A prospectus is an important document that you should read before committing yourself to any investment. It serves as a guide for you to know what to expect when you invest in a specific fund.
As there are a wide range of funds with various investment objectives and risks involved, investors need to make wise decisions in choosing suitable funds for themselves.
Some of the key elements to note in a prospectus are:
* Investment objective
* Risk factors
* Investors' profile
* Financial performance
* Fees and charges
A potential investor can then make an informed decision to choose a fund that matches their investment objectives and risk tolerance upon knowing the key elements of the fund. The prospectus is usually valid for one year, thus get the most recent prospectus.
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