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Have you ever
thought about how a fund pays for the printing and mailing of
shareholder reports or for keeping track of a shareholder's
fund account and reporting account activity to that
shareholder? Well, a fund pays for these costs and other
investment-related expenses through the fees charged to
shareholders. All mutual funds have fees because all mutual
funds have expenses. The expenses covered by these fees are
listed in detail in the fund's prospectus. This section also
includes a hypothetical example, which outlines the effect of
expenses on a $10,000 investment. All fund companies are
required to use the same assumptions for this example. That
way, it's easy for an investor to compare fees for different
mutual funds - another reason why it's important for investors
to read a fund's prospectus very carefully before investing. |