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.
      

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