I. Domestic Equity Funds
Mutual funds companies located in Canada invest in the common and preferred shares of Canadian corporations. They are called, not surprisingly, domestic Equity Funds and Mutual funds companies located in US invest in the common and preferred shares of US corporations. They are called, not surprisingly, domestic equity funds. Some funds may specialize in a certain area such as small cap domestic equity funds, technology domestic equity funds, etc.
When a person invests in a domestic equity fund, they are provided with a professionally management diversification portfolio and the unit of the funds can be brought and sold daily. The investment return is the same as if a fund was personally held, but with no management fee.
Capital gains, interest and dividends are taxed like other investment returns.
II. International equity funds
International equity funds operate the same as their domestic counterparts and also may be sectionalized such as they can concentrate on only one location, such as Asia or an emerging market. The funds provide for a diversified portfolio that is professionally managed, with units bought and sold daily.
Investment risk is identical to the domestic funds, but the capital gains or losses may be augmented by the currency risk, such as currency fluctuations of the currencies can add to the size of the gain or loss and income is taxed as capital gains and dividends do not attract a dividend tax credit.
I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:
Kyle J. Norton
http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
http://financialinvesting14.blogspot.com/
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I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990
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