What is a key investor information document?
The Key Investor Information Document holds the most pertinent information about a Fund. It is often referred to as the KIID.
All Funds have to make the KIID readily available for investors.
How to read a KIDD
You should read it to check the investment has exactly what you are looking for. You wouldn’t buy a new tv without checking through some of the specifications, the same goes for your investments.
The KIID documents are usually just two of pages long. It only takes a couple of minutes to read one.
Here is an example of the FTSE100 Index Fund.
On page one you will find:
- It is tracking the FTSE100 index
- The fund is passively managed
- Dividends will be accumulated rather than paid out as income
- The currency is in GBP
- Risk profile in 6
At just a quick glance you can work out if it is tracking the right index, accumulating or paying out a dividend and the currency.
On page 2 you will find:
- There is no entry or exit charges
- The on-going charge is 0.06%
- The tracking error is small
After a few more seconds I can see the costs and how well the fund is tracking the index.
It doesn’t take much time to check the key features of an investment.
Make sure you also read the Fact Sheet. The Fact Sheet will give you further information on the fund size, the historical dividend and a breakdown of the key holdings.
Always do your research fully before making any investment.
This KIID document was taken from Hargreaves Lansdown