Statement of Accounts
Also written Statement of Account · SoA · Account statement
The registrar's proof of investment for a mutual fund folio, showing amount, price and units for each transaction and, from the second one, the balance units and their current value.
In plain language
A Statement of Accounts is the mutual fund investor's proof of investment. Units in a non-demat folio exist only as entries in the registrar's records, and the SoA is the document that tells the investor what those entries say.
The RTA dispatches SoAs on behalf of the mutual fund whenever there is a transaction in a folio. The first one, after a fresh purchase, shows the amount, price and units. Every later statement shows those details for the new transaction and also the balance units in the folio and their current market value.
It is also the document the Consolidated Account Statement builds on. A CAS pulls every folio across every fund house together by PAN; an SoA speaks for one folio at one AMC.
How it works
The dispatch timelines are the examinable part:
| Trigger | Statement due |
|---|---|
| Any transaction (NFO or ongoing, other than systematic) | Within 5 working days of the transaction |
| NFO | Within 5 working days of the NFO closure |
| Initial SIP, STP or SWP transaction | Within 10 working days |
| Ongoing systematic transactions | Quarterly, within 10 working days of the quarter ending March, June, September and December (section 14.4.1) — or as part of the CAS (Table 14.1) |
| Specific request from the investor | Within 5 working days, without any charge |
| Transaction in a month | Monthly SoA |
| No transaction in a six-month period | Annual SoA with the latest closing balance |
Where the investor has so mandated, a soft copy goes to the registered e-mail address instead of a physical statement.
Most AMCs print a transaction slip as a counterfoil to the statement, with the folio number pre-filled, so the investor's next instruction arrives already identified. Where stamp duty applies to a purchase, the RTA shows the stamp duty amount separately in the account statement.
A statement is not the same as a unit certificate, which is issued within 5 working days of a request for one.
A worked example
Illustrative numbers, ignoring stamp duty for clarity.
3 June. Mr Joshi makes a fresh purchase of Rs 1,00,000 in an equity scheme at NAV Rs 25.00. The RTA allots 4,000 units. His first SoA, due within 5 working days, shows three things: amount Rs 1,00,000, price Rs 25.00, units 4,000.000.
18 June. He makes an additional purchase of Rs 50,000 using the transaction slip from that statement. NAV is Rs 25.50:
Units allotted = 50,000 ÷ 25.50 = 1,960.784
The second SoA shows that transaction and, now, the folio position:
| Balance units | 4,000.000 + 1,960.784 = 5,960.784 |
| Market value at Rs 25.50 | Rs 1,52,000.00 |
1 July. He starts a monthly SIP. The SoA for that first instalment is due within 10 working days, not 5. Later instalments do not each generate a separate 5-day statement.
Next January. Mr Joshi has made no transaction since July. Because six months passed without one, he is due an annual statement with his closing balance rather than a monthly one — though he can ask for one at any time and must receive it within 5 working days, free of charge.
Why NISM asks about it
Chapter 14 (Financial Transactions) covers the SoA in section 14.4.1 and repeats its timelines in the turnaround table, next to the CAS in section 14.4.2. Chapter 6 lists providing statements of account to distributors and investors among the tasks of an ISC, and Chapter 11 requires the stamp duty to be shown separately in the statement. Expect questions on the 5 and 10 working-day windows, and on what the first statement shows compared with later ones.
Common exam traps
- The first SoA shows amount, price and units only. Balance units and market value appear from subsequent transactions.
- Five working days for ordinary transactions; ten for the initial systematic transaction. Do not swap them.
- NFO statements run from NFO closure, not from the date of application.
- A statement on request is free and due within 5 working days.
- The workbook gives two treatments of ongoing systematic transactions. Section 14.4.1 describes quarterly SoAs within 10 working days of each quarter end; the turnaround table says ongoing SIP, STP and SWP transactions will be part of the CAS. Know both, and cite the table if asked for the TAT.
- An SoA is per folio; a CAS is per PAN across mutual funds.
- An SoA is not a unit certificate. The certificate is a separate document issued on request.
Check yourself
1.What are the dispatch timelines for Statements of Account?
- a)Always annually
- b)Not later than 5 working days from a transaction and within 5 working days of NFO closure; monthly where there is a transaction that month; annually where there is none in six months; quarterly within 10 working days for systematic transactions with the first within 10 working days of the initial transaction; and within 5 working days without charge on specific request
- c)Only when the investor asks
- d)Only by physical post
Show the answer
Answer: (b) Not later than 5 working days from a transaction and within 5 working days of NFO closure; monthly where there is a transaction that month; annually where there is none in six months; quarterly within 10 working days for systematic transactions with the first within 10 working days of the initial transaction; and within 5 working days without charge on specific request
As per SEBI regulations, the dispatch date should not be later than 5 working days from the date of the transaction. In case of NFOs, the SoA has to be sent within 5 working days of closure of NFO/ or from the date of receipt of the request from the unit holders.
Statement of Accounts (SoA) is issued every month if there is a transaction in a folio during the month. If there are no transactions in a folio in a six month period, a SoA will be sent annually, giving the latest closing balance.
In case of systematic transactions, mutual funds dispatch the SoAs to the unit holders once every quarter ending March, June, September and December within 10 working days of the end of the respective quarter. The first SoA is, however, issued within 10 working days of the initial transaction.
Mutual funds also provide SoAs to unit holders within 5 working days, without any charges, if specific requests are received from the investors.
Which disposes of options A and C — dispatch is automatic on a transaction, and requests are an addition, not the trigger.
Option D is wrong on the medium. Alternately, soft-copy of the account statements is sent to the investors' registered e-mail address, instead of physical statement, if so mandated, and if so mandated, a soft copy of the SoA is sent through e-mail to the unit holders on a monthly basis.
What an SoA contains: Statement of Accounts (SoA) is a proof of investment for the investor. A SoA is sent when an investor makes a fresh purchase transaction. The amount, price, and units are shown. For subsequent transactions, apart from these details, the balance units in the folio and their current market value are also shown.
Who sends it: RTA on behalf of mutual funds, despatch SoAs to investors, whenever there is a transaction in a folio.
And for ongoing systematic transactions the turnaround table says simply — it will be part of CAS.
Where this is taught
Free preparation for NISM Series II-BRelated terms
- Consolidated Account StatementA single statement showing an investor's transactions and holdings across every scheme of every mutual fund in India, linked by PAN and issued monthly where there has been a transaction.
- Folio numberThe unique account number a fund house allots to an investor, under which the registrar holds that investor's units across every scheme of the fund, along with the bank mandate, address and signature.
- New Fund OfferThe period in which a mutual fund scheme's units are offered to the public for the first time, at a fixed NFO price rather than at NAV, and during which the registrar builds the scheme's first register of investors.
- Registrar and Transfer AgentThe SEBI-registered agency that keeps the investor records of a mutual fund — processing purchases and redemptions, updating folios and unit capital, and issuing account statements.
- Systematic Investment PlanA facility to invest a constant amount into a scheme at regular intervals, which buys more units when the NAV is low and fewer when it is high and so averages the cost of acquisition down.
- Transaction slipThe short form an existing investor uses instead of a full application — it carries the folio number, so the registrar can process a purchase, redemption, switch or profile change without re-keying the investor.
- IDeASInternet-based Demat Account Statement: NSDL's viewing facility, launched January 1, 2004, showing demat balances and transactions online, not real time, with a delay of at most 30 minutes.