brion
Apprentice
Joined: 17 Feb 2007
Posts: 6
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 Posted: 06/11/08 - 02:15 Post subject: |
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| Hello there Joshua. About the distributions and taxation, here is how things work. For example, if you invest in a fund, you will be distributed every dividend that the fund gets from its securities and every capital gain that it makes when trading those securities. Fund has to distribute you your income at least once a year. You can choose to, instead of getting the dividend in cash, reinvest you income. It means to buy more shares of the fund. What you need to know is that you would also be taxed for this. Regular income tax applies in this case. Now, you can divide your investments into several funds, if that was your question. Well, if you do want to invest, I wish you all the best. Bye! |
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