Asset managers are jumping on the so-called tax-aware bandwagon, with a spate of mutual funds aimed at minimizing the tax burden for investors.

The strategy is paying off. Prudential Investors raised more than $200 million in one month in its Tax-Managed Equity Fund, which began trading March 4. Tax-aware funds were recently launched by American Century, Barrett Associates Inc., SunAmerica Inc., and SunTrust Banks Inc.

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