Disclosure of Daily NAV

Each scheme’s NAV is required to be disclosed at the end of each business day. The same is
published on the website of the AMC. The Mutual Fund declares the Net Asset Value of the
scheme on every business day on AMFI’s website www.amfiindia.com (as per the time limit
for uploading NAV defined in the applicable guidelines) and also on their website.37

In case of open-ended schemes, the NAV is calculated for all business days and released to
the Press. In Liquid and Overnight Funds, NAVs are declared on Sundays / holidays as well,
which reflects the accrual for that day. In case of closed-ended schemes, the NAV is calculated
at least once a week.

SEBI has revised the time limit for the disclosure of NAV of Mutual Fund Schemes investing
overseas.38

With the availability of historical NAV, an investor should also be able to calculate how a
scheme has performed over whatever period one wants to check for.

Disclosure of Total Expense Ratio

One of the important factors that impact the scheme’s NAV is the Total Expense Ratio (TER),
charged to the scheme. Though the same is very tightly regulated through SEBI regulations,
the investor should know about the scheme expense ratio. SEBI has mandated that the Asset
Management Companies (AMCs) should prominently disclose on a daily basis, the Total
expense ratio (scheme-wise, date-wise) of all schemes under a separate head – “Total
Expense Ratio of Mutual Fund Schemes” on their website. The same must also be published
on the AMFI website. The AMCs are also required to send the update to the investors through
email whenever there is a change in the expense ratio. The format of disclosure of TER of
mutual fund schemes is exhibited below in Table 5.1.39

Table 5.1 Total Expense Ratio (TER) for Mutual Fund Scheme
Name of Scheme: XYZ
Date Regular Plan Direct Plan

37Inorder to enable consideration of all trades during a day for valuation, it has been decided to extend the present timeline
up to 11.00 p.m. for uploading the NAVs of all schemes (except of fund of fund) on the website of AMFI and respective AMCs.
(Vide SEBI Circular dated September 24, 2019).
38Candidates are advised to read the circular: https://www.sebi.gov.in/legal/circulars/mar-2023/review-of-time-limit-for-
disclosure-of-nav-of-mutual-fund-schemes-investing-overseas_69519.html
39https://www.sebi.gov.in/legal/circulars/jun-2018/total-expense-ratio-for-mutual-funds_39187.html and

https://www.sebi.gov.in/legal/circulars/oct-2018/total-expense-ratio-ter-and-performance-disclosure-for-mutual-
funds_40766.html
106
 (DD/MM Base Additional Additional GST Total Base Additional Additional GST Total
/YYYY) TER expense as expense as (%) TER TER expense as expense as (%) TER
(%) per Regulation per Regulation (%) (%) per per (%)
52(6A) (b) 52(6A) (c) Regulation Regulation 5
(%) of Mutual (%) of Mutual 52 (6A) 2(6A) (c)
Funds Funds (b) (%) of
(%) of Mutual
Mutual Funds
Funds
01/03/20
19
02/03/20
19
03/03/20
19
…
…

Any change in the base TER (i.e., TER excluding additional expenses provided in Regulation
52(6A) (b), 52(6A) (c) of SEBI (Mutual Funds) Regulations, 1996 and Goods and Services Taxon
investment and advisory fees) in comparison to the previous base TER charged to any
scheme/plan has to be communicated to investors of the scheme/plan through notice via
email or SMS at least 3 working days prior to effecting such change. Further, the notice of
change in base TER should be updated on the AMC website at least 3 working days prior to
effecting such change. A decrease in TER should be immediately communicated to investors
of the scheme through email or SMS and uploaded on the website.

Scheme-wise dashboard on mutual fund website

Each AMC is also required to publish a scheme performance dashboard on the website, and
update it on a regular basis. The dashboard highlights how various schemes of the mutual
fund have performed over various holding periods. The scheme performance data is also
available on the AMFI website.40

Most AMCs allow this dashboard to be downloaded in a tabular form. This contains the
following information about the schemes of the mutual fund:
• Scheme name
• Scheme classification and category: For example, Equity multi-cap scheme; or Solution-
oriented scheme–retirement fund
• Type of scheme: Open-ended or close-ended
• The investment objective of the scheme
• Name of the fund manager
• Benchmark index (including additional benchmark, if any)

40https://www.amfiindia.com/research-information/other-data/mf-scheme-performance-details

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 • Exit load41 and lock-in period (if any)
• Plans and options: For example, direct and regular plans; Income Distribution cum capital
withdrawal and growth options, etc.
• Minimum investment amount
• Month-end AUM
• TER
• Scheme inception date
• Month-end portfolio
• Scheme performance

Such a dashboard allows an investor to make an easy comparison of schemes across the
mutual fund.

