SID, KIM and SAI
The three documents, and keeping them current
Three documents, three jobs, and the exam loves to swap their names, so pin them down once. The SID, the Scheme Information Document, is the detailed guide to one scheme: its objective, asset allocation, risk factors, fees and load, plans and options, and how to transact. Beside it, the KIM, the Key Information Memorandum, is the short summary of the SID, and its defining feature is that it must accompany the application form, so it is the document most investors actually hold in their hands. The third, the SAI, the Statement of Additional Information, is different in scope: it carries the statutory and legal detail common to all of the fundβs schemes, so it is fund-wide, not scheme-specific.
The part the deeper questions test is that these documents are living. The SID and SAI are updated regularly, typically the SID at least once a year, and any change in between is made through an addendum that becomes part of the documents until the next full update. The KIM is likewise kept current so the version handed out with the form reflects the latest terms. In practice: read the SID to decide, glance at the KIM for the summary, and consult the SAI for the fund-wide legalities, and never quote yesterdayβs document when an addendum may have changed the terms.
- 1
Three documents describe a fund, and the exam tests which is which and what each holds.
- 2
The SID (Scheme Information Document) is the detailed guide to one scheme, its objective, asset allocation, risk factors, fees, load and how to transact.
- 3
The KIM (Key Information Memorandum) is the short summary of the SID that must accompany the application form.
- 4
The SAI (Statement of Additional Information) holds the statutory and legal detail common to all of the fund's schemes, so it is fund-wide, not scheme-specific.
- 5
The SID and SAI are updated regularly, typically the SID at least once a year, and any change in between is made through an addendum.
- 6
The KIM is also kept current so that the version given with the form reflects the latest terms.
- 7
Read the SID to decide, skim the KIM for a quick summary, and consult the SAI for the fund-wide legal detail.
An investor in a hurry reads the KIM stapled to the form, the two-minute version. Deciding seriously, they read the SID. A lawyer checking the trust's legal set-up turns to the SAI, which covers every scheme of the fund.
Practice
π₯ 0 streakReal exam format. Answer by voice, tap, or press 1 to 4. No negative marking, so always attempt.
The detailed document about a single scheme is the:
Which document must accompany the application form?
Statutory information common to all of a fund's schemes sits in the:
A change to scheme information between annual updates is made through:
Ask the coach
PremiumStuck on this topic? Premium members ask the AI coach and get an answer in simple language, on the spot. See premium
Education for the exam, not financial advice. Answers can be wrong, so confirm figures against the workbook.