Are Mutual Fund investment returns taxable?
1. Risk of Decreasing Net Asset Value of Each Participation Unit
The value of Mutual Fund Participation Units may fluctuate due to the increase or decrease in Net Asset Value (NAV). This decrease in NAV can be caused by changes in the prices of securities in the portfolio, fees incurred with each investor's purchase and redemption, as well as in the event of default by relevant parties.
2. Risk of Default (credit)
The Investment Manager will strive to provide the best investment results to the Unit Holders. However, in exceptional circumstances (force majeure), the issuer of the securities in which the Mutual Fund invests may default in fulfilling its obligations.
3. Risk of Regulatory Changes
Changes in existing regulations, tax policies, and government policies, especially in the field of macroeconomics related to equity and/or debt securities, can impact the rate of return and investment results that the Mutual Fund will receive. This can result in a reduction of the potential investment returns that Unit Holders may receive.