Mutual Funds
What should an investor look into an offer document?
An abridged offer document, which contains very useful information, is required to be given to the prospective investor by the mutual fund. The application form for subscription to a scheme is an integral part of the offer document. SEBI has prescribed minimum disclosures in the offer document. An investor, before investing in a scheme, should carefully read the offer document. Due care must be given to portions relating to main features of the scheme, risk factors, initial issue expenses and recurring expenses to be charged to the scheme, entry or exit loads, sponsor's track record, educational qualification and work experience of key personnel including fund managers, performance of other schemes launched by the mutual fund in the past, pending litigations and penalties imposed, etc.
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More from this specialization
- What is a Mutual Fund?
- How to choose a scheme for investment from a number of schemes available?
- When will the investor get certificate or statement of account after investing in a mutual fund?
- What is a Load or no-load Fund?
- What is the maximum brokerage that a broker/sub broker can charge?
- How long will it take for transfer of units after purchase from stock markets in case of close-ended schemes?