Factsheet
A factsheet is a concise, one-page summary of a fund’s strategy, performance, holdings, risks, and fees—helping investors quickly assess key attributes.
What Is a Factsheet?
A factsheet is a one-page document that provides a clear, standardized overview of a fund’s most important characteristics. It typically highlights the fund’s strategy, objectives, performance, risk metrics, top holdings, management team, and fees. The factsheet is designed to give both current and prospective investors an at-a-glance understanding of what the fund does and how it has performed.
How Does a Factsheet Work?
Factsheets are produced regularly often monthly or quarterly by fund managers or asset managers. They compile up-to-date data from the fund’s operations, portfolio, and performance records into a visually accessible format. The document usually includes a combination of charts, tables, and concise descriptions, making it easy for investors to compare funds or track changes over time.
Why Are Factsheets Important for Investors?
Factsheets are essential tools for investors because they:
Provide a quick, reliable summary of a fund’s key features and performance
Allow for easy comparison between different funds or strategies
Support transparency and informed decision-making
Highlight important information such as risk level, fees, and historical returns
Example: Factsheet in Practice
An investor considering several mutual funds can use each fund’s factsheet to compare objectives, recent performance, top holdings, and expense ratios. For instance, a factsheet might show that Fund A focuses on global equities with a moderate risk profile and has outperformed its benchmark over three years, while Fund B is more concentrated in technology stocks and carries higher volatility.
When Should You Use a Factsheet?
Factsheets are most useful:
When researching or screening funds for investment
For regular portfolio reviews and monitoring ongoing performance
During due diligence or when comparing multiple investment options
To quickly communicate a fund’s essentials to stakeholders or advisors
