Mutual Funds Made Easy

For those of you who have given up trying to decipher the dense language of a mutual-fund prospectus, help is on the way. New rules require that these documents must be written in clear and concise "plain English" and include easy-to-follow graphs. Impenetrable sentences such as, "The net asset value of the fund's shares fluctuates as market conditions change" will be simplified to "The fund's shares will rise and fall in value."

In addition, some funds will begin to provide a four- to six-page "profile" prospectus for interested investors. This shortened document answers nine specific questions regarding the fund's objectives, types of investments, fees and expenses, the buying and selling of shares, and distributions. All profiles will include the information in the same order, so you can easily compare funds. "Of course, if you're still confused, don't hesitate to call the fund company," says Marlene Jupiter, author of Savvy Investing for Women (Prentice Hall, 1998). "Make sure you know exactly what you're investing in."--Debra W. Englander