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A Less Taxing Investment Approach

2) ROYCE TOTAL RETURN FUND (RYTRX)Turner considers this blended fund a consistent dividend-paying small- and micro-cap performer. Based in New York City, it is held by The Royce Funds. Turner characterizes the fund as a lower risk investment in a category that can often be volatile as it focuses on up-and-coming companies. The $4.79 billion fund has below average expenses for its category. Its portfolio is built on a foundation of U.S. companies that comprise 85.4% of the total, with an average market capitalization of up to $2.5 billion. Since its 1993 inception, the fund has had an average total return of 10.88% compared with its benchmark, the Russell 2000, with 8.23%. Recently the greatest gains came within the financial, industrials, and consumer discretionary sectors. Among its top 10 stocks held are Ascena Retail Group, Federated Investors, and Erie Indemnity. The Royce Total Return Fund is best kept in taxable accounts where its growth orientation may take advantage of the long-term capital gains preferential tax rates.
Total fund assets: $4.79 billion
Yield: 0.93%
One-year return: -5.95%
Three-year return: 14.71%
Five-year return: 0.04%
Minimum taxable investment: $2,000
Expense ratio: 1.12%

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