What does your MF account statement include?

A MF account statement offers all transaction details carried out within a defined time period

December 24, 2012 11:41 IST | India Infoline News Service
When we receive our mutual fund account statement, most of us hardly understand anything about the statement. We just briefly go through it and keep it aside on our table or store it in one of our folders. Some of us check if our names are mentioned clearly on the account statement. This is the maximum which we do while reading the statement. The MF statement includes terms like NAV (net asset value), load, folio number, etc. We hardly bother to verify these details.

Basically a MF account statement offers all transaction details carried out within a defined time period. The statement is also available online and indicates account changes whenever there is a redemption, additional investment or dividend declaration. Let’s understand some of the important details in the MF statement, which we need to check regularly.

The MF account statement summarises your investments in a scheme. In case of a lump sum investment, you should receive the account statement once a year. In case of an SIP (systematic investment plan), you receive it every quarter or whenever you make transactions in your MFs—giving details of the latest transactions.

Folio number: The folio number quoted on the top of the MF statement is a unique number. It is used as a reference number in all correspondence with the fund house.

Most fund houses offer one folio number and several account numbers in the same folio for all investments made under the same unitholder combination. This makes tracking all your investments with same fund house easier. Ensure that you track all your several account numbers within a single folio.

Personal details: The name, address, phone number, email ID (if any) of the investor and joint investors (if any) are mentioned in this section. Ensure that all these details are correct and updated. Also check your PAN card details are mentioned correctly. In case of any correction or changes, it should be communicated to the agent or fund house.

Nomination: Make sure that you have done the nomination for your MF investment. If the nomination is done, the MF statement will mention, ‘Registered’. The nominee’s name is not displayed in the statement to protect the privacy of the MF account. The appointment of a nominee leads to less complications at the time of claim in the event of the death of the MF holder. 

Adviser name: This indicates the source through which you have invested in MF. If you have done investment through an agent, the latter’s name and code will appear on the statement. However, if you have invested directly, the statement would mention the word ‘Direct’.

Bank details: Make sure your bank's name and your account number are accurately mentioned to avoid problems while redeeming units. If you want to change your bank details, fill out the slip at the bottom of your account statement and submit it to your fund house or agent.
Current cost & value: The cost indicates the amount you invested in a scheme while the current value is the latest market value of your investments as on the date the statement is generated.

NAV: It is the price at which you have been allotted units.

Transaction summary: This section details the type of transactions you have opted for, such as purchase, SIP, systematic transfer plan (STP) and systematic withdrawal plan (SWP).

SIP is an ongoing investment at predetermined intervals. Transactions like dividend payout or reinvestment are also mentioned along with percentage or rupees per unit at which the dividend is reinvested or paid. Dividend reinvestment refers that dividend declared by the fund house are reinvested / ploughed back into your MF scheme instead of being paid to you. Dividend payout refers to the dividends paid to you.

STP means that your investment will be transferred from one fund to another at intervals that you opt for. It may be from a debt scheme to equity or vice versa. SWP is a facility that allows an investor to withdraw money from an existing mutual fund at predetermined intervals. Dividend earned shows the total dividend earned by way of payout or reinvestment.

Transaction slip: It is a detachable portion at the end of the account statement. It is a transaction-cum-service request slip, which can be used for buying additional units, redeeming and switching units between schemes. The transaction slip can also be used if you want to notify any changes in your correspondence address and bank details. The back of the account statement should also be looked carefully. It contains important notes relating to investor services, KYC norms, additional purchase, switch, and the like.

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