tax-efficient fund

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Tax-Efficient Fund

A mutual fund that invests in securities thought to give fund shareholders the least possible tax liability. Common securities in which a tax-efficient fund invests are municipal bonds, which are usually tax-free, and non-dividend paying stocks, which reduce a shareholder's capital gains tax liability. Tax-efficient funds often retain stocks in which they invest, as stocks held for more than a year are taxed at a lower capital gains rate. They are often thought of as an alternative to tax-deferred investment vehicles, such as 401(k)s and IRAs.

tax-efficient fund

A mutual fund that manages its investment portfolio so as to minimize the tax liability of its shareholders. A tax-efficient fund attempts to minimize capital gains distributions by reducing portfolio turnover and to minimize dividend payments to shareholders by concentrating on investments in companies with low dividend payouts.
References in periodicals archive ?
The Fund is a tax efficient fund issued under the Enterprise
Also, the pension grows in a tax efficient fund which can certainly help to build its value over the year.
The T1ps Smaller Companies EIS Fund is a tax efficient fund issued
Therefore, this fund is likely to be a more tax efficient fund than its peers.
JPMorgan Fleming's existing mutual fund product range consists of 70 equity, fixed income, and tax efficient funds.
14 /PRNewswire-FirstCall/ -- Northern Trust announced today that assets under custody in cross-border pooling vehicles have more than doubled in the last year to $24 billion as both investment managers and other institutional investors realize the benefits of aggregating the assets of investors from multiple countries into tax efficient funds.

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