How finance folk use it
A fund fact sheet is a document that provides information that you should know before deciding whether or not to invest in a fund. This includes the objective, risk profile suitability, net asset value, year-on-year returns and asset composition of the fund.
Every mutual fund and Unit Investment Trust Fund (UITF) has a fact sheet that you can view online or get a copy of.
Is it good or bad?
A fund fact sheet is very helpful in letting you know if this is a fund that you would want to put your money in. When you can see the important details of the fund and compare them to other funds, your decision becomes much easier to make.
Of course, you can still choose to invest in a fund without going through its fact sheet. Still, reading it is a recommended step before making that investment decision.
What it means for you
If you’re interested in putting money in a fund, reading the fact sheet is something that you should do first. It gives you an overview of the fund, so you can better understand what’s inside it and what it aims to do.
The fact sheet also lets you see how the fund has been managed and has performed previously, which could give you insight into how it will do in the future. Just don’t forget that past performance is never a guarantee of future results.
