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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Legal and Regulatory Framework

Which of the following is true of the SEBI-prescribed Scheme Information Document (SID) and Statement of Additional Information (SAI) of a mutual fund?

The SID gives scheme-specific details like objective, asset allocation and risks, whereas the SAI gives general information about the mutual fund and the AMC. The AMC prepares both and files them with SEBI, and investors can get them on request.

  1. AThe SID contains scheme-specific details, while the SAI contains general information about the mutual fund, and both are filed with SEBICorrect
  2. BThe SID is prepared only by the distributor and is not filed with SEBI
  3. CThe SAI contains only the NAV history of the scheme
  4. DNeither document is required to be made available to an investor on request

Explanation

The SID has scheme-specific details such as the objective, asset allocation, risk factors and fees, while the SAI holds statutory and general information about the mutual fund and AMC. Both are prepared by the AMC and filed with SEBI, and investors can obtain them on request. The distributor does not prepare them and the SAI is not just a NAV record.

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