HOW TO READ MUTUAL FUNDS DOCUMENTS:
HOW TO READ MUTUAL FUNDS DOCUMENTS
All the advertisements about Mutual Fund Investments give a disclaimer, in the end, saying “please read all scheme related documents carefully before investing “.
It is not rare that new investors or such investors who do not possess much knowledge about MFs end up.
These documents contain long pages with a lot of technical languages. Reading this is a very difficult &tedious taste for beginners, Therefore, bankers or financial agents & advisors are approached to help investors invest faithfully.
Important things to read in an offer document.
1) Date of issue: To see that you have received an up to date & they should be updated on an annual basis.
2) Investment objectives: The goal of each fund should be clearly mentioned, all of its objectives should match with the personal objectives of the investors.
3) Investment Policies:- All the securities or stocks the amount will be invested/ reinvested in should be mentioned in the OD.
4) Risk factors: All the risks including with the investment & the contingencies should before with mentioned in the OD.
5) Past Performance Data: Any company can attract new& potential investors by showing them past performance & giving them an assurance through actual data & growth potential.
6) Fees & Expenses: The entry fee, exit fee, interests, annual exports services costs, etc. Involved with the MF is in the OD.
7) Tax Benefits: All the subsidies, tax reliefs or returns & other benefits the MF carries is mentioned & should be read carefully.