Disclosure of basic information about mutual funds, including those involving municipal securities, should be provided to investors through the Internet at the point when the funds are sold, the National Association of Securities Dealers recommended to the Securities and Exchange Commission yesterday.

The NASD said so-called point-of-sale disclosure could be improved if the SEC mandates that broker-dealers use "Profile Plus," a two-page document format recommended by the NASD that would provide basic information about a mutual fund, including is investment objectives, risks, performance, fees and expenses, and information about potential conflicts of interest.

The NASD also recommended that every broker-dealer be required to post on its Web site a Profile Plus for each mutual fund it sells with hyperlinks to the fund's prospectus and to a dealer disclosure statement with more information about the broker-dealer's potential conflicts of interest. Investors would also have the option of requesting paper delivery of the document.

The use of Profile Plus is the chief recommendation of the NASD's mutual fund task force report on mutual fund distribution and was included in the self-regulatory group's comment letter to the SEC on its proposed rules governing point-of-sale disclosure and confirmation requirements in mutual funds, college savings plans and other securities.

"Good point-of-sale information is crucial for investors and Profile Plus would build on the SEC's proposal by adding formation about investment risks, objectives and performance — three of the most important things investors need to consider with purchasing a mutual find," NASD chairman and CEO Robert R. Glauber wrote in the letter to the SEC.