How to Read a Mutual Fund Prospectus

What to look for in a prospectus:

• How long the fund has been around--at least 5 years will provide a decent track record.
  
  
• How well it’s performed in the past--illustrated in a line graph comparing it to an index.
  
  
• How long the money manager has run the fund and/or has experience in the industry.
  
  
• Your cost--look for a table illustrating how much you pay a year for every $1,000 invested.