CASE DESCRIPTION The primary subject matter of this case concerns the taxation of mutual funds. Secondary issues examined include the concept of tax clientele, basic differences in the taxation of capital gains and ordinary income, basic differences in the tax consequences of holding mutual funds versus individual stock portfolios, and the characteristics of tax-efficient mutual funds. The case has a difficulty level of four, most appropriate for senior level students. It could also be used at the advanced junior level or beginning graduate level. The case is designed to be taught in one class period (approximately 75 minutes) and is expected to require 3-5 hours of outside preparation by students depending upon whether the advanced requirements are assigned.
