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