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Funds 108: Introduction to Mutual Fund Prospectuses

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1.
A mutual fund objective may include a statement of the level of income it seeks.
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True. This is one of the most important parts of the objective.
2.
The mutual fund advisor may play additional roles besides that of advisor.
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True. It may also be the transfer agent.
3.
Which of the following is not a transaction fee?
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Management fee. This fee is an operating expense. It is not related to trading.
4.
You can find information on how to contact a mutual fund by reading its introduction.
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True. The introduction includes an address and telephone numbers.
5.
To promote a mutual fund, a prospectus could legally include information about why you should invest in the fund.
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False. Prospectuses are forbidden to make any sales recommendations.
6.
A mutual fund shareholder manual does all of the following except explain how _______.
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Taxes apply. The shareholder manual explains share price, redemption, and adding to your account.