Comments on: What’s In a Mutual Fund’s Prospectus http://gailvazoxlade.com/blog/archives/1766 Mon, 21 May 2012 15:52:22 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Prospectus – Part II « Share the Wealth Blog http://gailvazoxlade.com/blog/archives/1766/comment-page-1#comment-52982 Prospectus – Part II « Share the Wealth Blog Fri, 01 Oct 2010 16:07:22 +0000 http://gailvazoxlade.com/blog/?p=1766#comment-52982 [...] Resources: Investopedia Gail Vaz-Oxlade [...] [...] Resources: Investopedia Gail Vaz-Oxlade [...]

]]> By: Closed-End Funds « gailvazoxlade.com http://gailvazoxlade.com/blog/archives/1766/comment-page-1#comment-36819 Closed-End Funds « gailvazoxlade.com Tue, 08 Jun 2010 09:52:10 +0000 http://gailvazoxlade.com/blog/?p=1766#comment-36819 [...] Last Week: What’s In a Mutual Fund’s Prospectus [...] [...] Last Week: What’s In a Mutual Fund’s Prospectus [...]

]]> By: Canadian Personal Finance Blog » Blog Archive » Random Thoughts: Did it Hurt? http://gailvazoxlade.com/blog/archives/1766/comment-page-1#comment-36256 Canadian Personal Finance Blog » Blog Archive » Random Thoughts: Did it Hurt? Fri, 04 Jun 2010 06:57:05 +0000 http://gailvazoxlade.com/blog/?p=1766#comment-36256 [...] What Is in a Mutual Fund’s Prospectus? Gail V-O does a quick outline, but in my estimation, point (4) is where you start from. [...] [...] What Is in a Mutual Fund’s Prospectus? Gail V-O does a quick outline, but in my estimation, point (4) is where you start from. [...]

]]> By: Kate http://gailvazoxlade.com/blog/archives/1766/comment-page-1#comment-35962 Kate Wed, 02 Jun 2010 14:56:42 +0000 http://gailvazoxlade.com/blog/?p=1766#comment-35962 @marie: The Fund itself gives a great explanation of the risks. I don't wan to copy their stuff without permission, so here's the .pdf of the Prospectus (which explains the terms in detail). http://www.choufunds.com/pdf/PROSPECTUS09.pdf @marie:

The Fund itself gives a great explanation of the risks. I don’t wan to copy their stuff without permission, so here’s the .pdf of the Prospectus (which explains the terms in detail).

http://www.choufunds.com/pdf/PROSPECTUS09.pdf

]]> By: Melanie Reformed Spender http://gailvazoxlade.com/blog/archives/1766/comment-page-1#comment-35851 Melanie Reformed Spender Tue, 01 Jun 2010 21:19:33 +0000 http://gailvazoxlade.com/blog/?p=1766#comment-35851 Thank you for clearing up the murkey waters of the mutual fund prospectus for me. Thank you for clearing up the murkey waters of the mutual fund prospectus for me.

]]> By: Cynthia http://gailvazoxlade.com/blog/archives/1766/comment-page-1#comment-35847 Cynthia Tue, 01 Jun 2010 20:19:04 +0000 http://gailvazoxlade.com/blog/?p=1766#comment-35847 I always like to know what my money would be invested in. What companies? I avoid mutual funds that have investments in tobacco. That is a big no no for me. A couple other companies for personal reasons. I always like to know what my money would be invested in. What companies? I avoid mutual funds that have investments in tobacco. That is a big no no for me. A couple other companies for personal reasons.

]]> By: didi http://gailvazoxlade.com/blog/archives/1766/comment-page-1#comment-35846 didi Tue, 01 Jun 2010 20:15:35 +0000 http://gailvazoxlade.com/blog/?p=1766#comment-35846 We missed the picnic last year so we're planning on coming this year - but I love that its near a splash pad and playground as my daughter will probably have a better time than just standing around with a bunch of adults talking about money... although, she loves the jars and the fact that she gets an allowance. She thinks Gail is AWESOME! lol We missed the picnic last year so we’re planning on coming this year – but I love that its near a splash pad and playground as my daughter will probably have a better time than just standing around with a bunch of adults talking about money… although, she loves the jars and the fact that she gets an allowance. She thinks Gail is AWESOME! lol

]]> By: Linda http://gailvazoxlade.com/blog/archives/1766/comment-page-1#comment-35831 Linda Tue, 01 Jun 2010 17:49:46 +0000 http://gailvazoxlade.com/blog/?p=1766#comment-35831 I've got quite a bit invested in mutual funds but I've been relying on my investment counsellor/company and have not been doing a good job of reading the prospectuses. Now I have some serious reading to do. I needed this push. Thanks for the info about the July picnic. Just one concern- Area 3 is near a playground and splash pool and will probably not be very pleasant. A quieter location, away from noisy attractions, would be more relaxing and enjoyable. I’ve got quite a bit invested in mutual funds but I’ve been relying on my investment counsellor/company and have not been doing a good job of reading the prospectuses. Now I have some serious reading to do. I needed this push.

