scheme information document axis bluechip fund an …
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Axis Bluechip Fund 1
SCHEME INFORMATION DOCUMENT
AXIS BLUECHIP FUND An open-ended equity scheme predominantly investing in large cap stocks
Continuous offer for Units at NAV based prices This product is suitable for investors who are seeking*:
• capital appreciation over long term • investment in a diversified portfolio predominantly consisting of equity and equity related
instruments of large cap companies
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Name of Mutual Fund : Axis Mutual Fund Name of Asset Management Company : Axis Asset Management Company Ltd. Name of Trustee Company : Axis Mutual Fund Trustee Ltd. Addresses, Website of the entities : Axis House, 1st Floor, C-2, Wadia International Centre,
Pandurang Budhkar Marg, Worli, Mumbai - 400 025 www.axismf.com
Name of Sponsor : Axis Bank Ltd. The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations or the Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the Asset Management Company (AMC). The Units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document. The Scheme Information Document sets forth concisely the information about the Scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / Investor Service Centres / Website / Distributors or Brokers. The investors are advised to refer to the Statement of Additional Information (SAI) for details of Axis Mutual Fund, Tax and Legal issues and general information on www.axismf.com. SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website.
The Scheme Information Document should be read in conjunction with the SAI and not in isolation.
This Scheme Information Document is dated August 14, 2020.
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TABLE OF CONTENTS
HIGHLIGHTS/ SUMMARY OF THE SCHEME .................................................................................... 3 I. INTRODUCTION ................................................................................................................... 5 A. RISK FACTORS ........................................................................................................................... 5 B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME................................................ 10 C. SPECIAL CONSIDERATIONS, if any ...................................................................................... 11 D. DEFINITIONS ............................................................................................................................ 12 E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY ............................................. 16 II. INFORMATION ABOUT THE SCHEME ............................................................................... 17 A. TYPE OF THE SCHEME ............................................................................................................ 17 B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? ................................................. 17 C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? ............................................................... 17 D. WHERE WILL THE SCHEME INVEST? ...................................................................................... 29 E. WHAT ARE THE INVESTMENT STRATEGIES ............................................................................ 36 F. FUNDAMENTAL ATTRIBUTES .................................................................................................. 46 G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? .......................................... 47 H. WHO MANAGES THE SCHEME? ........................................................................................... 47 I. WHAT ARE THE INVESTMENT RESTRICTIONS? ..................................................................... 48 J. HOW HAS THE SCHEME PERFORMED? ............................................................................... 54 K. INVESTMENTS BY THE AMC ................................................................................................... 55 L. ADDITIONAL SCHEME RELATED DISCLOSURES .................................................................. 55 III. UNITS AND OFFER ............................................................................................................. 57 A. NEW FUND OFFER (NFO) ...................................................................................................... 57 B. ONGOING OFFER DETAILS ................................................................................................... 67 C. PERIODIC DISCLOSURES ..................................................................................................... 107 D. COMPUTATION OF NAV ..................................................................................................... 110 IV. FEES AND EXPENSES ....................................................................................................... 112 A. NEW FUND OFFER (NFO) EXPENSES .................................................................................. 112 B. ANNUAL SCHEME RECURRING EXPENSES ........................................................................ 112 C. LOAD STRUCTURE ................................................................................................................ 115 D. WAIVER OF LOAD FOR DIRECT APPLICATIONS .............................................................. 117 V. RIGHTS OF UNIT HOLDERS .............................................................................................. 118 VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY ................................................................................ 119
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HIGHLIGHTS/ SUMMARY OF THE SCHEME Investment objective To achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities of large cap companies including derivatives. However, there can be no assurance that the investment objective of the Scheme will be achieved. Liquidity The Scheme offers Units for Subscription and Redemption at NAV based prices on all Business Days. Under normal circumstances, the AMC shall dispatch the redemption proceeds within 10 business days from the date of receipt of request from the Unit holder. Benchmark Nifty 50 TRI Transparency/ NAV Disclosure The AMC will calculate and disclose the NAVs on all Business Days. The AMC shall update the NAVs on its website (www.axismf.com) and of the Association of Mutual Funds in India - AMFI (www.amfiindia.com) before 11.00 p.m. on every Business Day. If the NAVs are not available before the commencement of Business Hours on the following day due to any reason, the Mutual Fund shall issue a press release giving reasons and explaining when the Mutual Fund would be able to publish the NAV. The AMC will disclose the portfolio of the Scheme (alongwith ISIN) as on the last day of the month/ half year on the website of the Mutual Fund and AMFI within 10 days from the close of each month/ half year (i.e. 31st March and 30th September) respectively in a user-friendly and downloadable spreadsheet format. Further, AMC shall publish an advertisement, in an all India edition of one national English daily newspaper and in one Hindi newspaper, every half year disclosing the hosting of the half-yearly statement of its schemes portfolio on the website of the Mutual Fund and AMFI and the modes through which unitholder can submit a request for a physical or electronic copy of the statement of scheme portfolios. The AMC will also provide a dashboard, in a comparable, downloadable (spreadsheet) and machine readable format, providing performance and key disclosures like Scheme’s AUM, investment objective, expense ratios, portfolio details, scheme’s past performance etc. on its website. The AMC will make available the Annual Report of the Scheme within four months of the end of the financial year on its website and on the website of AMFI along with a link. Minimum Application Amount Rs. 5,000 and in multiples of Re. 1/- thereafter Minimum Additional Purchase Amount Rs.100 and in multiples of Re. 1/- thereafter Minimum application amount is applicable at the time of creation of new folio and at the time of first investment in a plan. Plans and Options under the Plan(s) of the Scheme Plans Axis Bluechip Fund - Regular Plan Axis Bluechip Fund - Direct Plan
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Options under each plans Growth Dividend (Payout and Reinvestment Facility) Direct Plan Direct Plan is only for investors who purchase/ subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor. Eligible investors / modes for applying All categories of investors (whether existing or new Unitholders) as permitted under the Scheme Information Document of the Scheme are eligible to subscribe under Direct Plan. Investments under Direct Plan can be made through various modes offered by the Fund for investing directly with the Fund {except Platform(s) where investors’ applications for subscription of units are routed through Distributors}. All the plans will have common portfolio. Loads Entry Load: Not Applicable Exit Load: If redeemed / switched-out within 12 months from the date of allotment: For 10% of investments: NIL For remaining investments: 1% If redeemed / switched-out after 12 months from the date of allotment: NIL SEBI vide its circular no. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009 has decided that there shall be no entry load for all Mutual Fund schemes. For more details on Load Structure, please refer paragraph “Load Structure”.
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I. INTRODUCTION A. RISK FACTORS i. Standard Risk Factors • Investment in mutual fund units involves investment risks such as trading volumes,
settlement risk, liquidity risk, default risk including the possible loss of principal. • As the price / value / interest rates of the securities in which the Scheme invests
fluctuates, the value of your investment in the Scheme may go up or down. • Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future
performance of the Scheme. • Axis Bluechip Fund is the name of the Scheme and does not in any manner indicate
either the quality of the Scheme or its future prospects and returns. • The sponsor is not responsible or liable for any loss resulting from the operation of the
Scheme beyond the initial contribution of Rs. 1 lakh made by it towards setting up the Fund.
• Axis Bluechip Fund is not a guaranteed or assured return scheme. Scheme Specific Risk Factors ii. Risks associated with investments in Equities • Equity and equity related securities are volatile and prone to price fluctuations on a daily
basis. The liquidity of investments made in the Scheme may be restricted by trading volumes and settlement periods. Settlement periods may be extended significantly by unforeseen circumstances. The inability of the Scheme to make intended securities purchases, due to settlement problems, could cause the Scheme to miss certain investment opportunities. Similarly, the inability to sell securities held in the Scheme portfolio would result at times, in potential losses to the Scheme, should there be a subsequent decline in the value of securities held in the Scheme portfolio. Also, the value of the Scheme investments may be affected by interest rates, currency exchange rates, changes in law/policies of the government, taxation laws and political, economic or other developments which may have an adverse bearing on individual Securities, a specific sector or all sectors.
• Investments in equity and equity related securities involve a degree of risk and investors should not invest in the equity Schemes unless they can afford to take the risk of losing their investment.
• Securities which are not quoted on the stock exchanges are inherently illiquid in nature and carry a larger liquidity risk in comparison with securities that are listed on the exchanges or offer other exit options to the investors, including put options.
Risks associated with investments in Fixed Income Securities Interest-Rate Risk: Fixed income securities such as government bonds, corporate bonds, and money market instruments and derivatives run price-risk or interest-rate risk. Generally, when interest rates rise, prices of existing fixed income securities fall and when interest rates drop, such prices increase. The extent of fall or rise in the prices depends upon the coupon and maturity of the security. It also depends upon the yield level at which the security is being traded. Re-investment Risk: Investments in fixed income securities carry re-investment risk as interest rates prevailing on the coupon payment or maturity dates may differ from the original coupon of the bond. Basis Risk: The underlying benchmark of a floating rate security or a swap might become less active or may cease to exist and thus may not be able to capture the exact interest rate movements, leading to loss of value of the portfolio.
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Spread Risk: In a floating rate security the coupon is expressed in terms of a spread or mark up over the benchmark rate. In the life of the security this spread may move adversely leading to loss in value of the portfolio. The yield of the underlying benchmark might not change, but the spread of the security over the underlying benchmark might increase leading to loss in value of the security. Liquidity Risk: The liquidity of a bond may change, depending on market conditions leading to changes in the liquidity premium attached to the price of the bond. At the time of selling the security, the security can become illiquid, leading to loss in value of the portfolio. Credit Risk: This is the risk associated with the issuer of a debenture/bond or a money market instrument defaulting on coupon payments or in paying back the principal amount on maturity. Even when there is no default, the price of a security may change with expected changes in the credit rating of the issuer. It is to be noted here that a Government Security is a sovereign security and is the safest. Corporate bonds carry a higher amount of credit risk than Government securities. Within corporate bonds also there are different levels of safety and a bond rated higher by a particular rating agency is safer than a bond rated lower by the same rating agency. Liquidity Risk on account of unlisted securities: The liquidity and valuation of the Scheme investments due to their holdings of unlisted securities may be affected if they have to be sold prior to their target date of divestment. The unlisted security can go down in value before the divestment date and selling of these securities before the divestment date can lead to losses in the portfolio. Settlement Risk: Fixed income securities run the risk of settlement which can adversely affect the ability of the fund house to swiftly execute trading strategies which can lead to adverse movements in NAV Risk associated with Securitized Debt The Scheme may invest in domestic securitized debt such as Asset Backed Securities (ABS) or Mortgage Backed Securities (MBS). ABS are securitized debts where the underlying assets are receivables arising from various loans including automobile loans, personal loans, loans against consumer durables, etc. MBS are securitized debts where the underlying assets are receivables arising from loans backed by mortgage of residential / commercial properties. At present in Indian market, following types of loans are securitized: 1. Auto Loans (cars / commercial vehicles /two wheelers) 2. Residential Mortgages or Housing Loans 3. Consumer Durable Loans 4. Personal Loans 5. Corporate Loans In terms of specific risks attached to securitization, each asset class would have different underlying risks. Residential Mortgages generally have lower default rates than other asset classes, but repossession becomes difficult. On the other hand, repossession and subsequent recovery of commercial vehicles and other auto assets is fairly easier and better compared to mortgages. Asset classes like personal loans, credit card receivables are unsecured and in an economic downturn may witness higher default. A corporate loan/receivable, depend upon the nature of the underlying security for the loan or the nature of the receivable and the risks correspondingly fluctuate. The rating agencies define margins, over collateralisation and guarantees to bring risk in line with similar AAA rated securities. The factors typically analyzed for any pool are as follows:
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a. Assets securitized and Size of the loan: This indicates the kind of assets financed with the loan and the average ticket size of the loan. A very low ticket size might mean more costs in originating and servicing of the assets.
b. Diversification: Diversification across geographical boundaries and ticket sizes might result in lower delinquency
c. Loan to Value Ratio: Indicates how much % value of the asset is financed by borrower’s own equity. The lower this value the better it is. This suggests that where the borrowers own contribution of the asset cost is high; the chances of default are lower.
d. Average seasoning of the pool: This indicates whether borrowers have already displayed repayment discipline. The higher the number, the more superior it is.
The other main risks pertaining to Securitised debt are as follows: Prepayment Risk: This arises when the borrower pays off the loan sooner than expected. When interest rates decline, borrowers tend to pay off high interest loans with money borrowed at a lower interest rate, which shortens the average maturity of ABS. However, there is some prepayment risk even if interest rates rise, such as when an owner pays off a mortgage when the house is sold or an auto loan is paid off when the car is sold. Reinvestment Risk: Since prepayment risk increases when interest rates decline, this also introduces reinvestment risk, which is the risk that the principal can only be reinvested at a lower rate.
Risks associated with investments in Derivatives • The Scheme may invest in derivative products in accordance with and to the extent
permitted under the Regulations and by RBI. Derivative products are specialized instruments that require investment techniques and risk analysis different from those associated with stocks and bonds. The use of a derivative requires an understanding not only of the underlying instrument but of the derivative itself. Trading in derivatives carries a high degree of risk although they are traded at a relatively small amount of margin which provides the possibility of great profit or loss in comparison with the principal investment amount. Thus, derivatives are highly leveraged instruments. Even a small price movement in the underlying security could have an impact on their value and consequently, on the NAV of the Units of the Scheme.
• The derivatives market in India is nascent and does not have the volumes that may be seen in other developed markets, which may result in volatility to the values.
• Investment in derivatives also requires the maintenance of adequate controls to monitor the transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and the ability to forecast price or interest rate movements correctly. Even a small price movement in the underlying security could have an impact on their value and consequently, on the NAV of the Units of the Scheme.
• The Scheme may face execution risk, whereby the rates seen on the screen may not be the rate at which the ultimate execution of the derivative transaction takes place.
• The Scheme may find it difficult or impossible to execute derivative transactions in certain circumstances. For example, when there are insufficient bids or suspension of trading due to price limit or circuit breakers, the Scheme may face a liquidity issue.
• The option buyer's risk is limited to the premium paid, while the risk of an options writer is unlimited. However, the gains of an options writer are limited to the premiums earned.
• The exchange may impose restrictions on exercise of options and may also restrict the exercise of options at certain times in specified circumstances and this could impact the value of the portfolio.
• The writer of a put option bears the risk of loss if the value of the underlying asset declines below the exercise price. The writer of a call option bears a risk of loss if the value of the underlying asset increases above the exercise price, as per extant regulations.
• Investments in index futures face the same risk as the investments in a portfolio of shares representing an index. The extent of loss is the same as in the underlying stocks.
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• The Scheme bears a risk that it may not be able to correctly forecast future market trends or the value of assets, indices or other financial or economic factors in establishing derivative positions for the Scheme.
• The risk of loss in trading futures contracts can be substantial, because of the low margin deposits required, the extremely high degree of leverage involved in futures pricing and the potential high volatility of the futures markets.
• There is the possibility that a loss may be sustained by the portfolio as a result of the failure of another party (usually referred to as the "counter party") to comply with the terms of the derivatives contract. The counter party may default on a transaction before settlement and therefore, the Scheme is compelled to negotiate with another counterparty at the then prevailing (possibly unfavourable) market price.
• Derivatives also carry a market liquidity risk where the derivatives cannot be sold (unwound) at prices that reflect the underlying assets, rates and indices.
• Where derivatives are used for hedging, such use may involve a basis risk where the instrument used as a hedge does not match the movement in the instrument/underlying asset being hedged. The risk may be inter-related also e.g. interest rate movements can affect equity prices, which could influence specific issuer/industry assets.
• Other risks in using derivatives include the risk of mispricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly with underlying assets, rates and indices.
• Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor.
• Execution of investment strategies depends upon the ability of the fund manager(s) to identify such opportunities which may not be available at all times. Identification and execution of the strategies to be pursued by the fund manager(s) involve uncertainty and decision of fund manager(s) may not always be profitable. No assurance can be given that the fund manager(s) will be able to identify or execute such strategies.
• The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments.
The following are certain additional risks involved with use of fixed income derivatives: Interest rate risk: Derivatives carry the risk of adverse changes in the price due to change in interest rates. Liquidity risk: During the life of the derivative, the benchmark might become illiquid and might not be fully capturing the interest rate changes in the market, or the selling, unwinding prices might not reflect the underlying assets, rates and indices, leading to loss of value of the portfolio. Risks associated with Covered Call Strategy Writing call options are highly specialized activities and entail higher than ordinary investment risks. In such investment strategy, the profits from call option writing is capped at the option premium, however the downside depends upon the increase in value of the underlying equity shares. This downside risk is reduced by writing covered call options. The Scheme may write covered call option only in case it has adequate number of underlying equity shares as per regulatory requirement. This would lead to setting aside a portion of investment in underlying equity shares. If covered call options are sold to the maximum extent allowed by regulatory authority, the Scheme may not be able to sell the underlying equity shares immediately if the view changes to sell and exit the stock. The covered call options need to be unwound before the stock positions can be liquidated. This may lead to a loss of opportunity, or can cause exit issues if the strike price at which the call option contracts have been written become illiquid. Hence, the Scheme may not be able to sell the underlying equity shares, which can lead to temporary illiquidity of the underlying equity shares and result in loss of opportunity.
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The writing of covered call option would lead to loss of opportunity due to appreciation in value of the underlying equity shares. Hence, when the appreciation in equity share price is more than the option premium received the Scheme would be at a loss. The total gross exposure related to option premium paid and received must not exceed the regulatory limits of the net assets of the Scheme. This may restrict the ability of Scheme to buy any options. Risks associated with investing in foreign securities/ overseas investments/ offshore securities • Subject to necessary approvals and within the investment objectives of the Scheme, the
Scheme may invest in overseas markets which carry risks related to fluctuations in the foreign exchange rates, the nature of the securities market of the country, repatriation of capital due to exchange controls and political circumstances.
• Since the Scheme would invest only partially in foreign securities, there may not be readily available and widely accepted benchmarks to measure performance of such Scheme. To manage risks associated with foreign currency and interest rate exposure, the Fund may use derivatives for efficient portfolio management and hedging and portfolio rebalancing and in accordance with conditions as may be stipulated under the Regulations and by RBI from time to time.
• Investment in Foreign Securities involves a currency risk. To the extent that the assets of the Scheme will be invested in securities denominated in foreign currencies, the Indian Rupee equivalent of the net assets, distributions and income may be adversely affected by changes in the value of certain foreign currencies relative to the Indian Rupee. The repatriation of capital to India may also be hampered by changes in regulations concerning exchange controls or political circumstances as well as the application to it of other restrictions on investment.
Risks associated with Repo transactions in Corporate Bonds The Scheme may be exposed to counter party risk in case of repo lending transactions in the event of the counterparty failing to honour the repurchase agreement. However, in repo transactions, the collateral may be sold and a loss is realized only if the sale price is less than the repo amount. The risk is further mitigated through over-collateralization (the value of the collateral being more than the repo amount). Risks associated with transaction in Units through stock exchange(s) In respect of transaction in Units of the Scheme through BSE and / or NSE, allotment and redemption of Units on any Business Day will depend upon the order processing / settlement by BSE and / or NSE and their respective clearing corporations on which the Fund has no control. Risks associated with Securities lending The risks in lending portfolio securities, as with other extensions of credit, consist of the failure of another party, to comply with the terms of agreement entered into between the lenders of securities i.e. any scheme and the approved intermediary/counterparty. Such failure to comply can result in the possible loss of rights in the collateral put up by the borrower of the securities, the inability of the approved intermediary/counterparty to return the securities deposited by the lender and the possible loss of any corporate benefits accruing to the lender from the securities deposited with the approved intermediary. The Scheme may not be able to sell such lent securities and this can lead to temporary illiquidity. Risk Factor associated with debt instruments having credit enhancement: The Scheme may invest in debt instruments having credit enhancement backed by equity shares/guarantees or other any assets as collateral. The profile of these issuers tend to be relatively weak and there may be a pledge of shares of a related party to enhance credit quality or guarantees provided or any other asset provided as security acceptable to lenders.
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Where equity shares are provided as collateral there is the risk of sharp price volatility of underlying securities which may lead to erosion in value of collateral which may affect the ability of the fund to enforce collateral and recover capital and interest obligations. Also there is a possibility of guarantor going insolvent which also can impact the recovery value of exposure. In case of credit enhanced structures backed by equity share the liquidity of the underlying shares may be low leading to a lower recovery and a higher impact cost of liquidation. In case of other assets provided recovery value and enforce ability of asset can also be a risk factor which can lower the recovery value. Risks associated with Short Selling The Scheme may enter into short selling transactions, subject to SEBI and RBI Regulations. Short positions carry the risk of losing money and these losses may grow unlimited theoretically if the price of the stock increases without any limit. This may result in major loss to the Scheme. At times, the participants may not be able to cover their short positions, if the price increases substantially. If numbers of short sellers try to cover their position simultaneously, it may lead to disorderly trading in the stock and thereby can briskly escalate the price even further making it difficult or impossible to liquidate short position quickly at reasonable prices. In addition, short selling also carries the risk of inability to borrow the security by the participants thereby requiring the participants to purchase the securities sold short to cover the position even at unreasonable prices. Risk associated with Investments in REITs and InvITs • Price-Risk or Interest-Rate Risk: REITs & InvITs run price-risk or interest-rate risk. Generally,
when interest rates rise, prices of existing securities fall and when interest rates drop, such prices increase. The extent of fall or rise in the prices is a function of the existing coupon, days to maturity and the increase or decrease in the level of interest rates.
• Credit Risk: In simple terms this risk means that the issuer of a debenture/ bond or a money market instrument may default on interest payment or even in paying back the principal amount on maturity. REITs & InvITs are likely to have volatile cash flows as the repayment dates would not necessarily be pre scheduled.
• Liquidity or Marketability Risk: This refers to the ease with which a security can be sold at or near to its valuation yield-to-maturity (YTM). The primary measure of liquidity risk is the spread between the bid price and the offer price quoted by a dealer. As these products are new to the market they are likely to be exposed to liquidity risk.
• Reinvestment Risk: Investments in REITs & InvITs may carry reinvestment risk as interest rates prevailing on the interest or maturity due dates may differ from the original coupon of the bond. Consequently, the proceeds may get invested at a lower rate.
• Risk of lower than expected distributions: The distributions by the REIT or InvIT will be based on the net cash flows available for distribution. The amount of cash available for distribution principally depends upon the amount of cash that the REIT/ InvITs receives as dividends or the interest and principal payments from portfolio assets.
The above are some of the common risks associated with investments in REITs & InvITs. There can be no assurance that investment objectives will be achieved, or that there will be no loss of capital. Investment results may vary substantially on a monthly, quarterly or annual basis. B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME The Scheme shall have a minimum of 20 Investors and no single Investor shall account for more than 25% of the corpus of the Scheme. The aforesaid conditions should be complied with in each calendar quarter on an average basis. In case the Scheme does not have a minimum of 20 Investors on an ongoing basis for each calendar quarter, the provisions of Regulation 39(2)(c) of the SEBI (MF) Regulations would become applicable automatically without any reference from SEBI and accordingly the Scheme shall be wound up and the units would be redeemed at Applicable NAV. If there is a breach of the 25% limit by any Investor over the quarter, a rebalancing period of one month would be allowed and
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thereafter the Investor who is in breach of the rule shall be given 15 days’ notice to redeem his exposure over the 25% limit. Failure on the part of the said investor to redeem his exposure over the 25% limit within the aforesaid 15 days would lead to automatic Redemption by the Mutual Fund at the Applicable NAV on the 15th day of the notice period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in this regard. C. SPECIAL CONSIDERATIONS, if any • Prospective investors should study this Scheme Information Document and Statement of
Additional Information carefully in its entirety and should not construe the contents hereof as advise relating to legal, taxation, financial, investment or any other matters and are advised to consult their legal, tax, financial and other professional advisors to determine possible legal, tax, financial or other considerations of subscribing to or redeeming Units, before making a decision to invest/redeem/hold Units.
• The Scheme related documents i.e. SID/ KIM/ SAI or the units of the Fund are not registered in any jurisdiction including the United States of America nor in any provincial/ territorial jurisdiction in Canada. The distribution of the Scheme related document in certain jurisdictions may be restricted or subject to registration requirements and, accordingly, persons who come into possession of the Scheme related documents are required to inform themselves about, and to observe any such restrictions. No persons receiving a copy of this Scheme related documents or any accompanying application form in such jurisdiction may treat these Scheme related documents or such application form as constituting an invitation to them to subscribe for units, nor should they in any event use any such application form, unless in the relevant jurisdiction such an invitation could lawfully be made to them and such application form could lawfully be used without compliance with any registration or other legal requirements. Accordingly the Scheme related documents do not constitute an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation as per applicable law.
• The AMC, Trustee or the Mutual Fund have not authorized any person to issue any advertisement or to give any information or to make any representations, either oral or written, other than that contained in this Scheme Information Document or the Statement of Additional Information or as is provided by the AMC in connection with this offering. Prospective investors are advised not to rely upon any information or representation not incorporated in the Scheme Information Document or Statement of Additional Information or provided by the AMC as having been authorized by the Mutual Fund, the AMC or the Trustee.
• Redemption due to change in the fundamental attributes of the Scheme or due to any other reasons may entail tax consequences. The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for any such tax consequences that may arise due to such redemptions.
• The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for any of the tax consequences that may arise, in the event that the Scheme is wound up for the reasons and in the manner provided in Statement of Additional Information.
• The tax benefits described in this Scheme Information Document and Statement of Additional Information are as available under the present taxation laws and are available subject to relevant conditions. The information given is included only for general purpose and is based on advise received by the AMC regarding the law and practice currently in force in India as on the date of this Scheme Information Document and the Unit holders should be aware that the relevant fiscal rules or their interpretation may change. As is the case with any investment, there can be no guarantee that the tax position or the proposed tax position prevailing at the time of an investment in the Scheme will endure indefinitely. In view of the individual nature of tax consequences, each Unit holder is advised to consult his / her own professional tax advisor.
• The Mutual Fund may disclose details of the investor’s account and transactions thereunder to those intermediaries whose stamp appears on the application form or who
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have been designated as such by the investor. In addition, the Mutual Fund may disclose such details to the bankers, as may be necessary for the purpose of effecting payments to the investor. The Fund may also disclose such details to regulatory and statutory authorities/bodies as may be required or necessary.
• In case the AMC or its Sponsor or its Shareholders or their affiliates/associates or group companies make substantial investment, either directly or indirectly in the Scheme redemption of Units by these entities may have an adverse impact on the performance of the Scheme. This may also affect the ability of the other Unit holders to redeem their Units.
• As the liquidity of the Scheme investments may sometimes be restricted by trading volumes and settlement periods, the time taken by the Fund for Redemption of Units may be significant in the event of an inordinately large number of Redemption Requests or of a restructuring of the Scheme portfolio. In view of this, the AMC / Trustee has the right to limit redemptions under certain circumstances - please refer to the paragraph “Suspension/Restriction on Redemption of Units of the Scheme.”.
• Pursuant tothe provisions of Prevention of Money Laundering Act, 2002, if after due diligence, the AMC believes that any transaction is suspicious in nature as regards money laundering, on failure to provide required documentation, information, etc. by the Unit holder the AMC shall have absolute discretion to report such suspicious transactions to FIU-IND and / or to freeze the folios of the investor(s), reject any application(s) / allotment of Units.
D. DEFINITIONS "AMC" / "Asset Management Company" / "Investment Manager"
Axis Asset Management Company Ltd., incorporated under the provisions of the Companies Act, 1956 and approved by Securities and Exchange Board of India to act as the Asset Management Company for the scheme(s) of Axis Mutual Fund.
"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 time stamped.
“Book Closure” The time during which the Asset Management Company would temporarily suspend Sale, redemption and Switching of Units.
“Business Day” A day other than: (i) Saturday and Sunday; (ii) A day on which the banks in Mumbai and/or RBI are closed for
business /clearing; (iii) A day on which the National Stock Exchange of India Ltd. and / or
BSE Ltd., Mumbai are closed; (iv) A day which is a public and /or bank Holiday at an Investor Service
Centre/Official Point of Acceptance where the application is received;
(v) A day on which Sale / Redemption / Switching of Units is suspended by the AMC;
(vi) A day on which normal business cannot be transacted due to storms, floods, bandhs, strikes or such other events as the AMC may specify from time to time.
The AMC reserves the right to declare any day as a Business Day or otherwise at any or all Investor Service Centres/ Official Points of Acceptance.
"Business Hours" Presently 9.30 a.m. to 5.30 p.m. on any Business Day or such other time as may be applicable from time to time.
"Custodian" A person who has been granted a certificate of registration to carry on the business of custodian of securities under the Securities and
Axis Bluechip Fund 13
Exchange Board of India (Custodian of Securities) Regulations 1996, which for the time being is Deutsche Bank AG.
"Deed of Trust" The Deed of Trust dated June 27, 2009 made by and between Axis Bank Ltd. and Axis Mutual Fund Trustee Ltd. thereby establishing an irrevocable trust, called Axis Mutual Fund.
"Depository" Depository as defined in the Depositories Act, 1996 (22 of 1996). "Derivative" Derivative includes (i) a security derived from a debt instrument, share,
loan whether secured or unsecured, risk instrument or contract for differences or any other form of security; (ii) a contract which derives its value from the prices, or index of prices, or underlying securities.
"Dividend" Income distributed by the Mutual Fund on the Units. “Dividend Sweep option” / “DSO”
Facility given to the Unit holders to automatically invest the dividend by eligible source scheme into eligible target scheme of the Mutual Fund.
"Equity Related Instruments"
Includes convertible bonds and debentures, convertible preference shares, warrants carrying the right to obtain equity shares, equity derivatives and any other like instrument.
“Foreign Portfolio Investor” / “FPI”
A person who satisfies the eligibility criteria prescribed under regulation 4 of SEBI (Foreign Portfolio Investors) Regulations, 2014 and has been registered under Chapter II of these regulations, which shall be deemed to be an intermediary in terms of the provisions of the Act.
"Floating Rate Debt Instruments"
Floating rate debt instruments are debt securities issued by Central and / or State Government, corporates or PSUs with interest rates that are reset periodically. The periodicity of the interest reset could be daily, monthly, quarterly, half-yearly, annually or any other periodicity that may be mutually agreed with the issuer and the Fund. The interest on the instruments could also be in the nature of fixed basis points over the benchmark gilt yields.
“Foreign Securities”
ADRs / GDRs/ equity / debt securities of overseas companies listed on the recognized stock exchanges overseas or other securities as may be specified and permitted by SEBI and/or RBI from time to time.
"Gilts" / "Government Securities"
Securities created and issued by the Central Government and/or a State Government (including Treasury Bills) or Government Securities as defined in the Public Debt Act, 1944, as amended or re-enacted from time to time.
“GOI” Government of India “Holiday” Holiday means the day(s) on which the banks (including the Reserve
Bank of India) are closed for business or clearing in Mumbai or their functioning is affected due to a strike / bandh call made at any part of the country or due to any other reason.
"Investment Management Agreement"
The agreement dated June 27, 2009 entered into between Axis Mutual Fund Trustee Ltd. and Axis Asset Management Company Ltd., as amended from time to time.
“Infrastructure Investment Trust” / “InvIT”
InvIT shall have the meaning assigned in clause (za) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014.
"Investor Service Centres" / "ISCs"
Offices of Axis Asset Management Company or such other centres / offices as may be designated by the AMC from time to time.
“Large Cap Companies”
1st to 100th company in terms of full market capitalisation. The AMC would adopt the list of stocks prepared by AMFI in accordance with the methodology prescribed by SEBI (or as per any other methodology as may be prescribed by SEBI from time to time). The list of Large Cap companies would be updated every six months based on data as on end of June and December of each year or as
Axis Bluechip Fund 14
may be prescribed by SEBI. The data will be updated by AMC on being made available by AMFI. Subsequent to any updation in the list, the portfolios will be rebalanced (if required), within a period of one month.
"Load" In the case of Redemption / Switch out of a Unit, the sum of money deducted from the Applicable NAV on the Redemption / Switch out (Exit Load) and in the case of Sale / Switch in of a Unit, a sum of money to be paid by the prospective investor on the Sale / Switch in of a Unit (Entry Load) in addition to the Applicable NAV. Presently, entry load cannot be charged by mutual fund schemes.
"Money Market Instruments"
Includes commercial papers, commercial bills, treasury bills, Government securities having an unexpired maturity upto one year, call or notice money, certificate of deposit, usance bills and any other like instruments as specified by the Reserve Bank of India from time to time.
"Mutual Fund" / "the Fund"
Axis Mutual Fund, a trust set up under the provisions of the Indian Trusts Act, 1882.
"Net Asset Value" / "NAV"
Net Asset Value per Unit of the Scheme, calculated in the manner described in this Scheme Information Document or as may be prescribed by the SEBI (MF) Regulations from time to time.
"NRI" A Non-Resident Indian or a Person of Indian Origin residing outside India. "Official Points of Acceptance"
Places, as specified by AMC from time to time where application for Subscription / Redemption / Switch will be accepted on ongoing basis.
“Overseas Citizen of India” / “OCI”
Means a person registered as an Overseas Citizen of India Cardholder by the Central Government under section 7A of The Citizenship Act, 1955.
"Person of Indian Origin"
A citizen of any country other than Bangladesh or Pakistan, if (a) he at any time held an Indian passport; or (b) he or either of his parents or any of his grandparents was a citizen of India by virtue of Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian citizen or person referred to in sub-clause (a) or (b).
"Rating" Rating means an opinion regarding securities, expressed in the form of standard symbols or in any other standardized manner, assigned by a credit rating agency and used by the issuer of such securities, to comply with any requirement of the SEBI (Credit Rating Agencies) Regulations, 1999.
"RBI" Reserve Bank of India, established under the Reserve Bank of India Act, 1934, (2 of 1934)
“Real Estate Investment Trust” / “REIT”
REIT shall have the meaning assigned in clause (zm) of sub-regulation 1 of regulation 2 of the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014.
"Registrar and Transfer Agent" / “Registrar”
KFin Technologies Pvt. Ltd., Hyderabad, currently acting as registrar to the Scheme, or any other Registrar appointed by the AMC from time to time.
"Redemption” / “Repurchase"
Redemption of Units of the Scheme as permitted.
“Regulatory Agency”
GOI, SEBI, RBI or any other authority or agency entitled to issue or give any directions, instructions or guidelines to the Mutual Fund
“Repo” Sale/Purchase of Securities with simultaneous agreement to repurchase / resell them at a later date.
"Statement of Additional Information" / "SAI"
The document issued by Axis Mutual Fund containing details of Axis Mutual Fund, its constitution, and certain tax, legal and general information. SAI is legally a part of the Scheme Information Document.
"Sale” / Sale or allotment of Units to the Unit holder upon subscription by the
Axis Bluechip Fund 15
“Subscription" Investor / applicant under the Scheme. "Scheme" Axis Bluechip Fund “Scheme Information Document”
This document issued by Axis Mutual Fund, offering for Subscription of Units of Axis Bluechip Fund (including Options thereunder)
"SEBI" Securities and Exchange Board of India, established under the Securities and Exchange Board of India Act, 1992.
"SEBI (MF) Regulations" / "Regulations"
Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended from time to time.
"Short Selling" Short selling means selling a stock which the seller does not own at the time of trade.
"Sponsor" Axis Bank "Switch" Redemption of a Unit in any Scheme (including the Plans / options
therein) of the Mutual Fund against purchase of a Unit in another Scheme (including the Plans /options therein) of the Mutual Fund, subject to completion of Lock-in Period, if any.
"Stock Lending" Lending of securities to another person or entity for a fixed period of time, at a negotiated compensation in order to enhance returns of the portfolio.
“Systematic Investment Plan”/ “SIP”
A plan enabling investors to save and invest in the Scheme on a periodic basis submitting post-dated cheques / payment instructions.
“Systematic Transfer Plan” / “STP”
Facility given to the Unit holders to transfer sums on periodic basis from one scheme to another scheme launched by the Mutual Fund from time to time by giving a single instruction.
“Systematic Withdrawal Plan” / “SWP”
Facility given to the Unit holders to withdraw a specified sum of money monthly/quarterly/ half yearly/ annually from his investment in the Scheme.
“Tri Party Repo” Tri-party repo means a repo contract where a third entity (apart from the borrower and lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction.
“Trustee” / “Trustee Company”
Axis Mutual Fund Trustee Ltd., incorporated under the provisions of the Companies Act, 1956 and approved by SEBI to act as the trustee to the Scheme of the Mutual Fund.
"Unit" The interest of the Unit holder which consists of each Unit representing one undivided share in the assets of the Scheme.
"Unit holder" / "Investor"
A person holding Units in the Scheme.
INTERPRETATION For all purposes of this Scheme Information Document, except as otherwise expressly provided or unless the context otherwise requires: • all references to the masculine shall include the feminine and all references, to the
singular shall include the plural and vice-versa. • all references to "dollars" or "$" refer to United States Dollars and "Rs" refer to Indian
Rupees. A "crore" means "ten million" and a "lakh" means a "hundred thousand". • all references to timings relate to Indian Standard Time (IST). • references to a day are to a calendar day including a non-Business Day.
Axis Bluechip Fund 16
E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY It is confirmed that: (i) The Scheme Information Document forwarded to SEBI is in accordance with the SEBI
(Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time.
(ii) All legal requirements connected with the launching of the Scheme as also the guidelines, instructions, etc., issued by the Government and any other competent authority in this behalf, have been duly complied with.
(iii) The disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the Scheme.
(iv) The intermediaries named in the Scheme Information Document and Statement of Additional Information are registered with SEBI and their registration is valid, as on date.
Place: Mumbai Signed: Sd/- Date: August 14, 2020 Name: Darshan Kapadia Designation: Compliance Officer
Axis Bluechip Fund 17
II. INFORMATION ABOUT THE SCHEME A. TYPE OF THE SCHEME An open ended equity scheme predominantly investing in large cap stocks B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? To achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities of Large Cap companies including derivatives. However, there can be no assurance that the investment objective of the Scheme will be achieved. C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? Under normal circumstances, the asset allocation pattern will be:
Instruments Indicative allocations
(% of total assets) Risk Profile
Minimum Maximum High/ Medium/Low
Equity and Equity Related Instruments of Large Cap companies #
80 100 High
Equity and Equity Related Instruments of other companies#
0 20 High
Debt and Money Market Instruments*# 0 20 Low to Medium
Units issued by REITs & InvITs 0 10 Medium to High
#Including derivatives instruments to the extent of 100% of the Net Assets as permitted vide SEBI circular no. DNPD/Cir 29/2005 dated September 14, 2005, SEBI circular no. DNPD/Cir-30/2006 dated January 20, 2006, SEBI circular no. SEBI/DNPD/Cir-31/2006 dated September 22, 2006, SEBI circular no. Cir/ IMD/ DF/ 11/ 2010 dated August 18, 2010, SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2017/13 dated February 20, 2017, SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2017/109 dated September 27, 2017 and SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2019/17 dated January 16, 2019. The Scheme may use derivatives for such purposes as maybe permitted by the Regulations, including for the purpose of hedging and portfolio balancing, based on the opportunities available and subject to guidelines issued by SEBI from time to time. The Scheme may also use fixed income derivative instruments subject to the guidelines as maybe issued by SEBI and RBI and for such purposes as maybe permitted from time to time. *Investment in Securitized debt (excluding foreign securitized debt), if undertaken, would not exceed 20% of the net assets of the Scheme. The Scheme will invest predominantly in Equity and Equity Related Instruments of Large Cap companies. The cumulative gross exposure through equity, debt, units issued by REITs & InvITs and derivative position should not exceed 100% of the net assets of the Scheme in accordance with SEBI circular no. Cir/MD/DF/11/2010 dated August 18, 2010. Investment in Foreign Securities The Scheme may seek investment opportunities in foreign securities including ADRs / GDRs / Foreign equity and debt securities subject to SEBI (MF) Regulations. Such Investment shall not exceed 50% of the net assets of the Scheme.
Axis Bluechip Fund 18
Repo in Corporate debt securities The Scheme may undertake repo transactions in corporate debt securities in accordance with the directions issued by RBI and SEBI from time to time. Such investment shall be made subject to the guidelines which may be prescribed by the Board of Directors of the Asset Management Company and Trustee Company. Stock Lending by the Fund The Scheme shall adhere to the following limits should it engage in Stock Lending: 1. Not more than 25% of the net assets of the Scheme can generally be deployed in Stock
Lending. 2. Not more than 5% of the net assets of the Scheme can generally be deployed in Stock
Lending to any single counter party (as may be applicable). Short Selling by the Fund The Scheme may engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI. Investment in Short Term Deposits Pending deployment of the funds in securities in terms of investment objective of the Scheme, the AMC may park the funds of the Scheme in short term deposits of the Scheduled Commercial Banks, subject to the guidelines issued by SEBI from time to time. The Scheme retains the flexibility to invest across all the securities in the equity, debt and Money Markets Instruments and mutual fund units. The portfolio may hold cash depending on the market condition. Subject to the Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the fund manager; the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short term and for defensive considerations only. In the event of deviations, the fund manager will endeavour to carry out rebalancing within 30 Business Days. Where the portfolio is not rebalanced within 30 Business Days, justification for the same shall be placed before the Investment Review Committee and reasons for the same shall be recorded in writing. The Investment Review committee shall then decide on the course of action. However, at all times the portfolio will adhere to the overall investment objectives of the Scheme. Axis Bluechip Fund, an open ended equity scheme predominantly investing in large cap stocks is a different scheme offered by Axis Mutual Fund and is not a minor modification of any other existing scheme/ product of Axis Mutual Fund.
Axis Bluechip Fund 19
Differentiation with existing open ended equity schemes of Axis Mutual Fund are as follows: Data as on July 31, 2020 (in INR crores)
Name of the existing
scheme
Asset Allocation Pattern (Under normal circumstances)
Primary Investment Objective & Investment Strategy
Differentiation AUM No. of Folios
Axis Long Term Equity Fund
Instruments
Indicative Allocation (% of net assets)
Risk Profile
Minimum
Maximum
Low/ Medium/ High
Equity and equity- related Securities
80% - 100% High
Debt and money market instruments
0% - 20% Low to Medium
Primary Investment Objective: The investment objective of the Scheme is to generate income and long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related Securities. However, there can be no assurance that the investment objective of the Scheme will be achieved.
Investment Strategy: The Scheme will invest in a diversified portfolio of strong growth companies with sustainable business models. Though the benchmark is S&P BSE-200, the investments will not be limited to the companies constituting the benchmark. The portfolios will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a fundamentals based research process to analyse the appreciation potential of each stock in its universe. The universe of stocks is carefully selected to include companies having robust business models and enjoying sustainable competitive advantages as compared to their competitors. The Fund will have the
An open ended equity linked saving scheme with a statutory lock in of 3 year and tax benefit
21,059.97 20,66,228
Axis Bluechip Fund 20
flexibility to invest across the market capitalization spectrum. The Scheme will endeavour to remain fully invested in equity and equity-related instruments at all times.
Axis Midcap Fund
Instruments
Indicative allocations (% of total
assets)
Risk Profile
Minimum
Maximum
High/Medium/ Low
Equity and Equity Related Instruments of Mid-cap companies
65%
100% High
Equity and Equity Related Instruments of non Mid-cap Companies
0% 35%
High
Debt and Money Market Instruments
0% 35%
Low to Medium
Units issued by REITs & InvITs
0 10 Medium to High
Primary Investment Objective: To achieve long term capital appreciation by investing predominantly in equity & equity related instruments of Mid Cap companies. Investment Strategy: Axis Midcap Fund endeavors to generate capital appreciation through an actively managed diversified portfolio of primarily larger mid-cap companies. The portfolio will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a ""Fair value"" based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include companies having a robust business models and enjoying sustainable competitive advantages as compared to their competitors. The Fund will, mainly, invest in mid-cap companies. Mid-cap
An open ended equity scheme predominantly investing in Mid Cap companies
5,869.04 4,62,843
Axis Bluechip Fund 21
companies, as they are in a stage of growth, may be valued higher than their fair value. However, the Fund intends to identify such strong growth companies & take advantage of their future appreciation. The Fund by utilising a holistic risk management strategy will endeavour to manage risks associated with investing in equity markets. The Fund has identified the following risks and designed risk management strategies, which are embedded in the investment process to manage these risks- i. Quality Risk - Risk of investing in unsustainable / weak companies. ii. Price Risk - Risk of overpaying for a company iii. Liquidity Risk - High Impact cost of entry and exit iv. Volatility Risk - Volatility in price due to company or portfolio specific factors v. Event Risk - Price risk due to a company / sector specific or market event
Axis Focused 25 Fund
Instruments
Indicative Allocation (% of net assets)
Risk Profile
Minimum Maximum
Low/ Medium/ High
Equity and Equity Related Instruments (of not
65 100 High
Primary Investment Objective: To generate long term capital appreciation by investing in a concentrated portfolio of equity & equity related instruments of up to 25 companies. Investment Strategy: The scheme aims to generate long term capital appreciation by investing in a concentrated portfolio of equity & equity related
An Open-ended Equity Scheme investing in maximum 25 stocks investing in large cap, mid cap and small cap companies
11,042.41 8,29,585
Axis Bluechip Fund 22
exceeding 25 companies) Debt and Money Market Instruments
0 35 Low to Medium
Units issued by REITs & InvITs
0 10 Medium to High
instruments of up to 25 companies. In order to have a concentrated portfolio, the scheme will follow a bottom up stock selection approach. The portfolio will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a ""Fair value"" based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include companies having a robust business models and enjoying sustainable competitive advantages as compared to their competitors.
Axis Bluechip Fund 23
Axis Bluechip Fund
Instruments
Indicative allocations (% of total
assets)
Risk Profile
Minimum Maximum
High/ Medium/
Low Equity and Equity Related Instruments of Large Cap companies
80 100 High
Equity and Equity Related Instruments of other companies
0 20 High
Debt and Money Market Instruments
0 20 Low to Medium
Units issued by REITs & InvITs
0 10 Medium to High
Primary Investment Objective: To achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities of Large Cap companies including derivatives. However, there can be no assurance that the investment objective of the Scheme will be achieved. Investment Strategy: The Scheme will invest predominantly in Equity and Equity Related Instruments of Large Cap companies with strong growth and sustainable business models, whilst managing risk. The portfolios will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a “Fair value” based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include companies having robust business models and enjoying sustainable competitive advantages as compared to their competitors.
An open-ended equity scheme predominantly investing in large cap stocks
15,963.00 15,10,841
Axis Multicap Fund
Instruments Normal
allocations (% of total assets)
Risk Profile
Primary Investment Objective: To generate long term capital appreciation by investing in a diversified portfolio of equity and
An open ended equity scheme investing across large cap, mid
6,276.25 4,75,921
Axis Bluechip Fund 24
Minimum
Maximum
High/ Medium/ Low
Equity and Equity Related Instruments#$
80 100 High
Debt and Money Market Instruments*
0 20 Low to Medium
Units issued by REITs & InvITs
0 10 Medium to High
equity related instruments across market capitalization. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved Investment Strategy: The Scheme aims to generate capital appreciation by investing in a diversified portfolio of equity & equity related instruments across market capitalization. The Scheme will target undervalued companies that offer opportunities to generate superior capital gains from a medium-to-long term perspective. An indicative set of companies which can offer such potential include – companies whose growth potential is not fully priced by the market, quality companies that are going through near term challenges but with strong long term potential, companies trading at a steep discount to their fair value. The portfolio will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a ""Fair value"" based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include
cap, small cap stocks
Axis Bluechip Fund 25
companies having a robust business models and enjoying sustainable competitive advantages as compared to their competitors.
Axis Small Cap Fund
Instruments
Indicative allocations (% of total
assets)
Risk Profile
Min Max High/ Medium/Low
Equity and Equity related instruments of small cap companies
65
100
High
Equity and Equity Related Instruments of non-small cap Companies
0
35
High
Debt* & Money Market Instruments
0
35
Low to Mediu
m Units issued by REITs & InvITs
0 10 Medium to High
Primary Investment Objective: To generate long-term capital appreciation from a diversified portfolio of predominantly equity & equity related instruments of small cap companies. Investment Strategy: The scheme intends to generate long term capital appreciation from a diversified portfolio of predominantly equity & equity related instruments of small cap companies.
An open ended equity scheme predominantly investing in small cap stocks
2,471.15 1,96,944
Axis Growth Opportunities Fund
Instruments Normal
allocations (% of total assets)
Risk Profile
Minimum
Maximum
High/ Medium/ Low
Equity & Equity Related Instruments of
35 65 High
Primary Investment Objective: To generate long term capital appreciation by investing in a diversified portfolio of Equity & Equity Related Instruments both in India as well as overseas. However, there can be no assurance that the investment objective of the Scheme will be achieved. Investment Strategy
A diversified equity portfolio of securities with current or potentially attractive opportunities from both Indian and overseas markets
1,261.61 74,782
Axis Bluechip Fund 26
Large Cap Stocks #^
Equity & Equity Related Instruments of Mid Cap Stocks #^
35 65 High
Other Equity & Equity Related Instruments
0 30 High
Debt and Money Market Instruments#
0 30 Low to Medium
Units issued by REITs & InvITs
0 10 Medium to High
^ Includes Foreign Equity & Equity related instruments up to 35% of the net assets of the fund. # including derivatives instruments to the extent of 70% of the Net Assets as permitted by the Regulations from time to time.
