Offer Document — SID, SAI & KIM Explained
A scheme's offer document has two parts, the Scheme Information Document (SID) and the Statement of Additional Information (SAI); the Key Information Memorandum (KIM) is a separate summary. This lesson covers what each holds, how a draft reaches launch and how the documents are kept current.
Why offer documents exist
An investor in a mutual fund scheme hands money to a manager without choosing the securities that are bought. The offer document is the fund house's written statement of what the scheme sets out to do, what it may invest in, what it costs and what can go wrong.
The offer document is two documents read together: the Scheme Information Document and the Statement of Additional Information.
Three documents, three jobs
The SID deals with one scheme. It sets out the investment objective, asset allocation, risk factors, loads, expenses and benchmark.
The SAI deals with the mutual fund itself. It carries the statutory information about the sponsor, the trustees and the asset management company (AMC).
The KIM is a short summary of the scheme that accompanies the application form. It is not part of the offer document, and it does not replace the SID and the SAI.
From draft to launch
A new scheme starts with a draft SID filed with SEBI, which gives its observations within 21 working days. The draft is then put up for public comment for at least 8 working days.
The final SID and KIM are filed at least 2 working days before launch, and the scheme may be launched within 6 months of SEBI's final observations. Those observations are not an approval or endorsement of the scheme. Older wording that the document is filed 21 days before the new fund offer is superseded.
Keeping the documents current
The SID of an open-ended or interval scheme is updated half-yearly, within 2 months of the end of September and March, and the KIM follows the same cycle. The SAI is updated once a year, within 3 months of the financial year-end.
A change made in between, such as a revised exit load, is issued as an addendum. A change in a fundamental attribute goes further: each unitholder gets written notice and at least 30 calendar days to exit with no exit load. There is no unitholder vote on it.
Rules at a glance
Which document answers which question (illustrative)
Farida, 41, a pharmacist in Kochi, is reading about an open-ended hybrid scheme. She wants to know the exit load and how much of the portfolio can be in equity. Those are scheme matters, so the answers are in the SID and, in brief, in the KIM.
She also wants to know who the trustees and the sponsor are. That is statutory information about the mutual fund, so it is in the SAI. An addendum issued after the last update records a change in the exit load; it is read with the SID until the next update.
Update deadlines through one year (illustrative)
- Half-year ending 30 September: the SID and KIM of an open-ended scheme are updated within 2 months, that is, by 30 November.
- Half-year ending 31 March: the SID and KIM are updated within 2 months, that is, by 31 May.
- Financial year ending 31 March: the SAI is updated within 3 months, that is, by 30 June.
Result. In a year the SID and KIM are updated twice and the SAI once; anything that changes in between is carried by an addendum.
Key points
- Offer document = SID + SAI; the KIM is a separate summary that goes with the application form.
- The SID covers one scheme; the SAI covers the mutual fund, its sponsor, trustees and AMC.
- SEBI gives its observations on a draft SID within 21 working days; public comment runs for at least 8 working days.
- The final SID and KIM are filed at least 2 working days before launch, and launch is within 6 months of SEBI's final observations.
- The SID and KIM are updated half-yearly and the SAI yearly; changes in between are issued as an addendum.
Common misunderstandings
- The KIM is not part of the offer document: the offer document is the SID plus the SAI.
- SEBI's observations on a draft are not an approval: SEBI does not approve or endorse a scheme.
- The SID is not updated once a year: it is updated half-yearly, and the yearly cycle belongs to the SAI.
Questions people ask
What is an addendum?
A notice of a change made between two scheduled updates. It is read with the document until the change is carried into the next update.
Does the SAI describe a particular scheme?
It carries statutory information about the mutual fund as a whole, its sponsor, trustees and AMC. Scheme details are in that scheme's SID and KIM.
How soon after SEBI's observations is a scheme launched?
Within 6 months of SEBI's final observations.
What this lesson relies on
- SEBI (Mutual Funds) Regulations, 2026 — provisions on offer documents and fundamental attributes
- SEBI Master Circular for Mutual Funds (20 March 2026) — filing, public comment and updating of the SID, SAI and KIM
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.