The documents that describe a scheme, plus the disclosure rules and risk labelling investors rely on.
The Three Core Documents: SID, SAI, KIM
SID (Scheme Information Document) is scheme-specific: investment objective, asset allocation pattern, risk factors, fees and expenses, and fund manager details.
SAI (Statement of Additional Information) carries AMC-level statutory and operational information common across all the AMC's schemes - sponsor details, trustee details, general due-diligence information.
KIM (Key Information Memorandum) is a condensed summary of the SID, attached to every application form so investors get the essentials without reading the full document.
Fundamental Attributes and Disclosure Timelines
The SID's fundamental attributes section is what triggers the Chapter 4 exit-window rule if changed.
SID and SAI must be reviewed and updated periodically per SEBI's disclosure timelines, and TER/NAV must be published on the AMC's website daily so current figures stay accessible to investors.
The Riskometer
The Riskometer is a mandatory visual risk indicator shown on every scheme's SID, KIM, and marketing material, with six defined levels: Low, Low to Moderate, Moderate, Moderately High, High, Very High.
The AMC recalculates and can revise a scheme's Riskometer level periodically based on its actual portfolio risk, not just its category label.
SEBI Scheme Categories in Detail
Large Cap Funds must invest a minimum of 80% in the top 100 companies by market capitalisation; Mid Cap and Small Cap Funds carry their own minimum thresholds in their respective segments; Multi Cap Funds must maintain a minimum allocation across all three market-cap segments; Flexi Cap Funds must hold a minimum of 65% in equity with full flexibility across market-cap segments.
Debt fund sub-categories (Overnight, Liquid, Ultra Short Duration, Short Duration, Corporate Bond, Credit Risk, Gilt, and more) are each defined by permitted maturity/duration and credit-quality rules.
Special-Purpose Categories
ELSS (Equity Linked Savings Scheme) is a tax-saving equity fund with a mandatory 3-year lock-in, eligible for Section 80C deduction.
Liquid Funds invest only in instruments with residual maturity up to 91 days, making them suitable for very short-term parking of money. Overnight Funds go a step further, investing only in overnight/1-day maturity instruments.
Gilt Funds invest predominantly in government securities, carrying interest-rate risk but negligible credit risk.
Numbers to remember
Riskometer levels: 6 (Low to Very High)
Large Cap: min 80% in top-100 companies
Flexi Cap: min 65% in equity
ELSS lock-in: 3 years
Liquid Fund maturity cap: 91 days
Memory hook
SID = scheme details, SAI = AMC details, KIM = quick summary, Riskometer = 6 levels.
Independent study aid by Ramaniya, based on the syllabus of the National Institute of Securities Markets (NISM) - not an official NISM publication.
