Читать книгу Mutual Funds For Dummies - Eric Tyson - Страница 41

Before a fund can take in money from investors, the fund must go through a comprehensive review process by the Securities and Exchange Commission (SEC). After it offers shares, a fund is required to update its prospectus annually (see Chapter 8) with historical data on the fund’s returns, its operating expenses and other fees, and its rate of trading (turnover) of the fund’s investments.

But know that government regulators aren’t perfect. Conceivably, a fund operator could try to slip through some bogus numbers, but I haven’t heard of this happening and certainly not with the reputable fund companies recommended in this book. And all funds must be audited by independent audit firms who will see their business damaged if they fail to perform their duties accurately. What has happened is that some high-risk and high-fee funds that were destined to perform poorly have been approved. Rest assured that you won’t find any such funds in this book, and you’ll also know how to sidestep them in the future by understanding the principles in this book.