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Wow, those turnover ratios are high! You do not share the burden of capital gains taxes, but less of your money is actually put to work due to management fees. In other words, a portion of your money is going to the fund manager who is buying and selling the stocks which make up the mutual fund. Since an index fund is basically computer driven, you don't have to pay a fund manager to trade postitions.

Read the page on this site which talks about retirement investing. You may also want to check out the section entitled "All About Mutual Funds" for more info.

Hope this helps.

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