Accounting

What your mutual fund SIP statement tells you

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Not everyone is eager to block a lump sum of investment in one go. If you are looking to invest in mutual funds through regular instalments, the Systematic Investment Plan (SIP) can be a way out for you.

Having chosen SIP as your preferred investment route, you must diligently review look into your SIP account statement. The statement is the detailed overview of your SIP holding provided by your fund house. It is crucial to understand the report and what to expect from it before making an informed SIP investment decision.

What are the contents of a SIP statement?

Your SIP statement contains the following information:

  • Personal details – Name, Address, Email ID etc.
  • Your folio number
  • Mode of holding the SIP – A single or joint investment?
  • Status of KYC – Know Your Customer details
  • Your nominee
  • ISIN – International Security Identification Number
  • UCC – Unique Client Code linked to your PAN card
  • Date of Investment
  • Amount of contribution
  • Net Asset Value (NAV) of the fund on the date of investment

What is the significance of these contents?

At first glance, the SIP statement reveals your contributions and the fund’s NAV. You can calculate the number of units you hold by dividing the amount by the NAV of the fund.

Number of Units = Amount of Contribution / NAV of the Fund

The statement also shows you the value of your entire SIP holding from the time you began investing.

Why should you review the statement?

Reviewing your statement is vital for two reasons:

  • Transactional purpose
  • Administrative purpose

Keep a close watch on the dates when your SIP money is debited from your account. Also, look into the amount and check if the amount mentioned is correct. Your SIP statement reveals the current status of your continuing investment, and all the details stated therein must be accurate.

Reviewing your statement holds value. This is because it helps keep track of your investment and further guides you in how to invest in SIP efficiently.

What you can do if you notice discrepancies

A contingency may arise where you realize that some details are incorrect or there is a missing record. In this case, you must approach the fund house or the respective Registrar and Transfer Agent (RTA) for the concerned correction to be made. Your statement will include the contact details of the fund house and its RTA.

Why you need to stay invested despite market volatility

If you notice fluctuations in your holdings throughout your statement, do not let panic sway over your judgment.

Staying invested can help realize your long-term mutual fund investment goals. The equity investments in your SIP are subject to market volatility. But it must not be forgotten that they are for the long term and if held for an extended duration, it can help meet your financial objectives.

Conclusion

Your SIP account statement is an opportunity to conduct a retrospective analysis of your mutual fund investment. It can help you forge ahead through your investment journey steadily. SIP, as a scheme of investment, imparts financial discipline, owing to its nature of regular investing. Remember, that a well thought out SIP investment outlook can bring you good yields in the long run.

About the author / 

Robert B. Wilfong

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