Investor Charter for Mutual Funds
Our Vision
To develop the Indian Mutual Fund Industry and bring a high degree of professionalism transparency and ethics by enacting regulations to govern the functioning of mutual funds in order to enhance and maintain standards to protect and promote the interests of unit holders of mutual funds.
Our Mission
- To support the development of a vibrant, transparent, ethical and globally competitive asset management industry.
- To enact and enforce rules and regulations that promote the maintenance of high professional and ethical standards in all areas of operation of the mutual fund industry.
- To work closely with the mutual fund industry in order to recommend and promote good business practices and a code of conduct to be followed by all asset management companies engaged in the activities of investment management in the best interests of unitholders / investors.
- To recommend standardized operational processes to be followed by the Mutual Fund industry for the convenience and benefit of the investors.
- To undertake nationwide investor awareness programmes, so as to inform and educate existing and prospective investors about mutual funds as an asset class and to educate the public about the concept and working of mutual funds.
- To protect the interest of Investors/unit holders.
Description of Activities/Business of the Entity
- To offer investment opportunities to the investors through various schemes.
- To pool money by issuing units to the investors at the applicable Net Asset Value (NAV).
- Deploy the monies pooled from investors in various securities and manage the portfolio in accordance with objectives as disclosed in Scheme Information document and in compliance with all applicable regulations.
- Disclose various information including NAV on daily basis, Risk-o-meter of schemes, portfolio of the schemes, performance of the schemes, annual report or abridged annual report etc.
- Pay redemption proceeds and Income Distribution cum Capital Withdrawal (IDCW) etc. to the investors.
- Process investor’s financial and non – financial transactions / service requests.
Services provided for Investors
Providing physical Consolidated Account Statement (CAS) for each calendar month
by 15th of succeeding month
Providing e-CAS for each calendar month
By 12th of succeeding month
Providing physical CAS for the half year
By 21st of succeeding month
Providing e-CAS for the half year
By 18th of succeeding month
Request for Dematerialisation of units
2 working Days *
Notes:
- * All the above mentioned time taken for providing service (Financial & Non-Financial) will be subject to receipt of complete documentation/information from the investor.
- Day refers to working day unless otherwise specified.
- The Asset Management Companies which fail to meet the stipulated timelines maybe liable for suitable action as deemed fit in terms of SEBI Act, 1992 or regulations framed thereunder.
Grievance Redressal Mechanism for Investors
1. In case of any grievance / complaint, an investor should approach the concerned Mutual Fund / Investor Service Centre of the Mutual Fund. If the complaint remains unresolved, the investor may write to the designated Investor Relations Officer of the mutual fund. The name of the Investor Relations Officer / contact person is generally mentioned in the Scheme Information Document (SID) of the mutual fund scheme, and also on the website of the concerned mutual fund, whom one may approach / write to in case of any query, complaints or grievance.
2. If the investor’s complaint is not redressed satisfactorily, one may lodge a complaint with SEBI on SEBI’s portal, named , 'SCORES', which is a centralized web based complaints redress system. SEBI takes up the complaints registered via SCORES (https://scores.gov.in/scores/Welcome.html) with the concerned mutual fund / intermediary for timely redressal. SCORES facilitates tracking the status of the complaint.
3. Investors may send their physical complaints to: Office of Investor Assistance and Education, Securities and Exchange Board of India, SEBI Bhavan. Plot No. C4-A, G’ Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051
4. If the complaint remains unresolved on SCORES or the investor is dissatisfied with the resolution provided, the investor may opt for the Online Dispute Resolution (ODR) mechanism as prescribed by SEBI. The ODR mechanism provides resolution of disputes through online conciliation and/or arbitration in a time-bound and cost-effective manner and can be accessed at https://smartodr.sebi.gov.in
Do's and Don'ts for Investors
Do's
Don'ts
1. Check registration status of the Mutual Fund on SEBI website before transacting with them. | 1. Do not invest based on speculation, rumor or informal advice. |
2. Read all Scheme related documents and understand the scheme features and the risks involved and suitability of the scheme to the investor’s risk profile. | 2. Do not fall for the promise of indicative or exorbitant or assured returns. |
3. Provide and keep updated KYC details including address, tax status, residency, and other key information such as PAN & bank account details. | 3. Do not issue blank cheques or blank signed transaction instructions |
4. Provide own email address and mobile number and to promptly notify changes to this information, if any. | 4. Do not use third-party bank accounts for fund flows for subscription or redemption of units. |
5. Check Account Statement & Common Account Statements for discrepancy, if any and promptly bring any such discrepancies to the notice of the Asset Management Company. | |
6. Read communications / notices / addendums / press releases, etc. sent / or published by the mutual fund via newspapers, email, etc. | |
7. Consider availing nomination facility in respect of investments made in Mutual Funds. | |
8. Choose the plan for investments i.e. Direct Plan or Regular Plan. | |
9. Invest through registered and regulated entities. | |
10. Keep confidential critical information such as user ID, password, etc. | |
11. Invest by issuing payments in the name of the Mutual fund / scheme only and not in the name of any other entity. |
- Right to receive information and details about the scheme including about its investment philosophy, risk profile, portfolio holdings, fees, charges and expenses and such other information as may be required under SEBI regulations to enable investors to make an informed decision about investing in a scheme, prior to making any such investment.
- Right to timely receipt of account statement evidencing a transaction as specified in the SEBI Mutual Funds Regulations, or to receive such statements on request.
- Right to receive Consolidated Account Statement (CAS) at a periodic frequency as specified by SEBI.
- Right to timely disclosure of daily Net Asset Values (NAV), Portfolio and Performance of each scheme including scheme’s AUM, investment objective, expense ratios on mutual fund website.
- Right to receive Annual report / abridged annual report of the scheme(s) invested in,
- Right to timely receipt of redemption proceeds / dividend payments / refunds, as applicable.
- Right to be notified about any change in the fundamental attributes (features) of a mutual fund scheme in which the investor has investments and to be provided a right to exit the scheme without cost, if so desired, as a result of the fundamental attribute change.
- Right to be informed about such disclosures which may have a material bearing on their investments in mutual fund schemes.
- Right to privacy of information in accordance with the applicable laws of the land.
- Right to security of, and access to, information provided to Asset Management Companies and their service providers in relation to investments in mutual funds. Right to have such information corrected and receive confirmation of such correction.
- Right to information about how complaints are handled and can be escalated in the event investors are not satisfied with the resolution provided.
- Right to timely redressal of grievances and complaints within the timelines specified by regulations and the right to escalate complaint not resolved satisfactorily to the Investor Grievance Officer of the respective Asset Management Company.
- Right to escalate unresolved complaints to SEBI via the SCORES portal. In addition to SCORES, investors can also opt for online dispute resolution (ODR) mechanism, which includes mediation and/or conciliation and/or arbitration, in accordance with the procedure specified by the SEBI