Access Financial

Mutual Funds

The Share Price Changes

Naturally, each investor wishes that the share price of the mutual fund will increase thereby increasing the income and value of the shares of the mutual fund to the investor. This is part of the rate of return that is calculated for the mutual fund. Much like with the individual shares of a company, if the price of a purchase of stock increases while the investor is holding the stock, there is no taxable event in most cases. In fact, there usually is no taxable event as to the shares of stock purchased, until the shares of stock are sold. Naturally, as with everything under the tax code, there are some exceptions to this general rule. These are not the subject of this discussion. Each of these three components of a mutual fund return has or may have a tax aspect or consequence to it and your tax advisor ought to be consulted with respect to each of these consequences. Even though you many not have received a check for income, in any of three categories, the fund may realize certain income, and as such you as a fund holder may still be considered to have received taxable income period.

Mutual funds are perhaps one of the most popular and best investment vehicles for the average investor, since the elimination of research is a necessary part of the investment vehicle. Other than researching the investment fund family or fund group, there is little decision-making on the part of the investor. Once the fund is decided upon, a professional money manager at the head of the fund makes all of the decisions based on all the research performed by the fund for the individual investors

Mutual Funds
1  2  3  4  5  6  7  8  
Sections Available in Access Financial
Introduction to Financial Planning
Ideas of Where to Start
Your Financial Goals
Financial Planners - Who Needs Them?
The Most Important Part of Financial Planning: Why do I Need Goals?
Let's Get Started-How?
Stocks
Mutual Funds
Investing in Retirement Funds
Investing In Fixed-Income Securities
During Retirement, What Planning Should Retirees Do Before They Retire
Estate Planning & Financial Planning

The Law
  in Your Life
Elder Care
Family Health
  Legal Library
Access Financial
Credit, Debt and Budgeting
Small Claims &
  Consumer Help
Domestic Violence
Anatomy of a Case
Legal Document
  Library
  Divorce