The U.S. Securities and Exchange Commission says that a number of mutual funds have started providing risk/return data with the use of interactive reporting language.
Vanguard 500 Index Fund, Allegiant Advantage Fund, Muhlenkamp Fund, and American Funds’ Europacific Growth Fund are among the mutual funds that have taken what the SEC is calling this “significant step.”
The agency says that it will continue to observe the way information can be used to keep mutual fund investors informed. It will also look at whether anything else needs to be done to create greater accessibility for investors.
Mutual fund investors can access the information through EDGAR, which is the SEC’s online database that provides corporate data. XBRL, a computer software language that lets users more easily manipulate and analyze data, powers the interactive information.
Each mutual fund prospectus comes with a risk/return summary that offers details about a fund’s performance history, objectives, costs, and strategies.
SEC Chairman Christopher Cox says that he believes that as more mutual funds use the interactive language to provide information, investors will be more able to easily choose from thousands of funds while sitting in front of their computers.
At least 40 publicly traded companies are using XBRL to file their financial statements.
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Mutual Funds Begin Providing Risk-Return Information Using Interactive Data, SEC.gov, August 21, 2007