LAS VEGAS — As 2025 winds down, many investors are bracing for year-end mutual fund distributions , which can trigger a hefty tax bill for assets held in a taxable brokerage account. But there are strategies to avoid the payout, experts say.

For 2025, "you've got some pretty eye-watering numbers," with some funds planning to distribute double-digit capital gains, said Brandon Clark, director of exchange-traded funds for asset management firm Federated Hermes.

After another strong year for the stock market, more than 10 mutual funds are estimating payouts of at least 25% , with most distributions expected to come around late November through year-end, according to a Morningstar report published on Monday.

If you own these mutual funds in a brokerage account, you could pay taxes on

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