Understanding your mutual fund statement of account

Mutual Funds | admin | June 23, 2011 at 7:40 am

If you have invested in a mutual fund scheme, the fund house has to send you a statement with details of your investment. You can opt for a physical copy of the statement or a soft copy, which is e-mailed to you and which you can access online. This statement is sent to you within three working days of the transaction. Here are some important things you need to check in your statement.

Personal details and bank details: Your name, address, e-mail ID and contact numbers of the investor or joint investors, if any, are mentioned in this section. Check if the name of your bank and account number is mentioned correctly, else you might face hassles when you redeem your mutual fund units. In case you need to change your bank mandate, fill up the slip provided at the bottom of the account statement and submit it to the fund house.

Folio and account numbers: Each time you invest in a mutual fund, the fund house gives you an account number. You 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, it would be wise to mention your account number so that the fund house can consolidate all accounts under a single folio. This makes it easier to track all the investments with a particular fund house.

Current cost and value: The current value is the latest market value of the investments on the date the statement is generated, while the current cost indicates the amount invested in the scheme. The number of units allotted is calculated using the amount invested divided by the NAV of the scheme as on the date of allotment. In case there is an exit load, it would be deducted from the NAV and the proceeds paid out to the investor.

Advisor's name and PAN details: If you have invested through an agent, his/her name and code will appear on the statement. However, if you have invested directly, these columns should be blank in your account statement. It is mandatory for you to provide your Permanent Account Number (PAN) irrespective of the amount you have invested. Check that the PAN mentioned in the account statement is correct.

Transactions summary: This section mentions the types of transactions you have opted for, which might include purchase, systematic investment plan (SIP) or systematic withdrawal plan (SWP). Other transactions like the dividend paid out or reinvestments are also mentioned along with the percentage or rupees per unit at which the dividend is reinvested or paid out.

Source: Economic Times