For a mutual fund, a prospectus is a document that provides information about the fund’s investment objectives and policies, risks, fees structure, expenses, and other aspects. Mutual fund firms must issue prospectus to potential investors, free of charge, before the investors purchase their respective shares.

For potential investors, it is essential to have access to, and review, the prospectus, as it contains very important information, to help investors evaluate the status and prospects of a fund, that cannot be obtained elsewhere.