The Fund's Prospectus
The Securities and Exchange Commission (SEC) requires all mutual funds to publish a prospectus that's made available for all potential investors either before they purchase shares or along with the confirmation of an initial investment with the fund. Much of the information you need to do a meaningful evaluation of a mutual fund is provided in this document.
The prospectus states the fund's objective and style, and also outlines its fees, past performance, after-tax returns and risk profile. It lists the portfolio's holdings, identifies the fund managers, and explains the cost of choosing different classes of shares if there is a sales charge.
The prospectus is not the only information published by the fund. It also provides an annual Statement of Additional Information (SAI), which details the fund's policies on borrowing, brokerage commissions, and other financial data. Most fund companies provide even more data on their Web sites.
There are three ways to obtain a prospectus:
- Free prospectuses online* are available to Scottrade clients or prospective investors.
- Scottrade clients may contact their local Scottrade branch office to obtain a prospectus at no charge.
- Scottrade clients or prospective investors may also order a prospectus directly from the fund company.
*Note: Not all fund companies offered through Scottrade offer a prospectus for online viewing and downloading. Not all fund prospectuses made available for downloading are available to purchase from Scottrade.
Please read the prospectus before investing. For Scottrade clients, purchases may not be made directly with the fund, only through Scottrade.
Investors should consider the investment objectives, risks, charges, and expenses of a mutual fund carefully before investing. A prospectus contains this and other information. A mutual fund prospectus is available through www.scottrade.com or through a Scottrade branch office. The prospectus should be read carefully before investing.