What is a CEDIF?
The returns received from an investment in a CEDIF cannot be accurately estimated at the time of investment. The up-front tax benefits can be accurately calculated, however, the returns generated from operations will depend upon the performance of the investments made by the CEDIF. Most CEDIFs will not declare a dividend in the initial years of operation, and capital gains will be limited due to resale restrictions. When evaluating CEDIFs, individuals should consider them a long-term investment.