What are Scheme Information Documents (SID)

Unlock the secrets of Scheme Information Documents (SID) and discover why every savvy investor needs to delve into these crucial documents before making investment decisions.
What are SID
4 mins
4 Nov 2023

Investing in mutual funds can be a great way to grow your wealth over time. However, it’s important to understand the risks and benefits of each mutual fund scheme before investing your hard-earned money. One of the most important documents that can help you make an informed investment decision is the Scheme Information Document (SID). In this article, we will discuss what SID is, where investors can find it, and what information it contains.

What is Scheme Information Document (SID)?

Scheme Information Document (SID) is a document that provides investors with all the necessary information about a mutual fund scheme. It includes details such as minimum subscription amounts, exit and entry loads, SIP details, fund managers and their experience, risk level, the scheme’s objective, etc. SID is one of the many fund offer documents and has almost all the information about a mutual fund scheme.

Where can investors find the SID?

SIDs are easily available on Asset Management Company (AMC) websites or any investment platform you pick. For example, on our website, you can find the SID under the “Scheme Documents” section of each mutual fund scheme.

What is contained in a scheme information document?

An SID contains all the necessary information about a mutual fund scheme that an investor should know before investing. Here are some of the key points that are covered in an SID:

  • Investment objective
  • Asset allocation or how much will be invested in which asset
  • Investment strategy and objective
  • Category of the fund; equity or debt
  • Minimum subscription amounts
  • Exit and entry loads
  • SIP details
  • Fund managers and their experience
  • Risk level

How to read a scheme information document of mutual fund?

Reading an SID can be overwhelming due to its length and technical jargon. Here are some tips on how to read an SID effectively:

  • Start with the introduction section which explains the aim behind launching a particular scheme.
  • Look for the investment objective which explains how the fund plans to achieve its objective.
  • Check out the asset allocation section which mentions how much will be invested in which asset.
  • Understand the investment strategy and objective.
  • Look for fees and expenses such as exit loads, entry loads, etc.
  • Check out the risk level associated with different aspects of the scheme.

Fees and expenses

Fees and expenses are an important aspect of mutual funds that investors should be aware of before investing. Here are some fees and expenses that are mentioned in an SID:

  • Entry load: The fee charged when an investor purchases units of a mutual fund
  • Exit load: The fee charged when an investor sells units of a mutual fund
  • Expense ratio: The total expense incurred by an AMC to manage a mutual fund scheme

In conclusion, the SID is the most important document for investors to read when choosing a mutual fund scheme. It includes every detail pertinent to the scheme, and gives you a fair idea of the risks as well as benefits associated with investing in any mutual fund.

Calculate your expected investment returns with the help of our investment calculators

Investment Calculator

SIP Calculator

FD calculator

SDP calculator

Gratuity Calculator

Frequently asked questions

What should I look for in a scheme information document?

Here are the key sections to look for in an SID:

  • Highlights and summary: A brief overview of the scheme
  • Introduction: Details about the risks associated with different aspects of the scheme
  • Information about the scheme: This includes asset allocation, investment strategy, category of the fund, etc.
  • Units and offer: Details about the units offered by the scheme
  • Fees and expenses: Information about the costs associated with the scheme
  • Rights of unitholders: Details about the rights of investors
  • Penalties and pending litigation: Information about any penalties or pending legal issues
  • Riskometer
What is a key information memorandum?

Key Information Memorandum (KIM) is like a synopsis of an SID. It provides essential details about a particular scheme. The list below mention some of the points mentioned in the KIM:

  • Scheme information: Name, type, and category of the scheme
  • Investment objective: The primary goal of the scheme
  • Fund manager details: Information about the person managing the fund
  • Asset allocation: Breakdown of where the fund’s assets will be invested
  • Benchmark index: The index against which the fund’s performance will be measured
  • Risk factors: Potential risks associated with the investment
  • Performance details: Past performance of the scheme
  • Load structure: Entry and exit load details
  • Minimum investment amount: The least amount that can be invested
  • Tax implications: Tax treatment of the returns from the scheme.
  • Risk profile
What is a mutual fund factsheet?

A mutual fund factsheet is like a snapshot of the scheme that provides investors with information about its performance history, investment objective, portfolio, industry classification and AUM.

What is the importance of scheme information document?

An SID is essential when choosing which mutual fund to invest money in, as it contains the end-to-end information about the scheme in question. By carefully reading the SID, and comparing the SIDs of various mutual funds against each other, investors can make informed choices about their investments.

Mention what is Statement of Additional Information (SAI)?

The statement of additional information (SAI) is a supplementary document that provides investors with insights into the operations and legal aspects of the mutual fund. It contains additional information about the mutual fund, including details on the asset management company (AMC), sponsors, and trustees. The SAI also includes information on financial and legal matters. The document is not specifically about the scheme but provides information on a larger note. It also mentions names of key persons of the asset management company, registrars, bankers, custodian legal counsel, and auditors. The SAI is a required document to be formalized by a mutual fund company, but it does not need to be sent to prospective investors except upon request.

Show More Show Less