All mutual funds are highly regulated by the federal government through the U.S. Securities and Exchange Commission (SEC).  To protect investors, Federal law requires that all funds provide two types of documents to current and potential investors free of charge, a prospectus and a shareholder report.

Most all of the information needed to evaluate a fund can be found in the prospectus.  A potential money market fund investor can obtain a copy of a fund’s current prospectus from the mutual fund company or broker or a financial planner.  Many money market mutual funds also make prospectuses available on their websites.  The SEC requires a fund to provide a full prospectus either before you invest or together with the confirmation statement for your initial investment. 

Annual and semiannual shareholder reports document the fund’s recent performance and include other important information.  By examining these reports, an investor can learn if a fund has been effective in meeting the goals and investment strategies described in the fund’s prospectus.

Before anyone buys shares in a money market fund, or any mutual fund, they should read the prospectus.  An investment company prospectus contains important information about its fees and expenses, investment objectives, investment strategies, risks, performance, pricing, and more.  A mutual fund’s prospectus describes in plain English the fund’s goals, fees and expenses, investment strategies and risks, as well as information on how to buy and sell shares

The prospectus is a document that is designed to inform the investor about the fund’s objectives, its practices, its fees and its available services.  It will include a list of the portfolio holdings, risk profile and after tax returns.  These statistics and data can help investors use the prospectus to determine whether a fund fits into their personal investment strategy.  The prospectus also provides instructions on how to purchase shares and includes an application to do so.

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