Tuesday, February 5, 2013

How to read Mutual Fund Account Statement!

Yesterday one of my client called me and was looking for mutual fund account statement and also want to know how the fund performed till today.

I sent all the details by email that is account statement of all investment made in mutual fund under my ARN code, and after receiving she called me back as unable to understand as how to check the details.

I guess this problem is faced by many people who invest in mutual funds as what to check in that statement, they find difficult to check all the details especially how much invested till today, how much dividend received or reinvested till today, and what is current value of your investment, how much return you got from your investment.

In order to make you understand and what to read in mutual fund account statement i will classify that in different sections to get easy access to your mutual fund account statement.

1. Check your Personal details
  Personal details like your complete name, address, email address, Pan details are correctly added in account statement, as if the information is not added especially email address, phone number or address then you may miss important alerts regarding your transaction in that mutual fund scheme.

You must give the correct Permanent Account Number (PAN), Check your PAN details mentioned in the account statement and ensure there are no discrepancies.
Now Pan and KYC is compulsory in mutual fund investment.

Very recently i had planned to create online access to one of my investment as decided to sell my some of old holding in mutual fund investment online, creating online access is available in many mutual fund website, but i was unable to do so reason my pan details were not added in that folio, so its very important to add or update your details in mutual fund account statement.

2. Investment Details
Second most important details to check is how much amount you have invested, what is current value of your investment, which option you opted dividend or growth.
If it is dividend option check whether its dividend payout or dividend reinvestment
If it is dividend payout check whether you have received all the dividends.
Normally all details are available in portfolio summary and that give you clear picture of your investment in that particular scheme.

In order to check complete details ask for "Consolidated Account Statement"
i.e from inception

3.  Redemption and Dividend Mode of Payment Option
 This is one of the most important thing to check in your mutual fund account statement. Now ECS /auto credit option is available in most nationalized banks in India, so if your mode of payment is by cheque, update that to ECS or direct credit in your bank account. 
Also check  that your bank complete details are correctly added in that mutual fund scheme.

 4. Bank Details
 Make sure your bank's name and your account number are accurately mentioned to avoid problems while redeeming units or getting dividend from that scheme. If you want to change your bank mandate, follow change of bank details process and update your bank details in that mutual fund scheme.

5.Nominee Details
This is also one of the most important details to check in your mutual fund account statement. Nominee details are available in account statement, normally information is placed on right/left side of account statement.
If nominee details are not available in mutual fund account statement, call mutual fund customer care helpline number, and verify  and update your nomination details.  

Where to check details in Mutual Account Statement

Refer this:

Toll Free Helpline Numbers of Mutual Funds in India

2. Some mutual fund websites have such option available in website, like in SBI mutual fund website, you can check whether nominee details are registered in your folio or not.

3. If you have online access to your mutual fund investment, you can check the nominee details by visiting online.

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