What documents are provided as proof of my investment in mutual funds?

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.

What documents are provided as proof of my investment in mutual funds?

Once you invest in a mutual fund scheme, you will get a bank statement with details such as the date of the transaction, the amount invested and the price at which the units are purchased, and the number of units allocated to you.

You can make multiple transactions in the same account, where your statement will continue to be updated. A typical bank statement will list the latest (10 in most cases) transactions – be it purchase or redemption; dividends, if any; or even non-commercial transactions. The statement would also give you a count of your last unit balance, NAV of a recent date, and the current value of your investments.

If you lose a statement, you can always get another one without any problems. Losing your bank statement would not prevent you from making future transactions, including withdrawing money from your account.

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