Businessweek Archives

The Tax Test: How Does Your Fund Stack Up?


Finance

THE TAX TEST: HOW DOES YOUR FUND STACK UP?

The table shows pretax and aftertax average annual returns for the 50 largest

equity mutual funds with at least 10-year track records. The pretax return is

appreciation plus reinvestment of dividends and capital gains distributions. To

determine the aftertax return, Morningstar Inc. "taxed" each fund's dividends

and capital gains distributions using the maximum federal income and

capital-gains tax rates for each appropriate year. Short-term and long-term

capital gains are taxed at the same rate. The column "estimated tax liability"

shows the percentage of a fund's assets that might be paid out as taxable gains

were the fund to liquidate all its holdings today.

Fund Three-year avg. Five-year avg.

annual return* annual return*

Pretax Aftertax Pretax Aftertax

FIDELITY MAGELLAN 24.2% 20.8% 20.8% 17.7%

INVESTMENT COMPANY OF AMERICA 16.2 14.5 15.3 12.9

WASHINGTON MUTUAL INVESTORS 18.0 16.3 14.9 13.0

VANGUARD/WINDSOR 20.2 17.1 13.2 9.9

INCOME FUND OF AMERICA 17.5 14.9 13.9 11.2

JANUS 19.9 18.3 21.0 18.3

FIDELITY PURITAN 19.9 17.4 14.8 12.0

VANGUARD INDEX 500 16.2 15.0 15.6 14.1

TWENTIETH CENTURY ULTRA INVESTORS 36.8 36.7 29.7 28.6

VANGUARD/WELLINGTON 15.9 14.0 13.3 10.8

FIDELITY EQUITY-INCOME 19.8 17.9 13.3 11.0

DEAN WITTER DIVIDEND GROWTH 17.4 16.3 15.6 14.0

VANGUARD/WELLESLEY INCOME 17.4 14.8 14.7 12.0

AMERICAN MUTUAL 15.8 13.4 13.8 11.1

FIDELITY CONTRAFUND 32.0 30.4 27.5 25.8

AIM WEINGARTEN 14.8 14.3 17.1 16.3

TWENTIETH CENTURY SELECT INVESTORS 13.3 11.5 16.1 14.5

GROWTH FUND OF AMERICA 19.5 17.8 16.5 14.3

PUTNAM FUND FOR GROWTH & INCOME A 16.1 13.3 14.9 11.9

TWENTIETH CENTURY GROWTH INVESTORS 18.1 17.1 19.6 18.5

PRUDENTIAL UTILITY B 18.1 16.1 16.4 14.0

PIONEER II 15.2 13.1 12.2 9.4

TEMPLETON WORLD 15.1 11.5 12.1 9.1

NEW PERSPECTIVE 13.7 12.2 14.5 12.2

AFFILIATED 16.5 13.6 13.5 10.6

FRANKLIN INCOME 21.0 17.6 14.6 10.9

TEMPLETON GROWTH 16.1 12.8 14.5 11.6

INVESCO INDUSTRIAL INCOME 19.5 17.1 18.2 15.3

FRANKLIN UTILITIES 20.1 17.9 15.7 13.4

IDS NEW DIMENSIONS 21.6 18.9 20.8 18.4

MUTUAL SHARES 18.6 16.4 13.3 10.3

T. ROWE PRICE INTERNATIONAL STOCK 9.4 7.7 12.5 10.1

DREYFUS 11.9 10.1 11.5 9.4

NICHOLAS 19.3 18.0 14.8 13.4

AMCAP 18.0 15.7 15.0 12.3

PHOENIX BALANCED 14.2 11.5 14.7 12.3

FIDELITY DESTINY I 26.0 22.3 19.5 16.1

UNITED INCOME 17.7 16.0 15.7 13.3

FIDELITY RETIREMENT GROWTH 20.9 18.0 17.3 14.9

IDS MUTUAL 17.2 14.0 13.3 9.9

PHOENIX GROWTH 12.6 10.0 14.1 11.9

PUTNAM VOYAGER A 25.8 23.5 21.0 18.7

AIM CONSTELLATION 30.4 30.3 24.5 22.6

AMERICAN CAPITAL PACE A 14.6 11.9 13.9 11.2

TEMPLETON FOREIGN 10.3 7.9 15.4 12.7

FIDELITY GROWTH COMPANY 23.6 22.3 22.8 21.1

MERRILL LYNCH CAPITAL A 15.2 12.9 14.0 11.5

MERRILL LYNCH BASIC VALUE A 18.1 16.0 12.7 10.6

PIONEER 15.6 12.4 12.5 9.5

VANGUARD U.S. GROWTH 14.1 13.6 17.0 16.5

Fund Ten-year avg. Est. Net

annual return* tax assets

Pretax Aftertax liab. (bill.)

