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How To Read Mutual Fund Statements

As an investor in mutual funds, you will receive mutual funds statements at regular intervals from the fund house detailing the various schemes you have put your money in and their performance. These statements give you an idea of the health of your investments, based on which you can make informed decisions about managing them. But many terminologies are mentioned in these statements, so here is a guide to help you understand how to read them.

What is a mutual fund statement?

A mutual fund statement provides a comprehensive summary of all the mutual fund investments you have made. If you ask for a statement from a particular fund house, you will get information only on the investments made by you in that fund house’s schemes. However, more often than not, investors invest in various schemes across mutual funds . In such cases, one can ask for a consolidated account statement from the registrar or a depository, which will give a detailed summary of investments in schemes across all mutual funds.

Understanding the Important Terms in a Mutual Fund Statement

Folio Number:

On investing in a mutual fund, you will be allotted a unique number called the folio number. The folio number is like an identification number that helps you track all your investments in mutual fund schemes.

Personal details:

This section will list your full name, correspondence address, email id, contact number, date of birth and investment category, i.e., whether single or joint investor. It might also mention your PAN number.

Nomination:

Providing a nominee (or opting out of nomination) is mandatory because that person can access your investments in the event of your death. This section highlights whether you have named a nominee without providing the nominee’s details. If you have selected one, then it will show as Registered.

Advisor or distributor details:

If you have invested in mutual funds through a distributor or a financial advisor, this section will provide all their details. If you have directly applied through the fund house, then the term ‘Direct’ will be mentioned.

Bank details:

Your bank account details, such as your account number, IFSC code, and bank name, will be highlighted in this section.

Transaction details:

Many aspects of your transaction will be highlighted here.

First, the name of the scheme in which you have invested. Second, the date on which the transaction has been affected.

Third, the net asset value (NAV) will be specified. NAV is the price of one unit of the fund and measures the fund’s performance.

Fourth is the NAV date. NAV is calculated at the end of every market day. If you want to purchase or redeem units of a mutual fund, applicable NAV is considered.

Fifth is the amount, which highlights the amount of money you have invested or withdrawn.

Sixth is the number of units you have bought/redeemed

Seventh is the current value, which is the current market price of your investments; current cost, which is the amount you had originally invested; load, which mentions any sales charge imposed by the fund house.

Lastly, the type of transaction which tells you whether you have purchased or redeemed units and the mode of investment – lump sum or through the systematic investment plan (SIP) route.

How Frequently Should You Check Mutual Fund Statements?

Once you have invested in a mutual fund scheme, keeping track of its performance through your mutual fund statements is important. While there is no specific answer concerning the frequency, you could consider checking your mutual fund statements at least once a year if you invested for the long term and more frequently if your investments are short-term.

To conclude…

Reading and analysing mutual fund statements is essential to investing in mutual funds. Thus, understanding the terminologies equips you with the knowledge and necessary data to make informed decisions on your investments going forward.

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Disclaimer:
Helpful information for investors: All Mutual Fund investors have to go through a one-time KYC (know your Customer) process. Investors should deal only with registered mutual funds, to be verified on SEBI website under 'Intermediaries/ Market Infrastructure Institutions'. For redressal of your complaints, you may please visit www.scores.gov.in . For more info on KYC, change in various details & redressal of complaints, visit mf.nipponindiaim.com/investoreducation/what-to-know-when-investing This is an investor education and awareness initiative by Nippon India Mutual Fund.

The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The document has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. The sponsor, the Investment Manager, the Trustee or any of their directors, employees, associates or representatives (“entities & their associates”) do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Entities & their associates including persons involved in the preparation or issuance of this material shall not be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material. Recipient alone shall be fully responsible for any decision taken on the basis of this document.
Language Disclaimer:
While utmost care has been taken in translating the article into respective regional language(s), in case of any confusion or difference of opinion, article available in English language should be deemed as final. The article provided herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional advice for the readers. The document has been prepared on the basis of publicly available data/ information, internally developed data and other sources believed to be reliable. The sponsor, the Investment Manager, the Trustee or any of their directors, employees, associates or representatives (“entities & their associates”) do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Entities & their associates including persons involved in the preparation or issuance of this material shall not be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of loss of profits arising from the information contained in this material. Recipient alone shall be fully responsible for any decision taken on the basis of this article.
"ABOVE ILLUSTRATIONS ARE ONLY FOR UNDERSTANDING, IT IS NOT DIRECTLY OR INDIRECTLY RELATED TO THE PERFORMANCE OF ANY SCHEME OF NIMF. THE VIEWS EXPRESSED HEREIN CONSTITUTE ONLY THE OPINIONS AND DO NOT CONSTITUTE ANY GUIDELINES OR RECOMMENDATION ON ANY COURSE OF ACTION TO BE FOLLOWED BY THE READER. THIS INFORMATION IS MEANT FOR GENERAL READING PURPOSES ONLY AND IS NOT MEANT TO SERVE AS A PROFESSIONAL GUIDE FOR THE READERS."

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
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