Mutual Fund Regulations

The SEC closely monitors mutual funds and their managers. Both mutual funds and mutual fund managers must be registered with the SEC. They are then required to provide a variety of reports including a prospectus that details the fund's objectives, risk level, earnings, and more. One of the required informational documents for mutual funds is a Statement of Additional Information (SAI). The SAI expands on items mentioned in the prospectus that are not crucial information for investors, but that some investors use to help them evaluate a fund. The SAI must be provided free to investors. To access any mutual fund documents required by the SEC, contact the fund directly and request them.