Equity portfolio will be run as a diversified portfolio with a balanced mix of large and mid cap stocks. The Scheme will look at the 3 pillars while constructing the portfolio:
- High quality portfolio - Sustainable growth across
market cycles - Low churn
Portfolio construction would be a combination of both top down and bottom up approach. The top down approach will be based on macro-economic analysis and will be used to arrive at the geographical market and sectors/themes while the bottom-up process will focus on appreciation potential of individual stocks from a fundamental perspective to arrive at the stock selection. The AMC employs a "Fair value" based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include companies having a robust business models and enjoying sustainable competitive advantages as compared to their competitors. Investment in Foreign Securities will be made to capture potential opportunities in equity markets of developed and/or emerging
Axis Bluechip Fund 27
markets across geographies. Investment could also be made in themes/brands/market leaders present in these specific markets that cannot be played through the domestic economy either because these are not present or the companies are not listed on an exchange in India. The portfolio will have an absolute return focus. That is the fund manager will not look at the market cycles but will try to generate returns while minimizing the potential for downside. Thus the Scheme will have the leeway to take a higher allocation to cash in case the fund manager is not able to find appropriate stocks at acceptable valuations at any time. The Scheme by utilising a holistic risk management strategy will endeavour to manage risks associated with investing in equity markets. The Scheme has identified the following risks and designed risk management strategies, which are embedded in the investment process to manage these risks i. Quality Risk - Risk of investing in unsustainable / weak companies. ii. Price Risk - Risk of overpaying for a company iii. Liquidity Risk - High Impact cost of entry and exit iv. Volatility Risk - Volatility in price due to company or portfolio specific factors
Axis Bluechip Fund 28
v. Event Risk - Price risk due to a company / sector specific or market event
Axis ESG Equity Fund
Instruments Normal
allocations (% of total assets)
Risk Profile
Minimum
Maximum
High/ Medium/ Low
Equity and equity related instruments following Environmental, Social and Governance (ESG) criteria#
80 100
High
Other equities and equity related instruments
0 20
High
Debt & Money Market Instruments 0 20
Low to Medium
Units issued by REIT/InVIT 0 10
Medium to High
Primary Investment Objective: To generate long term capital appreciation by investing in a diversified portfolio of companies demonstrating sustainable practices across Environmental, Social and Governance (ESG) parameters. Investment Strategy ESG represents factors viz. Environmental (such as impact of business on natural resources), Social (such as business having social impact) and Governance (being the way in which the company is run). Quality companies with a competitive advantage, sustainable business model and visibility of earnings growth are the best avenues for long term wealth generation. ESG factors can complement traditional tools of evaluating and identifying quality businesses and thus improve the overall understanding of the company.
An Open ended equity scheme investing in companies following Environment, Social and Governance (ESG) theme
1,724.33 51,653
Axis Bluechip Fund 29
D. WHERE WILL THE SCHEME INVEST? The corpus of the Scheme will be invested in Equity & Equity Related Instruments, Debt Instruments, Money Market Instruments and other permitted securities which will include but not limited to: Equity and Equity Related Instruments 1. Equity share is a security that represents ownership interest in a company. 2. Equity Related Instruments are securities which give the holder of the security right to
receive Equity Shares on pre agreed terms. It includes convertible bonds, convertible debentures, equity warrants, convertible preference shares, etc.
3. Foreign Equity and Equity Related Instrument as may be permitted by SEBI/RBI from time to time.
4. Equity Derivatives are financial instruments, generally traded on an exchange, the price of which is directly dependent upon (i.e., “derived from”) the value of equity shares or equity indices. Derivatives involve the trading of rights or obligations based on the underlying, but do not directly transfer property.
Futures: Futures are exchange-traded contracts to sell or buy financial instruments for future delivery at an agreed price. There is an agreement to buy or sell a specified quantity of financial instrument on a designated future date at a price agreed upon by the buyer and seller at the time of entering into a contract. To make trading possible, the exchange specifies certain standardized features of the contract. A futures contract involves an obligation on both the parties to fulfill the terms of the contract. SEBI has permitted futures contracts on indices and individual stocks with maturity of 1 month, 2 months and 3 months on a rolling basis. The futures contracts are settled on last Thursday (or immediately preceding trading day if Thursday is a trading holiday) of each month. Currently, the futures are settled in cash. The final settlement price is the closing price of the underlying stock(s)/index. Options: Option is a contract which provides the buyer of the option (also called holder) the right, without the obligation, to buy or sell a specified asset at the agreed price on or upto a particular date. For acquiring this privilege, the buyer pays premium (fee) to the seller. The seller on the other hand has the obligation to buy or sell specified asset at the agreed price and for this obligation he receives premium. The premium is determined considering number of factors such as the market price of the underlying asset/security, number of days to expiry, risk free rate of return, strike price of the option and the volatility of the underlying asset. Option contracts are of two types viz: Call Option - The option that gives the buyer the right but not the obligation to buy specified quantity of the underlying asset at the strike price is a call option. The buyer of the call option (known as the holder of call option) can call upon the seller of the option (writer of the option) and buy from him the underlying asset at the agreed price at any time on or before the expiry of the option. The seller (writer of the option) on the other hand has the obligation to sell the underlying asset if the buyer of the call option decides to exercise his option to buy. Put Option – The option that gives the buyer the right but not the obligation to sell is called put option. A Put option gives the holder (buyer) the right to sell specified quantity of the underlying asset at the strike price.
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There are two kind of options based on the date of exercise of right. The first is the European Option which can be exercised only on the maturity date. The second is the American Option which can be exercised on or before the maturity date. Debt Instruments & Money Market Instruments Certificate of Deposit Certificate of Deposit (CD) is a negotiable money market instrument issued by scheduled commercial banks and select all-India Financial Institutions that have been permitted by the RBI to raise short term resources. The maturity period of CDs issued by the Banks is between 7 days to one year, whereas, in case of FIs, maturity is one year to 3 years from the date of issue. Commercial Paper (CP) Commercial Paper is an unsecured negotiable money market instrument issued in the form of a promissory note, generally issued by the corporates, primary dealers and all India Financial Institutions as an alternative source of short term borrowings. CP is traded in secondary market and can be freely bought and sold before maturity. Treasury Bill (T-Bills) Treasury Bills are issued by the Government of India to meet their short term borrowing requirements. T-Bills are issued for maturities of 14 days, 91 days, 182 days and 364 days. The Scheme may also invest in Cash Management Bill (CMB) issued by the Government of India to meet their short term borrowing requirements. CMB are generally issued for maturities of less than 91 days. Commercial Usance Bills Bill (bills of exchange/promissory notes of public sector and private sector corporate entities) Rediscounting, usance bills and commercial bills. Repos Repo (Repurchase Agreement) or Reverse Repo is a transaction in which two parties agree to sell and purchase the same security with an agreement to purchase or sell the same security at a mutually decided future date and price. The transaction results in collateralized borrowing or lending of funds. Presently in India, corporate debt securities, Government Securities, State Government Securities and T-Bills are eligible for Repo/ Reverse Repo. Tri-party repo means a repo contract where a third entity (apart from the borrower and lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction. The Scheme may undertake repo or reverse repo transactions in accordance with the directions issued by RBI and SEBI from time to time. Such investment shall be made subject to the guidelines which may be prescribed by the Board of Directors of the Asset Management Company and Trustee Company. Securities created and issued by the Central and State Governments as may be permitted by RBI, securities guaranteed by the Central and State Governments (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills). State Government securities (popularly known as State Development Loans or SDLs) are issued by the respective State Government in co-ordination with the RBI. Non-Convertible Debentures and Bonds Non-convertible debentures as well as bonds are securities issued by companies / institutions promoted / owned by the Central or State Governments and statutory bodies which may or
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may not carry a Central/State Government guarantee, Public and private sector banks, all India Financial Institutions and Private Sector Companies. These instruments may be secured or unsecured against the assets of the Company and generally issued to meet the short term and long term fund requirements. These instruments may have fixed or floating rate coupon. The Scheme may also invest in the non-convertible part of convertible debt securities. Real Estate Investment Trust (REITs) & Infrastructure Investment Trust (InvIT) REIT/ InvITs is a trust which holds real estate or infrastructure assets respectively which is managed by an investment manager. The unitholders in the trust have proportional interest in the underlying holdings of the trust. Securitized Assets Securitization is a structured finance process which involves pooling and repackaging of cashflow producing financial assets into securities that are then sold to investors. They are termed as Asset Backed Securities (ABS) or Mortgage Backed Securities (MBS). ABS are backed by other assets such as credit card, automobile or consumer loan receivables, retail installment loans or participations in pools of leases. Credit support for these securities may be based on the underlying assets and/or provided through credit enhancements by a third party. MBS is an asset backed security whose cash flows are backed by the principal and interest payments of a set of mortgage loans. Such Mortgage could be either residential or commercial properties. ABS/MBS instrument reflect the undivided interest in the underlying assets and do not represent the obligation of the issuer of ABS/MBS or the originator of underlying receivables. Securitization often utilizes the services of SPV. Pass through Certificate (PTC) Pay through or other Participation Certificates represents beneficial interest in an underlying pool of cash flows. These cash flows represent dues against single or multiple loans originated by the sellers of these loans. These loans are given by banks or financial institutions to corporates. PTCs may be backed, but not exclusively, by receivables of personal loans, car loans, two wheeler loans and other assets subject to applicable regulations. The following are certain additional disclosures w.r.t. investment in securitized debt: 1. How the risk profile of securitized debt fits into the risk appetite of the Scheme Securitized debt is a form of conversion of normally non-tradable loans to transferable securities. This is done by assigning the loans to a special purpose vehicle (a trust), which in turn issues Pass-Through-Certificates (PTCs). These PTCs are transferable securities with fixed income characteristics. The risk of investing in securitized debt is similar to investing in debt securities. However, it differs in two respects. Typically, the liquidity of securitized debt is less than similar debt securities. For certain types of securitized debt (backed by mortgages, personal loans, credit card debt, etc.), there is an additional pre-payment risk. Pre-payment risk refers to the possibility that loans are repaid before they are due, which may reduce returns if the re-investment rates are lower than initially envisaged. Because of these additional risks, securitized debt typically offers higher yields than debt securities of similar credit rating and maturity. If the fund manager judges that the additional risks are suitably compensated by the higher returns, he may invest in securitized debt up to the limits specified in the asset allocation table above. 2. Policy relating to originators based on nature of originator, track record, NPAs, losses in
earlier securitized debt, etc.
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The originator is the person who has initially given the loan. The originator is also usually responsible for servicing the loan (i.e. collecting the interest and principal payments). An analysis of the originator is especially important in case of retail loans as this affects the credit quality and servicing of the PTC. The key risk is that of the underlying assets and not of the originator. For example, losses or performance of earlier issuances does not indicate quality of current series. However, such past performance may be used as a guide to evaluate the loan standards, servicing capability and performance of the originator. Originators may be: Banks, Non-Banking Finance Companies, Housing Finance Companies, etc. The fund manager / credit analyst evaluates originators based on the following parameters • Track record • Willingness to pay, through credit enhancement facilities etc. • Ability to pay • Business risk assessment, wherein following factors are considered:
- Outlook for the economy (domestic and global) - Outlook for the industry - Company specific factors
In addition, a detailed review and assessment of rating rationale is done including interactions with the originator as well as the credit rating agency. The following additional evaluation parameters are used as applicable for the originator / underlying issuer for pool loan and single loan securitization transactions: • Default track record/ frequent alteration of redemption conditions / covenants • High leverage ratios of the ultimate borrower (for single-sell downs) – both on a
standalone basis as well on a consolidated level/ group level • Higher proportion of reschedulement of underlying assets of the pool or loan, as the case
may be • Higher proportion of overdue assets of the pool or the underlying loan, as the case may
be • Poor reputation in market • Insufficient track record of servicing of the pool or the loan, as the case may be. 3. Risk mitigation strategies for investments with each kind of originator An analysis of the originator is especially important in case of retail loans as the size and reach affects the credit quality and servicing of the PTC. In addition, the quality of the collection process, infrastructure and follow-up mechanism; quality of MIS; and credit enhancement mechanism are key risk mitigants for the better originators / servicers. In case of securitization involving single loans or a small pool of loans, the credit risk of the underlying borrower is analyzed. In case of diversified pools of loans, the overall characteristic of the loans is analyzed to determine the credit risk. The credit analyst looks at ageing (i.e. how long the loan has been with the originator before securitization) as one way of evaluating the performance potential of the PTC. Securitization transactions may include some risk mitigants (to reduce credit risk). These may include interest subvention (difference in interest rates on the underlying loans and the PTC serving as margin against defaults), overcollateralization (issue of PTCs of lesser value than the underlying loans, thus even if some loans default, the PTC continues to remain protected), presence of an equity / subordinate tranche (issue of PTCs of differing seniority when it comes to repayment - the senior tranches get paid before the junior tranche) and / or guarantees. 4. The level of diversification with respect to the underlying assets, and risk mitigation
measures for less diversified investments
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In case of securitization involving single loans or a small pool of loans, the credit risk of the borrower is analyzed. In case of diversified pools of loans, the overall characteristic of the loans is analyzed to determine the credit risk. The credit analyst looks at ageing (i.e. how long the loan has been with the originator before securitization) as one way of judging the performance potential of the PTC. Additional risk mitigants may include interest subvention, over collateralization, presence of an equity / subordinate tranche and / or guarantees. The credit analyst also uses analyses by credit rating agencies on the risk profile of the securitized debt. Currently, the following parameters are used while evaluating investment decision relating to a pool securitization transaction. The Investment Review Committee may revise the parameters from time to time. Characteristics/ Type of Pool
Mortgage Loan
Commercial Vehicle and Construction Equipment
CAR 2 wheelers
Micro Finance Pools *
Personal Loans *
Single Sell Downs
Others
Approximate Average maturity (in Months)
Up to 10 years
Up to 3 years Up to 3 years
Up to 3 years
NA NA Refer Note 1
Refer Note 2
Collateral margin (including cash guarantees, excess interest spread, subordinate tranche)
>10% >10% >10% >10% NA NA “ “
Average Loan to Value Ratio
<90% <80% <80% <80% NA NA “ “
Average seasoning of the Pool
>3 months
>3 months >3 months
>3 months
NA NA “ “
Maximum single exposure range
<1% <1% <1% <1% NA NA “ “
Average single exposure range %
<1% <1% <1% <1% NA NA “ “
* Currently, the Scheme will not invest in these types of securitized debt Note 1: In case of securitization involving single loans or a small pool of loans, the credit risk of the borrower is analyzed. The investment limits applicable to the underlying borrower are applied to the single loan sell-down. Note 2: Other investments will be decided on a case-to-case basis The credit analyst may consider the following risk mitigating measures in his analysis of the securitized debt: • Size of the loan • Average original maturity of the pool • Loan to Value Ratio • Average seasoning of the pool • Default rate distribution • Geographical Distribution • Credit enhancement facility • Liquid facility
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• Structure of the pool 5. Minimum retention period of the debt by originator prior to securitization Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the "true sale" criteria including credit enhancement and liquidity enhancements. In addition, RBI has proposed minimum holding period of between nine and twelve months for assets before they can be securitized. The minimum holding period depends on the tenor of the securitization transaction. The Scheme will invest in securitized debts that are compliant with the laws and regulations. 6. Minimum retention percentage by originator of debts to be securitized Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the "true sale" criteria including credit enhancement and liquidity enhancements, including maximum exposure by the originator in the PTCs. In addition, RBI has proposed minimum retention requirement of between five and ten percent of the book value of the loans by the originator. The minimum retention requirement depends on the tenor and structure of the securitization transaction. The Fund will invest in securitized debts that are compliant with the laws and regulations. 7. The mechanism to tackle conflict of interest when the mutual fund invests in securitized
debt of an originator and the originator in turn makes investments in that particular scheme of the fund
The key risk is securitized debt relates to the underlying borrowers and not the originator. In a securitization transaction, the originator is the seller of the debt(s) and the fund is the buyer. However, the originator is also usually responsible for servicing the loan (i.e. collecting the interest and principal payments). As the originators may also invest in the scheme, the fund manager shall ensure that the investment decision is based on parameters as set by the Investment Review Committee (IRC) of the Asset Management Company and IRC shall review the same at regular interval. 8. The resources and mechanism of individual risk assessment with the AMC for monitoring
investment in securitized debt The fund management team including the credit analyst has the experience to analyze securitized debt. In addition, credit research agencies provide analysis of individual instruments and pools. On an on-going basis (typically monthly) the servicer provides reports regarding the performance of the pool. These reports would form the base for ongoing evaluation where applicable. In addition, rating reports indicating rating changes would be monitored for changes in rating agency opinion of the credit risk. Debt derivative instruments Interest Rate Swap An Interest Rate Swap (IRS) is a financial contract between two parties exchanging or swapping a stream of interest payments for a “notional principal” amount on multiple occasions during a specified period. Such contracts generally involve exchange of a “fixed to floating” or “floating to fixed rate” of interest. Accordingly, on each payment date that occurs during the swap period, cash payments based on fixed/ floating and floating rates are made by the parties to one another. Forward Rate Agreement A Forward Rate Agreement (FRA) is a financial contract between two parties to exchange interest payments for a ‘notional principal’ amount on settlement date, for a specified period from start date to maturity date. Accordingly, on the settlement date, cash payments based on contract (fixed) and the settlement rate, are made by the parties to one another.
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The settlement rate is the agreed bench-mark/ reference rate prevailing on the settlement date. Interest Rate Futures: A futures contract is a standardized, legally binding agreement to buy or sell a commodity or a financial instrument in a designated future month at a market determined price (the futures price) by the buyer and seller. The contracts are traded on a futures exchange. An Interest Rate Future is a futures contract with an interest bearing instrument as the underlying asset. Characteristics of Interest Rate Futures 1. Obligation to buy or sell a bond at a future date 2. Standardized contract 3. Exchange traded 4. Physical settlement 5. Daily mark to market Foreign Securities The Scheme may also invest in suitable investment avenues in foreign securities in overseas financial markets for the purpose of diversification, commensurate with the Scheme objectives and subject to necessary stipulations by SEBI / RBI. Towards this end, the Mutual Fund may also appoint overseas investment advisors and other service providers, to the extent permissible under the Regulations. The Scheme may, with the approval of SEBI / RBI, where required invest in: • ADRs (American Depository Receipts)/ GDRs (Global Depository Receipts) issued by
Indian or foreign companies • Equity of overseas companies listed on recognized stock exchanges overseas • Initial and follow on public offerings for listing at recognized stock exchanges overseas • Foreign debt securities in the countries with fully convertible currencies, short term as well
as long term debt instruments with rating not below investment grade by accredited/registered credit rating agencies
• Money market instruments rated not below investment grade • Repos in the form of investment, where the counterparty is rated not below investment
grade; repos shall not however, involve any borrowing of funds by the mutual funds • Government securities where the countries are rated not below investment grade • Derivatives traded on recognized stock exchanges overseas only for hedging and
portfolio balancing with underlying as securities • Short term deposits with banks overseas where the issuer is rated not below investment
grade • Units/securities issued by overseas mutual funds or unit trusts registered with overseas
regulators and investing in (a) aforesaid securities, or (b) unlisted overseas securities (not exceeding 10% of their net assets).
Note: The Scheme will not invest in foreign securitized debt. As per SEBI circular no. SEBI/IMD/CIR No.7/104753/07 dated September 26, 2007, mutual funds can make overseas investments (other than overseas ETF) subject to a maximum of US $300 million and in overseas ETF subject to a maximum $50 million or such limits as may be prescribed by SEBI from time to time. Subject to the approval of RBI / SEBI and conditions as may be prescribed by them, the Mutual Fund may open one or more foreign currency accounts abroad either directly, or through the custodian/sub-custodian, to facilitate investments and to enter into/deal in forward currency contracts, currency futures, interest rate futures / swaps, currency options for the purpose of hedging the risks of assets of a
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portfolio or for its efficient management. However, the use of such instruments shall be as permitted from time to time. All the requirement of the SEBI circular dated September 26, 2007, would be adhered to by the AMC for investment in foreign securities. Investment in overseas securities shall be made in accordance with the requirements stipulated by SEBI and RBI from time to time. Units of Mutual Fund schemes The Scheme may invest in other schemes managed by the AMC or in the schemes of any other mutual funds in conformity with the investment objective of the Scheme and in terms of the prevailing SEBI (MF) Regulations. Short Term Deposits Pending deployment of funds as per the investment objective of the Scheme, the funds may be parked in short term deposits of the Scheduled Commercial Banks, subject to guidelines and limits specified by SEBI. The securities / instruments mentioned above and such other securities the Scheme is permitted to invest in could be listed, unlisted, privately placed, secured, unsecured, rated or unrated and of any maturity. The securities may be acquired through initial public offering (IPOs), secondary market, private placement, rights offers, negotiated deals, etc. Further investments in debentures, bonds and other fixed income securities will be in instruments which have been assigned investment grade rating by the Credit Rating Agency. Investment in unrated debt instruments shall be subject to complying with the norms as specified by Board from time to time. For applicable regulatory investment limits please refer paragraph "Investment Restrictions”. Details of various derivative instruments along with derivative strategies have been provided under the paragraph “Derivatives Strategy”.
The Fund Manager may invest in any other security as may be permitted from time to time and which are in line with the investment objectives of the Scheme. E. WHAT ARE THE INVESTMENT STRATEGIES The Scheme will invest predominantly in Equity and Equity Related Instruments of Large Cap companies with strong growth and sustainable business models, whilst managing risk. The portfolios will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a “Fair value” based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include companies having robust business models and enjoying sustainable competitive advantages as compared to their competitors. The Schemes portfolio will be managed actively, with an objective to provide to the investor, a diversified portfolio of strong growth companies, reflecting our most attractive investment ideas, at all points in time. The Scheme by utilizing a holistic risk management strategy will endeavour to manage risks associated with investing in equity markets. The Scheme has identified the following risks and
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designed risk management strategies, which are embedded in the investment process to manage these risks: i) Quality risk – Risk of investing in unsustainable/weak companies ii) Price risk - Risk of overpaying for a company iii) Liquidity risk- High impact cost of entry and exit iv) Volatility risk –Volatility in price due to company or portfolio specific factors v) Event risk - Price risk due to a company/sector specific or market event PORTFOLIO TURNOVER The Scheme is an open-ended scheme. It is expected that there would be a number of subscriptions and redemptions on a daily basis. Consequently, it is difficult to estimate with any reasonable measure of accuracy, the likely turnover in the portfolio. There may be an increase in transaction cost such as brokerage paid, if trading is done frequently. However, the cost would be negligible as compared to the total expenses of the Scheme. Frequent trading may increase the profits which will offset the increase in costs. The fund manager will endeavor to optimize portfolio turnover to maximize gains and minimize risks keeping in mind the cost associated with it. However, it is difficult to estimate with reasonable accuracy, the likely turnover in the portfolio of the Scheme. The Scheme has no specific target relating to portfolio turnover RISK CONTROL Risk is an inherent part of the investment function. Effective Risk Management is critical to Fund Management for achieving financial soundness. Investments by the Scheme shall be made as per the investment objectives of the Scheme and provisions of the Regulations. Risk control would include managing risk in order to keep it in line with the investment objective of the Scheme. The AMC has incorporated adequate safeguards to manage risk in the portfolio construction process. The risk control process involves identifying & measuring the risk through various Risk Measurement Tools. Further, the AMC has implemented the Bloomberg Portfolio Management System as Front Office System (FOS) for managing risk. The system has inbuilt feature which enables the Fund Manager to calculate various risk ratios and analyze the same. The AMC has experienced investment professionals to help limit investment universe to carefully selected high quality businesses. The fund manager would also consider hedging the portfolios in case of predictable events with uncertain outcomes. The Scheme would invest in a diversified portfolio of equity and equity related securities which would help alleviate the sector related concentration risk. DERIVATIVES STRATEGY The Scheme may invest in various derivative instruments which are permissible under the applicable regulations. Such investments shall be subject to the investment objective and strategy of the Scheme and the internal limits if any, as laid down from time to time. These include but are not limited to futures (both stock and index) and options (stock and index). Derivatives are financial contracts of pre-determined fixed duration, like stock futures/options and index futures and options, whose values are derived from the value of an underlying primary financial instrument such as: interest rates, exchange rates, commodities, and equities.
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Derivatives can be either exchange traded or can be over the counter (OTC). Exchange traded derivatives are listed and traded on stock exchanges whereas OTC derivative transactions are generally structured between two counterparties. The objectives of the various strategies include earning option premium/ hedge stock / portfolio against market gyrations. The risks associated with derivatives are similar to those associated with underlying investments. The additional risks of using derivative strategies could be on account of: • Illiquidity; • Potential mis - pricing of the Futures/Options; • Lack of opportunity; • Inability of derivatives to correlate perfectly with the underlying (Indices, Assets,
Exchange Rates); • Cost of hedge can be higher than adverse impact of market movements; • An exposure to derivatives in excess of the hedging requirements can lead to losses; • An exposure to derivatives can also limit the profits from a genuine investment
transaction; • The prices which are seen on the screen need not be the same at which execution will
take place. • In case of option writing, the downside of the strategy could be more than the option
premium earned.
For detailed risks associated with use of derivatives, please refer paragraph “Scheme Specific Risk Factors”. Exchange traded derivatives Contracts in stocks and indices in India are currently cash settled at the time of maturity. Derivatives allowed for mutual funds are only exchange traded and not OTC. Concepts and Examples of derivatives which may be used by the fund manager: Futures Futures (Index & Stocks) are forward contracts traded on the exchanges & have been introduced both by BSE and NSE. Generally, futures of 1 month (near month), 2 months (next month) and 3 months (far month) are presently traded on these exchanges. These futures expire on the last working Thursday of the respective months. Illustration with Index Futures In case the Nifty 50 near month future contract is trading at say, Rs. 3,510, and the fund manager has a view that it will depreciate going forward; the Scheme can initiate a sale transaction of Nifty futures at Rs. 3,510 without holding a portfolio of equity stocks or any other underlying long equity position. Once the price falls to Rs. 3,400 after say, 20 days, the Scheme can initiate a square-up transaction by buying the said futures and book a profit of Rs. 110. Correspondingly, if the fund manager has a positive view he can initiate a long position in the index / stock futures without an underlying cash/ cash equivalent subject to the extant regulations. There are futures based on stock indices as mentioned above as also futures based on individual stocks. The profitability of index /stock future as compared to an individual security will inter-alia depends upon: • The carrying cost, • The interest available on surplus funds, and
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• The transaction cost. Example of a typical future trade and the associated costs
Particulars Index Future
Actual Purchase of Stocks
Index at the beginning of the month 3500 3500 Price of 1 month future 3510 A. Execution cost: Carry and other index future costs 10 B. Brokerage cost: Assumed at 7.02 8.75 0.2% of Index Future 0.25% for spot Stocks C. Gains on surplus fund: (Assumed 8% p.a. return on 85% of the money left after paying 15% margin) (8%*3500*85%*30 days/ 365)
19.56 0
Total Cost (A+B-C) -2.54 8.75 Some strategies that employ stock /index futures and their objectives: (a) Arbitrage (1) Selling spot and buying future: In case the Scheme holds the stock of a company “A” at say Rs. 100 while in the futures market it trades at a discount to the spot price say at Rs. 98, then the Scheme may sell the stock and buy the futures. On the date of expiry of the stock future, the Scheme may reverse the transactions (i.e. buying at spot & selling futures) and earn a risk-free Rs. 2 (2% absolute) on its holdings without any dilution of the view of the fund manager on the underlying stock. Further, the Scheme can still benefit from any movement of the price in the upward direction, i.e. if on the date of expiry of the futures, the stock trades at Rs. 110 which would be the price of the futures too, the Scheme will have a benefit of Rs 10 whereby the Scheme gets the 10% upside movement together with the 2% benefit on the arbitrage and thus getting a total return of 12%. The corresponding return in case of holding the stock would have been 10%. Note: The same strategy can be replicated with a basket of Nifty- 50 stocks (Synthetic Nifty) and the Nifty future index. (2) Buying spot and selling future: Where the stock of a company “A” is trading in the spot market at Rs. 100 while it trades at Rs. 102 in the futures market, then the Scheme may buy the stock at spot and sell in the futures market thereby earning Rs. 2. Buying the stock in cash market and selling the futures results into a hedge where the Scheme has locked in a spread and is not affected by the price movement of cash market and futures market. The arbitrage position can be continued till expiry of the future contracts when there is a convergence between the cash market and the futures market. This convergence enables the Scheme to generate the arbitrage return locked in earlier. Risk: On the date of expiry, when the arbitrage is to be unwound, it is not necessary for the stock price and its future contract to coincide. There could be a discrepancy in their prices even a minute before the market closes. Thus, there is a possibility that the arbitrage strategy gets unwound at different prices. (b) Buying/ Selling Stock future:
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When the Scheme wants to initiate a long position in a stock whose spot price is at say, Rs.100 and futures is at 98, then the Scheme may just buy the futures contract instead of the spot thereby benefiting from a lower cost. In case the Scheme has a bearish view on a stock which is trading in the spot market at Rs.98 and the futures market at say Rs. 100, the Scheme may subject to regulations, initiate a short position in the futures contract. In case the prices align with the view and the price depreciates to say Rs. 90, the Scheme can square up the short position thereby earning a profit of Rs.10 vis-a-vis a fall in stock price of Rs. 8. Risk: There is risk of not being able to correctly forecast future market trends or the value of assets, indices or other financial or economic factors in establishing derivative positions for the Scheme. The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments. The risk of loss in trading futures contracts can be substantial, because of the low margin deposits required, the extremely high degree of leverage involved in futures pricing and the potential high volatility of the futures markets. Investments in index futures face the same risk as the investments in a portfolio of shares representing an index. The extent of loss is the same as in the underlying stocks. (c) Hedging: The Scheme may use exchange-traded derivatives to hedge the equity portfolio. Both index and stock futures and options may be used to hedge the stocks in the portfolio. Risk: This may involve a basic risk where the instrument used as a hedge does not match the movement in the instrument/underlying asset being hedged. The risk may be inter-related also e.g. interest rate movements can affect equity prices, which could influence specific issuer/industry assets. (d) Alpha Strategy: The Scheme will seek to generate alpha by superior stock selection and removing market risks by selling appropriate index. For example, one can seek to generate positive alpha by buying a bank stock and selling Bank Nifty future. Risk: Execution of these strategies depends upon the ability of the fund manager to identify and execute based on such opportunities. These involve significant uncertainties and decision of fund manager may not always be profitable. No assurance can be given that the fund manager will be able to identify or execute such strategies. Option Contracts (Stock and Index) An Option gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed-upon price during a certain period of time or on a specific date. Options are used to manage risk or as an investment to generate income. The price at which underlying security is contracted to be purchased or sold is called the Strike Price. Options that can be exercised on or before the expiration date are called American Options while, Options that can be exercised only on the expiration date are called European Options. Options Risk / Return Pay-off Table
Stock / Index Options Buy Call Sell Call Buy Put Sell Put 1 View on underlying Positive Negative Negative Positive 2 Premium Pay Receive Pay Receive 3 Risk Potential Limited to
premium paid Unlimited Limited to
premium paid Unlimited
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4 Return Potential Unlimited Premium Received
Unlimited Premium Received
Option contracts are of following two types - Call and Put: Call Option: A call option gives the buyer, the right to buy specified quantity of the underlying asset at the set strike price on or before expiration date and the seller (writer) of call option however, has the obligation to sell the underlying asset if the buyer of the call option decides to exercise the option to buy. Put Option: A put option gives the buyer the right to sell specified quantity of the underlying asset at the set strike price on or before expiration date and the seller (writer) of put option however, has the obligation to buy the underlying asset if the buyer of the put option decides to exercise his option to sell. Risk: The options buyer's risk is limited to the premium paid. However the gains of an options writer are limited to the premiums earned. The exchange may impose restrictions on exercise of options and may also restrict the exercise of options at certain times in specified circumstances and this could impact the value of the portfolio. The writer of a call option bears a risk of loss if the value of the underlying asset increases above the exercise price. The Scheme bears a risk that it may not be able to correctly forecast future market trends or the value of assets, indices or other financial or economic factors in establishing derivative positions for the Scheme. Index Options / Stock Options Index options / Stock options are termed to be an efficient way of buying / selling an index/stock compared to buying / selling a portfolio of physical shares representing an index for ease of execution and settlement. The participation can be done by buying / selling either Index futures or by buying a call/put option. The risk are also different when index /stock futures are bought/sold vis-a-vis index/ stocks options as in case of an index future there is a mark to market variation and the risk is much higher as compared to buying an option, where the risk is limited to the extent of premium paid. The illustration below explains how one can gain using Index call / put option. These same principles of profit / loss in an Index option apply in totality to that for a stock option. Call Option Suppose an investor buys a Call option on 1 lot of Nifty 50 (Lot Size: 50 units) • Nifty index (European option). • Nifty 1 Lot Size: 50 units • Spot Price (S): 3500 • Strike Price (x): 3550 (Out-of-Money Call Option) • Premium: 100 Total Amount paid by the investor as premium [50*100] = Rs. 5,000 There are two possibilities i.e. either the index moves up over the strike price or remains below the strike price. Case 1- The index goes up • An investor sells the Nifty Option described above before expiry: Suppose the Nifty 50 Index moves up to 3600 in the spot market and the premium has moved to Rs 200 and there are 15 days more left for the expiry. The investor decides to reverse his position in the market by selling his 1 Nifty call option as the option now is In the Money.
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His gains are as follows: • Nifty Spot: 3600 • Current Premium: Rs.200 • Premium paid: Rs.100 • Net Gain: Rs.200- Rs.100 = Rs.100 per unit • Total gain on 1 lot of Nifty (50 units) = Rs.5,000 (50*100) In this case the premium of Rs.200 has an intrinsic value of Rs.50 per unit and the remaining Rs.150 is the time value of the option. • An investor exercises the Nifty Option at expiry Suppose the Nifty index moves up to 3700 in the spot market on the expiry day and the investor decides to reverse his position in the market by exercising the Nifty call option as the option now is In The Money. His gains are as follows: • Nifty Spot: 3700 • Premium paid: Rs.100 • Exercise Price: 3550 • Receivable on exercise: 3700-3550 = 150 • Total Gain: Rs.2500 {(150-100)*50} In this case the realised gain is only the intrinsic value, which is Rs.50, and there is no time value. Case 2 - The Nifty index moves to any level below 3550 Then the investor does not gain anything but on the other hand his loss is limited to the premium paid: Net Loss is Rs. 5,000 (Loss is capped to the extent of Premium Paid) (Rs. 100 Premium paid*Lot Size: 50 units). Put Option Suppose an investor buys a Put option on 1 lot of Nifty 50. • Nifty 1 Lot Size: 50 units • Spot Price (S): 3,500 • Strike Price (x): 3,s450 (Out-of-Money Put Option) • Premium: Rs. 30 • Total Amount paid by the investor as premium [50*30] = Rs. 1,500 There are two possibilities i.e. either the index moves over the strike price or moves below the strike price. Let us analyze these scenarios. Case 1 - The index goes down • An investor sells the Nifty Option before expiry: Suppose the Nifty 50 Index moves down to 3400 in the spot market and the premium has moved to Rs. 80 and there are 15 days more left for the expiry. The investor decides to reverse his position in the market by selling his 1 Nifty Put Option as the option now is In The Money. His gains are as follows: • Nifty Spot: 3,400 • Premium paid: Rs.30 • Net Gain: Rs.80 - Rs.30 = Rs.50 per unit • Total gain on 1 lot of Nifty (50 units) = Rs. 2,500 (50*50) In this case the premium of Rs.80 has an intrinsic value of Rs.50 per unit and the remaining Rs.30 is the time value of the option.
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An investor exercises the Nifty Option at expiry (It is an European Option) Suppose the Nifty index moves down to 3400 in the spot market on the expiry day and the investor decides to reverse his position in the market by exercising the Nifty Put Option as the option now is In The Money. His gains are as follows: • Nifty Spot: 3400 • Premium paid: Rs.30 • Exercise Price: 3450 • Gain on exercise: 3450-3400 = 50 • Total Gain: Rs. 1,000 {(50-30)*50} In this case the realised amount is only the intrinsic value, which is Rs.50, and there is no time value in this case. Case 2 - If the Nifty 50 Index stays over the strike price which is 3450, in the spot market then the investor does not gain anything but on the other hand his loss is limited to the premium paid. • Nifty Spot: >3450 • Net Loss Rs. 1,500 (Loss is caped to the extent of Premium Paid) (Rs. 30 Premium paid*Lot Size: 50 units). Covered Call Strategy The covered call strategy is a strategy where a fund manager writes call options against an equivalent long position in an underlying stock thereby giving up a part of the upside from the long position. The strategy allows the fund manager to earn premium income from the option writing in addition being able to capture the remaining part of the upside. Assumptions: Current price of stock A: Rs. 27.87 per share 1 contract = 100 shares Total no of contracts: 10 Strike price: Rs. 30/- per share Premium: Rs. 0.35 per share Suppose, on October 6, 2018, the writer of the call owns 1,000 shares of Company A, which is currently trading at Rs. 27.87 per share. The writer of the call writes 10 call option contracts for company A with a strike price of Rs. 30 per share that expires in January 2019. The writer receives premium of 0.35 per share for the calls, which equals Rs. 35.00 per contract for a total of Rs. 350.00. Total premium = (Rs. 0.35 per share) * (100 shares per contract) * (10 contracts) = Rs. 350. The following can be the scenarios reflecting risks and benefits at the end of the option expiry: Case 1 - Stock falls below current price of Rs. 27.87 per share: The option expires worthless. Hence the loss from the stock position gets reduced to the extent of the premium income. Case 2 - Stock goes up above current price but remains below Rs. 30 per share (strike price): The option expires worthless. Hence the income from the gains in the stock price gets further boosted to the extent of the premium income.
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Case 3 - Stock goes above Rs. 30 per share: Option position goes out of the money for the writer but the losses from the option position are matched by the gains from the underlying stock position above Rs. 30 per share. Hence the return from the position is equal to the return from stock upto the strike price of Rs. 30 per share and the premium income from the option. Benefits of using Covered Call Strategy in Mutual Funds: The covered call strategy can be followed by the Fund Manager in order to hedge risk thereby resulting in better risk adjusted returns of the Scheme. The strategy offers the following benefits:
a) Hedge against market risk - Since the fund manager sells a call option on a stock already owned by the mutual fund scheme, the downside from fall in the stock price would be lower to the extent of the premium earned from the call option.
b) Generating additional returns in the form of option premium in a range bound market. Thus, a covered call strategy involves gains for unit holders in case the strategy plays out in the right direction. Risk associated with covered calls The risk associated with covered calls is the loss of upside, i.e. if the shares are assigned (called away), the option seller forgoes any share price appreciation above the option strike price. Please refer risk factors section on detail derivatives risk factors. Fixed Income Derivative Instruments: The Scheme may use Derivative instruments like interest rate swaps like overnight indexed swaps (OIS), forward rate agreements, interest rate futures (as and when permitted) or such other Derivative instruments as may be permitted under the applicable regulations. Derivatives will be used for the purpose of hedging, and portfolio balancing or such other purpose as may be permitted under the regulations and guidelines from time to time. The Fund will be allowed to take exposure in interest rate swaps only on a non-leveraged basis. A swap will be undertaken only if there is an underlying asset in the portfolio. In terms of circular no. MFD.BC.191/07.01.279/1999-2000 and MPD.BC.187/07.01.279/1999- 2000 dated November 1, 1999 and July 7, 1999 respectively issued by RBI permitting participation by Mutual Funds in interest rate swaps and forward rate agreements, the Scheme will use Derivative instruments for the purpose of hedging and portfolio balancing. The Scheme may also use derivatives for such purposes as maybe permitted from time to time. Further, the guidelines issued by RBI from time to time for forward rate agreements and interest rate swaps and other derivative products would be adhered to by the Mutual Fund. IRS and FRAs do also have inherent credit and settlement risks. However, these risks are substantially reduced as they are limited to the interest streams and not the notional principal amounts. Investments in Derivatives will be in accordance with the extant SEBI Regulations / guidelines. Presently Derivatives shall be used for hedging and / or portfolio balancing purposes, as permitted under the Regulations. The circumstances under which such transactions would be entered into would be when, for example using the IRS route it is possible to generate better returns / meet the objective of the Scheme at a lower cost. e.g. if buying a 2 Yr MIBOR based instrument and receiving the 2 Yr swap rate yields better return than the 2 Yr AAA corporate, the Scheme would endeavor to do that. Alternatively, the Scheme would also
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look to hedge existing fixed rate positions if the view on interest rates is that it would likely rise in the future. The following information provides a basic idea as to the nature of the Derivative instruments proposed to be used by the Scheme and the benefits and risks attached therewith. Please note that the examples have been given for illustration purposes only. Using Overnight Indexed Swaps In a rising interest rate scenario, the Scheme may enhance returns for the Investor by hedging the risk on its fixed interest paying assets by entering into an OIS contract where the Scheme agrees to pay a fixed interest rate on a specified notional amount, for a pre-determined tenor and receives floating interest rate payments on the same notional amount. The fixed returns from the Scheme assets and the fixed interest payments to be made by the Scheme on account of the OIS transaction offset each other and the Scheme benefits on the floating interest payments that it receives. The Scheme may enter into an opposite position in case of a falling interest rate scenario, i.e. to hedge the floating rate assets in its portfolio, the Scheme enters into an OIS transaction wherein it receives a fixed interest rate on a specified notional amount for a specified time period and pays a floating interest rate on the same notional amount. The floating interest payments that the Scheme receives on its floating rate securities and the floating interest payments that the Scheme has to pay on account of the OIS transaction offset each other and the Scheme benefits on the fixed interest payments that it receives in such a scenario. Swap Assume that the Scheme has a Rs. 20 crore floating rate investment linked to MIBOR (Mumbai Inter Bank Offered Rate). Hence, the Scheme is currently running an interest rate risk and stands to lose if the interest rate moves down. To hedge this interest rate risk, the Scheme can enter into a 6 month MIBOR swap. Through this swap, the Scheme will receive a fixed predetermined rate (assume 12%) and pays the “benchmark rate” (MIBOR), which is fixed by the NSE or any other agency such as Reuters. This swap would effectively lock-in the rate of 12% for the next 6 months, eliminating the daily interest rate risk. This transaction is usually routed through an intermediary who runs a book and matches deals between various counterparties. The steps will be as follows: Assuming the swap is for Rs. 20 Crores for June 1, 2009 to December 1, 2009. The Scheme is a fixed rate receiver at 12% and the counterparty is a floating rate receiver at the overnight rate on a compounded basis (say NSE MIBOR). On June 1, 2009 the Scheme and the counterparty will exchange only a contract of having entered this swap. This documentation would be as per International Swap Dealers Association (ISDA) norms. On a daily basis, the benchmark rate fixed by NSE will be tracked by them. On December 1, 2009 they will calculate the following: • The Scheme is entitled to receive interest on Rs. 20 Crores at 12% for 184 days i.e. Rs. 1.21
Crores, (this amount is known at the time the swap was concluded) and will pay the compounded benchmark rate.
• The counterparty is entitled to receive daily compounded call rate for 184 days & pay 12% fixed.
• On December 1, 2009, if the total interest on the daily overnight compounded benchmark rate is higher than Rs. 1.21 Crores, the Scheme will pay the difference to the
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counterparty. If the daily compounded benchmark rate is lower, then the counterparty will pay the Scheme the difference.
• Effectively the Scheme earns interest at the rate of 12% p.a. for six months without lending money for 6 months fixed, while the counterparty pays interest @ 12% p.a. for 6 months on Rs. 20 Crores, without borrowing for 6 months fixed.
The above example illustrates the use of Derivatives for hedging and optimizing the investment portfolio. Swaps have their own drawbacks like credit risk, settlement risk. However, these risks are substantially reduced as the amount involved is interest streams and not principal. Forward Rate Agreement Assume that on June 30, 2009, the 30 day Commercial Paper (CP) rate is 4% and the Scheme has an investment in a CP of face value Rs. 50 Crores, which is going to mature on July 31, 2009. If the interest rates are likely to remain stable or decline after July 31, 2009, and if the fund manager, who wants to re-deploy the maturity proceeds for 1 more month does not want to take the risk of interest rates going down, he can then enter into a following Forward Rate Agreement (FRA) say as on June 30, 2009: He can receive 1 X 2 FRA on June 30, 2009 at 4.00% (FRA rate for 1 months lending in 1 months time) on the notional amount of Rs. 50 Crores, with a reference rate of 30 day CP benchmark. If the CP benchmark on the settlement date i.e. July 30, 2009 falls to 3.75%, then the Scheme receives the difference 4.00 – 3.75 i.e. 25 basis points on the notional amount Rs. 50 Crores. Interest Rate Futures Assume that the Scheme holds an Indian ten year benchmark and the fund manager has a view that the yields will go up in the near future leading to decrease in value of the investment and subsequent decrease in Net Asset Value of the Scheme. The fund manager decides to use Interest Rate Futures to mitigate the risk of decline of Net Asset Value of the Scheme. 12th October 2009 • The benchmark ten year paper 6.88 2009, is trading at INR 98.00 at a yield of 7.19%. • December 2009 futures contract on the ten year notional 7% coupon bearing
Government paper is trading at a yield of 7.29% at a price of INR 98.50. • The mutual fund decides to hedge the exposure by taking a short position in December
2009 interest rate futures contract. 25th November 2009 • As expected by the fund manager the yield of the benchmark ten year paper has
increased to 8% and the price has decreased to 92.70. • The December 2009 futures contract is trading at a price of INR 93.17 indicating a yield of
8.05% • The mutual fund unwinds the short position by buying the December 2009 futures
contract. The transaction results in profit from the futures position, against the corresponding loss from the Government of India security position.
For details of risk factors relating to use of Derivatives, the investors are advised to refer to Scheme Specific Risk Factors. F. FUNDAMENTAL ATTRIBUTES Following are the Fundamental Attributes of the Scheme, in terms of Regulation 18 (15A) of the SEBI (MF) Regulations:
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(i) Type of a Scheme
An open-ended equity scheme predominantly investing in large cap stocks
(ii) Investment Objective Main Objective: To achieve long term capital appreciation by investing in a diversified
portfolio predominantly consisting of equity and equity related securities of large cap companies including derivatives.
However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.
Investment Pattern: Please refer to sub - section C ‘How will the Scheme Allocate its Assets?’ under the section II ‘INFORMATION ABOUT THE SCHEME’.
(iii) Terms of Issue o Liquidity provisions such as listing, Repurchase, Redemption. o Aggregate fees and expenses charged to the Scheme (please refer to section IV “FEES and EXPENSES”). o Any safety or guarantee net provided. – Not applicable for the Scheme
In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustee shall ensure that no change in the fundamental attributes of the Scheme and the Plan(s) / Option(s) thereunder or the trust or fee and expenses payable or any other change which would modify the Scheme and the Plan(s) / Option(s) thereunder and affect the interests of Unit holders is carried out unless: • A written communication about the proposed change is sent to each Unit holder and an
advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and
• The Unit holders are given an option for a period of 30 days to exit at the prevailing Net Asset Value without any exit load.
G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? The Scheme performance would be benchmarked against Nifty 50 TRI. The benchmark is a well diversified index accounting for 12 sectors of the economy. It is the most popular and widely followed benchmark to track the performance of the equity market in India. Being a diversified index, it is consistent with the investment objective of the Scheme.
