Long-held theories of how to achieve tax efficiency in mutual fund investing are again being questioned.

According to a new study, "Mutual Funds and Taxes: Myths, Life Cycles and Strategies," the lifecycle of mutual funds -- whether they are new to market or old standbys -- should be taken into account when assessing their tax efficiency. The study concludes that smaller, younger and more concentrated funds run by experienced, disciplined managers are likely to be the most tax-efficient.

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