Do mutual funds issue a booklet?

A mutual fund is a professionally managed company that collects money from many investors and invests it in securities such as stocks, bonds and short-term debt, equity or bond funds and money market funds.

Mutual funds are a good investment for investors looking to diversify their portfolio. Instead of betting everything on one company or sector, a mutual fund invests in different stocks to try to minimize portfolio risk.

The term is typically used in the US, Canada and India, while similar structures around the world include the SICAV in Europe and the open-ended investment firm in the UK.

Do mutual funds issue a booklet?

While banks and some small savings schemes issue a passbook, mutual funds do not issue a passbook, instead they issue a bank statement. The main purpose of a booklet is to keep track of all transactions with a bank: deposits, withdrawals, interest credits, etc. Even in a mutual fund scheme, there may be similar transactions: buying, redeeming, trading, reinvesting dividends etc. In a unit trusts scheme, such transactions are recorded in the statement of account.

A bank statement is issued after the first investment in a scheme has been made. The statement would reflect all relevant details: investor name, address, details of the joint holding, amount invested, NAV details, assigned units, etc. Each time a new transaction is made, the statement is updated and a copy is sent to the investor. In this digital age, many investors opt for electronic statements, which is a more convenient way to read, access, and store information.

Investors can access and take advantage of a duplicate account statement at any time by contacting the asset management companies (AMCs) or its registrar. The bank statement of the scheme then plays the role of a booklet.

Inline Feedbacks
View all comments
pexels kindel media 6995252

Is it possible to change the SIP amount every month?

pexels photomix company 95916 1

Should the goals be only long-term or short-term?