Question

What is highlighted as a tax efficiency benefit of investing in mutual funds?

a.

Higher tax rates

b.

Limited tax benefits

c.

No tax benefits

d.

Enjoying tax benefits that may not come from direct investing

Posted under IC 89 Management Accounting

Answer: (d).Enjoying tax benefits that may not come from direct investing Explanation:Mutual fund investors may enjoy tax benefits that may not come to them from direct investing, particularly in debt instruments.

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Q. What is highlighted as a tax efficiency benefit of investing in mutual funds?
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