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Key Information Document (KID)
Essential investor disclosure tool
Key Highlights
- Summary Risk Indicator (1-7 scale)
- Performance scenarios
- Comprehensive cost breakdown
- Standardized disclosure format
Key Information Documents (KIDs) are standardized disclosure documents mandated under the PRIIPs Regulation in the European Union and United Kingdom. They provide essential information about investment products in a consistent, accessible format to help retail investors make informed decisions.
KIDs contain several critical components, including the Summary Risk Indicator (SRI) which uses a scale from 1 to 7 to represent the relative risk of an investment. Other key elements include performance scenarios (favorable, moderate, unfavorable, and stress), a comprehensive breakdown of costs, investment objectives and policies, and recommended holding periods.
Unlike marketing materials or fund prospectuses that can be lengthy and complex, KIDs distill the most critical information into a concise format. This standardization enables meaningful comparisons between different investment options, helping investors align choices with their financial goals and risk tolerance.