TD Mutual Funds Corporate Class
TD Mutual Funds Corporate Class now gives you access to our outstanding mutual funds in a way that can give you the potential growth you want with the added benefit of greater tax efficiency.
The Corporate Class Structure
Corporate Class is a mutual fund family set up within a corporate structure. Each fund is offered as a different class of shares in the corporation. The benefit of this is that you can switch between classes (funds) in the corporation without any capital gains or losses being realized.
The payment of taxes on any capital gains from growth of your investments in the corporate classes is deferred until you take your money out of the corporation. This means the money you would otherwise have had to use to pay taxes is still available for investment.
Corporate Class Tax Deferral
Deferred taxes when you switch between share classes (funds) means you could have more money available to be invested, getting the benefits of compound growth and increasing the value of your portfolio.
Corporate Class Tax Reduction
As a result of the Corporate Class structure, distributions may be minimized. If any distributions are made, they will be in the form of Canadian dividends or capital gains, which currently have lower tax rates than interest income. When you do redeem your Corporate Class investments, currently all the growth would be taxed at the more favorable capital gains rate.
Corporate Class Tax Management
Corporate Class gives you more control over when to realize capital gains or losses. Gains and losses from Corporate Class can be used to balance gains or losses from other investments you have or you could choose to take gains when youre retired and may be taxed at a lower rate.