Scenario 84: A mutual fund prospectus must disclose which of the following?

Question: Scenario 84: A mutual fund prospectus must disclose which of the following?

Answer options:

• Guaranteed future returns of the fund.
• The personal net worth of the fund manager. ✅ The fund's investment objectives, strategies, risks, and fees.
• A list of all individual securities held in the fund's portfolio.

Correct answer: The fund's investment objectives, strategies, risks, and fees.

Explanation: The prospectus is a legal document that provides full, true, and plain disclosure of all material facts relating to the mutual fund. It must outline the fund's investment objectives, strategies, risks, and all associated fees. It does not guarantee returns or disclose personal information of the manager. The correct answer is "The fund's investment objectives, strategies, risks, and fees.". This capacity-fill scenario 84 reinforces the same competency for the ific bank and follows the certified explanation standard.