investing in your future

Reviewing a Mutual Fund Prospectus

The price of a single mutual fund share is known as its “net asset value” or NAV. You can check how it’s doing in the newspaper business section or online just like you do for other stocks. Before you invest, you’re required to receive a mutual fund prospectus. What does it include?

1. It lists the fund contents, objectives, costs, and conditions.
2. It describes how much money you’re guaranteed to make from the mutual fund.
3. It shows how you can use the mutual fund to accomplish your own goals.

“A” is correct. Before you invest, see how the fund has performed over time and compare it to other similar funds. Check its Morningstar performance rating. Also check if it’s a “load,” (fee upfront or later) or “no load” (without fees) fund. Even when a fund is “no load,” it will still charge for certain expenses. Click here to compare mutual fund costs.