What is the primary purpose of a mutual fund's fee table?

The primary purpose of a mutual fund's fee table is to outline the fees associated with the fund. This table provides investors with a clear and detailed breakdown of all the costs that may be incurred when investing in the fund, including management fees, administrative expenses, and any sales loads. Understanding these fees is crucial for investors because they can significantly impact the overall return on investment. By reviewing the fee table, investors can make informed decisions regarding the cost-effectiveness of investing in a particular mutual fund compared to others.

While other components, such as investment strategies, historical performance, and tax information, may be relevant to potential investors, they do not specifically convey the costs associated with the investment. The fee table's straightforward purpose ensures transparency and helps investors assess how fees will affect their returns.