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A Few Related Terms

Expense Ratio
12b-1 Fees
Net Asset Value
Open-end Fund

Prospectus
Term category: Mutual Funds
In 10 words or less:  A mutual fund's informational booklet with details about expenses and whatnot.

Definition: An informational booklet that a mutual fund offers to investors. You can use the prospectus to decide whether or not to invest in the mutual fund.

StockJargon Advice: A prospectus is legally required by the SEC for all mutual funds. In the prospectus, you'll find info about the fund such as its holdings, its expense ratios, etc.

You can request a prospectus online from most mutual fund companies.

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Related Books

Morningstar Guide to Mutual Funds by Christine Benz
Common Sense on Mutual Funds by John Bogle
Mutual Funds for Dummies by Eric Tyson
Morningstar Funds 500 By Morningstar Analysts

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