Terms & Conditions
When investing through Mutual Fund Distributors (MFDs), investors need to understand the
following terms and conditions:
- Net Asset Value (NAV): The value of mutual fund units is based on the applicable NAV,
which fluctuates based on market conditions.
- Commissions and Fees: Distributors may receive commissions (upfront, trail, or
otherwise) from Asset Management Companies (AMCs). These should be transparently disclosed
to the investor.
- Entry and Exit Loads: Some mutual fund schemes may charge entry (at the time of
purchase) or exit loads (at the time of redemption). Investors should be informed about
these charges beforehand.
- Execution-Only Platform: MFDs may offer an execution-only platform, meaning they
execute transactions without providing investment advice.
- KYC Compliance: Investors must complete the Know Your Customer (KYC) process before
investing.
- Right to Information: Investors have the right to receive all relevant information
about the mutual fund schemes, including scheme information documents, key information
memorandums, and periodic statements.