FIDELITY MAGELLAN 18.5% 15.5% 21.9% $29.8

INVESTMENT COMPANY OF AMERICA 15.3 12.5 23.1 18.5

WASHINGTON MUTUAL INVESTORS 15.3 12.7 22.2 12.3

VANGUARD/WINDSOR 15.6 11.3 14.5 10.6

INCOME FUND OF AMERICA 14.2 10.5 10.3 9.5

JANUS 15.0 11.7 11.2 8.7

FIDELITY PURITAN 15.0 11.2 17.5 8.3

VANGUARD INDEX 500 14.6 12.4 13.0 7.9

TWENTIETH CENTURY ULTRA INVESTORS 15.7 13.9 30.1 7.5

VANGUARD/WELLINGTON 13.9 10.7 16.0 7.4

FIDELITY EQUITY-INCOME 13.6 9.9 17.9 6.3

DEAN WITTER DIVIDEND GROWTH 14.9 13.0 25.7 6.2

VANGUARD/WELLESLEY INCOME 14.6 10.8 10.4 5.4

AMERICAN MUTUAL 14.1 11.1 26.6 5.3

FIDELITY CONTRAFUND 18.1 15.8 14.4 5.2

AIM WEINGARTEN 14.5 12.5 12.0 5.2

TWENTIETH CENTURY SELECT INVESTORS 12.9 10.9 27.6 5.1

GROWTH FUND OF AMERICA 14.2 12.0 24.7 5.0

PUTNAM FUND FOR GROWTH & INCOME A 15.0 10.8 11.7 5.0

TWENTIETH CENTURY GROWTH INVESTORS 14.1 11.8 26.9 4.7

PRUDENTIAL UTILITY B 19.1 15.6 22.8 4.7

PIONEER II 11.6 8.7 NA 4.4

TEMPLETON WORLD 13.6 10.3 26.2 4.4

NEW PERSPECTIVE 15.2 12.3 7.4 4.3

AFFILIATED 13.8 9.9 22.6 4.2

FRANKLIN INCOME 14.1 9.6 12.4 3.8

TEMPLETON GROWTH 14.6 12.1 25.5 3.8

INVESCO INDUSTRIAL INCOME 16.5 12.4 2.0 3.6

FRANKLIN UTILITIES 15.0 11.9 17.0 3.6

IDS NEW DIMENSIONS 16.2 12.7 23.5 3.4

MUTUAL SHARES 16.2 12.9 25.8 3.4

T. ROWE PRICE INTERNATIONAL STOCK 17.5 14.3 12.2 3.2

DREYFUS 11.7 8.0 19.8 3.1

NICHOLAS 13.7 11.8 28.1 3.1

AMCAP 12.6 10.2 NA 3.1

PHOENIX BALANCED 14.8 11.1 5.8 3.0

FIDELITY DESTINY I 17.2 13.2 28.8 3.0

UNITED INCOME 16.7 13.5 32.0 2.9

FIDELITY RETIREMENT GROWTH 15.8 12.6 18.1 2.8

IDS MUTUAL 14.3 10.0 12.9 2.8

PHOENIX GROWTH 14.7 11.5 4.3 2.6

PUTNAM VOYAGER A 16.1 13.5 25.6 2.6

AIM CONSTELLATION 16.1 13.0 19.3 2.5

AMERICAN CAPITAL PACE A 11.2 8.6 NA 2.5

TEMPLETON FOREIGN 17.4 15.0 13.3 2.4

FIDELITY GROWTH COMPANY 16.2 14.4 21.8 2.3

MERRILL LYNCH CAPITAL A 14.5 11.3 NA 2.2

MERRILL LYNCH BASIC VALUE A 14.6 11.8 30.3 2.1

PIONEER 11.7 8.5 63.4 2.0

VANGUARD U.S. GROWTH 12.2 9.3 7.0 2.0

*Appreciation plus reinvestment of dividends and capital gains for periods

ending Aug. 31, 1993 NA=Not available

DATA: MORNINGSTAR INC.


Steve Ballmer, Power Forward
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus