Final answer:
A client is not automatically required to receive a full statutory prospectus after purchasing mutual fund shares having a summary prospectus. They can request it to get more comprehensive details about the mutual fund. Mutual funds remain a popular investment choice, with a significant percentage of U.S. households owning shares.
Step-by-step explanation:
When a client purchases mutual fund shares after receiving a summary prospectus, they are typically not required to automatically receive a statutory prospectus. However, it is important for the financial investor to know that they are entitled to receive the full statutory prospectus upon request, which contains more detailed information about the mutual fund, its investment strategies, risks, and expenses.
When investing in mutual funds, which are investment vehicles that include a diversified group of stocks or bonds, the investor buys shares in the fund and the return on investment depends on the overall performance of the funds' assets. In recent years, owning shares in mutual funds has become more common, with over 47% of U.S. households having some investment in mutual funds as of 2021, according to the Investment Company Factbook.