3 ms·
Holding stocks in a mutual fund is not tax exempt. You pay taxes on dividends and I think also you pay as the turnover produces net profits. You also pay capita
by gmarx 11y ago
Holding stocks in a mutual fund is not tax exempt. You pay taxes on dividends and I think also you pay as the turnover produces net profits. You also pay capital gains on shares you sell. Eventually it all gets taxed
- rayiner 11y agoThe mutual fund itself is tax-exempt and passes profits and gains onto owners of the fund. Think about the alternative: you create a corporation to hold the assets of the fund. Dividends on those assets would be taxed when the corporation receives them before they are distributed to shareholders.