It also covers majority of the sectors where the portfolio might be constructed by the fund manager. The Trustee may change the benchmark in future if a benchmark better suited to the investment objective of the Scheme is available. H. WHO MANAGES THE SCHEME? Name of Fund Manager
Age and Qualification
Experience of the Fund Manager
Names of other schemes under his management
Tenure as Fund Manager of the Scheme
Mr. Shreyash Devalkar
42 years
Bachelor in
• Fund Manager - Axis Asset Management Co. Ltd. (November 16,
Axis Midcap Fund, Axis Equity Advantage Fund
3 years
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Chemical Engineering & Masters in Management Studies
2016 till date) • Fund Manager – BNP
Paribas Asset Management India Pvt. Ltd. (January 17, 2011 till November 15, 2016)
• Vice President – Research – IDFC Asset Management Company Ltd. (July 24, 2008 till January 14, 2011)
• Research Analyst – IDFC Securities Ltd. (September 07, 2005 till July 23, 2008)
– Series 1 (Along with Mr. Aditya Pagaria), Axis Equity Advantage Fund – Series 2 (Along with Mr. Aditya Pagaria), Axis Bluechip Fund, Axis Multicap Fund
The Fixed Income Fund Managers of the Mutual Fund will be involved in management of the Debt Component of the Scheme. Further, presently the Trustee/AMC has not designated a dedicated Fund Manager for investment in Foreign Securities. However, it shall be ensured that there is a dedicated fund manager for investment in foreign securities as and when the fund makes investment in foreign securities. I. WHAT ARE THE INVESTMENT RESTRICTIONS? Pursuant to Regulations, specifically the Seventh Schedule and amendments thereto, the following investment restrictions are currently applicable to the Scheme: 1. The Scheme shall not invest more than 10 per cent of its NAV in the equity shares or
equity related instruments of any company. 2. All investments by the Scheme in equity shares and equity related instruments shall only
be made provided such securities are listed or to be listed. 3. The Mutual Fund under all its Scheme(s) shall not own more than ten per cent of any
company’s paid up capital carrying voting rights. Provided, investment in the asset management company or the trustee company of a mutual fund shall be governed by clause (a), of sub-regulation (1), of regulation 7B.
4. The Scheme shall not invest more than 10% of its NAV in debt instruments comprising money market instruments and non-money market instruments issued by a single issuer, which are rated not below investment grade by a credit rating agency authorized to carry out such activity under the SEBI Act, 1992. Such investment limit may be extended to 12% of the NAV of the Scheme with the prior approval of the Trustee and the Board of Directors of AMC. Such limit shall not be applicable for investment in Government Securities, treasury bills and collateralized borrowing and lending obligations. Provided further that investments within such limit can be made in the mortgaged backed securitised debt, which are rated not below investment grade by a credit rating agency, registered with SEBI.
5. The Scheme shall not invest in unlisted debt instruments including commercial papers, except Government Securities, money market instruments and derivative products such as Interest Rate Swaps, Interest Rate Futures, etc. which are used by mutual fund for hedging.
Provided that the Scheme may invest in unlisted non-convertible debentures up to a maximum of 10% of the debt portfolio of the Scheme subject to such conditions as may be specified by the Board from time to time.
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Provided further that the Scheme shall comply with the norms under this clause within the time and in the manner as may be specified by the Board. Further the investments by the Scheme shall be in compliance with SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2019/104 dated October 1, 2019 and as amended by SEBI from time to time.
6. Provided further that the norms for investments by the Scheme in unrated debt
instruments shall be specified by the Board from time to time. 7. The investment by the Scheme in the following instruments shall not exceed 10% of the
debt portfolio of the scheme and the group exposure in such instruments shall not exceed 5% of the debt portfolio of the scheme: a. Unsupported rating of debt instruments (i.e. without factoring-in credit
enhancements) is below investment grade and b. Supported rating of debt instruments (i.e. after factoring-in credit enhancement) is
above investment grade. These limits shall not be applicable on investments in securitized debt instruments, as defined in SEBI (Public Offer and Listing of Securitized Debt Instruments) Regulations 2008.
8. Investment in debt instruments, having credit enhancements backed by equity shares directly or indirectly, shall have a minimum cover of 4 times considering the market value of such shares.
9. The Scheme may invest in other schemes of the Mutual Fund or any other mutual fund without charging any fees, provided the aggregate inter-scheme investment made by all the schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the Net Asset Value of the Fund.
10. The Scheme shall not make any investment in: a) any unlisted security of an associate or group company of the sponsor; or b) any security issued by way of private placement by an associate or group company
of the sponsor; or c) the listed securities of group companies of the sponsor which is in excess of 25% of the
net assets. 11. The Mutual Fund shall get the securities purchased transferred in the name of the Fund
on account of the concerned Scheme, wherever investments are intended to be of a long-term nature.
12. Transfer of investments from one scheme to another scheme in the same Mutual Fund is permitted provided: a. such transfers are done at the prevailing market price for quoted instruments on spot
basis (spot basis shall have the same meaning as specified by a Stock Exchange for spot transactions); and
b. the securities so transferred shall be in conformity with the investment objective of the Scheme to which such transfer has been made.
13. The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relevant securities and in all cases of sale, deliver the securities: Provided that the Mutual Fund may engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI.
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Provided further that the Mutual Fund may enter into derivatives transactions in a recognized stock exchange, subject to the framework specified by SEBI. Provided further that sale of government security already contracted for purchase shall be permitted in accordance with the guidelines issued by the Reserve Bank of India in this regard.
14. The Scheme shall not make any investment in any fund of funds scheme. 15. The Scheme will comply with the following restrictions for trading in exchange traded
derivatives, as specified by SEBI vide its circular no. DNPD/Cir-29/2005 dated September 14, 2005, circular no. DNPD/Cir-30/2006 dated January 20, 2006, circular no. DNPD/Cir-31/2006 dated September 22, 2006, circular no. Cir/ IMD/DF/11/2010 dated August 18, 2010, circular no. SEBI/HO/MRD/DP/CIR/P/2016/143 dated December 27, 2016, circular no. SEBI/HO/IMD/DF2/CIR/P/2017/13 dated February 20, 2017 and SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2017/109 dated September 27, 2017:
i. Position limit for the Mutual Fund in equity index options contracts a. The Mutual Fund position limit in all index options contracts on a particular underlying
index shall be Rs. 500 crores or 15% of the total open interest of the market in index options, whichever is higher, per stock exchange.
b. This limit would be applicable on open positions in all options contracts on a particular underlying index.
ii. Position limit for the Mutual Fund in equity index futures contracts: a. The Mutual Fund position limit in all index futures contracts on a particular underlying
index shall be Rs.500 crores or 15% of the total open interest of the market in index futures, whichever is higher, per stock exchange. This limit would be applicable on open positions in all futures contracts on a particular underlying index.
iii. Additional position limit for hedging In addition to the position limits at point (i) and (ii) above, the Mutual Fund may take exposure in equity index derivatives subject to the following limits: a. Short positions in index derivatives (short futures, short calls and long puts) shall not
exceed (in notional value) the Mutual Fund's holding of stocks. b. Long positions in index derivatives (long futures, long calls and short puts) shall not
exceed (in notional value) the Mutual Fund's holding of cash, government securities, Treasury Bills and similar instruments.
iv. Position limit for Mutual Fund for stock based derivative contracts The combined futures and options position limit shall be 20% of the applicable Market Wide Position Limit (MWPL).
v. Position limit for each scheme of a Mutual Fund The scheme-wise position limit / disclosure requirements shall be: a. For stock option and stock futures contracts, the gross open position across all
derivative contracts on a particular underlying stock of a scheme of a Mutual Fund shall not exceed the higher of 1% of the free float market capitalization (in terms of number of shares) or
5% of the open interest in the derivative contract on a particular underlying stock (in terms of number of contracts).
b. This position limits shall be applicable on the combined position in all derivative contracts on an underlying stock at a Stock Exchange.
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c. For index based contracts, Mutual Funds shall disclose the total open interest held by its scheme or all schemes put together in a particular underlying index, if such open interest equals to or exceeds 15% of the open interest of all derivative contracts on that underlying index.
16. Pending deployment of the funds of the Scheme in securities in terms of the investment objective of the Scheme, the AMC may park the funds of the Scheme in short term deposits of scheduled commercial banks, subject to the guidelines issued by SEBI.
The Scheme will comply with the following guidelines/ restrictions for parking of funds in short term deposits: i. “Short Term” for such parking of funds by the Scheme shall be treated as a period not
exceeding 91 days. Such short-term deposits shall be held in the name of the Scheme. ii. The Scheme shall not park more than 15% of the net assets in short term deposit(s) of
all the scheduled commercial banks put together. However, such limit may be raised to 20% with prior approval of the Trustee.
iii. Parking of funds in short term deposits of associate and sponsor scheduled commercial banks together shall not exceed 20% of total deployment by the Mutual Fund in short term deposits.
iv. The Scheme shall not park more than 10% of the net assets in short term deposit(s), with any one scheduled commercial bank including its subsidiaries.
v. The Scheme shall not park funds in short term deposit (STD) of a bank which has invested in that Scheme. Further, Trustees/ AMCs shall also ensure that the bank in which the Scheme has STD do not invest in the said scheme until the Scheme has STD with such bank.
vi. The AMC will not charge any investment management and advisory fees for funds parked in short term deposits of scheduled commercial banks
However, the above provisions will not apply to term deposits placed as margins for trading in cash and derivatives market.
17. The Scheme shall not advance any loans. 18. The Scheme shall not borrow except to meet temporary liquidity needs of the Scheme
for the purpose of repurchase/redemption of Units or payment of interest and/or dividend to the Unit holders. Provided that the Scheme shall not borrow more than 20% of the net assets of the individual Scheme and the duration of the borrowing shall not exceed a period of 6 months.
19. SEBI vide its circular no. Cir/IMD/DF/11/2010 dated August 18, 2010 has prescribed the following investment restrictions w.r.t. investment in derivatives: 1 The cumulative gross exposure through equity, debt and derivative positions shall
not exceed 100% of the net assets of the Scheme. Cash or cash equivalents with residual maturity of less than 91 days shall be treated as not creating any exposure.
2 The Scheme shall not write options or purchase instruments with embedded written options except call options under a covered call strategy as specified in SEBI circular dated January 16, 2019 as amended from time to time.
3 The total exposure related to option premium paid shall not exceed 20% of the net assets of the Scheme.
4 Exposure due to hedging positions may not be included in the above mentioned limits subject to the following: a. Hedging positions are the derivative positions that reduce possible losses on
an existing position in securities and till the existing position remains. b. Hedging positions cannot be taken for existing derivative positions. Exposure
due to such positions shall have to be added and treated under limits
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mentioned in Point 1. c. Any derivative instrument used to hedge has the same underlying security as
the existing position being hedged. d. The quantity of underlying associated with the derivative position taken for
hedging purposes does not exceed the quantity of the existing position against which hedge has been taken.
5 Exposure due to derivative positions taken for hedging purposes in excess of the underlying position against which the hedging position has been taken, shall be treated under the limits mentioned in point 1.
6 Each position taken in derivatives shall have an associated exposure as defined under. Exposure is the maximum possible loss that may occur on a position. However, certain derivative positions may theoretically have unlimited possible loss. Exposure in derivative positions shall be computed as follows:
Position Exposure Long Future Futures Price * Lot Size * Number of Contracts Short Future Futures Price * Lot Size * Number of Contracts Option bought Option Premium Paid * Lot Size * Number of Contracts.
7 The Scheme may enter into plain vanilla interest rate swaps for hedging purposes. The counter party in such transactions has to be an entity recognized as a market maker by RBI. Further, the value of the notional principal in such cases shall not exceed the value of respective existing assets being hedged by the Scheme. Exposure to a single counterparty in such transactions shall not exceed 10% of the net assets of the Scheme.
20. The Scheme may write call options only under a covered call strategy for constituent
stocks of NIFTY 50 and BSE SENSEX subject to the following: (i) The total notional value (taking into account strike price as well as premium value) of
call options written by a scheme shall not exceed 15% of the total market value of equity shares held in that scheme.
(ii) The total number of shares underlying the call options written shall not exceed 30% of the unencumbered shares of a particular company held in the scheme. The unencumbered shares in a scheme shall mean shares that are not part of Securities Lending and Borrowing Mechanism (SLBM), margin or any other kind of encumbrances.
(iii) At all points of time the Mutual Fund scheme shall comply with the provisions at paragraph (i) and (ii) above. In case of any passive breach of the requirement at paragraph (i), the respective scheme shall have 7 trading days to rebalance the portfolio. During the rebalancing period, no additional call options can be written in the said scheme.
(iv) In case the Scheme needs to sell securities on which a call option is written under a covered call strategy, it must ensure compliance with paragraphs (i) and (ii) above while selling the securities.
(v) In no case, the scheme shall write a call option without holding the underlying equity shares. A call option can be written only on shares which are not hedged using other derivative contracts.
(vi) The premium received shall be within the requirements prescribed in terms of paragraph 5 of SEBI circular dated August 18, 2010 i.e. the total gross exposure related to option premium paid and received must not exceed 20% of the net assets of the scheme.
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(vii) The exposure on account of the call option written under the covered call strategy shall not be considered as exposure in terms of paragraph 3 of SEBI Circular no. Cir/IMD/DF/11/2010 dated August 18, 2010.
21. The mutual fund under all its schemes shall not own more than 10% of units issued by a single issuer of REIT and InvIT.
22. The Scheme shall not invest – a) more than 10% of its NAV in the units of REIT and InvIT; and b) more than 5% of its NAV in the units of REIT and InvIT issued by a single issuer.
23. The Scheme shall participate in repos in corporate debt securities as per the guidelines
issued by SEBI and/ or RBI from time to time and the guidelines framed by the Board of Directors of Trustee Company and the Asset Management Company, from time to time. At present the following conditions and norms shall apply to repo in corporate debt securities:
(i) The gross exposure of the Scheme to repo transactions in corporate debt securities shall not be more than 10 % of the net assets of the Scheme.
(ii) The cumulative gross exposure through repo transactions in corporate debt securities along with equity, debt and derivatives shall not exceed 100% of the net assets of the Scheme.
(iii) The Scheme shall participate in repo transactions only in AA and above rated corporate debt securities.
(iv) The Scheme shall borrow through repo transactions only if the tenor of the transaction does not exceed a period of six months.
(v) The Trustee and the Asset Management Company have framed guidelines interalia considering the following aspects: i. Category of counterparty ii. Credit rating of counterparty iii. Tenor of collateral iv. Applicable haircuts
(vi) Counterparty selection & credit rating The counterparty must be an acceptable counterparty for debt transactions. The Mutual Fund follows a counterparty empanelment process for fixed income transactions and the same shall be used for selection of counterparties for corporate bond repos. All repo transactions in corporate bonds will be governed by a repo agreement as specified by FIMMDA and / or other specified authorities.
(vii) Collateral tenor & quality The exposure limit/investment restrictions prescribed under the Seventh Schedule of the Regulations and circulars issued there under (wherever applicable) shall be applicable to repo transactions in corporate bonds. The Scheme shall further follow guidelines framed by Trustee and the AMC from time to time.
(viii) Applicable haircuts Currently mutual funds are permitted to carry out repo transactions in government securities without any haircuts. The Reserve Bank of India has notified a minimum haircut based on rating of the corporate bond and other securities. In addition, the Fixed Income and Money Market Dealers Association (FIMMDA) would maintain a rating-haircut matrix on an ongoing basis. The Scheme shall further follow guidelines framed by Trustee and the AMC from time to time.
The haircuts seek to protect the lender of funds from the event of the counterparty failing to honor the repurchase leg of the repo. In such a circumstance, the Fund would suffer a loss if the value of the collateral depreciates by more than the haircut.
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The fall in the value of the collateral could be on account of higher yields and/ or deterioration of credit quality.
As the typical tenor of repos is short (typically overnight), the haircuts represent a relatively high degree of safety in relation to the interest rate risk on the collateral. The risk of collateral depreciation based on historical volatility is given in the table below:
Bond Tenor (yrs) 1 3 5 10 Price Volatility (%) (annualized)
0.6 1.2 1.7 3.4
Repo Tenor Number of standard deviations needed to lose 10% 1 day 258 136 94 48 7 days 98 52 36 18
In the above table, the price volatility of a 10-year bond is about 3.4% annualized. That is a 10% price move represents nearly a 3-sigma event on an annualized basis. For overnight tenors, this represents a 48-sigma event (for comparison a 6-sigma event occurs about once in a million observations).
It is apparent that the haircuts stipulated by RBI are more than sufficient to mitigate interest rate risk. Credit event risk remains (the collateral could default during the tenor of the repo). This risk is to be mitigated by ensuring that the collateral is acceptable from a credit point of view. The exposure limit/ investment restrictions prescribed under the Seventh Schedule of the Regulations and circulars issued there under (wherever applicable) shall be applicable to repo transactions in corporate bonds. The Scheme will comply with the other Regulations applicable to the investments of Mutual Funds from time to time.
All the investment restrictions will be applicable at the time of making investments. The AMC/Trustee may alter these above stated restrictions from time to time to the extent the Regulations change, so as to permit the Scheme to make its investments in the full spectrum of permitted investments for mutual funds to achieve its respective investment objective. J. HOW HAS THE SCHEME PERFORMED?
Performance of Axis Bluechip Fund – Regular Plan - Growth Option as at July 31, 2020 is as follows:
Period
Axis Bluechip Fund – Regular Plan - Growth
Option ^
Nifty 50 TRI
1 year returns 4.63% 0.68% 3 year returns 8.63% 4.46% 5 year returns 8.67% 6.66% Returns Since Inception (January 5, 2010) 11.03% 8.58%
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Absolute Returns for each Financial Year for the last Five years
Performance of the Axis Bluechip Fund – Direct Plan - Growth option as at July 31, 2020 is as follows:
Period Axis Bluechip Fund - Direct Plan - Growth
Option ^ Nifty 50 TRI
1 year returns 5.88% 0.68% 3 year returns 10.05% 4.46% 5 year returns 9.98% 6.66% Returns Since Inception (January 1, 2013) 14.06% 9.89%
Absolute Returns for each Financial Year for the last Five years
^Past performance may or may not be sustained in future. Returns greater than 1 year are compounded annualized (CAGR). Calculations are based on Growth Option NAVs. The performance of Scheme is benchmarked to the Total Return Variant (TRI) of the Benchmark Index in terms of SEBI circular dated January 4, 2018. K. INVESTMENTS BY THE AMC Subject to the Regulations, the AMC may invest either directly or indirectly, in the Scheme during Ongoing Offer Period. However, the AMC shall not charge any investment management fee on such investment in the Scheme. L. ADDITIONAL SCHEME RELATED DISCLOSURES a. Scheme’s portfolio holdings as on July 31, 2020:
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(i) Top 10 holdings by Issuer: Name of Issuer % of Net Assets
Infosys Limited 10.06% HDFC Bank Limited 9.12% Reliance Industries Limited 8.11% Tata Consultancy Services Limited 6.58% Bajaj Finance Limited 6.36% Kotak Mahindra Bank Limited 6.12% Bharti Airtel Limited 5.46% Hindustan Unilever Limited 4.61% Avenue Supermarts Limited 4.48% Nestle India Limited 4.04%
(ii) Fund allocation towards various Sectors:
Sector Classification % of Net Assets FINANCIAL SERVICES 31.87% CONSUMER GOODS 16.96% IT 16.64% OIL & GAS 8.11% PHARMA 7.41% OTHERS^ 6.99% TELECOM 5.46% AUTOMOBILE 2.24% CHEMICALS 1.91% CEMENT & CEMENT PRODUCTS 1.65% Cash & Cash Equivalent: 0.63% SERVICES 0.13% Grand Total 100%
^Tri Party Repos/REPO/Mutual Fund units Please visit www.axismf.com to obtain Scheme’s latest monthly portfolio holding statement.
b. Portfolio Turnover Portfolio turnover ratio for the one year period ended July 31, 2020: 1.00* *Based on Equity, Equity derivatives and Fixed Income securities transactions only. TREPS/Repo/FD/Margin FD/MFU/SLB are not considered. c. Aggregate investment in the Scheme of certain categories of persons:
Sr. No.
Category of Persons Net Asset Value of Units held as on July 31, 2020 (in Rs.)
i AMC’s Board of Directors 13,32,68,188.50 ii Concerned scheme’s Fund Manager(s) 16,96,089.63 iii Other key managerial personnel 2,98,89,080.08
Note: 1. Investment of Managing Director & Chief Executive Officer of AMC, if any, is included in
investments of “Other key managerial personnel”. 2. Investment of Fund Manager of the Scheme is not included in investments of “Other key managerial personnel”.
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III. UNITS AND OFFER This section provides details you need to know for investing in the Scheme. A. NEW FUND OFFER (NFO) New Fund Offer Period This is the period during which a new scheme sells its Units to the investors.
The New Fund Offer opened on November 11, 2009 and closed on December 8, 2009. The units under the Scheme were allotted on January 5, 2010.
New Fund Offer Price: This is the price per Unit that the investors have to pay to invest during the NFO.
Not Applicable
Minimum Amount for Application / Switch in in the NFO
Not Applicable
Minimum Target amount
Not Applicable
Maximum amount to be raised (if any)
Not Applicable
Plans / Options offered
The Scheme offers the following plans: Axis Bluechip Fund – Regular Plan Axis Bluechip Fund – Direct Plan Each plan offers the following options: a) Growth Option b) Dividend Option.
1. Dividend Payout Facility 2. Dividend Reinvestment Facility
a) Growth Option Dividends will not be declared under this Option. The income attributable to Units under this Option will continue to remain invested in the Scheme and will be reflected in the Net Asset Value of Units under this Option. b) Dividend Option Under this Option, dividends will be declared at the discretion of the Trustee, subject to availability of distributable surplus calculated in accordance with SEBI (MF) Regulations. On payment of dividend, the NAV of the units under Dividend option will fall to the extent of the dividend payout and applicable statutory levies, if any. It must be distinctly understood that the actual declaration of dividend and frequency thereof is at the sole discretion of Board of Directors of the Trustee Company. There is no assurance or guarantee to the Unit holders as to the rate of dividend distribution nor that the dividend will be paid regularly.
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Dividend Payout Facility Under this facility, dividend declared, if any, will be paid (subject to deduction of dividend distribution tax and statutory levy, if any) to those Unit holders, whose names appear in the register of Unit holders on the notified record date. Dividend Reinvestment Facility Under this facility, the dividend due and payable to the Unit holders will be compulsorily and without any further act by the Unit holder, reinvested in the Dividend option at a price based on the prevailing ex-dividend Net Asset Value per Unit. The amount of dividend re-invested will be net of tax deducted at source, wherever applicable. The dividends so reinvested shall constitute a constructive payment of dividends to the Unit holders and a constructive receipt of the same amount from each Unit holder for reinvestment in Units. On reinvestment of dividends, the number of Units to the credit of Unit holder will increase to the extent of the dividend reinvested divided by the Applicable NAV. There shall, however, be no Load on the dividend so reinvested. Default Plan The investor must clearly specify his choice of plan. Investors subscribing under Direct Plan of a Scheme will have to indicate “Direct Plan” against the Scheme name in the application form. Investors should also indicate “Direct” in the ARN column of the application form. The investors may refer to the following table for applicability of Direct Plan/ Regular Plan under different scenario:- Scenario Broker Code mentioned
by the investor Plan mentioned by the investor
Default Plan to be captured
1 Not mentioned Not mentioned Direct Plan 2 Not mentioned Direct Direct Plan 3 Not mentioned Regular Direct Plan 4 Mentioned Direct Direct Plan 5 Direct Not Mentioned Direct Plan 6 Direct Regular Direct Plan 7 Mentioned Regular Regular Plan 8 Mentioned Not Mentioned Regular Plan
In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under Regular Plan. The AMC shall contact and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 calendar days, the AMC shall reprocess the transaction under Direct Plan from the date of application without any exit load. Default Option/Facility The investor must clearly specify his choice of option/facility. In the absence of such clear instruction, it will be assumed that the investor has opted for ‘default’ option / facility and the application will be
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processed accordingly. The default plan/ option / facility are: Default Option: Growth (between Growth and Dividend) Default Facility: Dividend Reinvestment facility (between Dividend Reinvestment and Dividend Payout facility) Existing Investments: Investors wishing to transfer their accumulated unit balance held under Regular Plan (through lumpsum / systematic investments made with or without Distributor code) to Direct Plan will have to switch /redeem their investments (subject to applicable Exit Load, if any) and apply under Direct Plan. Investors who have invested without Distributor code and have opted for Dividend Reinvestment facility under Regular Plan may note that the dividend will continue to be reinvested in the Regular Plan only. Default Plan – Redemption application Where Units under a Scheme are held under both Regular and Direct Plans and the redemption / Switch request pertains to the Direct Plan, the same must clearly be mentioned on the request (along with the folio number), failing which the request would be processed from the Regular Plan. However, where Units under the requested Option are held only under one Plan, the request would be processed under such Plan.
Dividend Policy Under the Dividend option, the Trustee will have the discretion to declare the dividend, subject to availability of distributable surplus calculated in accordance with the Regulations. The actual declaration of dividend and frequency will inter-alia, depend on availability of distributable 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. The AMC/Trustee reserves the right to change the frequency of declaration of dividend or may provide for additional frequency for declaration of dividend. Dividend Distribution Procedure In accordance with SEBI circular no. SEBI/IMD/Cir No. 1/64057/06 dated April 4, 2006, the procedure for Dividend distribution would be as under: 1. Quantum of dividend and the record date will be fixed by the
Trustee. Dividend so decided shall be paid, subject to availability of distributable surplus.
2. Within one calendar day of decision by the Trustee, the AMC shall issue notice to the public communicating the decision about the dividend including the record date, in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the head office of the Mutual Fund is situated.
3. Record date shall be the date, which will be considered for the purpose of determining the eligibility of investors whose names appear on the register of Unit holders for receiving dividends. The
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Record Date will be 5 calendar days from the date of issue of notice.
4. The notice will, in font size 10, bold, categorically state that pursuant to payment of dividend, the NAV of the Scheme would fall to the extent of payout and statutory levy (if applicable).
5. The NAV will be adjusted to the extent of dividend distribution and statutory levy, if any, at the close of business hours on record date.
6. Before the issue of such notice, no communication indicating the probable date of dividend declaration in any manner whatsoever will be issued by Mutual Fund.
Allotment Not Applicable Refund Not Applicable Who can invest This is an indicative list and you are requested to consult your financial advisor to ascertain whether the scheme is suitable to your risk profile.
The following persons (subject to, wherever relevant, purchase of unit of mutual funds, being permitted under respective constitutions, and relevant statutory regulations) are eligible and may apply for Subscription to the Unit of the Scheme: 1. Resident adult individuals either singly or jointly (not exceeding
three) or on an Anyone or Survivor basis; 2. Hindu Undivided Family (HUF) through Karta; 3. Minor (as the first and the sole holder only) through a natural
guardian (i.e. father or mother, as the case may be) or a court appointed legal guardian. There shall not be any joint holding with minor investments;
4. Partnership Firms; 5. Limited Liability Partnerships; 6. Proprietorship in the name of the sole proprietor; 7. Companies, Bodies Corporate, Public Sector Undertakings (PSUs.),
Association of Persons (AOP) or Bodies of Individuals (BOI) and societies registered under the Societies Registration Act, 1860 (so long as the purchase of Unit is permitted under the respective constitutions);
8. Banks (including Co-operative Banks and Regional Rural Banks) and Financial Institutions;
9. Religious and Charitable Trusts, Wakfs or endowments of private trusts (subject to receipt of necessary approvals as "Public Securities" as required) and Private trusts authorised to invest in mutual fund schemes under their trust deeds;
10. Non-Resident Indians (NRIs) / Persons of Indian origin (PIOs)/ Overseas Citizens of India (OCI) residing abroad on repatriation basis or on non-repatriation basis;
11. Foreign Portfolio Investor (FPI) registered with SEBI on repatriation basis. These investments shall be subject to the conditions prescribed by SEBI, RBI, Income Tax authorities and the AMC, from time to time;
12. Army, Air Force, Navy and other para-military units and bodies created by such institutions;
13. Scientific and Industrial Research Organisations; 14. Multilateral Funding Agencies / Bodies Corporate incorporated
outside India with the permission of Government of India / RBI; 15. Provident/ Pension/ Gratuity Fund to the extent they are permitted; 16. Other schemes of Axis Mutual Fund or any other mutual fund
subject to the conditions and limits prescribed by SEBI (MF) Regulations;
17. Schemes of Alternative Investment Funds;
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18. Trustee, AMC or Sponsor or their associates may subscribe to Units under the Scheme;
19. Such other category of person(s) permitted to make investments and as may be specified by the AMC / Trustee from time to time.
Subject to SEBI (Mutual Funds) Regulations, 1996, any application for subscription of units may be accepted or rejected in the sole and absolute discretion of the AMC/ Trustee company. The AMC/ Trustee company may also reject any application for subscription of units if the application is invalid, incomplete, or if the AMC/ Trustee company for any other reason does not believe that it would be in the interest of the scheme or its unitholders to accept such an application. Email ID & Mobile Number Investors should provide their own email address and mobile number to enable Axis AMC for speed and ease of communication in a convenient and cost-effective manner, and to help prevent fraudulent transactions. Ultimate Beneficial Ownership details: SEBI vide its circular no. CIR/MIRSD/2/2013 dated January 24, 2013 further read with AMFI Best practices guidelines circular no. 62/2015-16 dated September 18, 2015 and other applicable regulations has prescribed guidelines, for identification of Beneficial Ownership to be followed by the intermediaries. A ‘Beneficial owner’ is defined as a natural person or persons who ultimately own, control or influence a client and/or persons on whose behalf a transaction is being conducted, and includes a person who exercises ultimate effective control over a legal person or arrangement. In this regard, all categories of investors (including all new / existing investors / unitholders) (except individuals, companies listed on a stock exchange or majority-owned subsidiary of such companies) are mandatorily required to provide beneficial ownership details for all investments. Failing which, fund reserves the right to reject applications / subscription requests / additional subscription requests (including switches) / restrict further investments or seek additional information from investors who have not provided the requisite information on beneficial ownership. In the event of change in beneficial ownership, investors are requested to immediately update the details with the Fund/Registrar. Foreign Account Tax Compliance Act and Common Reporting Standards requirements As a part of various ongoing tax and regulatory developments around the globe [e.g. information exchange laws such as Foreign Account Tax Compliance Act (‘FATCA’) and Common Reporting Standard (‘CRS')], financial institutions like Axis Mutual Fund (‘Axis MF’ or ‘the Fund’) are being cast with additional investor and counterparty account related due diligence requirements. The Central Board of Direct Taxes (CBDT) has notified Rules 114F to 114H, as part of the Income-tax Rules, 1962, which Rules require Indian financial institutions such as the Banks, Mutual Funds, etc. to seek additional personal, tax and beneficial owner information and certain
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certifications and documentation from all our investors and counterparties. According to the FATCA-CRS Rules, financial institutions in India are required to report tax information about account holders that are tax resident of U.S. and other foreign countries, to the CBDT/ Indian Government which will, in turn, relay that information to the US Internal Revenue Service (IRS) and governments of other foreign countries. These developments have resulted in compliance and reporting obligations on Financial Institutions like Axis MF. In relevant cases, information will have to be reported to tax authorities/appointed agencies. Towards compliance, the Fund may also be required to provide information to any institutions such as withholding agents for the purpose of ensuring appropriate withholding from the account or any proceeds in relation thereto. As may be required by domestic or overseas regulators/ tax authorities, we may also be constrained to withhold and pay out any sums from your account or close or suspend your account(s). Axis MF may also have to comply with other similar laws as and when applicable.
Prospective investors and Unit holders will therefore be required to comply with the request of the Fund to furnish such information / documentation / declarations as and when deemed necessary by the Investment Manager in accordance with Applicable Laws. In case prospective investor / Unit holder fails to furnish the relevant information / documentation / declarations in accordance with Applicable Laws, the Fund reserves the right to reject the application or redeem the Units held directly or beneficially and may also require reporting of such accounts and/or levy of withholding tax on payments made to the Unit holders / investor and/or take any other action/s in accordance with Applicable Laws. FATCA-CRS provisions are relevant not only at on-boarding stage of Unit holders but also throughout the life cycle of investment with the Fund. Unit holders therefore should intimate to the Fund/the Investment Manager, any change in their status with respect to any FATCA-CRS related information / documentation / declarations provided by them previously, including but not limited to any declarations provided in respect of residency of the Unit holders for tax purposes promptly, i.e. within 30 days. Further, if the Fund and/or the Investment Manager is required by Applicable Laws, to provide information regarding the Fund and/or the unit holders / investors to any regulatory authority and/or the Fund Investments and/or income therefrom, and the Fund and/or the Investment Manager complies with such request in good faith, whether or not it was in fact enforceable, they shall not be liable to the Unit holders / investors or to any other party as a result of such compliance or in connection with such compliance. Prospective investors / Unit holders should consult their own advisors to understand the implications of FATCA-CRS provisions/requirements. Please note that Axis MF will be unable to provide advice to any investor or counterparty about their tax status or FATCA/CRS classification relevant to their account. It is the responsibility of the investor or counterparty to ensure that they record their correct tax status / FATCA/ CRS classification. Investor/ counterparty may seek
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advice from their tax advisor in this regard. The onus to provide accurate, adequate and timely inputs in this regard would be that of the investor or counterparty. Any changes in earlier information provided must be intimated within 30 days of such change. Investors are requested to provide all the necessary information / declarations to facilitate compliance, considering India’s commitment to implement CRS and FATCA under the relevant international treaties. Implementation of KYC requirements SEBI vide circular no. MIRSD/SE/Cir-21/2011 dated October 5, 2011 had mandated (i) Standard KYC form with uniform KYC guidelines and supporting documents to be used by SEBI registered intermediaries and (ii) Centralized KYC registration through KYC Registration Agencies (KRAs) registered with SEBI, w.e.f. January 1, 2012, to bring about uniform KYC process in the securities market, based on SEBI prescribed norms and the KYC details are shared with all SEBI registered intermediaries by the KRAs.
Subsequently, SEBI, vide its circular no. MIRSD/Cir-5/2012 dated April 13, 2012 advised various intermediaries to upload KYC data of its existing customers into the KRA system. While uploading KYC data into the KRA system, intermediaries were also required to highlight such ‘Missing/Not Available’ KYC information of a customer, which was either not required or not taken previously, but was mandatory as per uniform KYC guidelines issued by SEBI.
In accordance with AMFI best practices guidelines circular no. 62/2015-16 dated September 18, 2015, it is mandatory for all new/existing investors to provide additional KYC information such as Income details, Occupation, association with politically exposed person, net worth etc. as mentioned in the application form. Subscription requests, without providing these details, are liable to be rejected. No subscriptions (whether fresh or additional) and switches pertaining to ‘KYC on-hold’ cases are accepted, unless the investor / unitholder also submits relevant KYC missing / updated information, which is appropriately updated on the KRA - KYC.
Further, it is mandatory for existing customers to complete In-Person Verification process and provide the missing KYC information failing which their applications / transaction requests for additional subscription (including switches) is liable to be rejected. Central KYC Process Central Registry of Securitisation and Asset Reconstruction and Security interest of India (‘CERSAI’) has been authorised by Government of India to act as Central KYC Records Registry under Prevention of Money-Laundering (Maintenance of Records) Rules, 2005 (‘PMLA Rules’). SEBI vide its circular no. CIR/MIRSD/66/2016 dated July 21, 2016 and circular no. CIR/MIRSD/120/2016 dated November 10, 2016 has prescribed that the Mutual Fund/ AMC should capture KYC information for sharing with CKYCR as per the KYC template
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prescribed by CERSAI for uniform and smooth implementation of CKYC norms for onboarding of new investors in Mutual Funds. In accordance with the aforesaid SEBI circulars and AMFI best practice guidelines for implementation of CKYC: a) Individual investors who have never done KYC process under KRA
regime i.e. a new investor who is new to KRA system and whose KYC is not registered or verified in the KRA system shall be required to provide KYC details in the CKYC Form to the Mutual Fund/ AMC.
b) Individual investor who fills old KRA KYC Form, should provide additional / missing information using Supplementary KYC Form or fill CKYC Form. The said form is available on Axis Mutual Fund website www.axismf.com.
c) Details of investors shall be uploaded on the system of CKYCR and a 14 digit unique KYC Identification Number (‘KIN’) will be generated for such customer.
d) New investors, who have completed CKYC process & have obtained KIN may quote their KIN in the application form instead of submitting CKYC Form/ Supplementary KYC Form.
e) AMC/ Mutual Fund shall use the KIN of the investor to download the KYC information from CKYCR system and update its records.
f) If the PAN of investor is not updated on CKYCR system, the investor should submit self-certified copy of PAN card to the Mutual Fund/ AMC.
The AMC reserves the right to reject transaction application in case the investor(s) fails to submit information and/or documentation as mentioned above. In the event of non-compliance of KYC requirements, the Trustee / AMC reserves the right to freeze the folio of the investor(s). Submission of Aadhar Number Pursuant to requirement under Prevention of Money Laundering (Maintenance of Records) Rules, 2005 as amended from time to time, proof of possession of Aadhar can be accepted as a valid document for proof of address or proof of identity of investors, provided the investor redact or blackout his Aadhar number while submitting the applications for investments. The aforesaid guidelines will be subject to change as per the directives issued by the concerned regulatory/ government authority from time to time. For further details refer to SAI.
Who cannot invest 1. Any individual who is a foreign national or any other entity that is not an Indian resident under the Foreign Exchange Management Act, 1999 (FEMA Act) except where registered with SEBI as a FPI or otherwise explicitly permitted under FEMA Act/ by RBI/ by any other applicable authority.
2. Pursuant to RBI A.P. (DIR Series) circular no. 14 dated September 16, 2003, Overseas Corporate Bodies (OCBs) cannot invest in Mutual Funds.
3. NRIs residing in Non-Compliant Countries and Territories (NCCTs) as determined by the Financial Action Task Force (FATF), from time to
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time. 4. U.S. Persons and Residents of Canada as defined under the
applicable laws of U.S. and Canada except the following: a. subscriptions received by way of lump sum / switches
/systematic transactions received from Non-resident Indians (NRIs) / Persons of Indian origin (PIO) / Overseas Citizen of India (OCI) who at the time of such investment, are present in India and
b. FPIs
5. Such other persons as may be specified by AMC from time to time. These investors need to submit a physical transaction request along with such documents as may be prescribed by the AMC/ the Trustee/ the Fund from time to time.
The AMC reserves the right to put the transaction requests on hold/reject the transaction request/reverse allotted units, as the case may be, as and when identified by the AMC, which are not in compliance with the terms and conditions notified in this regard. The Trustee / the AMC /the Fund reserve the right to change/ modify the above provisions at a later date.
Where can you submit the filled up applications.
Not Applicable
How to Apply Please refer to the SAI and Application form for the instructions. Listing The Scheme is an open ended scheme under which Sale and
Repurchase will be made on a continuous basis and therefore listing on stock exchanges is not envisaged. However, the Trustee reserves the right to list the Units as and when considered necessary in the interest of Unit holders of the Fund.
Special Products / facilities available during the NFO
Not Applicable
The policy regarding reissue of repurchased Units, including the maximum extent, the manner of reissue, the entity (the scheme or the AMC) involved in the same.
Units once redeemed will be extinguished and will not be reissued.
Restrictions, if any, on the right to freely retain or dispose of Units being offered.
Pledge of Units The Unit under the Scheme (subject to completion of Lock in Period, if any) may be offered as security by way of a pledge / charge in favour of scheduled banks, financial institutions, non-banking finance companies (NBFCs), or any other person. The AMC and / or the ISC will note and record such Pledged Units. The AMC shall mark a lien only
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upon receiving the duly completed form and documents as it may require. Disbursement of such loans will be at the entire discretion of the bank / financial institution / NBFC or any other person concerned and the Mutual Fund assumes no responsibility thereof. The Pledger will not be able to redeem Units that are pledged until the entity to which the Units are pledged provides written authorisation to the Mutual Fund that the pledge / lien charge may be removed. As long as Units are pledged, the Pledgee will have complete authority to redeem such Units. Dividends declared on Units under lien will be paid / re-invested to the credit of the Unit Holder and not the lien holder unless specified otherwise in the lien letter. Lien on Units On an ongoing basis, when existing and new Investors make Subscriptions, a lien on Units allotted will be created and such unit shall not be available for redemption until the payment proceeds are realised by the Scheme. In case a unit holder redeems units soon after making purchases, the redemption cheque will not be dispatched until sufficient time has elapsed to provide reasonable assurance that cheques or drafts for Units purchased have been cleared. In case the cheque / draft is dishonoured by the bank, the transaction shall be reversed and the Units allotted earlier shall be cancelled, and a fresh Account Statement / Confirmation slip shall be dispatched to the Unit holder. For NRIs, the Scheme may mark a lien on Units in case documents which need to be submitted are not given in addition to the application form and before the submission of the redemption request. However, the AMC reserves the right to change operational guidelines for lien on Units from time to time. Suspension/Restriction on Redemption of Units of the Scheme Subject to the approval of the Boards of the AMC and of the Trustee and subject also to necessary communication of the same to SEBI, the redemption of / switch-out of Units of Scheme, may be temporarily suspended/ restricted. In accordance with SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2016/57 dated May 31, 2016 and subject to prevailing regulations, restriction on/suspension of redemptions / switch-out of Units of the Scheme, may be imposed when there are circumstances leading to systemic crisis or event that severely constricts market liquidity or the efficient functioning of markets such as: a) Liquidity issues: when market at large becomes illiquid affecting
almost all securities rather than any issuer specific security; b) Market failures, exchange closures: when markets are affected by
unexpected events which impact the functioning of exchanges or the regular course of transactions. Such unexpected events could also be related to political, economic, military, monetary or other emergencies;
c) Operational issues: when exceptional circumstances are caused by force majeure, unpredictable operational problems and technical failures (e.g. a black out).
Restriction on / suspension of redemption of Units of the Scheme may
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be imposed for a specified period of time not exceeding 10 working days in any 90 days period. When restriction on / suspension of redemption of Units of the Scheme is imposed, the following procedure shall be applied i. No redemption / switch-out requests upto Rs. 2 lakhs shall be
subject to such restriction. ii. Where redemption / switch-out requests are above Rs. 2 lakhs,
the AMC shall redeem the first Rs. 2 lakhs without such restriction and remaining part over and above Rs. 2 lakhs shall be subject to such restriction.
In addition to the above, the AMC / Trustee may restrict / suspend redemptions / switch-out of Units of the Scheme pursuant to direction/ approval of SEBI. In case of any of the above eventualities, the general time limits for processing requests for redemption of Units will not be applicable. Also refer to the paragraph ‘Suspension of Purchase and Redemption of Units’ in the Statement of Additional Information.
Third Party Payment Avoidance and additional documents / declaration required
Please refer SAI for details
Cash Investments in mutual funds
In order to help enhance the reach of mutual fund products amongst small investors, who may not be tax payers and may not have PAN/bank accounts, such as farmers, small traders/businessmen/workers, SEBI has permitted receipt of cash transactions for fresh purchases/ additional purchases to the extent of Rs. 50,000/- per investor, per mutual fund, per financial year subject to:
i. compliance with Prevention of Money Laundering Act, 2002 and Rules framed there under; the SEBI Circular(s) on Anti Money Laundering (AML) and other applicable Anti Money Laundering Rules, Regulations and Guidelines; and
ii. sufficient systems and procedures in place. However, payment towards redemptions, dividend, etc. with respect to aforementioned investments shall be paid only through banking channel. The Fund/ AMC is currently in the process of setting up appropriate systems and procedures for the said purpose. Appropriate notice shall be displayed on its website viz. as well as at the Investor Service Centres, once the facility is made available to the investors.
B. ONGOING OFFER DETAILS Default Plan/ Option
The investors may refer to the paragraph under New Fund offer Section for applicability of Direct Plan/ Regular Plan under different scenario.
Ongoing Offer Period
The Scheme has reopened for continuous subscription and redemption from January 7, 2010.
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This is the date from which the scheme will reopen for subscriptions/redemptions after the closure of the NFO period. Ongoing price for subscription (purchase) /switch-in (from other schemes/plans of the mutual fund) by investors. This is the price you need to pay for purchase/switch-in.
At the Applicable NAV SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 has decided that there shall be no entry Load for all Mutual Fund Schemes. Hence, no entry load is levied for subscription transactions by the Scheme. Methodology of calculating subscription price: Subscription Price = Applicable NAV*(1+Entry Load, if any) Example: If the Applicable NAV is Rs. 10, Entry Load is NIL then the subscription price will be: = Rs. 10* (1+NIL) = Rs. 10
Ongoing price for redemption (sale) /switch outs (to other schemes/plans of the Mutual Fund) by investors. This is the price you will receive for redemptions/switch outs.
At the Applicable NAV subject to prevailing Exit Load. Ongoing price for redemption /Switch out (to other Schemes/Plans of the Mutual Fund) is price which a Unit holder will receive for redemption/Switch-outs. During the continuous offer of the Scheme, the Unit holder can redeem the Units at Applicable NAV, subject to payment of Exit Load, if any. It will be calculated as follows: Methodology of calculating repurchase price: Redemption Price = Applicable NAV*(1-Exit Load, if any) Example: If the Applicable NAV is Rs. 10, Exit Load is 2% then redemption price will be: =Rs. 10* (1-0.02) = Rs. 9.80 Investors/Unit holders should note that the AMC/Trustee has right to modify existing Load structure and to introduce Loads subject to a maximum limits prescribed under the SEBI Regulations. Any change in Load structure will be effective on prospective basis and will not affect the existing Unit holder in any manner. However, the Mutual Fund will ensure that the Redemption Price will not be lower than 93% of the Applicable NAV provided that the difference between the Redemption Price and the Subscription /Purchase Price at any point in time shall not exceed the permitted limit as prescribed by SEBI from time to time, which is currently 7% calculated on the Subscription/ Purchase Price. The Purchase Price shall be at applicable NAV.
Cut off timing for subscriptions/ redemptions/ switches
Subscriptions/Purchases including Switch - ins: The following cut-off timings shall be observed by the Mutual Fund in respect of purchase of units of the Scheme and the following NAVs shall be applied for such purchase:
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This is the time before which your application (complete in all respects) should reach the official points of acceptance.
1. where the application is received upto 3.00 pm with a local cheque or demand draft payable at par at the place where it is received – closing NAV of the day of receipt of application;
2. where the application is received after 3.00 pm with a local cheque or demand draft payable at par at the place where it is received – closing NAV of the next Business Day;
3. where the application is received with an outstation cheque or demand draft which is not payable at par at the place where it is received – closing NAV of day on which the cheque or demand draft is credited;
4. In respect of purchase of units with amount equal to or more than Rs. 2 lakhs, irrespective of the time of receipt of application, the closing NAV of the day on which the funds are available for utilization shall be applicable.
For allotment of units in respect of purchase in the Scheme under Pt (4) above, it shall be ensured that: i. Application is received before the applicable cut-off time. ii. Funds for the entire amount of subscription/purchase as per the
application are credited to the bank account of the Scheme before the cut-off time.
iii. The funds are available for utilization before the cut-off time without availing any credit facility whether intra-day or otherwise, by the Scheme.
For allotment of units in respect of switch-in to the Scheme under Pt (4) above from other schemes, it shall be ensured that: i. Application for switch-in is received before the applicable cut-off
time. ii. Funds for the entire amount of subscription/purchase as per the
switch-in request are credited to the bank account of the Scheme before the cut-off time.
iii. The funds are available for utilization before the cut-off time without availing any credit facility whether intra-day or otherwise, by the Scheme.
Redemptions including Switch - outs: The following cut-off timings shall be observed by the Mutual Fund in respect of Repurchase of units: a. where the application received upto 3.00 pm – closing NAV of
the day of receipt of application; and b. an application received after 3.00 pm – closing NAV of the next
Business Day.
The above mentioned cut off timing shall also be applicable to transactions through the online trading platform. In case of Transaction through Stock Exchange Infrastructure, the Date of Acceptance will be reckoned as per the date & time; the transaction is entered in stock exchange’s infrastructure for which a system generated confirmation slip will be issued to the investor. Temporary Reduced cut-off timings for Subscriptions/switch-ins and Redemptions/ switch-outs:
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Pursuant to revised trading hours of various markets regulated by RBI as per its press release dated April 3, 2020, as amended from time to time, and as communicated by SEBI, the aforesaid cut-off timing for subscription and redemption transactions are temporarily reduced as under: In case of Subscription: 01.00 p.m. In case of Redemption: 01:00 p.m. The reduced cut-off timings will be applicable till further notice by RBI on the truncated market hours. For further updates this regard, investors are advised to visit website www.axismf.com to view the notice / addendum issued by Axis Mutual Fund from time to time.
Where can the applications for purchase/redemption switches be submitted?
Refer Back Cover Page
Minimum amount for purchase/redemption/switches
Minimum amount for purchase/Switch in Rs. 5,000 and in multiples of Re 1/- thereafter Minimum Additional Purchase Amount Rs.100 and in multiples of Re. 1/- thereafter Minimum Redemption Amount/Switch Out There will be no minimum redemption criterion. The Redemption / Switch-out would be permitted to the extent of credit balance in the Unit holder’s account of the Plan(s) / Option(s) of the Scheme (subject to completion of Lock-in period or release of pledge / lien or other encumbrances). The Redemption / Switch-out request can be made by specifying the rupee amount or by specifying the number of Units of the respective Plan(s) / Option(s) to be redeemed. In case a Redemption / Switch-out request received is for both, a specified rupee amount and a specified number of Units of the respective Plan(s)/ Option(s), the specified number of Units will be considered the definitive request. In case the value / number of available units held in the Unit holder’s folio / account under the Plan / Option of the Scheme is less than the amount / number of units specified in the redemption / switch-out request, then the transaction shall be treated as an all units redemption and the entire balance of available Units in the folio / account of the Unit holder shall be redeemed. In case of Units held in dematerialized mode, the Unit Holder can give a request for Redemption only in number of Units which can be fractional units also. Depository participants of registered Depositories can process only redemption request of units held in demat mode. The AMC/ Trustee reserves the right to change/ modify the terms of minimum redemption amount.
