Can I Know Where My SIP Investor Has Invested?
As a SIP (Systematic Investment Plan) investor, it is natural to wonder where your funds are being invested. The key lies in understanding the mutual fund fact sheet, a comprehensive one-page document that provides an in-depth overview of the mutual fund's scheme. This article will guide you through how to track your SIP investments and understand the information contained in a mutual fund fact sheet.
Understanding Mutual Fund Fact Sheets
A Track Your MF Investments using Fund Fact Sheet is a basic one-page document that gives an overview of a mutual fund scheme, with a special emphasis on performance and portfolio transparency. It is published every month by each mutual fund and serves as a report card that indicates the health of the scheme. This document is a great starting point for potential investors looking to evaluate a mutual fund scheme before making an investment. It is also very handy for existing investors to keep track of their fund’s performance.
Key Information in a Fact Sheet
A mutual fund fact sheet typically provides a wide range of essential information:
Key Information About the Scheme
Scheme Name: The name of the mutual fund scheme. Investment Objective: The overall investment goal of the scheme. Type of Scheme: Whether it is equity, debt, or a mix. Name of the Fund Manager and His Experience: Details of the fund manager responsible for the management of the scheme along with his experience. Date of Initial Allotment Post NFO: The date of the initial allotment post the offer for subscription (NFO). Average AUM (Assets Under Management): The average asset size of the fund. Latest AUM as on Factsheet Date: The asset size of the fund on the date of the fact sheet. Latest NAV per Unit: The latest Net Asset Value (NAV) per unit of the mutual fund. Load Information: Details regarding any front or back-end load charges. Benchmark: The benchmark index against which the fund's performance is compared. Expense Ratio: The annual charges borne by investors for managing their investments. TER (Total Expense Ratio): The overall expense ratio for both the Regular and Direct Plans. Dividend History: Record of the past dividend payments made by the fund.Portfolio Data
Investment in Securities: The fund's investments in different types of securities. Allocation by Sector for Equities: The distribution of investment across different sectors if the fund is an equity fund. Allocation – Asset as Well as Rating-Class for Debt: The composition of debt investments based on asset class and credit rating.Quantitative/Volatility Measures
Standard Deviation for Equity Fund: A measure of the volatility or risk. Beta for Equity Fund: A measure indicating how volatile the fund's returns are in comparison to the market. Sharpe Ratio for Equity Fund: A ratio that helps to assess the return per unit of risk. Portfolio Turnover for Equity Fund: The frequency of buying and selling of securities by the fund manager. Modified Duration for Debt Fund: A measure of the sensitivity of the bond's price to changes in interest rates. Average Maturity for Debt Fund: The average lifespan of the fund's debt holdings. Portfolio Yield: The yield on the debt part of the portfolio. Tracking Error in Case of Passive Index Fund/EF: The difference between the fund's returns and the returns of the benchmark index.Fund Performance/Returns
Reflects Returns for Both Liquid and Non-Liquid Funds: The historical performance of the mutual fund, captured through various metrics. SIP Returns: The performance of the fund when investments are made through SIP. The Portfolio Depicts: How the money you invested has been deployed across different securities. Comparison with Benchmark: The fund's performance relative to the benchmark, often measured through CAGR (Compound Annual Growth Rate), Beta, Standard Deviation, Sharpe Ratio, and Tracking Error. Size and Investment Details of the Scheme: Provides an idea of the fund's size and current holding details.Accessing Mutual Fund Fact Sheets
For potential and existing investors, it is crucial to track this information. You can find the mutual fund fact sheet on the mutual fund's official website. Alternatively, you can request a copy by calling the mutual fund's customer service number. For more detailed guidance, you can visit Sharekhan Classroom.
Understanding these key aspects of a mutual fund fact sheet will help you make informed investment decisions and track the performance of your SIP investments effectively.