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HDFC Annual Interval Fund - Series 1 - Plan A, B Investment Objective | Scheme Information & NAV | Investment Pattern &

Strategy | Fund Manager | Offer Document / Scheme Information Document (SID) | Application Form

This product is suitable for investors who are seeking*:


regular income over short term. investment in debt and money market instruments and government securities. low risk. (BLUE)

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Note: Risk is represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW)) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

Investment Objective The investment objective of the Plan(s) under the Scheme is to generate income through investments in Debt / Money Market Instruments and Government Securities maturing on or before the opening of the immediately following Specified Transaction Period. Basic Scheme Information

Nature of Scheme New Fund Offer Opens On

Interval Income Scheme Plan A: March 5, 2013 Plan B: March 13, 2013 Plan A: March 5, 2013 Plan B: March 13, 2013 The respective Plan(s) offers Regular Option and Direct Option.

New Fund Offer Closes On

Option/Plan

Regular Option: This Option is for investors who wish to

route their investment through any distributor.

Direct Option: This Option is for investors who wish to invest directly without routing the investment through any distributor. This Option shall have a lower expense ratio excluding distribution expenses, commission, etc and no commission for distribution of Units will be paid / charged under the Direct Option.

The Regular and Direct Options offer the following sub-options:


Growth option Dividend Option - Normal Dividend Option with Payout and Reinvestment facility and Quarterly Dividend Option with Payout facility only. Flexi Option - Dividends, if any, would be paid out.

Specified Transaction Period (STP)

STP is the period during which units of the Plan(s) under the Scheme are available for Subscription / Redemption / Switch-in / Switch-outs, without payment of any entry/exit load. STP shall be for 2 Business Days. First STP will be the 370th day (or immediately following Business Day, if that day is not a Business Day) and 371st day (or immediately following Business Day, if that day is not a Business Day) from the date of allotment of units after closure of NFO. Subsequently, STP shall be the 370th day (or immediately following Business Day, if that day is not a Business Day) and 371st day (or immediately following Business Day, if that day is not a Business Day) from the close of the immediately preceding STP of the respective Plan(s). The subscription / redemption / switch requests will be accepted by the Mutual Fund during normal business hours on the first day of the STP and upto 3.00 p.m. on the second day of the STP. The AMC / Trustee reserve the right to change/alter the STP.

Entry Load (as a % of the Applicable Not Applicable. NAV) Upfront commission shall be paid directly by the investor to the ARN Holder (AMFI registered Distributor) based on the investors assessment of various factors including the service rendered by

the ARN Holder. Exit Load (as a % of the Applicable NAV) During STP: Nil Other than STP: Not Applicable. The Units under the respective Plan(s) cannot be directly redeemed with the Fund as the Units would be listed on National Stock Exchange of India Limited. Minimum Application Amount During the NFO: Rs. 5,000 and in multiples of Rs.10 thereafter During the STP: Purchase: Rs.5,000 and any amount thereafter Additional Purchase: Rs.1,000 and any amount thereafter After NFO and Other than STP: The Units of the Plan(s) under the Scheme will be listed on the Capital Market Segment of the National Stock Exchange of India Ltd. (NSE) or any other recognized Stock Exchange(s). The price of the Units in the market may be at a premium/ discount to the NAV of the Plan(s) under the Scheme, depending upon demand and supply at that point of time. Purchases made through Stock Exchanges / demat mode have to be made by specifying the number of Units to be purchased and not the amount to be invested. The trading of units on the Stock Exchange(s) will be in round lots of 1 i.e. the minimum number of units that can be bought or sold on the Stock Exchange(s) is 1 (one) unit. Nil Every Business Day. Please click for details

Lock-In-Period Net Asset Value Periodicity Tax Benefits (As per present Laws) Scheme Information Document Current Expense Ratio (#) (Effective Date 6th May 2013)

Please Click here for Scheme Information Document

For Plan A 0.06% For Plan B 0.06%

(Effective Date 18th March 2013)

Excluding Service Tax on Investment Management Fees, if any. Direct Plan shall have a lower expense ratio by 0.05% for Plan A. Direct Plan shall have a lower expense ratio by 0.05% for Plan B. (#) Any change in the expense ratio will be updated within two working days.

