The Asset Management Company (AMC) describes the portfolio. This description is then given a product name. An offer document is created with the product details. The draft offer document is approved by the trustees and filed with SEBI for their comments / observations.
Post the incorporation of all the comments and suggestions by SEBI (if any), AMC shall issue the final offer document. The product is open for subscription to investors as a New Fund Offer (NFO). Investors are allotted units against their investment at the face value of the units. After the money is collected, fund managers begin to construct the portfolio.
The SAI contains information common to all schemes offered by a mutual fund. It is filed with SEBI as a one-time filling.
SAI contains : Details of the Sponsor, trustee, AMC and other constituents, Details of key personnel of the AMC and associates such as Registrars, Custodians, Bankers, Auditors and Legal Counsel, Condensed financial information of all the schemes launched in last 3 financial years, Rights of unit holders, investor grievance redressal, Investment valuation norms.
The SAI has to be updated every financial year. Any material changes have to be incorporated immediately and uploaded on the mutual fund and AMFI websites.
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