The 50% Rule: Keep More Profit in Your Wallet

Abstract

This article evaluates the portion of the profit from various investments—index funds, active mutual funds, private equity funds, and hedge funds—that actually accrue to the taxable owner of the capital at risk. It then compares how the returns to taxable investors compare with tax exempt ones and explores the implications of these differences and their potential impact on investment strategy.

TOPICS: Wealth management, real assets/alternative investments/private equity, mutual funds/passive investing/indexing, performance measurement