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New SEC Fund Online Research Tools Hits The Internet Super Highway

April 8, 2008

The Securities and Exchange Commission (SEC) just launched their new Mutual Fund Reader, an online tool that lets fund investors review data provided by fund companies to the SEC:

The Mutual Fund Reader enables fund investors to read, analyze and compare mutual fund information concerning cost, risk, investment objectives and strategies, as well as historical performance.

The SEC adopted a new rule in June 2007 enabling mutual funds to submit risk/return summary information voluntarily from their prospectuses using XBRL, a computer software language that labels company financial and business data so investors and analysts can more easily find what they’re looking for and use the information for comparisons.

Twenty mutual funds so far are using the XBRL system, and additional filers are expected to participate in the coming months, the SEC wrote in a press release."

With such a small sampling of mutual funds contributing to the system at launch, there's not a heck of a lot data to compare at the moment - but down the road this could be a useful tool.

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