PRESENTATION ON SCHEME

RELATED DOCUMENTS OF MFs

PRESENTER:

NEHA BAHETI
1. SCHEME INFORMATION DOCUMENT

2. STATEMENT OF ADDITIONAL
INFORMATION

3. KEY INFORMATION MEMORANDUM

SCHEME RELATED DOCUMENTS

 Scheme Information Document

SID has the information about the scheme that a prospective investor
ought to know before investing.
COVER PAGE
OF SID
  Table of Contents
 Highlights/Summary
 Introduction
o Risk Factors
Standard § Scheme-specific
o Provisions regarding minimum number of
investors in the scheme
o Any other special considerations
o Due Diligence Certificate (issued by AMC)
 Information about the scheme
o Name and type of the scheme
FORMAT OF SID o Investment Objectives and Policies
o Asset Allocation Pattern
o Where will the scheme invest
o Investment Strategy
o Fundamental Attributes
o Benchmark
o Managers of the Scheme
o Investment Restrictions
o Performance track record of the scheme
 Units and Offer
 Fees & Expenses
 Rights of Unit-holders
 General Unit-holder information
 Penalties, Litigation etc.
 CONTENTS OF SID
 Eligible investors
SID provides a list of categories of investors who are eligible to invest in the scheme and also who are
not eligible to invest in the scheme. (Section III, Sub-section A & B)

 Scheme suitability
Depends upon multiple factors such as the financial need of the investor from the investment, the risk
and return preferences, the investment horizon and other individual preferences.
a. The Riskometer and Statement of the suitability of the scheme (Front page only)
b. The risks in the scheme (Section I, Sub-section A)
c. The Type of Scheme - ‘Information about the Scheme’ (Section II, Sub-section A)
d. Investment Objective of the scheme (Section II, Sub-section B)
e. Asset Allocation of the scheme (Section II, Sub-section C)
f. Regulatory restrictions (Section II, Sub-section D)
g. Investment Strategy (Section II, Sub-section E)
 INFORMATION IN SID
 Buying units of scheme from mutual fund (Part A and B of Segment III )
 Applying for Units of a mutual fund scheme (Section III, Sub-section A and B)
 Transactions: purchase and repurchase prices (Section III, Sub-section A and B)
 Load Structures (Segment IV, sub-section C)
 Investment limits: maximum and minimum amount an investor can invest (Section III, Sub-section A &
B)
 Plans and options available under the scheme (Section III, Sub-section A and B)
 Modes of transaction (Segment II)
 Liquidity and Redemption in a scheme (Section III)
 Fees, expenses, transaction charges (Section IV)
 Special products and facilities (Section III )
 Sources of information (Section III)
 Calculation of the scheme’s Net Asset Value (NAV) per unit (Sub-section D of Section III)
 Tax implications (Section III, sub-section C )
 Fundamental Attributes (Section I of SID)
 Statement of Additional Information

SAI has statutory information about the mutual fund or AMC, that is offering the
scheme. Therefore, a single SAI is relevant for all the schemes offered by a mutual
fund.
 CONTENTS OF SAI
 Constituents of the mutual fund (Section I of the SAI)

 How to Apply (Section II of the SAI)

 Rights of Unit-holders (Section III of the SAI)

 Investment Valuation Norms (Section IV of the SAI)

 Tax, Legal & General Information (Section V of the SAI)

 Investor Grievance (Sub-section C of Section V of the SAI)

 “KEY INFORMATION
MEMORANDUM
”
KIM is essentially a summary of the SID and SAI. It contains the key points of these
documents that are essential for the investor to know to make a decision on the
suitability of the investment for their needs.
COVER PAGE
OF KIM
  NAME OF THE AMC, MUTUAL FUND,
TRUSTEE, FUND MANAGER AND SCHEME
 DATES OF ISSUE OPENING, ISSUE CLOSING
AND RE-OPENING FOR SALE & PURCHASE
 INVESTMENT OBJECTIVE
 ASSET ALLOCATION PATTERN OF SCHEME

CONTENT OF 


RISK PROFILE OF THE SCHEME
PLANS AND OPTIONS

KIM 


BENCHMARK INDEX
DIVIDEND POLICY
 PERFORMANCE OF SCHEME OVER THE
YRS
 EXPENSES OF THE SCHEME
 INFORMATION REGARDING
REGISTRATION OF INVESTOR GRIEVANCES
 Disclosure of Daily NAV
In case of open ended schemes, the NAV is calculated for all business days and released to the Press.
In case of closed ended schemes, the NAV is calculated at least once a week.

 Disclosure of Total Expense Ratio

SEBI has mandated that the Asset Management Companies (AMCs) should prominently disclose on a daily basis, the
Total expense ratio (scheme-wise, date-wise) of all schemes under a separate head – “Total Expense Ratio of Mutual
Fund Schemes” on their website.

 Scheme-wise dashboard on mutual fund website

Each AMC is also required to publish a scheme performance dashboard on the website, and update it on a regular
basis.

 Portfolio disclosure
This is a list of securities where the corpus of the scheme is currently invested.

MANDATORY DISCLOSURES
 Financial results
The mutual fund shall before the expiry of one month from the close of each half year, (Mar 31st and Sep 30th) shall
display the unaudited financial results on AMC website.

 Annual reports and related disclosures

Annual report or abridged summary is required to be hosted on AMCs website and on the website of AMFI.

 Addendum
The interim changes in SID, SAI and KIM are updated through the issuance of Addendum.

 Fund Factsheet (Non-Mandatory Disclosure)

The fund factsheet contains the basic information of each scheme such as the inception date, corpus size (AUM),
current NAV, benchmark and a pictorial depiction of the fund’s style of managing the fund.
it is not a regulatory requirement to publish the monthly fact sheet, it is a market practice followed by all the fund
houses, on a voluntary basis.

DISCLOSURES
THANK YOU!!