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MUTUAL FUNDS FAQ

What is a Mutual Fund? What is an Asset Management Company? What is NAV? How often is the NAV declared? What are the benefits of investing in Mutual Funds? Are there any ris s involved in investing in Mutual Funds? What are the different types of Mutual funds? What are the different plans that Mutual Funds offer? What is !ntry"!#it $oad? What is %ales"&urchase price? What is redemption price? What is repurchase price? What is a %witch? What is %hut'(ut &eriod? )s there any minimum loc 'in period for my units? Who are the issuers of Mutual funds in )ndia? What are the factors that influence the performance of Mutual Funds? As a new investor how do ) select a particular scheme? What are the rights that are available to a Mutual Fund holder? )t is very often said that Mutual Funds have performed badly* &lease e#plain? Can ) avail nomination facility in Mutual Fund schemes purchased through )C)C)direct*com ?

ONLINE MF TRANSACTIONS ON ICICIdirect


+o ) need to allocate funds for investing in Mutual Funds? Can ) modify "cancel my transactions? Will ) get an online confirmation of my transactions? Can ) transact anytime during the day? Can ) purchase after the time, which is displayed beside the scheme? )s there a minimum transaction amount for each scheme? Can ) use the funds allocated for investments in secondary mar et towards investments in Mutual Fund ? After my first purchase, can ) immediately enter another transaction? Who are the users of this facility and how? ) do not have an account with )C)C) +irect, but would li e to invest in Mutual Funds* What do ) do? How do ) convert my e#isting portfolio of Mutual funds units into )C)C) +irects Mutual Fund portfolio? How do ) purchase from your web site? Can ) as an N-) buy Mutual Fund .nits in the &)N% account? When will ) be able to see my purchase details? How do ) redeem my Mutual Fund scheme units? Will /+% be deducted on the redemption of units? )f yes what will be the basis of deduction of /+% Where can ) see the /+% deducted on the sale proceeds? How do ) switch from a particular scheme? How does the Automatic" %ystematic )nvestment &lan 0A)&" %)&1 wor ? How does the Automatic" %ystematic Withdrawal &lan 0AW&"%W&1 wor ? Will /+% be deducted on dividend received? )f ) change my address, what do ) need to do? Can ) transact on a holiday?

What is a Mutual Fund?


A Mutual Fund is a body corporate that pools the savings of a number of investors and invests the same in a variety of different financial instruments, or securities* /he income earned through these investments and the capital appreciation realised by the scheme are shared by its unit holders in proportion to the number of units owned by them* Mutual funds can thus be considered as financial intermediaries in the investment business who collect funds from the public and invest on behalf of the investors* /he losses and gains accrue to the

investors only* /he )nvestment ob2ectives outlined by a Mutual Fund in its prospectus are binding on the Mutual Fund scheme* /he investment ob2ectives specify the class of securities a Mutual Fund can invest in* Mutual Funds invest in various asset classes li e e3uity, bonds, debentures, commercial paper and government securities* /op

What is an Asset Manage ent C! "an#?


An Asset Management Company 0AMC1 is a highly regulated organisation that pools money from investors and invests the same in a portfolio* /hey charge a small management fee, which is normally 4*5 per cent of the total funds managed* /op

What is NA$?
NAV or Net Asset Value of the fund is the cumulative mar et value of the assets of the fund net of its liabilities* NAV per unit is simply the net value of assets divided by the number of units outstanding* 6uying and selling into funds is done on the basis of NAV'related prices* NAV is calculated as follows7 NAV8 Mar et value of the fund9s investments:-eceivables:Accrued )ncome; $iabilities'Accrued !#penses <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< Number of (utstanding units /op

%!& !'ten is the NA$ declared?


/he NAV of a scheme has to be declared at least once a wee * However many Mutual Fund declare NAV for their schemes on a daily basis* As per %!6) -egulations, the NAV of a scheme shall be calculated and published at least in two daily newspapers at intervals not e#ceeding one wee * However, NAV of a close' ended scheme targeted to a specific segment or any monthly income scheme 0which are not mandatorily re3uired to be listed on a stoc e#change1 may be published at monthly or 3uarterly intervals* /op

What are the (ene'its !' in)esting in Mutual Funds?


