Here’s How To Read Scheme-Related Documents In Mutual Funds

Most of you would have heard the disclaimer that comes at the end of all mutual fund advertisements: “Mutual funds are subject to market risks, read all scheme-related documents carefully.” But many of you who may not have bothered to read these documents or would have been unable to sift through the 50-100 pages and look for the key details. Asset management companies (AMCs) prepare scheme information documents (SIDs) for each of their schemes before they submit them for approval to the capital markets regulator, the Securities and Exchange Board of India (Sebi). You can find SIDs on the websites of the AMC or the Association of Mutual Funds in India (Amfi) and some investment platforms. They contain information that can help investors make informed decisions. Here’s a list of things that are most relevant for you to check. Other Key Documents Statement Of Additional...