1. Past performance is no indication of future results, and values fluctuate
Fund historical performance does not promise the same results in the future. Principal value, share prices and investment returns fluctuate with changes in market conditions. Your investment may be worth more or less than your original cost when you redeem your shares.
2. Read the prospectus carefully
Before you invest in any fund, request a copy of the fund's prospectus. The prospectus contains information on a fund's objectives and strategies, risks and expenses. Read it carefully to make sure that the fund is appropriate for your goals and risk tolerance before you purchase a fund.
3. Reliable sources
Schwab and other data providers believe the information has come from reliable sources, but we can't guarantee its completeness or suitability for any purpose.
4. Special risks of international and small-cap investing
Some funds invest in international securities, which can involve different risks than U.S. investments. The risks include political and economic instability, changing currency exchange rates, foreign taxes and differences in financial accounting standards. You should pay attention to these risks if you're considering investing in an international or global fund. Historically, small-cap stocks have been more volatile than the stocks of larger, more established companies.
5. The impact of taxes
As a mutual fund shareholder, you may receive taxable dividends and capital gains. Taxes on such items can affect the returns you realize from your mutual fund investment. At Schwab, we don't offer tax advice except to suggest that you consider the impact of taxes and that you may want to consult with your tax advisor before making any mutual fund investment. Income you receive from your investments may be subject to the Alternative Minimum Tax (AMT). Please consult your tax advisor.
6. Waiving fees
For some funds, the manager may have waived all or a portion of the fees during a given period. This fee waiver would have the effect of increasing the fund's reported returns and should be weighed in evaluating the fund's performance. You can find out if a manager has waived any fees by reading the prospectus.
7. Sales charges and transaction fees
For funds with sales charges or loads, the performance data reflects the maximum charges. Schwab charges transaction fees on some mutual fund purchases and redemptions, which are not reflected on performance data. If the fees were factored into the performance, then the fund's results would be lower.
8. Fund registration
Not all funds are registered for sale in all states. Ask a Schwab Investment Specialist about the availability of specific funds in your state. In addition, not all securities, products and services described here are available outside of the United States. The information contained in these pages is not an offer to sell or a solicitation of an offer to buy the securities, products or services mentioned here, and no offers or sales will be made in jurisdictions in which the offer and sale of these securities, products and services is not qualified or otherwise exempt from regulation.
9. Indices are unmanaged
Indices are unmanaged and do not reflect the payment of advisory fees and other expenses associated with an investment in a fund. Investors cannot directly invest in an index.
10. Money market fund's stable share price
Money market funds are managed to maintain a stable $1.00 share price. An investment in the fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
Morningstar, Inc., an independent firm that tracks the investment industry, provides the performance data for Schwab use. Charles Schwab & Co., Inc., member SIPC, receives remuneration from fund companies in the Mutual Fund OneSource® program, for record keeping and shareholder services, and other administrative services.
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