Professional Documents
Culture Documents
Offer Document
Section 3
new Launches
AMC
Have to form
Detail of scheme
Are
prepared by
AMC
Sponsor
Offer document
Offer document in US Is called Prospectus
invites and
gives
investor
information
Offer document
Close end Fund prospectus
In
Is issued Once at the time Of issue Primary market
because
investor
Offer document
Open end Mutual fund the
can issued
and
at repurchased
valid
till amendment
as Every 2 years
Stated by SEBI
Is
Important source
of information
to
Prospective investor
And
gives to Which helps regarding Valid information
Scheme details
and
Make decisions
changed
approval
investor
Must study
Offer document
to
What he understand is
buying
Prospective investor
has
Investment decisions
To make
Investment vehicles
Must
read
and
Acquaint himself
through
With documents
conclusion
vet trustees
Offer document
before
issuing
because
SEBI
Not approved
To include
Historical statistics
Is usually distributed
with
Along with
Application form
Known as
conclusion
Lays
SEBI down format includes Other disclosures That are Considered material by Investors point trustees Standardized Offer document &
SEBI guidelines
Validity of offer document for new Fro the date of scheme receipt by AMC
of the letter containing observation from SEBI
Offer document
Launched for
Not Launched
request Within 6 months AMC To file fresh Offer document
3
Valid till
contains
conclusion
Offer document
needs To be renewed
when
Eg.
Reconstituting Of AMC
Adjudication proceed Referred by SEBI Against sponsors Imposing key personals Of he existing schemes
Change in management
&
Key Information memorandum
At least
1 year
Offer document
Should include
KIM
Have to be In form of
Subsequent years
of
Has to be
attached
with
addendum
Circulated to
send
brokers
distributors
Has
to
Display modifications
in
Offer documents a
Through
& advertisement
Press release
brokers distributors
gives
comprehensive
about Authentic information scheme
investor
Has to
obtain Copy of Offer document
and
study
from
Consise
version of
Offer document
obtained
banks
by
distributors
from
investors Distribution points like broker
)
Constitution of Mutual funds
Risk factors
Financial information
1.
Provides
Information about
Type of scheme
Name of AMC
Price of units
What it should be
And
Prospective investor
Statement
To the effect
Document is prepared
Filed with
SEBI
This is
It is the Investor
Investment risk
It is AMC
Legal responsibility
CONCLUSION
Investors perspective
Provides at a glance
Fundamental attributes
and
Define
The terms
Commonly used in
Offer document
Must make
Investor
aware
Regular investor
Back
By the investor
Back
On the basis of
Past performance
of
Is not indicative of
The use of
Derivative instrument
As permitted by SEBI
If assurance is
If assurance is For a specific period It must be stated That there is no guarantee for sustaining the assured return for the remaining duration of the scheme
Back
Compliance officer
Forwarded to
SEBIS Regulation
SEBI
are
That
and
That
Adequate to enable the investor Intermediaries named in the offer document Are registered With SEBI To make
back
5 Financial information
Expenses To be incurred by
Offer document
Must contain on
Expenses estimated
The scheme
For other scheme launched during the last one fiscal year
By AMC
Fund of funds
Incase of FOF
The offer document must disclose that in which FOF scheme makes investment .
The investor will have to bear the recurring expenses of the scheme
In addition to the expenses of Other scheme
Whether expenses foreseen will still give him an acceptable return on the scheme on offer
Back
6 Constitution of mutual fund The following information should be included in this section
Of the Brief description
Objectives of fund
constituents Functions and responsibilities of sponsor AMC Trustees custodian Activities of the sponsor Financial performance
And its
6 Constitution of mutual fund The following information should be included in this section
Names and addresses of Board of trustees
of
6 Constitution of mutual fund The following information should be included in this section
Summary of trust deed provision
Which
may be of
Trustship fees
Back
Are in line
is an important step
Asset
allocation pattern
Policy of diversification
Its
Policy should be
In the
To invest
if
Illiquid asset
Than
policy
Must be disclosed
Must be provided
For assured return schemes With respect to Meeting shortfalls in these scheme
Investment limitation
Asset allocation
diversification
To assess
Back
custodian
Offer document
distributor
Determine
Required by SEBI
Major disclosures
AND
assured return
AND
Opening, closing
3
allotment & dispatch Of certificate
Calendar
indicating
account statement
Option
Open-end scheme
Restriction on
Dispose of units
for
transfer
Procedure
and Transmission of unit
10
Gives information
concerning
A. Investment Procedure
Name and a address of collection bank & Investor servicing centre Accumulation plan, Dividend reinvestment plan
Investor
Should described
Nomination Facilities
B. Schemes Policy On
1) DIVIDENDS AND DISTRIBUTION decide to distribute surplus
Trustee
To Unit Holders
Rate
shall be final
Unit Holders
dispatch AMC
Dividend warrants
within
shall be
B. Schemes Policy On
2) INTER-SCHEME TRANSFERS done only if
2) INTER-SCHEME TRANSFERS
Nonperforming assets
by the Scheme
SEBI restricts
Underwriting obligation
Disclosure of units to associate companies Disclosure include Detail of sponsors their affiliates & associates. Policy for investing in associate companies of sponsor including aggregate market value of investment & % of aggregate NAV If scheme has invested more than 25% of its net assets in associates companies.
D. Borrowing Policy
Payment of interest
D. Borrowing Policy
as per Regulations duration of such borrowin g More than 20% shall not borrow of the net assets of the Scheme
The Fund
(Market or fair value of the scheme's investments + receivables + accrued income + other assets) (accrued expenses + payables + other liabilities and provisions)
No. of Units outstanding under the Scheme
NAV
Security
Fund invested
valuation norms
in calculation of NAV
Rs 5,000 In case the balance falls all remaining units will be automatically redeemed
Rs 5,000
Below
Investor
on a first-infirst-out basis
A transaction slip
to request a Redemption
requisite details
submitted at an ISC.
Redemptio n proceeds
Describe
Applicable to
Investors
Is subjected to
Tax
Or
Tax information
In offer document
General in Nature
sale of units
Residents
FIIs
NIL
NIL
NIL
NIL
NIL
NIL
10 per cent for specified overseas financial organisations 20 per cent for other foreign entities
NIL
NIL
NIL
NIL
30 per cent for non-corporate FIIs 40 per cent for corporate FIIs
30 per cent for foreign noncorporates 40 per cent for foreign corporate entities
Investors
Mutual fund
Investors
Right to
before
By investor
investor
To AMC
Provide facilities
Some funds
For Inspection
SEBI
Documents available
Such as
Trust deed
Investment management
Custodian agreement
Registrars
Transfer agents
investor
NAV Computation
and
Unit Price
Friendly service
Include details
or
Investors
and
Service representatives
Investor complaints
received by
of
Pending cases
Should alert
Investors
Mutual fund
to
history
Mutual fund
Expenses involved
Include
Offer documents
KIM
Refer
Mutual fund
Investor
Investor
Investment objective
Assets allocation pattern
Names of fund manager & trustee company Performance of schemes over 1,3,5 years Expenses of the schemes