Shyamal Banerjee/Mint
Shyamal Banerjee/Mint

How to read an MF common account statement

If there has been a transaction, you get a statement the next month.

Living abroad and investing your money miles away, especially in mutual funds (MFs), shouldn’t be an unnerving exercise since all your investment details are available timely and periodically. Effective September 2011, the capital markets regulator, Securities and Exchange Board of India (Sebi), ruled that all fund houses (through their registrar and transfer agents) will send a consolidated account statement (CAS) to their investors.

Earlier, MF investors used to get account statements from different fund houses. “This resulted in investors having to maintain many documents. A common statement now means less paperwork," says Gaurav Mashruwala, a Mumbai-based financial planner.

It has been a little over a year since MFs started sending CAS to investors and late last year the format even underwent a change.

Action in your folios

The rules say that in whichever of your folios there has been some “action", you will get a CAS in the following month. By “action", we mean dividend declaration, redemption, additional subscription, switch, systematic investment plan, change of address and so on. Say, you have two systematic investment plans (SIPs) going on; one whose date is 7th and the other whose date is 10th of every month. This means that you will get a CAS in the following month, containing details of SIP transactions of both these schemes.

For all those folios where there has been no action for six months—also classified as inactive folios in MF parlance—fund houses will send you a CAS once every six months.

Things to watch out for

Non-resident Indian (NRI) investors must first check their non-resident (external) rupee account (NRE account) or non-resident ordinary rupee account (NRO account) numbers.

Transaction details: The CAS would have details segregated fund house-wise. Within a fund house, you will have different schemes and their respective folios. Your scheme’s closing unit balance and its market value is listed as a footnote, below your specific scheme’s transaction details.

KYC and PAN: Your CAS will tell you whether or not you have submitted your Permanent Account Number (PAN) and fulfilled your know-your-client (KYC) norms. If you have submitted, you will find an “OK", else you will see a “not OK" there. Says Surajit Misra, national head (mutual funds), Bajaj Capital Ltd, one of India’s largest retail MF distributors: “Usually it is either ‘OK’ or ‘not OK’ for all fund houses. But sometimes, KYC may be updated at some RTAs (registrar and transfer agents) and may not be updated with other RTAs in whose schemes you may have invested in. In any case, if your KYC is not updated, it’s always a good practice to get it updated."

Consolidated valuation

Though fund houses send you CAS once every month—provided there has been an action in the preceding month—you could get a CAS online any time you want. You can visit the websites of RTAs such as (Computer Age Management Services Ltd) and (Karvy Computershare Ltd). You need to submit your email ID and choose a password; the RTA will then email you the CAS which you can open it using the password you had set earlier.

In these mailback services, you could either choose to get CAS with detailed transactions or just get the market value of all your MF investments. You can also choose a time period or just stick to the current or previous financial year.

Where will you get them?

If you are an NRI investor, you have two choices. Your fund house can send you the CAS over email if you have submitted your email ID to them. If you haven’t given them your email, they can also send you account statements to your local (Indian) address. “As part of the KYC procedure, investors are supposed to provide a local address. We normally also send account statements of NRIs to such address," says Akshay Gupta, chief executive officer, Peerless Asset Management Co. Ltd. He added that fund houses prefer to dispatch account statements over email “as that is much quicker".

“We also try and send account statements to foreign addresses, in cases where investors have not given us their email IDs, but that is risky as we have seen quite a few cases where the statements don’t get delivered and get lost," adds Karan Datta, national sales head, Axis Asset Management Co. Ltd.