What are the Scheme Related Documents? What information do these documents provide?

What are the Scheme Related Documents? What information do these documents provide?

All mutual fund ads contain a message: “Read all scheme related documents carefully.” What are these documents?

There are 3 important documents: Key Information Memorandum (KIM), Scheme Information Document (SID) and Statement of Additional Information (SAI).

These are prepared by the Asset Management Company (AMC) about a particular scheme, and submitted to the Securities and Exchange Board of India (SEBI) for approval.

The SID has information like:

  1. All Fundamental Attributes like Investment Objective and Policies, Asset Allocation Pattern, Fees and Liquidity Provisions.
  2. Fund Management Team details
  3. All Risk Factors in the scheme as well as risk mitigation mechanisms.
  4. Scheme details like load, plans and options, past performance, benchmark.
  5. General Unitholder information.
  6. Other details like list of AMC branches, Investor Service Centres, Official Points of Acceptance.

 

The SAI has information like:

  1. The constitution of the
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