When you invest in a mutual fund, the fund house sends you a statement detailing the investment in the scheme of your choice. This statement is similar to the one given by your bank and provides information about the transactions conducted by you within a defined period.
The fund house may send it to you on a monthly, quarterly or yearly basis. You can also access it online, though the fund houses have to compulsorily send a physical statement at least once a year to its unit holders.
This document indicates the changes in the account whenever there is a redemption, additional investment or dividend declaration. This makes the account statement important for tracking your investments.
Here are some of the important details in the statement that the investors should be aware of and need to check periodically to ensure a smooth interaction with the fund house:
Investors' personal details: The name, address and contact numbers of the investor or joint investors, if any, are mentioned in this section. You must ensure that the personal details mentioned in the account statement are correct, and if there is any discrepancy, you should inform your broker or fund house immediately.
Adviser's name: This indicates the source through which you have invested. So if you have invested through an agent, his name and code will appear on the statement. However, if you have invested directly, these parts should be blank in your account statement.
Bank details: The name of your bank and account number should be mentioned. Make sure that these details are written correctly, otherwise you might face unnecessary problems at the time of redeeming your mutual fund units. In case you need to change your bank mandate, fill out the slip provided at the bottom of the account statement and submit it to your fund house or agent.
Folio and account numbers: Each time an investor puts in money in a mutual fund scheme, the fund house gives him an account number similar to the one provided by a bank. The investor could also invest in a number of schemes, such as a debt fund, an equity fund or a tax plan, with the same fund house. In this case, the fund house offers the investor a single folio number, which consolidates his accounts under a single umbrella. This makes it easier to track all the investments with a particular fund house.
Current cost and value: The current cost indicates the amount invested in the scheme, while the current value is the latest market value of the investments (as on the date that the statement is generated). The price of a single unit is also given for that date. The net asset value (NAV) is calculated taking into account the entry or the exit load.
PAN details: It is mandatory for you to provide your Permanent Account Number (PAN) irrespective of the amount that you have invested. Check that the PAN mentioned in the account statement is correct.
Transactions summary: This section mentions the types of transactions that you have opted for, which might include purchase, the systematic investment plan (SIP) or the systematic withdrawal plan (SWP). The other transactions like dividend payout or reinvestment are also mentioned along with the percentage or rupees per unit at which the dividend is reinvested or paid out.