Yes, that is correct. But in the case of a Corporate Class fund (which is a type of fund series) you can have a bond fund which earns interest. At the end of the day though, you take out the money and receive capital gains instead. In other words you can have the "security" or risk of a bond fund, with the tax implications of a capital gain. There is a brand new series available through one particular company where you can actually select how you would like to receive your money; interest, capital gains or dividend income.....very slick, totally legit and very, very tax efficient if it is done correctly.
|