Tax-Managed Fund

Tax-managed Fund There are ways that mutual funds can be specially set up to lower the amount of tax that investors have to pay on the returns and that is what a tax-managed fund entails. In these situations, a manager is able to come up with various tax breaks to offer investors so that they will not end up having to pay a high percentage of their earnings to the government. While this is not possible with investments in all sectors, there are various things that a manager can to do find these tax breaks, such as investing in environmentally friendly companies or municipal bonds.