Reading a mutual fund's prospectus. You should consult the fund's prospectus before investing in a mutual fund. The prospectus is a fund's selling document and contains important information about costs, risks, past performance and the fund's investment goals. A prospectus can be obtained from either the fund family or your financial professional. The fund's fees and expenses.
Funds charge investors fees and expenses.
A fund with high costs generally must perform better than a low-cost fund to generate the same returns. Small differences in fees can translate into large differences in returns over time. The fund's impact on your tax bill. If a fund sells a security for a profit, and that profit can't be offset by a loss, the fund is required to make a capital gains distribution to its shareholders. The age and size of the fund.