What is a Scheme Information Document (SID)?

Providing investors with comprehensive information about the mutual fund scheme is the primary goal of the offer and scheme-related papers. All investments must be well-informed, and reading these materials may contribute to the much-needed openness. Although a SID's structure varies from fund house to fund house, the material is generally organized similarly.

Scheme Information Document Definition

Mutual fund firms give potential investors a detailed document called a Scheme Information Document (SID). It provides crucial details regarding a certain mutual fund plan, assisting investors in making well-informed selections before investing. The SID is an important resource for information on a mutual fund scheme's characteristics, risks, and conditions.

Where can investors find the SID?

The scheme information document is freely available online. You can find it on the website of the relevant mutual fund house. The SID, along with other key documents, will be typically available on the dedicated scheme page. You can also find the SID on authorised third-party investment platforms.

Additionally, all SIDs are filed with the Securities and Exchange Board of India and can be found on their website.

Key Points of Scheme Information Document (SID)

Information disclosure: The SID offers comprehensive details on the asset allocation, investing approach, risk considerations of the mutual fund scheme. It reveals the kinds of securities the fund may invest in and how it plans to accomplish its objectives.

Fund structure:Details on the fund's structure, including the choices available within each plan (such as Income distribution cum capital withdrawal (IDCW) payment and reinvestment) and the sorts of options offered (such as growth and IDCW options), are accessible to investors.

Fees and expenditures:This document lists all fees and expenditures related to the mutual fund plan, such as the expense ratio, exit load, and any additional charges that investors may be subject to.

Risk factors: This covers risks related to the market, credit, interest rates, and other variables that might impact the mutual fund's performance.

Benchmark and performance: The benchmark against which the fund's performance is evaluated is usually included in the SID. Historical performance statistics can give investors a sense of how the fund has fared over various periods.

Information on law and regulation: This paper outlines the legal and regulatory requirements and the rights and obligations of the investors and trustees. It also offers information on the regulatory structure that oversees the mutual fund sector.

Considerations of scheme information document

Required Reading:Investors may also get a Key Information Memorandum (KIM) and a Statement of Additional Information (SAI) in addition to the SID. These publications provide further information about the mutual fund house and the schemes/plans offered by the mutual fund.

Investors may benefit greatly from the Scheme Information Document, which provides clear and comprehensive details regarding a mutual fund scheme. It makes it easier for investors to comprehend the fund's goals, risks, and expenses, empowering them to make wise investment decision. While understanding the SID is crucial, don't forget about planning your investments. An SIP yearly calculator can be a useful tool to estimate your potential returns based on your contributions.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.