AMFI Exam Tips series -7

Google+ Pinterest LinkedIn Tumblr +

This chapter examines the mutual fund world from the shareholder perspective.

In the final series i will be sharing objective type question papers which will give all aspirants fair idea about the question pattern.

Mutual Fund Shareholders

Shareholders
The Prospectus
Financial Reports
Types of Accounts

Shareholder voting
Certain shareholder issues are decided based on votes by all of the outstanding shares. Some of the issues shareholders vote on are:

· filling vacancies on the board of directors
· proposed changes in the investment advisory contract
· other material changes to fund provisions, objectives etc.

The prospectus is a key document for investing in mutual funds. It contains detailed information about the fund and its

· management
· major service providers
· investment objectives and policies
· rules pertaining to purchasing and redeeming shares
· dividend policy
· NAV calculated time and method other operating policies.

Each prospectus must comply with SEC regulations for information disclosure. The following is an example of standard prospectus language stating the purpose of the document:

The Prospectus
The statement of additional information (SAI), also known as Part B of the prospectus includes additional supporting detail for items included in the prospectus. It is available to all shareholders upon request, and required to accompany the prospectus in some states.

More details Download for free

 
Share.

About Author

KnowInfoNow.com is a trusted financial resource with over 23 years of expertise, committed to providing essential insights for tax professionals, taxpayers, and the general public. Our platform is designed to simplify financial management and empower individuals to make informed decisions in their daily financial lives. We welcome guest authors, bringing diverse perspectives and specialized knowledge on a range of relevant topics to enrich our content. Whether you're looking for expert tax advice or tips on personal finance, KnowInfoNow.com is your go-to source for practical, up-to-date guidance.

Leave A Reply