How to read your mutual fund statement

In recent years India’s mutual fund industry has grown at an annualised rate of 12.5%. MFs are a part of every individual’s portfolio. Due to digitisation in the industry, it has now become easier to access to the investments made by the investor. This information comes in form of an MF statement. Let us see how to read one.

An MF statement is like our bank account statement, which gives you a complete summary of your investments.It includes the following:

Personal details – An MF statement will have your personal details such as name, address, PAN, email ID, mobile number and nominee/investor details. If there is an additional MF account holder it will show all details of the other holders as well.

Investment details – In this statement you will find the name of the investment scheme, the category whether a growth or dividend plan, number of units you hold, NAV, current value, cost of investment and dividend earned.

NAV – Net Asset Value (NAV) denotes the performance of a particular scheme of a MF. NAV is the market value of the securities held by the scheme.

Bank account and broker details – The statement will also have your bank account details. This is the account in which the money will go on redemption of the mutual fund. It will also have details of the broker or advisor from whom you have purchased the MF.

Consolidated Account Statement

Consolidated Account Statement (CAS) is a single/combined account statement which gives details of financial transactions made by an investor during a month across all MFs and also other securities held in dematerialised (demat) mode. CAS is generated on a monthly basis in respect of the PANs common to the RTAs and depositories.

It carries information of your sales, purchases and other transactions in mutual funds. This also allows you to track the MF performance without hunting on your old files.

How is CAS created/ calculated?

Depositories like NSDL or CDSL dispatche or generate CAS to investors, in respect of the PANs that are common across RTAs and depositories. The AMCs compute CAS on the basis of transactions and holdings of an investor’s demat account held by NSDL and CDSL. A demat account holds all the shares that you buy in dematerialised or electronic form. Just like your bank account holds cash, a demat account holds the certificates of your financial instruments such as shares, bonds, government securities, mutual funds and exchange traded funds (ETFs).

In respect of MF folios where there is no common PAN between the RTAs and the depositories, the CAS only contains mutual fund transactions.

Contents of a MF statement

A CAS includes following information about an MF and AMCs:

Purchases made by you and transaction-related information like merging or switching of funds, payment of bonus and dividends. Information regarding reinvestment options or New Fund Offer (NFO)Kinds of investment – whether lump sum or a Systematic Investment Plan, Systematic Withdrawal Plan or Systematic Transfer PlanClosing and opening share unit portfolio balanceMode of holding unitsISIN and UCC for each scheme and portfolio

The (ISIN) International Securities Identification Number is a 12-character alphanumeric code used for trading and settlement purpose. It also identifies equity, debt or other securities.Importance of CAS

• a. It helps to understand the ‘health’ of the company
• b. Reduces additional paperwork
• c. Keeps investors informed