The Mutual Fund Shareholder Manual
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The Mutual Fund Shareholder Manual
In addition to information about the fund and its management, a mutual fund prospectus also contains the things shareholders need to know to participate in the fund.
Things To Know
- The shareholder manual is one of the easier-to-read sections in the prospectus.
- The shareholder manual explains how to open an account and how to add to an existing account.
What is the shareholder manual?
The shareholder manual is a large section of the prospectus that covers the how-tos of buying and selling mutual fund shares. It is one of the easier-to-read sections in the prospectus. The shareholder manual explains how to open an account and how to add to an existing account. For example, you have the option of sending checks, calling by phone, or any of several other possibilities. It also covers how to sell shares. Most of the methods available for selling shares are the same as those for buying shares.
Services described in the manual
The manual also covers shareholder services, including:
- Information services and the numbers to call
- Various investment plans and how to set them up
- Transaction services
- Information on special situations, such as when you are investing for a corporation
- How the price of a share is determined
In sum, the shareholder manual contains everything the shareholder needs to know to invest in the mutual fund—the main reason why it's one of the more user-friendly sections of most mutual fund prospectuses.