Thanks for the info about the July picnic. Just one concern- Area 3 is near a playground and splash pool and will probably not be very pleasant. A quieter location, away from noisy attractions, would be more relaxing and enjoyable.

]]> By: Marie http://gailvazoxlade.com/blog/archives/1766/comment-page-1#comment-35823 Marie Tue, 01 Jun 2010 16:52:11 +0000 http://gailvazoxlade.com/blog/?p=1766#comment-35823 To pick up on Kate's list: I read the list and understand the meaning of SOME of these. Others... I am not sure until you get to hear the bad news that this type of risk is based on self-regulated industries. Gail, it would be great if you could explain the details of the list that Kate wrote. Also, the fund seems to do well... but if I don't like ONE of the risks, what's a girl to do? Many funds from the same category would presumably have the same risks? To pick up on Kate’s list:
I read the list and understand the meaning of SOME of these. Others… I am not sure until you get to hear the bad news that this type of risk is based on self-regulated industries.
Gail, it would be great if you could explain the details of the list that Kate wrote.
Also, the fund seems to do well… but if I don’t like ONE of the risks, what’s a girl to do? Many funds from the same category would presumably have the same risks?

]]> By: Kate http://gailvazoxlade.com/blog/archives/1766/comment-page-1#comment-35806 Kate Tue, 01 Jun 2010 11:58:54 +0000 http://gailvazoxlade.com/blog/?p=1766#comment-35806 I have been really surprised at the difference between the prospectuses of different mutual funds. Read a few, and you'll get a feel for what should be there, and how one should look. For example, one fund I looked at was really upfront about the risks you face as an investor in their funds, and breaks it down into the following categories with details: • Below-Investment Grade Securities Risk • Credit Risk • Covered Call Option Risk • Currency Risk • Derivatives Risk • Emerging Markets Risk • Distressed Securities Risk • Equity Risk • Foreign Market Risk • General Market Risk • Interest Rate Risk • Legal and Regulatory Risk • Liquidity Risk • Political Risk • Prepayment Risk • Refinancing Risk • Securities Lending, Repurchase and Reverse Repurchase Risk • Series Risk The other (offered through a major bank) just says there might be some risk involved, and leaves you to deduce how much based on the fund's past returns (up 45% one year, down 30% the next, up again by 10% the year after that). They're both targeting similar industries in similar countries, but they each have a very different philosophy when it comes to investor information. Choose wisely! I have been really surprised at the difference between the prospectuses of different mutual funds. Read a few, and you’ll get a feel for what should be there, and how one should look.

For example, one fund I looked at was really upfront about the risks you face as an investor in their funds, and breaks it down into the following categories with details:

• Below-Investment Grade Securities Risk
• Credit Risk
• Covered Call Option Risk
• Currency Risk
• Derivatives Risk
• Emerging Markets Risk
• Distressed Securities Risk
• Equity Risk
• Foreign Market Risk
• General Market Risk
• Interest Rate Risk
• Legal and Regulatory Risk
• Liquidity Risk
• Political Risk
• Prepayment Risk
• Refinancing Risk
• Securities Lending, Repurchase and Reverse Repurchase Risk
• Series Risk

The other (offered through a major bank) just says there might be some risk involved, and leaves you to deduce how much based on the fund’s past returns (up 45% one year, down 30% the next, up again by 10% the year after that).

They’re both targeting similar industries in similar countries, but they each have a very different philosophy when it comes to investor information.

Choose wisely!

]]> By: Jason http://gailvazoxlade.com/blog/archives/1766/comment-page-1#comment-35800 Jason Tue, 01 Jun 2010 10:57:49 +0000 http://gailvazoxlade.com/blog/?p=1766#comment-35800 I always read the prospectus before moving money to a new mutual fund. They are kinda boring but I've caught a few where they were going in the wrong direction from where I really wanted to go. This helped me steer my boat in the correct direction by avoiding the worng funds. regards, Jason I always read the prospectus before moving money to a new mutual fund. They are kinda boring but I’ve caught a few where they were going in the wrong direction from where I really wanted to go. This helped me steer my boat in the correct direction by avoiding the worng funds.

regards,

Jason

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