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Funds 108: Introduction to Mutual Fund Prospectuses

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1.
Which of the following is an operating expense in a mutual fund?
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12b-1 fee. Taxes are not operating expenses, and the other two are transaction fees.
2.
Which of the following is not covered under a prospectus' section on performance?
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Risks. The "Performance" section deals with objective data.
3.
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.
4.
The mutual fund advisor may play additional roles besides that of advisor.
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True. It may also be the transfer agent.
5.
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.
6.
If you want to read about your options for mutual fund investment plans, you can find them in the shareholder manual.
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True. Investment plans are part of a shareholder's privileges.