Understanding The 'Fact Sheet' Of Mutual Fund

When it comes to mutual funds, the 'fact sheet' is one of the reports required to be published by the fund houses every month.

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So, what does the fact sheet mean for the investors? If we go by the bare definition of a fact sheet, it is a paper giving useful information about a particular issue, especially the one debated on a television/radio programme. However, when it comes to mutual funds, fact sheet means a document which gives you valuable information about a particular mutual fund scheme.

If you have invested in a mutual fund, then you may have definitely checked the fact sheet of the scheme on the AMC's (Asset Management Company's) website. It is a review statement which is prepared and uploaded by fund houses every month on their respective websites. As per SEBI's (Securities and Exchange Board of India's) regulations, it is mandatory on the part of AMCs to do so. Fact sheet is one of the most important documents for an investor, as it gives detailed information pertaining to a particular fund. In fact, you may also use the fact sheet to make investment decisions.

As you might have understood what a fact sheet means, now let us understand what all things to look for in a fact sheet. This will differ from category to category.

What to look in a fact sheet of equity funds?

First, you should read the equity market outlook and the commentary given by the CIO (Chief Investment Officer) of the respective fund house. It will give you an overall picture as to where the markets are heading, the fund house's strategy and whether the strategy is in line with your thinking.