Mutual funds are required by law to provide significant (or “material”) information to investors in the form of a prospectus. A prospectus is a legal document describing the history, organization, management, operations, performance, and costs of a mutual fund.
Since legal jargon can make prospectuses difficult to understand, here is a list of important points an investor should keep in mind while reading a prospectus. It is strongly recommended that potential investors read and understand the prospectus before investing. Read more