What is a mutual fund prospectus?
A prospectus is a legal document prepared by the fund company in order to disclose all important facts relating to the fund being sold, such as fees, restrictions, and objectives. The prospectus should always be read before you decide to invest in a mutual fund. Some of the items covered in a prospectus include: Different risks for this fund (for example, credit, currency or interest rate risk). What type of investments the fund focuses on. Any fees charged and how they are calculated. Past fund performance (if the fund is already in existence). Restrictions on the fund (for example, may be available only in certain provinces). Optional services available.
