abhishreshthaa
New member
WHAT ID OFFER DOCUMENT:
BASICS:
Importance to the Investor
Contents of an Offer Document
Summary information – at a glance
- It is a prospectus issued by an AMC inviting the public for subscription in units of the scheme disclosing information which is adequate for an investor to make informed investment decision
- In simple words, a detailed memorandum that provides all the information about the fund and the scheme.
BASICS:
- Is specific to a mutual fund scheme
- Has to be approved by the trustees
- Is prepared and issued my AMC
- To be revised and updated at least once every 2 years
- All ODs are filed with SEBI
- Modifications can be made before issue with SEBI consent
- Legal responsibilities rests with AMC about accuracy of contents-specific clause stating SEBI neither approves nor disapproves the offer document and does not verify the accuracy of information
- SEBI has to suggest modifications within 21 working days from the date of filling
- All applications forms must be accompanied by a key information memorandum
- Key information memorandum is an abridged version of an OD
Importance to the Investor
- The most important source of information for the prospective investor
- Fundamental attributes, investment objectives and terms of the scheme
- Operating document and describes the product
- A legal document that protects and governs right of the investor to information before he takes a decision
- Reference document from time to time
- A must read – primary vehicle for the investment decision
Contents of an Offer Document
Summary information – at a glance
- Type of scheme-growth/income/balanced
- Name of AMC
- Price of units
- If assured return-name of guarantor
- Opening and closing dates of scheme
- Disclaimer clause of SEBI
- Loads, fee structures and expenses
- Unit holders rights
- Financial information
- Risk factors