All Courses > Funds > 100
Funds 109: Important Mutual Fund Documents: The Shareholder Report

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Where should you turn for information about a mutual fund?
Choose wisely. There is only one correct answer.
Both. While mutual fund documents such as prospectuses, statements of additional information, and shareholder reports are essential for smart fund analysis, don't rely strictly on fund company materials. Seek outside sources to help put the information into context.
2.
The part of a mutual fund shareholder report that discusses recent performance should, ideally, cover performance over what time frame?
Choose wisely. There is only one correct answer.
Several different time frames. The report should include several different time frames, both short and long.
3.
Where in the mutual fund documents are you most likely to find an explanation of why your fund performed the way it did during the past year?
Choose wisely. There is only one correct answer.
In the portfolio manager's letter. Your manager runs the fund day to day, so you are most likely to find useful context in his or her letter. The president's letter tends to focus on economic and market trends. The footnotes provide details about the portfolio.
4.
For details about how your mutual fund fees are spent, consult the _______.
Choose wisely. There is only one correct answer.
Statement of Additional Information. While the prospectus provides a view of all fund costs--including management and operational fees, as well as any commissions--the SAI breaks down those costs into their components, such as the portion of 12b-1 fees paid to brokers.
5.
Which part of the mutual fund shareholder report discusses broad economic trends?
Choose wisely. There is only one correct answer.
The letter from the president. The president typically covers broad economic trends that have affected the markets and provides some context for evaluating your fund.