Before you invest in mutual funds through E*TRADE Securities, please read the following:
A mutual fund's prospectus contains its investment objectives, risks, charges, expenses, and other important information and should be read and considered carefully before investing. For a current prospectus, visit etrade.com/mutualfunds.
- We provide you with the ability to invest in thousands of mutual funds directly using your personal device. By making a mutual fund or mutual fund family available to you, however, we do not make any representations, endorsements, or guarantees regarding the appropriateness, quality, or suitability of any mutual fund and we make no recommendation of any kind.
- We provide, for informational purposes only, data about the various mutual funds published by independent third parties, such as Morningstar, Inc. and Markit on Demand. Fund commentary may also be provided by Morgan Stanley Investment Management Inc. (MSIM).While we believe that the data provided by these third parties is reliable, we have no independent basis to verify or contradict the accuracy or completeness of the information provided.
- You can obtain the prospectus online for mutual fund shares available for purchase through E*TRADE Securities at www.etrade.com/mutualfunds. Read the prospectus carefully before you invest in the securities of any mutual fund. The prospectus contains important information about the goals, risks, expenses, and investment strategies applicable to the fund. We do not guarantee or verify the accuracy or completeness of any mutual fund's prospectus, statement of additional information, report to shareholders, or proxy solicitation materials.
- Past performance is not an indication of future results and mutual fund investment returns and share prices will fluctuate daily. Your investment may be worth more or less than your original cost when you redeem your shares. Current performance may be lower or higher than the performance data quoted.
- An investment in any money market mutual fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investments at $1.00 per share, it is possible to lose money by investing in the fund. Money market mutual funds may be subject to liquidity fees and redemption gates if determined appropriate by the money market mutual fund's board. If a redemption gate is imposed, you will not be allowed to sell your positions and redeem shares from that money market mutual fund until the gate is lifted. If a liquidity fee is imposed, the liquidity fee will be deducted from the cash proceeds when you redeem your shares. You will receive the cash proceeds less the liquidity fee and any other applicable fees. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. Institutional accounts and trust accounts are restricted from purchasing money market mutual funds through E*TRADE Securities LLC.
- Many mutual funds offer different pricing arrangements or “classes” of shares. Each class represents an investment in the same mutual fund but offers you a choice of how and when to pay for fund distribution. The most common shares classes for retail brokerage customers like you are A and C share classes. Class A shares typically assess a front-end sales charge while Class C shares utilize a level sales charge structure. Class B shares have a deferred sales charge structure. These sales charges can be referred to as “loads”. The money assessed from sales loads generally is used to help market the shares of a particular fund. We may receive all or part of a sales load in connection with your purchase or sale of a fund's shares. What class is more appropriate for you will depend on your holding period, whether you intend to make additional future investments, the size of your investments, and whether you may qualify for sales charge discounts.
- Some funds impose a marketing fee, known as a "12b-1 fee." This fee is computed into a fund's overall expense ratio and is used to help market the shares of that fund and cover marketing, distribution and/or shareholder services costs. They may also be used, in part, to offset the amounts payable by the fund’s principal distributor as compensation to selling firms where the fund share class does not have a front-end sales charge. E*TRADE Securities may receive 12b-1 fees in connection with your purchase of a fund's shares. The expense table in the fund’s prospectus will indicate if the fund charges a 12b-1 fee.
- E*TRADE Securities may impose a transaction fee for the purchase or sale of shares of a fund that does not impose a sales load. Such fees are not reflected in a fund's performance data. If these fees were factored into the performance, the fund's results would be lower. You may be able to purchase shares of a fund directly from, or redeem shares directly to, such fund without paying a transaction fee.
- Not all funds are registered for sale in all states, and particular mutual funds may not be available for sale outside the United States. By making transactions in a particular fund's shares available at E*TRADE Securities, we do not represent or otherwise guarantee that such fund's shares are registered for sale for your account.
- A fund's management may have waived all or a portion of the fees owed it by the fund. This would have an effect of increasing the fund's performance returns. If these fees were factored into calculating the fund's performance returns would be lower. There is no guarantee that such fees will continue to be waived in the future. For more information about the fee waivers, read the fund's prospectus carefully.
- As a mutual fund shareholder, you may receive taxable dividends and/or capital gains, even from a fund that purports to be "tax exempt." After paying income taxes, your after-tax investment returns will be lower than your pre-tax returns. E*TRADE Securities does not offer tax advice. We suggest you consider the impact of taxes. For further information about taxes, read the fund's prospectus and/or consult with your tax advisor.
- Indices are unmanaged and index funds are minimally managed. Payment of expenses associated with an investment in an index fund, including advisory fees, are not reflected in the overall performance of a particular index. Investors are not able to directly invest in an index.
- Mutual fund transactions typically settle one (1) day after the trade date. As a result, proceeds from the sale of mutual fund shares will not be available for withdrawal until the day after settlement. In addition, full or partial sell orders entered on the settlement date of a mutual fund's purchase may not execute or may not fully execute. Please use "View Orders" to review the status of orders.
- More information about mutual funds can be found on the websites sponsored by the U.S. Securities and Exchange Commission (www.SEC.gov), the Financial Industry Regulatory Authority (www.FINRA.org), the Securities Industry and Financial Markets Association (www.sifma.org) and the Investment Company Institute (www.ICI.org).