COMMON APPLICATION FORM LIQUID, DYNAMIC BOND.pdf

More documents

Recommendations

Info

Differentiation withexisting Open EndedDebt Schemes ofAxis Mutual Fund(as on March 31, 2011)(Contd...)Investment StrategyRisk Profile of theSchemeUnder normal circumstances, the fund shall seek to generatereasonable returns commensurate with low risk by positioning itselfat the lowest level of the risk-return matrix.The Scheme will invest predominantly in money market securitieswith some tactical allocation towards other debt securities toenhance returns from the portfolio.Name of the existing scheme - Axis Treasury Advantage FundAsset AllocationType of InstrumentNormal Allocation(% of net assets)Money Market & Debt instruments with Minimum 70%;maturity/average maturity/residual maturity/ Maximum 100%interest rate resets less than or equal to1 yearDebt instruments with maturity/average Minimum 0%;maturity/ residual maturity/interest rate Maximum 30%resets greater than 1 yearPrimary Investment Objective - The investment objective is toprovide optimal returns and liquidity to the investors by investingprimarily in a mix of money market and short term debtinstruments which results in a portfolio having marginally highermaturity as compared to a liquid fund at the same time maintaininga balance between safety and liquidity. However, there can be noassurance that the investment objective of the scheme will beachieved.Differentiation - Average maturity of the fund to range between 3-6 months under normal market circumstances and depending onthe interest rate view of the fund manager.AUM (`. In crores) 396.32 No. of Folios 552The investment objective of this scheme is to maximize returns tothe investor through an active management of the portfolio, byelongating the duration of the portfolio in a falling interest ratescenario and reducing the duration at a time when interest rates aremoving up.With the discretion to take aggressive interest rate/duration riskcalls, this could mean investing the entire net assets in long datedGovernment securities and debt instruments (carrying relativelyhigher interest rate risk/duration risk), or on defensiveconsiderations, entirely in money market instruments. Accordingly,the interest rate risk/duration risk of the scheme may changesubstantially depending upon the Fund’s call.Mutual Fund Units involve investment risks including the possible loss of principal. Please read the SID carefully for details on riskfactors before investment. Scheme specific Risk Factors are summarized below:The scheme carries risks associated with investing in debt and money market securities, derivatives, Foreign Securities, securitizeddebt, short selling and securities lending.Investment in mutual fund units involves investment risks such as trading volumes, settlement risk, liquidity risk and default risk.Trading volume may restrict liquidity. The AMC may choose to invest in unlisted securities which may increase the risk on the portfolio.Also, the value of the Scheme investments may be affected by currency exchange rates, changes in law/policies of the government,taxation laws and political, economic or other developments.Investments in debt and money market instruments are subject to interest rate risk, re-investment risk, basis risk, credit risk, spreadrisk, prepayment risk, etc. Please refer to the SID for further details.Risk ManagementStrategiesPlans and OptionInterest rate risk is managed by meticulous determination ofaverage maturity (which is the expression for change in portfoliovalue for a basis point change in interest rate) of the portfolio.Extensive analysis of macro economic conditions is done to form aview on future interest rates and to position the portfolioaccordingly. Credit risk is managed by in-depth analysis of issuer(financial/operating performance) with the help of internal andexternal research. Liquidity risk is addressed by maintainingexposure to cash/cash equivalents and highly liquid instruments.Plans: Retail & Institutional (Both plans will have a commonportfolio)Options: Growth & DividendDividend Frequency: Daily Dividend (Only Reinvestment facility);Weekly Dividend (Payout & Reinvestment); Monthly Dividend(Payout & Reinvestment)Default Plan (Fresh Purchase): If investment amount is > =` 1 crore: Institutional; If investment amount is < ` 1 crore:RetailDefault Plan (Additional Purchase): If investment amount is > =` 1 lac: Institutional; If investment amount is < ` 1 lac: RetailDefault option: GrowthDefault between payout & Reinvestment option : ReinvestmentDefault Dividend Frequency: DailyInterest rate risk is managed by a meticulous determination of themodified duration of the portfolio. Extensive analysis of macroeconomic conditions is done to form a view on future interestrates and to position the portfolio accordingly. Credit risk ismanaged by in-depth analysis of issuer (financial/operatingperformance) with the help of internal and external research.Liquidity risk is addressed by maintaining exposure to cash/cashequivalents and highly liquid instruments.Plans: NilOptions: The Scheme would offer Growth and Dividend Option.Sub Options: The Dividend Option would provide the following suboptions:Quarterly (Payout and Reinvestment); Half Yearly (Payout andreinvestment)If Dividend payable under Dividend Payout option is equal to or lessthan ` 500/- then the Dividend would be compulsorily reinvested inthe option of the Scheme.6
