What are Tax-free investments
admin August 14th, 2008
Tax-free investment is a type of an investment, the returns from which are not taxable. Unlike the other types of investments, all incomes from tax-free investments are exempted under the financial law.
The tax-free investments are divided into two categories, such as variable and fixed.
For the variable tax-free investment, as the name suggests, the amount of returns depends on the market conditions and performance of the investment. The other form, fixed tax-free investments, the investors gets fixed return on investment on the actual sum invested. The income is fixed in case of the latter, and unexpected for the former.
The added advantage of this investment is that the tax on capital gains is not imposed on the returns. Tax-free investments can be one of the best investment options for all.