Implication being payments received are tax deferred. Ie if you invest 1000 and get 10%
- first 10 years payments of 100 are tax free
- cost basis of shares go to 0
- payments beyond 10 years are cap gains
- selling your investment for 1000 would trigger a cap gains (long term if held more than a year)
Very different than a Money market fund
Can be more tax efficient if you have a 1+ year holding period