📊 NISM Series V-A Chapter 5 of 12 ⚖ 10 marks weightage

Ch.5: Scheme Related Information

Q: Which document carries statutory information about the mutual fund and AMC, and applies to all schemes of that fund?

Statement of Additional Information (SAI). The SAI has statutory information about the mutual fund or AMC, so a single SAI serves all of a fund's schemes. Legally the SAI is part of the SID, but in practice they are separate documents.

Q: Who prescribes the format in which the SID and SAI must be prepared?

SEBI. Both documents follow a SEBI-prescribed format and sequence. The fund may add any other disclosure it considers material.

Q: Which entity issues the Due Diligence Certificate filed with the SID?

The Asset Management Company (AMC). The SID is filed with SEBI along with a Due Diligence Certificate from the AMC.

Q: In which part of the SID would an investor find the scheme's asset allocation pattern and investment strategy?

Information about the scheme. The 'Information about the scheme' section covers the name and type, investment objective, asset allocation, where the scheme invests, strategy, fundamental attributes, benchmark, fund managers, restrictions and track record.

Q: Which is an example of a scheme-specific risk factor rather than a standard risk factor?

Credit risk on the fixed income securities the scheme buys. Standard risk factors apply to all schemes (NAV volatility, no guaranteed returns, past performance not indicative). Scheme-specific risks come from what the scheme invests in, such as credit, interest rate or liquidity risk.

Practice questions for NISM-Series-VA: Mutual Fund Distributors Certification Examination (mandated by AMFI/SEBI for mutual fund distribution). Chapter 5 carries 10 out of 100 marks in the final examination. The exam has 100 MCQs, 120-minute duration, 50% passing score, and no negative marking.

MCQ

Total Qs

Exam Marks

50%

Pass Score

None

Neg. Marking

What You Will Learn in This Chapter

Understand different scheme categories: equity, debt, hybrid, solution-oriented
Learn SEBI's scheme classification and categorisation norms
Understand disclosure requirements in offer documents

Key Terms:scheme categorisationequity schemesdebt schemeshybrid schemessolution-orientedindex fundsETFsFoF

Concept guide: NAV cut-off time rules (1:30 pm vs 3 pm), with examples →

Chapter 5 in 10 minutes: scheme related information

Chapter 5 carries 10 of 100 marks in the NISM V-A exam. Most questions test three things: which document contains what, how often each document is updated, and the disclosure deadlines. Learn the tables below and you have most of the chapter.

1. The three mandatory documents

Document	What it covers	Update cycle
SID (Scheme Information Document)	One scheme: type, objective, asset allocation, strategy, risk factors, fundamental attributes, benchmark, fund managers, plans and options, loads, fees	Within one month from the end of each half-year (data as at September and March)
SAI (Statement of Additional Information)	The whole mutual fund: sponsor, AMC, trustee, service providers, how to apply, unitholder rights, valuation norms, tax and legal points (nomination, transmission, minors, pledge), grievances. One SAI serves all schemes	Within 3 months of every financial year end; material changes on an ongoing basis
KIM (Key Information Memorandum)	Summary of SID and SAI; must accompany every application form	At least once every half-year, within one month of the half-year end

Legally the SAI is part of the SID; in practice they are separate documents.
Both follow a SEBI-prescribed format. SEBI vets them (gives observations) but does not approve them or certify their accuracy.
Drafts are public on SEBI's website; final documents are hosted on AMFI's website and the fund's own site. Investors may ask for a printed SAI.
Caveat emptor: by signing the form the investor accepts the offer and is presumed to have read the documents.
Addenda carry interim changes, form part of the documents and must be attached to the KIM.

2. Fundamental attributes and how they change

Fundamental attributes are the type of scheme, the investment objective (with indicative asset allocation), and the terms of issue (liquidity provisions, aggregate fees and expenses, any guarantee). Under the SEBI (Mutual Funds) Regulations, 2026, they cannot be changed unless:

each unitholder receives written communication (email or SMS allowed);
the details are shown on the AMC's website; and
unitholders get an option to exit at the prevailing NAV without exit load.

The addendum is issued immediately, the SID is revised after the exit window (not less than 30 days from the notice date), and a public notice appears in an English national daily and a regional-language paper of the fund's head-office region. A change of fund manager is not a fundamental attribute.

