H-Series Cash Flow Solutions
Get the cash flow you need to live the life you want
TD Mutual Funds offer a number of solutions to help you generate
TD Mutual Funds H-Series: Benefits at a glance
Consistent monthly cash flow to meet your needs
You'll know what to expect each month so you can plan more effectively.
ExpandTax-efficient investing
ExpandPotentially lower taxes
ExpandTake part in the growth of the markets
ExpandPotential to reduce government clawbacks
ExpandSimplified tax reporting
Return of capital
TD Mutual Funds H-Series cash flow solutions take advantage of a unique distribution strategy called Return of Capital (ROC).
With a TD Mutual Funds H-Series fund or portfolio, receive a monthly distribution that's partially made up of a return of your original investment. Since you're receiving a return of your own capital, this portion of your distribution is not taxable.
Tax-deferred gains
Any capital gains you earn on your mutual fund investment will only be taxed when you sell your fund units. This allows you to effectively time your capital gain to when it suits you.
Remain invested in the fund and you can continue to defer payment of taxes on the ROC portion of the distributions.
Adjusted cost base
Although ROC distributions are not taxable when received, it is important to note the effect of ROC distributions on the adjusted cost base (ACB) of the investment. For example, ROC distributions lower the ACB of the investment so that either the capital gain will be larger, or the capital loss will be smaller, upon sale of the mutual fund.