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How does an investor get a statement of additional information?
ABy asking, since the fund must send it on request
BBy buying a creation unit from the fund sponsor
CBy paying the fee set out in the fee table
DBy filing a written request with the SEC
Answer & Solution
Correct answer: A. By asking, since the fund must send it on request
1. The statement of additional information explains a fund's operations in more detail than the prospectus.
2. A fund is not required to hand it out unprompted.
3. But if an investor asks, the fund must send it, and without charge.
4. The back cover of the prospectus explains how to obtain it.
_Source: US SEC Office of Investor Education and Advocacy, "Mutual Funds and ETFs: A Guide for Investors", section Statement of Additional Information (SAI)_
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