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How to Invest in SIP A Beginner's Guide
In summary
A Scheme Information Document (SID) contains the scheme-specific information you need to understand before investing in a mutual fund. SEBI prescribes its format and disclosure requirements.
The main points to know are:
- SID explains a scheme’s objective and strategy.
- It shows asset allocation and investment limits.
- Risk disclosures help assess possible investment losses.
- Costs, loads, and investment terms are disclosed.
- Current SIDs have Section I and II.
- Subsequent updates follow a half-yearly cycle.
SEBI’s March 2026 Master Circular requires subsequent SID updates within two months after each half-year, using information as at the end of September and March. Always check the latest SID and any applicable addenda before investing
What is a Scheme Information Document?
A Scheme Information Document is the prescribed disclosure document containing information about a particular mutual fund scheme. It helps you understand the scheme before deciding whether its objective, risk, investment strategy, and terms match your requirements.
SEBI’s March 2026 Master Circular states that the offer document has two parts: the SID, which contains information relating to a particular scheme, and the Statement of Additional Information (SAI), which contains statutory information about the mutual fund.
The current SID format contains two broad sections. Section I carries dynamic, scheme-specific information. Section II provides expanded provisions and references to the regulations, circulars, and guidelines connected with those disclosures.
What information should you check in an SID?
Start with the investment objective, asset allocation, risk, benchmark, liquidity, and costs because these directly affect how the scheme may behave.
Important SID disclosures generally include:
- Investment objective: Explains what the scheme intends to achieve.
- Scheme category and type: Identifies whether it is an equity, hybrid, debt fund, or another category.
- Asset allocation: Shows the types of assets in which the scheme can invest and applicable exposure ranges.
- Investment strategy: Explains how the fund manager intends to implement the objective.
- Benchmark: Identifies the index used to assess the scheme’s performance.
- Risk disclosures: Explain scheme-specific and general investment risks.
- Riskometer: Shows the scheme’s designated risk level under SEBI’s prescribed categories.
- Plans and options: Describes available plans and options under the scheme.
- Investment amounts: States applicable minimum investment requirements and facilities such as Systematic Investment Plans.
- Loads and expenses: Explains applicable exit load and expense-related disclosures.
SEBI requires the scheme and benchmark Riskometers to appear on the front page of the SID
How can an SID help you compare schemes?
An SID helps you compare similar mutual fund schemes using comparable information such as their objectives, asset allocation, benchmarks, risks, investment strategies, and costs.
For example, assume Meera, aged 32 and living in Jaipur, is comparing two equity mutual funds for a seven-year goal. Both have produced strong historical returns, but their SIDs show different permitted asset allocations and investment strategies.
Meera finds that one scheme follows a broader diversified approach, while the other has greater exposure to a narrower market segment. She also compares their Riskometers, benchmarks, exit-load conditions, and stated investment approaches.
The SID does not tell Meera which fund will earn more. Instead, it helps her understand how the two schemes differ and whether those differences fit her goal and risk appetite.
How are SID, KIM, and SAI different?
Scheme Information Document (SID), Key Information Document (KIM), and Statement of Additional Information (SAI) serve different purposes, even though all three help you understand a mutual fund investment.
The following table shows the distinction:
| Document | Main purpose | Information covered |
| SID | Explains a particular scheme | Objective, allocation, strategy, risk, benchmark, costs, and scheme terms |
| KIM | Gives a shorter scheme summary | Key information a prospective investor should know |
| SAI | Covers mutual-fund-level statutory information | Legal, organisational, tax, and general information |
The KIM is a shorter document containing essential scheme information. SEBI requires KIM updates within two months after each half-year based on information as at the end of September and March.
The SAI contains statutory information about the mutual fund and is incorporated by reference into the SID. SEBI specifically states that the SID and SAI should be read together.
What should you do before investing?
Use the SID as a decision document rather than treating it as a compliance form. Begin with the investment objective and ask whether it matches your goal.
Then check the permitted asset allocation, investment strategy, Riskometer, benchmark, liquidity terms, exit load, and expenses. If the scheme permits an investment approach or asset exposure you do not understand, review it before investing.
Also compare the latest factsheet for current portfolio and performance information. The Association of Mutual Funds in India (AMFI) provides access to monthly mutual fund factsheets.
Do not select a scheme only because its recent return is higher. The SID explains what the scheme is designed to do, but it cannot predict future performance.
How often is the SID updated?
The current SEBI rules use specific timelines rather than simply requiring every SID to be “updated every six months”.
For a newly launched scheme, the initial SID update is due within the next six months after the end of the first or second half of the financial year in which the scheme was launched.
For subsequent updates, the SID must be updated within two months from the end of each half-year. The relevant information is based on data as at the end of September and March respectively.
Material changes can also require an addendum or an earlier update. For certain fundamental changes, the SID must be revised after the required regulatory process is completed. Therefore, check the latest SID and applicable addenda instead of relying on an older downloaded copy.
Conclusion
A Scheme Information Document gives you the scheme-specific information needed to understand a mutual fund before investing. It explains the objective, asset allocation, investment strategy, risks, benchmark, costs, and operating terms.
Read the latest SID together with applicable addenda and the SAI. Use the KIM or factsheet for quicker reference, but use the full SID when you need to understand how the scheme is structured and what risks you are accepting.
