As a Canadian, we are often confronted with many different options in life. From what type of care we buy to what mortgage do I need or what kind of investment is good for me. First, let’s start out and get to the root of what the definition of “unbiased” means. Webster’s dictionary defines it as “free from all prejudice and
favoritism”.

The recent Federal Budget included measures to close a favorable tax rule for investors in investment accounts or through corporations, trusts and holding companies, who have proposed rules to curb the tax advantages of “corporate class” mutual fund shares.

Corporate class funds are organized as “switch funds” that offer different types of asset exposure such as Canadian equities, global equities, and various types of bond funds and other investment categories. Each fund is set up as a separate class of shares within the same mutual fund corporation, which allows investors to take profits in one type of fund or switch for other tactical reasons without triggering a disposition for tax purposes.