What types of income are distributed to unitholders of National Bank mutual funds?
The capital invested in National Bank mutual funds is invested in a variety of securities products such as stocks, bonds or money market instruments according to specific investment policies and is professionally managed. Investments generate income in the form of dividends, interest and capital gains from the sale of investments. Investment income and capital gains are taxed differently: interest income is taxed as salary, whereas dividend income from Canadian corporations is eligible for a dividend tax credit that reduces the amount of tax payable. Only 50% of capital gains distributions are taxable. The following table shows how each type of income distributed by National Bank mutual funds is taxed.
