Mutual Fund FAQ+ expand all
The performance of a scheme is reflected in its net asset value (NAV) which is disclosed on daily basis in case of open-ended schemes and on weekly basis in case of close-ended schemes. The NAVs of mutual funds are required to be published in newspapers. The NAVs are also available on the web sites of mutual funds. The Fund Manager shall provide the following details of the work performed regarding scheme in each month within fifteen days of completion of that month. Investors can compare the performance of their schemes with those of other mutual funds under the same category. On the basis of performance of the mutual funds, the investors should decide when to enter or exit from a mutual fund scheme.
The price or NAV a unit holder is charged while investing in an open-ended scheme is called sales price. It may include NAV and the entry load, if applicable.
Repurchase or redemption price is the price or NAV at which an open-ended scheme purchases or redeems its units from the unit holders. Exit load, if applicable, may be deducted from the NAV to redeem the unit.
Considering the market trends, any prudent fund managers can change the asset allocation i.e. he can invest higher or lower percentage of the fund in equity or debt instruments compared to what is disclosed in the offer document (Bibaran Pustika). It can be done on a short term basis on defensive considerations i.e. to protect the NAV. Hence the fund managers are allowed certain flexibility in altering the asset allocation considering the interest of the investors.
In case of winding up of a scheme, the mutual funds pay a sum based on prevailing NAV after adjustment of expenses. Unit holders are entitled to receive a report on winding up from the mutual funds which gives all necessary details.
Investors would find the name of contact person in the offer document (Bibaran Pustika) of the mutual fund scheme that they may approach in case of any query, complaints or grievances. Fund Supervisors of a mutual fund monitor the activities of the mutual fund. The names of the directors of Fund Management Company and Fund Supervisors are also given in the offer document (Bibaran Pustika). Investors should approach the concerned Mutual Fund with their complaints,
If the complaints remain unresolved, the investors may approach SEBON for facilitating redressal of their complaints. On receipt of complaints, SEBON takes up the matter with the concerned mutual fund and follows up with it regularly.