Key Information Memorandum — What to Check
The Key Information Memorandum (KIM) is the short, standard-format summary of a scheme that accompanies every application form. This lesson explains what it contains, what it leaves out and how it relates to the offer document.
What the KIM is
A scheme's full terms are set out at length in its Scheme Information Document (SID). The KIM puts the essentials in front of the investor at the point of investing: it is a short summary of the scheme, in a format SEBI prescribes, and it accompanies every application form.
Because the format is prescribed, the same items appear for every scheme, which makes two schemes easier to compare. The requirement does not depend on whether the investor picks a direct plan or a regular plan.
What it contains
The KIM states the scheme's investment objective and asset allocation, its riskometer level, its benchmark, the loads and expenses, the minimum investment and the fund manager. It also shows the scheme's past performance against its benchmark.
Two of these items need care. The riskometer has six levels, from Low to Very High, and is reviewed every month from the scheme's actual portfolio, so the current level can differ from the one printed. The performance figures are history: past performance is no guide to future results, and market risk remains.
What it is not
The KIM is not part of the offer document. The offer document is the SID together with the Statement of Additional Information (SAI), and the KIM does not replace either.
It summarises the scheme, not the fund house. Statutory information about the sponsor, the trustees and the asset management company (AMC) is set out in the SAI, and detailed financial statements of the AMC are not part of a KIM.
How it stays current
The KIM is updated within 2 months of the end of each half-year, on the same cycle as the SID: by the end of November for the half-year ending September and by the end of May for the half-year ending March.
A change made in between, such as a revised exit load, is issued as an addendum that is read with the KIM until the next update. For a new scheme, the final SID and KIM are filed at least 2 working days before launch.
Rules at a glance
Reading a KIM before signing (illustrative)
Arjun, 29, an engineer in Nagpur, has an application form for an open-ended equity scheme with the KIM attached. He notes that the riskometer level is Very High, sees which benchmark the performance is shown against, and reads that an exit load applies to early redemptions.
With the KIM is an addendum issued after its last update, which revises the exit load. The addendum, not the older figure in the KIM, gives the load that applies now. Nothing in the KIM says what the scheme is going to earn; the performance table only shows the past.
Key points
- The KIM is a short summary of a scheme in a format prescribed by SEBI, and it accompanies every application form.
- It covers the objective, asset allocation, riskometer level, benchmark, loads, expenses, minimum investment, fund manager and past performance against the benchmark.
- It is not part of the offer document, which is the SID plus the SAI, and does not replace them.
- It is updated within 2 months of the end of each half-year; changes in between are issued as an addendum.
- AMFI's code of conduct says distributors should endeavour to be fully conversant with the SID, SAI and KIM and should explain a scheme's key features and risks.
Common misunderstandings
- The KIM is not the offer document: it summarises the scheme, while the offer document is the SID plus the SAI.
- A KIM is not only for regular plans: it accompanies every application form, whichever plan is chosen.
- The performance shown is not a forecast: past performance is no guide to future results.
- The KIM does not carry the AMC's detailed financial statements: statutory information about the fund house is in the SAI.
Questions people ask
Who decides what a KIM looks like?
SEBI. The KIM follows a prescribed format, so the same items appear for every scheme.
Where are the details that the KIM leaves out?
Scheme details, including the full risk factors, are in the SID. Statutory information about the mutual fund, its sponsor, trustees and AMC is in the SAI.
What if a term changes soon after a KIM is updated?
The change is issued as an addendum, which is read with the KIM until the next half-yearly update.
What this lesson relies on
- SEBI (Mutual Funds) Regulations, 2026 — provisions on offer documents
- SEBI Master Circular for Mutual Funds (20 March 2026) — format and updating of the Key Information Memorandum
- AMFI code of conduct for mutual fund distributors (AMFI Master Circular for Mutual Fund Distributors)
This lesson was reviewed independently against these sources on 8 October 2026. Rules change: check the current regulation, scheme document or policy wording before relying on any figure. This is education, not advice.