4* =ualified and e#perienced professionals manage Mutual Funds* >enerally, investors, by themselves, may have reasonable capability, but to assess a financial instrument a professional analytical approach is re3uired in addition to access to research and information and time and methodology to ma e sound investment decisions and eep monitoring them* ?* %ince Mutual Funds ma e investments in a number of stoc s, the resultant diversification reduces ris * /hey provide the small investors with an opportunity to invest in a larger bas et of securities* @* /he investor is spared the time and effort of trac ing investments, collecting income, etc* from various issuers, etc* A* )t is possible to invest in small amounts as and when the investor has surplus funds to invest* 5* Mutual Funds are registered with %!6)* %!6) monitors the activities of Mutual Funds* B* )n case of open'ended funds, the investment is very li3uid as it can be redeemed at any time with the fund unli e direct investment in stoc s"bonds* /op

Are there an# ris*s in)!l)ed in in)esting in Mutual Funds?


Mutual Funds do not provide assured returns* /heir returns are lin ed to their performance* /hey invest in shares, debentures and deposits* All these investments involve an element of ris * /he unit value may vary depending upon the performance of the company and companies may default in payment of interest"principal on their debentures"bonds"deposits* 6esides this, the government may come up with new regulation which may affect a particular industry or class of industries* All these factors influence the performance of Mutual Funds* /op

What are the di''erent t#"es !' Mutual 'unds? +a, On the (asis !' O(-ecti)e
E.uit# Funds/ 0r!&th Funds

Funds that invest in e3uity shares are called e3uity funds* /hey carry the principal ob2ective of capital appreciation of the investment over the medium to long'term* /he returns in such funds are volatile since they are directly lin ed to the stoc mar ets* /hey are best suited for investors who are see ing capital appreciation* /here are different types of e3uity funds such as +iversified funds, %ector specific funds and )nde# based funds* Di)ersi'ied 'unds /hese funds invest in companies spread across sectors* /hese funds are generally meant for ris 'ta ing investors who are not bullish about any particular sector* Sect!r 'unds /hese funds invest primarily in e3uity shares of companies in a particular business sector or industry* /hese funds are targeted at investors who are e#tremely bullish about a particular sector* Inde1 'unds /hese funds invest in the same pattern as popular mar et indices li e %C& 5DD and 6%! )nde#* /he value of the inde# fund varies in proportion to the benchmar inde#* Ta1 Sa)ing Funds /hese funds offer ta# benefits to investors under the )ncome /a# Act* (pportunities provided under this scheme are in the form of ta# rebates ."s EE as well saving in Capital >ains ."s 5A!A and 5A!6* /hey are best suited for investors see ing ta# concessions* De(t / Inc! e Funds /hese Funds invest predominantly in high'rated fi#ed'income'bearing instruments li e bonds, debentures, government securities, commercial paper and other money mar et instruments* /hey are best suited for the medium to long'term investors who are averse to ris and see capital preservation* /hey provide regular income and safety to the investor* Li.uid Funds / M!ne# Mar*et Funds /hese funds invest in highly li3uid money mar et instruments* /he period of investment could be as short as a day* /hey provide easy li3uidity* /hey have emerged as an alternative for savings and short'term fi#ed deposit accounts with comparatively higher returns* /hese funds are ideal for Corporates, institutional investors and business houses who invest their funds for very short periods* 0ilt Funds /hese funds invest in Central and %tate >overnment securities* %ince they are >overnment bac ed bonds they give a secured return and also ensure safety of the principal amount* /hey are best suited for the medium to long'term investors who are averse to ris * 2alanced Funds /hese funds invest both in e3uity shares and fi#ed'income'bearing instruments 0debt1 in some proportion* /hey provide a steady return and reduce the volatility of the fund while providing some upside for capital appreciation* /hey are ideal for medium' to long'term investors willing to ta e moderate ris s* %edge Funds /hese funds adopt highly speculative trading strategies* /hey hedge ris s in order to increase the value of the portfolio* +(, On the (asis !' Fle1i(ilit# O"en3ended Funds /hese funds do not have a fi#ed date of redemption* >enerally they are open for subscription and redemption throughout the year* /heir prices are lin ed to the daily net asset value 0NAV1* From the investorsF perspective, they are much more li3uid than closed'ended funds* )nvestors are permitted to 2oin or withdraw from the fund after an initial loc 'in period* Cl!se3ended Funds /hese funds are open initially for entry during the )nitial &ublic (ffering 0)&(1 and thereafter closed for entry as well as e#it* /hese funds have a fi#ed date of redemption* (ne of the characteristics of the close'ended schemes is that they are generally traded at a discount to NAVG but the discount narrows as maturity nears* /hese funds are open for subscription only once and can be redeemed only on the fi#ed date of redemption* /he units of these funds are listed 0with certain e#ceptions1, are tradable and the subscribers to the fund would be able to e#it from the fund at any time through the secondary mar et* Inter)al 'unds /hese funds combine the features of both open;ended and close'ended funds wherein the fund is close'ended for the first couple of years and open'ended thereafter* %ome funds allow fresh subscriptions and redemption at fi#ed times every year 0say every si# months1 in order to reduce the administrative aspects of daily entry or e#it, yet providing reasonable li3uidity* +c, On the (asis !' ge!gra"hic l!cati!n

