or 401k) there is no tax implication if you trade/sell. If it is in a brokerage/taxable account, then yes, you would pay tax on the gains. However if the shares you are selling are over 1 year old as least you would get to use the lower long term capital gains rates. I would recommend talking with your accountant to plan what to do. Then you can estimate how much you might owe, and how you will pay it. You could do some this year, then some after Jan 1 to split the tax over 2 or even 3 years if it is a lot. The risk with waiting too long is we probably will have higher taxes in place by 2022, either due to a new administration/congress, and/or to pay for all the COVID bailouts.
Thanks, Lefty. Taking your advice... I will 'drain' it rather than 'dump' it all at once. It's not in a sheltered account so the capital gains tax should ease the pain.
Growth Fd is outperforming Amcap by a wide margin this year as Growth Fd loaded up on FANG stocks whereas Amcap tries for a more widespread growth portfolio.