2007-02-10 02:04:09 · 4 answers · asked by David K 1 in Business & Finance ➔ Investing
The federal government move [yesterday to tax] income trusts is likely to cause an extended period of turmoil for both the stock markets and the investment portfolios of everyone who owns trusts,"
2007-02-13 17:19:49 · answer #1 · answered by sindhukannankattil 2 · 0⤊ 0⤋
Income TRUST funds (usually) pay large dividends, but these dividends are partially a return of (your own) capital. And, they usually have a limited life-span.
So... depending on a) your need for income, b) the specific fund, c) your income tax status, they can be wise or unwise investments.
2007-02-10 05:55:20 · answer #2 · answered by Puzzleman 5 · 0⤊ 0⤋
Depends what type of trusts they are invested in. USA Real Estate Income Trusts are doing well (Cohen & Steers is the expert fund company in that sector imo). Canadian energy income trusts are another story. Since the tax bomb was dropped on them last fall, they have lost value. I don't think they have stablized yet -- still too risky for me.
2007-02-10 02:19:18 · answer #3 · answered by gosh137 6 · 0⤊ 0⤋
I have Franklin Templeton Income Fund and it has treated me VERY nicely over the past 5 years.
2007-02-10 02:12:32 · answer #4 · answered by Anonymous · 0⤊ 0⤋