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Gold/Mining/Energy : CDN. MOMO PUPPIES -- Ignore unavailable to you. Want to Upgrade?

To: Lola who wrote (7621)	9/15/1999 9:02:00 AM
From: The Osprey	Read Replies (2) \| Respond to of 36688

Fuddle...I like Lola do not quite understand your question.....However the term"refund of capital" is very close to "refund of premium" a term referred to when a person cashes out an RRSP..In Mutual funds there are two types of disributions: 1)Capital gains-realized as the portfolio manager trades the shares of the different companies.These are net gains usually.Rather than pay them out everytime a trade is done they are cumulative within the fund and paid out prior to year end so as to avoid taxation within the fund.These gains are reported on Schedule 3 and are taxed oas per all Capital Gains.(ie-if a person receives 100.00 in Capital Gains Dividends 25% are tax free and 75% is taxable at a person tax rate) 2)Income Dividends-These consist of interest and Dividends usually from bonds or other fixed debt instruments and preferreds with either a fixed or floating rate dividend as examles.The income dividend is also taxed albeit at a higher rte on interest and to a lessor extent on dividends.(Dividends qualify for the Federal dividend Tax Credit) RETURN OF CAPITAL????? The Osprey P.S.- One point I should mention is that Debt Securities are usually bought for their interest income dividends they also can be used to generate Capital gains in the right interest rate climate.In the past I have shown Conservative investors how to realize 20%+ returns on Bond Funds for example but that is another story.