3. Ongoing disclosures and deadlines

Disclosure	Rule
NAV	Every business day on the AMC and AMFI websites. Liquid and overnight funds also on Sundays and holidays; close-ended schemes at least weekly
TER	Daily, scheme-wise. TER = Base Expense Ratio + brokerage + transaction cost + statutory levies (incl. GST). Any BER change needs email/SMS notice at least 3 working days before. Expense items above 10% of total are disclosed separately. The direct plan's BER must be lower
Portfolio	Monthly and half-yearly, with ISIN, within 10 days. Debt schemes also fortnightly, within 5 days, with yields. SIFs: every alternate month
Half-yearly results	Unaudited results within one month of 31 March and 30 September
Annual report	Emailed (or abridged summary) within four months of 31 March; advertised in two all-India dailies (English and Hindi)
Dashboard	Scheme performance dashboard on the AMC website for easy comparison

Current value of a holding = units × current NAV.

4. Risk-o-meter and Risk-Band

Six levels: Low, Low to Moderate, Moderate, Moderately High, High, Very High. It shows risk to the principal.
Evaluated monthly; changes go out by notice-cum-addendum and email/SMS. The scheme's and benchmark's risk-o-meters are shown alongside performance.
Commodity risk value depends on annualised volatility: <10% → 3, 10–15% → 4, 15–20% → 5, >20% → 6.
SIFs use a five-level Risk-Band, disclosed within 10 days of month end.
The risk-o-meter is a first step, not the only basis for a decision.

5. The fund factsheet (non-mandatory)

The monthly factsheet is not a regulatory requirement. It is an AMFI best practice that every fund follows voluntarily. It shows AUM, NAV, benchmark, performance (including SIP returns), portfolio and sector allocation, and risk measures (P/E, beta, standard deviation, Sharpe for equity; rating profile, average maturity and duration for debt). Funds may use derivatives only for hedging, not for open positions.

Summary written by BullWiser from the NISM Series V-A workbook (March 2026 edition), Chapter 5. Always refer to the current NISM workbook before your exam.

Multiple Choice Questions (45)

Q1 MCQ EasyScheme related documents

Which documents together make up the 'scheme related documents' that investors are told to read before investing?

AScheme Information Document (SID), Statement of Additional Information (SAI) and Key Information Memorandum (KIM)

BSEBI registration certificate and AMFI ARN card

CTrust deed and AMC balance sheet

DFund factsheet and annual report only

Q2 MCQ MediumCaveat emptor

An investor later claims they did not know about a risk that was disclosed in the SID. Why is this claim weak?

AThe distributor is always liable instead

BInvestments follow caveat emptor: the investor is presumed to have read the documents before investing

CSEBI guarantees all disclosed risks

DThe SID is a confidential document

Q3 MCQ EasySID vs SAI

Which document carries statutory information about the mutual fund and AMC, and applies to all schemes of that fund?

AKey Information Memorandum (KIM)

BFund factsheet

CScheme Information Document (SID)

DStatement of Additional Information (SAI)

Q4 MCQ MediumSEBI's role

What is SEBI's role with respect to a scheme's offer documents?

ASEBI approves and certifies the accuracy of every SID

BSEBI has no role in offer documents

CSEBI gives observations, which must be incorporated; it does not approve or disapprove the documents

DSEBI drafts the SID for the AMC

Q5 MCQ MediumDocument formats

Who prescribes the format in which the SID and SAI must be prepared?

AThe Registrar and Transfer Agent

BThe AMC's board

CSEBI

DAMFI

Q6 MCQ MediumWhere documents are hosted

Where are the final scheme documents (after SEBI's observations) required to be hosted?

AOnly with the distributor

BOnly at the AMC's head office

COnly on the stock exchange website

DOn AMFI's website, and every mutual fund also offers them for download on its own website

Q7 MCQ MediumSID cover page

Which of the following appears on the cover page of an SID?

AThe list of distributors' commissions

BThe scheme's type and structure, the face value of units and the NFO dates

CThe fund manager's personal portfolio

DThe investor's PAN details

Q8 MCQ EasyDue diligence

Which entity issues the Due Diligence Certificate filed with the SID?

AThe Asset Management Company (AMC)

BThe custodian

CAMFI

DSEBI

Q9 MCQ MediumSID contents

In which part of the SID would an investor find the scheme's asset allocation pattern and investment strategy?

ADue Diligence Certificate

BInformation about the scheme

CRights of unitholders

DPenalties and litigation

Q10 MCQ MediumRisk factors

Which is an example of a scheme-specific risk factor rather than a standard risk factor?

