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What Are Yours Rights As A Mutual Fund Unit holder?

What Are Yours Rights As A Mutual Fund Unit holder?

As a unitholder in a Mutual Fund scheme coming under the SEBI (Mutual Funds) Regulations, ("Regulations") you are entitled to:

  1. Receive unit certificates or statements of accounts confirming your title within 6 weeks from the date of closure of the subscription or within 6 weeks from the date your request for a unit certificate is received by the Mutual Fund;
  2. Receive information about the investment policies, investment objectives, financial position and general affairs of the scheme;
  3. Receive dividend within 42 days of their declaration and receive the redemption or repurchase proceeds within 10 days from the date of redemption or repurchase;
  4. Vote in accordance with the Regulations to:
    1. Either approve or disapprove any change in the fundamental investment policies of the scheme which are likely to modify the scheme or affect your interest in the Mutual Fund; (as a dissenting unit holder, you would have a right to redeem your investments);
    2. Change the asset management company;
    3. Wind up the schemes.
  5. Inspect the documents of the Mutual Funds specified in the scheme's offer document. In addition to your rights, you can expect the following from Mutual Funds:
    1. To publish their NAV, in accordance with the regulations: daily, in case of most open ended schemes and periodically, in case of close-ended schemes;
    2. To disclose your schemes' portfolio holdings, expenses, policy on asset allocation, the Report of the Trustees on the operations of your schemes and their future outlook through periodic newsletters, half- yearly and annual accounts;
    3. To adhere to a Code of Ethics which require that investment decisions are taken in the best interests of the unit holders.

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