Investment taxation becomes even more important

Investment type A makes your money 14.5 times over 25 years, while investment type B makes it 18.75 times over the same period. It sounds like a no-brainer. Obviously, anyone would choose B. The difference in returns is so large. What if I told you that these two are the exact same investments? There is no difference between them in terms of what the money was invested in. All the difference comes from the tax paid on the gains! In terms of annualised returns, the first case yields 10.8 per cent, while the second one yields 11.9 percent. Accumulated over long periods of time, this builds up to very large differences in returns. Here's how I arrived at this figure: This was a hypothetical study of the tax impact of churning equity mutual fund holdings versus holding them for long periods of time. Currently, the tax on long-term capital gains from equity-b