tax-efficient fund

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.
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MUTUAL FUND PERFORMANCE Value in 2012 of $10,000 invested in 1990 in portfolios of domestic equity mutual funds Before tax After tax Tax-inefficient fund portfolio $55,800 $37,800 Tax-efficient fund portfolio $58,900 $48,800 Before tax scenario corresponds to the cumulative investment value if the fund is held in a tax-qualified retirement account.
Tax-efficient mutual funds do better before taxes, too
The William Blair FCP provides a tax-efficient fund vehicle aimed at benefiting non-US based investors.
Northern Trust to provide services for Luxembourg-based tax-efficient funds
Pensions should also not be ignored in terms of both building up a tax-efficient fund and passing on wealth free of IHT (assuming that you do not need to take an income from the fund, which is a whole new area of wealth planning).
Wealth, well managed with astute and experienced planning
The disclosure is not required to appear in advertising unless the fund is presented as a tax-efficient fund.
Mutual funds' before- and after-tax returns: the case of tax clientele
Like most index funds (especially Vanguard index funds), it is a low-cost, tax-efficient fund because the managers do relatively little trading.
the great fund round up
A tax-efficient fund has more long-term capital gains and less investment income and short-term gains.
A taxing problem
This is a missed opportunity to build a buffer to absorb shocks associated with unexpected health care expenses and, for those more fortunate, to accumulate additional tax-efficient funds for later in life.
Q&A: 6 links between physical and financial health
As such, it may be advisable to utilize ETFs for the stock exposure (due to their preferential treatment on year-end capital gain distributions), use tax losses to offset gains, and select more tax-efficient funds.
Taxes and Your Investment Portfolio: The 40-Year Effect
Tax-efficient funds aim to minimize the distributions that are made to shareholders, thereby limiting the amount of income that must be declared.
Avoiding the tax man: be sure to assess the tax implications of your mutual fund investments
Tax-efficient funds: Tax-efficient funds (such as index funds) are excellent long-term savings vehicles due to their low turnover, which reduces capital gains distributed over the investment's life.
The funding dilemma: retirement or college?
Appropriate solutions for HNW individuals and small-business clients will be driven by asset allocation, risk management, consolidated statements and some alternative investment classes such as real estate and tax-efficient funds.
Executive profile: Jeffrey A. Montgomery, chairman and CEO, NFP Securities, Inc
This makes the mote tax-efficient funds the most appealing.
Investing in tax-efficient funds

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