Business and Personal Finance Dictionary

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• TAX EFFICIENT PORTFOLIOS
  
  Are investment holdings which have both trading profits and tax minimization impact as goals. These portfolios recognize that the subsequent payment of taxes reduces the investor's after tax returns. When holdings are held by pension plans or tax deferred accounts, there is no immediate tax liability on realized gains. However, an investor holding mutual funds which have high rates of security turnover and significant realized gains are subject to immediate tax year liabilities.
  
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