How do the Scheme Information Document (SID) and the Statement of Additional Information (SAI) differ in their structural scope and applicability?

[ A ]SID contains only distributor contact numbers, while SAI is an optional marketing brochure issued every month.

[ B ]SID is prepared exclusively by the Custodian, whereas SAI is drafted by the stock exchange clearing corporation.

[ C ]SID applies to all mutual funds in India simultaneously, while SAI applies only to foreign institutional investors.

[ D ]SID contains scheme-specific details such as investment objective, asset allocation, and fees, whereas SAI contains common statutory information about the mutual fund and its constituents applicable across all schemes.[ CORRECT ]

Takeaway

Option D is correct: SID contains scheme-specific details such as investment objective, asset allocation, and fees, whereas SAI contains common statutory information about the mutual fund and its constituents applicable across all schemes.

Derivation

The Scheme Information Document (SID) details specific features of a particular scheme, including its investment objective, asset allocation pattern, investment strategy, risk factors, fees, and unitholder rights. In contrast, the Statement of Additional Information (SAI) contains statutory and corporate information about the Mutual Fund, Sponsor, AMC, Trustees, and service providers, serving as a common reference across all schemes of that fund. This tests document architecture. A common error is confusing scheme-specific disclosures with common fund-level statutory disclosures.

Why the others fail

A — SID contains only distributor contact numbers, while SAI is an optional marketing brochure issued every month.

SID is a mandatory statutory offer document detailing scheme fundamentals, not merely a directory of distributor contact numbers.

B — SID is prepared exclusively by the Custodian, whereas SAI is drafted by the stock exchange clearing corporation.

Both SID and SAI are prepared by the AMC and approved by the Trustees, not drafted by custodians or clearing corporations.

C — SID applies to all mutual funds in India simultaneously, while SAI applies only to foreign institutional investors.

SID is scheme-specific for a particular fund house, while SAI contains common statutory data for that specific AMC's schemes.