Are there any aspects in an offer document, particularly important for investor?

An abridged offer document containing useful information is given to the prospective investor by the mutual fund. The application form for subscription to a scheme is a vital part of the offer document. The Securities and Exchange Board of India (SEBI) sets the minimum disclosures in the offer document.

It is advisable that the investor reads the offer document carefully before investing in a scheme, especially sections of the document regarding aspects such as risk factors, initial issue expenses and recurring expenses to be charged to the scheme, entry or exit loads, sponsor's track record, educational qualification and work experience of key personnel including fund managers, performance of other schemes launched by the mutual fund in the past, pending litigations and penalties imposed, etc.