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Grow wealth, not taxes: The value of corporate mutual funds

64988(NC)—A tree would never grow taller if a big part of it were chopped down every year. But for Canadians who are trying to build their wealth, taxes can be just as damaging as a woodsman’s axe, cutting gains instead of letting investments build.
Many Canadians take advantage of government tax-sheltered savings programs such as RRSPs and TFSAs. But some investors are also looking for ways to build long-term wealth outside of registered vehicles. For those investors, corporate mutual funds offer a solution.

Corporate mutual funds allow investors to switch from one mutual fund to another on a tax-deferred basis. For example, an investor could choose to move an investment from a bond fund into a balanced fund. By investing in corporate funds, investors can reallocate or rebalance without triggering immediate tax consequences.
A key consideration in selecting a corporate fund family is selection. Mackenzie Corporate Funds offer a wide selection of Canadian equity funds, US equity funds, fixed income, specialty and sector funds to ensure a wide variety of choice.
“Corporate funds have advantages for individuals who have non-registered investments,” says Carol Bezaire, vice president of tax and estate planning at Mackenzie Investments. “In addition to tax-deferred switching, for investors seeking an income stream, they can offer more tax-efficient cash flow than regular or ‘trust’ versions of mutual funds. The main thing is to talk to your financial and tax advisor, so that your investments can work tax efficiently for you. The more people learn about them, the more they will see that the advantages are very important to their investment growth.”
Investors in mutual funds should keep the following in mind:

1. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments.
2. The prospectus should be read before investing.
3. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

More information can be found online at www.mackenziefinancial.com.


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