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How Taxes Erode Returns

A landmark study of data for the 30 years ended 1992 found that taxes had the 
following effect on a $1 investment in a median-performing equity fund. Taxes 
remain a big cost in mutual-fund investing today.

PRETAX RETURN                          $21.89

AFTERTAX RETURN FOR                     12.75
 A MIDDLE-BRACKET INVESTOR*

AFTERTAX RETURN FOR                      9.82
 A HIGH-BRACKET INVESTOR*

* Federal taxes only, before liquidation

DATA: JOEL M. DICKSON, JOHN B. SHOVEN


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Updated Nov. 6, 1997 by bwwebmaster
Copyright 1997, Bloomberg L.P.
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