Trust or corporation? Open-ended or closed-end? Two separate questions.
For educational purposes only. Simplified illustrations to help you understand how things work. Not financial, investment or tax advice, and not a recommendation.
Two separate questions: how is the fund taxed (trust or corporation), and how do you buy and sell it (open-ended or closed-end)? Tap a box.
TrustCorporationOpen-endedClosed-end
Trust · open-ended
Buying & selling
Buy or sell units with the fund itself, at its daily value (NAV).
Tax
Passes its income and gains to unitholders each year; they pay the tax.
Trusts pass income to investors, who pay the tax
Open-ended funds are bought from the fund at its daily value
