For many investors, reading a mutual fund prospectus is about as daunting an exercise as reading "War and Peace." In Martian.
So today, the fund industry and the Securities and Exchange Commission will launch a simplified- prospectus experiment, in an effort to get people to actually read more details about the funds they buy.
The "profile" prospectus, to be used by as many as eight fund firms initially, is a two-page supplement to the regular prospectus. The profile addresses 11 key points that the industry and SEC agreed average investors should understand before buying a fund.
Among the 11 points: What is the fund's goal? What are the major risks? What are the fund's expenses? And how do I sell shares?