SEBI Directs Fund Houses to Send MF Portfolio via Email to Investors

SEBI Directs Fund Houses to Send MF Portfolio via Email to Investors

New Delhi: Mutual Fund investors will now face no hassle in viewing their scheme portfolio through the Asset Management Company’s (AMC) website. The Securities and Exchange Board of India (SEBI) has already issued a circular on June 5, directing the fund houses to provide the portfolio statement to the unitholders on monthly basis on their email.

The AMCs have been given a month’s time to implement the new guidelines referring to the information dissemination to the investors.

Great Help to the Investor

This move will prove to be a great help to the investor. The fund house will be sending the scheme portfolio statement on monthly as well as half-yearly basis, within 10 days from the close of each month or half-year, to the email address of the investor updated with them.

Earlier, the AMCs used to update the portfolio on their respective website but now they will have to email it also to the unitholders. They will also provide a physical copy, free of cost, in case a unitholder requests for it.

The statement will be in form of a link from the fund house, which will redirect the unit holders to the website of the AMC. It will be in Excel format. The equity scheme portfolio helps in understanding the scheme in which the shares are invested, the percentage of shares purchased and allocation of the shares industry wise. The debt portfolio will help the investor in understanding the debt instrument, ratings and percentage of holding.

Net Asset Value to be Disclosed

Mutual funds will have to prominently disclose the NAVs of all schemes under a separate head on their respective website and on Association of Mutual Funds in India’s (AMFI) website. Further, fund houses will have to extend the facility of sending latest available NAVs to unitholders through SMS, upon receiving a specific request in this regard. Also, physical copies of the annual report or abridged report shall be sent to only those unitholders who specifically ‘opt-in’ to receive physical copies.

What you should do?

Make sure you have the email updated in the fund house’s records. If there is no such communication from the fund house and you hold its scheme, get your information updated. You should not solely rely on the portfolio statement as the fund fact sheet has more important information as schemes, investment philosophy, benchmark, fund size, expense ratio, and so on.