Timing and asset choice can help lift gains of tax-free investments
Introduced in March 2015, tax-free investments have now been available to investors for nearly three years. While this is a relatively short history, we are able to see more clearly how investors are using these investment vehicles to benefit from the tax savings they offer. Many investors have contributed on a monthly basis throughout the year and others rush to make their full annual contribution before the end of each tax year, but some are investing their maximum allowance at the beginning of each tax year, thereby gaining an additional year of tax-free investment and a corresponding boost to their investments. Among Prudential’s tax-free unit trusts, the most popular choices have been the Prudential Enhanced SA Property Tracker Fund and the Prudential Balanced Fund. One of the reasons the property fund is popular is its potential for relatively higher tax savings while also enhancing potential long-term portfolio returns, as described below. Yet no matter which tax-free investm...
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