D! estic 'unds /hese funds mobilise the savings of nationals within the country* O''sh!re Funds /hese funds facilitate cross border fund flow* /hey invest in securities of foreign companies* /hey attract foreign capital for investment* /op

What are the di''erent "lans that Mutual Funds !''er?


0r!&th 4lan and Di)idend 4lan A growth plan is a plan under a scheme wherein the returns from investments are reinvested and very few income distributions, if any, are made* /he investor thus only realises capital appreciation on the investment* /his plan appeals to investors in the high income brac et* .nder the dividend plan, income is distributed from time to time* /his plan is ideal to those investors re3uiring regular income* Di)idend Rein)est ent 4lan +ividend plans of schemes carry an additional option for reinvestment of income distribution* /his is referred to as the dividend reinvestment plan* .nder this plan, dividends declared by a fund are reinvested on behalf of the investor, thus increasing the number of units held by the investors* Aut! atic In)est ent 4lan .nder the Automatic )nvestment &lan 0A)&1 also called %ystematic )nvestment &lan 0%)&1, the investor is given the option for investing in a specified fre3uency of months in a specified scheme of the Mutual Fund for a constant sum of investment* A)& allows the investors to plan their savings through a structured regular monthly savings program* Aut! atic Withdra&al 4lan .nder the Automatic Withdrawal &lan 0AW&1 also called %ystematic Withdrawal &lan 0%W&1, a facility is provided to the investor to withdraw a pre'determined amount from his fund at a pre'determined interval* /op

What is Entr#/E1it L!ad?


A $oad is a charge, which the AMC may collect on entry and"or e#it from a fund* A load is levied to cover the up'front cost incurred by the AMC for selling the fund* )t also covers one time processing costs* %ome funds do not charge any entry or e#it load* /hese funds are referred to as HNo $oad Fund9* Funds usually charge an entry load ranging between 4*DDI and ?*DDI* !#it loads vary between D*?5I and ?*DDI* For eg* $et us assume an investor invests -s* 4D,DDD"' and the current NAV is -s*4@"'* )f the entry load levied is 4*DDI, the price at which the investor invests is -s*4@*4@ per unit* /he investor receives 4DDDD"4@*4@ 8 JB4*B4AB units* 0Note that units are allotted to an investor based on the amount invested and not on the basis of no* of units purchased1* $et us now assume that the same investor decides to redeem his JB4*B4AB units* $et us also assume that the NAV is -s 45"' and the e#it load is D*5DI* /herefore the redemption price per unit wor s out to -s* 4A*K?5* /he investor therefore receives JB4*B4AB # 4A*K?5 8 -s*44@BJ*4D /op

What is Sales/4urchase "rice?