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Minimum balance to be maintained and consequences of non-maintenance.
Currently, tThere is no minimum balance requirement. However, the AMC / Trustee may decide to introduce minimum balance requirements later, if they so deem fit. In such case, in the event of non-maintenance of minimum balance for any particular situations, the Units may be compulsorily redeemed. In case balance in the account of the Unit holder does not cover the amount of Redemption request, then the Mutual Fund is authorized to redeem all the Units in the folio and send the Redemption proceeds to the Unit holder.
Special Products available
SYSTEMATIC INVESTMENT PLAN (SIP) Unit holder can enroll for the SIP facility by submitting duly completed Enrolment Form at the Official Point(s) of Acceptance. An Investor shall have the option of choosing any date of the Month as his SIP date other than 29th, 30th or 31st of a month. Minimum amount and minimum installments for monthly and yearly frequency under SIP Facility is as follows:
Frequency under SIP Facility
Minimum Installments
Minimum SIP amount
Monthly 6 Installments
Rs. 500/- and in multiple of Re. 1/-
Yearly 3 Installments
Rs. 12,000/- and in multiple of Re. 1/-
If the SIP period is not specified by the unit holder then the SIP enrolment will be deemed to be for perpetuity and processed accordingly. In case of SIP investments, where the entire installment amount is not available in bank account, the SIP for that month would be rejected. Allocation to a particular scheme or pro–rata allocation to schemes will not be carried out. i. SIP through post-dated cheques
The date of the first cheque shall be the same as the date of the application while the remaining cheques shall be post dated cheques which shall be dated uniformly. Investors can invest in SIP by providing post-dated cheques to Official Point(s) of Acceptance. An Investor is eligible to issue only one cheque for each month in the same SIP enrolment form. All SIP cheques should be of the same amount and same date option. Cheques should be drawn in favour of the Fund and “A/c Payee only”. A Letter will be forwarded to the Investor on successful registration of SIP. The Post Dated cheques will be presented on the dates mentioned on the cheque and subject to realization of the cheque.
ii. SIP through National Automated Clearing House (NACH)/Direct Debit facility
Investors / Unit holders may enroll for Direct Debit Facility available with specified Banks / Branches. In order to enroll for SIP Direct Debit Facility, an investor must fill-up the Application Form for SIP
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Direct Debit facility.
In case of SIP with payment mode as Direct Debit/Standing Instructions, investors shall be required to submit a cancelled cheque or a photocopy of a cheque of the bank account for which the debit mandate is provided with first installment through cheque. The SIP facility will also be available through standing instructions/direct debit given by the investor (with all payment installments being made through standing instructions/direct debit). However, the SIP facility with direct debit will be available through selected Banks. The Asset Management Company reserves the right to add/modify/delete from the list of banks through whom such facility will be available to the investors.
The unit holders can also make payment of SIP instalments through NACH facility. NACH is a centralized system, launched by National Payments Corporation of India (NPCI) with an aim to consolidate multiple NACH mandates. This facility will enable the unit holders of the Fund to make SIP investments through NACH by filling up the SIP Registration cum mandate form. A Unique number will be allotted to every mandate registered under NACH called as Unique Mandate Reference Number (“UMRN”) which can be used for SIP transactions. The NACH facility shall be available subject to terms and conditions contained in the SIP registration Mandate Form and as prescribed by NPCI from time to time. All SIP cheques/payment instructions should be of the same amount and same date (excluding first cheque). However, there should be a gap of 30 days between first SIP Installment and the second installment in case of SIP started during ongoing offer. Investors will have the right to discontinue the SIP facility at any time by sending a written request to any of the Official Point(s) of Acceptance. Notice of such discontinuance should be received at least 30 days prior to the due date of the next debit. On receipt of such request, the SIP facility will be terminated. It is clarified that if the Fund fails to get the proceeds from three Installments out of a continuous series of Installments submitted at the time of initiating a SIP, the SIP is deemed as discontinued. Units will be allotted at the Applicable NAV of the respective dates on which the investments are sought to be made. In case the date falls on a Non-business day, the immediate next Business Day will be considered for this purpose An extension of an existing SIP will be treated as a new SIP on the date of such application, and all the above conditions need to be met with. The Load structure prevailing at the time of submission of the SIP application (whether fresh or extension) will apply for all the Installments indicated in such application. The AMC has the authority to make available SIP by way of a salary savings scheme for a group of employees through an arrangement
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with their employers. For applicable Load on Purchases through SIP, please refer paragraph ‘Load Structure’ given in the document. The AMC reserves the right to change / modify Load structure and other terms and conditions under the SIP prospectively at a future date. Please refer to the SIP Enrolment Form for terms & conditions before enrolment. Systematic Investment Plan (SIP) Switch Facility Unit holders having registered SIP in the specified scheme(s) of the Fund can use SIP Switch Facility to terminate SIP in the existing scheme and initiate SIP in another specified scheme. SIP Switch Facility shall be available to unit holders under all open ended schemes of the Fund except for Axis Liquid Fund, Axis Overnight Fund, Axis Gold ETF, Axis Nifty ETF and Axis Children’s Gift Fund. The terms and conditions of SIP Switch Facility are as below: 1. SIP Switch Facility can be availed by unit holders only after
completion of minimum installments specified for SIP registration in the Switch-out (existing) scheme.
2. SIP Switch Facility will be considered as termination of SIP in Switch-out scheme and subscription of SIP in Switch-in scheme.
3. SIP in Switch-in scheme will be subject to the terms of offering specified in the SID of Switch-in scheme.
4. SIP registration end date should ensure compliance of minimum SIP installments prescribed in Switch-in scheme.
5. SIP Switch Facility is available for changing SIP investment mandate from one scheme to another specified scheme. The same is also available for switch between Plans / Options offered under same scheme. Further, the amount of installment, date and frequency of SIP and SIP end date of Switch-out scheme shall remain same as under Switch-in scheme.
6. The allotment of units of Switch-in scheme shall be in the same folio.
7. SIP Switch Facility is not available for SIP subscribed with post-dated cheques.
8. Investors will have the option of changing the distributor code from direct to regular/ regular to direct.
9. Unit holder must submit request for SIP Switch at least 21 days before the SIP due date.
Multiple SIPs Registration Mandate Unitholder can enroll multiple SIPs in different schemes by submitting one single application form/ payment instruction. All other terms and conditions applicable to SIP Facility shall be applicable for the facility. Systematic Investment Plan (SIP) Top-Up Facility The Facility enables unitholders to increase the SIP installment amount at pre-defined intervals by a fixed amount or anytime by a
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specified amount as per the request (in case of ‘As & When frequency’). 1. The terms and conditions of the Facility are as follows 2. Top-Up Amount: The minimum amount of Top-Up shall be Rs.
500/- and in multiple of Re. 1/-. In case of discrepancy in the Top-Up amount, SIP will be registered without Top-Up Facility.
3. Top-Up facility is available for SIP registered with Monthly frequency only.
4. Top-Up Frequency: Top-Up frequency is available only on ‘Half Yearly’, ‘Yearly’ and ‘As & When frequency’. In case the Top-Up frequency is not specified / is not legible, the default frequency will be ‘Yearly’, provided Top-Up amount is mentioned clearly.
5. The Facility shall be available for SIP Investments through Electronic Debit arrangement/ NACH (National Automated Clearing House) or as may be specified by AMC.
6. The Facility can be availed by filling up prescribed form at time of SIP Facility enrolment. Existing SIPs cannot be converted into the Facility.
7. The application form for availing the Facility should be submitted 21 days before the first SIP installment date.
8. The gap between SIP registration and first Top-Up request under 'As & When' frequency and two instructions under ‘As & When’ frequency should be at least 3 months.
9. The Facility shall continue till the end date of the SIP. The Facility can be discontinued only by cancelling the SIP.
10. All other terms and conditions applicable to SIP Facility shall be applicable for the Facility.
SIP Pause facility: Investors shall have an option to temporarily pause the SIP installments for a specified period of time. Upon expiry of the specified period, the SIP installments would re-start automatically. The terms and conditions of SIP Pause facility are as follows: 1. Under this Facility, investor has an option to temporarily pause
their registered Monthly SIP facility for a period of three months by submitting prescribed application form at any of the Official Points of Acceptance of Axis Mutual Fund or by submitting application in other modes made available by AMC.
2. The SIP Pause facility can be availed by investor only two times during the entire tenure of SIP.
3. The valid application to avail the Facility should be submitted to AMC at least 10 calendar days prior to the next Monthly SIP installment date (i.e. excluding the request date and the next SIP installment date). Investor cannot cancel the SIP Pause facility once requested.
4. The SIP Pause facility is only available under Monthly frequency. SIP pause facility is available only for investors with instalment amounts equal to or greater than SIP’s greater than Rs. 1,000/-.
5. SIP Pause facility can only be availed by investors who has completed 6 valid SIP installments.
6. The SIP shall restart automatically from the immediate next eligible installment after the completion of specified pause
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period. 7. This facility is not available for the SIPs sourced/registered through
MF Utilities India Pvt. Ltd. (“MFUI”), Stock Exchange Platforms of NSE & BSE and Channel partner platforms, as for such SIPs, the SIP mandates are registered by respective entities or for SIPs which are registered by investors as Standing Instructions with their Banks.
8. SIP Pause facility is not available for investors availing iPlus SIP Facility or Flex SIP facilities. For Top-up SIP facility, the top-up frequency would remain unchanged even if there is a pause in SIP instalment.
9. In case of multiple SIPs registered in a scheme, SIP Pause facility will be made applicable only for those SIP instalments whose SIP date, frequency, amount and Plan is specified clearly in the form.
10. AMC/Fund reserves the right to amend the terms and conditions of the SIP Pause facility and/or withdraw the said facility.
PURCHASE/ REDEMPTION OF UNITS THROUGH STOCK EXCHANGE INFRASTRUCTURE Investors can subscribe to the Units of Axis Mutual Fund through the mutual fund trading platforms of the Bombay Stock Exchange (“BSE”) and National Stock Exchange (“NSE”) – with NSDL and CDSL as depositories for such units of the mutual fund. NSE has introduced Mutual Fund Service System (MFSS) Platform and BSE has introduced BSE StAR MF Platform. The following are the salient features of the MFSS / BSE StAR MF Platform: 1. The facility i.e. purchase/redemption/SIP (Systematic Investment
Plan) is available for both existing and new investors. 2. The Investors will be eligible to purchase/redeem units of the
Scheme. 3. The facility can be availed by both, investors under Direct Plan
offered by the schemes and investors investing through Distributors under the Regular Plan offered by the schemes.
4. List of additional Official Point of Acceptance The following shall be the additional Official Point of Acceptance of Transactions for the Scheme: All trading members of BSE & NSE who are registered with AMFI as Mutual Fund Advisors and also registered with BSE &/ or NSE as Participants ("AMFI registered stock exchange brokers") will be eligible to offer this facility to investors and shall be treated as Official Point of Acceptance. Units of mutual fund schemes shall be permitted to be transacted through clearing members of the registered Stock Exchanges. Further, the Depository Participants of registered Depositories are permitted to process only redemption request of units held in demat form.
Clearing members and Depository participants will be considered
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as Official Points of Acceptance of Axis Mutual Fund and conditions stipulated in SEBI circular no. SEBI/IMD/CIR No.11/ 183204/2009 dated November 13, 2009 for stock brokers viz. AMFI /NISM certification, code of conduct prescribed by SEBI for Intermediaries of Mutual Fund, shall be applicable for such Clearing members and Depository participants as well.
5. The units of the Scheme are not listed on BSE & NSE and the same cannot be traded on the Stock Exchange. The window for purchase/redemption of units on MFSS/ BSE StAR Platform will be available between 9 a.m. and 3 p.m. or such other timings as may be decided.
6. Transactions only in demat mode will be currently permitted through MFSS / BSE StAR MF Platform.
7. Investors will be able to purchase/redeem units in the scheme in the following manner:
(i) Investors shall receive redemption amount (if units are redeemed) and units (if units are purchased) through broker/ clearing member's pool account. Axis AMC/Axis Mutual Fund (the "Mutual Fund") shall pay proceeds to the broker/clearing member (in case of redemption) and broker/clearing member in turn to the respective investor and similarly units shall be credited by the AMC/ Mutual Fund into broker/clearing member's pool account (in case of purchase) and broker/clearing member in turn shall credit the units to the respective investor's demat account.
(ii) Payment of redemption proceeds to the broker/clearing members by AMC/Mutual Fund shall discharge AMC/Mutual Fund of its obligation of payment to individual investor. Similarly, in case of purchase of units, crediting units into broker/clearing member pool account shall discharge AMC/Mutual Fund of its obligation to allot units to individual investor.
8. Applications for purchase/redemption of units which are incomplete /invalid are liable to be rejected.
9. For all the transactions done through these platforms, separate Folio. No. shall be allotted to the existing and the new investors. The bank a/c number, address, nomination details etc. shall be the same as per the Demat account of the investor. In case of non-financial requests/applications such as change of address, change of bank details, etc. for units held in demat mode investors should approach the respective Depository Participant(s) and OPAT of AMC for units held in physical mode.
10. Investors will have to comply with Know Your Customer (KYC) norms as prescribed by BSE/NSE/CDSL/ NSDL and Axis Mutual Fund to participate in this facility.
11. Investors should get in touch with Investor Service Centres (ISCs) of Axis Mutual Fund for further details.
Transaction through Stock Exchange infrastructure using services of
Distributor/ SEBI Registered Investment Advisor: SEBI circular no. CIR/MRD/DSA/32/2013 dated October 4, 2013 and circular no. CIR/MRD/DSA/33/2014 dated December 9, 2014, has permitted Mutual Fund Distributors (“MF Distributors”) and SEBI circular no. SEBI/HO/MRD/DSA/CIR/P/2016/113 dated October 19,
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2016 permitted SEBI Registered Investment Advisors (“RIAs”) to use recognized Stock Exchange infrastructure to purchase/redeem units directly from Mutual Fund/AMC on behalf of their clients. MF Distributor registered with AMFI or RIAs, will be eligible to use NMF-II platform of NSE (in addition to other intermediaries) and / or of BSE StAR MF platform of BSE to purchase and redeem units of schemes of the Fund. In addition to the guidelines specified for transacting through MFSS/BSE StAR MF Platform above, following guidelines shall be applicable for transactions executed through MF Distributors/ RIAs on NMF-II / BSE StAR MF Platform: 1. MF distributors/RIAs shall not handle pay out/pay in of funds as
well as units on behalf of investor. Pay in will be directly received by recognized clearing corporation and payout will be directly made to investor account. In the same manner, units shall be credited and debited directly from the demat account of investors.
2. Transactions only in physical (non-demat) transactions will be permitted through NMF-II / BSE StAR MF Platform.
The facility of transacting in mutual fund schemes through stock exchange infrastructure is available subject to such operating guidelines, terms and conditions as may be prescribed by the respective Stock Exchanges from time to time. SYSTEMATIC TRANSFER PLAN (STP) Investors can opt for the Systematic Transfer Plan by investing a lumpsum amount in one scheme of the Fund and providing a standing instruction to transfer sums at following intervals into any other scheme (as may be permitted by the Scheme Information Document of the respective schemes) of the Fund.
STP Frequency Cycle Date
Minimum Amount* (in Rs.)
Minimum Installment
Daily Monday To Friday 1,000/- 6 Weekly Monday To Friday 1,000/- 6
Fortnightly Alternate Wednesday 1,000/- 6 Monthly 1st, 7th, 10th, 15th or 25th 1,000/- 6
Quarterly 1st, 7th, 10th, 15th or 25th 3,000/- 2 In case Day of Transfer has not been indicated under Weekly frequency, Wednesday shall be treated as Default day. Further, in case of Monthly and Quarterly Frequency, if the STP date and Frequency has not been indicated, Monthly frequency shall be treated as Default frequency and 10th shall be treated as Default Date. In case none of the frequencies have been selected then Monthly frequency shall be treated as Default frequency and 10th shall be treated as Default Date. Investors could also opt for STP from an existing account by quoting
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their account / folio number. A minimum period of 7 working days shall be required for registration under STP. Units will be allotted/ redeemed at the applicable NAV of the respective dates of the Scheme in which such investments/ withdrawals are sought from the Scheme. The requests for discontinuation of STP shall be subject to an advance notice of 15 days before the next due date for STP and it will terminate automatically if all Units are liquidated or withdrawn from the account or upon the Funds’ receipt of notification of death or incapacity of the Unit holder. The AMC reserves the right to introduce STPs at any other frequencies or on any other dates as the AMC may feel appropriate from time to time. In the event that such a day is a Holiday, the transfer would be affected on the next Business Day. Further, in case where the balance amount in a folio is less than the STP amount, the entire amount will be transferred to the transferee scheme. For further details/ clarifications investors may contact the distributor(s) or the ISCs of the AMC. CAPITAL APPRECIATION SYSTEMATIC TRANSFER PLAN (CAPSTP) Under this facility, the investors can opt for the Systematic Transfer Plan by investing a lump sum amount in one scheme of the Fund and providing a standing instruction to transfer capital appreciation at regular intervals - Weekly or Monthly or Quarterly into any other scheme (as maybe permitted by the Scheme Information Document of the respective schemes) of Axis Mutual Fund. The capital appreciation, if any, will be calculated from the enrolment date of the CapSTP under the folio, till the first transfer date. Subsequent capital appreciation, if any, will be the capital appreciation between the previous CapSTP date (where CapSTP has been processed and paid) and the next CapSTP date There are three options available under CapSTP viz. Weekly, Monthly and Quarterly option, the details of which are given below:
CapSTP Frequency Cycle Date
Minimum Amount* (in Rs.)
Minimum Installment
Weekly Monday To Friday 500/- 6 Monthly 1st, 7th, 10th, 15th or 25th 500/- 6
Quarterly 1st, 7th, 10th, 15th or 25th 1,000/- 2 The provision of ‘Minimum Redemption Amount’ as specified in the Scheme Information Document of the respective designated Transferor Schemes and ‘Minimum Application Amount’ specified in the Scheme Information Document of the respective designated Transferee Schemes will not be applicable for CapSTP.
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Unit holders are required to fill in either the number of installments or the enrolment period in the enrolment Form, failing which the Form is liable to be rejected. In case, the Enrolment Period has been filled, but the CapSTP Date and/or Frequency (Monthly/ Quarterly) has not been indicated, Monthly frequency shall be treated as Default frequency and 10th shall be treated as Default Date. In case of weekly frequency, Wednesday shall be treated as Default day. In case none of the frequency is selected then Monthly frequency shall be treated as Default frequency and 10th shall be treated as Default Date. The application for CapSTP enrolment - Monthly & Quarterly frequency should be submitted at least 7 working days and not more than 90 days before the desired commencement date. In respect of CapSTP, the Load Structure prevalent at the time of enrolment shall govern the investors during the tenure of the CapSTP. A minimum period of 7 working days shall be required for registration under CapSTP. Units will be allotted/redeemed at the applicable NAV (of the respective date(s)) of the Scheme from/to which such withdrawals/investments are being made. The AMC reserves the right to introduce CapSTPs at any other frequencies or on any other dates as the AMC may feel appropriate from time to time. In the event that such a day is a Holiday, the transfer would be affected on the next Business Day. The requests for discontinuation of CapSTP shall be subject to an advance notice of 15 days before the next due date for CapSTP. CapSTP will terminate automatically if all Units are liquidated or withdrawn from the account or upon the Funds’ receipt of notification of death or incapacity of the Unit holder. Further, in case where the balance amount in a folio is less than the CapSTP amount, the entire amount will be transferred to the transferee scheme. FLEX - SYSTEMATIC INVESTMENT PLAN/ SYSTEMATIC TRANSFER PLAN ("Flex SIP/ Flex STP") Terms and conditions of Flex SIP/STP are as follows: 1. Flex SIP is a facility wherein an investor can opt to invest variable
amount linked to the value of his investments in any of the existing open ended scheme(s) of Axis Mutual Fund (“Investee scheme”), on pre-determined date. This facility allows investors to take advantage of market movements by investing higher when the markets are low and vice-versa.
2. Flex STP is a facility wherein an investor under any of the existing open ended scheme(s) of Axis Mutual Fund can opt to transfer variable amount linked to value of his investments, on predetermined date from designated open-ended Scheme(s) of
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Axis Mutual Fund ("Transferor Scheme") to the Growth Option of designated open-ended Scheme(s) ("Transferee Scheme").
3. A single Flex SIP/STP Enrolment Form can be filled for investment/ transfer into one Scheme/Plan/Option only.
4. In case of valid enrolment forms received, indicating choice of option other than the growth option in the Investee / Transferee Scheme, it will be deemed as the growth option in the Investee / Transferee Scheme and processed accordingly.
5. In case of Flex STP, unit holders' details and mode of holding (single, jointly, anyone or survivor) in the Transferee Scheme will be as per the existing folio number of the Transferor Scheme. Units will be allotted under the same folio number. Unitholders' name should match with the details in the existing folio number, failing which the enrolment form is liable to be rejected.
6. The minimum number of installments for enrollment and Amount under Flex STP:
Frequency under Flex-STP Facility
Minimum Installments
Minimum Flex-STP amount (Rs.)
Monthly (1st, 7th,10th,15th or 25th)
6 Rs. 1,000/- and in multiple of Rs. 1/-
Quarterly (1st, 7th,10th,15th or 25th)
2 Rs. 3,000/- and in multiple of Rs. 1/-
7. The minimum number of installments for enrollment and Amount
under Flex SIP: Frequency
under Flex-SIP Facility
Minimum Installments
Minimum Flex-SIP amount (Rs.)
Monthly 12 Installments for all schemes
Rs. 500/- and in multiple of Rs. 1/-
Yearly 3 Installments for all schemes
Rs. 12,000/- and in multiple of Rs. 1/-
There is no maximum duration for Flex SIP/ STP enrolment.
8. Calculation of Flex STP
Under the Flex STP – (as per the Frequency) unit holders will be eligible to transfer fixed amount to be transferred per installment OR the amount as determined by the following formula whichever is higher: Fixed installment amount or (number of installments including the current installment X fixed amount to be transferred per installment) - market value of the investments through Flex STP in the Transferee Scheme on the date of transfer whichever is Higher In case of Flex STP, if the amount (as specified by the formula) to be transferred under STP is not available in the Transferor Scheme in the unit holder's account, the residual amount will be transferred to the Transferee Scheme and Flex STP will be closed.
Calculation of Flex SIP
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Under the Flex SIP – (as per the Frequency) unit holders will be eligible to invest fixed amount to be invested per installment OR the amount as determined by the following formula whichever is higher: Fixed installment amount or (number of installments including the current installment X fixed amount to be invested per installment) - market value of the investments through Flex SIP* in the Investee Scheme whichever is Higher
*The installment value of FLEX SIP will be determined on the basis of NAV on 10th day (T-10) before the installment date. If T-10th day falls on a Non-Business day, then valuation will be done on T-11th day.
In case of Flex SIP, the required amount is not available in the designated bank account and the debit instruction fails then Flex SIP will be stopped.
9. If the NAV falls continuously throughout the Flex STP period, number of installments may be less than those mentioned on application form.
10. The first Flex SIP/STP instalment will be processed for the fixed instalment amount specified by the unit holder at the time of enrolment. From the second Flex SIP/STP instalment onwards, the investment/ transfer amount shall be computed as per formula stated above.
11. In case the date of investment/ transfer falls on a Non-Business Day, the immediate next Business Day will be considered for the purpose of determining the applicable NAV.
12. Once the Flex SIP/ STP have been stopped the unit holder needs to provide a new request to start Flex SIP/ STP.
13. The redemption/ switch-out of units allotted in the Investee/ Transferee Scheme shall be processed on First in First out (FIFO) basis. If there are other financial transaction (purchase, redemption or switch) processed in the Investee/ Transferee scheme during the tenure of Flex SIP/ STP, the Flex SIP / STP will be processed as normal SIP / STP for the rest of the installments for a fixed amount.
14. In respect of Flex SIP / STP enrollments made in any of the existing open ended Scheme(s), the Load Structure prevalent at the time of enrollment shall be applicable to the investors during the tenure of the Flex SIP / STP. Load structure for investments through Flex SIP / STP to the Schemes eligible for this facility: a. Exit Load of the Transferor Scheme(s) The amount transferred under the Flex STP from the Transferor Scheme to the Transferee Scheme shall be affected by switching units of Transferor Scheme at applicable NAV, after payment of exit load, if any, and subscribing to the units of the Transferee Scheme at Applicable NAV. b. Exit Load of the Investee /Transferee Scheme(s) Applicable Exit Load, if any, in the Investee / Transferee Schemes Plan /Option as on the date of enrollment will also be levied. For Scheme load structure please refer to SID/ KIM or contact the nearest Investor Service Centre (ISC) of Axis Mutual Fund or visit
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our website www.axismf.com. 15. Flex STP will be automatically terminated if all units are liquidated
or withdrawn from the Transferor Scheme or pledged or upon receipt of intimation of death of the unit holder.
16. The provision of 'Minimum Redemption Amount' as specified in the Scheme Information Document of the respective designated Transferor Scheme(s) and 'Minimum Application Amount' specified in the Scheme Information Document of the respective designated Transferee Scheme(s) will not be applicable for Flex SIP/ STP.
17. The request for Flex SIP/ STP should be submitted at least 25 calendar days before the first SIP and at least 7 calendar days before STP date.
18. Unit holders have a right to discontinue the Flex SIP/ STP facility at any time by sending a written request to the ISC. On receipt of such request, the Flex SIP / STP facility will be terminated within 20 working days.
19. All other terms & conditions of Systematic Investment Plan and Systematic Transfer Plan are applicable to Flex SIP and STP respectively.
Illustration: Calculation of Flex STP Flex SIP/ STP that transfers Rs. 3,000/- every month from the Debt Fund to an Equity Fund.
Transferor Scheme: Axis Regular Saver Fund Transferee Scheme: Axis Bluechip Fund - Growth
Option Date & Frequency of Flex STP: 10th date - Monthly Interval Amount of Transfer per Installment Rs 3,000/- Number of Installments: 12 Enrolment Period: January - December 2013
Calculation of Flex STP instalment amount on the date of the fourth instalment i.e. April 10, 2013
i. Total units allotted up to the date of last installment i.e. March 10, 2013 is assumed as 822.73;
ii. NAV of Axis Bluechip Fund - Growth Option on April 10, 2013 is assumed as Rs. 9/- per unit;
iii. Hence the market value of the investment in the Investee / Transferee Scheme on the date of investment/ transfer is Rs. 7, 404.55 [822.73X 9].
The installment amount will be calculated as follows: a) Fixed amount specified at the time of enrolment:
Rs. 3,000/- Or
b) As determined by the formula: (3,000 X 4) – 7,404.55 = Rs. 4,595/-
a) or b) Whichever is Higher. Hence, on April 10, 2013, the installment amount to be transferred to the Transferee Scheme will be Rs. 4,595/- Illustration: Calculation of Flex SIP
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Investee Scheme: Axis Bluechip Fund - Growth Option
Date & Frequency of Flex SIP: 10th date - Monthly Interval Amount per Installment Rs 3,000/- Number of Installments: 12 Enrolment Period: January - December 2013
Calculation of Flex SIP instalment amount for the 4th instalment i.e. April 10, 2013
i. Total units allotted up to the date of last installment i.e. March 10, 2013 is assumed as 822.73;
ii. NAV of Axis Bluechip Fund - Growth Option on T-10th day* is assumed as Rs. 9/- per unit;
iii. Hence the market value of the investment in the Investee Scheme on T-10th day is Rs. 7,404.55 [822.73X 9].
The installment amount will be calculated as follows: a. Fixed amount specified at the time of enrolment:
Rs. 3,000/- Or
b. As determined by the formula: (3,000 X 4) – 7,404.55 = Rs. 4,595/-
a) or b) Whichever is Higher. Hence, on April 10, 2013, the installment amount to be invested to the Investee Scheme will be Rs. 4,595/- *The installment value of Flex SIP will be determined on the basis of NAV on 10th day (T-10) before the installment date. In the above example T-10th day will be 31st March 2013 Investors are advised to read the SID/KIM of the Transferee Scheme and Statement of Additional Information (SAI) carefully before investing. The SID/ KIM of the respective Scheme(s) are available with the ISCs of Axis Mutual Fund, brokers/distributors and also displayed on the Axis Mutual Fund website i.e. www.axismf.com SYSTEMATIC WITHDRAWAL PLAN (SWP) Existing Unitholders have the benefit of availing the choice of SWP on pre-specified dates. The SWP allows the Unitholder to withdraw a specified sum of money each month/quarter from his investments in the Scheme. The amount thus withdrawn by redemption will be converted into Units at Applicable NAV based prices and the number of Units so arrived at will be subtracted from the Units balance to the credit of that Unitholder. Unitholders may start the facility/change the amount of withdrawals or the period of withdrawals by giving a 15 days written intimation/notice. The SWP may be terminated by a Unitholder by giving 15 days written intimation/notice and it will terminate automatically if all the Units are liquidated or withdrawn from the account or the holdings fall below the SWP installment amount.
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There are four options available under SWP viz. Monthly option, quarterly option, Half Yearly and Yearly option. The details of which are given below:
Monthly Option
Quarterly Option
Half Yearly Option
Yearly Option
Minimum value of SWP
Rs. 1,000/-
Additional amount in multiples of
Re.1
Dates of SWP Installment
1/5/10/15/25*
Minimum No of SWP Six Four Four Two * In the event that such a day is a holiday, the withdrawals would be affected on the next business day. Exit Load, if any, is applicable to SWP. The AMC reserves the right to accept SWP applications of different amounts, dates and frequency. Unitholders can enroll themselves for the facility by submitting the duly completed Systematic Withdrawal enrolment Form at any of the Investor Service Centres (ISCs)/Official Points of Acceptance (OPAs). The AMC / Trustee reserve the right to change / modify the terms and conditions under the SWP prospectively at a future date. Investments through systematic routes: (a) In case of Systematic Investment Plan (SIP) / Systematic Transfer
Plan (STP) etc. registered prior to the Effective Date without any distributor code under the Regular Plan, installments falling on or after the Effective Dates will automatically be processed under the Direct Plan.
(b) Investors who had registered for Systematic Investment Plan facility prior to the Effective Date with distributor code and wish to invest their future installments into the Direct Plan, shall make a written request to the Fund in this behalf. The Fund will take at least 15 days to process such requests. Intervening installments will continue in the Regular Plan. In case of (a) and (b) above, the terms and conditions of the existing registered enrolment shall continue to apply. In case of Systematic Transfer Facilities (registered with Distributor Code) were registered under the Regular Plan prior to the Effective Date the future installments shall continue under the Regular Plan.
In case such investors wish to invest under the Direct Plan through these facilities, they would have to cancel their existing enrolments and register afresh for such facilities.
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SWITCHING OPTIONS (a) Inter - Scheme Switching option Unit holders under the Scheme have the option to Switch part or all of their Unit holdings in the Scheme to any other scheme offered by the Mutual Fund from time to time. The Mutual Fund also provides the Investors the flexibility to Switch their investments from any other scheme(s) / plan(s) offered by the Mutual Fund to this Scheme. This option will be useful to Unit holders who wish to alter the allocation of their investment among the scheme(s) / plan(s) of the Mutual Fund in order to meet their changed investment needs. The Switch will be effected by way of a Redemption of Units from the Scheme at Applicable NAV, subject to Exit Load, if any and reinvestment of the Redemption proceeds into another scheme offered by the Mutual Fund at Applicable NAV and accordingly the Switch must comply with the Redemption rules of switch out Scheme and the Subscription rules of the switch in scheme. However, no load will be charged for switches between equity schemes. (b) Intra -Scheme Switching option Unit holders under the Scheme have the option to Switch their Unit holdings from one option to another option (i.e. Growth to Dividend and vice-a-versa). The Switches would be done at the Applicable NAV based prices and the difference between the NAVs of the two options will be reflected in the number of Units allotted. Switching shall be subject to the applicable “Cut off time and Applicable NAV” stated elsewhere in the Scheme Information Document. In case of “Switch” transactions from one scheme to another, the allocation shall be in line with Redemption payouts. TRANSACTION ON FAX In order to facilitate quick processing of transaction and / or instruction of investment of Investor the AMC/ Trustee/ Mutual Fund may (at its sole discretion and without being obliged in any manner to do so and without being responsible and/ or liable in any manner whatsoever) accept and process any application, supporting documents and / or instructions submitted by an Investor / Unit holder by facsimile (Fax Submission) and the Investor / Unit holder voluntarily and with full knowledge takes and assumes any and all risk associated therewith. The AMC / Trustee/ Mutual Fund shall have no obligation to check or verify the authenticity or accuracy of Fax Submission purporting to have been sent by the Investor and may act thereon as if same has been duly given by the Investor. In all cases the Investor will have to immediately submit the original documents/ instruction to AMC/ Mutual Fund. ONLINE TRANSACTIONS Axis Mutual Fund will allow Transactions including by way of Lumpsum Purchase/ Redemption / Switch of Units by electronic mode through the AMC web –site/Mobile Application. The Subscription proceeds, when invested through this mode, are by way
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of direct debits to the designated bank through payment gateway. The Redemption proceeds, (subject to deduction of tax at source, if any) through this mode, are directly credited to the bank account of the Investors who have an account at the designated banks with whom the AMC has made arrangements from time to time or through NEFT/RTGS or through cheque/Payorder/Demand draft issuance. The AMC will have right to modify the procedure of transaction processing without any prior intimation to the Investor. Investment amount through this facility may be restricted by the AMC from time to time in line with prudent risk management requirements and to protect the overall interest of the Investors. For details of the facility, investors are requested to refer to the website of the AMC. TRANSACTIONS THROUGH ELECTRONIC PLATFORM(S) OF KFIN TECHNOLOGIES PVT. LTD. Investors will be allowed to transact through https://mfs.kfintech.com/mfs/, an electronic platform provided by M/s. KFin Technologies Pvt. Ltd., Registrar & Transfer Agent, in Schemes of Axis Mutual Fund (‘Fund’) (except Axis Gold ETF and Axis Nifty ETF). The facility will also be available through mobile application of KFin Technologies Pvt. Ltd.. The uniform cut off time as prescribed under the SEBI (Mutual Funds) Regulations, 1996 and as mentioned in SID and KIM of the Scheme will be applicable for transactions received through the above electronic platform and the time of receipt of transaction recorded on the server(s) of KFin Technologies Pvt. Ltd. will be reckoned as the time for the purpose of determining applicability of NAV, subject to credit of funds to bank account of scheme, wherever applicable. The facility is subject to operating guidelines, terms and conditions as may be prescribed by KFin Technologies Pvt. Ltd. or as may be specified by Axis AMC from time to time. For operating guidelines and terms and conditions, investors are requested to visit https://mfs.kfintech.com/mfs/. Time of receipt of transaction recorded on the server(s) of KFin Technologies Pvt. Ltd. will continue to be reckoned for electronic transactions received through AMC website/ Distributor website/ applications etc subject to credit of funds to bank account of scheme, wherever applicable. ONLINE SCHEDULE TRANSACTION FACILITY (‘THE OST FACILITY’/ ‘THE FACILITY’): The OST facility shall enable Unitholders to schedule subscription / redemption / switch transaction(s) on specified date for specified amount/ units by giving online instruction. The terms and conditions of the OST facility shall be as under: 1. The Facility is available to the existing Unitholders of open ended
schemes of Axis Mutual Fund (except Axis Gold ETF and Axis Nifty
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ETF), subject to completion of lock-in, if any. 2. The Facility is available only to Individual (including sole
proprietor) Unitholders for units held in / subscription in physical mode.
3. The Facility for subscription transaction would be available to unitholders after completion of OTM Mandate / Easycall mandate/ equivalent mandate registration process and as per limits specified therein.
4. Under the Facility the transaction can be scheduled to be executed on a specified date which shall be within 30 calendar days from the date of the instruction. Such specified date shall be a business day. In case the scheduled transaction date falls on a non-business day, the transaction will be executed on the immediately following business day.
5. The Facility shall be available on online transaction platform(s) viz website of Axis AMC i.e. www.axismf.com. Axis AMC may extend the Facility to other transaction platforms from time to time, at its discretion.
6. The scheduled transaction may be cancelled by giving suitable instruction atleast one calendar day prior to the scheduled transaction date.
7. The triggered transaction on the scheduled date shall be considered as time stamped and will be executed on the specified date at the applicable NAV of the relevant scheme. In case the specified date happens to be a non-business day in debt schemes but is a business day in equity schemes, switch-out from equity schemes will be processed on the specified date, while the switch-in to debt/liquid schemes will be processed on the next business day.
8. The scheduled transaction(s) shall be subjected to exit load, minimum subscription/additional subscription application and other terms and conditions of the relevant scheme as per SID applicable on the specified date.
9. The scheduled transaction shall be liable to be rejected if sufficient amount is not available for subscription or sufficient number of units / amount is not available for redemption.
10. Redemption transactions will not be executed in case units are pledged or where lien is marked on units, at the time of online instruction / on specified date.
11. Unitholders availing of this facility shall acquaint themselves with the features of the Scheme, including any modification / amendments carried out before the specified date.
The Facility is an additional facility provided to the Unitholders to plan their transactions in schemes using online platforms. Axis AMC / Trustee reserves the right to change/ modify the terms and conditions or to make operational rules for operation of the Facility from time to time. EASY CALL FACILITY All individual investors in the scheme applying on “Sole” or “Joint (Anyone or Survivor)” basis in their own capacity shall be eligible to avail of Easy Call facilities for permitted transactions inter alia on the
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following terms and conditions (“Terms and Conditions” mean the terms and conditions set out below by which the Facility shall be used/availed by the Investor/s and shall include all modifications and supplements made by AMC thereto from time to time). Axis Mutual Fund will allow transactions including by way of Lumpsum Purchase/ Redemption / Switch of Units over phone. Initial Investment has to be through physical mode wherein he has to sign a one time debit mandate for bank accounts pertaining to designated banks with which the AMC may have an arrangement. This facility is extended to the bank with which the Fund would have an arrangement from time to time. Investment amount may be restricted by the AMC from time to time in line with prudent risk management requirements and to protect the overall interest of the Investors. Investor will be allowed transactions over phone after 30 days from the date of submission of one time mandate. Investor will not be permitted to avail the Easy call facility for Redemptions/Switch transactions if bank mandate is changed with in last 15 days. AMC will have right to modify the procedure of transaction processing without any prior intimation to the Investor. AMC retains the right to maintain call records of the communication with investors, for lawful purposes. The AMC has a right to ask such information (Key Information) from the available data of the Investor/s before allowing him access to avail the Facility. If for any reason, the AMC is not satisfied with the replies of the Investor/s, the AMC has at its sole discretion the right of refusing access without assigning any reasons to the Investor/s. It is clarified that the Facility is a service provided to the Investor/s and is offered at the sole discretion of the AMC. The AMC is not bound and/or obliged in any way to offer this Facility to Investor/s. The Investor/s shall check his/her account records carefully and promptly. If the Investor/s believes that there has been a mistake in any transaction using the Facility, or that unauthorized transaction has been effected, the Investor/s shall notify the AMC immediately. If the Investor/s defaults in intimating the discrepancies in the statement within a period of fifteen days of receipt of the statements, he waives all his rights to raise the same. By opting for the facility the Investor/s hereby irrevocably authorizes and instructs the AMC to act on his /her behalf and to do all such acts as AMC may find necessary to provide the Facility. The Investor/s shall at all times be bound by any modifications and/or variations made to these Terms and Conditions by the AMC at their sole discretion and without notice to them. The Investor/s agrees and confirms that the AMC has the right to ask the Investor/s for an oral or written confirmation of any transaction request using the Facility and/or any additional information regarding the Account of the Investor/s.
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The Investor/s agrees and confirms that the AMC may at its sole discretion suspend the Facility in whole or in part at any time without prior notice. The Investor/s shall not assign any right or interest or delegate any obligation arising herein. The Investor/s shall take responsibility for all the transactions conducted by using the Facility and will abide by the record of transactions generated by the AMC. Further, the Investor/s confirms that such records generated by the AMC shall be conclusive proof and shall be binding for all purposes and may be used as evidence in any proceedings and that the investor(s) unconditionally waives all objections in this behalf. The Investor/s agree that use of the Facility will be deemed to be an acceptance of the Terms and Conditions and the Investor/s will unequivocally be bound by these Terms and Conditions. The Investor agrees that all calls received shall be eligible for applicable NAV subject to necessary formalities to be complied by the AMC in case of transaction through Easy Call Facility on or before the uniform cut off time. Requests like change in bank mandate, change of nomination, change in mode of holding, change of address or such other requests as the AMC may decide from time to time will not be permitted using the Easy Call facility. The investor agrees to indemnify and keep indemnified Axis AMC its Directors, employees, representatives and service providers of the AMC, Axis Mutual Fund and Trustees (indemnified parties) from and against all actions, claims, demands, liabilities, obligations, losses, damages, costs and expenses of whatever nature (whether actual or contingent) directly or indirectly suffered or incurred, by the indemnified parties whatsoever arising from or in connection with the Facility. The Investor/s shall not hold the AMC liable and shall keep it indemnified for the following: 1) For any transaction using the Facilities carried out in good faith
by the AMC on instructions of the Investor/s. 2) For any loss or damage incurred or suffered by the Investor/s due
to any error, defect, failure or interruption in the provision of the Facility.
3) For any negligence / mistake or misconduct by the Investor/s. 4) For any breach or non-compliance by the Investor/s of the
rules/terms and conditions stated in this Document. 5) For accepting instructions given by any one of the Investor/s in
case of joint account/s having mode of operations as ““Anyone or survivor”.
6) For not carrying out any such instructions where the AMC has reason to believe (which decision of the AMC the Investor/s shall not question or dispute) that the instructions given are not genuine or are otherwise improper, unclear, vague or raise a doubt.
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7) For carrying out a transaction after such reasonable verification as the AMC may deem fit regarding the identity of the Investor/s
MISCELLANEOUS: 1) The Investor/s agrees and understands that while this Facility is
being introduced without any charges being levied; in case charges are to be levied on a future date he agrees to pay such charges and nonpayment in such an event can lead to termination of these services.
2) Any dispute arising out of or in connection with these Terms and Conditions, will be referred to the arbitration of a sole arbitrator to be appointed by the AMC, in accordance with the Arbitration & Conciliation Act, 1996.
3) These Terms and Conditions are subject to applicable SEBI (Mutual Funds) Regulations, 1996 as amended from time to time and includes Guidelines, Circular press release or Notification that may be issued.
EASY SMS FACILITY This facility is available for individual investors (registration process to be completed by the investor to avail this facility). For details of the registration process, please contact our Investor Service Centres/website of the AMC. All individual investors applying on “Sole” or “Joint (Anyone or Survivor)” basis in their own capacity shall be eligible to avail the facility for permitted transactions i.e. for lump sum purchase, redemption and switch transactions on the below mentioned terms and conditions: “Terms and Conditions” mean the terms and conditions set out below by which the Facility shall be used/availed by the Investors and shall include all modifications and supplements made by AMC thereto from time to time. Initial Investment has to be through the physical mode wherein the Investor has to sign a one time debit mandate for bank accounts pertaining to designated banks with which the AMC may have an arrangement. This facility is extended to the bank with which the Fund would have an arrangement from time to time. Transaction amount may be restricted by the AMC from time to time in line with prudent risk management requirements and to protect the overall interest of the Investors. Investor will be allowed transactions over SMS after 30 days from the date of submission of one time mandate. Investor will not be permitted to avail the facility for Redemptions/Switch transactions if bank mandate is changed within last 15 days. AMC will have right to modify the procedure of transaction processing without any prior intimation to the Investor. The AMC has a right to ask such information (Key Information) from the available data of the Investors before allowing him access to avail the Facility. If for any reason, the AMC is not satisfied with the replies of the Investors, the AMC has at its sole discretion the right of refusing access without assigning any reasons to the Investors. This facility can be availed only through the registered mobile
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number of the Investor. It is clarified that the Facility is only with a view to accommodate /facilitate the Investors and offered at the sole discretion of the AMC. The AMC is not bound and/or obliged in any way to give access to Facility to Investors. The Investors shall check his/her account records carefully and promptly. If the Investors believe that there has been a mistake in any transaction using the Facility, or that unauthorized transaction has been effected, the Investors shall notify the AMC immediately. If the Investors defaults in intimating the discrepancies in the statement within a period of fifteen days of receipt of the statements, he waives all his rights to raise the same in favour of the AMC, unless the discrepancy /error is apparent on the face of it. By opting for the facility the Investors hereby irrevocably authorizes and instructs the AMC to act as his /her agent and to do all such acts as AMC may find necessary to provide the Facility. The Investors shall at all times be bound by any modifications and/or variations made to these Terms and Conditions by the AMC at their sole discretion and without notice to them. The Investor agrees and confirms that the AMC has the right to ask the Investor for an oral or written confirmation of any transaction request using the Facility and/or any additional information regarding the Account of the Investor. The Investor agrees and confirms that the AMC may at its sole discretion suspend the Facility in whole or in part at any time without prior notice. The Investor shall not assign any right or interest or delegate any obligation arising herein. The Investor shall take responsibility for all the transactions conducted by using the Facility and will abide by the record of transactions generated by the AMC. Further, the Investor confirms that such records generated by the AMC shall be conclusive proof and binding for all purposes and may be used as evidence in any proceedings and unconditionally waives all objections in this behalf. The Investor agrees that use of the Facility will be deemed acceptance of the Terms and Conditions and the Investor will unequivocally be bound by these Terms and Conditions. The Investor agrees that all transactions received shall be eligible for applicable NAV subject to necessary formalities to be complied by the AMC in case of transaction through the facility on or before the uniform cut off time. Requests like change in bank mandate, change of nomination, change in mode of holding, change of address or such other requests as the AMC may decide from time to time will not be permitted using the facility. Investors should SMS HELP PURCHASE/REDEMPTION/SWITCH to 9212010033 in order to avail the facility post registration. The procedure for availing the facility will be communicated to the investor. Alternatively, the investor can also get in touch with the Investor Service Centres of the AMC.
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KFin Technologies Pvt. Ltd., Registrar & Transfer Agents to Axis Mutual Fund having its office at Unit: Axis Mutual Fund, Tower B, Plot number 31 & 32, Financial District, Gachibowli, Nanakramguda, Serilingampally Mandal, Hyderabad - 500032 will be the official point of acceptance for such transactions received for Axis Mutual Fund schemes. The investor agrees to indemnify and keep indemnified Axis AMC its Directors, employees, representatives of the AMC, Axis Mutual Fund and Trustees (indemnified parties) from and against all actions, claims, demands, liabilities, obligations, losses, damages, costs and expenses of whatever nature (whether actual or contingent) directly or indirectly suffered or incurred, against the indemnified parties whatsoever arising from or in connection with the Easy Call Facility. The Investor/s shall not hold the AMC liable and shall keep it indemnified for the following: 1) For any transaction using the Facilities carried out in good faith
by the AMC on instructions of the Investor/s. 2) For any loss or damage incurred or suffered by the Investor/s due
to any error, defect, failure or interruption in the provision of the Facility.
3) For any negligence / mistake or misconduct by the Investor/s. 4) For any breach or non-compliance by the Investor/s of the
rules/terms and conditions stated herein. 5) For accepting instructions given by any one of the Investor/s in
case of joint account/s having mode of operations as “anyone or survivor”.
6) For not carrying out any such instructions where the AMC has reason to believe (which decision of the AMC the Investor/s shall not question or dispute) that the instructions given are not genuine or are otherwise improper, unclear, vague or raise a doubt.
7) For carrying out a transaction after such reasonable verification as the AMC may deem fit regarding the identity of the Investor/s
MISCELLANEOUS: 1) The Investor/s agrees and understands that while this Facility is
being introduced without any charges being levied; in case charges are to be levied on a future date he agrees to pay such charges and nonpayment in such an event can lead to termination of these services.
2) Any dispute arising out of or in connection with these Terms and Conditions, will be referred to the arbitration of a sole arbitrator to be appointed by the AMC, in accordance with the Arbitration & Conciliation Act, 1996.
3) These Terms and Conditions are subject to applicable SEBI (Mutual Funds) Regulations, 1996 as amended from time to time and includes Guidelines, Circular press release or Notification that may be issued.
DIVIDEND SWEEP OPTION The terms and conditions of Dividend Sweep Option (DSO) are as follows: 1) DSO is a facility wherein unit holder(s) of eligible scheme(s)
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[hereinafter referred to as "Source Scheme(s)"] of Axis Mutual Fund can opt to automatically invest the dividend (as reduced by the amount of applicable statutory levy) declared by the Source Scheme into other eligible Scheme(s) [hereinafter referred to as "Target Scheme(s)"] of Axis Mutual Fund.
