Annual Report for Fixed Maturity Schemes - Tata Mutual Fund

1.5 Unit Premium Reserve (“UPR”) and Income Equalisation
On issue / repurchase of units, the portion of the premium which is attributable to realised gains is credited / debited to the Revenue
Account for the period as Income Equalisation. It is reflected in the Revenue Account after the net surplus / deficit of the scheme is
determined. The balance portion of the premium that is not attributable to realised gains is credited / debited to the UPR.
If units are sold at a price lower than the face value the difference is debited to the Revenue Account as Income Equalisation.
The distributable amount is determined by deducting from the balance in the Revenue Reserve as at the end of the period, the net
unrealised appreciation in the value of investments as at the end of the period. Credit balance in the UPR is considered to be at par with
unit capital and is not taken into account in the determination of the distributable surplus. Dividend is declared only when the Revenue
Reserve is positive.
1.6 Load Charges:
Load represents amounts charged to investors at the time of exit from the scheme.
The difference between the NAV and the repurchase price is disclosed as “Accumulated Load” which is not considered for computation
of the Net Asset Value.
In compliance with SEBI‟s Circular No. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009, with effect from August 1, 2009:
• The Scheme has not charged any entry load on investments made into it (including additional purchases and switches into the Scheme
from other schemes) otherwise than through Systematic Investment Plans (“SIPs”) registered prior to July 31, 2009 (as the circular is
applicable to SIPs registered on or after August 1, 2009).
• In terms of SEBI Circular dated 9 th March, 2011, the load balance needs to be segregated into two separate accounts in the books of
the scheme. One account should reflect load balance as on 31 st July, 2009 and the other account should reflect accretions after 31 st July,
2009. Further as per the circular, the utilisation of load balance from the load account as of 31 st July, 2009 should be restricted to onethird
in each of the financial year and the said utilisation should be only for meeting marketing and selling expenses including distributor's
/ agent's commissions. The accretions after 31 st July, 2009 can be utilised without any restrictions.