The Securities & Exchange Commission is looking for investor input on its new ideas for improving mutual fund disclosures.

According to the SEC, the purpose of the new proposals is to provide investors "with concise information about mutual funds that is easier to use than the mutual fund prospectuses available today." The proposal includes a requirement of a summary section in every prospectus that would include investment objectives, costs, principal investment strategies, risks and performance, top ten portfolio holdings, a list of investment advisers and portfolio managers, brief purchase, sale, and tax information, and information about broker compensation and conflicts.

A model prospectus summary on the SEC website is a great improvement over the current system which requires investors to leaf through mountains of boilerplate to find key information about their funds.

According to an article in the latest issue of SmartMoney (not available online), the industry is supportive of the measure as it will save it about $182 million in printing and mailing costs! But the industry is resistant to further suggestions that the new model for prospectuses should also include additional comparative data on fees and performance. It's a shame that the industry is opposed to giving investors more information; good funds would probably want to provide investors with this kind of data.

But the streamlined prospectus is a great improvement and hopefully it will come to fruition soon. Only about 10% of investors read prospectuses before investing in funds, and that number ought to be 100%.