2) The facility is available under all the open ended schemes of Axis Mutual Fund except Exchange Traded Funds (ETFs).
3) DSO facility is available to unit holder(s) only under the Dividend Plan / Option of the Source Scheme. However, the DSO facility will not be available to unit holder(s) under the Daily Dividend Option in the Source Scheme(s). Unit holder’s enrolment under the DSO facility will automatically override any previous instructions for 'Dividend Payout' or 'Dividend Reinvestment' facility in the Source Scheme.
4) The enrolment for DSO facility should be for all units under the respective Dividend Plan / Option of the Source Scheme. Instructions for part Dividend Transfer and part Dividend Payout / Reinvestment will not be accepted. The dividend amount will be invested in the Target Scheme under the same folio. Accordingly, the unit holder(s) details and mode of holding in the Target Scheme will be same as in the Source Scheme.
5) The enrolment to avail of DSO facility has to be specified for each Scheme/Plan/Option separately and not at the folio level.
6) Under DSO, dividend declared (as reduced by the amount of applicable statutory levy and deductions) in the Source scheme (subject to minimum of Rs.1,000/-) will be automatically invested into the Target Scheme, as opted by the unit holder, on the immediate next Business Day after the Record Date at the applicable NAV of the Target Scheme, subject to applicable load as specified under paragraph 9 below and accordingly equivalent units will be allotted in the Target Scheme, subject to the terms and conditions of the respective Target Scheme.
7) The provision for 'Minimum Application Amount' specified in the respective Target Scheme's Scheme Information Document (SID) will not be applicable under DSO. E.g. the minimum application amount for new investors in Axis Bluechip Fund - Growth Plan is Rs. 5,000/-. However in case of DSO, a Unit Holder can avail of the facility irrespective of the amount of dividend (subject to a minimum of Rs. 1,000/-).
8) The Minimum amount of dividend eligible for transfer under Dividend Sweep Option is Rs. 1,000/- (Rupees One Thousand Only). In case the dividend sweep is being less than eligible amount, then the dividend will be re-invested in source scheme/ payout as per the existing option.
9) Load Structure: The dividend amount to be invested under the DSO from the Source Scheme to the Target Scheme shall be invested by subscribing to the units of the Target Scheme at applicable NAV, subject to payment of Entry/Exit Load as under: Entry Load (Target Scheme) Direct Applications & Applications routed through any distributor/agent/broker: Nil Exit Load (Source Scheme): Nil
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Exit Load (Target Scheme): As per the relevant SID The Trustee/AMC reserves the right to change the load structure under the DSO Facility at any time in future on a prospective basis.
10) The Account Statement will be issued by mail or by email (if opted by the unit holder) to the unit holder as per regulations. In case of specific request received from unitholders, the Mutual Fund shall endeavour to provide the account statement to the unitholders after every transaction of Dividend Transfer.
11) Unitholders who wish to enroll for DSO facility are required to fill DSO Enrolment Form available with the ISCs, distributors/agents and also displayed on the website www.axismf.com. The DSO Enrolment Form should be completed in English in Block Letters only. The DSO Enrolment Form complete in all aspects should be submitted at any of the Investor Services centre (ISCs) of Axis Mutual Fund.
12) The request for enrolment for DSO must be submitted at least 10 days prior to the Record Date for the dividend. In case of the condition not being met, the enrolment would be considered valid from the immediately succeeding Record Date of the dividend, provided the difference between the date of receipt of a valid application for enrolment under DSO and the next Record Date for dividend is not less than 10 days.
13) Unitholder(s) are advised to read the SID of Target Scheme(s) carefully before investing. The SID/KIM of the respective Scheme(s) are available with the ISCs of Axis Mutual Fund, brokers / distributors and also displayed on the Axis Mutual Fund website i.e. – www.axismf.com
14) Unit holders will have the right to discontinue the DSO facility at any time by sending a written request to the ISC. Notice of such discontinuance should be received at least 10 days prior to the Dividend Record Date. On receipt of such request, the DSO facility will be terminated. At the time of discontinuation of DSO facility, the Unit holders should indicate their choice of option i.e. dividend reinvestment or dividend payout. In the event the Unitholder does not indicate his choice of dividend option, the dividend, if any, will be reinvested (compulsory payout if dividend reinvestment option is not available) in the Source Scheme. Once the request for DSO is registered, then it shall remain in force unless it is terminated as aforesaid.
15) The Trustee/AMC reserves the right to change/modify the terms and conditions of the DSO.
16) The Trustee reserves the right to change/ modify the terms and conditions of the DSO at a later date on a prospective basis.
TRIGGER FACILITY: Trigger is an event on the happening of which, the Fund will automatically redeem / switch the units, as the case may be, on behalf of the investor, on the date of happening of the event. Accordingly, a trigger will activate a transaction when the event selected for has reached the trigger point. All redemptions/ switches etc. linked to triggers will always be at the applicable NAV based prices of the day on which the event occurs. The investors opting for
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the Trigger facility will also have right to redeem/ switch their holdings before happening of the trigger event. Please note that the trigger is an additional facility provided to the unit holders to save time on completing the redemption/ switch formalities on happening of a particular predetermined event. Trigger is not an assurance on part of AMC / Fund to the investor that he / she will receive a particular amount of money / appreciation and / or a percentage on redemption or will get a particular amount of capital appreciation or will minimise the loss to investor to a particular amount or percentage. 1. Schemes for which the facility is available:
Transferor Scheme(s) Transferee Scheme(s) Axis Liquid Fund Axis Liquid Fund Axis Treasury Advantage Fund
Axis Treasury Advantage Fund
Axis Short Term Fund Axis Short Term Fund Axis Banking & PSU Debt Fund
Axis Banking & PSU Debt Fund
Axis Bluechip Fund Axis Bluechip Fund Axis Midcap Fund Axis Midcap Fund Axis Focused 25 Fund Axis Focused 25 Fund Axis Triple Advantage Fund Axis Triple Advantage Fund Axis Regular Saver Fund Axis Regular Saver Fund Axis Gold Fund Axis Gold Fund Axis Dynamic Bond Fund Axis Dynamic Bond Fund Axis Strategic Bond Fund Axis Strategic Bond Fund Axis Long Term Equity Fund Axis Long Term Equity Fund Axis Children's Gift Fund Axis Children's Gift Fund Axis Smallcap Fund Axis Smallcap Fund Axis Corporate Debt Fund Axis Corporate Debt Fund Axis Dynamic Equity Fund Axis Dynamic Equity Fund Axis Gilt Fund Axis Equity Hybrid Fund Axis Equity Hybrid Fund Axis Multicap Fund Axis Multicap Fund Axis Growth Opportunities Fund
Axis Growth Opportunities Fund
Axis Ultra Short Term Fund Axis Ultra Short Term Fund Axis Overnight Fund Axis Overnight Fund Axis Nifty 100 Index Fund Axis Nifty 100 Index Fund
@ Investors who have completed the lock-in period specified in the Scheme Information Document may apply for trigger facility. 2. Under the Trigger facility, investors will have the following options
on the date of happening of the event: a) Full Redemption / Switch Out b) Redemption / Switch Out to the extent of capital appreciation
only c) Redemption / Switch Out to the extent of Principal amount only The trigger facility is available only for the options specified above and is not available for any adhoc amount that the investor may
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specify. 3. The investors can select any one of the following trigger option(s)
under various plans / options of the scheme: i. Option to redeem / switch out in the event, Nifty Index reaches
or exceeds a specified level, at the end of any business day. Under this option, the investor can specify that if the index (NIFTY) reaches or exceeds a particular level at the close of any business day, then the amount specified by the investor will be either redeemed / switched to the selected transferee scheme. ii. Option to redeem / switch out in the event Nifty Index reaches or
goes below a specified level, at the end of any business day. Under this facility, the investor can specify that if the index (NIFTY) reaches a particular level or goes below that at the close of any business day, then the amount specified shall either be redeemed / switched to the selected transferee scheme. iii. Option to redeem / switch out in the event NAV reaches or
exceeds a specified level. Under this facility, the investor can specify the Net Asset Value (NAV) on reaching / exceeding which the amount specified will be redeemed / switched to the selected transferee scheme. iv. Option to redeem / switch out in the event NAV appreciates by
a specified percentage. Under this facility, the investor can choose a specific percentage, by which, if the scheme NAV appreciates, then the amount specified will be redeemed / switched to the selected transferee scheme. v. Option to redeem / switch out in the event NAV appreciates or
depreciates by a specified percentage. Under this facility, the investor can choose a specific percentage, by which, if the scheme NAV appreciates or depreciates, then the amount specified will be redeemed / switched to the selected transferee scheme. vi. Option to redeem / switch out in the event NAV depreciates by
a specified percentage Under this facility, the investor can choose a specific percentage, by which, if the scheme NAV depreciates, then the amount specified will be redeemed / switched to the selected transferee scheme. Notes: - A. For point no. iii above - The NAV level (in INR terms) specified by
the Unit holder must be in multiples of 5 paisa e.g. INR 10.50, INR.10.55, INR.10.60 etc.
B. For points no. iv, v and vi above - The NAV percentage level specified by the Unit holder must be in multiples of 1 %.
Terms & Conditions: 1. On the trigger date (the day of event occurrence), the
applicable amount will be redeemed /switched from the transferor scheme at the closing NAV of the day i.e. the trigger
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date. 2. Switches can be made only where so permitted by the
respective Scheme Information Document of the Transferor/ Transferee schemes.
3. Once a trigger is activated and a transaction is processed, the same will not be reversed and it will be final and binding upon the Unit holder.
4. Trigger once activated would expire and would not be executed again.
5. Trigger facility shall be applicable subject to payment of exit load in the transferor scheme(s), if any.
6. The specified trigger will fail, if the investor(s) do not maintain sufficient balance in the scheme at the time of registration of trigger and on the trigger date.
7. Trigger will not get executed in case units are pledged or where lien is marked on units, at the time of receipt of request for trigger.
8. Day closing Nifty Index level would be considered in case of triggers linked to Nifty.
9. In case of partial or full switch/redemption, any trigger already registered for a particular transaction will be deactivated.
10. "Minimum Application Amount/ Minimum Additional Investment Amount" specified in the Scheme Information Document of the transferee schemes will not be applicable for Switches based on specified triggers limits being achieved.
11. NAV for switch /redemption: NAV of the trigger day will be considered for the purpose of Redemption/ switch. In case of non-business day in debt schemes but business day in case of equity schemes, switch-out from equity schemes will be processed on the trigger day and switch-in to Debt/ Liquid schemes will be processed on the next business day.
12. In case, if no plan / option is specified for switch transaction under trigger option, default plan / option, as specified in respective Scheme Information Document will be considered.
13. In case of any ambiguity or where the investor fails to specify whether the redemption / switch to be made is full or to the extent of capital appreciation or to the extent of Principal amount only, the transaction will not be processed.
14. All requests for registering or deactivating the trigger facility shall be subject to an advance notice of 10 (Ten) working days. Investors can deactivate the trigger facility by sending a written request to the Investor Service Centers.
APPLICATION VIA ELECTRONIC MODE: Subject to the Investor fulfilling certain terms and conditions stipulated by the AMC as under, Axis AMC , Axis Mutual Fund or any other agent or representative of the AMC, Mutual Fund, the Registrar & Transfer Agents may accept transactions through any electronic mode including fax/web/ electronic transactions as permitted by SEBI or other regulatory authorities: a) The acceptance of the fax/web/electronic transactions will be
solely at the risk of the transmitter of the fax/web/ electronic transactions and the Recipient shall not in any way be liable or responsible for any loss, damage caused to the transmitter
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directly or indirectly, as a result of the transmitter sending or purporting to send such transactions.
b) The recipient will also not be liable in the case where the transaction sent or purported to be sent is not processed on account of the fact that it was not received by the Recipient.
c) The transmitter’s request to the Recipient to act on any fax/web/electronic transmission is for the transmitter’s convenience and the Recipient is not obliged or bound to act on the same.
d) The transmitter acknowledges that fax/web/electronic transactions is not a secure means of giving instructions/ transactions requests and that the transmitter is aware of the risks involved including those arising out of such transmission.
e) The transmitter authorizes the recipient to accept and act on any fax/web/ electronic transmission which the recipient believes in good faith to be given by the transmitter and the recipient shall be entitled to treat any such fax/web/ electronic transaction as if the same was given to the recipient under the transmitter’s original signature.
f) The transmitter agrees that security procedures adopted by the recipient may include signature verification, telephone call backs which may be recorded by tape recording device and the transmitter consents to such recording and agrees to cooperate with the recipient to enable confirmation of such fax/web/ electronic transaction requests.
g) The transmitter accepts that the fax/web/ electronic transactions, where applicable shall not be considered until time stamped as a valid transaction request in the Scheme in line with the Regulations.
In consideration of the recipient from time to time accepting and at its sole discretion acting on any fax/ web/electronic transaction request received / purporting to be received from the transmitter, the transmitter agrees to indemnify and keep indemnified the AMC, Directors, employees, agents, representatives of the AMC, Axis Mutual Fund and Trustee from and against all actions, claims, demands, liabilities, obligations, losses, damages, costs and expenses of whatever nature (whether actual or contingent) directly or indirectly suffered or incurred, sustained by or threatened against the indemnified parties whatsoever arising from or in connection with or any way relating to the indemnified parties in good faith accepting and acting on fax/web/ electronic transaction requests including relying upon such fax/ electronic transaction requests purporting to come from the Transmitter even though it may not come from the Transmitter. The AMC reserves the right to discontinue the facility at any point of time. Distributors offer goal based financial planning (facility) to their clients. In order to encourage Investors to plan for their investments based on life goals (e.g. child’s education, retirement, wealth creation, etc), the Asset Management Company would assist in providing such facilities.
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Since such facilities are aimed at helping Investors achieving their financial goals, certain features offered by Axis Mutual Fund may not be offered/available under such goal based investment folios. Under a folio, no additional purchase, switch and part redemption would be allowed. Requests for changes in goals/goal details will not be accepted. Under normal circumstances, there is no restriction on the right of the investor to transact directly with the mutual fund.
Multiple goals based investments can be applied for under one application form and a single cheque in the name of ‘Axis Mutual Fund First Investor name’ or ‘Axis Mutual Fund Permanent Account Number’ would have to be provided by the Investor. Transaction charge would be charged at application form level.
In case there is a broker code change/the investor is desirous of being a direct investor with the mutual fund, the investment will cease to be a part of the facility. Investors may note that investments under such facilities would be based on advice from the distributor /Financial advisor and the Asset Management Company acts purely in capacity as a facilitator for such transactions. The distributor(s) may choose to modify/change or discontinue the above stated facility. In such a case the investors may continue their investment with the AMC/any other distributor.
For further details/clarifications investors may contact the distributor(s) or the ISCs of the AMC.
Accounts Statements
• On acceptance of the application for subscription, an allotment confirmation specifying the number of units allotted by way of e-mail and/or SMS within 5 business days from the date of receipt of transaction request/allotment will be sent to the Unit Holders registered e-mail address and/or mobile number.
• In case of Unit Holders holding units in the dematerialized mode, the Fund will not send the account statement to the Unit Holders. The statement provided by the Depository Participant will be equivalent to the account statement.
• For those Unit holders who have provided an e-mail address, the AMC will send the account statement by e-mail.
• Unit holders will be required to download and print the documents after receiving e-mail from the Mutual Fund. Should the Unit holder experience any difficulty in accessing the electronically delivered documents, the Unit holder shall promptly advise the Mutual Fund to enable the Mutual Fund to make the delivery through alternate means. It is deemed that the Unit holder is aware of all security risks including possible third party interception of the documents and contents of the documents becoming known to third parties.
• The Unit holder may request for a physical account statement by writing/calling the AMC/ISC/Registrar. In case of specific request received from the Unit Holders, the AMC/Fund will provide the Account Statement to the Investors within 5 business days from the receipt of such request.
• The AMC shall issue Unit certificates within 5 business days from the date of receipt of request where the applicant so desires.
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CONSOLIDATED ACCOUNT STATEMENT (CAS) CAS is an account statement detailing all the transactions and holding at the end of the month including transaction charges paid to the distributor, across all schemes of all mutual funds. CAS issued to investors shall also provide the total purchase value/cost of investment in each scheme. Further, CAS issued for the half-year (September/ March) shall also provide a. The amount of actual commission paid by AMC/Mutual Fund to
distributors (in absolute terms) during the half-year period against the concerned investor’s total investments in each scheme.
b. The scheme’s average Total Expense Ratio (in percentage terms) along with the break up between Investment and Advisory fees, Commission paid to the distributor and Other expenses for the period for each scheme’s applicable plan (regular or direct or both) where the concerned investor has actually invested in.
The word transaction will include purchase, redemption, switch, dividend payout, dividend reinvestment, systematic investment plan, systematic withdrawal plan and systematic transfer plan. a) For Unitholders not holding Demat Account: CAS for each calendar month shall be issued, on or before tenth day of succeeding month by the AMC.
The AMC shall ensure that a CAS for every half yearly (September/ March) is issued, on or before tenth day of succeeding month, detailing holding at the end of the six month, across all schemes of all mutual funds, to all such investors in whose folios no transaction has taken place during that period. The AMC shall identify common investors across fund houses by their Permanent Account Number (PAN) for the purposes of sending CAS. In the event the account has more than one registered holder, the first named Unit Holder shall receive the Account Statement. The AMC will send statement of accounts by e-mail where the Investor has provided the e-mail id. Additionally, the AMC may at its discretion send Account Statements individually to the investors. b) For Unitholders holding Demat Account: SEBI vide its circular no. CIR/MRD/DP/31/2014 dated November 12, 2014, in order to enable a single consolidated view of all the investments of an investor in Mutual Fund and securities held in demat form with Depositories, has required Depositories to generate and dispatch a single CAS for investors having mutual fund investments and holding demat accounts. In view of the aforesaid requirement, for investors who hold demat account, for transactions in the schemes of Axis Mutual Fund on or after February 1, 2015, a CAS, based on PAN of the holders, will be sent by Depositories to investors holding demat account, for each calendar month within 10th day of the succeeding month to the
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investors in whose folios transactions have taken place during that month. CAS will be sent by Depositories every half yearly (September/March), on or before 10th day of succeeding month, detailing holding at the end of the six month, to all such investors in whose folios and demat accounts there have been no transactions during that period. CAS sent by Depositories is a statement containing details relating to all financial transactions made by an investor across all mutual funds viz. purchase, redemption, switch, dividend payout, dividend reinvestment, systematic investment plan, systematic withdrawal plan, systematic transfer plan (including transaction charges paid to the distributor) and transaction in dematerialized securities across demat accounts of the investors and holding at the end of the month. In case of demat accounts with nil balance and no transactions in securities and in mutual fund folios, the depository shall send account statement in terms of regulations applicable to the depositories. Investors whose folio(s)/ demat account(s) are not updated with PAN shall not receive CAS. Consolidation of account statement is done on the basis of PAN. Investors are therefore requested to ensure that their folio(s)/ demat account(s) are updated with PAN. In case of multiple holding, it shall be PAN of the first holder and pattern of holding. For Unit Holders who have provided an e-mail address to the Mutual Fund or in KYC records, the CAS is sent by e-mail. However, where an investor does not wish to receive CAS through email, option is given to the investor to receive the CAS in physical form at the address registered in the Depository system. Investors who do not wish to receive CAS sent by depositories have an option to indicate their negative consent. Such investors may contact the depositories to opt out. Investors who do not hold demat account continue to receive CAS sent by RTA/AMC, based on the PAN, covering transactions across all mutual funds as per the current practice. In case an investor has multiple accounts across two depositories; the depository with whom the account has been opened earlier will be the default depository. The dispatches of CAS by the depositories constitute compliance by the AMC/ the Fund with the requirement under Regulation 36(4) of SEBI (Mutual Funds) Regulations. However, the AMC reserves the right to furnish the account statement in addition to the CAS, if deemed fit in the interest of investor(s). Investors whose folio(s)/demat account(s) are not updated with PAN shall not receive CAS. Investors are therefore requested to ensure
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that their folio(s)/demat account(s) are updated with PAN. For folios not included in the CAS (due to non-availability of PAN), the AMC shall issue monthly account statement to such Unit holder(s), for any financial transaction undertaken during the month on or before 10th of succeeding month by mail or email. For folios not eligible to receive CAS (due to non-availability of PAN), the AMC shall issue an account statement detailing holding across all schemes at the end of every six months (i.e. September/March), on or before 10th day of succeeding month, to all such Unit holders in whose folios no transaction has taken place during that period shall be sent by mail/e-mail. OPTION TO HOLD UNITS IN DEMATERIALISED (DEMAT) FORM Investors shall have an option to receive allotment of Mutual Fund units in their demat account while subscribing to the Scheme in terms of the guidelines/ procedural requirements as laid by the Depositories (NSDL/CDSL) from time to time. Investors desirous of having the Units of the Scheme in dematerialized form should contact the ISCs of the AMC/Registrar. Where units are held by investor in dematerialized form, the demat statement issued by the Depository Participant would be deemed adequate compliance with the requirements in respect of dispatch of statements of account. In case investors desire to convert their existing physical units (represented by statement of account) into dematerialized form or vice versa, the request for conversion of units held in physical form into Demat (electronic) form or vice versa should be submitted alongwith a Demat/Remat Request Form to their Depository Participants. In case the units are desired to be held by investor in dematerialized form, the KYC performed by Depository Participant shall be considered compliance of the applicable SEBI norms. Further, demat option shall also be available for SIP transactions. Units will be allotted based on the applicable NAV as per Scheme Information Document and will be credited to investors Demat Account on weekly basis on realization of funds. Units held in Demat form are freely transferable in accordance with the provisions of SEBI (Depositories and Participants) Regulations, as may be amended from time to time. Transfer can be made only in favour of transferees who are capable of holding units and having a Demat Account. The delivery instructions for transfer of units will have to be lodged with the Depository Participant in requisite form as may be required from time to time and transfer will be affected in accordance with such rules / regulations as may be in force governing transfer of securities in dematerialized mode.
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For details, Investors may contact any of the Investor Service Centres of the AMC.
Dividend The Dividend warrants/cheque/demand draft shall be dispatched to the Unit holders within 30 days of the date of declaration of the Dividend. The Dividend proceeds will be paid by way of EFT/NEFT/RTGS/Direct credits/ any other electronic manner if sufficient banking account details are available with Mutual Fund for Investor. In case of specific request for Dividend by warrants/cheques/demand drafts or unavailability of sufficient details with the Mutual Fund, the Dividend will be paid by warrant/cheques/demand drafts and payments will be made in favour of the Unit holder (registered holder of the Units or, if there are more than one registered holder, only to the first registered holder) with bank account number furnished to the Mutual Fund (please note that it is mandatory for the Unit holders to provide the Bank account details as per the directives of SEBI).
Redemption How to Redeem A Transaction Slip can be used by the Unit Holder to request for Redemption. The requisite details should be entered in the Transaction Slip and submitted at an ISC/Official Point of Acceptance. Transaction Slips can be obtained from any of the ISCs/Official Points of Acceptance. Investor can also place redemption through Telephone using Easy Call/ Easy SMS facility or may redeem Online through the AMC’s website subject to the terms and conditions as maybe stipulated from time to time.
Procedure for payment of redemption. 1. Resident Investors Redemption proceeds will be paid to the investor through Real Time Gross Settlement (RTGS), NEFT, Direct Credit, Cheque or Demand Draft. a) If investor had provided IFSC code in the application form, by
default redemption proceeds shall be credited to Investor’s account through RTGS/NEFT.
b) If Investor has neither provided RTGS code nor the NEFT code but have a bank account with Banks with whom the Fund would have an arrangement for Direct Credit from time to time, the proceeds will be paid through direct credit.
c) Incase if investor bank account does not fall in the above a to b categories, redemption proceeds will be paid by cheques/demand drafts, marked "Account Payee only" and drawn in the name of the sole holder / first-named holder (as determined by the records of the Registrar). The bank name and bank account number, as specified in the Registrar's records, will be mentioned in the cheque/demand draft. The cheque will be payable at par at all bank branch or specific cities. If the Unit Holder resides in any other city, he will be paid by a demand draft payable at the city of his residence and the demand draft charges shall be borne by the AMC (please refer SAI for details).
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The redemption proceeds will be sent by courier or (if the addressee city is not serviced by the courier) by registered post/UCP. The dispatch for the purpose of delivery through the courier / postal department, as the case may be, shall be treated as delivery to the investor. The AMC / Registrar are not responsible for any delayed delivery or non-delivery or any consequences thereof, if the dispatch has been made correctly as stated in this paragraph.
The AMC reserves the right to change the sequence of payment from (a) to (c) without any prior notice
For Unit holders who have given specific request for Cheque/Demand Draft Redemption proceeds will be paid by cheque/demand drafts and payments will be made in favour of the Unit holder with bank account number furnished to the Mutual Fund. (Please note that it is mandatory for the Unit holders to provide the Bank account details as per the directives of SEBI). Redemption cheques will be sent to the Unit holder’s address. The Trustee, at its discretion at a later date, may choose to alter or add other modes of payment. 2. Non-Resident Investors/PIO/OCI For NRIs, Redemption proceeds will be remitted depending upon the source of investment as follows: (i) Repatriation basis When Units have been purchased through remittance in foreign exchange from abroad or by cheque / draft issued from proceeds of the Unit Holder's FCNR deposit or from funds held in the Unit Holder's Non Resident (External) account kept in India the proceeds can also be sent to his Indian address for crediting to his NRE / FCNR / non-resident (Ordinary) account, if desired by the Unit Holder. (ii) Non-Repatriation basis When Units have been purchased from funds held in the Unit Holder's non-resident (Ordinary) account, the proceeds will be sent to the Unit Holder's Indian address for crediting to the Unit Holder's non-resident (Ordinary) account. (iii) FPI For FPIs, the designated branch of the authorized dealer may allow remittance of net sale / maturity proceeds (after payment of taxes) or credit the amount to the Foreign Currency account or Non-resident Rupee account of the FPI maintained in accordance with the approval granted to it by the RBI. The Fund will not be liable for any delays or for any loss on account of any exchange fluctuations, while converting the rupee amount in foreign exchange in the case of transactions with NRIs/ FPIs. The Fund may make other arrangements for effecting payment of redemption proceeds in future.
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Effect of Redemptions The number of Units held by the Unit Holder in his / her / its folio will stand reduced by the number of Units Redeemed. Units once redeemed will be extinguished and will not be re-issued. The normal processing time may not be applicable in situations where requisite details are not provided by investors/Unit holders. The AMC will not be responsible for any loss arising out of fraudulent encashment of cheques and/or any delay/loss in transit. AMC reserves the right to provide the facility of redeeming Units of the Scheme through an alternative mechanism including but not limited to online transactions on the Internet, as may be decided by the AMC from time to time. The alternative mechanism may also include electronic means of communication such as redeeming Units online through the AMC Website or any other website etc. The alternative mechanisms would be applicable to only those investors who opt for the same in writing and/or subject to investor fulfilling such conditions as AMC may specify from time to time. Signature mismatches If the AMC / Registrar finds a signature mismatch, while processing the redemption/ switch out request, then the AMC/ Registrar reserves the right to process the redemption only on the basis of supporting documents confirming the identity of the investors. List of such documents would be notified by AMC from time to time on its website. Important Note: All applicants for Purchase of Units /Redemption of Units must provide a bank name, bank account number, branch address, and account type in the Application Form. Unclaimed Redemptions and Dividends As per circular no. MFD/CIR/9/120/2000, dated November 24, 2000 issued by SEBI, the unclaimed Redemption and dividend amounts shall be deployed by the Fund in money market instruments and such other instruments/securities as maybe permitted from time to time. The investment management fee charged by the AMC for managing such unclaimed amounts shall not exceed 50 basis points. The circular also specifies that investors who claim these amounts during a period of three years from the due date shall be paid at the prevailing NAV. Thus, after a period of three years, this amount can be transferred to a pool account and the investors can claim the said amounts at the NAV prevailing at the end of the third year. In terms of the circular, the onus is on the AMC to make a continuous effort to remind investors through letters to take their unclaimed amounts. The details of such unclaimed amounts shall be disclosed in the annual report sent to the Unit Holders. Further, according to circular no. SEBI/HO/IMD/DF2/CIR/P/2016/37 dated February 25, 2016 the unclaimed Redemption and dividend amounts may be deployed in separate plan of Liquid scheme/Money market mutual fund scheme floated by Mutual Funds specifically for deployment of the unclaimed Redemption and
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dividend amounts. Delay in payment of redemption / repurchase proceeds
The AMC shall be liable to pay interest to the Unit holders at 15% or such other rate as may be prescribed by SEBI from time to time, in case the Redemption / Repurchase proceeds are not made within 10 Business Days of the date of Redemption / Repurchase. However, the AMC will not be liable to pay any interest or compensation or any amount otherwise, in case the AMC / Trustee is required to obtain from the Investor / Unit holders verification of identity or such other details relating to Subscription for Units under any applicable law or as may be requested by a Regulatory Agency or any government authority, which may result in delay in processing the application.
Facility to transact in units of the Schemes through MF Utility portal & MFUI Points of Services pursuant to appointment of MF Utilities India Pvt. Ltd.
AMC has entered into an Agreement with MF Utilities India Pvt. Ltd. (“MFUI”), a “Category II – Registrar to an Issue” under SEBI (Registrars to an Issue and Share Transfer Agents) Regulations, 1993, for usage of MF Utility (“MFU”) - a shared services initiative of various Asset Management Companies, which acts as a transaction aggregation portal for transacting in multiple Schemes of various Mutual Funds with a single form and a single payment instrument. Accordingly, investors are requested to note that in addition to the existing official points of acceptance (“OPA”) for accepting transactions in the units of the schemes of the Axis Mutual Fund as disclosed in the SID, www.mfuonline.com i.e. online transaction portal of MFU and the authorized Points of Service (“POS”) designated by MUFI shall also be the OPA with effect from the dates as may be specified by MFUI on its website/ AMC by issuance of necessary communication. All financial and non-financial transactions pertaining to Schemes of Axis Mutual Fund can be done through MFU either electronically on www.mfuonline.com or physically through the POS of MFUI with effect from the respective dates as published on MFUI website against the respective POS locations. The list of POS of MFUI is published on the website of MFUI at www.mfuindia.com. This will be updated from time to time. The uniform cut-off time as prescribed under SEBI (Mutual Funds) Regulations, 1996, circulars issued by SEBI and as mentioned in the SID / KIM of Scheme shall be applicable for applications received on the portal of MFUI i.e. www.mfuonline.com. However, investors should note that transactions on the MFUI portal shall be subject to the terms & conditions (including those relating to eligibility of investors) as stipulated by MFUI / Axis Mutual Fund / the AMC from time to time and in accordance to the laws applicable. MFUI will allot a Common Account Number (“CAN”), a single reference number for all investments in the Mutual Fund industry, for transacting in multiple Schemes of various Mutual Funds through MFU and to map existing folios, if any. Investors can create a CAN by submitting the CAN Registration Form (CRF) and necessary documents at the MFUI POS. The AMC and / or its Registrar and Transfer Agent (RTA) shall provide necessary details to MFUI as may be needed for providing the required services to investors /
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distributors through MFU. C. PERIODIC DISCLOSURES Net Asset Value This is the value per Unit of the scheme on a particular day. You can ascertain the value of your investments by multiplying the NAV with your Unit balance.
The AMC will calculate and disclose the NAV of the Scheme on all the Business Days. The AMC shall update the NAVs on the website of the AMC (www.axismf.com) and of the Association of Mutual Funds in India - AMFI (www.amfiindia.com) before 11.00 p.m. on every Business Day. If the NAVs are not available before the commencement of Business Hours on the following day due to any reason, the Mutual Fund shall issue a press release giving reasons and explaining when the Mutual Fund would be able to publish the NAV. Information regarding NAV can be obtained by the Unit holders / Investors by calling or visiting the nearest ISC.
Monthly and Half yearly Disclosures: Portfolio / Financial Results This is a list of securities where the corpus of the scheme is currently invested. The market value of these investments is also stated in portfolio disclosures.
The AMC will disclose the portfolio of the Scheme (alongwith ISIN) as on the last day of the month / half year on the website of the Mutual Fund and AMFI within 10 days from the close of each month/ half year (i.e. 31st March and 30th September) respectively in a user-friendly and downloadable spreadsheet format. Further, AMC shall publish an advertisement in an all India edition of one national English daily newspaper and one Hindi newspaper, every half year, disclosing the hosting of the half-yearly statement of its schemes’ portfolio on the website of the Mutual Fund and AMFI and the modes through which unitholder(s) can submit a request for a physical or electronic copy of the statement of scheme portfolio. The AMC will also provide a dashboard, in a comparable, downloadable (spreadsheet) and machine readable format, providing performance and key disclosures like Scheme’s AUM, investment objective, expense ratios, portfolio details, scheme’s past performance etc. on website.
Half Yearly Results
The Mutual Fund shall within one month from the close of each half year, that is on 31st March and on 30th September, host a soft copy of its unaudited financial results on the website of the AMC and AMFI. The mutual fund shall publish an advertisement disclosing the hosting of such financial results on their website, in atleast one English daily newspaper having nationwide circulation and in a newspaper having wide circulation published in the language of the region where the Head Office of the Mutual Fund is situated. The unaudited financial results will also be displayed on the website of the AMC and AMFI.
Annual Report The Scheme wise annual report or an abridged summary thereof shall be mailed (emailed, where e mail id is provided unless otherwise required) to all Unit holders not later than four months (or such other period as may be specified by SEBI from time to time) from the date of closure of the relevant accounting year (i.e. 31st March each year) and full annual report shall be available for inspection at the Head Office of the Mutual Fund and a copy shall be made available to the Unit holders on request on payment of nominal fees, if any. Scheme wise annual report shall also be displayed on the website of the AMC
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(www.axismf.com) and Association of Mutual Funds in India (www.amfiindia.com). Unitholders whose email addresses are not registered with the Mutual Fund may ‘opt-in’ to receive a physical copy of the annual report or an abridged summary thereof. Further, AMC shall provide a physical copy of the abridged summary of the Annual Report, without charging any cost, on a specific request received from a unitholder. AMC shall also publish an advertisement every year, in an all India edition of one national English daily newspaper and in one Hindi newspaper, disclosing the hosting of the scheme wise annual report on the website of the Mutual Fund and AMFI and the modes through which a unitholder can submit a request for a physical or electronic copy of the annual report or abridged summary thereof.
Associate Transactions
Please refer to Statement of Additional Information (SAI).
Taxation Rates applicable for the FY 20-21 The information is provided for general information only. However, in view of the individual nature of the implications, each investor is advised to consult his or her own tax advisors/authorised dealers with respect to the specific amount of tax and other implications arising out of his or her participation in the schemes.
Particulars
Taxability in the hands of Individuals / Non-corporates / Corporates
Resident Non-Resident
Tax on Dividend Taxed in the hands of unitholders at applicable rate under the provisions of the Income-tax Act, 1961 (Act)
Taxed in the hands of unitholders at the rate of 20% u/s 115A of the Act. (plus applicable surcharge and cess)
Long Term Capital Gains: (Held for a period of more than 12 Months)
10% (plus applicable surcharge and cess) without indexation (Refer Note 4)
10% (plus applicable surcharge and cess) without indexation (Refer Note 4)
Short Term Capital Gains (Held for a period of 12 months or less)
15% (plus applicable surcharge and cess)
15% (plus applicable surcharge and cess)
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Notes – 2. Axis Mutual Fund is a Mutual Fund registered with the Securities &
Exchange Board of India and hence the entire income of the Mutual Fund will be exempt from income tax in accordance with the provisions of Section 10(23D) of the Act.
2. Surcharge at the following rate to be levied in case of individual /HUF /
non-corporate non-firm unit holders for equity oriented mutual fund:
Income individual /HUF / non-corporate non-firm unit holders*
Rs 50 lakh to 1 crore (including income under section 111A and 112A of the Act)
10%
Above Rs 1 crore upto Rs 2 crores (including income under section 111A and 112A of the Act)
15%
Above Rs 2 crores upto Rs 5 crores (excluding income under section 111A and 112A of the Act)
25%*
Above Rs 5 crores (excluding income under section 111A and 112A of the Act)
37%*
*For income earned under provisions of section 111A and section 112A of the Act surcharge rate shall be 15% where income exceeds Rs 2 crores.
3. Surcharge rates for Companies/ firm Total Income Rate of Surcharge
for Domestic companies
Rate of Surcharge for Foreign Companies
Above Rs 1 crore upto Rs 10 crores
7% 2%
Above Rs 10 crores 12% 5%
*Surcharge rate shall be 10% in case resident companies opting taxation under section 115BAA and section 115BAB of the Act on any income earned.
In case of firm with total income exceeding Rs 1 crore, surcharge rate shall be 12%.
4. With effect from 1 April 2018, as per section 112A of the Act, long-term
capital gains, exceeding INR 100,000, arising from transfer of equity oriented mutual funds, shall be chargeable at the rate of 10% (plus applicable surcharge and cess).
5. The Scheme will attract securities transaction tax (STT) at 0.001% on the
redemption value.
6. Withholding of Taxation by Mutual Fund will as per applicable withholding tax rate
For further details on taxation please refer to the clause on Taxation in the SAI.
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Stamp Duty Pursuant to Notification No. S.O. 1226(E) and G.S.R. 226(E) dated March 30, 2020 issued by Department of Revenue, Ministry of Finance, Government of India, read with Part I of Chapter IV of Notification dated February 21, 2019 issued by Legislative Department, Ministry of Law and Justice, Government of India on the Finance Act, 2019, stamp duty @0.005% of the transaction value would be levied on applicable mutual fund transactions. Accordingly, pursuant to levy of stamp duty, the number of units allotted on purchase transactions (including dividend reinvestment) to the unitholders would be reduced to that extent.
Investor services Investors can lodge any service request or complaints or enquire about NAVs, Unit Holdings, Dividends, etc by calling the Investor line of the AMC at "1800 221 322 " (toll-free number) and additional contact number 8108622211 from 8.00 am to 8.00 pm (Monday to Friday) and 9.00 am to 6.00 pm (on Saturday and Sunday) or 4325 5100 (at local call rate for enquiring at AMC ISC’s) or email – [email protected]. The service representatives may require personal information of the Investor for verification of his / her identity in order to protect confidentiality of information. The AMC will at all times endeavour to handle transactions efficiently and to resolve any investor grievances promptly. Any complaints should be addressed to Mr. Milind Vengurlekar who has been appointed as the Investor Relations Officer and can be contacted at: Address: Axis Asset Management Company Ltd. Axis House, 1st Floor, C-2, Wadia International Centre, Pandurang Budhkar Marg, Worli, Mumbai – 400 025 Phone no.: 022 43254123 For any grievances with respect to transactions through BSE StAR and / or NSE MFSS, the investors / Unit Holders should approach either the stock broker or the investor grievance cell of the respective stock exchange.
D. COMPUTATION OF NAV The Net Asset Value (NAV) per Unit under the Scheme will be computed by dividing the net assets of the Scheme by the number of Units outstanding on the valuation day. The Mutual Fund will value its investments according to the valuation norms, as specified in Schedule VIII of the SEBI (MF) Regulations, or such norms as may be specified by SEBI from time to time. The Net Assets Value (NAV) of the Units under the Scheme shall be calculated as shown below:
NAV (Rs.) =
Market or Fair Value of Scheme’s Investments
+ Current Assets including Accrued Income
- Current Liabilities and Provisions
No. of Units outstanding under Scheme on the Valuation Day
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The NAV shall be calculated up to two decimal places. However, the AMC reserves the right to declare the NAVs up to additional decimal places as it deems appropriate. Separate NAV will be calculated and disclosed for each Option. The NAVs of the Growth Option and the Dividend Option under each of the Plans will be different after the declaration of the first Dividend. The AMC will calculate and disclose the NAV of the Scheme on all the Business Days.
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IV. FEES AND EXPENSES This section outlines the expenses that will be charged to the Scheme. A. NEW FUND OFFER (NFO) EXPENSES These expenses are incurred for the purpose of various activities related to the NFO like sales and distribution fees paid marketing and advertising, Registrar & Transfer Agent expenses, printing and stationary, bank charges etc.
In accordance with the provisions of SEBI circular no. SEBI/ IMD/CIR No. 1/64057/06 dated April 04, 2006 and SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009, the Scheme, being an open-ended scheme, the NFO expenses has been borne by the AMC/Sponsor. B. ANNUAL SCHEME RECURRING EXPENSES These are the fees and expenses for operating the Scheme. These expenses include Investment Management and Advisory Fee charged by the AMC, Registrar and Transfer Agents’ fee, marketing and selling costs etc. as given in the table below: The AMC has estimated that up to 2.25% of the daily net assets of the Scheme will be charged to the Scheme as expenses. For the actual current expenses being charged, the Investor should refer to the website of the AMC. Expense Head % of daily
Net Assets Investment Management and Advisory fees Upto 2.25% Trustee fees Audit fees Custodian fees RTA fees Marketing & Selling expense incl. agent commission Cost related to investor communications Cost of fund transfer from location to location Cost of providing account statements and dividend redemption cheques and warrants Costs of statutory Advertisements Cost towards investor education & awareness (at least 2 bps) Brokerage & transaction cost over and above 12 bps and 5 bps for cash and derivative market trades resp. Goods & Services Tax (GST) on expenses other than investment and advisory fees GST on brokerage and transaction cost Maximum total expense ratio (TER) permissible under Regulation 52(6)(c) Upto 2.25% Additional expenses under regulation 52 (6A) (c) Upto 0.05% Additional expenses for gross new inflows from specified cities under regulation 52(6A)(b)
Upto 0.30%
All fees and expenses charged in a Direct Plan (in percentage terms) under various heads including the investment and advisory fee shall not exceed the fees and expenses charged under such heads in Regular Plan. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc. and no commission for distribution of Units will be paid/ charged under Direct Plan.
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Fungibility of expenses: The expenses towards Investment Management and Advisory Fees under Regulation 52(2) and the various sub-heads of recurring expenses mentioned under Regulation 52(4) of SEBI (MF) Regulations are fungible in nature. Thus, there shall be no internal sub-limits within the expense ratio for expense heads mentioned under Regulation 52 (2) and (4) respectively. Further, the additional expenses under Regulation 52(6A)(c) may be incurred either towards investment & advisory fees and/or towards other expense heads as stated above. These estimates have been made in good faith as per the information available to and estimates made by the Investment Manager and are subject to change inter-se or in total subject to prevailing Regulations. The recurring expenses of the Scheme (including the Investment Management and Advisory Fees) shall be as per the limits prescribed under the SEBI (MF) Regulations. These are as follows: Assets under management Slab (In Rs. crore) Total expense ratio limits On the first Rs. 500 crores of the daily net assets 2.25% On the next Rs. 250 crores of the daily net assets 2.00% On the next Rs. 1250 crores of the daily net assets 1.75% On the next Rs. 3000 crores of the daily net assets 1.60% On the next Rs. 5000 crores of the daily net assets 1.50% On the next Rs. 40,000 crores of the daily net assets
Total expense ratio reduction of 0.05% for every increase of Rs. 5,000 crores of daily net assets or part thereof.
On the balance of the assets 1.05% The total expenses of the Scheme including the investment management and advisory fee shall not exceed the limit stated in Regulation 52(6) of the SEBI (MF) Regulations and amendments thereto. Expenses charged to the Scheme: A. In addition to the limits as specified in Regulation 52(6) of SEBI (MF) Regulations or the
Total Recurring Expenses (Total Expense Limit) as specified above, the following costs or expenses may be charged to the Scheme namely- Additional expenses for gross new inflows from specified cities (a) expenses not exceeding of 0.30 per cent of daily net assets, if the new inflows from
such cities as specified by SEBI/AMFI from time to time are at least - (i) 30 per cent of gross new inflows in the Scheme, or; (ii) 15 per cent of the average assets under management (year to date) of the
Scheme, whichever is higher:
Provided that if inflows from such cities is less than the higher of sub-clause (i) or sub-clause (ii), such expenses on daily net assets of the Scheme shall be charged on proportionate basis. Provided further that, expenses charged under this clause shall be utilised for distribution expenses incurred for bringing inflows from such cities. Provided further that, amount incurred as expense on account of inflows from such cities shall be credited back to the Scheme, in case the said inflows are redeemed within a period of 1 year from the date of investment.
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Provided further that, additional TER can be charged based on inflows only from retail investors from B30 cities in terms of SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2018/137 dated October 22, 2018 read with SEBI/HO/IMD/DF2/CIR/P/2019/42 dated March 25, 2019. For this purpose inflows of amount upto Rs 2,00,000/- per transaction, by individual investors shall be considered as inflows from “retail investor”
Additional expenses under Regulation 52(6A)(c)
(b) additional expenses, incurred towards different heads mentioned under Regulations 52(2) and 52(4), not exceeding 0.05 per cent of daily net assets of the Scheme;
(c) GST payable on investment and advisory service fees (‘AMC fees’) charged by Axis
Asset Management Company Ltd.;
Further, brokerage and transaction costs which are incurred for the purpose of execution of trade and is included in the cost of investment shall not exceed 0.12 per cent in case of cash market transactions and 0.05 per cent in case of derivatives transactions.
B. Within the Total Expense Limit chargeable to the Scheme, following will be charged to the Scheme: (a) GST on other than investment and advisory fees, if any, (including on brokerage and
transaction costs on execution of trades) shall be borne by the Scheme (b) Investor education and awareness initiative fees of at least 2 basis points on daily net
assets of the Scheme. C. AMC fees charged by Axis AMC to the Scheme will be within the Total Expense Limit as
prescribed by SEBI Regulations, as amended from time to time. Expenses over and above the prescribed limit shall be charged / borne in accordance with the Regulations prevailing from time to time. The mutual fund would update the current expense ratios on its website (www.axismf.com) atleast three working days prior to the effective date of the change. Investors can refer ‘Total Expense Ratio of Mutual Fund Schemes’ section on https://www.axismf.com/total-expense-ratio for Total Expense Ratio (TER) details. Illustration of impact of expense ratio on scheme’s returns. For any scheme, NAV is computed on a daily basis factoring in all the assets as well as liabilities of the Scheme (including expenses charged). Expenses charged to the Scheme bring down its NAV and hence the investor's net returns on a corresponding basis. Illustration:
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Particulars Amount (in Rs.) No of units NAV per unit
(in Rs.) Invested on March 31, 2016 (A) 10,000 1,000 10.00 Value of above investment as on March 31, 2017 (gross of all expenses) (B) 11,500 1,000 11.50
Total Expenses charged during the year @2% p.a. (assumed) ( C ) 200 0.20
Value of above investment as on March 31, 2017 (net of all expenses) (D) = (B-C) 11,300 1,000 11.30
Returns (%) (gross of all applicable expenses) (E) = ((B/A)-1) 15.0%
Returns (%) (net of all applicable expenses) (F) = ((D/A)-1) 13.0%
Please Note: • The purpose of the above illustration is purely to explain the impact of expense ratio
charged to the Scheme and should not be construed as providing any kind of investment advice or guarantee of returns on investments.
• It is assumed that the expenses charged are evenly distributed throughout the year. The expenses of the Direct Plan under the Scheme may vary with that of the Regular Plan under the Scheme.
• Calculations are based on assumed NAVs, and actual returns on your investment may be more, or less.
• Any tax impact has not been considered in the above example, in view of the individual nature of the tax implications. Each investor is advised to consult his or her own financial advisor.
C. LOAD STRUCTURE Load is an amount which is paid by the Investor to redeem the Units from the Scheme. This amount is used by the AMC to pay commission to the distributors and to take care of other marketing and selling expenses. Load amounts are variable and are subject to change from time to time. For the current applicable structure, investors may refer to the website of the AMC (www.axismf.com) or may call at 1800 221 322 (toll-free number) and additional contact number 8108622211 from 8.00 am to 8.00 pm (Monday to Friday) and 9.00 am to 6.00 pm (on Saturday and Sunday) or can contact his distributor. SEBI vide its circular no. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009 has decided that there shall be no entry Load for all Mutual Fund Schemes. Type of Load Load chargeable (as %age of NAV) Entry Load Not Applicable Exit Load If redeemed / switched-out within 12 months from the date of allotment,
- For 10% of investments: NIL - For remaining investments: 1% If redeemed / switched – out after 12 months from the date of allotment: NIL
No exit load will be charged for switch between Regular Plan and Direct Plan where transaction is not routed through Distributor in Regular Plan. If the transaction in Regular Plan is routed through Distributor, then applicable exit load will be charged for switch from Regular Plan to Direct Plan. The load structure will be equally applicable to all special
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products offered under the Scheme such as SIP, STP, etc. In case of switches between the Growth and Dividend Option in the same plan, no load is being charged by the schemes. Also, units allotted on reinvestment of dividends shall not be subject to load. However, for switches between equity schemes, load will be charged by the AMC. The entire exit load (net of GST), charged, if any, shall be credited to the Scheme. The Investor is requested to check the prevailing Load structure of the Scheme before investing. For any change in Load structure AMC will issue an addendum and display it on the website/Investor Service Centres. Under the Scheme, the AMC/Trustee reserves the right to change / modify the Load structure if it so deems fit in the interest of smooth and efficient functioning of the Mutual Fund. The AMC/Trustee reserves the right to introduce / modify the Load depending upon the circumstances prevailing at that time subject to maximum limits as prescribed under the Regulations. The Redemption Price however, will not be lower than 93% of the NAV. Any imposition or enhancement of Load in future shall be applicable on prospective investments only. The difference between the Redemption price and Sale price at any point in time shall not exceed the permitted limit as prescribed by SEBI from time to time which is presently 7% calculated on the Sale Price. At the time of changing the Load Structure: 1. An Addendum detailing the changes will be attached to Scheme Information
Document and Key Information Memorandum. The addendum may be circulated to all the distributors / brokers so that the same can be attached to all Scheme Information Document and Key Information Memorandum already in stock.