AThe possibility that the NAV may go up or down

BThe fact that past performance does not guarantee future returns

CCredit risk on the fixed income securities the scheme buys

DThat there are no assured returns in the scheme

Q11 MCQ EasyBuying units

When can an investor buy units of a close-ended scheme directly from the mutual fund?

AOnly after the scheme matures

BOnly during the specified transaction periods

COn any business day at NAV

DOnly during the NFO

Q12 MCQ MediumInterval schemes

When can an investor buy units directly from the mutual fund in an interval scheme?

ADuring the NFO and during the specified transaction periods

BOnly during the NFO

COnly on the stock exchange

DOn every business day

Q13 MCQ MediumHow to apply

Which documents must be read together to get complete information on how to apply for units?

AThe KIM and the factsheet

BThe risk-o-meter and the dashboard

CThe annual report and the trust deed

DThe SAI and the SID

Q14 MCQ EasyFundamental attributes

Which of the following is a fundamental attribute of a scheme?

AIts investment objective

BThe number of its distributors

CThe colour of its risk-o-meter

DThe name of its fund manager

Q15 MCQ MediumFundamental attributes

Which of these falls under 'terms of issue', a fundamental attribute of a scheme?

AThe benchmark's colour code

BLiquidity provisions such as listing, repurchase and redemption

CThe fund manager's qualifications

DThe AMC's office address

Q16 MCQ HardChange in fundamental attributes

Before changing a scheme's fundamental attributes, which of the following must happen under the SEBI (Mutual Funds) Regulations, 2026?

AUnitholders must be paid a bonus

BOnly the trustees must pass a resolution

CEach unitholder gets written communication and an option to exit at the prevailing NAV without exit load

DOnly SEBI's approval is needed

Q17 MCQ HardChange in fundamental attributes

After a change in fundamental attributes is announced, when must the SID be revised?

ABefore the notice is sent

BImmediately after the exit option period ends, which is not less than 30 days from the notice date

COnly at the next half-yearly update

DWithin one year

Q18 MCQ MediumAddendum

How are interim changes to the SID, SAI and KIM communicated between regular updates?

AThrough an addendum, which forms part of the scheme documents and must accompany the KIM

BThey cannot be changed between updates

CThrough the monthly factsheet only

DThrough a press release only

Q19 MCQ HardSID updation

After the first update, how often must the SID of an open-ended scheme be updated?

AOnce every two years

BEvery month

CWithin one month from the end of each half-year, based on data as at end-September and end-March

DOnly when the fund manager changes

Q20 MCQ MediumSAI updation

By when must the SAI be regularly updated?

AEvery month

BEvery five years

COnly once at launch

DWithin 3 months from the end of every financial year, with material changes updated on an ongoing basis

Q21 MCQ EasyKIM updation

How often must the KIM be updated?

AAt least once a year

BAt least once a month

CNever after it is first issued

DAt least once in each half-year, within one month from the end of the half-year

Q22 MCQ EasyKIM

Why is a KIM circulated with every application form?

AIt is required only for NRIs

BIt replaces the SID legally

CIt is a summary of the SID and SAI, and distributing the full documents with every form would be too costly

DIt contains the investor's account statement

Q23 MCQ MediumKIM contents

Which of the following is included in the KIM?

AScheme and benchmark performance over 1, 3 and 5 years and since inception

BEvery holding's purchase price

CThe AMC's full audited accounts

DThe trustees' personal tax returns

Q24 MCQ MediumSAI contents

Which information is found in the SAI rather than the SID?

AThe scheme's asset allocation pattern

BDetails of the sponsor, AMC, trustee company and service providers such as the custodian and RTA

CThe scheme's investment objective

DThe scheme's benchmark

Q25 MCQ HardSAI contents

Which topic does the 'Tax, Legal & General Information' section of the SAI cover?

AThe fund manager's stock picks

BThe distributor's commission rates

CNomination, transfer and transmission of units, investment by minors and pledge of units

DThe scheme's daily NAV

Q26 MCQ EasySAI access

Can an investor ask for a printed copy of the SAI?

AYes, investors have a right to ask for a printed copy

BNo, it is available only to SEBI

COnly NRIs can ask for it

DNo, it is available only to distributors

Q27 MCQ EasyNAV disclosure

How often must an open-ended scheme's NAV be disclosed?

AOnce a week

BAt the end of every business day, on the AMC's and AMFI's websites

COnce a month

DOnly when the investor asks

Q28 MCQ MediumNAV disclosure

Which schemes declare NAV even on Sundays and holidays?

