Before You Invest
Risk Factors · SID · SAI · KIM
Mutual fund investments are subject to market risks. Understand what can affect your investment, and read the scheme’s offer documents before you invest.
Explore Documents →Three documents, one purpose
Know exactly what you are investing in before you invest.
Read Before You Sign
When you invest in a mutual fund, you are agreeing to the terms written in its offer documents. Most investors never open them. A few minutes with these documents tells you more than any advertisement.
Know the rules
What the fund is allowed to buy, and how much of it.
Know the cost
Expense ratio and exit load reduce what you take home.
Know the risk
The Riskometer and risk factors, stated plainly by the fund itself.
Know your rights
How to redeem, switch, nominate and complain.
What Can Affect Your Investment
A mutual fund’s NAV (the value of each unit) moves with the securities it holds. These are the main things that can push it down.
The SID, SAI and KIM of every mutual fund scheme are available on SEBI’s website: sebi.gov.in/filings/mutual-funds
Market volatility
Share and bond prices rise and fall every day. The NAV moves with them, and can fall below what you invested.
Political and economic changes
Elections, policy shifts, interest rates, inflation and global events can move markets sharply.
Force majeure events
Events outside anyone’s control, such as pandemics, natural disasters or war, can disrupt markets.
Default by issuers
A company or borrower whose bonds the fund holds may fail to pay interest or repay principal on time.
Bankruptcy or insolvency
If an issuer goes bankrupt, the fund may recover only part of its investment, or nothing.
Segregated portfolio
When a bond is downgraded or defaults, the AMC may separate it from the rest of the portfolio. Money tied up in the segregated part is paid out only if and when it is recovered.
Each scheme also has its own specific risks. You will find them in its SID, explained below.
Know What You Are Reading
SEBI requires every mutual fund to publish these three documents. Together they tell you what a scheme invests in, what it costs, how risky it is, and who runs it.
SID
Scheme Information Document
Detailed scheme-level document covering investment strategy, asset allocation, risk factors, expenses, exit loads, benchmark and fund manager information.
SAI
Statement of Additional Information
AMC-level corporate, legal, tax, trustee, custodian, KYC/FATCA and statutory information applicable across schemes.
KIM
Key Information Memorandum
A concise quick-reference summary covering scheme objectives, riskometer, minimum investment, TER, exit load and plan options.
A Closer Look at Each Document
What you will find when you open each one, and the sections worth reading first.
SID – Scheme Information Document
- Scheme type and investment objective
- Asset allocation: minimum and maximum limits for each asset class
- Investment strategy and benchmark index
- Fund manager(s) and their experience
- Scheme-specific risk factors and the Riskometer
- Plans and options (direct/regular, growth/IDCW)
- Expenses (TER) and exit load
- Minimum investment, purchase and redemption rules
- Past performance against the benchmark
Read first: objective, asset allocation, risk factors, exit load.
SAI – Statement of Additional Information
- The sponsor, AMC and trustee company
- Custodian, registrar (RTA) and auditors
- Key people on the AMC and trustee boards
- Your rights as a unitholder
- Tax treatment of mutual fund investments
- KYC, FATCA and nomination requirements
- Valuation policies
- Penalties and pending litigation, if any
Read first: unitholder rights, taxation, penalties and litigation.
KIM – Key Information Memorandum
- Investment objective and asset allocation, in brief
- Riskometer and benchmark
- Fund manager
- Plans, options and minimum investment
- Exit load and recent expense ratio
- Past performance summary
- Comes attached to the application form
Read first: the whole thing. It is short.
SID vs SAI vs KIM
| Feature | SID | SAI | KIM |
|---|---|---|---|
| Operational Scope | Scheme-Specific | AMC-Level | Scheme-Specific |
| Typical Length | 50–150 pages | 30–80 pages | 1–4 pages |
| Technical Depth | Detailed & comprehensive | Legal & corporate | Condensed & simplified |
| Primary Use | Detailed scheme review | AMC relationship & legal information | Quick application reference |
| Riskometer | Detailed analysis | General framework | Visual label |
| TER & Exit Load | Complete structure | General expenses | Summary breakdown |
Mutual Fund Riskometer
Every scheme carries one of six risk levels. The level depends on that scheme’s own portfolio, so two funds in the same category can sit at different levels.
Six Things to Check
Understand Risk
Review market, credit, interest-rate and liquidity risks and the current Riskometer.
Evaluate Costs
Check TER, exit loads and other applicable transaction costs.
Check Goal Alignment
Compare the scheme objective with your investment timeframe and goals.
Review Liquidity
Understand redemption timelines, exit-load periods and any applicable lock-ins.
Use Official Documents
Prefer current scheme documents from the AMC, SEBI, AMFI or other official channels.
Ask Us for a Copy
We will send you the SID, SAI or KIM of any scheme we distribute, free of charge, by email or in print.
Getting the Latest Documents
These documents are updated from time to time. Always use the most recent version.
AMC website
Every mutual fund publishes the SID, SAI and KIM of its schemes on its own website. This is the primary source.
SEBI and AMFI
SEBI’s mutual fund filings page carries the scheme documents filed with it. AMFI’s website links to all mutual funds.
MF Central and RTAs
MF Central and the registrars (CAMS, KFintech) provide scheme information and investor services.
AMC branches
Printed copies are available at AMC offices and investor service centres.
With the application form
The KIM comes attached to every application form. Ask for it if it is missing.
From us
Ask Banconus for any document, free of charge. See how →
Request Scheme Documents
Tell us the scheme name and the document you need. We will send it within 2 working days.
BANCONUS
Office: Flat No.10, 4th Floor, Shri Kaladhara, No.9/12, Alexandria Road, Cantonment, Trichy – 620001
Phone: +91 97910 13402
Email: office@banconus.com · info@banconus.com
Verify Before Investing
Scheme documents are published on each AMC’s website. You can also check these official portals.