2. The addendum will be displayed on the website of the AMC and arrangements will be made to display the addendum in the form of a notice in all the Investor Service Centres and distributors / brokers’ office.
3. The introduction of the Exit Load along with the details may be stamped in the acknowledgement slip issued to the Investors on submission of the application form and may also be disclosed in the statement of accounts issued after the introduction of such Load.
4. A public notice shall be given in respect of such changes in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of region where the Head Office of the Mutual Fund is situated.
5. Any other measure which the Mutual Fund may consider necessary. The Trustee/AMC reserves the right to change the load structure subject to the limits prescribed under the Regulations. Any change in load structure shall be only on a prospective basis i.e. any such changes would be chargeable only for Redemptions from prospective purchases (applying first in first out basis). Transaction Charges In terms of SEBI circular no. CIR/IMD/DF/13/2011 dated August 22, 2011, as amended from time to time, transaction charge per subscription of Rs. 10,000/– and above shall be charged from the investors and shall be payable to the distributors/ brokers (who have opted in for charging the transaction charge) in respect of applications routed through distributor/ broker relating to purchases / subscription / new inflows only (lump sum and SIP), subject to the following:
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• For Existing / New investors: Rs.100 / Rs.150 as applicable per subscription of Rs. 10,000/– and above
• Transaction charge for SIP shall be applicable only if the total commitment through SIP amounts to Rs. 10,000/– and above. In such cases the transaction charge would be recovered in maximum 4 successful installments.
• There shall be no transaction charge on subscription below Rs. 10,000/-. • There shall be no transaction charges on direct investments. • There shall be no transaction charges for transaction other than purchases / subscriptions
relating to new inflows such as Switches, etc. • Transactions carried out through the Stock Exchange platforms for mutual funds shall not
be subject to transaction charges. The requirement of minimum application amount shall not be applicable if the investment amount falls below the minimum amount required due to deduction of transaction charges from the subscription amount. The Transaction Charge as mentioned above shall be deducted by the AMC from the subscription amount of the Unit Holder and paid to the distributor and the balance shall be invested in the Scheme. The statement of account shall clearly state that the net investment as gross subscription less transaction charge and give the number of units allotted against the net investment. D. WAIVER OF LOAD FOR DIRECT APPLICATIONS Not applicable
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VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY This section shall contain the details of penalties, pending litigation, and action taken by SEBI and other regulatory and Govt. Agencies.
1. All disclosures regarding penalties and action(s) taken against foreign Sponsor(s) may be limited to the jurisdiction of the country where the principal activities (in terms of income / revenue) of the Sponsor(s) are carried out or where the headquarters of the Sponsor(s) is situated. Further, only top 10 monetary penalties during the last three years shall be disclosed. Not Applicable
2. In case of Indian Sponsor(s), details of all monetary penalties imposed and/ or action
taken during the last three years or pending with any financial regulatory body or governmental authority, against Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company; for irregularities or for violations in the financial services sector, or for defaults with respect to shareholders or debenture holders and depositors, or for economic offences, or for violation of securities law. Details of settlement, if any, arrived at with the aforesaid authorities during the last three years shall also be disclosed. a. A show-cause notice was issued to Axis Bank by RBI dated November 16, 2017
following a statutory inspection which revealed violations of various regulations of the RBI in relation to assessment of NPAs. After considering the response and oral submissions of Axis Bank, the RBI found that the charges of non-compliance were substantiated and imposed a monetary penalty of INR 3,00,00,000 (Rupees Three Crores Only) on March 5, 2018.
b. The RBI had issued Show Cause Notice vide its letter dated 27.7.2018 with respect to dispensation of two Children Bank Play Notes of Rs.500 each dispensed to two customers from ATM at Kidwai nagar branch, Kanpur in non-compliance to its Master Circular on Detection and Impounding of Counterfeit Notes dated July 20, 2017 and, the Circular on Sorting of Notes – Installation of Note Sorting Machines dated November 19, 2009 and the Bank submitted the response on 16.8.2018. The RBI vide its letter dated 30.1.2019 imposed a penalty of Rs.20 lakhs and the Bank paid the same on 5.2.2019.
c. The RBI had issued Show Cause Notice vide its letter dated 29.8.2018 for wrongfully collecting 105 DDs, each for the amount exceeding Rs.50,000, aggregating Rs.5.56 crores in the account of Satkar Co-operative Credit Society Ltd. in non-compliance to its Master Circular on ‘Collection of Account Payee Cheques - Prohibition on Crediting Proceeds to Third Party Account’ dated January 22, 2014 and for the delay in reporting of above fraud in non-compliance to Master Directions on ‘Frauds - Classification and Reporting by commercial banks and select FIs’ dated July 1, 2016. The Bank submitted the response on 17.9.2018. The RBI vide its letter dated 30.1.2019 imposed a penalty of Rs.2 Crore and the Bank has paid the same on 16.2.2019.
d. The RBI had issued Show cause notice vide its letter dated 23.8.2018 with respect to non-compliance to guidelines issued dated 20.2.2018 on ‘Time-bound implementation & Strengthening of SWIFT related operational controls and the Bank submitted the response on 5.9.2018. The RBI vide its letter dated 25.2.2019 cautioned the Bank stating that any deficiency in this regard will attract penal action in future.
3. Details of all enforcement actions taken by SEBI in the last three years and/ or pending
with SEBI for the violation of SEBI Act, 1992 and Rules and Regulations framed there under including debarment and/ or suspension and/ or cancellation and/ or imposition of monetary penalty/adjudication/enquiry proceedings, if any, to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the
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directors and/ or key personnel (especially the fund managers) of the AMC and Trustee Company were/ are a party. The details of the violation shall also be disclosed. Nil
4. Any pending material civil or criminal litigation incidental to the business of the Mutual
Fund to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors and/ or key personnel are a party should also be disclosed separately. Nil
5. Any deficiency in the systems and operations of the Sponsor(s) and/ or the AMC and/ or
the Board of Trustees/Trustee Company which SEBI has specifically advised to be disclosed in the SID, or which has been notified by any other regulatory agency, shall be disclosed. Nil
The Scheme under this Scheme Information Document was approved by the Trustee Company by passing a circular resolution on September 05, 2009. The Trustee has ensured that the Scheme is a new product offered by Axis Mutual Fund and is not a minor modification of its existing schemes.
Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable. for and on behalf of Axis Asset Management Company Sd/- Chandresh Kumar Nigam Managing Director & Chief Executive Officer Date: August 14, 2020
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OFFICIAL POINTS OF ACCEPTANCE FOR ONGOING TRANSACTION AHMEDABAD Axis Asset Management Company Limited ,Mithakali Law Garden Road, Ellisbridge, 3rd Floor, 302, Megha House, Opp. Kotak Bank,Ahmedabad - 380 006.. AGRA: Axis Asset Management Company Limited ,Shop No. G-7, Ground Floor, Block-19/4, Sanjay Place, Agra - 282 002. BANGALORE Axis Asset Management Co.Ltd. Ground Floor, G-03 & G-03A, Prestige Meridian-1, No. 29, M.G. Road, Bangalore - 560 001 BHOPAL Axis Asset Management Co FM-8 Mansarovar Complex , Khasra No. 27/1/2 , NH-12 , Bhopal , MP. BHUBANESHWAR Axis Asset Management Co Unit no.3 (Part) Ground Floor Nandighosh Arena Plot no. 1 Bapuji Nagar Bhubaneshwar Odisha. BORIVALI Axis Asset Management Co. Ltd, Office No. 201, 2 Floor, REIS Magos, Ramdas Sutrale Marg, Off. Chandavarkar Road, Borivali (West), Mumbai, Maharashtra - 400092. CHANDIGARH Axis Asset Management Co.Ltd. 2nd Floor, SCO No 2471, Sector 22C, Chandigarh - 160022. CHENNAI Axis Asset Management Co. Ltd. 1st Floor , Door no. 168 Anna Salai , Opp. To Spencer Plaza , Chennai , Tamil Nadu - 600 002., COIMBATORE Axis Asset Management Company Limited, 1st Floor, Shylaja Complex, 575 DB Road, R. S. Puram, Near Head Post Office, Coimbatore - 641 002. DEHRADUN Axis Asset Management Co. Ltd., 59/3 First Floor, Rajpur Road, Above IDBI Bank, Dehradun – 248001. FORT Axis Asset Management Company Limited , 112, 1st Floor, Yusuf Building, Plot No. 49, Veer Nariman Road, Hutatma Chowk, Fort, Mumbai - 400 001. GUWAHATI Axis Asset Management Co. ltd 2C 2nd Floor, “Dihang Arcade”, ABC, G.S. Road Opp Dona Planet Guwahati 781005. HYDERABAD Axis Asset Management Company Ltd, 2nd Floor, Nerella House, Panjagutta, Hyderabad - 500 082. INDORE Axis Asset Management Co. ltd office No. 211 2nd Floor Megapolis Square Block A 579, M.G Road .opp Treasure Island Mall Indore 452001 M.P JAIPUR Axis Asset Management Company Ltd, 305, 3 Floor, Green House, Near Ahinsa Circle, Ashok Marg, C Scheme, Jaipur - 302001.Rajasthan. JALANDHAR Axis Asset Management Co. Ltd , SCO 5-6, 1st Floor, Puda Complex, Opp Suvidha Center, Ladowali Road, Jalandhar - 144 001 KANPUR Axis Asset Management August Company Limited, 305-306, 3rd Floor, Civil Lines, Kan Chamber, Kanpur – 208001. KOCHI Axis Asset Management Company Limited,Door No.40/9336 ,2nd Floor ,Chackos Towers ,Padma Pullepady Road ,Kochi 682 035 Kerala. KOLKATA Axis Asset Management Company Ltd, Ground Floor, Kanak Building,41, Chowringhee Road Kolkata - 700071. LUCKNOW Axis Asset Management Co. Ltd, Unit No 5, 6 & 7, Halwasiya's Commerce House, 2nd Floor, Habibullah Estate, 11, M.G.Marg, Hazratganj, Lucknow - 226001. LUDHIANA Axis Asset Management Co. Ltd. SCO - 28, First Floor, Feroz Gandhi Market, Ludhiana - 141001. MUMBAI Axis Asset Management Company Limited Axis House, First Floor, C-2, Wadia International Centre, Pandurang Budhkar Marg, Worli, Mumbai - 400025. MUMBAI (Indiabulls) Axis Asset Management Company Ltd. Unit No. 902, 9th Floor, Indiabulls Finance Center, Tower 2, Senapati Bapat Marg, Mumbai - 400013. NAGPUR Axis Asset Management Company Ltd. 1st Floor, "The Edge", 12, Shankar Nagar, WHC Road, Nagpur-440010 NASIK Axis Asset Management Company Limited Shop No. G-7,GroundFloor, Rajvee Enclave, Old Pandit Colony, Nasik - 422 001, Maharashtra. NEW DELHI Axis Asset Management Company Ltd. 702-705, 7th Floor, Narain Manzil, Barakhamba Road, Connaught Place, New Delhi - 110001. PANAJI Axis Asset Management Company Limited Ground Floor, Shop No. G-7, Edcon Towers, Menezes Braganza Road, Panjim, Goa - 403001. PUNE Axis Asset Management Company Ltd. Unit No. 102 & 102-A/B, 1st Floor, Signature Building, Bhandarkar Road, CTS No. 853, Plot No. 195, Bhamburda, Shivajinagar, Pune - 411005.PATNA Axis Asset Management Company Ltd. D - 309/ 310, 3 Floor, Dumroan Palace, Frazer Road, Patna 800 001. RAIPUR Axis Asset Management Company Ltd ,Office No. T -10, 3rd Floor, Raheja Towers, Fafadih , Chowk Jail Road, Raipur, Chhattisgarh - 492001. RAJKOT Axis Asset Management Co. ltd 206, Metro Plaza Jansata Chowk Near Eagle Travels Moti Tanki Chowk , Rajkot - 360001. SURAT Axis Asset Management Company Limited,HG-2A, International Trade Centre(ITC), Majura Gate Crossing, Ring Road ,Surat Gujarat, India. Thane Axis Asset Management Company Ltd, Manjula Arcade, 2nd Floor, Gokhale Road, Naupada, Thane (West) - 400 602. Vadodara Axis Asset Management Company Limited 3rd Floor, 306, Emerald Complex, Race Course, Near Bird Circle, Old Padra Road, Vadodara -
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390 007.Amritsar Axis Asset Management Co. Ltd SCO-25, First floor, District shopping Centre, B-Block, Ranjit Avenue, Amritsar – 143001. Varanasi Axis Asset Management Company Ltd. 7th Floor, Arihant Complex, D-64/127 C-H, Sigra, Varanasi, Uttar Pradesh - 221010. Visakhapatnam Axis Asset Management Company Limited, S3, 3rd Floor, Navaratna Jewel Square, Beside Jyothi, Book Depot, Dwarakanagar, Visakhapatnam - 530 016. KFIN TECHNOLOGIES PRIVATE LIMITED INVESTOR SERVICE CENTERS Adyar KFintech Private Ltd,New No 51, Gandhi Nagar,First Main Road, Adyar Chennai-600 020 Agartala, Jagannath Bari Road Bidur Karta Chowmuhani Agartala – 799001 • Agra House No. 17/2/4, 2nd Floor, Deepak Wasan Plaza, Behind Hotel Holiday INN, Sanjay Place, in the city of Agra – 282 002, Uttar Pradesh • Ahmedabad, Office No. 401, on 4 Floor, ABC-I, Off. C.G. Road, Ahmedabad-380009. Ajmer, 1-2, II Floor Ajmer Tower, Kutchary Road Ajmer - 305 001. Akola Shop No-30, Ground Floor, Yamuna Tarang Complex, N H No 06, Murtizapur Road, Akola 444004 • Alambagh KSM Tower,CP-1 Sinder Dump, Near Alambagh Bus Station, Alambagh, Lucknow 226 005• Aligarh Sebti Complex Centre Point, in the city of Aligarh – 202 001, Uttar Pradesh • Allahabad Meena Bazar" 2nd Floor, 10, S. P. Marg, Civil Lines, Subhash Chauraha, in the city of Allahabad – 211 001,Uttar Pradesh• Alleppy 3rd Floor, J.P.Tower, 17/1424(184), VCSB Road, Zilla Court Bridge Road, Mullackal, Alleppey – 688011, Kerala • Alwar Office Number 137, First Floor, Jai Complex Road No – 2, Alwar - 301001, Rajasthan,,,Alwar,301001,Rajasthan • Aliganj Hig-67, Sector E, Aliganj, Lucknow 226 024 • Amaravathi Shop No. 21, 2nd Floor, Gulshan Tower Near Panchsheel Talkies ,Jaistambh Square, Amravati(M.H.) Pincode 444601 Ambala 6349, 2nd Floor, Nicholson Road, Adjacent Kos Hospital Ambala Cant,Ambala,133001,Haryana. Amritsar 72-A, Taylor'S Road Aga Heritage Gandhi Ground Amritsar - 143 001 Anand 201 Sai Apartment , Behind New Bus Stand Anand Pin code 388001 • Andheri 6 & 7, Andheri Industrial Estate, Veera Desai Road, Andheri (West), Mumbai 400 053 • Ananthapur Plot No: 12-313, Balaji Towers, Suryanagar, Ananthapur Village, Pincode - 515001, Ananthapur Dist, Andhra Pradesh • Ankleshwar L/2, Keval Shopping Center Old National Highway Ankleshwar 393002 • Asansol 112/N, G. T. Road, Bhanga Panchil, Asansol 713 303, Paschim Bardhaman, West Bengal. • Aurangabad Shop no B 38, Motiwala Trade Centre,Nirala Bazar ,Aurangabad 431001,Maharastra•Azamgarh House No. 290, Ground Floor, Civil lines, Near Sahara Office, in the city of Azamgarh – 276 001, Uttar Pradesh • Balasore 1-B. 1st Floor, Kalinga Hotel Lane, Baleshwar, Baleshwar Sadar, PIN: 756001, ORISSA, Balasore • Bangalore Old No : 35 , New No - 59, 1 Floor Kamala Nivas, Puttanna Road, Basavanagudi, Bangalore 560004 • Bankura KFintech Pvt Ltd. Plot nos- 80/1/A, NATUNCHATI MAHALLA, 3rd floor, Ward no-24, Opposite P.C Chandra, Bankura town, Bankura 722101 • Bareilly 54-CIVIL LINES, Ayub Khan Chauraha,,Bareilly,243001,Uttar Pradesh • Barhampore (WB) Thakur Market Complex, 72, Naya Sarak Road,Gorabazar, PO. Berhampore DIST. Murshidabad Barhampore -742101 • Baroda 203 Corner Point , Jetalpur Road, Baroda Gujarat 390 007 • Begusarai KFin Technologies Private Limited, C/o Dr Hazari Prasad Sahu, Ward No 13, Behind Alka Cinema, Begusarai (Bihar), Pin Code - 851117 • Belgaum CTS No 3939/ A2 A1, Above Raymonds Show Room Club Road, Belgaum – 590001.• Bellary No 1 KHB Colony, Gandhinagar, Bellary 583101 • Behrampur Opp –Divya Nandan Kalyan Mandap 3rd Labe Dharam Nagar Near Lohiya Motor, Berhampur, Orissa 760001• Betul107, Hotel Utkarsh, Awasthi Complex, J H College Road, Civil Lines, Beetul 460001 • Bhagalpur 2nd Floor, Chandralok Complex, Near Ghanta Ghar, in the city of Bhagalpur, Bihar,812001 • Bharuch 123 Nexus business Hub ,Near Gangotri Hotel ,B/s Rajeshwari Petroleum ,Makampur Road ,Bharuch -392001 • Bhatinda second floor, MCB -2-3-01043 GONIANA ROAD OPP: NIPPON INDIA MF GT RODE, NEAR HANUMAN CHOWK BHATINDA 161001 • Bhavnagar KFintech Private Ltd ,303, Sterling Point, Waghawadi Road, Bhavnagar – 364001 • Bhilai Office No. 2, 1 Floor; Plot No. 9/6, Nehru Nagar [East], Bhilai, Durg, Pin - 490 020; Chhattisgarh. • Bhilwara 27-28, 1st Floor, HiraPanna Complex, Pur Road, Bhilwara 311001 • Bhopal Gurukripa Plaza, Plot No. 48A, Opposite City Hospital, zone-2, M P nagar, Bhopal,Madhya Pradesh - 462011 • Bhubaneswar A/181, SAHEED NAGAR; JANARDAN
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HOUSE; ROOM #: 07; 3RD FLOOR; DT: BHUBANESWAR; PIN-751007; ORISSA, Odisha • Bikaner 2nd Floor, Plot No 70 & 71, Panchshati Circle, SardulGunj Scheme, Bikaner 334003 • Bilaspur ANANDAM PLAZA; Shop.No.306; 3rd Floor; Vyapar Vihar Main Road; Bilaspur, PIN: 495001; Chattisgarh • Bokaro CITY CENTRE, PLOT NO. HE-07; SECTOR-IV; BOKARO STEEL CITY; PIN: 827004; JHARKHAND. • Borivali Ground Floor Himanshu Bldg. Sodawala Lane, Lina Chandawarkar Road, Borivali, Mumbai - 400 091. • Burdwan KFintech Private Ltd., Anima Bhavan, 1 Floor, Holding No. 42, Sreepally, G. T. Road, Burdwan, West Bengal - 713103. • Calicut Second Floor, Manimuriyil Centre, Bank Road, Kasaba Village, Calicut, Pincode – 673001 • Chandigarh First floor, SCO 2469-70, Sec. 22-C, Chandigarh, Pincode- 160022 • Chandrapur Shop No 5, Office No 2, 1st Floor, Routs Raghuvanshi Complex, Beside Azad Garden, Main Road, Chandrapur 442402 • Chembur Shop No. 4, Ground Floor, Shram Saflya Bldg, N G Acharya Marg, Chembur, Mumbai 400 071 • Chennai (Egmore) Flat No F11,First Floor, Akshya Plaza,(Erstwhile Harris Road), Opp Chief City Metropolitan Court, # 108, AdhithanarSalai, Egmore, Chennai 600002 • Chennai (T Nagar) G1, Ground Floor No 22, Vijayaraghava Road, Swathi Court, T Nagar, Chennai - 600 017.• Chinsura 96, DOCTORS LANE; PO: CHINSURAH; DT: HOOGHLY; PIN: 712 101; WEST BENGAL • Cochin Building Nos.39 Ali Arcade ,1st floor, Near Atlantis Junction, Kizhvana Road, Panampili Nagar, Cochin-682 036 Ernakulum District Coimbatore 3rd Floor 1056/1057, Jaya Enclave, Avanashi Road, Coimbatore - 641018. • Cuttack SHOP NO-45,2ND FLOOR, NETAJI SUBAS BOSE ARCADE, (BIG BAZAR BUILDING), ADJACENT TO RELIANCE TRENDS,DARGHA BAZAR, CUTTACK • Darbhanga Jaya Complex 2nd Floor, above furniture planet, Donar chowk Darbanga-846 003 • Dalhousie 2Nd Floor, Room no-226 R N Mukherjee Road, Kolkata 700 001 • Davangere D.No 162/6 , 1st Floor, 3rd Main, P J Extension, Davangere taluk, Davangere Mandal,Davangere,577002,Karnataka •Dehradun Kaulagarh Road, Near Sirmaur Marg, Above Reliance Webworld, Dehradun 248001 • Deoria K. K. Plaza, Above Apurwa Sweets, Civil Lines Road, in the city of Deoria – 274 001, Uttar Pradesh • Dewas 27 Rmo House, Station Road, Dewas 455001• Dhanbad 208, New Market, 2nd Floor,Katras Road, Bank More, Dhanbad 826001 • Dharwad G7 & 8, Sri Banashankari Avenue Ramnagar, OppNttfpb Road Dharward 580001 • Dhule Ground Floor Ideal Laundry, Lane No 4 , Khol Galli, Near Muthoot Finance , Opp Bhavasar General Store, Dhule – 424001• Dindigul KFin Technologies Private Limited, NO 59B New Pensioner street ,Opp Gomathi Lodge, Palani Road, Dindigul, Pincode--624001 Dindigul District, Tamil NaduTirupur • Durgapur MWAV – 16 Bengal Ambuja 2nd Floor, City Centre Durgapur 713216 • Eluru- House no 22B-12-1/1, Ground Floor, Gade vari street, power peta, Eluru 2 ,Eluru-West Godavari-AP-534002 • Erode Address No 38/1,Sathy Road,(VCTV Main Road),Sorna Krishna Complex,Ground Floor,Erode -638003, Tamilnadu • Faridabad A-2B 2nd Floor, Neelam Bata Road Peerki Mazar , Nehru Ground nit, Faridabad-121001 • Ferozpur2nd Floor, Malwal Road, Opp H M School, Ferozpur City 152002• Gandhidham Office No. 203, Second Floor Bhagwati Chamber, Plot No. 8 Sector - 1/A, Kutch Kala Road, Gandhidham - 370 201 • Gandhinagar Plot No. - 945/2, Sector - 7/C, Gandhinagar - 382 007 • Gaya Hotel Skylark, Swaraipuri Road, Gaya- 823001, Bihar • Ghaziabad FF - 31, Konark Building, Rajnagar, Pin code: 201003,Ghaziabad, Uttar Pradesh • Ghazipur House No. 148/19, Mahua Bagh, in the city of Ghazipur – 233 001, Uttar Pradesh • Gonda House No. 782, Shiv Sadan, ITI Road, Near Raghukul Vidya Peeth, Civil Lines, Gonda - 271 001, Uttar Pradesh. • Gorakhpur Above V I P House Ajdacent A D Girls Inter College, Bank Road, Gorakpur 273001 • Gomti Nagar B-1/2, Vijay Khand, Near Union Bank of India, Gomti Nagar, Lucknow 226 010 • Gulbarga KFin Technologies Private Limited, H NO 2-231, KRISHNA COMPLEX 2ND FLOOR Opp. Municipal corporation Office, Jagat, Station Main Road, KALABURAGI, Pincode -585 105• Guntur KFin Technologies Private Limited, 2nd Shatter, 1st Floor. Hno. 6-14-48, 14/2 Lane, Arundal Pet, Guntur, Andhra Pradesh, Pin code-522002 • Gurgaon 2nd Floor, Vipul Agora, M. G. Road, in the city of Gurgaon, 122001,Haryana • Guwahati 54 Sagarika Bhawan R G Baruah Road, (AIDC Bus Stop) Guwahati 781024 • Gwalior City Centre, Near Axis Bank, in the city of Gwalior Madhya Pradesh - Gwalior-474011 • Haldwani Shop No. 5, KMVN Shopping Complex, Haldwani – 263139, Uttarakhand • Haridwar Shop No. - 17, Bhatia Complex, Near Jamuna Palace, Pin code - 249410 Haridwar,
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Uttarakhand. • Hassan SAS No. 212, Ground Floor, Sampige Road, 1st Cross Near Hotel Southern Star, K. R. Puram, Hassan - 573 201 • Hissar Shop No. 20, Ground Floor, R D City Centre, Railway Road, in the city of Hissar - 125 001,Haryana • Hoshiarpur 1st Floor, The Mall Tower, Opp Kapila Hospital, Sutheri Road, Near Maharaj Palace, Hoshiarpur 146001 • Hubli 22 & 23 , 3rd Floor Eurecka Junction, T B Road Hubli – 580029 • Hyderabad Vamsee Estates, Opp Bigbazaar, Ameerpet, Hyderabad-16, Telangana-Hyderabad-500 016 • Indore 101, Diamond Trade centre, Indore, Madhya Pradesh - Indore-452001 •Jabalpur 43, Naya Bazar, Opposite Shyam Talkies, Jabalpur (MP) 482001 • Jaipur Office Number 101, 1st Floor, Okay Plus Tower, Next to Kalyan Jewellers, Government Hostel Circle , Ajmer road , Jaipur – 320 001, Rajasthan, Jaipur,302001,Rajasthan • Jalandhar Lower Ground Floor, Office No 3, Arora Prime Tower, Plot No 28, G T Road, Jalandhar 144004 • Jalgaon KFin Technologies Pvt. Ltd,3rd floor, 22 Yashodhan Ring Road Jalgaon 425201 • Jalpaiguri D B C Road, Opp Nirala Hotel,Jalpaiguri,735101,West Bengal • Jammu 5 A/D Second Extension, opposite Panama Chowk Petrol Pump Gandhi Nagar Jammu 180 012. Jamnagar KFin Technologies Private Limited, 1st Floor, Madhav Plaza , Opposite SBI Bank, Near LAL Bunglow, Jamnagar - 361001, Gujarat. • Jamshedpur Madhukunj, 3 Floor, No. 1 Q Road, Sakchi, Bistupur, East, Singhbhum; Jamshedpur -831001, Jharkhand • Jaunpur R. N. Complex, Opposite Pathak Honda, Above Oriental Bank of Commerce in the city of Jaunpur – 222 002, Uttar Pradesh • Jhansi 1st Floor, Puja Tower, Near 48 Chambers, ELITE Crossing, in the city of Jhansi – 284 001, Uttar Pradesh • Jodhpur Shop No. 6, GROUND FLOOR, GANG TOWER, OPPOSITE ARORA MOTER SERVICE CENTRE, NEAR BOMBAY MOTER CIRCLE, Jodhpur-342003 • Junagadh 124/125, Punit Shopping Center, Ranavat Chowk, Junagadh Gujarat 362001 • Kannur 2nd Floor, Prabhat Complex, Fort Road, Kannur 670001 • Kanpur 15/46, Opp Muir Mills, Civil Lines, Kanpur 208001 • Karaikudi No. 2,Gopi Arcade 100 Feet Road, Karaikudi 630001 • Karaikudi Gopi Arcade, 100 Feet Road, Karaikudi 630001 • Karimnagar 2 Shetter, HNo. 7-2-607 Sri Matha Complex, Mankammathota, Karimnagar, Telangana, 505001 • Karnal 18/369,Char Chaman Kunjpura road Karnal-132001 • Karur No 88/11 B B Plaza, NRMP street, K S Mess back side, Karur – 639002 • Kharagpur SBI BUILDING, Malancha Road, Holding No 254/220, Ward No.16, Pincode 721301, PO: Kharagpur, PS: Kharagpur, Dist: Paschim Medinipur, West Bengal • Kolhapur 605/1/4 E Ward, Near Sultane Chambers, Shahupuri 2nd Lane Kolhapur 416001• Kolkata Apeejay House ( Beside Park Hotel ) 15 Park Street, C Block,3rd Floor Kolkata-700016 , West Bengal • Kollam Ground Floor, Vigneshwara Bhavan, Below Reliance Web World, Kadapakkada Kollam 691008 • Kolkata 1 R N Mukerjee Road, 2nd Floor Room No.- 226, Kolkata - 700 001. • Kota SHRI RAM COMPLEX, OPPOSITE MULTI PURPOSE SCHOOL, GUMANPURA, KOTA – 324007,Rajasthan • Kottayam 1st Floor, CSIAscension Church Complex, Kottayam 686001 • Korba 1 Nidhi Biz Complex, Plot No 5, Near Patidar Bhawan, T. P. Nagar, in the city of Korba – 495 677, Chhattisgarh • Koramangala No.408, Ist Floor, CITA Bldg, Next to Vodafone Office, Koramangala, Bangalore 560 095 • Kurnool KFin Technologies Pvt Ltd, Shop No:47, 2nd Floor, S komda Shoping mall, Kurnool,518001 • Lucknow 1st Floor, A. A. Complex, Thaper House, 5 Park Road, Hazratganj, Lucknow – 226 001 • Ludhiana 2 Floor, SCO 122, Above HDFC Mutual Fund, Feroze, Gandhi Market, Ludhiana - 141001 • Malda RAM KRISHNA PALLY; GROUND FLOOR; ENGLISH BAZAR; MALDA PIN: 732101; WEST BENGAL; WEST BENGAL • Malleshwaram No.337, GF-3, Karuna Complex, Sampige Road, Opp. New Vegetable Market, Malleshwaram, Bangalore 560003• Madurai Rakesh Towers, 30-C, Bye Pass Road, 1st Floor, Opp Nagappa Motors, Madurai 625010 • Mangalore Ground Floor, Mahendra Arcade, Kodial Bail, Mangalore 575003 • Margao 2nd Floor,Dalal Commercial Complex, Opp Hari Mandir, Pajifond, Margao-Goa 403601 • Mathura Shop No. 9, Ground Floor, Vihari Lal Plaza, Opposite Brijwasi Centrum, Near New Bus Stand, in the city of Mathura – 281 001, Uttar Pradesh • Meerut H No 5, Purva Eran, Opp Syndicate Bank, Hapur Road, Meerut, 250001,Uttar Pradesh • Mehsana Ul-47, Appolo Enclave, Opp Simandhar Temple, Modhera Char Rasta Highway, Mehsana 384002 • Mirzapur House No. 404, Ward No. 8, Dankeenganj, Mirzapur , Pincode – 231 001, Uttar Pradesh • Moga Near Dharamshala Brat Ghar, Civil Line, Dutt Road, Moga 142001 • Moradabad Chadha Complex, G. M. D. Road, Near Tadi Khana, Chowk, in the city of Moradabad – 244 001, Uttar Pradesh • Morena House
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No. HIG 959, Near Court, Front of Dr. Lal Lab, Old Housing Board Colony, Morena – 476 001, Madhya Pradesh. • Mumbai - Office number : 01/04, 24/B, Raja Bahadur Compound, Ambalal Doshi Marg, Behind Bombay Stock Exchange, Fort Mumbai – 400001 • Muzaffarpur First Floor Saroj Complex , Diwam Road, Near Kalyani Chowk,Muzaffarpur,Bihar,842001• Mysore L-350, Silver Tower, Clock Tower, Ashoka Road, Mysore 570001 • Nadiad KFin Technologies Private Limited, 311-3rd Floor City Center Near Paras Circle Nadiad Pincode - 387001 • Nanganallur KFintech Private Ltd, No.: 155/7, Ullagaram, Medavakkam Main Road , (Opp. to IDBI ATM) , Madipakkam, Chennai - 600 091. • Nagarcoil 45, East Car Street, 1st Floor, Nagercoil - 629 001• Nagpur Plot No. 2 , Survey No. 1032 and 1033 of GagdaKHARE TOWN , DHARAMPETH, NAGPUR • Namakkal 105/2, Arun Towers, Paramathi Street, Namakkal 637 001 • Nanded Shop No 4, First Floor, Opp Bank of India, Santkrupa Market, Gurudwara Road, Nanded 431602 • Nasik S-12, Second Floor, Suyojit Sankul, Sharanpur Road, Nasik 422002 • Navsari 103, 1st floor Landmark Mall,Near Sayaji Library, Navsari,Gujarat - 396445• New Delhi 305, 3rd Floor New Delhi House, Bara Khamba Road Connaught Place New Delhi-110 001• Nellore D No:16-5-66 Ramarao Complex No:2Shop No:305,3rd Floor Nagula Mitta Rode, Opp Bank of Baroda. Nellore, Andhra Pradesh, 524001 • Nizamabad H No: 5-6-430, First Floor, Above Bank of Baroda, Beside HDFC Bank , Ginza View, Hyderabad Road, Nizamabad-503003. • Noida F - 21, Sector - 18, in the city of Noida,201301,Uttar Pradesh • Palghat 12/310, (No.20 & 21), Metro Complex, Head Post Office Road, Sultanpet, Palghat 678001 • Panipat 3rd Floor preet Tower, Behind Akash Institute, GT Road-Panipat, Pincode-132103 • Panjim KFintech Private Ltd Flat No.1-A, H. No. 13/70 Timotio Bldg Heliodoro Salgado Road, Next to Navhind Bhavan (Market Area) Panaji Goa – 403001 • Patiala Sco 27 D,Chhoti Baradari Patiala 147001 • Patna 3A, 3rd Floor, Anand Tower, Beside Chankya Cinema Hall, Exhibition Road, Patna 800001 • Pathankot 2nd Floor, Sahni Arcade Complex, Adj. Indra Colony Gate Railway Road, City Pathankot- 145001 • Pollachi KFin Technologies Pvt Ltd,1st floor, MKG complex, Opp to Gowri Shankar Hotel, Pollachi -642001 • Pondicherry First Floor No.7, Thiayagaraja Street Pondicherry 605001 • Pudukottai Sundaram Masilamani Towers, TS No 5476-5479, PM Road, Old Tirumayam Salai, Near Anna Statue, Jublie Arts, Pudukottai 622001 •Pune Office no 207-210, 2nd Floor, Kamla Arcade, Jangli Maharaj Road, Opposite Balgandharva, Shivaji Nagar, Pune 411005 • Raipur Office No. S-13, Second Floor,Raheja Tower, Fafadih Chowk, Jail Road, Raipur - 492 001.• Rajahmundry Dr No 61-4, First Floor, Rangachary Street, T Nagar, Rajahmundry 533101 • Rajapalayam Sri Ganpathy Complex 14B/5/18, T P Mills Road Rajapalayam 626117 •Rajkot 302, Metro Plaza, Near Moti Tanki Chowk , Rajkot, Gujarat - 360 001 •Ranchi Room No. 307, 3 rd Floor, Commerce Towers, Beside Mahabir Towers Main Road Ranchi - 834 001• Ratlam 1 Nagpal Bhavan, Freeganj Road, Tobatti, Ratlam 457001 • Renukoot C/o Mallick Medical Store,Bangali Katra Main Road, Renukoot, Dist. Sonebhadra (U.P.), Pincode - 231217 • Rewa 1st Floor, Angoori Building, Besides Allahabad Bank,Trans University Road, Civil Lines, Rewa 485001 • Rohtak Shop No 14, Ground Floor, Ashoka Plaza, Delhi Road, in the city of Rohtak – 124 001, Haryana • Roorkee Shree Ashadeep Complex, 16 Civil Lines, Near Income Tax Office, Roorkee, Uttaranchal 247667 • Rourkela 2nd Floor, Main Road, UDIT NAGAR, ROURKELA; SUNDARGARH; PIN: 769012; ORISSA • Sagar 1st floor satyam complex,infront of cantt shopping mall5 civil lines Sagar (MP)470002. • Saharanpur 18 Mission Market, Court Road, Saharanpur 247001 Uttar Pradesh • Salem No. 3/250 "F" Brindavan Road, 6th Cross , Perumal Kovil Back side, Fair Land's Salem - 636016, Tamil Nadu. • Sambalpur SAHEJ PLAZA; First Floor; Shop No. 219; Golebazar; Sambalpur; PIN: 768 001;ORISSA- Sambalpur-768001 • Satna Jainam Market, Purana Power House Chauraha, Panni Lal Chowk, in the city of Satna – 485 001, Madhya Pradesh, Satna,485001,Madhya Pradesh • Secunderabad C/o. KFin Technologies Pvt. Ltd. 1st Floor, Thirumala, Complex Paradise Circle, S.D. Road, Opp. Hotel Kamat, Secunderabad - 500 003 • Shaktinagar 1st/A-375, V V Colony Dist Sonebhadra Shaktinagar 231222 • Shivpuri Near Hotel Vanasthali, In Front of Sawarkar Park, A. B. Road, in the city of Shivpuri – 473 551, Madhya Pradesh, Shivpuri,473551,Madhya Pradesh • Shillong Mani Bhawan, Thana Road, Lower Police Bazar, Shillong 739001 • Shimla 1 Floor, Hills View Complex, Near Tara Hall, Shimla – 171 001, Himanchal Pradesh • Shimoga Uday Ravi
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Complex, LLR Road, Durgi Gudi, Shimoga 577201 • Sikar 1st Floor, Super Towers Behind Ram Mandir, Station Road, Sikar 332001 • Silchar 1st Floor, Chowchakra Complex, N N Dutta Road, Premtala Silchar 788001 • Siliguri 2 Floor, Nanak Complex, Sevoke Road, Siliguri-734001 • Sitapur 12/12, Surya Complex, Station Road, Sitapur, Pin code – 261 001, Uttar Pradesh. • Sivakasi 363, Thiruthangal Road, Opp TNEB,Sivakasi 626 123 • Solan Disha Complex, 1St Floor, Above Axis Bank, Rajgarh Road, in the city of Solan – 173 212, Himanchal Pradesh • Solapur Siddeshwar Secrurities, No 6, Vaman Road, Vijaypur Road, Vaman Nagar,Solapur 413004 • Surat Office No: 516, 5th Floor, Empire State Building, Near Parag House, UdhnaDarwaja, Ring Road, Surat 395002 • Sonepat 2nd floor, DP Tower, Model Town, Near Subhash chowk, Sonepat, 131001,Haryana • Sri Ganganagar Address Shop No. 5, Opposite Bihani Petrol Pump, near Baba Ramdev Mandir, NH - 15,,,Sri Ganganagar,335001,Rajasthan • Srikakulam 4-1-28/1, Venkateshwara Colony Day & Night Junction, Srikakulam 532001 • Sultanpur 1st Floor, Ramashanker Market, Civil Line, in the city of Sultanpur – 228 001, Uttar Pradesh • Thanjavur No 1, Underground,Nallaiyah Complex, Srinivasam pillai road, Thanjavur -613001 • Thane Room No. 302, 3rd Floor, Ganga Prasad Near RBL Bank Ltd, Ram Maruti Cross Road, Naupada , Thane West , Mumbai - 400 602 • T Nagar G1, Ground Floor, No 22, Vijayaraghava Road Swathi Court, KFin Technologies Private Limited, No 23 | Cathedral Garden Road, Nungambakkam | Chennai - 600034• Thodupuzha First Floor, Pulimoottil Pioneer Pala Road, Thodupuzha 685584 • Tirunelveli Jeney Building, 55/18, S N Road, Near Arvind Eye Hospital, Tirunelveli 627001•Tirupur No 669A,Kamaraj Road,Near old collector office,Tirupur, Pincode- 641604 • Tirupathi H.No:12-3-330 2nd Floor , Tilak Road Near Four Piller Mandapam Tirupathi : 517501 • Tiruvalla 2nd Floor, Erinjery Complex, Near Kotak Securites, Ramanchira Tiruvalla 689107 • Trichur 2nd Floor, Brother's Complex, Near DhanaLaxmi Bank Head Office, Naikkanal Junction, Trichur 680001 • Trichy No 23C/1 E V R road, Near Vekkaliamman Kalyana Mandapam, Putthur, Trichy – 6200017 • Trivandrum 2nd Floor, Akshaya Towers, Above Jetairways, Sasthamangalam, Trivandrum 695010 • Tuticorin No 4B/A-10Mani Nagar, Mangal Mall, Palayamkottai road,Tuticorin - 628003 • Udaipur Shop No. 202, 2nd Floor business centre, 1C Madhuvan, Opp G P O Chetak Circle,Udaipur – 313001 • Ujjain Heritage Shop No. 227 , 87 Vishvavidhyalaya Marg,Station Road, Near ICICI bank Above Vishal Megha Mart,Ujjain (M.P) -456001 • Valsad 406 Dreamland Arcade , Opp Jade Blue , Tithal Road , Valsad -396001 , Gujarat • Vapi Shop No 5, Phikhaji Residency, Opp DCB Bank,Vapi Silvassa Road, Vapi 396195 • Varanasi D-64/132, 2nd Floor , KA, Mauza, Shivpurwa, Settlement Plot No 478, Pargana : Dehat Amanat, Mohalla Sigra,Varanashi,221010,Uttar Pradesh • Vashi C, Wing Flat NO. 324 1st Floor ,Vashi Plaza, Sector 17 Vashi, Navi Mumbai, Pincode 400 703 . • Vellore No 1, M N R Arcade, Officer's Line, Krishna Nagar, Vellore 632001 • Vijayawada Address-1StFloor, HNo26-23-Sundarammastreet,GandhiNagar,Vijayawada,Krishna AP,520003 • Vile Parle KFin Technologies Pvt Ltd, Shop No.1 Ground Floor,Dipti Jyothi Co-operative Housing Society,Near MTNL office P M Road,Vile Parle East, Mumbai 400 056 •Visakhapatnam Ground Floor, 48-10-40, Sri Nagar Colony, Visakhapatnam, AP-530016 •Vijayanagaram D No : 20-20-29, 1st Floor, Surya Nagar, Kalavapuvvu Meda, Near Ayodhya Stadium, Dharmapuri Road, Vizianagaram – 535002, Andhra Pradesh • Warangal Shop No22 , Ground Floor Warangal City Center,15-1-237, Mulugu Road Junction, Warangal Pin-506002, Telangana. • Yamuna Nagar B-V, 185/A, 2nd Floor, Jagadri Road, Near DAV Girls College, (UCO Bank Building) Pyara Chowk, Yamunanagar, Pincode -135 001, Haryana KFin Technologies Pvt. Ltd., Registrar & Transfer Agents of Axis Mutual Fund having its office at Unit: Axis Mutual Fund, Tower B, Plot number 31 & 32, Financial District, Gachibowli, Nanakramguda, Serilingampally Mandal, Hyderabad – 500032 is the collection centre of transactions / request for electronic transactions received from specified banks, financial institutions, distribution channel etc. (mobilized on behalf of their clients) with whom the AMC has entered or may enter into specific arrangements for purchase/ sale/switch of units.
Axis Bluechip Fund 127
In the wake of Covid-19 pandemic, transactions in schemes of Axis Mutual Fund can be submitted at Official Points of Acceptance (OPA) listed on website (www.axismf.com) during specified business hours till further notice. Investors are requested to visit website www.axismf.com and website of Registrar i.e. https://mfs.kfintech.com/mfs/ for changes in the list of OPA from time to time Website of the AMC (www.axismf.com) shall be official point of acceptance for existing investors. In addition to the existing Official Points of Acceptance for accepting transactions in the units of the schemes of the Axis Mutual Fund as disclosed in the SID, http://www.mfuindia.com/MFUPOS i.e. online transaction portal of MFU and the authorized Points of Service (“POS”) designated by MUFI shall also be the OPA. Axis Asset Management Company Limited (Investment Manager to Axis Mutual Fund) Axis House, 1st Floor, C-2 Wadia International, Pandurang Budhkar Marg, Worli, Mumbai - 400025, India. Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC) Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Axis Triple Advantage Fund 1
S C H E M E I N F O R M A T I O N D O C U M E N T
AXIS TRIPLE ADVANTAGE FUND
An open ended scheme investing in equity, debt and gold
Continuous offer for Units at NAV based prices
This product is suitable for investors who are seeking*:
• capital appreciation & generating income over long term.
• Investment in a diversified portfolio of equity and equity related instruments, fixed income
instruments & gold exchange traded funds.
* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Name of Mutual Fund : Axis Mutual Fund
Name of Asset Management Company : Axis Asset Management Company Ltd.
Name of Trustee Company : Axis Mutual Fund Trustee Ltd.
Addresses, Website of the entities : Axis House, 1st Floor, C-2, Wadia International Centre,
Pandurang Budhkar Marg, Worli, Mumbai – 400 025
www.axismf.com
Name of Sponsor : Axis Bank Ltd.
The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board
of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations or the
Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the Asset
Management Company (AMC). The Units being offered for public subscription have not been approved or
recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information
Document.
The Scheme Information Document sets forth concisely the information about the Scheme that a
prospective investor ought to know before investing. Before investing, investors should also ascertain about
any further changes to this Scheme Information Document after the date of this Document from the Mutual
Fund / Investor Service Centres / Website / Distributors or Brokers.
The investors are advised to refer to the Statement of Additional Information (SAI) for details of Axis Mutual
Fund, Tax and Legal issues and general information on www.axismf.com.
SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of
the current SAI, please contact your nearest Investor Service Centre or log on to our website.
The Scheme Information Document should be read in conjunction with the SAI and not in isolation.
This Scheme Information Document is dated November 29, 2019
Axis Triple Advantage Fund 2
TABLE OF CONTENTS
HIGHLIGHTS/SUMMARY OF THE SCHEME.................................................................................. 3
I. INTRODUCTION .............................................................................................................. 5
A. RISK FACTORS ........................................................................................................................... 5
B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME ............................................... 11
C. SPECIAL CONSIDERATIONS, if any ...................................................................................... 11
D. DEFINITIONS ............................................................................................................................ 12
E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY ............................................. 16
II. INFORMATION ABOUT THE SCHEME ............................................................................ 17
A. TYPE OF THE SCHEME ............................................................................................................ 17
B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? ................................................. 17
C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? ............................................................... 17
D. WHERE WILL THE SCHEME INVEST? ...................................................................................... 29
E. WHAT ARE THE INVESTMENT STRATEGIES ........................................................................... 36
F. FUNDAMENTAL ATTRIBUTES .................................................................................................. 49
G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE ? ......................................... 50
H. WHO MANAGES THE SCHEME? .......................................................................................... 50
I. WHAT ARE THE INVESTMENT RESTRICTIONS? ..................................................................... 52
J. CREATION OF SEGREGATED PORTFOLIO .......................................................................... 58
K. HOW HAS THE SCHEME PERFORMED? ............................................................................... 62
L. INVESTMENTS BY THE AMC ................................................................................................... 63
M. ADDITIONAL SCHEME RELATED DISCLOSURES ................................................................. 63
III. UNITS AND OFFER ........................................................................................................ 65
A. NEW FUND OFFER (NFO) .............................................................................................. 65
B. ONGOING OFFER DETAILS ........................................................................................... 74
C. PERIODIC DISCLOSURES .............................................................................................109
D. COMPUTATION OF NAV .............................................................................................112
IV. FEES AND EXPENSES ....................................................................................................113
A. NEW FUND OFFER (NFO) EXPENSES .................................................................................. 113
B. ANNUAL SCHEME RECURRING EXPENSES ....................................................................... 113
C. LOAD STRUCTURE ................................................................................................................ 115
D. WAIVER OF LOAD FOR DIRECT APPLICATIONS .............................................................. 117
V. RIGHTS OF UNIT HOLDERS ...........................................................................................118
VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR
INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF
BEING TAKEN BY ANY REGULATORY AUTHORITY ...................................................................119
Axis Triple Advantage Fund 3
HIGHLIGHTS/SUMMARY OF THE SCHEME
Investment objective
The Scheme seeks to generate long term capital appreciation by investing in a diversified
portfolio of equity and equity related instruments, fixed income instruments & gold
Exchange Traded Funds.
