Which types of income are distributed to unitholders of National Bank Mutual Funds?
Capital invested in National Bank Mutual Funds is professionally managed and is invested in various securities products such as stocks, bonds or money market instruments according to specific investment policies. Investments generate income in the form of dividends, interest, or capital gains from the sale of investments. Income and capital gains are taxed differently. Interest income is taxed as is salary, whereas dividend income from Canadian corporations are eligible for a dividend tax credit which reduces the amount of taxes 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.
