If you discuss banking with your parents, or even your grandparents, one thing they will tell you about is their reliable old bank passbook. This passbook contained all the details of his banking, including when and where the debit transaction was done, when and by whom the money came, and of course, the overall account balance as on a particular date. Your parents religiously visit the bank every month to get their passbook updated to make sure everything is in order. You will remember that this was a time when most of the savings and investments were done through banks. However, today there are many ways to save and invest money. It is best and most common to invest through mutual funds.

Mutual funds are simply investment vehicles that pool investors’ money and then invest it in various assets such as equities, debt, gold, etc., and various investment strategies that will suit the order of the plan. Through mutual funds, you can diversify your investment portfolio, get the benefits of investing through expert fund managers, and you also have the option of investing in lump sum funds or through a Systematic Investment Plan (SIP) Is. The first allows you to invest a fixed amount, it can be as low as Rs. 500, in a mutual fund scheme and at the time intervals that best suit you. With all these advantages, it is imperative that you consider building an investment portfolio with mutual funds. You can choose to invest in multiple schemes from the same fund house or in different fund schemes from different fund houses. Now, like your parents and grandparents, you will want to track your investments, know where you have invested your money, and evaluate the returns they have earned on a given date. To get these details, along with many other information, you can always check your mutual fund statement.

So, what exactly is a mutual fund statement?
Mutual fund statement is similar to your bank account statement. It provides you a complete summary of your mutual fund investments. If you request a fund house for mutual fund statement then you will get a summary of all mutual fund investments done with that particular fund house in various schemes. However, if you request for a Consolidated Account Statement (CAS) from the Registrar or Depository, you will get a holistic view of all your investments in mutual funds across various fund houses.

While the format and layout of all fund houses may differ, the basic components remain the same. Some of these include:

• Folio number: As a mutual fund investor, you will be assigned a unique folio number which acts as an identification for your mutual fund investments. Usually, it is mentioned just above the statement. It is always best to use a single folio number for all your investments in a particular fund house so that all the investments you make with a particular mutual fund can be tracked from just one folio number.
• Description Period: Usually the statement period is mentioned near the folio number. Statement Period tells you the transactions that have taken place during a specific period.
  
• Your Personal Details: This section of the mutual fund statement will include your full name, correspondence address, contact number, email address, date of birth and investor category, i.e. sole investor or joint investor. Your PAN number may also be there in this section.
• Enrollment: Nominee is the person whom you have assigned to claim the amount in your mutual fund account in the event of your death. The Nomination section will reveal whether you have selected the nominee or not. If you have, it will be highlighted as ‘Registered’.
• Consultant/Distributor Details: If you have invested in mutual funds through an advisor or distributor, this section will mention their details including their name and Application Reference Number (ARN). If you have not gone through an intermediary, the statement will highlight this clause as ‘direct’.
• Bank Details: This section will mention your bank account details which include your bank account number, bank name and IFSC code.
  
• description of transaction

• Plan: It will highlight the name of the scheme in which you have invested.
• Transaction Date: It will mention the date on which the transaction is done.
• are not: Net Asset Value or NAV is the cost of one unit of the fund. It is calculated as: (the total market value of all securities and cash in the fund Low total value of liabilities) / total number of units.
• NAV Date: The NAV of a mutual fund scheme is calculated daily at the end of the market day. When you buy or sell units in a mutual fund scheme, the price or NAV on a specified date is taken into account.
• Transaction Type: This section tells you whether you have bought or redeemed the investment and also the route chosen.

1. outright A fixed amount is directly invested or redeemed in a mutual fund scheme.
2. SIP: You invest a fixed amount in a mutual fund scheme of your choice at a time interval that suits you best, i.e., fortnightly, monthly or quarterly.
3. Systematic Transfer Plan (STP): You choose to transfer a fixed amount or a certain percentage of the amount from one plan to another at pre-determined time intervals.
4. Systematic Withdrawal Plan (SWP): You choose to withdraw a fixed or variable amount from the mutual fund scheme of your choice at pre-determined time intervals.

Zodiac: It shows how much money you have invested or withdrawn.

Units: It shows the number of units that you have bought or redeemed and is a function of the amount invested/redeemed and the scheme NAV as on the date of the transaction.

current value: This is the current market value of your investment.

current cost: This is the amount you originally invested.

burden: It indicates any sales charge or commission that is levied by the fund house.

In addition to the above, Edelweiss Mutual Fund also provides a consolidated portfolio view that will tell you the present value of your portfolio, the total amount invested and the total profit in both rupee and percentage terms. Additionally, it provides an asset structure view that indicates how much of your money is invested in debt and how much is invested in equities. This can help you with your asset allocation strategy and ensure that you are aligned with your overall portfolio goals.

We live in a world of information overload where everyone has tons of information. However, all this information is of no use if you don’t know how to read and evaluate it. Now with this primer on mutual fund statement analysis, you will be in a better position to read and understand your mutual fund statement and know more about investing.

An Investor Education Initiative by Edelweiss Mutual Fund

All mutual fund investors have to go through a one-time KYC process. The investor should deal only with Registered Mutual Funds (RMF). For more details on KYC, RMF and procedure for filing/redressal of any complaint, visit –
https://www.edelweissmf.com/kyc-norms

Mutual fund investments are subject to market risks, read all the scheme related documents carefully.