Investment Theme
The scheme seeks to benefit from the concept of asset allocation.
The aim of asset allocation is to improve risk adjusted returns through diversification across
various asset classes like equity, fixed income & gold which have low correlation with each
other.
Liquidity
The Scheme offers Units for Subscription and Redemption at NAV based prices on all
Business Days. Under normal circumstances, the AMC shall dispatch the redemption
proceeds within 10 business days from the date of receipt of request from the Unit holder.
Benchmark
The Scheme performance would be benchmarked against a customized composite
benchmark comprising of Nifty 50, Nifty Composite Debt Index and INR Price of Gold.
The Composition of the benchmark would be:
Asset Class/Instruments Benchmark Percentage
Equity and Equity Related Instruments Nifty 50 TRI 65
Debt and Money Market Instruments Nifty Composite Debt Index 20
Gold Exchange Traded Funds INR Price of Gold 15
Transparency/NAV Disclosure
The AMC will calculate and disclose the NAVs on all Business Days. The AMC shall update
the NAVs on its website (www.axismf.com) and of the Association of Mutual Funds in India -
AMFI (www.amfiindia.com) before 11.00 p.m. on every Business Day. If the NAVs are not
available before the commencement of Business Hours on the following day due to any
reason, the Mutual Fund shall issue a press release giving reasons and explaining when the
Mutual Fund would be able to publish the NAV.
The AMC will disclose the portfolio of the Scheme (alongwith ISIN) as on the last day of the
month/ half year on the website of the Mutual Fund and AMFI within 10 days from the close
of each month/ half year (i.e. 31st March and 30th September) respectively in a user-
friendly and downloadable spreadsheet format. Further, AMC shall publish an
advertisement, in an all India edition of one national English daily newspaper and in one
Hindi newspaper, every half year disclosing the hosting of the half-yearly statement of its
schemes portfolio on the website of the Mutual Fund and AMFI and the modes through
which unitholder can submit a request for a physical or electronic copy of the statement of
scheme portfolios.
The AMC will also provide a dashboard, in a comparable, downloadable (spreadsheet)
and machine readable format, providing performance and key disclosures like Scheme’s
AUM, investment objective, expense ratios, portfolio details, scheme’s past performance
etc. on its website.
The AMC will make available the Annual Report of the Scheme within four months of the
end of the financial year on its website and on the website of AMFI along with a link.
Plans and Options under the Plan(s) of the Scheme
Plans
Axis Triple Advantage Fund – Regular Plan
Axis Triple Advantage Fund – Direct Plan
Axis Triple Advantage Fund 4
Options under each plans
Growth
Dividend (Payout and Reinvestment Facility)
Direct Plan
Direct Plan is only for investors who purchase/ subscribe Units in a Scheme directly with the
Fund and is not available for investors who route their investments through a Distributor.
Eligible investors / modes for applying
All categories of investors (whether existing or new Unitholders) as permitted under the
Scheme Information Document of the Scheme are eligible to subscribe under Direct Plan.
Investments under Direct Plan can be made through various modes offered by the Fund for
investing directly with the Fund {except Platform(s) where investors’ applications for
subscription of units are routed through Distributors}.
All the plans will have common portfolio.
Minimum application amount
Rs. 5,000 and in multiples of Re. 1/- thereafter
Minimum Additional Purchase Amount
Rs.100 and in multiples of Re. 1/- thereafter
Minimum application amount is applicable at the time of creation of new folio and at the
time of first investment in a plan.
Loads
Entry Load: Not Applicable
Exit Load:
If redeemed/switch out within 12 months from the date of allotment:
- For 10% of investment: Nil
- For remaining investment: 1%
If redeemed/switch out after 12 months from the date of allotment: Nil
SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 has decided
that there shall be no entry load for all Mutual Fund schemes. The upfront commission on
investment made by the investor, if any, shall be paid to the ARN Holder (AMFI registered
Distributor) directly by the investor, based on the investor's assessment of various factors
including service rendered by the ARN Holder.
For more details on Load Structure, please refer paragraph “Load Structure”.
Axis Triple Advantage Fund 5
I. INTRODUCTION
A. RISK FACTORS
i. Standard Risk Factors:
Investment in mutual fund units involves investment risks such as trading volumes,
settlement risk, liquidity risk, default risk including the possible loss of principal.
As the price / value / interest rates of the securities in which the Scheme invests
fluctuates, the value of your investment in the Scheme may go up or down.
Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future
performance of the Scheme.
Axis Triple Advantage Fund is the name of the Scheme and does not in any manner
indicate either the quality of the Scheme or its future prospects and returns.
The sponsor is not responsible or liable for any loss resulting from the operation of the
Scheme beyond the initial contribution of Rs. 1 lakh made by it towards setting up the
Fund.
Axis Triple Advantage Fund is not a guaranteed or assured return scheme.
ii. Scheme Specific Risk Factors
Risks associated with investments in Equities
Equity and equity related securities are volatile and prone to price fluctuations on a
daily basis. The liquidity of investments made in the Scheme may be restricted by
trading volumes and settlement periods. Settlement periods may be extended
significantly by unforeseen circumstances. The inability of the Scheme to make
intended securities purchases, due to settlement problems, could cause the Scheme to
miss certain investment opportunities. Similarly, the inability to sell securities held in the
Scheme portfolio would result at times, in potential losses to the Scheme, should there
be a subsequent decline in the value of securities held in the Scheme portfolio. Also, the
value of the Scheme investments may be affected by interest rates, currency
exchange rates, changes in law/policies of the government, taxation laws and political,
economic or other developments which may have an adverse bearing on individual
Securities, a specific sector or all sectors.
Investments in equity and equity related securities involve a degree of risk and investors
should not invest in the equity Schemes unless they can afford to take the risk of losing
their investment.
Securities which are not quoted on the stock exchanges are inherently illiquid in nature
and carry a larger liquidity risk in comparison with securities that are listed on the
exchanges or offer other exit options to the investors, including put options. The AMC
may choose to invest in unlisted securities that offer attractive yields within the
regulatory limit. This may however increase the risk of the portfolio. Additionally, the
liquidity and valuation of the Scheme investments due to its holdings of unlisted
securities may be affected if they have to be sold prior to the target date of
disinvestment.
Risks associated with investments in Fixed Income Securities
Interest-Rate Risk: Fixed income securities such as government bonds, corporate bonds,
and money market instruments and derivatives run price-risk or interest-rate risk. Generally,
when interest rates rise, prices of existing fixed income securities fall and when interest rates
drop, such prices increase. The extent of fall or rise in the prices depends upon the coupon
and maturity of the security. It also depends upon the yield level at which the security is
being traded.
Re-investment Risk: Investments in fixed income securities carry re-investment risk as interest
rates prevailing on the coupon payment or maturity dates may differ from the original
coupon of the bond.
Basis Risk: The underlying benchmark of a floating rate security or a swap might become
less active or may cease to exist and thus may not be able to capture the exact interest
rate movements, leading to loss of value of the portfolio.
Spread Risk: In a floating rate security the coupon is expressed in terms of a spread or mark
up over the benchmark rate. In the life of the security this spread may move adversely
leading to loss in value of the portfolio. The yield of the underlying benchmark might not
Axis Triple Advantage Fund 6
change, but the spread of the security over the underlying benchmark might increase
leading to loss in value of the security.
Liquidity Risk: The liquidity of a bond may change, depending on market conditions leading
to changes in the liquidity premium attached to the price of the bond. At the time of selling
the security, the security can become illiquid, leading to loss in value of the portfolio.
Credit Risk: This is the risk associated with the issuer of a debenture/bond or a money
market instrument defaulting on coupon payments or in paying back the principal amount
on maturity. Even when there is no default, the price of a security may change with
expected changes in the credit rating of the issuer. It is to be noted here that a
Government Security is a sovereign security and is the safest. Corporate bonds carry a
higher amount of credit risk than Government securities. Within corporate bonds also there
are different levels of safety and a bond rated higher by a particular rating agency is safer
than a bond rated lower by the same rating agency.
Liquidity Risk on account of unlisted securities: The liquidity and valuation of the Scheme
investments due to their holdings of unlisted securities may be affected if they have to be
sold prior to their target date of divestment. The unlisted security can go down in value
before the divestment date and selling of these securities before the divestment date can
lead to losses in the portfolio.
Settlement Risk: Fixed income securities run the risk of settlement which can adversely affect
the ability of the fund house to swiftly execute trading strategies which can lead to adverse
movements in NAV
Risk associated with Securitized Debt
The Scheme may invest in domestic securitized debt such as Asset Backed Securities (ABS)
or Mortgage Backed Securities (MBS). ABS are securitized debts where the underlying assets
are receivables arising from various loans including automobile loans, personal loans, loans
against consumer durables, etc. MBS are securitized debts where the underlying assets are
receivables arising from loans backed by mortgage of residential / commercial properties.
At present in Indian market, following types of loans are securitized:
1. Auto Loans (cars / commercial vehicles /two wheelers)
2. Residential Mortgages or Housing Loans
3. Consumer Durable Loans
4. Personal Loans
5. Corporate Loans
In terms of specific risks attached to securitization, each asset class would have different
underlying risks. Residential Mortgages generally have lower default rates than other asset
classes, but repossession becomes difficult. On the other hand, repossession and
subsequent recovery of commercial vehicles and other auto assets is fairly easier and
better compared to mortgages. Asset classes like personal loans, credit card receivables
are unsecured and in an economic downturn may witness higher default. A corporate
loan/receivable, depend upon the nature of the underlying security for the loan or the
nature of the receivable and the risks correspondingly fluctuate.
The rating agencies define margins, over collateralisation and guarantees to bring risk in
line with similar AAA rated securities. The factors typically analyzed for any pool are as
follows:
a. Assets securitized and Size of the loan: This indicates the kind of assets financed with the
loan and the average ticket size of the loan. A very low ticket size might mean more costs
in originating and servicing of the assets.
b. Diversification: Diversification across geographical boundaries and ticket sizes might
result in lower delinquency
c. Loan to Value Ratio: Indicates how much % value of the asset is financed by borrower’s
own equity. The lower this value the better it is. This suggests that where the borrowers own
contribution of the asset cost is high; the chances of default are lower.
Axis Triple Advantage Fund 7
d. Average seasoning of the pool: This indicates whether borrowers have already displayed
repayment discipline. The higher the number, the more superior it is.
The other main risks pertaining to Securitised debt are as follows:
Prepayment Risk: This arises when the borrower pays off the loan sooner than expected.
When interest rates decline, borrowers tend to pay off high interest loans with money
borrowed at a lower interest rate, which shortens the average maturity of ABS. However,
there is some prepayment risk even if interest rates rise, such as when an owner pays off a
mortgage when the house is sold or an auto loan is paid off when the car is sold.
Reinvestment Risk: Since prepayment risk increases when interest rates decline, this also
introduces reinvestment risk, which is the risk that the principal can only be reinvested at a
lower rate.
Risks associated with investments in Derivatives
The Scheme may invest in derivative products in accordance with and to the extent
permitted under the Regulations and by RBI. Derivative products are specialized
instruments that require investment techniques and risk analysis different from those
associated with stocks and bonds. The use of a derivative requires an understanding not
only of the underlying instrument but of the derivative itself. Trading in derivatives carries
a high degree of risk although they are traded at a relatively small amount of margin
which provides the possibility of great profit or loss in comparison with the principal
investment amount. Thus, derivatives are highly leveraged instruments. Even a small
price movement in the underlying security could have an impact on their value and
consequently, on the NAV of the Units of the Scheme.
The derivatives market in India is nascent and does not have the volumes that may be
seen in other developed markets, which may result in volatility to the values.
Investment in derivatives also requires the maintenance of adequate controls to
monitor the transactions entered into, the ability to assess the risk that a derivative adds
to the portfolio and the ability to forecast price or interest rate movements correctly.
Even a small price movement in the underlying security could have an impact on their
value and consequently, on the NAV of the Units of the Scheme.
The Scheme may face execution risk, whereby the rates seen on the screen may not be
the rate at which the ultimate execution of the derivative transaction takes place.
The Scheme may find it difficult or impossible to execute derivative transactions in
certain circumstances. For example, when there are insufficient bids or suspension of
trading due to price limit or circuit breakers, the Scheme may face a liquidity issue.
The option buyer's risk is limited to the premium paid, while the risk of an options writer is
unlimited. However, the gains of an options writer are limited to the premiums earned.
The exchange may impose restrictions on exercise of options and may also restrict the
exercise of options at certain times in specified circumstances and this could impact
the value of the portfolio.
The writer of a put option bears the risk of loss if the value of the underlying asset
declines below the exercise price. The writer of a call option bears a risk of loss if the
value of the underlying asset increases above the exercise price.
Investments in index futures face the same risk as the investments in a portfolio of shares
representing an index. The extent of loss is the same as in the underlying stocks.
The Scheme bears a risk that it may not be able to correctly forecast future market
trends or the value of assets, indices or other financial or economic factors in
establishing derivative positions for the Scheme.
The risk of loss in trading futures contracts can be substantial, because of the low margin
deposits required, the extremely high degree of leverage involved in futures pricing and
the potential high volatility of the futures markets.
There is the possibility that a loss may be sustained by the portfolio as a result of the
failure of another party (usually referred to as the "counter party") to comply with the
terms of the derivatives contract. The counter party may default on a transaction
before settlement and therefore, the Scheme is compelled to negotiate with another
counterparty at the then prevailing (possibly unfavorable) market price.
Derivatives also carry a market liquidity risk where the derivatives cannot be sold
(unwound) at prices that reflect the underlying assets, rates and indices.
Where derivatives are used for hedging, such use may involve a basis risk where the
instrument used as a hedge does not match the movement in the
Axis Triple Advantage Fund 8
instrument/underlying asset being hedged. The risk may be inter-related also e.g.
interest rate movements can affect equity prices, which could influence specific
issuer/industry assets.
Other risks in using derivatives include the risk of mispricing or improper valuation of
derivatives and the inability of derivatives to correlate perfectly with underlying assets,
rates and indices.
Derivative products are leveraged instruments and can provide disproportionate gains
as well as disproportionate losses to the investor.
Execution of investment strategies depends upon the ability of the fund manager(s) to
identify such opportunities which may not be available at all times. Identification and
execution of the strategies to be pursued by the fund manager(s) involve uncertainty
and decision of fund manager(s) may not always be profitable. No assurance can be
given that the fund manager(s) will be able to identify or execute such strategies.
The risks associated with the use of derivatives are different from or possibly greater
than, the risks associated with investing directly in securities and other traditional
investments.
The following are certain additional risks involved with use of fixed income derivatives:
Interest rate risk: Derivatives carry the risk of adverse changes in the price due to change in
interest rates.
Liquidity risk: During the life of the derivative, the benchmark might become illiquid and
might not be fully capturing the interest rate changes in the market, or the selling,
unwinding prices might not reflect the underlying assets, rates and indices, leading to loss of
value of the portfolio.
Risks associated with Covered Call Strategy
Writing call options are highly specialized activities and entail higher than ordinary
investment risks. In such investment strategy, the profits from call option writing is capped at
the option premium, however the downside depends upon the increase in value of the
underlying equity shares. This downside risk is reduced by writing covered call options.
The Scheme may write covered call option only in case it has adequate number of
underlying equity shares as per regulatory requirement. This would lead to setting aside a
portion of investment in underlying equity shares. If covered call options are sold to the
maximum extent allowed by regulatory authority, the scheme may not be able to sell the
underlying equity shares immediately if the view changes to sell and exit the stock. The
covered call options need to be unwound before the stock positions can be liquidated. This
may lead to a loss of opportunity, or can cause exit issues if the strike price at which the call
option contracts have been written become illiquid. Hence, the scheme may not be able
to sell the underlying equity shares, which can lead to temporary illiquidity of the underlying
equity shares and result in loss of opportunity.
The writing of covered call option would lead to loss of opportunity due to appreciation in
value of the underlying equity shares. Hence, when the appreciation in equity share price is
more than the option premium received the scheme would be at a loss.
The total gross exposure related to option premium paid and received must not exceed the
regulatory limits of the net assets of the scheme. This may restrict the ability of Scheme to
buy any options.
Risks associated with investing in foreign securities/overseas investments/offshore securities
Subject to necessary approvals and within the investment objectives of the Scheme,
the Scheme may invest in overseas markets which carry risks related to fluctuations in
the foreign exchange rates, the nature of the securities market of the country,
repatriation of capital due to exchange controls and political circumstances.
Since the Scheme would invest only partially in foreign securities, there may not be
readily available and widely accepted benchmarks to measure performance of such
Scheme. To manage risks associated with foreign currency and interest rate exposure,
the Fund may use derivatives for efficient portfolio management and hedging and
portfolio rebalancing and in accordance with conditions as may be stipulated under
the Regulations and by RBI from time to time.
Axis Triple Advantage Fund 9
Investment in Foreign Securities involves a currency risk. To the extent that the assets of
the Scheme will be invested in securities denominated in foreign currencies, the Indian
Rupee equivalent of the net assets, distributions and income may be adversely
affected by changes in the value of certain foreign currencies relative to the Indian
Rupee. The repatriation of capital to India may also be hampered by changes in
regulations concerning exchange controls or political circumstances as well as the
application to it of other restrictions on investment.
Risks associated with Repo transactions in Corporate Bonds
The Scheme may be exposed to counter party risk in case of repo lending transactions in
the event of the counterparty failing to honour the repurchase agreement. However in
repo transactions, the collateral may be sold and a loss is realized only if the sale price is less
than the repo amount. The risk is further mitigated through over-collateralization (the value
of the collateral being more than the repo amount).
Risks associated with Creation of Segregated portfolio
1. Investor holding units of segregated portfolio may not able to liquidate their holding till
the time recovery of money from the issuer.
2. Security comprises of segregated portfolio may not realise any value.
3. Listing of units of segregated portfolio on recognised stock exchange does not
necessarily guarantee their liquidity. There may not be active trading of units in the
stock market. Further trading price of units on the stock market may be significantly
lower than the prevailing NAV.
Risk Factor associated with debt instruments having credit enhancement:
The Scheme may invest in debt instruments having credit enhancement backed by equity
shares/guarantees or other any assets as collateral. The profile of these issuers tend to be
relatively weak and there may be a pledge of shares of a related party to enhance credit
quality or guarantees provided or any other asset provided as security acceptable to
lenders.
Where equity shares are provided as collateral there is the risk of sharp price volatility of
underlying securities which may lead to erosion in value of collateral which may affect the
ability of the fund to enforce collateral and recover capital and interest obligations. Also
there is a possibility of guarantor going insolvent which also can impact the recovery value
of exposure. In case of credit enhanced structures backed by equity share the liquidity of
the underlying shares may be low leading to a lower recovery and a higher impact cost of
liquidation. In case of other assets provided recovery value and enforce ability of asset can
also be a risk factor which can lower the recovery value.
Risks associated with Securities lending
The risks in lending portfolio securities, as with other extensions of credit, consist of the failure
of another party, to comply with the terms of agreement entered into between the lenders
of securities i.e. any scheme and the approved intermediary/counterparty. Such failure to
comply can result in the possible loss of rights in the collateral put up by the borrower of the
securities, the inability of the approved intermediary/counterparty to return the securities
deposited by the lender and the possible loss of any corporate benefits accruing to the
lender from the securities deposited with the approved intermediary. The Scheme may not
be able to sell such lent securities and this can lead to temporary illiquidity.
Risks associated with Short Selling
The Scheme may enter into short selling transactions, subject to SEBI and RBI Regulations.
Short positions carry the risk of losing money and these losses may grow unlimited
theoretically if the price of the stock increases without any limit. This may result in major loss
to the Scheme. At times, the participants may not be able to cover their short positions, if
the price increases substantially. If numbers of short sellers try to cover their position
simultaneously, it may lead to disorderly trading in the stock and thereby can briskly
escalate the price even further making it difficult or impossible to liquidate short position
quickly at reasonable prices. In addition, short selling also carries the risk of inability to
borrow the security by the participants thereby requiring the participants to purchase the
securities sold short to cover the position even at unreasonable prices.
Axis Triple Advantage Fund 10
Risks associated with Investment in Gold Exchange Traded Funds
Market Risk
The NAV of gold ETFs is closely related to the value of gold held by the scheme. The value
(price) of gold may fluctuate for several reasons and all such fluctuations will result in
changes in the NAV of gold ETFs. The factors that may effect the price of gold, among
other things, include demand and supply for gold in India and in the global market, Indian
and foreign exchange rates, interest rates, inflation trends, trading in gold as commodity,
legal restrictions on the movement/trade of gold that may be imposed by RBI, Government
of India or countries that supply or purchase gold to/from India, trends and restrictions on
import/export of gold jewellery in and out of India, etc.
Counter party Risk
India does not have an Exchange for trading physical gold. Therefore, the underlying gold
ETF may have to buy or sell gold from the open market, which may lead to counter party
risks for trading and settlement.
Liquidity Risk
The underlying gold ETF has to sell gold only to bullion bankers/traders who are authorized
to buy gold. Though there are adequate number of players (commercial or bullion bankers)
to whom the underlying gold ETF can sell gold, it may have to resort to distress sale of gold if
there is no or low demand for gold to meet its cash needs of redemption or expenses.
Risks associated with Physical gold
There is a risk that part or all of the underlying scheme’s gold could be lost, damaged or
stolen. Access to it could also be restricted by natural events or human actions. Any of
these actions may have adverse impact on the operations of the gold ETF and
consequently on the investment of the scheme.
Indirect taxation
For the valuation of gold by the underlying scheme, indirect taxes like customs duty, VAT
etc. would also be considered. Hence any change in the rates of indirect taxation would
affect the valuation of the gold ETF.
A significant portion of the aggregate world gold holdings is owned by governments,
central banks and related institutions. If one or more of these institutions decides to sell in
amounts large enough to cause a decline in world gold prices, the NAV of the gold ETF(s)
will be adversely affected.
Risks associated with transaction in Units through stock exchange(s)
In respect of transaction in Units of the Scheme through BSE and / or NSE, allotment and
redemption of Units on any Business Day will depend upon the order processing /
settlement by BSE and / or NSE and their respective clearing corporations on which the
Fund has no control.
Risk Factors Associated with Investments in REITs and InvITS:
Price-Risk or Interest-Rate Risk: REITs & InvITs run price-risk or interest-rate risk. Generally,
when interest rates rise, prices of existing securities fall and when interest rates drop,
such prices increase. The extent of fall or rise in the prices is a function of the existing
coupon, days to maturity and the increase or decrease in the level of interest rates.
Credit Risk: In simple terms this risk means that the issuer of a debenture/ bond or a
money market instrument may default on interest payment or even in paying back the
principal amount on maturity. REITs & InvITs are likely to have volatile cash flows as the
repayment dates would not necessarily be pre scheduled.
Liquidity or Marketability Risk: This refers to the ease with which a security can be sold at
or near to its valuation yield-to-maturity (YTM). The primary measure of liquidity risk is the
spread between the bid price and the offer price quoted by a dealer. As these
products are new to the market they are likely to be exposed to liquidity risk.
Reinvestment Risk: Investments in REITs & InvITs may carry reinvestment risk as interest
rates prevailing on the interest or maturity due dates may differ from the original
coupon of the bond. Consequently, the proceeds may get invested at a lower rate.
Risk of lower than expected distributions: The distributions by the REIT or InvIT will be
based on the net cash flows available for distribution. The amount of cash available for
Axis Triple Advantage Fund 11
distribution principally depends upon the amount of cash that the REIT/ InvITs receives
as dividends or the interest and principal payments from portfolio assets.
The above are some of the common risks associated with investments in REITs & InvITs. There
can be no assurance that investment objectives will be achieved, or that there will be no
loss of capital. Investment results may vary substantially on a monthly, quarterly or annual
basis.
B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME
The Scheme shall have a minimum of 20 Investors and no single Investor shall account for
more than 25% of the corpus of the Scheme. The aforesaid conditions should be complied
with in each calendar quarter on an average basis. In case the Scheme does not have a
minimum of 20 Investors on an ongoing basis for each calendar quarter, the provisions of
Regulation 39(2)(c) of the SEBI (MF) Regulations would become applicable automatically
without any reference from SEBI and accordingly the Scheme shall be wound up and the
units would be redeemed at Applicable NAV. If there is a breach of the 25% limit by any
Investor over the quarter, a rebalancing period of one month would be allowed and
thereafter the Investor who is in breach of the rule shall be given 15 days’ notice to redeem
his exposure over the 25% limit. Failure on the part of the said investor to redeem his
exposure over the 25% limit within the aforesaid 15 days would lead to automatic
Redemption by the Mutual Fund at the Applicable NAV on the 15th day of the notice
period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in
this regard.
C. SPECIAL CONSIDERATIONS, if any
Prospective investors should study this Scheme Information Document and Statement
of Additional Information carefully in its entirety and should not construe the contents
hereof as advise relating to legal, taxation, financial, investment or any other matters
and are advised to consult their legal, tax, financial and other professional
advisors to determine possible legal, tax, financial or other considerations of subscribing
to or redeeming Units, before making a decision to invest/redeem/hold Units.
The Scheme related documents i.e. SID/ KIM/ SAI or the units of the Fund are not
registered in any jurisdiction including the United States of America nor in any
provincial/ territorial jurisdiction in Canada. The distribution of the Scheme related
document in certain jurisdictions may be restricted or subject to registration
requirements and, accordingly, persons who come into possession of the Scheme
related documents are required to inform themselves about, and to observe any such
restrictions. No persons receiving a copy of this Scheme related documents or any
accompanying application form in such jurisdiction may treat these Scheme related
documents or such application form as constituting an invitation to them to subscribe
for units, nor should they in any event use any such application form, unless in the
relevant jurisdiction such an invitation could lawfully be made to them and such
application form could lawfully be used without compliance with any registration or
other legal requirements. Accordingly the Scheme related documents do not constitute
an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is
not lawful or in which the person making such offer or solicitation is not qualified to do
so or to anyone to whom it is unlawful to make such offer or solicitation as per
applicable law. The AMC, Trustee or the Mutual Fund have not authorized any person
to issue any advertisement or to give any information or to make any representations,
either oral or written, other than that contained in this Scheme Information
Document or the Statement of Additional Information or as is provided by the AMC
in connection with this offering. Prospective investors are advised not to rely upon
any information or representation not incorporated in the Scheme Information
Document or Statement of Additional Information or provided by the AMC as having
been authorized by the Mutual Fund, the AMC or the Trustee.
Redemption due to change in the fundamental attributes of the Scheme or due
to any other reasons may entail tax consequences. The Trustee, AMC, Mutual Fund,
their directors or their employees shall not be liable for any such tax consequences that
may arise due to such redemptions.
The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable
for any of the tax consequences that may arise, in the event that the Scheme is
Axis Triple Advantage Fund 12
wound up for the reasons and in the manner provided in Statement of Additional
Information.
The tax benefits described in this Scheme Information Document and Statement of
Additional Information are as available under the present taxation laws and are
available subject to relevant conditions. The information given is included only for
general purpose and is based on advise received by the AMC regarding the law and
practice currently in force in India as on the date of this Scheme Information
Document and the Unit holders should be aware that the relevant fiscal rules or their
interpretation may change. As is the case with any investment, there can be no
guarantee that the tax position or the proposed tax position prevailing at the time of an
investment in the Scheme will endure indefinitely. In view of the individual nature of
tax consequences, each Unit holder is advised to consult his / her own professional tax
advisor.
The Mutual Fund may disclose details of the investor’s account and transactions
thereunder to those intermediaries whose stamp appears on the application form or
who have been designated as such by the investor. In addition, the Mutual Fund may
disclose such details to the bankers, as may be necessary for the purpose of
effecting payments to the investor. The Fund may also disclose such details to
regulatory and statutory authorities/bodies as may be required or necessary.
In case the AMC or its Sponsor or its Shareholders or their affiliates/associates or group
companies make substantial investment, either directly or indirectly in the Scheme
redemption of Units by these entities may have an adverse impact on the performance
of the Scheme. This may also affect the ability of the other Unit holders to redeem their
Units.
As the liquidity of the Scheme investments may sometimes be restricted by trading
volumes and settlement periods, the time taken by the Fund for Redemption of Units
may be significant in the event of an inordinately large number of Redemption Requests
or of a restructuring of the Scheme portfolio. In view of this, the Trustee has the right,
in its sole discretion, to limit redemptions under certain circumstances - please refer
to the paragraph “Suspension/Restriction on Redemption of Units of the Scheme”.
Pursuant tothe provisions of Prevention of Money Laundering Act, 2002, if after due
diligence, the AMC believes that any transaction is suspicious in nature as regards
money laundering, on failure to provide required documentation, information, etc. by
the Unit holder the AMC shall have absolute discretion to report such suspicious
transactions to FIU-IND and / or to freeze the folios of the investor(s), reject any
application(s) / allotment of Units.
D. DEFINITIONS
"AMC" / "Asset
Management
Company" /
"Investment
Manager"
Axis Asset Management Company Ltd., incorporated under the
provisions of the Companies Act, 1956 and approved by
Securities and Exchange Board of India to act as the Asset
Management Company for the scheme(s) of Axis Mutual Fund.
"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 time stamped.
“Book Closure” The time during which the Asset Management Company would
temporarily suspend Sale, redemption and Switching of Units.
“Business Day” A day other than:
(i) Saturday and Sunday;
(ii) A day on which the banks in Mumbai and/or RBI are closed
for business /clearing;
(iii) A day on which the National Stock Exchange of India Ltd.
and / or BSE Ltd., Mumbai are closed;
(iv) A day which is a public and /or bank Holiday at an Investor
Service Centre/Official Point of Acceptance where the
application is received;
(v) A day on which Sale / Redemption / Switching of Units is
suspended by the AMC;
(vi) A day on which normal business cannot be transacted due to
storms, floods, bandhs, strikes or such other events as the AMC
Axis Triple Advantage Fund 13
may specify from time to time.
The AMC reserves the right to declare any day as a Business Day
or otherwise at any or all Investor Service Centres/Official Points of
Acceptance.
"Business Hours" Presently 9.30 a.m. to 5.30 p.m. on any Business Day or such other
time as may be applicable from time to time.
"Custodian" A person who has been granted a certificate of registration to
carry on the business of custodian of securities under the
Securities and Exchange Board of India (Custodian of Securities)
Regulations 1996, which for the time being is Deutsche Bank AG.
"Depository" Depository as defined in the Depositories Act, 1996 (22 of 1996).
"Derivative" Derivative includes (i) a security derived from a debt instrument,
share, loan whether secured or unsecured, risk instrument or
contract for differences or any other form of security; (ii) a
contract which derives its value from the prices, or index of prices,
or underlying securities.
"Dividend" Income distributed by the Mutual Fund on the Units.
“Dividend Sweep
option” / “DSO”
Facility given to the Unit holders to automatically invest the
dividend by eligible source scheme into eligible target scheme of
the Mutual Fund.
"Equity Related
Instruments"
Includes convertible bonds and debentures, convertible
preference shares, warrants carrying the right to obtain equity
shares, equity derivatives and any other like instrument.
“Foreign Portfolio
Investor” / “FPI”
A person who satisfies the eligibility criteria prescribed under
regulation 4 of SEBI (Foreign Portfolio Investors) Regulations, 2014
and has been registered under Chapter II of these regulations,
which shall be deemed to be an intermediary in terms of the
provisions of the Act.
"Floating Rate Debt
Instruments"
Floating rate debt instruments are debt securities issued by
Central and / or State Government, corporates or PSUs with
interest rates that are reset periodically. The periodicity of the
interest reset could be daily, monthly, quarterly, half-yearly,
annually or any other periodicity that may be mutually agreed
with the issuer and the Fund. The interest on the instruments could
also be in the nature of fixed basis points over the benchmark gilt
yields.
“Foreign Securities” ADRs / GDRs/ equity / debt securities of overseas companies
listed on the recognized stock exchanges overseas or other
securities as may be specified and permitted by SEBI and/or RBI
from time to time.
"Gilts" / "Government
Securities"
Securities created and issued by the Central Government and/or
a State Government (including Treasury Bills) or Government
Securities as defined in the Public Debt Act, 1944, as amended or
re-enacted from time to time.
“GOI” Government of India
“Holiday” Holiday means the day(s) on which the banks (including the
Reserve Bank of India) are closed for business or clearing in
Mumbai or their functioning is affected due to a strike / bandh
call made at any part of the country or due to any other reason.
Infrastructure
Investment Trust” /
“InvIT
InvIT shall have the meaning assigned in clause (za) of sub-
regulation (1) of regulation 2 of the Securities and Exchange
Board of India (Infrastructure Investment Trusts) Regulations, 2014.
"Investment
Management
Agreement"
The agreement dated June 27, 2009 entered into between Axis
Mutual Fund Trustee Ltd. and Axis Asset Management Company
Ltd., as amended from time to time.
"Investor Service
Centres" / "ISCs"
Offices of Axis Asset Management Company Ltd. or such other
centres / offices as may be designated by the AMC from time to
time.
"Load" In the case of Redemption / Switch out of a Unit, the sum of
Axis Triple Advantage Fund 14
money deducted from the Applicable NAV on the Redemption /
Switch out (Exit Load) and in the case of Sale / Switch in of a Unit,
a sum of money to be paid by the prospective investor on the
Sale / Switch in of a Unit(Entry Load) in addition to the Applicable
NAV.
Presently, entry load cannot be charged by mutual fund
schemes.
Micro SIP Systematic Investment Plans (SIPs) where aggregate of
installments in a financial year i.e. April to March does not exceed
Rs. 50,000/- (per financial year per investor).
"Money Market
Instruments"
Includes commercial papers, commercial bills, treasury bills,
Government securities having an unexpired maturity upto one
year, call or notice money, certificate of deposit, usance bills and
any other like instruments as specified by the Reserve Bank of
India from time to time.
"Mutual Fund" / "the
Fund"
Axis Mutual Fund, a trust set up under the provisions of the Indian
Trusts Act, 1882.
"Net Asset Value" /
"NAV"
Net Asset Value per Unit of the Scheme, calculated in the
manner described in this Scheme Information Document or as
may be prescribed by the SEBI (MF) Regulations from time to time.
"NRI" A Non-Resident Indian or a Person of Indian Origin residing
outside India.
"Official Points of
Acceptance"
Places, as specified by AMC from time to time where application
for Subscription / Redemption / Switch will be accepted on
ongoing basis.
“Overseas Citizen of
India” / “OCI”
A person registered as an Overseas Citizen of India Cardholder
by the Central Government under section 7A of The Citizenship
Act, 1955.
"Person of Indian
Origin"
A citizen of any country other than Bangladesh or Pakistan, if (a)
he at any time held an Indian passport; or (b) he or either of his
parents or any of his grandparents was a citizen of India by virtue
of Constitution of India or the Citizenship Act, 1955 (57 of 1955); or
(c) the person is a spouse of an Indian citizen or person referred
to in sub-clause (a) or (b).
"Rating" Rating means an opinion regarding securities, expressed in the
form of standard symbols or in any other standardized manner,
assigned by a credit rating agency and used by the issuer of such
securities, to comply with any requirement of the
SEBI (Credit Rating Agencies) Regulations, 1999.
"RBI" Reserve Bank of India, established under the Reserve Bank of
India Act, 1934, (2 of 1934)
Real Estate
Investment Trust” /
“REIT”
REIT shall have the meaning assigned in clause (zm) of sub-
regulation 1 of regulation 2 of the Securities and Exchange Board
of India (Real Estate Investment Trusts) Regulations, 2014.
"Registrar and
Transfer Agent" /
“Registrar”
Karvy Fintech Pvt. Ltd., Hyderabad, currently acting as registrar to
the Scheme, or any other Registrar appointed by the AMC from
time to time.
"Redemption /
Repurchase"
Redemption of Units of the Scheme as permitted.
“Regulatory
Agency”
GOI, SEBI, RBI or any other authority or agency entitled to issue or
give any directions, instructions or guidelines to the Mutual Fund
“Repo” Sale/Purchase of Securities with simultaneous agreement to
repurchase / resell them at a later date.
"Statement of
Additional
Information" / "SAI"
The document issued by Axis Mutual Fund containing details of
Axis Mutual Fund, its constitution, and certain tax, legal and
general information. SAI is legally a part of the Scheme
Information Document.
"Sale / Subscription" Sale or allotment of Units to the Unit holder upon subscription by
the Investor / applicant under the Scheme.
"Scheme" Axis Triple Advantage Fund
Axis Triple Advantage Fund 15
“Scheme
Information
Document”
This document issued by Axis Mutual Fund, offering for
Subscription of Units of Axis Triple Advantage Fund (including
Plans and Options there under)
"SEBI" Securities and Exchange Board of India, established under the
Securities and Exchange Board of India Act, 1992.
"SEBI (MF)
Regulations" /
"Regulations"
Securities and Exchange Board of India (Mutual Funds)
Regulations, 1996, as amended from time to time.
"Short Selling" Short selling means selling a stock which the seller does not own
at the time of trade.
"Sponsor" Axis Bank Ltd.
"Switch" Redemption of a Unit in any Scheme (including the Plans /
options therein) of the Mutual Fund against purchase of a Unit in
another Scheme (including the Plans /options therein) of the
Mutual Fund, subject to completion of Lock-in Period, if any.
"Stock Lending" Lending of securities to another person or entity for a fixed period
of time, at a negotiated compensation in order to enhance
returns of the portfolio.
“Systematic
Investment Plan”/
“SIP”
A plan enabling investors to save and invest in the Scheme on a
periodic basis submitting post dated cheques / payment
instructions.
“Systematic Transfer
Plan” / “STP”
Facility given to the Unit holders to transfer sums on periodic basis
from one scheme to another schemes launched by the Mutual
Fund from time to time by giving a single instruction.
“Systematic
Withdrawal Plan” /
“SWP”
Facility given to the Unit holders to withdraw a specified sum of
money monthly/quarterly/ half yearly/ annually from his
investment in the Scheme.
“Tri Party Repos” Tri-party repo means a repo contract where a third entity (apart
from the borrower and lender), called a Tri-Party Agent, acts as
an intermediary between the two parties to the repo to facilitate
services like collateral selection, payment and settlement,
custody and management during the life of the transaction.
"Trust Deed" The Trust Deed dated June 27, 2009 made by and between Axis
Bank Ltd. and Axis Mutual Fund Trustee Ltd. thereby establishing
an irrevocable trust, called Axis Mutual Fund.
“Trustee” / “Trustee
Company”
Axis Mutual Fund Trustee Ltd., incorporated under the provisions
of the Companies Act, 1956 and approved by SEBI to act as
the trustee to the Scheme of the Mutual Fund.
"Unit" The interest of the Unit holder which consists of each Unit
representing one undivided share in the assets of the Scheme.
"Unit holder" /
"Investor"
A person holding Units in the Scheme.
INTERPRETATION
For all purposes of this Scheme Information Document, except as otherwise expressly
provided or unless the context otherwise requires:
all references to the masculine shall include the feminine and all references, to the
singular shall include the plural and vice-versa.
all references to "dollars" or "$" refer to United States Dollars and "Rs" refer to Indian
Rupees. A "crore" means "ten million" and a "lakh" means a "hundred thousand".
all references to timings relate to Indian Standard Time (IST).
References to a day are to a calendar day including a non Business Day.
Axis Triple Advantage Fund 16
E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY
It is confirmed that:
(i) The Scheme Information Document forwarded to SEBI is in accordance with the SEBI
(Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from
time to time.
(ii) All legal requirements connected with the launching of the Scheme as also the
guidelines, instructions, etc., issued by the Government and any other competent
authority in this behalf, have been duly complied with.
(iii) The disclosures made in the Scheme Information Document are true, fair and adequate
to enable the investors to make a well informed decision regarding investment in the
Scheme.
(iv) The intermediaries named in the Scheme Information Document and Statement of
Additional Information are registered with SEBI and their registration is valid, as on date.
Place: Mumbai Signed : Sd/-
Date: November 29, 2019 Name : Darshan Kapadia
Designation: Compliance Officer
Axis Triple Advantage Fund 17
II. INFORMATION ABOUT THE SCHEME
A. TYPE OF THE SCHEME
An open ended scheme investing in equity, debt and gold
B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME?
The Scheme seeks to generate long term capital appreciation by investing in a diversified
portfolio of equity and equity related instruments, fixed income instruments & gold
exchange traded funds.
C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS?
Under normal circumstances, the asset allocation pattern will be:
Instruments
Indicative allocations
(% of total assets)
Risk Profile
Minimum Maximum High/Medium/Low
Equity and Equity Related Instruments# 65 80 High
Debt* and Money Market Instruments# 10 30 Low to Medium
Gold Exchange Traded Funds 10 30 Medium
Units issued by REITs & InvITs 0 10 Medium to High
#Including derivatives instruments to the extent of 80% of the Net Assets of the scheme. The
Scheme may also use fixed income derivative instruments subject to the guidelines as may
be issued by SEBI and RBI and for such purposes as may be permitted from time to time. The
Scheme may also use equity derivatives as permitted vide SEBI circular no. DNPD/Cir
29/2005 dated September 14, 2005, SEBI circular no. DNPD/Cir-30/2006 dated January 20,
2006, SEBI circular no. SEBI/DNPD/Cir-31/2006 dated September 22, 2006, SEBI circular no.
Cir/IMD/DF/11/2010 dated August 18, 2010, SEBI circular no. SEBI/HO/IMD/DF2/CIR/
P/2017/109 dated September 27, 2017 and SEBI circular no.
SEBI/HO/IMD/DF2/CIR/P/2019/17 dated January 16, 2019. The Scheme may use derivatives
for such purposes as may be permitted by the Regulations, including for the purpose of
hedging and portfolio balancing and such other purposes as may be permitted, based on
the opportunities available and subject to guidelines issued by SEBI from time to time.
Derivative instruments include Interest Rate Swaps, Interest Rate Forwards, Interest Rate
Futures, Forward Rate Agreements, stock options, Index options, Stock & Index futures/stock
futures and any such other derivative instruments permitted by SEBI/RBI from time to time.
*Investment in Securitized debt (excluding foreign securitized debt), if undertaken, would
not exceed 30% of the net assets of the Scheme.
The cumulative gross exposure through equity, debt, units of gold exchange traded funds,
units issued by REITs & InvITs and derivative positions should not exceed 100% of the net
assets of the Scheme in accordance with SEBI circular no. Cir/IMD/DF/11/2010 dated
August 18, 2010.
Investment in Foreign Securities
The Scheme may seek investment opportunities in foreign securities including ADRs / GDRs
/ Foreign equity and debt securities subject to SEBI (MF) Regulations. Such Investment shall
not exceed 50% of the net assets of the Scheme.
Repo in Corporate debt securities
The Scheme may undertake repo transactions in corporate debt securities in accordance
with the directions issued by RBI and SEBI from time to time. Such investment shall be made
subject to the guidelines which may be prescribed by the Board of Directors of the Asset
Management Company and Trustee Company.
Stock Lending by the Fund
The Scheme shall adhere to the following limits should it engage in Stock Lending.
1. Not more than 25% of the net assets of the Scheme can generally be deployed in Stock
Lending.
Axis Triple Advantage Fund 18
2. Not more than 5% of the net assets of the Scheme can generally be deployed in Stock
Lending to any single counter party (as may be applicable).
Short Selling by the Fund
The Fund may engage in short selling of securities in accordance with the framework
relating to short selling and securities lending and borrowing specified by SEBI.
Investment in Short Term Deposits and mutual fund units
Pending deployment of the funds in securities in terms of investment objective of the
Scheme, the AMC may park the funds of the Scheme in short term deposits of the
Scheduled Commercial Banks, subject to the guidelines issued by SEBI vide its circular
dated April 16, 2007, as may be amended from time to time. Pending deployment, such
funds may also be invested in units of debt and liquid mutual fund schemes.
The Scheme retains the flexibility to invest across all the securities in the equity, debt and
Money Markets Instruments and mutual fund units. The portfolio may hold cash depending
on the market condition.
Subject to the Regulations, the asset allocation pattern indicated above may change from
time to time, keeping in view market conditions, market opportunities, applicable
regulations and political and economic factors. It must be clearly understood that the
percentages stated above are only indicative and not absolute. These proportions can
vary substantially depending upon the perception of the fund manager; the intention
being at all times to seek to protect the interests of the Unit holders. Such changes in the
investment pattern will be for short term and for defensive considerations only. In the event
of deviations, the fund manager will endeavour to carry out rebalancing within one month.
Where the portfolio is not rebalanced within one month, justification for the same shall be
placed before the Investment Review Committee and reasons for the same shall be
recorded in writing. The Investment Review committee shall then decide on the course of
action. However, at all times the portfolio will adhere to the overall investment objectives
of the Scheme.
Axis Triple Advantage Fund, an open ended scheme investing in equity, debt and gold
fund is a different scheme offered by Axis Mutual Fund and is not a minor modification of
any other existing scheme/product of Axis Mutual Fund. Further, the existing products of Axis
Mutual Fund are either debt, liquid or equity funds and hence the 'hybrid fund' under
consideration cannot be compared with any other existing schemes.
Axis Triple Advantage Fund 19
Data as on October 31, 2019 (in INR crores)
Name of the
existing
scheme
Asset Allocation Pattern
(Under normal circumstances)
Primary Investment Objective & Investment
Strategy
Differentiatio
n AUM
No. of
Folios
Axis
Dynamic
Equity Fund
Instruments Normal
Allocation
(% of net
assets)
Risk
Profil
e
Primary Investment Objective
To generate capital appreciation by investing
in a portfolio of equity or equity linked securities
while secondary objective is to generate
income through investments in debt and
money market instruments. It also aims to
manage risk through active asset allocation.
However, there is no assurance or guarantee
that the investment objective of the Scheme
will be achieved. The Scheme does not assure
or guarantee any returns.
Investment Strategy:
The scheme has a dual objective of generating
capital appreciation by investing in equity and
equity related securities as well as generating
income by investing in debt and money market
securities, while attempting to manage risk from
the market through active asset allocation. In
order to achieve this process, the scheme will
follow a top-down and bottom-up strategy. The
top-down process will lead to the active
ongoing asset allocation decision between
equity and debt and the bottom up process
would lead to construction of the portfolio using
specific securities.
The AMC has built a proprietary in-house
quantitative model to determine the top-down
dynamic asset allocation for the fund. The AMC
has built a proprietary in-house quantitative
An open
ended
dynamic
asset
allocation
fund
2,146.74 87,209
Min Max
Equity and Equity
related securities
65 100 High
Equity Derivatives 0 45 High
Debt & Money
Market
Instruments
including cash &
cash equivalent
0 35 Low
to
Medi
um
Units issued by
REITs & InvITs
0 10 Medi
um
to
High
Axis Triple Advantage Fund 20
approach to guide the asset allocation
decision. The quantitative approach looks at
equity markets across three parameters –
momentum, volatility and valuations – to
decide the appropriate allocation to the same.
The allocation to debt is the residual number
that is arrived at after deciding the equity
allocation. The asset allocation decision is
reviewed on an ongoing basis and is
dynamically linked to movements in market
variables.
Axis
Arbitrage
Fund
Instruments Normal
Allocation
(% of net
assets)
Risk
Profil
e
Primary Investment Objective:
To generate income through low volatility
absolute return strategies that take advantage
of opportunities in the cash and the derivative
segments of the equity markets including the
arbitrage opportunities available within the
derivative segment, by using other derivative
based strategies and by investing the balance
in debt and money market instruments.
However, there is no assurance or guarantee
that the investment objective of the Scheme
will be achieved. The Scheme does not assure
or guarantee any returns.
Investment Strategy:
The Scheme will seek to achieve its investment
objective primarily by employing various
strategies which seek to exploit absolute returns
opportunities in equity and derivative markets.
In case such opportunities are not available,
the scheme will invest the corpus in debt and
money market instruments.
The equity and derivative markets have
An open
ended
scheme
investing in
arbitrage
opportunities
2,541.64 59,613
Min Max
Equities, equity
related
instruments
(unhedged)
0 10 High
Equities, equity
related
instruments and
derivatives
including index
futures, stock
futures, index
options, & stock
options, etc. as
part of hedged /
arbitrage
exposure
65 90 Medi
um
to
High
Debt and Money
market
instruments
10 35 Low
to
medi
Axis Triple Advantage Fund 21
(including
investments in
securitized debt)
um experienced enormous growth in India in the
last few years. The market provides the investor
the ability to derive returns from the various
strategies enumerated below. The market is not
always efficient to the extent of mispricing in
the derivative market and the underlying cash
market. These techniques differ in that each
method attempts to exploit a different form of
imperfection in the underlying equity, debt and
derivatives market and thus expose the investor
to different forms of risk.
The strategies the Fund may adopt could be as
under. The list is not exhaustive and the Fund
could use similar strategies and any other
strategies as available in the markets.
