SEC Form N-1A

Definition of 'SEC Form N-1A '


A filing with the Securities and Exchange Commission (SEC) that must be submitted by mutual funds, except for insurance company separate accounts and small business investment companies licensed under the United States Small Business Administration. The form is designed to promote effective communication between funds and prospective investors by including information on the fund's fundamental characteristics and investment risks. The information must be presented clearly, so that the average investor, who may not have a strong legal or financial background, can understand it. It must also provide a balanced view of the fund, disclosing both its positives and negatives.

Investopedia explains 'SEC Form N-1A '


The filing should include a summary of the fund's risks and returns, fees, investment strategies and objectives, disclosure of holdings, management organization and structure, and fund history, among additional related information. This form is required under the Securities Act of 1933 and the Investment Company Act of 1940. The SEC substantially revised the form in 1998 to improve mutual fund disclosures for investors.



comments powered by Disqus
Hot Definitions
  1. Federal Reserve Note

    The most accurate term used to describe the paper currency (dollar bills) circulated in the United States. These Federal Reserve Notes are printed by the U.S. Treasury at the instruction of the Federal Reserve member banks, who also act as the clearinghouse for local banks that need to increase or reduce their supply of cash on hand.
  2. Benchmark Bond

    A bond that provides a standard against which the performance of other bonds can be measured. Government bonds are almost always used as benchmark bonds. Also referred to as "benchmark issue" or "bellwether issue".
  3. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures.
  4. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  5. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  6. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
Trading Center