How To Read An Investment Prospectus

by Adam on June 14, 2010

Magical Penny’s second ever video on how to read and understand investment prospectuses:

This video post will help you understand investment prospectuses:  the marketing publications that investment companies send out to persuade you to invest your hard-earned cash in their investment products.

Here’s what you’ll find in the video -I hope you find it useful.

  • [0:37] – Beware of marketing. How to look beyond the charts and optimisitic forcasts of the future.
  • [1:20] – I show you some of the 20 investment prospectuses I read in preperation for the video!
  • [1:43] – Where you can get investment prospectuses for free:
  • [5:40] – Your first priority should be finding funds with low expense ratios and don’t pay initial fees.
  • [9:19] – Don’t pay exit fees either!
  • [12:45] – Other fees to look out for: including performance-based charges and admin fees.
  • [15:00] – What is gearing and why you should be aware of its effects.
  • [17:00] – Can investment funds be ‘above average’ over the long term and beat the market?

I’d love to hear your thoughts on the video. Do you prefer video or articles? Should they be shorter? Longer? What else do you want to learn about? Leave a comment and thank you for taking the time to watch the video, even if it was only for the first 5 minutes (but watch the end too for the fun picture…you’ve got to have a bit of fun after reading 20 perspectuses!).

Look out for future Magical Penny posts for how to begin investing. And subscribe for free.

Like this video? Then you’ll love my first video:

See the first video on the pros and cons of investing pretax and post tax by click here.

I also recommend two books in the video. You can learn about them here:

{ 1 comment… read it below or add one }


apart from the cheesy music, good post. videos are good, blogs are good. just keep mixing it up.

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