When investing through Mutual Fund Distributors (MFDs), investors need to understand and agree to 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 are transparently disclosed to the investor in accordance with SEBI guidelines.
- 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 offer an execution-only platform, meaning we execute transactions based on customer instructions 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.