Planning & Education | Investing for Tax-Efficiency

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Investing for Tax-Efficiency

Consider a tax-smart investment approach.

With these tax-smart investment alternatives in mind, take a look at your own portfolio: are the equity funds you're invested in producing too large a tax bill for you annually? If so, you may want to consider adding a tax-smart investment alternative to your portfolio. Of course, before investing in any fund, you should also consider its risks as well as your own investment objective and portfolio allocation.

The following funds are some of Dreyfus' potentially tax-efficient offerings.

Dreyfus Funds

Dreyfus Appreciation Fund¹ — The fund seeks long-term capital growth by investing primarily in large, multinational blue chip companies using a strict buy-and-hold discipline.
Dreyfus BASIC S&P 500 Stock Index Fund^1,2 — This fund is designed to match the investment returns of the Standard & Poor's 500 Composite Stock Price Index. This fund has a higher investment minimum of $10,000.
Dreyfus S&P 500 Index Fund^1,2 — This fund is also designed to match the investment returns of the Standard & Poor's 500 Composite Stock Price Index.
Dreyfus Tax Managed Growth Fund — The fund's express objective is to seek long-term capital appreciation consistent with minimizing realized capital gains and taxable current income. To pursue its goal, the fund normally invests at least 80% of its assets in common stocks and employs a tax-managed strategy.
Dreyfus Worldwide Growth Fund, Inc.¹ — The fund seeks long-term capital growth by investing primarily in large, multinational blue chip companies using a strict buy-and-hold discipline.

Next: Index Funds

1. Achieving tax efficiency is not part of the fund's investment objective, and there can be no guarantee that the fund will achieve any particular level of taxable distributions in future years. In periods when the manager has to sell significant amounts of securities (e.g., during periods of significant new redemptions or exchanges in index components), funds can be expected to be less tax efficient than during periods of more stable market conditions and asset flows. There is no guarantee that the fund will achieve any particular level of distributions annually or achieve any level of tax efficiency.

2. The S&P 500 is a trademark of the McGraw-Hill Companies, Inc. and has been licensed for use by the fund. The fund is not sponsored, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the fund.

3. Income from municipal bonds may be subject to state and local taxes. Dividend income from equities, and any capital gains, paid by the fund are taxable.

This information is general in nature and is not intended to constitute tax advice. Always consult your tax advisor for more detailed information on tax issues and advice on your specific situation.

Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. Download a prospectus that contains this and other information about a fund, and read it carefully before investing.