What are SID, SAI and KIM?
SID gives you all the information about the scheme, and SAI gives you all the information about the fund house. Both act as a guide to help you make an informed investment decision. The KIM is a concise version of the SID. Let us get on to discuss what SAI, SID, and KIM are in detail.
Mutual funds offer Documents
When a fund house launches a new mutual fund scheme, they have to make an offer document or a prospectus that contains all the scheme details. The offer document comprises two parts: SID and SAI.
What is the Scheme Information Document (SID)?
The Scheme Information Document (SID) contains all the information related to the mutual fund scheme to help an investor make an informed decision. Among the three documents mentioned above, the SID is the most important from an investor's point of view.
Some of the content of the SID include:
Highlights or summary of the scheme
- The section gives a one-page summary of the scheme.
- Table: Sample scheme highlights or summary (Sourced: https://www.franklintempletonindia.com/downloadsServlet/?docid=ib9a5iad)
- The section provides an introduction to the scheme with information on what the scheme is and how it works. It also lists the risk factors (standard and scheme-specific risk factors), the requirement of a minimum number of investors, definitions, etc.
Detailed information about the scheme
- It is one of the most important sections of the SID. It mentions the scheme name, type, investment objectives, investment pattern, asset allocation, where the scheme will invest, investment strategy, fundamental attributes, benchmark, fund manager/s, investment restrictions, how the scheme performed, etc.
Units and offer
- The section mentions the types of plans (growth and dividend) offered, direct and regular options, dividend policy, who can invest, how to apply and where to submit the forms, mandatory information to be filled in the application form, and allotment and redemption of units, etc. It also mentions details on SIP, STP, and SWP options that are available.
Fees and scheme expenses
- The section talks about the scheme’s expenses and the fees it will charge to cover these expenses.
General unitholder information
- The section mentions the investor folio number, response time for investor services, etc.
To see a sample SID, you can refer to the Franklin India Dynamic PE Ratio Fund of Funds SID at the following link: https://www.franklintempletonindia.com/downloadsServlet/?docid=ib9a5iad
The SID has detailed information about the scheme, and it can be overwhelming for the retail investor to go through all the information mentioned in the SID. Hence, the retail investor can refer to the KIM, which is the summary of the SID.
What is the Key Information Memorandum (KIM)?
The Key Information Memorandum (KIM) is the abridged version of the Scheme Information Document (SID). The KIM contains the key sections of the SID. The SID may be 50-100 pages or longer. The KIM concisely gives all the SID information. The KIM is available with the application form. The investor can refer to it before making the application.
You can refer to sample KIM documents at the following links:
The SID and KIM talk specifically about a particular mutual fund scheme. If you wish to know about the AMC offering the scheme and other general information related to mutual fund investing, you need to refer to the Statement of Additional Information (SAI).
What is the Statement of Additional Information (SAI)?
The SAI is a supplementary document issued along with the SID. Apart from the scheme information, the fund house includes all the additional information in the SAI. The fund house adds all the statutory information and disclosures in the SAI. Any updates are also included in the SAI in an Addendum.
The contents of a sample SAI look like this.
Table: Sample SAI content
You can get access to SAI of any fund house at the following link:
Why should an investor read the SID, KIM, and SAI?
While investing in a mutual fund scheme, it is important for you to know about the scheme and the fund house. SID gives you all the information about the scheme, and SAI gives you all the information about the fund house. The SID and SAI act as a comprehensive guide and help you make an informed investment decision. If the volume of information in the SID and SAI is overwhelming, you can refer to the KIM included in the application form. The KIM is a concise version of the SID and has all the information instrumental in making an investment decision.
Investing in financial goals with the Glide Invest App
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