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Looking Ahead To Fund Taxes


Finance

LOOKING AHEAD TO FUND TAXES

The average equity fund has an estimated tax liability of 12.9%. That means if

the fund were liquidated, roughly 13 out of every dollar would be capital

gains on which the shareholder would have to pay taxes. Investing in a fund

that already has large unrealized gains raises the potential that the investor

could be hit with a taxable distribution. A negative tax liability means that

the fund has suffered large losses. The good news is that the fund can use

those losses to shelter future gains.

'HIGH LIABILITY' FUNDS

Fund Est. tax liability

PIONEER 63.4%

FIDELITY JAPAN 49.6

METLIFE-STATE STREET EQTY. INVSTMT. A 49.1

STATE BOND COMMON STOCK 43.9

ACORN 43.6

VAN ECK INTERNATIONAL INVESTORS 43.1

PAINEWEBBER REGIONAL FINANCIAL A 42.1

ELFUN TRUSTS 41.8

SENTINEL COMMON STOCK 41.6

NEW ECONOMY 41.5

AMERICAN CAPITAL EMERGING GROWTH A 41.5

STATE BOND PROGRESS 41.2

SEQUOIA 41.1

NATIONAL TOTAL RETURN 40.7

SCHRODER U.S. EQUITY 40.4

T. ROWE PRICE NEW HORIZONS 40.2

FORTIS ADVANTAGE CAP. APPRECIATION 39.8

FIDELITY SELECT HOME FINANCE 39.6

PFAMCO SMALL CAP GROWTH 39.6

NEW YORK VENTURE 38.9

PBHG GROWTH 38.4

VANGUARD SPEC. GOLD/PREC. METALS 38.4

SMITH BARNEY SHEARSON GR. & OPP. B 38.4

FLAG INVESTORS TELEPHONE INCOME 37.4

MERRILL LYNCH BASIC VALUE B 37.3

SELIGMAN COMM./INFORMATION A 37.1

TWENTIETH CENTURY GIFTRUST 37.1

SPECIAL PORTFOLIOS STOCK 36.8

FORTIS GROWTH 36.4

FPA CAPITAL 36.1

FUNDS WITH LEAST TAX LIABILITY

Fund Est. tax liability

LEXINGTON STRATEGIC INVESTMENTS -265.7%

FLAGSHIP UTILITY INCOME A -167.1

MONITREND SUMMATION -127.4

BOSTON CO. INTERNATIONAL RETAIL -117.5

CAPSTONE NIKKO JAPAN -107.5

PUTNAM CORPORATE ASSET -97.7

UNITED SERVICES GOLD SHARES -60.3

COLONIAL STRATEGIC INCOME A -54.7

UNITED GOLD & GOVERNMENT -53.6

PRUDENTIAL GLOBAL GENESIS B -47.3

PUTNAM STRATEGIC INCOME -46.8

UNITED SERVICES EUROPEAN INCOME -43.5

GAM EUROPE -34.7

REYNOLDS BLUE CHIP GROWTH -33.2

EXCEL VALUE -31.5

CENTURION GROWTH -28.5

ALLIANCE NEW EUROPE A -26.0

JOHN HANCOCK FREEDOM ENVIR. A -25.6

UNITED SERVICES GROWTH -22.7

USAA INVESTMENT GOLD -21.5

MONITREND GOLD -20.2

MERRILL LYNCH NATURAL RESOURCES B -18.0

G.T. EUROPE GROWTH A -17.8

RODNEY SQUARE INTERNATIONAL EQUITY -16.1

IDS PRECIOUS METALS -15.4

UNITED SERVICES GLOBAL RESOURCES -15.3

INVESCO STRATEGIC ENVIR. SVCS. -15.1

FAIRMONT -14.2

YACKTMAN -13.4

DFA CONTINENTAL SMALL COMPANY -12.0

DATA: MORNINGSTAR INC.


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