What is a Scheme Information Document (SID) in Mutual Funds?

A Scheme Information Document (SID) is a SEBI-prescribed document that provides detailed information about a mutual fund scheme. It covers the scheme's investment objective, strategy, risks, costs, and other key details. Reading the SID before investing can help you understand how the scheme works and whether it suits your financial goals. 

Before investing in a mutual fund, it's important to know exactly what you're signing up for. The Scheme Information Document (SID) gives you this information easily. It outlines detailed information about the scheme - covering everything from where your money will be invested to the risks and costs involved.

In this guide, we'll explain what a Scheme Information Document is, what it contains, and how it can help you make a more informed investment decision.

SID stands for scheme information document in mutual funds. It is an important fund offer document that contains detailed information about the fund’s objectives, asset allocation patterns, fees, risk levels, minimum subscription amount, etc. 

Every Asset Management Company (AMC) is required to prepare and update the scheme information document in accordance with SEBI regulations so that investors have access to complete and transparent information before making an investment decision.

Here’s how the process typically happens:

• The AMC is required to file a draft scheme information document and Key information memorandum along with other documents with SEBI before launching the scheme.
• Draft SID on which observation(s) have been issued by the SEBI shall be made available on SEBI’s website – http://www.sebi.gov.in for at least 8 working days for receiving public comments on the adequacy of disclosures made in the document,
• After which AMC may launch the scheme after filing the final SID and KIM with SEBI 

Once in circulation, the SID in mutual funds is still updated regularly. As per SEBI Master Circular for Mutual Funds as on March 20, 2026  for open-ended and interval schemes, the first SID update must be completed within six months after the end of the relevant half-year in which the scheme was launched. Thereafter, the SID must be updated within two months after the end of every half-year using data as of 30th September and 31st March. 

The SID in mutual funds essentially gives you a snapshot of the entire scheme at once. The format is provided by SEBI under Formats for Master Circular for Mutual Funds as on March 20, 2026 , the SID in mutual funds generally contains the following sections: 

1. Riskometer 

AMCs are required to label schemes as per their risk profile with a ‘Riskometer’. This riskometer is a pictorial representation of the risk level of the scheme and the risk level of its benchmark.

Risk levels can fall into any of the following six categories:

• Low
• Low to moderate
• Moderate
• Moderately high
• High
• Very high 

2. AMC-Related Information

The first page of the scheme information document also includes AMC-related information, including:

• Name of Mutual Fund, AMC, Trustee Company with their Addresses, Website of the entities

3. Highlights / Summary of the Scheme

This part of the SID in mutual funds may be seen as a type of executive summary for the entire document. It includes a quick review of the scheme type, investment objective, benchmark, NAV disclosure, loads, Liquidity/listing details and more. 

4. Information About the Scheme

• Investment Objective & Strategies: This section explains what the scheme aims to achieve and how it plans to achieve it. It describes the investment objective and the fund manager's approach to selecting securities. 
• Asset Allocation: The asset allocation section shows how the scheme proposes to distribute its investments across different asset classes, such as equity, debt, and money market instruments. It also specifies the minimum and maximum allocation limits for each asset class, helping you understand where your money may be invested. It also includes an indicative table  for different instrument maximum % of exposure along with Master Circular reference.
• Where will the scheme invest? - A list of all instruments in which the scheme will invest.
• What are the investment strategies? - Information about investment approach and risk control. The investment strategy is "Passive"/"Active" and matching with the asset allocation pattern of the scheme.
• Scheme Benchmark: This section tells you which benchmark the scheme follows so you can compare its performance against a relevant market index. The benchmark is selected based on the scheme's investment category and style. 
• Fund Manager Information: Under this section, you'll find details about the fund manager responsible for managing the scheme. It generally includes their qualifications, experience, and other schemes they manage. 
• Scheme Performance: For existing schemes, the SID includes historical performance and compares it with the benchmark over 1,3, 5 years, and since inception. This gives you an idea of how the scheme has performed over different periods. However, past performance does not guarantee future returns. 
• Additional Scheme-Related Disclosures –

i. Scheme’s portfolio holdings (top 10 holdings by issuer and fund allocation towards various sectors to be provided through a functional website link that contains detailed description.)

ii. Disclosure of name and exposure to Top 7 issuers, stocks, groups and sectors as a percentage of NAV of the scheme in case of debt and equity ETFs/index funds through a functional website link that contains detailed description

iii. Functional website link for Portfolio Disclosure - Fortnightly / Monthly.

iv. Functional website link to the respective addendums to the SID after the last update of SID

v. Portfolio Turnover Ratio

vi. Aggregate investment in the Scheme by Fund manager

Investments of AMC in the Scheme - Details to be provided vide functional website link.

5. Risk Factors

All mutual fund schemes carry certain risks. Section II of the SID in mutual funds highlights the key risks associated with the scheme. Depending on the type of scheme, these may include:

• Investment risks
• Liquidity risks
• Regulatory risks
• Credit, interest rate, reinvestment, and counterparty risks associated with debt instruments
• Risks associated with derivatives (if used)

This section of the scheme information document also includes proposed risk mitigation strategies the scheme may use. 

6. Fees & Expenses

Section III of Other Details the scheme information document will outline the costs associated with the scheme. This includes:

• Computation and disclosure of NAV
• NFO Expenses
• Annual Scheme recurring expenses 
• Load structure (entry and exit loads)

Understanding these costs helps you know how they may affect your overall investment. 

7. Other scheme-specific disclosures

This section explains how you can invest in and redeem the scheme. It covers details such as: 

• Listing and transfer of units, Dematerialization of units 
• Who can invest, Who cannot invest 
• How to Apply and other details 
• Cut off timing for subscriptions/ redemptions/ switches etc

Disclaimer: The points mentioned above are of SID is for educational and informational purposes only and do not constitute an exhaustive list of the contents or disclosures included in a Scheme Information Document (SID). Investors are advised to, kindly refer to the relevant SID and other offer documents for complete and detailed information before making any investment decision.

Reviewing the scheme information document before investing can help investors:

• Understand the scheme: Learn where the fund invests and what it aims to achieve.
• Know the risks: Understand the risks involved before investing your money.
• Review the costs: Check the expense ratio, exit load, and other applicable charges.
• Compare schemes: Compare different mutual funds based on their objectives, strategy, and features.
• Make an informed decision: Decide whether the scheme matches your financial goals, investment horizon, and risk appetite.

Apart from the scheme information document, AMCs are also required to issue other key offer documents. Here’s what they mean and how they compare: 

A Scheme Information Document (SID) helps you understand what you're investing in before you invest. It explains the scheme's objective, investment strategy, risks, costs, and other important details in one place.

Taking a few minutes to read the SID can help you make a more informed investment decision. If anything is unclear, you can always seek clarification from your mutual fund distributor or financial advisor as well.

1. What is the full form of SID in mutual funds?

The full form of SID in mutual funds is scheme information document. It is a SEBI-prescribed document that provides detailed information about a mutual fund scheme, including its investment objective, strategy, risks, fees, and other important details that investors should know before investing. 

2. Where can investors find the SID?

You can find and download the latest SID from the AMC’s website. Just go to the mutual fund scheme page, and you’ll find the SID listed there, along with other important offer documents. You can also download the scheme’s SID from SEBI’s website. 

3. Why should I read the SID of a mutual fund?

Reading the SID of a mutual fund helps you understand how the scheme works before investing. It explains the investment objective, asset allocation, risks, costs, and other important terms so you can decide whether the scheme is suitable for your financial goals and risk appetite.