Collective investment fund, Taxation

A fund that is managed by a trust company or a bank and deals with pooled collection of trust accounts. Collective investment funds combine together the assets of several individuals and organizations to make a larger, well-diversified portfolio. The following are two kinds of collective investment funds: 


A1 Fund: A fund of collective assets given by either the holding bank or affiliated banks for the selective reason of investment and reinvestment. 

A2 Fund: A fund of collective assets given by pension, retirement, profit sharing, or other trusts that are free from from federal income tax

The thought of a collective fund is to reduce costs by economies of scale by combining profit-sharing funds and pensions. These pooled funds are collected into what is called as master trust account under the power of the bank, which acts as trustee, executor, guardian, or administrator.

Posted Date: 8/4/2012 6:21:39 AM | Location : United States







Related Discussions:- Collective investment fund, Assignment Help, Ask Question on Collective investment fund, Get Answer, Expert's Help, Collective investment fund Discussions

Write discussion on Collective investment fund
Your posts are moderated
Related Questions
Based on the information provided, you are to complete a 2011 Form 1040 and any supporting schedules/forms for Dave and Amy Smith. You do not need to prepare a state tax return. Yo

Explain the Negative List of Services applicable w.e.f 1,july,2012 ?

A company issues 15-year, $1,000 par-value bonds, with a coupon rate of 5%. The bonds are sold for $619.70. The tax rate is 30%. Compute the cost of debt before taxes and after tax

Sales tax, as compared to VAT is the percentage of revenue imposed on the retail sale of goods. Unlike VAT, sales tax is levied on the entire value of goods and services purchased.

Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds

Hi Dear, could you do the online exam with me !! Thank you


Hi Dear, Could you please do the online exam for ( Tax Individuals US). The exam will be ( short answers and MC ). The exam will open about one and half to two hours. The exam w

Describe the relationship between (i) future value and interest rate; (ii) future value and time period. What about the relationship between the present value and the same variable

You have been offered a unique investment opportunity today; you will receive $500 one year from now. If you invest $10,000 today, you will receive $500 one year from now, $1500 tw