AEquity funds

BClose-ended schemes

CELSS funds

DLiquid and overnight funds

Q29 MCQ EasyCurrent value

An investor holds 1,200 units and the current NAV is ₹25. What is the current value of the holding?

A₹3,000

B₹30,000

C₹1,225

D₹48,000

Q30 MCQ MediumTER disclosure

What is the formula for TER used in the mandated disclosure format?

AManagement fee only

BExit load + entry load

CBase Expense Ratio + brokerage cost + transaction cost for executing trades + statutory levies (including GST)

DBase Expense Ratio minus statutory levies

Q31 MCQ HardTER disclosure

If an AMC changes a scheme's Base Expense Ratio, how much notice must investors get?

AAt least three working days before the change, by email or SMS

BWithin a week after the change

CNo notice is needed

DAt least 30 days before the change

Q32 MCQ HardTER disclosure

Which expense items must be separately disclosed in a scheme's accounts?

ANo item needs separate disclosure

BOnly the fund manager's salary

CEvery expense above ₹1 lakh

DEach item of expenditure accounting for more than 10% of total expenditure

Q33 MCQ MediumDirect plan

How must a direct plan's Base Expense Ratio compare with the regular plan's?

ALower, as it excludes distribution expenses and commission

BIt has no expense ratio at all

CExactly the same

DHigher, because of direct servicing costs

Q34 MCQ MediumPerformance dashboard

What is the purpose of the scheme performance dashboard each AMC must publish?

ATo show each investor's personal holdings

BTo list distributors' commissions

CTo replace the SID

DTo let investors compare how the fund's schemes have performed over different holding periods

Q35 MCQ EasyRisk-o-meter

How many levels of risk does the mutual fund risk-o-meter have?

AFive

BFour

CSix

DThree

Q36 MCQ MediumRisk-o-meter

How often must a scheme's risk-o-meter be evaluated?

AOnly at the NFO

BMonthly

CAnnually

DQuarterly

Q37 MCQ HardRisk-o-meter

For a commodity whose price has annualised volatility of 12%, which risk value applies?

A3 (Moderate)

B6 (Very High)

C5 (High)

D4 (Moderately High)

Q38 MCQ MediumSIF risk band

How is risk shown for Specialised Investment Funds (SIFs)?

ASIFs do not disclose risk

BThrough the standard six-level risk-o-meter

CThrough a Risk-Band with five levels

DThrough a star rating

Q39 MCQ HardPortfolio disclosure

Within how many days must a mutual fund disclose its month-end portfolio on its and AMFI's websites?

A10 days from the close of the month

B5 days

C45 days

D30 days

Q40 MCQ MediumPortfolio disclosure

How often must debt schemes disclose their portfolio?

AOnly annually

BFortnightly, within 5 days of every fortnight

COnly half-yearly

DDaily

Q41 MCQ MediumFinancial results

Within what time must a mutual fund host the unaudited half-yearly financial results of its schemes?

AOnly once a year

BWithin one month from the close of each half-year ending 31 March and 30 September

CWithin 6 months

DWithin one week

Q42 MCQ HardAnnual report

By when must the annual report or abridged summary be emailed to investors who have registered their email?

AWithin six months

BWithin one month

CWithin four months from the end of the financial year

DWithin one year

Q43 MCQ EasyFund factsheet

Is publishing a monthly fund factsheet a regulatory requirement?

AIt is required only for equity funds

BYes, it must be filed with RBI

CYes, SEBI mandates it under the Regulations

DNo, it is a voluntary market practice that is part of AMFI's best practices

Q44 MCQ MediumFund factsheet

Which of these would you typically find in a fund factsheet for a debt scheme?

AThe rating profile, average maturity and duration of the portfolio

BThe AMC's capital history

CThe trustees' minutes

DThe investor's folio balance

Q45 MCQ HardDerivatives in factsheet

What does the workbook say about mutual funds' use of derivatives, as disclosed in factsheets?

AFunds cannot use derivatives at all

BFunds can take unlimited open positions

CFunds can use derivatives for hedging but cannot take open derivative positions

DOnly debt funds may use derivatives

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About this content: These practice questions are based on the NISM-Series-VA: Mutual Fund Distributors Certification Examination Workbook published by the National Institute of Securities Markets (NISM), Mumbai. NISM is a SEBI-established institution. Questions cover Scheme Related Information with verified answers and explanations. BullWiser is an independent exam preparation platform — not affiliated with NISM, SEBI or AMFI. Last updated: July 9, 2026.

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