Scheme Related Information

NISM Series V-D | 7 marks | Official workbook pages 100-118

What this chapter is about

Learn which scheme documents are mandatory, what each document contains, when it is updated and how factsheets and other disclosures support investor decisions.

Core concepts

• The Scheme Information Document contains scheme-specific information such as objective, asset allocation, strategy, risks, benchmark, fees and operational terms.
• The Statement of Additional Information contains common statutory and organisational information about the mutual fund.
• The Key Information Memorandum is a concise scheme summary used with the application form and must be kept current as prescribed.
• SID, SAI and KIM follow SEBI-prescribed disclosure requirements. A factsheet is useful but is not a substitute for statutory documents.
• The addendum route communicates approved changes to scheme documents until they are incorporated in the next update.
• Non-mandatory disclosures include factsheets, portfolio commentary and other investor communication, but all remain subject to fair-presentation standards.
• NAV, portfolio, performance, risk and expense disclosures may have different frequencies. Learn the workbook's frequency table rather than assuming one cycle applies to all.

Exam focus

• 'Read scheme related documents carefully' primarily points to SID and SAI.
• SEBI prescribes the document framework.
• KIM must be updated at least at the frequency stated in the current workbook.
• A fund factsheet is not a statutory scheme document.

Quick revision - 60 second scan

• SID is scheme-specific.
• SAI is fund-house-wide statutory information.
• KIM is the concise application companion.
• Factsheet is periodic communication, not the legal core.