Mutual Funds
A mutual fund is an investment product that pools together money from many people, and invests it in stocks, bonds, or other securities. Mutual funds allow you to invest in a wider range of securities than you would usually be able to, if you were buying from individual companies, without bearing the total risk or cost of such investments.
Each investor owns shares in the mutual fund that represents his part of the investment.
The value of your share in the fund represents how much your investment in worth. The value of a mutual fund’s shares is determined by dividing the total value of the fund’s assets by the total number of shares. This value is called the Net Asset Value (NAV).
The purchase of offer price of the fund’s shares is the Net Asset Value and this price will be published weekly in the local newspaper.
Your initial investment can be no less than $500.00 BDS after which a minimum of $100.00 BDS can be contributed at a time. Withdrawal or redemption of partial or the full amount of the value of your investment is allowed but may be subject to tax penalties if there was an initial tax advantage.
The 1996 budget established tax advantages for investing in mutual funds. An annual allowance of up to $10,000.00 can be deducted from your income. If the investment is held for 5 years, no tax liability will arise.
If you need further consultation on this or any other insurance / financial matter please call on one of the licensed insurance and mutual fund representatives at At Field Insurance Brokers Inc.we can determine the type of plan that best suits your needs after an analysis.
There are special tax advantages for investing in Mutual Funds. An annual tax allowance of up to $10,000 can be deducted from your income.
Annual bonus converted to Mutual Funds will attract a further tax allowance of 75% of the value of bonus.
N.B Taxation is a complex subject, and whilst every care has been taken to present these highlights, no decision should be taken based on it without professional advice.