Mutual Funds Prospectus Definition

Mutual Funds Prospectus: A prospectus is an official document that provides thorough information about a fund.

Mutual funds are required by law to provide every potential investor with a prospectus. Additionally, an annual upgrade of the prospectus is obligatory, which have to be distributed among the fund's existing investors.

The fund prospectus provides detailed information on the fund's objectives, policies, managers and additional staff, services and fees and whatever specific restrictions are there.

You are strongly advised to always keep the prospectuses of the mutual funds in which you hold shares.

For instance Tom decided to invest his money in a mutual fund, so he requested a prospectus to acquire detailed information about the fund's services and fees.

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