Fund Basics

Prospectus

Definition

What is Prospectus?

The formal document explaining a fund's objective, strategy, risks, fees, governance, and dealing rules.

Example in practice

Before investing, an investor checks the prospectus for the minimum subscription, redemption period, and management fee.

Keep learning

A pooled investment vehicle that combines money from many investors into one professionally managed portfolio.

A proportional ownership interest in a mutual fund.

The value of a fund's assets minus its liabilities, usually expressed in total and per unit.

A mutual fund that invests mainly in short-term, relatively liquid instruments such as treasury bills and deposits.

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