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Key Documents & Fact Sheets

What is a Fact-Sheet?What is a SID, SAI & KIM in mutual funds?

What is a Fact-Sheet?

 

A mutual fund fact-sheet is a concise document that provides key information about a mutual fund. It's typically issued monthly or quarterly by the fund house (asset management company) and is designed to help investors quickly understand the fund’s performance, strategy, and risk.

Key Elements in a Mutual Fund Fact-sheet:

  1. Fund Overview: Name, type (e.g., equity, debt, hybrid), launch date, fund manager.
  2. Investment Objective: What the fund aims to achieve (e.g., capital growth, income).
  3. Asset Allocation: Distribution of assets (equity, debt, cash, etc.).
  4. Top Holdings: Major stocks or securities the fund is invested in.
  5. Performance Data: Returns over different time frames (1 year, 3 years, 5 years).
  6. NAV (Net Asset Value): The per-unit value of the fund.
  7. Risk Metrics: Indicators like standard deviation, Sharpe ratio, beta.
  8. Expense Ratio: Annual fee charged by the fund as a percentage of assets.
  9. Benchmark Comparison: Fund’s performance relative to a benchmark index.
  10. Fund Manager Commentary (optional): Insights on strategy and market outlook.

In short, a fact-sheet helps investors assess whether a mutual fund aligns with their goals and risk appetite.

What is a SID, SAI & KIM in mutual funds?

In the context of mutual funds in India, the terms SID, SAI, and KIM refer to official documents that provide detailed and legally required information about a mutual fund. These are regulated by SEBI (Securities and Exchange Board of India).

1. SID – Scheme Information Document

  • What it is: A detailed document that contains specific information about a particular mutual fund scheme.
  • Includes:
    • Investment objective and strategy
    • Asset allocation pattern
    • Risk factors
    • Past performance
    • Fees and expenses
    • Fund manager details
  • Purpose: To help investors understand the characteristics of the scheme before investing.

2. SAI – Statement of Additional Information

  • What it is: A supplementary document to the SID that contains statutory and general information about the mutual fund house (AMC).
  • Includes:
    • Sponsor and AMC details
    • Key personnel
    • Tax implications
    • Investor rights and services
  • Purpose: Provides background and legal information about the fund house and its operations.

3. KIM – Key Information Memorandum

  • What it is: A summary of the SID and SAI, designed to provide essential information in a brief and simple format.
  • Includes:
    • Basic features of the scheme
    • Risk factors
    • Fees and expenses
    • Past performance
    • Application form
  • Purpose: To help investors quickly understand the key aspects of a scheme before investing. It must be provided before the investor signs up.