Knowing more about your mutual fund product
When a mutual fund creates an investment product, it offers it for the first time to the investors as a new fund offer (NFO). A new product is first approved by the trustees, and features are described in a detailed offer document that is filed with SEBI. After SEBI approves that the document carries all the necessary disclosures in the interest of investors, the mutual fund makes its new fund offer to investors. Key information about the products is also made available to investors who like to buy units of an open‐ended fund on an on‐going basis. SEBI’s regulation prescribes that information about the fund and the product be disclosed in two sections ‐ Scheme Information Document (SID) and Statement of Additional Information (SAI). The regulations define specifically all the information that needs to be provided and the format in which this information has to be provided.