Plan Name Plan A Direct Plan - Growth Option Plan A Direct Plan - Quarterly Dividend Option Plan A Direct Plan - Dividend Reinvestment Option Plan A Direct Plan - Flexi Option Plan A Direct Plan - Dividend Option Plan B Growth Option Plan B Dividend Option Plan B Direct Plan - Dividend Reinvestment Option Plan B Direct Plan - Flexi Option Plan B Quarterly Dividend Plan B Dividend Reinvestment Option Plan B Direct Plan - Growth Option Plan B Direct Plan - Dividend Option Plan B Direct Plan - Quarterly Dividend Option Plan B Flexi Option

NAV Date 11 Aug 2013 11 Aug 2013 11 Aug 2013 11 Aug 2013 11 Aug 2013 11 Aug 2013 11 Aug 2013 11 Aug 2013 11 Aug 2013 11 Aug 2013 11 Aug 2013 11 Aug 2013 11 Aug 2013 11 Aug 2013 11 Aug 2013

NAV Amount -

Plan A Dividend Option Plan A Dividend Reinvestment Option Plan A Flexi Option Plan A Growth Option Plan A Quarterly Dividend TOP Investment Pattern

11 Aug 2013 11 Aug 2013 11 Aug 2013 11 Aug 2013 11 Aug 2013

Type of Instruments

Indicative allocation(% of total assets) Minimum Maximum

Risk Profile

High / Medium / Low Low to Medium Low

Debt and Money Market Instruments Money Market Instruments** and Liquid Schemes

60% 0%

100% 40%

The investments in securitised debt will not exceed 50% of the net assets of the respective Plans. The respective Plan(s) under the Scheme shall not undertake repo / reverse repo transactions in Corporate Debt Securities. The total gross exposure through investment in debt + money market instruments + derivatives (fixed income) shall not exceed 100% of net assets of the Scheme. Security wise hedge positions using derivatives such as Interest Rate Swaps, etc. will not be considered in calculating above exposure. TOP Investment Strategy

The investment objective of the Plans under the Scheme is to generate income through investments in Debt, Money market instruments and Government Securities. The net assets of the Plans will be invested in Debt, Money market instruments and Government Securities which mature on or before the opening of the immediately following STP of the respective Plans.

However, in case of securities with put and call options the residual time for exercising the put option of the securities shall not be beyond the opening of the immediately following STP.

Though every endeavor will be made to achieve the objectives of the Scheme, the AMC/Sponsors/Trustees do not guarantee that the investment objectives of the Scheme will be achieved. No guaranteed returns are being offered under the Scheme.

RISK CONTROL Investments made from the corpus of the Plans would be in accordance with the investment objective of the Scheme and the provisions of the SEBI (MF) Regulations. The AMC will strive to achieve the investment objective by way of a judicious portfolio mix comprising debt, money market instruments and government securities. Every investment opportunity would be assessed with regard to credit risk, interest rate risk and liquidity risk. Credit Evaluation Policy The credit evaluation policy of the AMC entails evaluation of credit fundamentals of each investment opportunity. Some of the factors that are evaluated inter-alia may include outlook on the sector, parentage, quality of management, and overall financial strength of the credit. The AMC utilises ratings of recognised rating agencies as an input in the credit evaluation process. Investments in bonds and debenture are usually in instruments that have been assigned high investment grade ratings by a recognized rating agency. In line with SEBI Circular No. MFD/CIR/9/120/ 2000 dated November 24, 2000, the AMC may constitute committee(s) to approve proposals for investments in unrated instruments. The AMC Board and the Trustee shall approve the detailed parameters for such investments. The details of such investments would be communicated by the AMC to the Trustee in their periodical reports. It would also be clearly mentioned in the reports, how the parameters have been complied with. However, in case any security does not fall under the parameters, the prior approval of Board of AMC and Trustee shall be sought. Interest Rate Risk An interest rate scenario analysis would be performed on an on-going basis, considering the impact of the developments on the macro-economic front and the demand and supply of funds. The Scheme would keep the maturity of its debt assets within the next STP. This would limit the market risk of the portfolio.

Liquidity Risk Since investors can subscribe/ redeem/ Switch units of the Plan(s) under the Scheme only during the STP and the assets would also mature on or before the STP, the liquidity risk would be minimised.

Applicable NAV The NAV applicable for purchase or redemption or switching of Units based on the time of the Business Day on which the application is accepted, subject to the provisions of realisation of funds and 'cut off timings' as described in this Scheme Information Document.