Just as getting to know someone is important before committing to a long-term relationship, getting to know your investments is equally important. Fortunately, for mutual fund investors, your fund comes with a prospectus.
Yes, a prospectus can sometimes be a tad dry and filled with legalese—not unlike a prenup.
But we’ve tried to make Vanguard prospectuses as clear and readable as possible so you can determine whether the fund’s goals are the same as yours. The prospectus can also tell you if your fund is a saver—keeping its expenses low—or a spender—for example, a fund with high expenses or high portfolio turnover rates, which can add to the fund’s transaction costs.
Wouldn’t you have liked to have known that about your spouse before you married him or her?
So if you have a bit of quiet time, get to know your fund via its prospectus.
Enjoy your day with that special person you’re investing with!