%ales"&urchase price is the price paid to purchase a unit of the fund* )f the fund has no entry load, then the sales price is the same as the NAV* )f the fund levies an entry load, then the sales price would be higher than the NAV to the e#tent of the entry load levied* /op

What is rede "ti!n "rice?


-edemption price is the price received on selling units of open'ended scheme* )f the fund does not levy an e#it load, the redemption price will be same as the NAV* /he redemption price will be lower than the NAV in case the fund levies an e#it load* /op

What is re"urchase "rice?


-epurchase price is the price at which a close'ended scheme repurchases its units* -epurchase can either be at NAV or can have an e#it load* /op

What is a S&itch?

%ome Mutual Funds provide the investor with an option to shift his investment from one scheme to another within that fund* For this option the fund may levy a switching fee* %witching allows the )nvestor to alter the allocation of their investment among the schemes in order to meet their changed investment needs, ris profiles or changing circumstances during their lifetime* /op

What is Shut3Out 4eri!d?


After the closure of the )nitial (ffer &eriod, on an ongoing basis, the /rustee reserves a right to declare %hut' (ut period not e#ceeding 5 days at the end of each month"3uarter"half'year, as the case may be, for the investors opting for payment of dividend under the respective +ividends &lans* /he declaration of the %hut'(ut period is envisaged to facilitate the AMC"the -egistrar to determine the .nits of the unitholders eligible for receipt of dividend under the various +ividend (ptions* Further, the %hut'(ut period will also help in e#peditious processing and despatch of dividend warrants* +uring the %hut'(ut period investors may ma e purchases into the %cheme but the &urchase &rice for subscription of units will be calculated using the NAV as at the end of the first 6usiness +ay in the following month"3uarter"half'year as the case may be, depending on the +ividend &lan chosen by the investor* /herefore, if investments are made during the %hut ;(ut period, .nits to the credit of the .nitholder9s account will be created only on the first 6usiness +ay of the following month" 3uarter"half year, as the case may be, depending on the dividend plan chosen by the investor* /he %hut'(ut period applies to new investors in the %cheme as well as to .nitholders ma ing additional purchases of .nits into an e#isting folio* /he /rustee reserves the right to change the %hut'(ut period and prescribe new %hut' (ut period, from time to time* /op

Is there an#

ini u

l!c*3in "eri!d '!r

# units?

/here is no loc 'in period in the case of open'ended funds* However in the case of ta# saving funds a minimum loc 'in period is applicable* /he loc 'in period for different ta# saving schemes are as follows7

secti!n
."s EE ."s 5A!A ."s 5A!6

ini u
@ yrs* @ yrs* J yrs*

l!c*3in "eri!d

/op

Wh! are the issuers !' Mutual 'unds in India?


.nit /rust of )ndia was the first mutual fund which began operations in 4KBA* (ther issuers of Mutual funds are &ublic sector ban s li e %6), Canara 6an , 6an of )ndia, )nstitutions li e )+6), )C)C), >)C, $)C, Foreign )nstitutions li e Alliance, Morgan %tanley, /empleton and &rivate financial companies li e Lothari &ioneer, +%& Merrill $ynch, %undaram, Lota Mahindra, Cholamandalam etc* /op

What are the 'act!rs that in'luence the "er'!r ance !' Mutual Funds?
/he performances of Mutual funds are influenced by the performance of the stoc mar et as well as the economy as a whole* !3uity Funds are influenced to a large e#tent by the stoc mar et* /he stoc mar et in turn is influenced by the performance of the companies as well as the economy as a whole* /he performance of the sector funds depends to a large e#tent on the companies within that sector* 6ond'funds are influenced by interest rates and credit 3uality* As interest rates rise, bond prices fall, and vice versa* %imilarly, bond funds with higher credit ratings are less influenced by changes in the economy* /op

As a ne& in)est!r h!& d! I select a "articular sche e?


