Advertisements, rankings, and ratings tell you how well a fund has performed in the past. But studies show that the future is often different. This year's No. 1 fund can easily become next year's below-average fund. In stock funds, volatility is measured by Beta. In bond funds, volatility is best determined by bond maturity.
Bonds maturing in thirty years have more volatility than bonds maturing in five or ten years.
For stock funds, the Beta number tells how volatile the fund is compared to the overall stock market. When the Beta is .85, the fund will only rise 85 percent of the index, but it also falls only 85 percent as much as the index. When the Beta is 1.15, the fund will move 115 percent compared to its index, so there will be a larger gain but also a greater risk of losing more money than a comparable index. Research reports, like Morningstar , provide Beta. Current Mutual Fund Fees Mutual fund fees are reported in the prospectus or fund profile which can be obtained from a broker or investment company.