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Comparing costs
Costs are important because they lower your returns. A fund that has a sales load and high expenses will have to perform better than a low-cost fund, just to stay even with the low-cost fund.
Find the fee table near the front of the fund’s prospectus, where the fund’s costs are laid out.
Use the fee table to compare the costs of different funds.
The fee table breaks costs into two main categories:
1. sales loads and transaction fees (paid when investors buy, sell or exchange shares), and
2. ongoing expenses (paid while they remain invested in the fund).
For problems or questions concerning a mutual fund that can be addressed by the U.S. Securities and Exchange Commission, contact an SEC consumer.
Remember, there are no guarantees in mutual fund investing.
This advice is provided by the U.S. Securities and Exchange Commission.
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