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A prospectus from the US. A prospectus, in finance, is a disclosure document that describes a financial security for potential buyers. It commonly provides investors with material information about mutual funds, stocks, bonds and other investments, such as a description of the company's business, financial statements, biographies of officers and directors, detailed information about their ...
A red herring prospectus, as a first or preliminary prospectus, is a document submitted by a company (issuer) as part of a public offering of securities (either stocks or bonds). Most frequently associated with an initial public offering (IPO), this document, like the previously submitted Form S-1 registration statement, must be filed with the ...
Funds with high expenses ratios tend to continue to have high expenses ratios. An investor can examine a fund's "Financial Highlights" which is contained in both the periodic financial reports and the fund's prospectus, and determine a fund's expense ratio over the last five years (if the fund has five years of history).
A fund may employ a single strategy or multiple strategies for flexibility, risk management, or diversification. [67] The hedge fund's prospectus, also known as an offering memorandum, offers potential investors information about key aspects of the fund, including the fund's investment strategy, investment type, and leverage limit. [68]
Using the example above, if a mutual fund started with a total value of $10,000 and its fund manager then increased the overall value of the fund to $15,000, the original 10 shares in the fund ...
A mutual fund is an investment fund that pools money from many investors to purchase securities.The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in Europe ('investment company with variable capital'), and the open-ended investment company (OEIC) in the UK.
Underlying fund expenses: These are the fees associated with the management of the sub-accounts. They’re similar to expense ratios charged by mutual funds and exchange-traded funds (ETFs) .
Leveraged funds use what are known as financial derivatives to help boost the fund’s performance. For example: For example: If the benchmark index is up 1 percent, a basic S&P 500 index fund ...