How Do I Interpret a Fund Prospectus?

The fund prospectus is also called the "fund prospectus". In order to make it easier for investors to understand the overall situation of the fund organization and fund securities, and to make investment choices, a public announcement of the information of the funds issued is publicly disclosed. For such publicly disclosed information, the fund issuer must make a commitment and be legally responsible for its authenticity, completeness, and accuracy. Its main contents include: Basic information of the fund sponsor. The relevant parties and the basic information of the issuing fund, such as the fund underwriters and underwriting syndicates, law firms, etc. The type of funds issued, the scale of issuance, the amount of each unit of funds, the total amount of issuance, the duration of the funds, the issue price and fees. The basic information of the fund company (or fund organization), fund manager and fund custodian, the main contents of the fund charter, fund trust contract and fund custody contract. ^[1]