An investment company sponsoring a mutual fund must give potential investors a(n):

Question

Quizplus · Accepted Answer

A prospectus is a legal document that mutual fund companies are required to prepare and provide to potential investors. It contains all relevant information about the mutual fund, including the investment objectives, fees and expenses, risks, performance, and other key details. This helps investors make informed decisions about whether to invest in the mutual fund or not. Other options listed, such as the 12b-1 report, disclosure/evaluation form, redemption fee sheet, and annual report, may also be provided to investors at different points in time, but the prospectus is the main document that is required to be given to potential investors.

An Investment Company Sponsoring a Mutual Fund Must Give Potential