摘要：Mutual funds are held by investors in both conventional taxable savings accounts and tax-deferred retirementaccounts, and some investors fall in higher tax brackets than others. Recent empirical research investigates how themarginal tax rate of a mutual fund affects the fund's tax avoidance behavior and asset returns. This paper studiestheoretically the tax clientele effects on the tax avoidance and performance of mutual funds. It finds that when themarginal tax rate of a mutual fund increases, the mutual fund is more prone to deferring the realization of capital gains,the before-tax return decreases, and the after-tax return also decreases.
