Warning: A large diet of initial public offerings may be hazardous to your investment health.

The warnings are not that stark, of course. But some mutual funds are quietly adding to prospectuses and other public documents, information about risks inherent in funds' initial public offering investments. The disclosures generally warn that IPOs may be boosting fund performance to a level that may not be sustainable long term, especially as a fund's assets increase.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.