Capital Gains SZN Heats Up: What Investors Could Expect
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Russell Investments2.69K FollowersFollow5ShareSavePlay(23min)CommentsSummaryCapital gains distributions are higher in 2025 due to strong market returns.Most equity categories expect increased distributions, especially growth and mid-cap segments.Investors should assess tax exposure and redirect distributions to more tax-efficient solutions. Richard Drury/DigitalVision via Getty Images The year is winding down, but Cap Gains SZN is ramping up. It’s that time when the holidays bring together family, friends and shared traditions. There is a natural pause to reflect on the year’s accomplishments and lessonsThis article was written byRussell Investments2.69K FollowersFollowRussell Investments is a leading global investment solutions partner providing a wide range of investment capabilities to institutional investors, financial intermediaries, and individual investors around the world. Since 1936, Russell Investments has been building a legacy of continuous innovation to deliver exceptional value to clients, working every day to improve people’s financial security. The firm has US$331 billion in assets under management (as of 12/31/2024) for clients in 30 countries. Headquartered in Seattle, Washington, Russell Investments has offices in 17 cities around the world.Quick InsightsHow do 2025 capital gains distribution estimates for U.S. equity funds compare to prior years?Estimated distributions for U.S. equity funds are averaging 8.1% in 2025, roughly 1–3% higher than 2024, reflecting strong returns and embedded gains.Which fund categories are expected to see the highest capital gains distributions in 2025?Growth-oriented strategies across large, mid, and small cap U.S. equity funds, as well as mid-cap growth, are projected to have the highest distributions, with mid-cap growth notably increasing by about 3%.What actionable steps can investors take to manage tax drag from these distributions?Investors may avoid automatic reinvestment of distributions and instead allocate proceeds to more tax-efficient options aligned with their objectives to reduce current-year tax drag.Recommended For You