What is offer document in mutual fund?
A document containing the details of a particular mutual scheme offered by an Asset Management Company (AMC) to the public for investing is known as a mutual fund offer document or a prospectus. This document comprises two parts – the Scheme Information Document (SID) and the Statement of Additional Information (SAI).
What is offer document?
‘Offer document’ is a document which contains all the relevant information about the company, promoters, projects, financial details, objects of raising the money, forms of the issue etc. and is using for inviting subscription to the issue being made by the issuer.
Who prepares offer document in mutual fund?
the Securities and Exchange Board of India
These are prepared by the Asset Management Company (AMC) about a particular scheme, and submitted to the Securities and Exchange Board of India (SEBI) for approval.
What is importance of fund offer document?
What is Offer document in a Mutual Fund? Offer document in Mutual Fund provides essential information about the scheme in a way that will assist investors in making informed decisions about whether to purchase the units being offered.
Who prepare the offer documents?
The Lead Merchant Banker shall make available to the Board 10 copies of the draft offer document and 25 copies of the Stock Exchange(s) where it is proposed to list the issue. The Lead Merchant Bankers / Stock Exchange shall make copies of the draft offer document available to the public.
What is final offer document?
The contents of the Final Offer Document are for your information only. The Final Offer Document does not constitute an offer to sell or an invitation to subscribe to the units offered in any jurisdiction to any person to whom it is unlawful to make an offer or invitation in such jurisdiction.
Is offer document a legal document?
A legal document issued by the Mutual Fund, informing potential investors about the characteristics, investment objective, policies and services and other important information pertaining to the scheme, as is required by SEBI.
Is it mandatory to file offer documents of all mutual fund products with SEBI?
All Mutual Funds should use Form NS for filing an offer document pursuant to sub regulation (1) of Regulation 28 of the SEBI (Mutual Funds) Regulations, 1996, (Regulations) along with filing fees as specified in the Second Schedule to these Regulations.
Which fund is lowest in risk?
List of Low Risk Mutual Funds in India
| Fund Name | Category | Risk |
|---|---|---|
| Mirae Asset Overnight Fund | Debt | Low |
| BOI AXA Overnight Fund | Debt | Low |
| L&T Arbitrage Opportunities Fund | Hybrid | Low |
| BNP Paribas Arbitrage Fund | Hybrid | Low |
Is PAN card mandatory for SIP?
In order to facilitate such small-ticket investments, Sebi has withdrawn the requirement of PAN for SIPs that do not exceed Rs. 50,000 in a financial year. Such instalments are called micro SIPs. Documentation: Micro SIPs are exempt from the requirement of PAN or KYC documentation.
What is draft offer document?
Draft Offer document” means the offer document in draft stage. The draft offer documents are filed with SEBI, at least 21 days prior to the filing of the offer document with ROC/ SEs.
What is rupee cost averaging in Mutual Funds?
In the rupee cost averaging approach, you invest a fixed amount of money at regular intervals irrespective of whether the markets are going high or low. This ensures that you buy more units when the markets are low and lesser units when they are high.
Why one should go for loan against mutual fund?
Benefits of borrowing against mutual fund units
The interest rates for a loan against mutual funds can be lower than that for personal loan interest rate. If you opt for a loan against your mutual fund units, then you would not have to sell your units hence your financial plan, and fund ownership remains intact.
Which bank gives loan against mutual fund?
HDFC Bank is the first Bank to offer, Digital Loan Against Mutual Funds (LAMF). You can pledge mutual fund investments online and get an overdraft limit set in your account.
Which broker gives margin on mutual funds?
The margin on stocks from pledging i.e collateral margin is very used by frequent traders. A list of eligible share is provided by the broker.
Brokers offering Margin Against Shares.
| Broker | IDBI Capital |
|---|---|
| Brokerage (Eq Intraday) | 0.05% |
| Brokerage (Eq Futures) | 0.05% |
| Brokerage (Eq Options) | Rs 100 per lot |
What is pledging of mutual funds?
A Mutual Fund investor can get a loan against his existing units. An investor can pledge his Mutual Fund units as a security to lenders such as banks and non-banking financial companies to borrow money against the existing units. To borrow the money, a lien has to be marked against the the units.
What is haircut in Pledging?
In the financial market, haircut refers to the reduction in the value of assets when they are pledged as collateral.
What is 5 paisa margin?
5paisa Margin Funding Limits
| Trade Segments | Margin Limits |
|---|---|
| Equity Delivery | Up to 4x (Category E 4x, A 3.5x, B 3x, C 2x, D 1.5x) |
| Equity Intraday | Up to 20x |
| Equity Future | Intra-day: 3.5x | Carry forward: 1x (no margin) |
| Equity Option | Intra-day: 1x | Carry forward: 1x |
Which liquid fund is best?
The table below shows the top-performing liquid funds based on the past 3 and 5-year returns:
| Mutual fund | 5 Yr. Returns | 3 Yr. Returns |
|---|---|---|
| ICICI Prudential Money Market Fund – Cash Option | 6.29% | 5.64% |
| Kotak Money Market Scheme – Direct Plan – Growth | 6.3% | 5.57% |
| Quant Liquid Plan Growth | 6.04% | 5.5% |
| Kotak Money Market Scheme | 6.22% | 5.48% |
Is Liquid fund better than FD?
Hence, liquid funds offer better liquidity at lower penalty charges as compared to FDs. You can invest in a fixed deposit for a tenure ranging from seven days to ten years. Liquid funds have a maturity of up to 91 days.
What is Gilt fund?
Gilt funds invest in low-risk debt instruments such as the government securities, which ensures the preservation of capital along with moderate returns. When compared with a typical equity fund, a gilt fund offers better asset quality despite the relatively lower return it offers.
Which liquid fund is safe?
Liquid Mutual Funds vs
Liquid mutual funds have lowest interest rate risk and default risk. They are highly liquid and can be redeemed within a day. Hence, they are ideal for parking short term surplus cash or creating an emergency fund. Liquid mutual fund is the safest type of debt fund in India.
Can I lose money in liquid funds?
Liquid Funds are one of the safest mutual funds. That’s because they lend to good companies for an extremely short duration, and that reduces risk. The risk of losing money is almost zero if you stay invested for some amount of time.
What are overnight funds?
Overnight Funds are a type of open-ended debt scheme that invests in debt securities maturing the next day. This means, the securities in the portfolio mature every day and the fund manager uses the proceeds to buy new securities for the portfolio maturing the very next day.