How to Compare Funds

Choosing the right funds — and trusting your decisions enough to back them with your money — can be difficult. To keep from getting overwhelmed, be sure you understand investment objectives. Then look only at the funds that aim for the same thing. Information on a fund's investment objectives can be found in a number of places:

The fund prospectus

The prospectus is essentially the user's manual for a mutual fund. The SEC requires every fund to publish a prospectus and update it annually. It covers all of the important elements, such as the history, management, financial condition, performance, expenses, goals, strategies, types of allowable investments, and policies.

Independent rating services

Independent rating services, such as Morningstar®, Lipper and Barrons, provide detailed information about a fund, but may charge for their services. These services typically provide you with a rating or ranking of a fund based on its performance relative to its broader peer group, and offer an opinion about a fund's management team and operations.

AARP Financial Inc. does not provide tax advice. Please consult a tax advisor for information pertaining to your particular situation.

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The Financial Advisors are investment adviser representatives of AARP Financial Inc., an investment adviser.

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