Tax preferences of investors and fund investments

Vijay Yadav

Economics Letters, 2016, vol. 143, issue C, 90-93

Abstract: Funds must distribute all dividends and net realized short-term and long-term capital gains to their investors each year. Investors have to pay tax on these distributions. We find that funds whose distributions are taxable pay lower dividends than funds whose distributions are tax-deferred. Taxable funds also distribute relatively lower short-term and long-term capital gains. This suggests that funds take into account the tax preferences of their investors in making investment decisions.

Keywords: Mutual funds; Dividends; Distributions; Taxes (search for similar items in EconPapers)
JEL-codes: G23 H24 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176516300982
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:143:y:2016:i:c:p:90-93

DOI: 10.1016/j.econlet.2016.03.026

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().