SAI: Understanding the Statement of Additional Information for Mutual Funds

The statement of additional information or SAI is a document that is provided by mutual fund companies to their investors. It is usually issued in conjunction with the mutual fund prospectus. Here are a few things to consider about the statement of additional information and why it is important.

Statement of Additional Information

The statement of additional information is a document that is optional for mutual fund companies to release. Some companies release the statement of additional information attached to the prospectus, while others do not release it at the same time. With some companies, you have to actually request a copy of it before you can get it. 

What It Includes

A statement of additional information is typically going to include a lot of more detailed information when compared to the mutual fund prospectus. This information is not necessarily critical for investors when they are trying to make a decision to invest in a mutual fund or not. Most of the time, the statement of additional information is going to include information about the policies of the mutual fund, the risks, the management team, and the operations of the fund and how it works.