The document setting out a fund's holdings and costs
A prospectus is handed over before you buy a fund. It sets out what the fund invests in, the risks it carries and the fees it charges. The management fee and any sales charge matter most, because they compound against you the longer you hold. A short summary version and a fuller version on request are both published.
A 0.1% annual fee against 1.5% becomes a wide gap over 20 years.
Japan — In Japan there is a short prospectus handed to every buyer and a fuller one available on request.
South Korea — Korean funds have a full prospectus and a simplified one. Unless the investor asks for the full version, the simplified one may be handed over before the sale, along with a notice that the full one can be requested (Capital Markets Act, Article 124).
For learning, not investment advice. Decisions are your own.
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