Choice of any scheme would depend to a large e#tent on the investor preferences* For an investor willing to underta e ris s, e3uity funds would be the most suitable as they offer the ma#imum returns* +ebt funds are suited for those investors who prefer regular income and safety* >ilt funds are best suited for the medium to long'term investors who are averse to ris * 6alanced funds are ideal for medium' to long'term investors willing to ta e moderate ris s* $i3uid funds are ideal for Corporates, institutional investors and business houses who invest their funds for very short periods* /a# %aving Funds are ideal for those investors who want to avail ta# benefits* An important aspect while selecting a particular scheme is the duration of the investment* +epending on your

time horiMon you can select a particular scheme* 6esides all this, factors li e promoter9s image, ob2ective of the fund and returns given by the funds on different schemes should also be ta en into account while selecting a particular scheme* /op

What are the rights that are a)aila(le t! a Mutual Fund h!lder?
As per %!6) -egulations on Mutual Funds, an investor is entitled to 4* -eceive .nit certificates or statements of accounts confirming your title within B wee s from the date your re3uest for a unit certificate is received by the Mutual Fund* ?* -eceive information about the investment policies, investment ob2ectives, financial position and general affairs of the schemeG @* -eceive dividend within A? days of their declaration and receive the redemption or repurchase proceeds within 4D days from the date of redemption or repurchase A* /he trustees shall be bound to ma e such disclosures to the unit holders as are essential in order to eep them informed about any information which may have an adverse bearing on their investments* 5* J5I of the unit holders with the prior approval of %!6) can terminate the AMC of the fund* B* J5I of the unit holders can pass a resolution to wind'up the scheme* J* An investor can send complaints to %!6), who will ta e up the matter with the concerned Mutual Funds and follow up with them till they are resolved* /op

It is )er# !'ten said that Mutual Funds ha)e "er'!r ed (adl#5 4lease e1"lain?
/he performance of Mutual Funds is evaluated on the basis of absolute increase or decrease in its Net Asset Value 0NAV1* However a fund9s performance should be evaluated on the basis of a comparison with the relevant indices and alternative instruments* /he NAV varies from fund to fund* /herefore this argument is not entirely true* However some funds have performed poorly with their NAV 3uoting well below their original )&( price*

/op Can I a)ail n! inati!n 'acilit# in Mutual Fund sche es "urchased thr!ugh ICICIdirect5c!
Currently nomination facility is not available on )C)C)direct*com site*

? /op

D! I need t! all!cate 'unds '!r in)esting in Mutual Funds?


Nes, 2ust as in the secondary mar et, you will need to allocate funds for the purpose of investing in Mutual Funds* .nder the Modify Allocation option you would have a separate section for allocating money for Mutual Funds* Also the funds which are allocated for investments in Mutual Fund will not be allowed for transactions in the secondary mar et* /op

Can I

!di'# /cancel

# transacti!ns?

Nes, while placing any mutual fund order, modify or cancel option would be available to you till the final confirmation of the order is placed by you* (nce you clic on Final Confirmation you cannot modify or cancel the order placed by you* Nou can only modify " cancel any %ystematic )nvestment &lan 0%)&1 " %ystematic Withdrawal &lan 0%W&1 order placed by you* /op

Will I get an !nline c!n'ir ati!n !'

# transacti!ns?

As soon as you confirm your order you can view the details of your transaction in the order boo * Also an email will be sent to your email address* /op

Can I transact an#ti e during the da#?


Nes, you can transact at any time of the day* However, in order to get the NAV of the current day you would have to transact before the cut'off time of the scheme* )f you place any order after the said cut'off time, you would be eligible for NAV of the ne#t day* /op

Can I "urchase a'ter the ti e &hich is dis"la#ed (eside the sche e?


)n order to get the NAV of the same day, you can purchase up to the cut'off time of the scheme, after which you will get the ne#t dayFs NAV* 0)f the ne#t day is a holiday, then the NAV of the ne#t wor ing day1* /op

Is there a

ini u

transacti!n a !unt '!r each sche e?

