Index funds are still unit trusts by their very nature - and distribute net income just the same as managed funds.
Index funds buy and sell out of stocks to mirror the respective index. Although, generally, nowhere near as much as some managed funds.
In summary, index funds are just the same as the managed funds you had, and you need to wait for the AMIT/tax statement to do your tax.
If you are seeking index like returns without the hassles of the complex tax statements, you could always look at some of the old style LICs that essentially mirror certain indexes - such as AFIC, Argo etc.
Some older investors favour LICs for this reason. Wilson Asset Management focuses solely on this cohort of investors. Although, they aren't generally considered index trackers.
Depending on the index you want to track will dictate the most appropriate vehicle.
- Forums
- ASX - General
- Index funds queries.
Index funds queries., page-5
-
- There are more pages in this discussion • 2 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
CC9
Chariot Corporation (ASX:CC9) refines Black Mountain strategy, launching Pilot Mine to seize U.S. lithium opportunity