Offer document is a document filed by the mutual fund with the regulator Securities Exchange Board of India (SEBI)
The Offer Document has two parts – Scheme Information Document (SID) and Statement of Additional Information (SAI). SID shall incorporate all information pertaining to a particular scheme. SAI shall incorporate all statutory information on Mutual Fund.
The Mutual Fund has to prepare SID and SAI in the prescribed formats. Contents of SID and SAI follow the same sequence as prescribed in the format. The Board of the Asset Management Company and the Trustee(s) exercise necessary due diligence and ensure that the SID/SAI are in conformity with the Mutual Funds Regulations.
Mutual Fund would also publish a document called Key Information Memorandum (KIM) and all mutual fund application forms have to be accompanied by KIM. KIM has to be updated once a year and shall be filed with SEBI.
SEBI regulation stipulates that all offer documents are readily available to the investors. Investors can access offer documents at SEBI’s website (http://www.sebi.gov.in/Index.jsp?contentDisp=Section&sec_id=5) or at the website of the individual mutual funds. Yours distributor/advisor also would provide you these documents.
As an investor, it would be prudent if you go through the offer documents, as advertisements indicate, carefully before investing.
