According to Checklist 15.1, tax efficiency is a key area to research when choos­ing a mutual fund. Look up five different large-cap, growth mutual funds at finance.yahoo.com/funds. There is no www in front of this Web address and www.morningstar.com, or the fund's Web site and make note of the portfolio turnover rate, the performance, and the tax efficiency of each fund. According to your research, does there seem to be any correlation between either the turnover rate or the performance of the fund and its tax efficiency?

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CHECKLIST 15.1 Buying a Mutual Fund Before you buy a mutual fund, can you answer these questions? How has this fund performed over the long run? Have I obtained an independent evaluation of this fund? What specific risks are associated with this fund? What type of securities does the fund hold? How often does the portfolio change? How does the fund perform compared to other funds of the same type or to an index of the same type of investment? What is the fund's expense ratio? How much will the fund charge me when I buy shares? What other ongoing fees are charged? How tax efficient is this fund?