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What is the Statement of Additional Information in Mutual Funds?

A mutual fund scheme's Statement of Additional Information (SAI) is a document that discloses additional details apart from what gets disclosed in the Scheme Information Document (SID). It provides information that investors could find helpful to make wise investment choices.

The Statement of Additional Information (SAI) has statutory information about the mutual fund or AMC that is offering the scheme. Therefore, a single SAI is relevant for all the schemes offered by a mutual fund. Every mutual fund house, on its website, provides for download of its SAI. However, investors can ask for a printed copy of the SAI. Through the official AMFI website, investors can access the SAI of all the mutual funds.

The SAI provides the details of the regulatory specifications on how different securities in the portfolio will be valued. The rules for valuation are standardized by the regulator, SEBI. SAI also provides information on legal aspects of the investment that deal with nominations, transfer and transmission of units, investment by minors, pledge/lien on units and others. Also, it provides details regarding taxation and other general information.

The mutual fund's legal structure, the functions, and responsibilities of important parties like the asset management company (AMC) and trustees, and any legal or regulatory issues that investors should be aware of are all described in the legal and regulatory disclosures (SAI).

The SAI should be read in addition to the SID. To comprehend the legal landscape and any hazards related to the mutual fund, investors must read the legal and regulatory disclosures included in the SAI. It supports investors in making defensible choices while adhering to legal requirements.

The SAI could get regular updates like the SID. When considering investing in a mutual fund scheme, investors should ensure they have the latest information by checking for changes. For investors looking to learn more about the fund house offering mutual fund schemes, the Statement of Additional Information is a great resource. Beyond what is included in the primary Scheme Information Document, it offers openness and comprehensive information.

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