Fund Facts and ETF Facts - Investor Centre (2024)

FAQs

What is the difference between a fund facts document and an ETF facts document? ›

Your mutual fund dealer must deliver Fund Facts to you before you buy a mutual fund. Exchange-traded funds (ETF) have a similar plain-language document named ETF Facts. Your dealer must deliver an ETF Facts to a client within two days of a purchase.

Take the time to read the ETF Facts to find out more about the ETF before you invest. Since December 2018, your dealer (the firm) is required to deliver the ETF Facts to you no later than midnight on the second business day following the purchase of ETF securities.

The Fund Facts is a document that highlights key information for investors about a mutual fund or an exchange-traded fund (ETF). You can consult the Fund Facts on the website of the institution offering the fund, or simply ask for a copy.

Fund Facts must be filed by all mutual funds annually and they must be updated whenever there is a material change to the fund.

A Fund Facts document provides you with valuable information about a mutual fund; such as its past performance, costs and breakdown of investment assets; so that you and your financial advisor can select the mutual funds that are right for you.

Fund Facts

It contains key information about a mutual fund, including what the fund invests in, how the fund has performed, the risks involved, and the costs of investing. The Fund Facts document is available for every class and series of a mutual fund.

A photocopy of the bank passbook or statement showing such details as the bank name, branch, account number, account-holder's address and national identity card [NIC] number, etc. should be attached to the claim application. A copy of NIC certified by the Employer should be submitted.

Rather, an ETF is required to disclose the following information for each portfolio holding on a daily basis: (1) ticker symbol; (2) CUSIP or other identifier; (3) description of holding; (4) quantity of each security or other asset held; and (5) percentage weight of the holding in the portfolio.

Mutual fund fact sheets are updated monthly and are usually available on the fund house's website or through other online platforms.

How often are fund facts updated? ›

Fund facts documents are required to be updated every year and any time there's a material change to the fund. It's important to understand how a particular fund fits into your overall financial plan and with your other investments.

A KIID (Key Investor Information Document) is an information sheet provided by the fund manager that includes all the key facts and figures about a fund. It describes what the fund does, the investment risk, charges and performance to help you assess whether a particular investment fund meets your needs.

This is a summary document produced for an individual investment fund by the fund provider. It contains a large amount of information, however in an easy to read and digestible format. It is usually around 2 or 3 pages long and for most daily trading funds will be updated and published once a month.

FoFs are actively managed funds while ETFs are considered to be passively managed funds. Hence the cost or the expense ratio is higher in the case of FoFs as compared to ETFs.

The fund's legal documents, such as the partnership agreement, offering memorandum, and subscription agreement, provide the framework for the fund's operations and investments. These documents must accurately reflect the fund's investment strategy, risk management framework, and regulatory requirements.

A fund factsheet is an overview of a fund including the fund's investment objective, risk level, costs, past performance and holdings details. Factsheets are usually published on a monthly basis and available online for free, and are thus one of the most convenient and timely tools for investors to learn about a fund.