Definition of fund factsheet

Factsheets provide an overview of funds and summarize the key characteristics, such as volume, past performance, costs, risk, investment strategy, largest positions and financial key figures. Taking a close look at factsheets is well worth it for investors to assess whether a product is suitable for their personal investment strategy. Factsheets are available from customer advisors and on the websites of fund providers.

To obtain a quick overview, look at the following elements which are part of every factsheet: 

• Performance: this provides information on the fund’s past performance. Most funds compare the performance of their portfolio with a general market index – in other words, how the fund has performed over a certain period in comparison to the market. Please note that past performance is not a reliable indicator for how well a fund will do in future. The past has shown that the situation on the financial markets can change rapidly. It is also worth bearing in mind that no charges are incurred on an index  An index is a basket of various securities selected according to particular criteria. It reflects the performance of this selection’s prices and documents them. An index also serves as a comparative value..
• The 10 largest positions: this overview of the fund’s main securities (for example, shares  A share is a security which gives investors a stake in a company. Companies raise capital by issuing shares. Shareholders have proprietary rights (e.g. entitlement to dividends) and membership rights (e.g. entitlement to take part in the general meeting and the right to vote). or bonds) helps to identify risk concentration. If, for example, you hold lots of shares in a particular company, you should not invest in a fund which places particular emphasis on the sector in which this company operates and which holds a high proportion of these shares itself. 
• Total expense ratio (TER)  The total expense ratio (TER) provides information on the proportion of average assets in a fund accounted for by fund costs. With the exception of transaction costs, it includes all costs automatically deducted from the fund assets during a year.: the TER provides details of the proportion of the average fund assets accounted for by a fund’s charges. It contains all charges incurred at the expense of the fund assets, with the exception of transaction costs.
• Risk: ratings systems of the fund provider, the legislator and independent rating agencies provide information on an investment’s anticipated risk.