Applicable NAVi) Subscriptions/Purchases including Switch - ins:i. where the application is received upto 2.00 p.m. on a day andfunds are available for utilization before the cut-off time withoutavailing any credit facility, whether, intra-day or otherwise - theclosing NAV of the day immediately preceding the day ofreceipt of application;ii.where the application is received after 2.00 p.m. on a day andfunds are available for utilization on the same day withoutavailing any credit facility, whether, intra-day or otherwise - theclosing NAV of the day immediately preceding the nextbusiness day ; andiii. irrespective of the time of receipt of application, where thefunds are not available for utilization before the cut-off timewithout availing any credit facility, whether, intra-day orotherwise - the closing NAV of the day immediately precedingthe day on which the funds are available for utilization.For allotment of units in respect of purchase in to the scheme, itshall be ensured that:i. Application is received before the applicable cut-off time.ii.Funds for the entire amount of subscription/purchase as per theapplication are credited to the bank account of the schemebefore the cut-off time.iii. The funds are available for utilization before the cut-off timewithout availing any credit facility whether intra-day orotherwise, by the scheme.For allotment of units in respect of switch-in to the scheme fromother schemes, it shall be ensured that:i. Application for switch-in is received before the applicable cutofftime.ii.Funds for the entire amount of subscription/purchase as per theswitch-in request are credited to the bank account of thescheme before the cut-off time.iii. The funds are available for utilization before the cut-off timewithout availing any credit facility whether intra-day orotherwise, by the respective switch-in schemes.Redemptions including Switch - outs:a. In respect of valid applications received upto 3.00 p.m. - theclosing NAV of the day immediately preceding the nextBusiness Day ; andb. In respect of valid applications received after 3.00 p.m. by theMutual Fund, the closing NAV of the next Business Day shall beapplicable.Subscriptions/Purchases including Switch - ins:The following cut-off timings shall be observed by the Mutual Fundin respect of purchase of units of the Scheme, and the followingNAVs shall be applied for such purchase:1. where the application is received upto 3.00 pm with a localcheque or demand draft payable at par at the place where it isreceived - closing NAV of the day of receipt of application;2. where the application is received after 3.00 pm with a localcheque or demand draft payable at par at the place where it isreceived - closing NAV of the next Business Day ; and3. where the application is received with an outstation cheque ordemand draft which is not payable on par at the place where itis received - closing NAV of day on which the cheque ordemand draft is credited.4. In respect of purchase of units with amount equal to or morethan ` 1 crore, irrespective of the time of receipt of application,the closing NAV of the day on which the funds are available forutilization shall be applicable provided that:(a) For allotment of units in respect of purchase in the schemeunder pt (4) above, it shall be ensured that:i. Application is received before the applicable cut-offtimeii. Funds for the entire amount of subscription/purchase asper the application are credited to the bank account ofthe scheme before the cutoff time.iii. The funds are available for utilization before the cut-offtime without availing any credit facility whether intradayor otherwise, by the scheme.(b) For allotment of units in respect of switch-in to the schemeunder Pt (4) above from other schemes, it shall be ensuredthat:i. Application for switch-in is received before theapplicable cut-off time.ii. Funds for the entire amount of subscription/purchase asper the switch-in request are credited to the bankaccount of the scheme before the cut-off time.iii. The funds are available for utilization before the cut-offtime without availing any credit facility whether intradayor otherwise, by the scheme.Redemptions including Switch - outs:The following cut-off timings shall be observed by the Mutual Fundin respect of Repurchase of units:1. where the application received upto 3.00 pm - closing NAV ofthe day of receipt of application; and2. an application received after 3.00 pm - closing NAV of the nextBusiness Day.Minimum Applicationand RedemptionAmount/Number of UnitsPurchase Additional Purchase RepurchaseRetail Plan` 5,000 and in multiplesof ` 1 thereafterRetail Plan` 1,000 and in multiplesof ` 1 thereafterInstitutional Plan Institutional Plan` 1 crore and in multiples ` 1 lac and in multiplesof ` 1 thereafter of ` 1 thereafterMinimumRedemption` 1,000 or1 Unit inrespect ofeach OptionFor details of transfer/investment through Systematic TransferPlan (STP) facility please refer to the relevant SID.Fresh Purchase` 5,000 and in multiples of ` 1 thereafterAdditional Purchase` 100 and in multiples of ` 1 thereafterRepurchase` 1,000 or 100 Units or account balance whichever is lowerFor details on investments through Sleep in Peace (SIP) andSystematic Transfer Plan (STP) facilities, please refer to the SID.Despatch of Repurchase(Redemption) RequestWithin 10 working days from the receipt of the redemption request at the Authorized Centre of Axis Mutual Fund.Benchmark IndexCRISIL Liquid Fund IndexCRISIL Composite Bond Fund indexDividend PolicyThe Trustee will endeavour to declare the Dividend as per the specified frequencies, subject to availability of distributable surpluscalculated in accordance with the Regulations. The actual declaration of Dividend and frequency will inter-alia, depend on availability ofdistributable surplus calculated in accordance with SEBI (MF) Regulations and the decisions of the Trustee shall be final in this regard.There is no assurance or guarantee to the Unit holders as to the rate of Dividend nor that the Dividend will be paid regularly.Name of Fund ManagerName of the TrusteeCompanyMr Ninad Deshpande & Mr R SivakumarAxis Mutual Fund Trustee LimitedMr R Sivakumar & Mr Ninad Deshpande7
Page 2 and 3: Differentiation withexisting Open E
Page 4 and 5: Performance of thescheme(as on Marc
Page 8 and 9: Performance of thescheme(as on Marc
Page 10 and 11: COMMON APPLICATION FORMForm 1Date D
Page 12 and 13: APPLICATION FORM FORDate D D M M Y
Page 14: ELECTRONIC DEBIT MANDATE FORM FORFo

COMMON APPLICATION FORM LIQUID, DYNAMIC BOND.pdf

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?