Investor tax benefits of the customizable fund

Updated by Sanjay Vora

For investors, one of the advantages of a customizable fund is that you may be able to select your the investments you want to participate in. This benefit is not just for selecting the investments but also then passes through to tax benefits.

The Avestor platform tracks each investor's pro-rata share of an investment inside a fund. When the fund receives its tax information for each investment, we can then calculate each investor's pro-rata share of business income, real estate income, interest, dividends and then pass that through to the investor.

This allows each investor to see the tax direct benefits of the investments they are participating in within a fund. For example, if a real estate investment had a large amount of depreciation in its first year, the investors that participated in that investment would be able to get a pass through of their pro-rata share of that depreciation on their tax return from the fund.

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