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chandniwadhwani92
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Postby chandniwadhwani92 » Tue Oct 28, 2014 9:10 am

Q=1 Describe Tax implication of CLOSED ENDED FUNDS,OPEN ENDED FUNDS AND ETFS?
Q=2 Do closed ended funds charge brokerage fees or management fees??

Q=3 Although closed ended funds are sold out in secondary market but they are initially purchase from fund manager or from secondary market??

edupristine
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Postby edupristine » Wed Oct 29, 2014 9:38 am

Ans 1: Please let me know exactly what you haven't understood in tax implications of the funds.

Ans 2: Closed ended funds charge 1% - 2% as the management fees.

Ans 3: They are initially purchased from the fund manager and fund is publicly listed on a recognized stock exchange.

chandniwadhwani92
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Postby chandniwadhwani92 » Wed Oct 29, 2014 12:28 pm

I dont know anything about tax implications?

edupristine
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Postby edupristine » Fri Oct 31, 2014 11:44 am

In most cases, the ETF's are more tax efficient than conventional mutual funds. Whenever a mutual fund realizes capital gains, it must distribute those capital gains to the shareholders. Now shareholders have to pay capital gains tax on it.

However, close ended mutual funds and ETF's are not redeemed and hence no capital gains arise out of them, therefore no capital gains taxes.


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