As decided by the fund, there is a minimum transaction amount indicated against each scheme* Nou will get to see the minimum transaction amount in the &lace (rder screen* /op

Can I use the 'unds all!cated '!r in)est ents in sec!ndar# Mutual Fund ?

ar*et t!&ards in)est ents in

)n order to invest in Mutual Fund, you will need to separately allocate funds for the same* /his option is available to you in the Modify Allocation screen* /op

A'ter

# 'irst "urchase6 can I i

ediatel# enter an!ther transacti!n?

After your first purchase you will not be permitted to transact for a period of A to J days depending on the processing time of the Mutual FundsF -egistrar* After you place an investment order in any Mutual Fund for the first time a Folio Number is generated for that particular fund* .ntil the Folio number is generated you will not be allowed to place any further orders for that particular Mutual Fund* After the Folio Number is generated you can place any number of order in any schemes of the Mutual Fund* )n the case of Fran lin /empleton MF and 6irla %un $ife MF, the Folio Number is generated for each scheme offered by the MF* Hence the processing time would be for each scheme of the Mutual Fund* %uppose if you place an order for a $i3uid Fund, then a folio number is generated for that scheme only and to place an order for the first time in a balanced fund you will have again wait till a new folio number is generated* /op

Wh! are the users !' this 'acilit# and h!&?


All )C)C) +irect customers who are Non'resident )ndians, whose accounts are activated, can use the same login )d and password to invest in Mutual Funds*Nou can invest in units of a Mutual fund from either the Non' &ins N-! or Non'&ins N-( account* /op

I d! n!t ha)e an acc!unt &ith ICICI Direct6 (ut &!uld li*e t! in)est in Mutual Funds5 What d! I d!?
Nou can contact any )C)C) Centre to open accounts or fill in the application form on the web site and our Customer %ervice !#ecutive will visit you for opening your e'invest account* (nce the processing of your form is completed, you can start investing in Mutual Funds online* /op

%!& d! I c!n)ert "!rt'!li!?

# e1isting "!rt'!li! !' Mutual Fund units t! ICICI Direct7s Mutual Fund

A /ransfer'in re3uest form is available on the site* However this facility of /ransfer'in can be availed only if youFre a sole holder in the physical units else your re3uest will be re2ected* /his can be accessed through the &lace order hyperlin * However to convert your e#isting portfolio of Mutual Fund units to )C)C)directFs Mutual Fund portfolio you should hold or should have held units in at least one scheme of the mutual fund subscribed through )C)C)direct*com* Fill in the e#isting folio number alloted for that scheme* /hereafter you need to ta e a printout of the form filled and forward it to )C)C)direct* )n case of transfer'in of dividend schemes the dividend re'investment option will by default be ta en to be re'investment and will appear as ONO* )n case the dividend re'investment option as per your records is dividend pay'out ONO, to change the dividend re'investment option you can use the modify dividend re'investment hyperlin * /op

%!& d! I "urchase 'r!

#!ur &e( site?

Clic on the lin O&lace (rder O in the MF /rading section* /his will ta e you to all the schemes of the fund* /he details of the scheme are indicated against each scheme* %elect &.-CHA%! in the drop down menu and then clic on >( to place your purchase order* Nou can also select the option for dividend reinvestment through the

purchase order screen* )n case you are an N-), first you need to decide is whether you want repatriation benefit or not* )f you want repatriation benefit, select the Non'&ins N-! account* %elect Non'&ins N-( account if you do not want repatriation benefit* /op

Can I as an NRI (u# Mutual Fund Units in the 4INS acc!unt?


No, you cannot purchase mutual fund units in the &)N% account* Nou can only do so in the Non'&ins account* /op

When &ill I (e a(le t! see

# "urchase details?

/he details of your transactions will be immediately updated in your order boo * An email will also be sent to you and the entry in your portfolio will be displayed within /:@ days* /op

%!& d! I redee

# Mutual Fund sche e units?

Clic on the lin O&lace (rderO in the MF /rading section* /his will display all the scheme units held by you, with details against each scheme* %elect the -!+!!M option in the drop down menu and then clic on >( to place your redemption re3uest* Nou can either redeem a certain amount or specify the number of units held by you* /here is a minimum transaction amount that is indicated against each scheme* A cut off time is also displayed to get that dayFs NAV* /he details of your transactions will be immediately updated in your order boo , an email will be sent and your ban account will be credited after /:@ days 0the date of pay'out would differ for scheme and will not necessarily be /:@ days1* /op

