KID v KIID

Before investing, you should always do some research to help you understand the risks and potential rewards.

Investing in funds? The good news is that one document can tell you everything you need to know about a fund – including its charges, risk rating, and investment profile.

This used to be called the Key Investor Information Document (KIID). But now you might see a simplified version, called the Key Information Document (KID).

Both the KIID and KID are designed to give investors an overview of a fund’s key features, making it easier to compare different funds. And as they’re written in plain language, you don’t need to be an expert to read them.

What is the difference between a KIID and a KID?

A KIID is the older version of a KID. It was designed to replace a fund’s simplified prospectus, so that non-expert investors could get the information they need in a short, standardised format.

KIIDs are two pages long and made up of six sections, covering:

1. Fund, share class and management company details
2. Objectives and investment policy
3. Risk and reward profile
4. Charges
5. Past performance details
6. Other practical information

The newer KIDs are three pages long and have eight sections, covering:

1. The fund manufacturer’s details
2. The fund’s objectives
3. An overview of the risks and what you could get in return
4. Information on any guarantees attached to the fund if the manufacturer can’t pay out
5. Costs
6. Recommended holding period
7. Contact details if you need to make a complaint
8. Other relevant information

What extra information do you get from a KID?

There’s one main difference between these two types of key information document. A KIID only shows the fund’s past performance, but a KID includes forward-looking performance scenarios.

To project future returns, a KID uses historical data as well as four different economic conditions (essentially from bad to good). Remember, though, that this is an estimate and isn’t a guaranteed return.

Various factors can influence the direction of markets. A fund has no guarantees, so it’s impossible to say exactly how much you would get by investing in it.

Where do I find a KIID or KID?

Before making the decision to invest in a fund, you should make sure you read all the information available on the funds overview page, take a look at the AJ Bell Adventurous fund as an example. There you will find all the details you need to help you decide whether a fund is right for you. The fund's KIID is clearly sign posted here, as well as all charges, it's objective, past performance and plenty more.

If you're ready to start researching funds to invest in, head over to the funds section of our site to search for funds and to see which funds our customers trade most frequently.