Half-yearly unaudited financial results of a mutual fund scheme

Half-yearly unaudited financial results for mutual fund schemes are condensed financial statements mandated by SEBI that AMCs must publish for each scheme for the half-year periods ending 30 September and 31 March. Unlike the scheme’s annual report, which contains fully audited financials, the half-yearly results are unaudited (reviewed but not audited) and are published in a shorter format. They are one of the key periodic financial disclosures through which mutual fund investors can assess the financial health of their schemes between annual audit cycles.

Regulatory basis

Regulation 56 of the SEBI (Mutual Funds) Regulations, 1996 requires AMCs to publish half-yearly unaudited financial results for each scheme. SEBI circular SEBI/IMD/CIR No. 8/132968/2008 and subsequent amendments prescribe the format and timelines. The results must be published within two months of the end of each half-year.

SEBI also requires that the half-yearly results be published in at least one English daily national newspaper and one regional language newspaper in the state where the AMC is registered. Publication on the AMC’s website is mandatory in addition to newspaper publication.

Contents of the half-yearly financial results

The half-yearly unaudited results follow a prescribed format that includes:

Revenue account (income and expenditure)

For the six-month period:

• Income: dividend income (on equity holdings), interest income (on debt holdings), realised gain/loss on securities (if applicable), unrealised gain/loss (marked-to-market change in portfolio value)
• Expenditure: management fees (expense ratio charged), trustee fees, custodian fees, registrar fees, legal and audit fees, marketing and distribution expenses
• Net surplus/deficit for the half-year

Balance sheet (statement of assets and liabilities)

As of the half-year end:

• Assets: investments at market value, receivables (dividends, interest accrued), cash and bank balances, other assets
• Liabilities: payables (redemption proceeds, expenses), outstanding subscriptions
• Net assets (unit capital + reserves + undistributed income)
• Net assets per unit (equivalent to NAV as of the half-year end)

Notes to accounts

Key accounting policies, related-party transactions (such as investments by the AMC or sponsor in the scheme), any overdue obligations, and significant post-balance-sheet events.

Key differences from the annual audited report

Use cases for investors

• Expense ratio monitoring: Investors verify whether the effective expense ratio (as shown in the expenditure section) matches the disclosed TER in the factsheet.
• Income tracking: For IDCW (dividend) schemes, the income and dividend distribution sections confirm the source and quantum of distributions made.
• Fund viability check: Very small schemes may show disproportionately high expense ratios and minimal income; the half-yearly results make this visible.
• Related-party transaction disclosure: Investors can identify if the sponsor or AMC has been parking money in the scheme, which may distort the scheme’s AUM and performance metrics.

Where to find half-yearly results

Half-yearly unaudited results are published:

• On the AMC’s website, usually under “Investor Relations” or “Regulatory Disclosures”
• On AMFI’s website
• In national and regional newspapers as SEBI-mandated statutory notices

See also

• Annual report of MF scheme
• Half-yearly portfolio statement
• AMFI scheme factsheet
• SEBI half-yearly trustee report
• Mutual fund
• SEBI

References

1. SEBI (Mutual Funds) Regulations, 1996, Regulation 56.
2. SEBI circular SEBI/IMD/CIR No. 8/132968/2008 – Half-yearly financial results format.
3. AMFI guidelines on half-yearly financial disclosures (current edition).