SEC Form 497K1

AAA

DEFINITION of 'SEC Form 497K1'

A filing with the Securities and Exchange Commission (SEC), also known as the Profiles for Certain Open-Ended Investment Companies Form, used to file official copies of a "Short-Form Prospectus" for open-ended mutual funds. The information contained on SEC Form 497K1 includes the risks, costs, potential holdings, and redemption procedures for an open-ended mutual fund being sold to the public.

INVESTOPEDIA EXPLAINS 'SEC Form 497K1'

SEC Form 497K1 is used to file an abbreviated version of a mutual fund prospectus, that is meant to be much easier for investors to review and understand. Prior to the Short Form Prospectus, investors had to search through the much larger full-length prospectus to find the information required to make informed investment choices. In addition to benefiting the consumer, the use of a SEC Form 497K1 dramatically reduces the costs for mutual funds associated with delivering those larger prospectuses to customers.

Related Forms: SEC Forms 497K2, 497K3, N-1

RELATED TERMS
  1. SEC Form N-1A

    A filing with the Securities and Exchange Commission (SEC) that ...
  2. SEC Form 497

    The SEC form that investment companies use to file their definitive ...
  3. SEC Form 424B2

    The prospectus form that a company must file if it is making ...
  4. SEC Form 425

    The prospectus form that companies must file to disclose information ...
  5. Prospectus

    A formal legal document, which is required by and filed with ...
  6. Electronic Data Gathering, Analysis ...

    The electronic filing system created by the Securities and Exchange ...
RELATED FAQS
  1. How does FINRA differ from the SEC?

    With all the financial organizations out there, knowing what they all do can be as complicated as knowing where to invest. ... Read Full Answer >>
  2. Is there a situation in which wash trading is legal?

    Wash trading, the intentional practice of manipulating a stock's activity level to deceive other investors, is not a legal ... Read Full Answer >>
  3. What do I do if I think an accountant is in violation of the Generally Accepted Accounting ...

    The Financial Accounting Standards Board (FASB) promulgates generally accepted accounting principles (GAAP) in the United ... Read Full Answer >>
  4. What action is the SEC likely to take on 12b-1 fees?

    The Securities and Exchange Commission (SEC) may take action to impose greater regulation on how 12b-1 fees are used, or ... Read Full Answer >>
  5. What is considered a reasonable 12b-1 fee?

    A reasonable 12b-1 fee is generally considered to be 0.25% of the assets of the mutual fund. The maximum amount allowed for ... Read Full Answer >>
  6. What are some of the most common mutual funds that give exposure to the retail sector?

    There are a number of mutual funds that give exposure to the retail sector. Three of the most popular funds are the Fidelity ... Read Full Answer >>
Related Articles
  1. Investing Basics

    SEC Filings: Forms You Need To Know

    The forms companies are required to file provide a clear view of their histories and progress.
  2. Professionals

    Investigating The Securities Police

    Learn about the history of FINRA and how this organization protects investors.
  3. Personal Finance

    Who's Looking Out For Investors?

    If your account has been mishandled, FINRA and the SEC are among several organizations that can help.
  4. Professionals

    SEC to Advisors: Implement Cybersecurity Plans

    Advisors need to take heed of new SEC guidelines to beef up cybersecurity. Here's what they look like and what some firms are doing.
  5. Taxes

    Gay Weddings Mean Big Business

    The coming boom in same sex marriages represents a money-making opportunity for anyone in the wedding industry.
  6. Fundamental Analysis

    How Patent Trolls Hurt Competition

    Patent trolls are known to have a negative impact on the overall business ecosystem. Investopedia explores how.
  7. Investing Basics

    Shareholders: Vote Your Proxy and Be Heard

    Voting shares, in person or via proxy ballot, is a right every shareholder should exercise. Here's why.
  8. Economics

    4 Challenges Uber Will Face In The Next Years

    Uber is growing but also facing tough challenges both in America and abroad.
  9. Fundamental Analysis

    Calculating Tracking Error

    Tracking error is the difference between the return on a portfolio or fund, and the benchmark it is expected to mirror (or track).
  10. Investing Basics

    What is the Shadow Banking System?

    The shadow banking system is composed of financial institutions that do not take deposits in the tradition sense.

You May Also Like

Hot Definitions
  1. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  2. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  3. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
  4. Grandfathered Activities

    Nonbank activities, some of which would normally not be permissible for bank holding companies and foreign banks in the United ...
  5. Touchline

    The highest price that a buyer of a particular security is willing to pay and the lowest price at which a seller is willing ...
  6. Himalayan Option

    An exotic equity option belonging to a class known as mountain range options. Himalayan options are based on a basket of ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!