The payments made to a fund's shareholders that result from the sale of securities in the fund's portfolio are called:   Question 4 options:   income dividends.   capital gain distributions

1. **Definition of Carried Interests:* - Carried interests are a share of profits that general partners in an investment fund receive as compensation. These interests represent a percentage of the fund's profits and are typically awarded to the fund managers as an incentive to achieve positive returns. The taxation of carried interests involves considerations for both the fund managers and the investors in the fund. 2. **Taxation of Carried Interests:** - The tax treatment of carried interests is a complex process. Typically, fund managers pay taxes on their carried interests at capital gains rates, which are often lower than ordinary income tax rates. This treatment is subject to specific conditions, including holding the investment for a certain period. Investors, on the other hand, may also be subject to tax implications based on their share of profits from the fund. 3. **Impact on Financial Reporting:** - The accounting for tax on carried interests is an essential aspect of…

The FTSE 100 Index is an example of a benchmark for measuring the performance of an Equity fund. What is the role of a benchmark in measuring performance of a fund? Give an example of a Bonds Benchmark.

Identify which of the following is/are types of distributions of Mutual Fund Trust: a. All of the choices b. Capital Distributions c. Capital Gains d. Eligible Dividends X e. Canadian Interest Income