Will TDS (e deducted !n the rede "ti!n !' units? I' #es &hat &ill (e the (asis !' deducti!n !' TDS
/+% is not deducted on the sale proceeds for -esident )ndians* )n case of N-)Fs, /+% will be deducted on the sale proceeds* /he /+% will deducted depending upon whether it is a short'term capital gain or long term capital gains* For short term capital gain the ta# is deducted P @@I while in case of long term capital gains it is deducted P 44I* /op

Where can I see the TDS deducted !n the sale "r!ceeds?


/he /+% deducted for N-) can be seen by Clic ing on the e#ecuted hyperlin against the transaction* Nou will find the complete details of the redemption including the /+% deducted* /op

%!& d! I s&itch 'r!

a "articular sche e?

Clic on the lin O&lace (rderO in the MF /rading section* /his will display all the scheme units held by you, with details against each scheme* %elect the %W)/CH option in the drop down menu and then clic on >( to place your switch re3uest* Clic on the scheme you wish to %witch From* /here is a minimum transaction amount indicated against the scheme* Also the scheme you wish to O%witch /oO carries a minimum transaction amount* /herefore the amount which you will be switching will be higher of the two* /he details of your transactions will be immediately updated in your order boo , an email will be sent showing the O%witch FromO and O%witch /oO units* /he entry in your portfolio will be displayed within /:@ days* %ince this does not involve any transfer of funds, your ban account will not be affected* %witch (ut is treated as redemption* Hence, in case of N-)Fs, /+% will be deducted on %witch out transaction also* /he gross amount after deducting the /+% will be used for switch in /ransaction i*e* units worth e3uivalent to the net amount will be utiliMed to switching in into the desired scheme* /op

%!& d!es the Aut! atic/ S#ste atic In)est ent 4lan +AI4/ SI4, &!r*?
%elect the option for O%ystematic &lansO* %elect the fund name and the scheme* A screen will appear with the details of that scheme similar to that in the &urchase screen* )n addition to these details you will have to fill up the fre3uency with which the investments will be made and the start date* From the date specified a fi#ed amount will be debited to your ban account* Lindly ensure that ade3uate clear funds are available for the %)& to be effective* An email will be sent showing the details of the amount invested and the entry in your portfolio

will be displayed within /:@ days* Nou can however enter into only one plan per scheme* )n case if you do not sufficient funds in your net withdrawal balance for a month, then the %)& would be re2ected for that particular month* /op

%!& d!es the Aut! atic/ S#ste atic Withdra&al 4lan +AW4/SW4, &!r*?
%elect the option for O%ystematic Withdrawal &lanO* %elect the fund name and the scheme* A screen will appear with the details of that scheme similar to that in the -edemption screen* )n addition to these details you will have to fill up the fre3uency with which the withdrawals will be made and the start date* From the date specified a fi#ed amount will be credited to your ban account* An email will be sent showing the details of the amount withdrawn and the entry in your portfolio will be displayed within /:@ days* Nou can however enter into only one plan per scheme* However if a %W&QAW& re3uest is re2ected for insufficient units, then the entire &lan will be scraped automatically* Nou will also receive an e'mail indicating that the plan has been scrapped* /op

Will TDS (e deducted !n di)idend recei)ed?


No, /+% will not be deducted on +ividend payments for both -esident as well as N-)Fs* /op

I' I change

# address6 &hat d! I need t! d!?

For change of address, you will have to send a letter to us with both the old and new address mentioned in it* All the co'holders should sign this letter* )t can be sent by post or fa#ed to us* /op

Can I transact !n a h!lida#?


Nes, Nou can place your re3uest even on a holiday* However, the re3uest would be processed on the ne#t business day and respective NAV would be applicable as per the Mutual FundFs offer document* /op
RSR C$(%!