Does this investment match my investment goals? Why is this
investment suitable for me?
How will this investment make money? (dividends? interest? capital gains?)
What could cause this investment to increase or decrease in value? (for example, changes in interest rates, real estate values, or market share?)
What are the total fees to purchase, maintain, and sell this investment?
Are there ways that I can reduce or avoid some of the fees that I’ll pay, such as purchasing the investment directly? After all the fees are paid, how much does this investment have to increase in value before I break even?
How liquid is this investment? How easy would it be to sell if I needed my money right away?
What are the specific risks associated with this investment? What is the maximum I could lose? (for example, what will be the effect of changing interest rates, economic recession, high competition, or stock market ups
and downs?)
How long has the company been in business? Is its management
experienced? Has management been successful in the past? Have they ever made money for investors before?
Is the company making money? How are they doing compared to
their competitors?
Where can I get more information about this investment? Can I get the latest reports filed by the company with the SEC: a prospectus or offering circular, or the latest annual report and financial statements?
Questions for Mutual Funds and Exchange Traded Funds (ETFs)
How has this fund performed over the long run? Where can I find an independent evaluation of this fund?
What specific risks are associated with this fund?
What type of securities does the fund hold? How often does the portfolio change?
Does this fund invest in any type of securities that could cause the value to go up or down rapidly in a short period of time? (for example, derivatives?)
How does the fund perform compared to other funds of the same type or to an index of the same type of investment?
How much will the fund charge me when I buy shares? What ongoing fees are charged? How much will the fund charge me when I sell shares?
Is the fund portable? If I move my assets to another firm, will I be able to continue holding the fund or will I need to liquidate it?