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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