What is the difference between SID, SAI, and KIM in mutual funds?

SID (Scheme Information Document) covers scheme-specific details. SAI (Statement of Additional Information) covers AMC/trust level information common to all schemes. KIM (Key Information Memorandum) is a 2-page summary of the SID attached to application forms.

How many mutual fund categories did SEBI create in October 2017?

SEBI defined 36 categories across 5 types: 11 equity, 16 debt, 6 hybrid, 2 solution-oriented, and 1 other. Each AMC can operate only one scheme per category to prevent duplication.

What is the lock-in period for ELSS funds?

3 years from the date of each investment. For SIP investments, each installment has its own independent 3-year lock-in from its purchase date — the lock-in does not start from the first installment for all units.

Who receives the exit load charged on mutual fund redemptions?

Exit load is credited back to the scheme corpus, benefiting remaining unit holders. It is not retained by the AMC as revenue.

What is the difference between open-ended and close-ended mutual funds?

Open-ended funds allow daily subscriptions and redemptions at NAV with no fixed maturity. Close-ended funds have a fixed maturity, accept subscriptions only during NFO, and are listed on stock exchanges for liquidity.

NISM V-A Chapter 5: Score 10 Marks on Scheme Information (2026)

NISM V-A Chapter 5 carries 10 marks and details 3 key mutual fund documents: SID, SAI & KIM. Learn SEBI fund categories and exit load rules.

What Documents Must Every Mutual Fund Scheme Have?

Chapter 5 carries 10 marks and is one of the most document-heavy and detail-oriented chapters. Every mutual fund scheme must publish three key documents that investors can access before investing.

Scheme Information Document (SID)The primary disclosure document for a specific mutual fund scheme. Contains: investment objective, asset allocation, risk factors, fund manager details, benchmark, exit load, expense ratio, and how to invest. Must be updated within 3 months of the financial year end.

Statement of Additional Information (SAI)Contains information about the AMC, trustees, auditors, legal structure, and tax details — common across all schemes of a fund house. The SID + SAI together constitute the full offer document.

Key Information Memorandum (KIM)A 2-page summary of the most important facts from the SID. Must be attached to every application form. Designed for quick investor reference.

What Are SEBI's Mutual Fund Categories Post-October 2017?

In October 2017, SEBI reclassified all mutual funds into 36 categories across 5 broad types: Equity (11 categories), Debt (16 categories), Hybrid (6 categories), Solution-oriented (2 categories), and Other (1 category). This rationalisation eliminated duplicate schemes and standardised category definitions.

36SEBI-defined mutual fund categories post-October 2017 reclassification — each AMC can have only one scheme per category

The exam frequently asks: how many equity categories are there (11)? Can an AMC have two Large Cap funds (No — one scheme per category per AMC).

What Is Exit Load and How Is It Applied?

Exit load is a fee charged when you redeem units within a specified period. It is deducted from the redemption proceeds, not charged separately. Exit loads are credited back to the scheme (not retained by the AMC). After the exit load period, redemption is at full NAV with no charge.

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ELSS Lock-inEquity Linked Savings Scheme units have a mandatory 3-year lock-in from the date of each investment. Units cannot be redeemed before 3 years. For SIP investments, each installment has its own 3-year lock-in from its respective purchase date.

What Is the Difference Between Open-Ended and Close-Ended Funds?

Open-ended funds allow subscriptions and redemptions at NAV on any business day — no fixed maturity. Close-ended funds have a fixed maturity date, accept subscriptions only during the NFO period, and are mandatorily listed on stock exchanges for liquidity. Interval funds combine both — they have specific transaction windows.

Chapter 5 Practice Questions

Q1. How many mutual fund categories did SEBI define in October 2017?

Answer: 36 categories across 5 types (equity, debt, hybrid, solution-oriented, and other). Each AMC can operate only one scheme per category.

Q2. Where does exit load money go — to the AMC or back to the scheme?

Answer: Back to the scheme. Exit loads collected are credited to the scheme's corpus, not retained by the AMC. This benefits remaining unit holders.

Q3. An investor makes SIP investments in an ELSS fund for 12 months. When can the first installment be redeemed?

Answer: 3 years from the date of the first installment. Each SIP installment has its own 3-year lock-in. The last installment cannot be redeemed until 3 years from its own purchase date.

Practice every scheme document and category question — BullWiser NISM Mock Test →

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Continue to Chapter 6: Fund Distribution or back to the full NISM V-A guide.