A Key Information Document (KID) provides a standardised overview of an investment product. For funds made available to retail investors under PRIIPs, it is an important part of the pre-investment documentation.
The European Commission's PRIIPs overview describes KIDs as documents of up to three pages covering the product, intended investors, risks, scenarios, costs and complaints information.
Start with the identity and date
Match the KID to the fund, compartment, class and currency being researched. Check its date alongside the governing documents and subscription conditions. A class with a different fee schedule may have a different investor outcome.
Read the product description
Identify the strategy, permitted instruments, intended investor profile and recommended holding period. Separate these from the fund's term and actual redemption conditions.
A regulatory regime does not by itself determine the portfolio. Read what the fund is permitted to hold and compare that with the latest reported holdings.
Interpret the Summary Risk Indicator
The PRIIPs SRI is shown on a 1–7 scale. Read the product-specific explanation and assumptions, including the holding period. Do not treat the number as a forecast of returns, a precise probability of loss or a verdict on the manager.
For UCITS made available to retail investors in the EU, the PRIIPs KID replaced the UCITS KIID from 1 January 2023. Portuguese documents may call the KID a DIF and the earlier KIID an IFI. Historical UCITS documents may use the differently calculated SRRI, rather than the PRIIPs SRI. Keep the document types and indicators distinct when comparing current and historical records.
Investor classification also matters. The Joint European Supervisory Authorities’ PRIIPs Q&A links retail status to the MiFID II professional-client criteria. A EUR 500,000 subscription or a local “qualified” or “informed” investor label does not itself establish professional-client status. Confirm the applicable classification and documents with the provider.
The numerical indicator should be read with the accompanying discussion of liquidity and other characteristics. Avoid assigning a standard risk score to every fund in an asset class.
Performance scenarios are illustrations
A KID can present stress, unfavourable, moderate and favourable outcomes calculated under the applicable methodology. These are distinct from actual historical performance and from a manager's commercial target.
The moderate scenario should not be presented as a promised return or simply described as the manager's central forecast. Outcomes depend on the product, methodology and assumptions. Avoid translating scenario labels into universal probabilities.
For comparison, record the period, assumed investment amount, currency, costs included and the date of the document. Do not compare an eight-year cumulative illustration with a five-year annualised figure as though they were the same measure.
Costs and holding periods
| KID information | What to compare with the fund terms |
|---|---|
| Entry and exit costs | Class-specific charges and how they are collected. |
| Ongoing costs | Components included and calculation assumptions. |
| Performance fees or carry | Applicable thresholds and allocation mechanics. |
| Cost impact | The illustration's period, amount and assumptions. |
The KID is a summary. The documents may contain further definitions needed to model a fee or waterfall. Historical NAV results may already include fund-level costs; separately charged investor costs require separate treatment.
Connect the KID with the wider research
Read the KID alongside management regulations, prospectus or other governing documents, financial reports and portfolio data. This connects a standardised summary with the fund's current exposures and operating terms.
Portugal Funds brings these sources into the same research workspace. Our fund terms guide explains fee mechanics, and research consultancy can support understanding a document without making personal investment recommendations.