Mutual Fund

Mutual funds are not taxed on their income as long as they comply with certain requirements established in the Internal Revenue Code. Specifically, they must diversify their investments, limit ownership of voting securities, distribute most of their income to their investors annually, and earn most of the income by investing in securities and currencies. Mutual funds pass taxable income on to their investors. The type of income they earn is unchanged as it passes through to the shareholders. For example, mutual fund distributions of dividend income are reported as dividend income by the investor. There is an exception: net losses incurred by a mutual fund are not distributed or passed through to fund investors.

Outside of the United States, mutual fund is used as a generic term for various types of collective investment vehicles available to the general public, such as unit trusts, open-ended investment companies (OECI"S, UCITS (Undertakings for Collective Investment in Transferable Securities) and SICAVs (société d"investissement à capital variable, pronounced "SEE-cavs").

One thing is that a fund house might be the top mutual fund in terms of gathering assets, but might lag in performance. The second, and more important thing is that when it comes to investment decision making, it is important that we choose based on performance and not on popularity. What works for one set of investors or the majority of investors might not work for another. We help you decide which fund house you choose and our expers help you in making better investment.

Advantage Of Mutual Funds

Mutual funds have advantages compared to direct investing in individual securities. These include:

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