Mutual Fund Offer Document – What to Look For ?

An abridged offer document, which contains very useful information, is required to be given to the prospective investor by the mutual fund. The application form for subscription to a Mutual Fund is an integral part of the offer document. SEBI has prescribed minimum disclosures in the offer document. An investor, before investing in a Mutual Fund scheme, should carefully read the offer document. Due care must be given to portions relating to main features of the Mutual Fund, risk factors, initial issue expenses and recurring expenses to be charged to the Mutual Fund entry or exit loads, sponsor’s track record, educational qualification and work experience of key personnel including fund managers, performance of other Mutual Fund schemes launched by the mutual fund in the past, pending litigations and penalties imposed, etc.

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