Last reviewed: October, 2026
Mutual funds are subject to market risk. Please read the scheme-related documents carefully before investing.
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Understanding mutual fund documents
Approval, comparison, and investor checks
What is a mutual fund factsheet?
A mutual fund factsheet is a periodic summary that helps you review current information about a scheme. It can include details such as portfolio holdings, assets under management, Net Asset Value (NAV), benchmark, expense ratio, and performance information. AMFI provides access to monthly factsheets published by mutual funds. A factsheet is useful for current scheme information, while the SID provides more detailed regulatory and structural disclosures.
What is the importance of scheme information document?
The SID helps you understand what you are investing in before committing money. It explains the scheme’s investment objective, permitted asset allocation, strategy, benchmark, risks, costs, and key operating terms. This makes it useful when comparing schemes with similar objectives. However, an SID does not tell you which scheme will perform better or guarantee that the investment objective will be achieved.
Who approves the scheme information document prepared by the AMC?
The process should not be described as SEBI “approving” the SID. The AMC prepares and files the SID, while the AMC Board and Trustees must exercise due diligence. The scheme itself requires Trustee approval, and the draft SID is filed with SEBI for observations. SEBI’s prescribed SID language states that the units are not approved or recommended by SEBI and that SEBI does not certify the SID’s accuracy or adequacy.
What is SID and SAI in mutual fund?
The Scheme Information Document contains information specific to a particular mutual fund scheme. The Statement of Additional Information contains statutory information about the mutual fund and is generally common to its schemes. SEBI treats the SAI as incorporated by reference into the SID, which means investors should read the two documents together rather than treating the SID as a completely standalone document
What information should investors check in a mutual fund Scheme Information Document?
Check the investment objective first, followed by asset allocation, investment strategy, benchmark, Riskometer, liquidity terms, exit load, expenses, minimum investment requirements, and plans or options. You should also check whether any scheme-specific risks affect your goal. These sections help you understand what the fund may invest in, how it intends to operate, and what trade-offs you accept by investing.
How does an SID help investors compare a mutual fund's objectives, risks and expenses?
A Scheme Information Document (SID) provides a standardized, legally mandated blueprint of a mutual fund scheme's core mechanics, allowing direct side-by-side comparison of costs, goals, and risk profiles
Disclaimer
Bajaj Finance Limited ("BFL") is registered with the Association of Mutual Funds in India ("AMFI") as a distributor of third party Mutual Funds (shortly referred as 'Mutual Funds) with ARN No. 90319
BFL does NOT:
(i) provide investment advisory services in any manner or form.
(ii) carry customized/personalized suitability assessment.
(iii) carry independent research or analysis, including on any Mutual Fund schemes or other investments; and provide any guarantee of return on investment.
In addition to displaying the Mutual fund products of Asset Management Companies, some general information is sourced from third parties, is also displayed on As-is basis, which should NOT be construed as any solicitation or attempt to effect transactions in securities or the rendering any investment advice. Mutual Funds are subject to market risks, including loss of principal amount and Investor should read all Scheme/Offer related documents carefully. The NAV of units issued under the Schemes of mutual funds can go up or down depending on the factors and forces affecting capital markets and may also be affected by changes in the general level of interest rates. The NAV of the units issued under the scheme may be affected, inter-alia by changes in the interest rates, trading volumes, settlement periods, transfer procedures and performance of individual securities forming part of the Mutual Fund. The NAV will inter-alia be exposed to Price/Interest Rate Risk and Credit Risk. Past performance of any scheme of the Mutual fund do not indicate the future performance of the Schemes of the Mutual Fund. BFL shall not be responsible or liable for any loss or shortfall incurred by the investors. There may be other/better alternatives to the investment avenues displayed by BFL. Hence, the final investment decision shall at all times exclusively remain with the investor alone and BFL shall not be liable or responsible for any consequences thereof.
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Disclaimer on Risk-O-Meter:
Investors are advised before investing to evaluate a scheme not only on the basis of the Product labeling (including the Riskometer) but also on other quantitative and qualitative factors such as performance, portfolio, fund managers, asset manager, etc, and shall also consult their Professional advisors, if they are unsure about the suitability of the scheme before investing.
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Disclaimer
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The information BFL contained in this article is for general informational purposes only and does not constitute any financial advice. The content herein has been prepared by BFL on the basis of publicly available information, internal sources and other third-party sources believed to be reliable. However, BFL cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed.
This information should not be relied upon as the sole basis for any investment decisions. Hence, User is advised to independently exercise diligence by verifying complete information, including by consulting independent financial experts, if any, and the investor shall be the sole owner of the decision taken, if any, about suitability of the same.
Disclaimer
Mutual Fund SIP calculator may provide potential investors an approximate estimate on the maturity amount of the monthly SIP, purely based on mathematical calculation of the projected annual return rate selected by investor. However, such calculation does not factor the actual performance by the Asset Management Company (AMC) and should not be treated as any advice or assurance about the actual return of investment. Mutual Funds do not have a fixed rate of return and it is not possible to predict the rate of return. Please note that the SIP calculator are for illustrations only and do not represent actual returns which may vary depending on various factors including but not limited to actual performance, expense ratio, taxation, exit load (if any), etc.