Smart Tax Guide

It's tax season again and like everyone else, you too feel that you're paying the government much more than what you should. Through the 'Smart Tax Guide' series, Value Research tries to answer tax-related questions that may be bothering you. Q. From the tax point of view, how do equity funds compare with direct equity investing? A. The key to a mutual fund's tax efficiency is the fact that it does not pay taxes on the gains its investment fetches. Compare two situations where an investor is enjoying benefits of an actively-traded portfolio—one, where an investor trades directly in stocks or other securities; and two, where an investor inve

This article was originally published on March 11, 2003.