A Scheme Information Document (SID) is a legal document that contains detailed information about a mutual fund scheme offered by a mutual fund house. The SID provides information on the investment objective, investment strategy, asset allocation, risk factors, and other essential details about the mutual fund scheme.
The SID is prepared by the mutual fund house and approved by the Securities and Exchange Board of India (SEBI), which is the regulatory body that oversees the mutual fund industry in India. The SID is an essential document that investors must read carefully before investing in a mutual fund scheme.
The SID provides detailed information on the following aspects of a mutual fund scheme:
- Investment Objective: The SID explains the investment objective of the mutual fund scheme and the investment strategy that the fund manager will use to achieve the objective.
- Asset Allocation: The SID provides details on the asset allocation strategy of the mutual fund scheme, including the percentage of the portfolio that will be invested in various asset classes such as equity, debt, and money market instruments.
- Risk Factors: The SID provides information on the risks associated with investing in the mutual fund scheme. It includes details on the risks specific to the scheme, as well as general market risks.
- Performance: The SID provides information on the historical performance of the mutual fund scheme, including the returns generated over various time periods.
- Fees and Expenses: The SID provides details on the fees and expenses associated with investing in the mutual fund scheme, including the expense ratio, exit load, and other charges.
Investors should read the SID carefully before investing in a mutual fund scheme and should consider their investment objectives, risk tolerance, and other factors before making an investment decision. It’s essential to understand the risks associated with investing in mutual fund schemes and choose a scheme that aligns with your investment goals and risk tolerance.