A prospectus is a legal document that provides detailed information about a mutual fund or an investment offering to potential investors. It is typically required by law and is regulated by financial authorities in most countries.
The correct answer to Part 2 is:
C. a document that provides financial information about the fund.
A prospectus includes essential information such as the fund's investment objectives, strategies, risks, historical performance, fees and expenses, and other relevant details. Investors can obtain a prospectus directly from the mutual fund company, usually by visiting their official website, contacting their customer service, or accessing the document online through financial regulatory websites. Reading the prospectus is crucial for investors to make informed decisions about their investments.