Sunday, December 26, 2010

Prospectus

A prospectus is an official document that sets out the details of the fund for prospective investors. The nature of the content and details will be mandated by local regulations, and the prospectus is likely require to be registered and approved by the local regulator e.g. the US Securities and Exchange Commission. The types of information likely to be found in a prospectus include investment objectives, policies, risks, services, complaints procedures, fees, and information about the manager, etc. The prospectus is an important document to read as part of the usual process of due diligence when making an investment.

Synonyms: Registered prospectus, Investment statement, Disclosure document, Investment memorandum

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