The Key Investor Information Document (KIID) provides essential details about a mutual fund, including fees, risks, and past performance.
Why is Option B Correct?
KIIDs are legally required under EU UCITS (Undertakings for Collective Investment in Transferable Securities) regulations.
They outline:
Ongoing charges (e.g., management fees).
Entry/exit fees.
Performance fees (if applicable).
Why Not Other Options?
A (Key Features Document) → Used for insurance products, not mutual funds.
C (Prospectus) → A detailed document, but not focused on fees.
D (Terms of Business) → Covers a firm’s general services, not fund costs.
???? Reference: FCA Handbook (KIID Requirements), CISI Wealth & Investment Management.