Tax Yield Investment invests in financial instruments or assets that generate regular income through interest payments or dividends, resulting in a steady yield. These investments are often considered stable and low-risk, making them attractive to income-focused investors. Examples include:
* Bonds.
* Dividend-paying stocks.
* Real estate investment trusts (REITs).
* Certain types of mutual funds.
Tax yield investments provide a way to grow wealth while potentially reducing tax liabilities on the income generated.