Fund prospectuses still need some work.(Editorial)

Investment News, May, 2005

It's time for the Securities and Exchange Commission and mutual fund industry to revisit prospectuses. The prospectuses must be made more useful, and more appealing, to help the average fund investor, especially the first-time investor, make informed decisions. While a significant percentage of mutual funds are sold by financial planners and investment advisers, many investors receive little guidance on their investment decisions.

And even those who are assisted by a financial adviser, or the human resources staff at an employer offering a 401(k) plan, should be encouraged to read the prospectuses of the funds in which they choose to invest. Prospectuses have been improved over the years and generally are now simpler to read than they were...

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