Read offer documents before investing from "summary" of Let's Talk Mutual Funds by Monika Halan
Before you put your hard-earned money into a mutual fund, it is crucial that you take the time to carefully read the offer documents provided by the fund house. These documents contain important information about the fund, its investment objective, strategy, risks involved, expenses, and past performance. By reading these documents, you can gain a clear understanding of what you are investing in and make an informed decision. The offer documents typically consist of a scheme information document (SID) and a statement of additional information (SAI). The SID provides detailed information about the fund, including its investment objective, asset allocation, fund manager details, and past performance. It also outlines the risks associated with investing in the fund and the fees and charges that you will incur. The SAI, on the other hand, contains additional information about the fund, such as its financial statements, distributor commission structure, and legal details. By reading the offer documents, you can assess whether the fund aligns with your investment goals and risk a...
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