The SID and SIA are both lengthy documents. Is there a more compact document that offers information about a scheme?
Isn't information supposed to be available with the application form?
SEBI, the mutual fund regulator, recognises the importance of providing information to investors to make informed investment decisions before applying to purchase units in any mutual fund scheme. Accordingly, it has specified1:
No one must issue any form of application for mutual fund units unless it is accompanied by a memorandum2 containing such information as SEBI may specify.
Mutual fund application forms must be accompanied by the Key Information Memorandum (KIM), which must be printed in at least a 7-point font size with adequate spacing for easy understanding.
How can I be certain that KIM contains all necessary information?
Mutual funds must prepare KIM in the prescribed format. The contents of KIM must follow the same order as specified in the format.
How can I be certain that the information given in the KIM is not outdated?
The AMC must update the KIM at least once a year and file it with SEBI.
If case of changes in the scheme information document (SID) except for changes in fundamental attributes3, the addendum circulated to all distributors/brokers/Investor Service Centre (ISC) must be attached to the KIM until the KIM is updated.
If any information in SID is amended more than once, the most recent applicable addendum shall be included in KIM (For example, in case of changes in load structure the addendum carrying the latest applicable load structure shall be attached to all KIM and SID already in stock till it is updated).
Sample KIM
To learn more, you can get a KIM of the above-mentioned scheme by following this link. You will notice that the first 46 pages contain information about the scheme, followed by the application form.
Regulation 29(4) of the SEBI Mutual Fund Regulations, 1996.
Refers to a document recording the terms of a contract or other legal details. It means “to be remembered”.
as defined in Reg 18 (15A).