OFFER
DOCUMENT
WHAT IS AN OFFER DOCUMENT
(OD)
OD of a mutual fund scheme is a
prospectus issued by an Asset
Management Company / Sponsor.
It invites the public for subscription in
units of the scheme.
It discloses the information which is
adequate to enable an investor to
make an informed investment
decision.
Offer Document (OD)
A legal document
issued by AMC or Sponsor
OD describes the product
Very important document
from the perspective of
prospective investor
Primary vehicle for
investment decision
Offer Document (OD)
* All ODs are to be approved by the trustees of the
Mutual Fund;
* ODs are prepared and issued by the Asset
Management Company;
* All ODs are filed with SEBI with filing fees (Rs.
25,000)
* Modifications, if any, are advised by SEBI within
21 working days from the date of its filing;
Offer Document (OD)
Close ended fund: issued at the time of
fund – launch
Open ended fund: revision after every
two years
KIM: Abridged version of OD which is
distributed along with the application
form
Contents of the Offer
Document
Summary information
Definitions
Risk Factors
Legal and Regulatory Compliance
Financial Information
Constitution of the Mutual Fund
Investment objectives and policies
Management of the Fund
Offer Related information
Contents of the Offer
Document
Summary Information
( Cover Page) :
Name of Mutual Fund/ AMC
Name of Scheme/ Type of scheme
Period of opening / closing
SEBI Disclaimer
Contents of the Offer
Document
Risk Factors
Standard Risk factors
Scheme specific risk factor(s).
Contents of the Offer Document
Legal and Regulatory Compliance
AMC shall confirm that a Due diligence
certificate is duly signed by compliance
officer / CEO / Whole time Director / MD
Certificate to the effect
(a) OD prepared is in accordance with SEBI
(MF) Regulations,
(b) legal requirements are complied with,
(c) disclosures are true and fair,
(d) intermediaries named in the OD are
registered with SEBI.
Contents of the Offer Document
Financial Information
Expenses - Sales load, CDSC, Initial issue
expenses, estimated annual recurring
expenses
Condensed Financial information of
schemes
- Information regarding schemes launched
during the last 3 years
-Historical per unit statistics
Contents of the Offer Document
Constitution of the Mutual Fund /
Management of the Fund
Name of the sponsor / AMC / Board of Trustees
Powers of Trustees
Names of Key personnel
Custodian / Registrars
Investors relations officer
Name, age, qualifications and experience of
fund manager(s)
Contents of the Offer Document
Investment objectives and Policies
Investment only in transferable securities in
the money market and the capital market or in
privately placed debt or securitised debt
provided they are rated not below investment
grade.
Minimum and maximum asset allocation under
equity, debt and money market instruments
has to be specified in the OD.
MF can alter the asset allocation for a short
term period on defensive consideration.
Investment Strategy: Regarding portfolio
turnover, overseas investments, limits, stock
lending etc.
Contents of the Offer Document
Offer Related Information
Investment procedure
Schemes policy on dividends &
distributions, ISTs (Inter Scheme transfers)
Associate Transactions
Borrowing Policy
NAV and Valuation
Contents of the Offer Document
Offer Related Information contd…
Procedure for Redemption or Repurchase
Description of accounting policies
Tax treatment of investments
Investors’ rights and services
Redressal mechanism for investor grievances