Risk-o-meter

Mutual Fund/AMCs shall also disclose risk-o-meter of the scheme and benchmark while
disclosing the performance of scheme vis-à-vis benchmark.

Portfolio disclosure

This is a list of securities where the corpus of the scheme is currently invested. The market
value of these investments is also stated in portfolio disclosures. Mutual Funds/ AMCs shall
disclose portfolio (along with ISIN) as on the last day of the month / half-year for all their
schemes on their respective website and on the website of AMFI within 10 days from the
close of each month/ half-year respectively in a user-friendly and downloadable spreadsheet
format. For debt schemes, such disclosure shall be done on fortnightly basis within 5 days
of every fortnight. In addition to the current portfolio disclosure, yield of the instrument shall
also be disclosed.

In case of unit holders whose e-mail addresses are registered, the Mutual Funds/ AMCs shall
send via email both the monthly and half-yearly statement of scheme portfolio within 10 days
from the close of each month/ half-year respectively. 42

Financial results

The mutual fund shall before the expiry of one month from the close of each half year, (Mar
st th)
31 and Sep 30 shall display the unaudited financial results on the AMC website, the
advertisement in this reference will be published by the fund in at least one English daily
newspaper having nationwide circulation and, in a newspaper, having wide circulation
published in the language of the region where the head office of the fund is situated.

Annual reports and related disclosures

41It is clarified that the provision of Regulation 49(3) of MF Regulations applies on all open-ended mutual fund schemes wherever
exit load is applicable.
42 https://www.sebi.gov.in/legal/master-circulars/may-2023/master-circular-for-mutual-funds_71438.html

108
Annual report or abridged summary is required to be hosted on AMCs website and on the
website of AMFI. This is sent by email to the investors who have registered their email id with
the fund, no later than four months from the date of closure of the relevant financial year i.e.,
March 31 each year. Investors’ who have not registered their email-id have an option of
receiving a physical copy of the Annual report or an Abridged summary thereof. The
advertisement in this reference is required to be published by the mutual fund in all India
editions of at least two daily newspapers, one each in English and Hindi.

Disclosure pertaining to change in control of the AMC

While seeking the approval of SEBI for change in the control of the AMC, the mutual fund
handing over the control to another person, should file the draft letter / email to be sent to
the unitholders along with draft advertisement to be published in the newspaper.43

5.2 Non-Mandatory Disclosures

Fund Factsheet

One of the most popular documents from the mutual fund is the monthly Fund Factsheet. This
document is extensively used by investors, fund distributors, fund rating agencies, research
analysts, media and others to access information about the various schemes of the mutual
fund. While it is not a regulatory requirement to publish the monthly fact sheet, it is a market
practice followed by all the fund houses, on a voluntary basis. Since fund factsheet is a
marketing and information document, various SEBI regulations pertaining to information
disclosure are applicable to it.

The fund factsheet contains the basic information of each scheme such as the inception date,
corpus size (AUM), current NAV, benchmark and a pictorial depiction of the fund’s style of
managing the fund. The fund’s performance relative to the benchmark is provided for the
different periods along with the benchmark returns, as required by SEBI’s regulations. The
factsheet also provides the SIP returns in the scheme, portfolio allocation to different sectors
and securities. However, some fund houses do not disclose the entire portfolio but only the
top 10 holdings.

In the factsheet, security wise as well as sector wise allocation is provided for equity schemes.
Some factsheets also disclose the derivatives exposure taken by the mutual fund schemes. In
the debt funds, the factsheet discloses the rating profile of the various securities, and a
snapshot of exposure of the scheme to various rating baskets.

Portfolio features such as the price-earnings ratio (PE), Beta and other risk measures such as
standard deviation and Sharpe ratio (in case of equity funds), credit rating profile, average
maturity and duration (in case of debt funds) are also available in the factsheet. The factsheet

43 Candidates are advised to read: https://www.sebi.gov.in/legal/circulars/aug-2023/timeline-for-the-exit-option-window-

period-for-change-in-control-of-amc_75221.html
109
also provides investment details such as the minimum investment amount, the plans and
options available in the scheme, the loads and expenses and systematic transaction facilities
available in the fund.

110