Finance terms
What is KIM? How does it differ from an offer document?
KIM is a key information memorandum. It is a summary of scheme information document and statement of additional information which are two important parts of an offer document.
What gets covered in a KIM is basic things like the name of the AMC, the name of the fund manager, plans and options under the scheme, the performance of the scheme vis-à-vis its benchmark etc.
What is an offer document? It is one of the most important documents as far as the scheme is concerned. So, whenever a fund house comes out with a new fund they have to come out with an offer document as well which has to be approved by the trustees and vetted by Sebi.
Offer document has two major parts. It is a scheme information document and statement of additional information. Major things covered in the offer document are things like investment objectives, investment strategies of the fund, market view etc. It is the most important document. Investor needs to read the offer document before taking a decision to invest into the particular fund.
