The Securities and Exchange Commission approved new rules requiring mutual fund companies to replace confusing prospectuses with a simpler brochure designed to let investors better evaluate funds. The agency is calling for two new documents to describe a fund's goals, risks, fees and performance: One is a three- to six-page profile and the other is a streamlined full-length prospectus. The profile is optional, but the simplified full prospectus is mandatory and must be used by all funds starting Dec. 1. Officials at Fidelity Investments, Vanguard Group, Dreyfus and T. Rowe Price Associates said they're drafting profile prospectuses. Others, including USAA Investment Management and American Express Financial Advisors, said they aren't yet sure how they'll use the three- to six-page profile summaries of fund performance, risks and characteristics.
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