Investors won't feel the additional tax on the fund fees because fund companies will take it from the fund instead of billing the investors. The tax will be reflected in slightly lower fund returns. Also, the tax is on the fund management fees, not on the income, dividends or capital gains generated by the funds. This will make funds slightly less attractive investments, but it's no reason to jump into holding a portfolio of stocks and bonds directly if you don't have enough capital.Looks like the HST will add an extra 8 per cent
to management fees on Mutual Funds !
With funds being taxed at effectively at four to five times the rate of other
savings vehicles such as guaranteed investment certificates, term deposit
Does anyone have any ideas to avert this tax grab !
I know the simple answer is not to be in mutual funds, but I wonder how many people know how badly they will be effected if they don't take action?