Some funds do not charge distribution fees. Redemption fees are charged in an effort to discourage frequent trading. These fees apply when an investor withdraws money from the fund. Reinvestment fees are charged when distributions are reinvested in the fund. Exchange fees sometimes apply when money is transferred from one fund to another within the same mutual fund company.
Every prospectus is required to show a condensed financial statement in a table format.
The table will show the annual performance over the last 10 years or over the life of the fund whichever is shorter. The prospectus will tell you how to go about buying and selling shares of the fund. It will also outline services and options that are offered to shareholders. Investment options allow you to buy over the phone, via mail, through a broker, or with automatic direct deposit. Exchange services allow investors to move money between funds.