What are MICs?
ARE MICs FOR YOU?
Here are some examples of how our investors use MIC investments from Great Pacific.
Real estate owners borrow against the available equity in their property to invest in MIC funds – leveraging their equity to make a high rate of return. Please seek qualified advice prior to the use of leverage in any investment.
Investors looking to simplify their estate planning invest in MICs in joint title with family members.
Many shareholders are looking for a secure investment with higher returns than Bonds, GICs and other lower return investments so they move their investments into MICs.
Shareholders often choose to ‘try out’ MICs with a small initial investment. Most choose to increase their MIC investment over time.

The following are highlights from the Income Tax Act
- A MIC must have at least 20 shareholders.
- A MIC is generally widely held. No shareholder may hold more than 25% of the MIC’s total capital.
- A MIC has, at all times, at least 50% of its capital invested in residential mortgages and/or government insured instruments (bank deposits, treasury bills, etc.).
- A MIC may invest up to 25% of its capital directly in real estate property for income purposes but may not develop land or engage in construction.
- A MIC is a tax exempt investment vehicle, providing the MIC distributes 100% of its net income to its shareholders.
- Dividends received by MIC shareholders are taxed as interest in the shareholder’s hands.
- A MIC is an eligible investment for RRSP, RESP, RRIF and TFSA.