As a rule, non-diversified funds are generally more volatile than diversified funds. Financial highlights also include any distributions the fund has paid, its performance, history of expenses and assets, and its turnover rate. An increasing turnover rate can result in an increasing tax liability for the fund. Transaction and operating expenses. Review it carefully.
Most funds charge redemption or exchange fees.
Some funds also charge a maintenance fee to shareholders whose balances drop below a certain amount. A prospectus also spells out the methods of purchasing, redeeming and making additional investments in the fund. Most policies vary from fund to fund, so be sure to read through the prospectus carefully. For example, some funds allow telephone transactions, while others have low purchase requirements if you set up an automatic investment plan. Fund prospectuses include a great deal of valuable information.