Mutual funds have become an alternative or investment choice for many people, both young and old, or newcomers or those who are already professionals. Mutual fund investors' rights are regulated in a collective investment contract between the custodian bank and the investment manager and produce a prospectus.
The mutual fund prospectus also contains the rights of investors, so you should read the prospectus carefully. There are several rights owned by mutual fund investors that I have collected, including:
1. Obtain Profit Sharing
Every mutual fund investor has the right to get good returns from capital gains/capital losses, and also from dividends and from interest according to the number of units he owns. In mutual funds there are no majority and minority units like stocks. However, investors do not have the right to determine the policy of mutual funds, regardless of the number of units they have.
2. Right to Resell Mutual funds/Redemption.
Each investor can resell the participation unit either in part or in whole to other investors or directly to mutual funds. The minimum sales conditions are set out in the prospectus, which are generally of two types. There are those who set a nominal amount, for example $ 20, there are also those who set a minimum balance, for example $ 15 after redemption.
3. Participation Unit Ownership Confirmation Letter
After the investment transaction is completed, the mutual fund investor is entitled to receive a confirmation letter of participation unit ownership via email, which contains transaction value, transaction costs, net asset value per unit of participation (NAV/PU) from the kastodian bank.
4. Get Latest Information Regarding NAV/PU
In accordance with the prospectus issued by the custodian bank, mutual fund investors are entitled to receive the latest information regarding developments in investment returns.
5. Obtain Mutual Fund Reports
Mutual fund reports in the form of an updated prospectus, fund fact sheet (FFS) and mutual fund financial statements.
6. Right to Liquidation Results If the Mutual Fund is Disbanded
If due to certain circumstances the mutual funds are dissolved by the authorities, each investor is entitled to the proceeds from the sale of investment instruments proportionally.
The mutual fund prospectus also contains the rights of investors, so you should read the prospectus carefully. There are several rights owned by mutual fund investors that I have collected, including:
1. Obtain Profit Sharing
Every mutual fund investor has the right to get good returns from capital gains/capital losses, and also from dividends and from interest according to the number of units he owns. In mutual funds there are no majority and minority units like stocks. However, investors do not have the right to determine the policy of mutual funds, regardless of the number of units they have.
2. Right to Resell Mutual funds/Redemption.
Each investor can resell the participation unit either in part or in whole to other investors or directly to mutual funds. The minimum sales conditions are set out in the prospectus, which are generally of two types. There are those who set a nominal amount, for example $ 20, there are also those who set a minimum balance, for example $ 15 after redemption.
3. Participation Unit Ownership Confirmation Letter
After the investment transaction is completed, the mutual fund investor is entitled to receive a confirmation letter of participation unit ownership via email, which contains transaction value, transaction costs, net asset value per unit of participation (NAV/PU) from the kastodian bank.
4. Get Latest Information Regarding NAV/PU
In accordance with the prospectus issued by the custodian bank, mutual fund investors are entitled to receive the latest information regarding developments in investment returns.
5. Obtain Mutual Fund Reports
Mutual fund reports in the form of an updated prospectus, fund fact sheet (FFS) and mutual fund financial statements.
6. Right to Liquidation Results If the Mutual Fund is Disbanded
If due to certain circumstances the mutual funds are dissolved by the authorities, each investor is entitled to the proceeds from the sale of investment instruments proportionally.
