You have seen it in the footnotes of any marketing materials: “Please read the prospectus carefully before investing.” Going through one is not very enjoyable given the legalese in which they are written. However, there is quite a bit of useful information, so if you have never read one, I suggest you do. It can help you discern whether a fund is active or passive, gives you estimates of the cost of investing, and help you decide whether the fund should be in your portfolio, or at least weed out funds that should not be.

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