Offer Documents and Statements
In your Scheme Information Document, watch out for the fund features, risk factors, initial issue expenses, recurring expenses, entry or exit loads, track record of the sponsors, educational qualification and professional experience of the key personnel managing your fund and the performance of other schemes launched by the mutual fund in the past. You should also check and be aware of pending litigations and penalties imposed, if any.
Yes! Absolutely! By law, mutual funds are required to disclose their complete portfolios twice a year. These are published in leading newspapers, and some mutual funds also send out these details to their unit holders. You get details of which securities have been invested in, what is the proportion in which they have been invested, their market values and NAVs. They also declare illiquid securities, investments made in rated and unrated debt securities, Non-Performing Assets, etc.
Yes. Such a change is allowed. However, it is mandatory that the mutual fund sends a written communication about it to every investor and also issues an advertisement announcing the same in one English-language daily that gets circulated nationally, and one regional-language daily that is circulated in the region where the mutual fund has its head office. As an investor, you then have a right to exit the scheme without any exit load if you do not wish to continue with the scheme. A similar process is followed when your mutual fund changes the scheme from open ended to closed ended and vice versa or if there is a change in its sponsor.
You will receive communication from the mutual fund in case of material changes to your scheme. Also, a quarterly newsletter, revised and updated mutual fund documents at least once in two years and addendums to the document in the interim period till the updated scheme documents are sent out, will let you keep track of any changes made to your mutual funds.
Within 6 weeks of the date of closure of the initial subscription of the mutual fund scheme you have invested in, the mutual fund company will dispatch a certificate or statement of account. If you invest in a close ended scheme, you will receive a demat account statement or unit certificate and if you invest in an open ended scheme, you will receive a statement of account within 30 days of closure of the initial fund offer.
According to SEBI regulations, transfer of units needs to get done within thirty days from the date of lodgement of certificates with the mutual fund.
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