In the context of mutual funds, what does the prospectus provide?

The prospectus is a crucial document that mutual funds must provide to potential investors. It serves as a detailed guide to the fund's objectives, investment strategies, risks, and fees, essentially offering a comprehensive overview of the fund’s operations. Specifically, it includes information on the past performance of the fund and outlines the investment strategies that the fund will employ to achieve its goals.

By including both the fund's historical performance and the strategies it plans to use, the prospectus allows investors to make well-informed decisions based on relevant data. Understanding past performance gives investors a glimpse into how the fund has responded to market conditions in the past, while the investment strategies delineated in the prospectus help investors determine whether the approach aligns with their own investment objectives and risk tolerance.

Therefore, the choice that encompasses both the past performance of the fund and investment strategies captures the essential elements provided in the prospectus, making it the correct response.