A Guide to Financial Planning: Mutual Funds—Key Points to Remember

• Mutual funds are not guaranteed or insured by the FDIC or any other government agency—even if you buy through a bank and the fund carries the bank’s name. You can lose money investing in mutual funds.

• Past performance is not a reliable indicator of future performance. So don’t be dazzled by last year’s high returns. But past performance can help you assess a fund’s volatility over time.

• All mutual funds have costs that lower your investment returns. Shop around, and use a mutual fund cost calculator at sec.gov/investor/tools.shtml to compare many of the costs of owning different funds before you buy.