Hope this helps. IMO, You asked a good question.
This is a classic 'gotcha' for many mutual fund investors.
That said, I don't regard this as 'odd'. Rather it is just part of the DD we all have to go through when evaluating the investment qualities of a mutual fund.

As for "when is the best time to do so?", if you are asking when the best time is to start investing in mutual funds, my answer is, "As soon as possible."
I may have misunderstood your question here. But if you are asking, "When is the best time" from a tax standpoint, my gut reaction is "irrelevant and immaterial!" If you want to minimize the tax liabilities of a mutual fund investment, the question is not "when" but "which". That is, which mutual fund will meet your investment objectives and minimize your tax obligations. In general, the sooner someone starts to invest, the better.