Axis Equity
Saver Fund
Instruments Normal
Allocation
(% of net
assets)
Risk
Profil
e
Primary Investment Objective:
The investment objective of the scheme is to
provide capital appreciation and income
distribution to the investors by using equity and
equity related instruments, arbitrage
opportunities, and investments in debt and
money market instruments. However, there is no
assurance or guarantee that the investment
objective of the Scheme will be achieved. The
Scheme does not assure or guarantee any
returns.
Investment Strategy:
The Scheme has a dual objective of providing
capital appreciation and income distribution to
the investors by using equity and equity related
instruments, arbitrage opportunities, and
investments in debt and money market
instruments.
An Open
Ended
Scheme
investing in
equity,
arbitrage
and debt
801.59 26,617
Min Max
Equity and Equity
related securities
Of which
65 80 High
i) Equities &
equity related
instruments
(unhedged)
20 45 High
ii) Equities,
equity related
instruments and
derivatives
including index
futures, stock
futures, index
20 60 Medi
um
to
High
Axis Triple Advantage Fund 22
options, & stock
options, etc. as
part of hedged /
arbitrage
exposure
The scheme seeks to benefit from the concept
of asset allocation. The aim of asset allocation is
to provide superior risk adjusted returns through
diversification across various asset classes like
equity, fixed income & arbitrage which have
historically had low correlation with each other.
Debt & Money
Market
Instruments
20 35 Low
to
Medi
um
Units issued by
REITs & InvITs
0 10 Medi
um
to
High
Axis Triple
Advantage
Fund
Instruments Normal
Allocation
(% of net
assets)
Risk
Profil
e
Primary Investment Objective:
The Scheme seeks to generate long term
capital appreciation by investing in a diversified
portfolio of equity and equity related
instruments, fixed income instruments & gold
Exchange Traded Funds.
Investment Strategy:
The Scheme seeks to generate long term
capital appreciation by investing in a diversified
portfolio of equity, fixed income & gold
exchange traded funds.
The scheme seeks to benefit from the concept
of asset allocation. The aim of asset allocation is
to provide superior risk adjusted returns through
diversification across various asset classes like
equity, fixed income & gold which have
An Open-
ended
hybrid fund
239.88 33,531
Min Max
Equity and Equity
Related
Instruments
65 80 High
Debt and Money
Market
Instruments
10 30 Low
to
Medi
um
Gold Exchange
Traded Funds
10 30 Medi
um
Units issued by
REITs & InvITs
0 10 Medi
um
to
High
Axis Triple Advantage Fund 23
historically had low correlation with each other.
Equity and Equity Related Instruments:
The equity allocation will be managed actively.
The focus would be to build a diversified
portfolio of strong growth companies, reflecting
our most attractive investment ideas, at all
points of time.
The portfolio will be built utilising a bottom-up
stock selection process, focusing on
appreciation potential of individual stocks from
a fundamental perspective. The AMC employs
a "Fair value" based research process to
analyse the appreciation potential of each
stock in its universe (Fair value is a measure of
the intrinsic worth of a company). The universe
of stocks is carefully selected to include
companies having a robust business models
and enjoying sustainable competitive
advantages as compared to their competitors.
The Fund will have the flexibility to invest across
the market capitalization spectrum.
The Fund by utilizing a holistic risk management
strategy will endeavor to manage risks
associated with investing in equity markets. The
Fund has identified the following risks and
designed risk management strategies, which
are embedded in the investment process to
manage these risks
i) Quality Risk - Risk of investing in unsustainable
/ weak companies.
ii) Price Risk - Risk of overpaying for a company
iii) Liquidity Risk - High Impact cost of entry and
Axis Triple Advantage Fund 24
exit
iv) Volatility Risk - Volatility in price due to
company or portfolio specific factors
v) Event Risk - Price risk due to a company /
sector specific or market event.
Fixed Income:
The Scheme proposes to invest in a diversified
portfolio of high quality debt and money
market instruments to generate regular income.
The fund manager will allocate the assets of the
scheme taking into consideration the prevailing
interest rate scenario & the liquidity of the
different instruments.
The portfolio duration and credit exposures will
be decided based on a thorough research of
the general macroeconomic condition,
political and fiscal environment, systemic
liquidity, inflationary expectations, corporate
performance and other economic
considerations. The fund manager will keep in
mind the yield structure of different asset
classes (e.g. the sovereign yield curve and the
corporate bond yield curve) as well as the kinks
within a particular yield curve (e.g. the different
points of the sovereign yield curve) while
making investment decisions.
Gold Exchange Traded Funds:
The Scheme will also invest in gold ETFs as gold,
historically, has shown a low correlation with
other asset classes like equity and debt making
it a good asset for diversifying the overall
portfolio.
Axis Triple Advantage Fund 25
Axis Regular
Saver Fund
Instruments Normal
Allocation
(% of net
assets)
Risk
Profil
e
Primary Investment Objective:
The Scheme seeks to generate regular income
through investments in debt & money market
instruments, along with capital appreciation
through limited exposure to equity and equity
related instruments.
Investment Strategy:
The Scheme seeks to generate regular income
through investments in debt & money market
instruments, along with capital appreciation
through equity and equity related instruments.
Within equities and fixed income, the portfolio
would be actively managed to optimize returns
within the respective asset class.
Fixed Income Strategy:
The Scheme proposes to invest in a diversified
portfolio of high quality debt and money
market instruments to generate regular income.
The fund manager will allocate the assets of the
scheme taking into consideration the prevailing
interest rate scenario & the liquidity of the
different instruments.
The portfolio duration and credit exposures will
be decided based on a thorough research of
the general macroeconomic condition,
political and fiscal environment, systemic
liquidity, inflationary expectations, corporate
performance and other economic
considerations. The fund manager will keep in
mind the yield structure of different asset
classes (e.g. the sovereign yield curve and the
corporate bond yield curve) as well as the kinks
within a particular yield curve (e.g. the different
An open
ended
hybrid
scheme
investing
predominantl
y in debt
instruments
214.80 12,695
Min Max
Debt* and
Money Market
Instruments#
75 90 Low
to
Medi
um
Equity and Equity
related
instruments#
10 25 High
Units issued by
REITs & InvITs
0 10 Medi
um
to
High
Axis Triple Advantage Fund 26
points of the sovereign yield curve) while
making investment decisions.
Equity related Strategy:
The equity allocation will be managed actively.
The focus would be to build a diversified
portfolio of strong growth companies, reflecting
our most attractive investment ideas, at all
points of time.
The portfolios will be built utilising a bottom-up
stock selection process, focusing on
appreciation potential of individual stocks from
a fundamental perspective. The AMC employs
a "Fair value" based research process to
analyse the appreciation potential of each
stock in its universe (Fair value is a measure of
the intrinsic worth of a company). The universe
of stocks is carefully selected to include
companies having a robust business models
and enjoying sustainable competitive
advantages as compared to their competitors.
The Scheme will have the flexibility to invest
across the market capitalisation spectrum.
Axis Equity
Hybrid Fund
Instruments Normal
Allocation
(% of net
assets)
Risk
Profil
e
Primary Investment Objective:
To generate long term capital appreciation
along with current income by investing in a mix
of Equity and Equity related instruments, debt
instruments and money market instruments.
Investment Strategy:
The scheme aims to generate long term capital
appreciation along with current income by
investing in a mix of Equity and Equity related
securities, debt securities and money market
An open
ended
hybrid
scheme
investing
predominantl
y in equity
and equity
related
instruments
1,824.91 67,638
Min Max
Equity and Equity
related
instruments#
65 80 High
Debt* and
Money Market
Instruments#
20 35 Low
to
Medi
Axis Triple Advantage Fund 27
um instruments.
Fixed Income Strategy:
The scheme proposes to invest in a diversified
portfolio of debt & money market instruments to
generate income.
The portfolio duration and credit exposures will
be decided based on a thorough research of
the general macroeconomic condition,
political and fiscal environment, systematic
liquidity, inflationary expectations, corporate
performance and other economic
considerations. The fund manager will keep in
mind the yield structure of different asset
classes as well as the kinks within a particular
yield curve while making investment decisions.
Equity and Equity Related Strategy:
The equity allocation will be managed actively.
The focus would be to build a diversified
portfolio of strong growth companies, reflecting
our most attractive investment ideas, at all
points of time. The portfolio will be built utilizing
a bottom-up stock selection process, focusing
on appreciation potential of individual stocks
from a fundamental perspective. The AMC
employs a ""Fair value"" based research process
to analyze the appreciation potential of each
stock in its universe (Fair value is a measure of
the intrinsic worth of a company). The universe
of stocks is carefully selected to include
companies having a robust business models
and enjoying sustainable competitive
advantages as compared to their competitors.
The scheme by utilizing a holistic risk
Units issued by
REITs & InvITs
0 10 Medi
um
to
High
Axis Triple Advantage Fund 28
management strategy will endeavor to
manage risks associated with investing in equity
markets. The scheme has identified the
following risks and designed risk management
strategies, which are embedded in the
investment process to manage these risks:
i. Quality Risk - Risk of investing in unsustainable
/ weak companies.
ii. Price Risk - Risk of overpaying for a company
iii. Liquidity Risk - High Impact cost of entry and
exit
iv. Concentration risk - Invest across the market
capitalization spectrum and industries/ sectors
v. Volatility Risk - Volatility in price due to
company or portfolio specific factors
vi. Event Risk - Price risk due to a company /
sector specific or market event
Axis Triple Advantage Fund 29
D. WHERE WILL THE SCHEME INVEST?
The corpus of the Scheme will be invested in Equity & Equity Related Instruments, Debt
Instruments, Money Market Instruments, units of Gold Exchange Traded Funds and other
permitted securities which will include but not limited to:
Equity and Equity Related Instruments:
1. Equity share is a security that represents ownership interest in a company.
2. Equity Related Instruments are securities which give the holder of the security right to
receive Equity Shares on pre agreed terms. It includes convertible bonds, convertible
debentures, equity warrants, convertible preference shares, etc.
3. Foreign Equity and Equity Related Instrument as may be permitted by SEBI/RBI from time
to time.
4. Equity Derivatives are financial instruments, generally traded on an exchange, the price
of which is directly dependent upon (i.e., “derived from”) the value of equity shares or
equity indices. Derivatives involve the trading of rights or obligations based on the
underlying, but do not directly transfer property.
Futures:
Futures are exchange-traded contracts to sell or buy financial instruments for future delivery
at an agreed price. There is an agreement to buy or sell a specified quantity of financial
instrument on a designated future date at a price agreed upon by the buyer and seller at
the time of entering into a contract. To make trading possible, the exchange specifies
certain standardized features of the contract. A futures contract involves an obligation on
both the parties to fulfill the terms of the contract.
SEBI has permitted futures contracts on indices and individual stocks with maturity of 1
month, 2 months and 3 months on a rolling basis. The futures contracts are settled on last
Thursday (or immediately preceding trading day if Thursday is a trading holiday) of each
month. Currently, the futures are settled in cash. The final settlement price is the closing
price of the underlying stock(s)/index.
Options:
Option is a contract which provides the buyer of the option (also called holder) the right,
without the obligation, to buy or sell a specified asset at the agreed price on or upto a
particular date. For acquiring this privilege, the buyer pays premium (fee) to the seller. The
seller on the other hand has the obligation to buy or sell specified asset at the agreed price
and for this obligation he receives premium. The premium is determined considering
number of factors such as the market price of the underlying asset/security, number of days
to expiry, risk free rate of return, strike price of the option and the volatility of the underlying
asset.
Option contracts are of two types viz:
Call Option - The option that gives the buyer the right but not the obligation to buy
specified quantity of the underlying asset at the strike price is a call option. The buyer of the
call option (known as the holder of call option) can call upon the seller of the option (writer
of the option) and buy from him the underlying asset at the agreed price at any time on or
before the expiry of the option.
The seller (writer of the option) on the other hand has the obligation to sell the underlying
asset if the buyer of the call option decides to exercise his option to buy.
Put Option – The option that gives the buyer the right but not the obligation to sell is called
put option. A Put option gives the holder (buyer) the right to sell specified quantity of the
underlying asset at the strike price. The seller of the put option (one who is short Put)
however, has the obligation to buy the underlying asset at the strike price if the buyer
decides to exercise his option to sell.
There are two kind of options based on the date of exercise of right. The first is the European
Option which can be exercised only on the maturity date. The second is the American
Option which can be exercised on or before the maturity date.
Axis Triple Advantage Fund 30
Debt Instruments & Money Market Instruments:
Certificate of Deposit Certificate of Deposit (CD) is a negotiable money market instrument
issued by scheduled commercial banks and select all-India Financial Institutions that have
been permitted by the RBI to raise short term resources. The maturity period of CDs issued
by the Banks is between 7 days to one year, whereas, in case of FIs, maturity is one year to 3
years from the date of issue.
Commercial Paper
Commercial Paper (CP) is an unsecured negotiable money market instrument issued in the
form of a promissory note, generally issued by the corporates, primary dealers and all India
Financial Institutions as an alternative source of short term borrowings. CP is traded in
secondary market and can be freely bought and sold before maturity.
Treasury Bill
Treasury Bills (T-Bills) are issued by the Government of India to meet their short term
borrowing requirements. T-Bills are issued for maturities of 14 days, 91 days, 182 days and 364
days. The Scheme may also invest in Cash Management Bill (CMB) issued by the
Government of India to meet their short term borrowing requirements. CMB are generally
issued for maturities of less than 91 days.
Commercial Usance Bills
Bill (bills of exchange/promissory notes of public sector and private sector corporate
entities) Rediscounting, usance bills and commercial bills.
Repos
Repo (Repurchase Agreement) or Reverse Repo is a transaction in which two parties agree
to sell and purchase the same security with an agreement to purchase or sell the same
security at a mutually decided future date and price. The transaction results in
collateralized borrowing or lending of funds. Presently in India, corporate debt securities,
Government Securities, State Government Securities and T-Bills are eligible for Repo/
Reverse Repo.
Tri-party repo means a repo contract where a third entity (apart from the borrower and
lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the
repo to facilitate services like collateral selection, payment and settlement, custody and
management during the life of the transaction.
The Scheme may undertake repo or reverse repo transactions in accordance with the
directions issued by RBI and SEBI from time to time. Such investment shall be made subject
to the guidelines which may be prescribed by the Board of Directors of the Asset
Management Company and Trustee Company.
Securities created and issued by the Central and State Governments as may be permitted
by RBI, securities guaranteed by the Central and State Governments (including but not
limited to coupon bearing bonds, zero coupon bonds and treasury bills). State Government
securities (popularly known as State Development Loans or SDLs) are issued by the
respective State Government in co-ordination with the RBI.
Non Convertible Debentures and Bonds
Non convertible debentures as well as bonds are securities issued by companies /
institutions promoted / owned by the Central or State Governments and statutory bodies
which may or may not carry a Central/State Government guarantee, Public and private
sector banks, all India Financial Institutions and Private Sector Companies. These instruments
may be secured or unsecured against the assets of the Company and generally issued to
meet the short term and long term fund requirements. These instruments may have fixed or
floating rate coupon.
The Scheme may also invest in the non convertible part of convertible debt securities.
Axis Triple Advantage Fund 31
Real Estate Investment Trust (REITs) & Infrastructure Investment Trust (InvIT):
REIT/ InvITs is a trust which holds real estate or infrastructure assets respectively which is
managed by an investment manager. The unitholders in the trust have proportional interest
in the underlying holdings of the trust.
Securitized Assets:
Securitization is a structured finance process which involves pooling and repackaging of
cashflow producing financial assets into securities that are then sold to investors. They are
termed as Asset Backed Securities (ABS) or Mortgage Backed Securities (MBS). ABS are
backed by other assets such as credit card, automobile or consumer loan receivables,
retail installment loans or participations in pools of leases. Credit support for these securities
may be based on the underlying assets and/or provided through credit enhancements by
a third party. MBS is an asset backed security whose cash flows are backed by the principal
and interest payments of a set of mortgage loans. Such Mortgage could be either
residential or commercial properties. ABS/MBS instrument reflect the undivided interest in
the underlying assets and do not represent the obligation of the issuer of ABS/MBS or the
originator of underlying receivables. Securitization often utilizes the services of SPV.
Pass through Certificate (PTC)
Pay through or other Participation Certificates represents beneficial interest in an underlying
pool of cash flows. These cash flows represent dues against single or multiple loans
originated by the sellers of these loans. These loans are given by banks or financial
institutions to corporates. PTCs may be backed, but not exclusively, by receivables of
personal loans, car loans, two wheeler loans and other assets subject to applicable
regulations.
The following are certain additional disclosures w.r.t. investment in securitized debt:
1. How the risk profile of securitized debt fits into the risk appetite of the Scheme
Securitized debt is a form of conversion of normally non-tradable loans to transferable
securities. This is done by assigning the loans to a special purpose vehicle (a trust), which in
turn issues Pass-Through-Certificates (PTCs). These PTCs are transferable securities with fixed
income characteristics. The risk of investing in securitized debt is similar to investing in debt
securities. However it differs in two respects.
Typically the liquidity of securitized debt is less than similar debt securities. For certain types
of securitized debt (backed by mortgages, personal loans, credit card debt, etc.), there is
an additional pre-payment risk. Pre-payment risk refers to the possibility that loans are
repaid before they are due, which may reduce returns if the re-investment rates are lower
than initially envisaged.
Because of these additional risks, securitized debt typically offers higher yields than debt
securities of similar credit rating and maturity. If the fund manager judges that the
additional risks are suitably compensated by the higher returns, he may invest in securitized
debt up to the limits specified in the asset allocation table above.
2. Policy relating to originators based on nature of originator, track record, NPAs, losses in
earlier securitized debt, etc.
The originator is the person who has initially given the loan. The originator is also usually
responsible for servicing the loan (i.e. collecting the interest and principal payments). An
analysis of the originator is especially important in case of retail loans as this affects the
credit quality and servicing of the PTC. The key risk is that of the underlying assets and not of
the originator. For example, losses or performance of earlier issuances does not indicate
quality of current series. However such past performance may be used as a guide to
evaluate the loan standards, servicing capability and performance of the originator.
Originators may be: Banks, Non-Banking Finance Companies, Housing Finance Companies,
etc. The fund manager / credit analyst evaluates originators based on the following
parameters
Track record
Willingness to pay, through credit enhancement facilities etc.
Ability to pay
Axis Triple Advantage Fund 32
Business risk assessment, wherein following factors are considered:
- Outlook for the economy (domestic and global)
- Outlook for the industry
- Company specific factors
In addition, a detailed review and assessment of rating rationale is done including
interactions with the originator as well as the credit rating agency.
The following additional evaluation parameters are used as applicable for the originator /
underlying issuer for pool loan and single loan securitization transactions:
Default track record/ frequent alteration of redemption conditions / covenants
High leverage ratios of the ultimate borrower (for single-sell downs) – both on a
standalone basis as well on a consolidated level/ group level
Higher proportion of reschedulement of underlying assets of the pool or loan, as the
case may be
Higher proportion of overdue assets of the pool or the underlying loan, as the case may
be
Poor reputation in market
Insufficient track record of servicing of the pool or the loan, as the case may be.
3. Risk mitigation strategies for investments with each kind of originator
An analysis of the originator is especially important in case of retail loans as the size and
reach affects the credit quality and servicing of the PTC. In addition, the quality of the
collection process, infrastructure and follow-up mechanism; quality of MIS; and credit
enhancement mechanism are key risk mitigants for the better originators / servicers.
In case of securitization involving single loans or a small pool of loans, the credit risk of the
underlying borrower is analyzed. In case of diversified pools of loans, the overall
characteristic of the loans is analyzed to determine the credit risk. The credit analyst looks at
ageing (i.e. how long the loan has been with the originator before securitization) as one
way of evaluating the performance potential of the PTC. Securitization transactions may
include some risk mitigants (to reduce credit risk). These may include interest subvention
(difference in interest rates on the underlying loans and the PTC serving as margin against
defaults), overcollateralization (issue of PTCs of lesser value than the underlying loans, thus
even if some loans default, the PTC continues to remain protected), presence of an equity
/ subordinate tranche (issue of PTCs of differing seniority when it comes to repayment - the
senior tranches get paid before the junior tranche) and / or guarantees.
4. The level of diversification with respect to the underlying assets, and risk mitigation
measures for less diversified investments
In case of securitization involving single loans or a small pool of loans, the credit risk of the
borrower is analyzed. In case of diversified pools of loans, the overall characteristic of the
loans is analyzed to determine the credit risk.
The credit analyst looks at ageing (i.e. how long the loan has been with the originator
before securitization) as one way of judging the performance potential of the PTC.
Additional risk mitigants may include interest subvention, over collateralization, presence of
an equity / subordinate tranche and / or guarantees. The credit analyst also uses analyses
by credit rating agencies on the risk profile of the securitized debt.
Currently, the following parameters are used while evaluating investment decision relating
to a pool securitization transaction. The Investment Review Committee may revise the
parameters from time to time.
Characteristics/T
ype of Pool
Mortg
age
Loan
Commercial
Vehicle and
Construction
Equipment
CAR 2
wheele
rs
Micro
Financ
e
Pools *
Person
al
Loans
*
Singl
e Sell
Dow
ns
Othe
rs
Approximate
Average
maturity (in
Up to
10
years
Up to 3
years
Up to
3
years
Up to 3
years
NA NA Refer
Note
1
Refer
Note
2
Axis Triple Advantage Fund 33
Characteristics/T
ype of Pool
Mortg
age
Loan
Commercial
Vehicle and
Construction
Equipment
CAR 2
wheele
rs
Micro
Financ
e
Pools *
Person
al
Loans
*
Singl
e Sell
Dow
ns
Othe
rs
Months)
Collateral margin
(including cash,
guarantees,
excess interest
spread,
subordinate
tranche)
>10% >10% >10% >10% NA NA “ “
Average Loan to
Value Ratio
<90% <80% <80% <80% NA NA “ “
Average
seasoning of the
Pool
>3
mont
hs
>3 months >3
mont
hs
>3
months
NA NA “ “
Maximum single
exposure range
<1% <1% <1% <1% NA NA “ “
Average single
exposure range
%
<1% <1% <1% <1% NA NA “ “
* Currently, the Scheme will not invest in these types of securitized debt
Note 1: In case of securitization involving single loans or a small pool of loans, the credit risk
of the borrower is analyzed. The investment limits applicable to the underlying borrower are
applied to the single loan sell-down.
Note 2: Other investments will be decided on a case-to-case basis
The credit analyst may consider the following risk mitigating measures in his analysis of the
securitized debt:
Size of the loan
Average original maturity of the pool
Loan to Value Ratio
Average seasoning of the pool
Default rate distribution
Geographical Distribution
Credit enhancement facility
Liquid facility
Structure of the pool
5. Minimum retention period of the debt by originator prior to securitization
Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the
"true sale" criteria including credit enhancement and liquidity enhancements. In addition,
RBI has proposed minimum holding period of between nine and twelve months for assets
before they can be securitized. The minimum holding period depends on the tenor of the
securitization transaction. The Scheme will invest in securitized debts that are compliant with
the laws and regulations.
6. Minimum retention percentage by originator of debts to be securitized
Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the
"true sale" criteria including credit enhancement and liquidity enhancements, including
maximum exposure by the originator in the PTCs. In addition, RBI has proposed minimum
retention requirement of between five and ten percent of the book value of the loans by
the originator. The minimum retention requirement depends on the tenor and structure of
the securitization transaction. The Fund will invest in securitized debts that are compliant
with the laws and regulations.
Axis Triple Advantage Fund 34
7. The mechanism to tackle conflict of interest when the mutual fund invests in securitized
debt of an originator and the originator in turn makes investments in that particular
scheme of the fund
The key risk is securitized debt relates to the underlying borrowers and not the originator. In
a securitization transaction, the originator is the seller of the debt(s) and the fund is the
buyer. However, the originator is also usually responsible for servicing the loan (i.e.
collecting the interest and principal payments). As the originators may also invest in the
scheme, the fund manager shall ensure that the investment decision is based on
parameters as set by the Investment Review Committee (IRC) of the Asset Management
Company and IRC shall review the same at regular interval.
8. The resources and mechanism of individual risk assessment with the AMC for monitoring
investment in securitized debt
The fund management team including the credit analyst has the experience to analyze
securitized debt. In addition, credit research agencies provide analysis of individual
instruments and pools. On an on-going basis (typically monthly) the servicer provides reports
regarding the performance of the pool. These reports would form the base for ongoing
evaluation where applicable. In addition, rating reports indicating rating changes would be
monitored for changes in rating agency opinion of the credit risk.
Debt derivative instruments
Interest Rate Swap
An Interest Rate Swap (IRS) is a financial contract between two parties exchanging or
swapping a stream of interest payments for a “notional principal” amount on multiple
occasions during a specified period. Such contracts generally involve exchange of a “fixed
to floating” or “floating to fixed rate” of interest. Accordingly, on each payment date that
occurs during the swap period, cash payments based on fixed/ floating and floating rates
are made by the parties to one another.
Forward Rate Agreement
A Forward Rate Agreement (FRA) is a financial contract between two parties to exchange
interest payments for a ‘notional principal’ amount on settlement date, for a specified
period from start date to maturity date. Accordingly, on the settlement date, cash
payments based on contract (fixed) and the settlement rate, are made by the parties to
one another. The settlement rate is the agreed bench-mark/ reference rate prevailing on
the settlement date.
Interest Rate Futures:
A futures contract is a standardized, legally binding agreement to buy or sell a commodity
or a financial instrument in a designated future month at a market determined price (the
futures price) by the buyer and seller. The contracts are traded on a futures exchange. An
Interest Rate Future is a futures contract with an interest bearing instrument as the
underlying asset.
Characteristics of Interest Rate Futures
1. Obligation to buy or sell a bond at a future date
2. Standardized contract.
3. Exchange traded
4. Physical settlement
5. Daily mark to market
Investment in Gold Exchange Traded Funds (Gold ETFs)
Gold Exchange Traded Funds are open ended scheme(s) that invest primarily in gold or
gold related instruments. As per the current SEBI MF Regulations, Gold ETFs are allowed to
invest in gold. Further the Gold ETFs can invest in gold related instruments only after such
instruments are specified by SEBI. The units of ETFs are listed on the stock exchange(s).
Further, authorized participants and large investors can subscribe and redeem the units of
Gold ETFs in creation unit size as specified by respective scheme(s).
Foreign Securities
The Scheme may also invest in suitable investment avenues in foreign securities in overseas
financial markets for the purpose of diversification, commensurate with the Scheme
Axis Triple Advantage Fund 35
objectives and subject to necessary stipulations by SEBI / RBI. Towards this end, the Mutual
Fund may also appoint overseas investment advisors and other service providers, to the
extent permissible under the Regulations.
The Scheme may, with the approval of SEBI / RBI, where required invest in:
ADRs (American Depository Receipts)/ GDRs (Global Depository Receipts) issued by
Indian or foreign companies
Equity of overseas companies listed on recognized stock exchanges overseas
Initial and follow on public offerings for listing at recognized stock exchanges overseas
Foreign debt securities in the countries with fully convertible currencies, short term as
well as long term debt instruments with rating not below investment grade by
accredited/registered credit rating agencies
Money market instruments rated not below investment grade
Repos in the form of investment, where the counterparty is rated not below investment
grade; repos shall not however, involve any borrowing of funds by the mutual funds
Government securities where the countries are rated not below investment grade
Derivatives traded on recognized stock exchanges overseas only for hedging and
portfolio balancing with underlying as securities
Short term deposits with banks overseas where the issuer is rated not below investment
grade
Units/securities issued by overseas mutual funds or unit trusts registered with overseas
regulators and investing in (a) aforesaid securities, or (b) unlisted overseas securities (not
exceeding 10% of their net assets).
Note: The Scheme will not invest in foreign securitized debt.
As per SEBI circular no. SEBI/IMD/CIR No.7/104753/07 dated September 26, 2007, mutual
funds can make overseas investments subject to a maximum of US $300 million or such limits
as may be prescribed by SEBI from time to time. Subject to the approval of RBI / SEBI and
conditions as may be prescribed by them, the Mutual Fund may open one or more foreign
currency accounts abroad either directly, or through the custodian/sub-custodian, to
facilitate investments and to enter into/deal in forward currency contracts,
currency futures, interest rate futures / swaps, currency options for the purpose of hedging
the risks of assets of a portfolio or for its efficient management. However, the use of such
instruments shall be as permitted from time to time. All the requirement of the SEBI circular
dated September 26, 2007, would be adhered to by the AMC for investment in foreign
securities.
Investment in overseas securities shall be made in accordance with the requirements
stipulated by SEBI and RBI from time to time.
Units of Mutual Fund schemes
The Scheme may invest in other schemes managed by the AMC or in the schemes of any
other mutual funds in conformity with the investment objective of the Scheme and in terms
of the prevailing SEBI (MF) Regulations.
Short Term Deposits
Pending deployment of funds as per the investment objective of the Scheme, the funds
may be parked in short term deposits of the Scheduled Commercial Banks, subject to
guidelines and limits specified by SEBI. The funds may also be parked in units of debt and
liquid mutual fund schemes.
The securities / instruments mentioned above and such other securities the Scheme is
permitted to invest in could be listed, unlisted, privately placed, secured, unsecured, rated
or unrated and of any maturity.
The securities may be acquired through initial public offering (IPOs), secondary market,
private placement, rights offers, negotiated deals, etc. Further investments in debentures,
bonds and other fixed income securities will be in instruments which have been assigned
investment grade rating by the Credit Rating Agency.
Axis Triple Advantage Fund 36
Investment in unrated debt instruments shall be subject to complying with the norms as
specified by Board from time to time.
For applicable regulatory investment limits please refer paragraph "Investment Restrictions”.
Details of various derivative instruments along with derivative strategies have been
provided under the paragraph “Derivatives Strategy”.
The Fund Manager may invest in any other security as may be permitted from time to time
and which are in line with the investment objectives of the Scheme.
E. WHAT ARE THE INVESTMENT STRATEGIES
The Scheme seeks to generate long term capital appreciation by investing in a diversified
portfolio of equity, fixed income & gold exchange traded funds.
The scheme seeks to benefit from the concept of asset allocation. The aim of asset
allocation is to provide superior risk adjusted returns through diversification across various
asset classes like equity, fixed income & gold which have historically had low correlation
with each other.
Equity and Equity Related Instruments:
The equity allocation will be managed actively. The focus would be to build a diversified
portfolio of strong growth companies, reflecting our most attractive investment ideas, at all
points of time.
The portfolio will be built utilising a bottom-up stock selection process, focusing on
appreciation potential of individual stocks from a fundamental perspective. The AMC
employs a "Fair value" based research process to analyse the appreciation potential of
each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The
universe of stocks is carefully selected to include companies having a robust business
models and enjoying sustainable competitive advantages as compared to their
competitors. The Fund will have the flexibility to invest across the market capitalization
spectrum.
The Fund by utilizing a holistic risk management strategy will endeavor to manage risks
associated with investing in equity markets. The Fund has identified the following risks and
designed risk management strategies, which are embedded in the investment process to
manage these risks
i) Quality Risk - Risk of investing in unsustainable / weak companies.
ii) Price Risk - Risk of overpaying for a company
iii) Liquidity Risk - High Impact cost of entry and exit
iv) Volatility Risk - Volatility in price due to company or portfolio specific factors
v) Event Risk - Price risk due to a company / sector specific or market event
Fixed Income:
The Scheme proposes to invest in a diversified portfolio of high quality debt and money
market instruments to generate regular income. The fund manager will allocate the assets
of the scheme taking into consideration the prevailing interest rate scenario & the liquidity
of the different instruments.
The portfolio duration and credit exposures will be decided based on a thorough research
of the general macroeconomic condition, political and fiscal environment, systemic
liquidity, inflationary expectations, corporate performance and other economic
considerations. The fund manager will keep in mind the yield structure of different asset
classes (e.g. the sovereign yield curve and the corporate bond yield curve) as well as the
kinks within a particular yield curve (e.g. the different points of the sovereign yield curve)
while making investment decisions.
Gold Exchange Traded Funds:
Axis Triple Advantage Fund 37
The Scheme will also invest in gold ETFs as gold, historically, has shown a low correlation with
other asset classes like equity and debt making it a good asset for diversifying the overall
portfolio.
PORTFOLIO TURNOVER
The Scheme is an open-ended scheme. It is expected that there would be a number of
subscriptions and redemptions on a daily basis. Consequently, it is difficult to estimate with
any reasonable measure of accuracy, the likely turnover in the portfolio.
There may be an increase in transaction cost such as brokerage paid, if trading is done
frequently. However, the cost would be negligible as compared to the total expenses of
the Scheme. Frequent trading may increase the profits which will offset the increase in
costs. The fund manager will endeavor to optimize portfolio turnover to maximize gains and
minimize risks keeping in mind the cost associated with it. However, it is difficult to estimate
with reasonable accuracy, the likely turnover in the portfolio of the Scheme. The Scheme
has no specific target relating to portfolio turnover
Debt and Money Markets in India
The Indian debt market is today one of the largest in Asia and includes securities issued by
the Government (Central & State Governments), public sector undertakings, other
government bodies, financial institutions, banks and corporates. Government and public
sector enterprises are the predominant borrowers in the markets. The major players in the
Indian debt markets today are banks, financial institutions, mutual funds, insurance
companies, primary dealers, trusts, pension funds and corporates. The Indian debt market is
the largest segment of the Indian financial markets. The debt market comprises broadly two
segments, viz. Government Securities market or G-Sec market and corporate debt market.
The latter is further classified as market for PSU bonds and private sector bonds.
The Government Securities (G-Secs) market, consists of G-Sec outstanding of Rs.
58,19,997.04 cr as on Sep 03, 2019 (State Govt securities - Rs 24,02,242 cr, Source: CCIL), is
the oldest and the largest component (50% share in market cap) of the Indian debt market
in terms of market capitalization, outstanding securities and trading volumes. The G-Secs
market plays a vital role in the Indian economy as it provides the benchmark for
determining the level of interest rates in the country through the yields on the Government
Securities which are referred to as the risk-free rate of return in any economy. Over the
years, there have been new products introduced by the RBI like zero coupon bonds,
floating rate bonds, inflation indexed bonds, etc.
The corporate bond market, in the sense of private corporate sector raising debt through
public issuance in capital market, is only an insignificant part of the Indian Debt Market. The
market capitalization of corporate debt market as on March 31,2016 is Rs. 4,35,743.204 Cr
(Source: NSE). A large part of the issuance in the non-Government debt market is currently
on private placement basis.
The money markets in India essentially consist of the call money market (i.e. market for
overnight and term money between banks and institutions), repo transactions (temporary
sale with an agreement to buy back the securities at a future date at a specified price),
commercial papers (CPs, short term unsecured promissory notes, generally issued by
corporates), certificate of deposits (CDs, issued by banks) and Treasury Bills (issued by RBI).
In a predominantly institutional market, the key money market players are banks, financial
institutions, insurance companies, mutual funds, primary dealers and corporates. In money
market, activity levels of the Government and nongovernment debt vary from time to time.
Instruments that comprise a major portion of money market activity include but not limited
to:
• Overnight Call
• Tri Party Repo
• Repo/Reverse Repo Agreement
• Treasury Bills
• Government securities with a residual maturity of < 1 year.
• Commercial Paper
• Certificate of Deposit
Axis Triple Advantage Fund 38
Apart from these, there are some other options available for short tenure investments that
include MIBOR linked debentures with periodic exit options and other such instruments.
Though not strictly classified as Money Market Instruments, PSU / DFI / Corporate paper with
a residual maturity of < 1 year, are actively traded and offer a viable investment option.
The market has evolved in past 2-3 years in terms of risk premia attached to different class
of issuers. Bank CDs have clearly emerged as popular asset class with increased
acceptability in secondary market. PSU banks trade the tightest on the back of comfort
from majority government holding. Highly rated manufacturing companies also command
premium on account of limited supply. However, there has been increased activity in
papers issued by private/foreign banks/NBFCs/companies in high-growth sector due to
higher yields offered by them. Even though companies across these sectors might have
been rated on a same scale, the difference in the yield on the papers for similar maturities
reflects the perception of their respective credit profiles.
The following table gives approximate yields prevailing on November 1, 2019 on some of
the instruments and further illustrates this point.
Instrument Current Yield range (%)
Tri-party Repo 4.90%-5.10%
Repo 4.90%-5.10%
3M T-bill 5.04%-5.10%
1Y T-bill 5.25%-5.30%
10Y G-sec 6.40%-6.45%
3m PSU Bank CD 5.10%-5.15%
3m Manufacturing co. CP 5.20%-5.30%
1Y PSU Bank CD 5.55%-5.60%
1Y NBFC CP 6.50%-6.65%
1Y Manufacturing co. CP 6.00%-6.10%
5Y AAA Institutional Bond 6.80%-6.85%
10Y AAA Institutional Bond 7.5%-7.55%
Source: Bloomberg
These yields are indicative and do not indicate yields that may be obtained in future as
interest rates keep changing consequent to changes in macro-economic conditions and
RBI policy. The price and yield on various debt instruments fluctuate from time to time
depending upon the macro economic situation, inflation rate, overall liquidity position,
foreign exchange scenario etc. Also, the price and yield vary according to maturity profile,
credit risk etc.
RISK CONTROL
Risk management is going to be an integral part of the investment process. Effective risk
management is critical to fund management for achieving financial soundness.
Investments by the Scheme shall be made as per the investment objectives of the Scheme
and provisions of the Regulations.
The investment team of the AMC will carry out rigorous in depth credit evaluation of the
money market and debt instruments (other than GSecs) proposed to be invested in. The
credit evaluation will essentially be a bottom up approach and include a study of the
operating environment of the issuer, the past track record as well as the future prospects of
the issuer and the short term / long term financial health of the issuer.
With respect to the equity component, the scheme would invest in a diversified portfolio of
equity and equity related securities which would help alleviate the sector/market
capitalization related concentration risk.
For portfolio diversification, the scheme will also invest in gold ETFs as gold, historically, has
shown a low correlation to other asset classes like equity & debt.
The AMC has experienced investment professionals to help limit the investment universe to
carefully selected high quality businesses.
Axis Triple Advantage Fund 39
The AMC would incorporate adequate safeguards for controlling risks in the portfolio
construction process, which would be periodically evaluated. The scheme will also use
derivatives and other hedging instruments, as may be permitted by SEBI and RBI, from time
to time, in order to protect the value of the portfolio. The fund manager would also
consider hedging the portfolios in case of predictable events with uncertain outcomes.
The risk control process involves identifying & measuring the risk through various Risk
Measurement Tools.
The AMC has implemented the Bloomberg Portfolio Order Management System as Front
Office System (FOS). The system has incorporated all the investment restrictions as per SEBI
guidelines and “soft” warning alerts at appropriate levels for preemptive monitoring. The
system enables identifying & measuring the risk through various risk measurement tools like
various risk ratios, average duration and analyzes the same so as to act in a preventive
manner.
DERIVATIVES STRATEGY
The Scheme may invest in various derivative instruments which are permissible under the
applicable regulations. Such investments shall be subject to the investment objective and
strategy of the Scheme and the internal limits if any, as laid down from time to time. These
include but are not limited to futures (both stock and index) and options (stock and index).
Derivatives are financial contracts of pre-determined fixed duration, like stock
futures/options and index futures and options, whose values are derived from the value of
an underlying primary financial instrument such as: interest rates, exchange rates,
commodities, and equities.
Derivatives can be either exchange traded or can be over the counter (OTC). Exchange
traded derivatives are listed and traded on stock exchanges whereas OTC derivative
transactions are generally structured between two counterparties.
The objectives of the various strategies include earning option premium/ hedge stock /
portfolio against market gyrations.
The risks associated with derivatives are similar to those associated with underlying
investments. The additional risks of using derivative strategies could be on account of:
Illiquidity;
Potential mis - pricing of the Futures/Options;
Lack of opportunity;
Inability of derivatives to correlate perfectly with the underlying (Indices, Assets,
Exchange Rates);
Cost of hedge can be higher than adverse impact of market movements;
An exposure to derivatives in excess of the hedging requirements can lead to losses;
An exposure to derivatives can also limit the profits from a genuine investment
transaction;
The prices which are seen on the screen need not be the same at which execution will
take place.
In case of option writing, the downside of the strategy could be more than the option
premium earned.
For detailed risks associated with use of derivatives, please refer paragraph “Scheme
Specific Risk Factors”. Exchange traded derivatives Contracts in stocks and indices in India
are currently cash settled at the time of maturity.
Derivatives allowed for mutual funds are only exchange traded and not OTC.
Concepts and Examples of derivatives which may be used by the fund manager:
Futures
Futures (Index & Stocks) are forward contracts traded on the exchanges & have been
introduced both by BSE and NSE. Generally futures of 1 month (near month), 2 months (next
Axis Triple Advantage Fund 40
month) and 3 months (far month) are presently traded on these exchanges. These futures
expire on the last working Thursday of the respective months.
Illustration with Index Futures
In case the Nifty 50 near month future contract is trading at say, Rs. 3,510, and the fund
manager has a view that it will depreciate going forward; the Scheme can initiate a sale
transaction of Nifty futures at Rs. 3,510 without holding a portfolio of equity stocks or any
other underlying long equity position. Once the price falls to Rs. 3,400 after say, 20 days,
the Scheme can initiate a square-up transaction by buying the said futures and book a
profit of Rs. 110.
Correspondingly, if the fund manager has a positive view he can initiate a long position in
the index / stock futures without an underlying cash/ cash equivalent subject to the extant
regulations.
There are futures based on stock indices as mentioned above as also futures based on
individual stocks. The profitability of index /stock future as compared to an individual
security will inter-alia depends upon:
The carrying cost,
The interest available on surplus funds, and
The transaction cost.
Example of a typical future trade and the associated costs
Particulars Index
Future
Actual Purchase
of Stocks
Index at the beginning of the month 3500 3500
Price of 1 month future 3510
A. Execution cost: Carry and other index future costs 10
B. Brokerage cost: Assumed at 7.02 8.75
0.2% of Index Future
0.25% for spot Stocks
C. Gains on surplus fund: (Assumed 8% p.a. return on 85%
of the money left after paying 15% margin)
(8%*3500*85%*30 days/365)
19.56 0
Total Cost (A+B-C) -2.54 8.75
Some strategies that employ stock /index futures and their objectives:
(a) Arbitrage
(1) Selling spot and buying future: In case the Scheme holds the stock of a company “A” at
say Rs. 100 while in the futures market it trades at a discount to the spot price say at Rs. 98,
then the Scheme may sell the stock and buy the futures.
On the date of expiry of the stock future, the Scheme may reverse the transactions (i.e.
buying at spot & selling futures) and earn a risk-free Rs. 2 (2% absolute) on its holdings
without any dilution of the view of the fund manager on the underlying stock.
Further, the Scheme can still benefit from any movement of the price in the upward
direction, i.e. if on the date of expiry of the futures, the stock trades at Rs. 110 which would
be the price of the futures too, the Scheme will have a benefit of Rs 10 whereby the
Scheme gets the 10% upside movement together with the 2% benefit on the arbitrage and
thus getting a total return of 12%.The corresponding return in case of holding the stock
would have been 10%.
Note: The same strategy can be replicated with a basket of Nifty- 50 stocks (Synthetic Nifty)
and the Nifty future index.
(2) Buying spot and selling future: Where the stock of a company “A” is trading in the spot
market at Rs. 100 while it trades at Rs. 102 in the futures market, then the Scheme may buy
the stock at spot and sell in the futures market thereby earning Rs. 2.
Buying the stock in cash market and selling the futures results into a hedge where the
Scheme has locked in a spread and is not affected by the price movement of cash market
Axis Triple Advantage Fund 41
and futures market. The arbitrage position can be continued till expiry of the future
contracts when there is a convergence between the cash market and the futures market.
This convergence enables the Scheme to generate the arbitrage return locked in earlier.
(b) Buying/ Selling Stock future:
When the Scheme wants to initiate a long position in a stock whose spot price is at say,
Rs.100 and futures is at 98, then the Scheme may just buy the futures contract instead of the
spot thereby benefiting from a lower cost.
In case the Scheme has a bearish view on a stock which is trading in the spot market at
Rs.98 and the futures market at say Rs. 100, the Scheme may subject to regulations, initiate
a short position in the futures contract. In case the prices align with the view and the price
depreciates to say Rs. 90, the Scheme can square up the short position thereby earning a
profit of Rs.10 vis-a-vis a fall in stock price of Rs 8.
(c) Hedging:
The Scheme may use exchange-traded derivatives to hedge the equity portfolio. Both
index and stock futures and options may be used to hedge the stocks in the portfolio.
(d) Alpha Strategy:
The Scheme will seek to generate alpha by superior stock selection and removing market
risks by selling appropriate index. For example, one can seek to generate positive alpha by
buying a bank stock and selling Bank Nifty future.
Execution of these strategies depends upon the ability of the fund manager to identify and
execute based on such opportunities. These involve significant uncertainties and decision
of fund manager may not always be profitable. No assurance can be given that the fund
manager will be able to identify or execute such strategies.
Option Contracts (Stock and Index)
An Option gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock
at an agreed-upon price during a certain period of time or on a specific date.
Options are used to manage risk or as an investment to generate income. The price at
which underlying security is contracted to be purchased or sold is called the Strike Price.
Options that can be exercised on or before the expiration date are called American
Options while, Options that can be exercised only on the expiration date are called
European Options.
Options Risk / Return Pay-off Table
Stock / Index Options Buy Call Sell Call Buy Put Sell Put
1 View on underlying Positive Negative Negative Positive
2 Premium Pay Receive Pay Receive
3 Risk Potential Limited to
premium
paid
Unlimited Limited to
premium
paid
Unlimited
4 Return Potential Unlimited Premium
Received
Unlimited Premium
Received
Option contracts are of following two types - Call and Put.
Call Option: A call option gives the buyer, the right to buy specified quantity of the
underlying asset at the set strike price on or before expiration date and the seller (writer) of
call option however, has the obligation to sell the underlying asset if the buyer of the call
option decides to exercise the option to buy.
Put Option: A put option gives the buyer the right to sell specified quantity of the underlying
asset at the set strike price on or before expiration date and the seller (writer) of put option
however, has the obligation to buy the underlying asset if the buyer of the put option
decides to exercise his option to sell.
Axis Triple Advantage Fund 42
Index Options / Stock Options
Index options / Stock options are termed to be an efficient way of buying / selling an
index/stock compared to buying / selling a portfolio of physical shares representing an
index for ease of execution and settlement. The participation can be done by buying /
selling either Index futures or by buying a call/put option.
The risk are also different when index /stock futures are bought/sold vis-a-vis index/ stocks
options as in case of an index future there is a mark to market variation and the risk is much
higher as compared to buying an option, where the risk is limited to the extent of premium
paid.
The illustration below explains how one can gain using Index call / put option. These same
principles of profit / loss in an Index option apply in totality to that for a stock option.
Call Option
Suppose an investor buys a Call option on 1 lot of Nifty 50 (Lot Size: 50 units)
• Nifty index (European option).
• Nifty 1 Lot Size: 50 units
• Spot Price (S): 3500
• Strike Price (x): 3550 (Out-of-Money Call Option)
• Premium: 100
Total Amount paid by the investor as premium [50*100] = Rs. 5,000
There are two possibilities i.e. either the index moves up over the strike price or remains
below the strike price.
Case 1- The index goes up
• An investor sells the Nifty Option described above before expiry:
Suppose the Nifty 50 Index moves up to 3600 in the spot market and the premium has
moved to Rs 200 and there are 15 days more left for the expiry. The investor decides to
reverse his position in the market by selling his 1 Nifty call option as the option now is In the
Money.
His gains are as follows:
• Nifty Spot: 3600
• Current Premium: Rs.200
• Premium paid: Rs.100
• Net Gain: Rs.200- Rs.100 = Rs.100 per unit
• Total gain on 1 lot of Nifty (50 units) = Rs.5,000 (50*100)
In this case the premium of Rs.200 has an intrinsic value of Rs.50 per unit and the remaining
Rs.150 is the time value of the option.
• An investor exercises the Nifty Option at expiry
Suppose the Nifty index moves up to 3700 in the spot market on the expiry day and the
investor decides to reverse his position in the market by exercising the Nifty call option as
the option now is In The Money.
His gains are as follows:
• Nifty Spot: 3700
• Premium paid: Rs.100
• Exercise Price: 3550
• Receivable on exercise: 3700-3550 = 150
• Total Gain: Rs.2500 {(150-100)*50}
In this case the realised gain is only the intrinsic value, which is Rs.50, and there is no time
value.
Case 2 - The Nifty index moves to any level below 3550
Then the investor does not gain anything but on the other hand his loss is limited to the
premium paid:
Net Loss is Rs.5,000 (Loss is capped to the extent of Premium Paid)
(Rs 100 Premium paid*Lot Size: 50 units).
Put Option
Suppose an investor buys a Put option on 1 lot of Nifty 50.
Axis Triple Advantage Fund 43
• Nifty 1 Lot Size: 50 units
• Spot Price (S): 3500
• Strike Price (x): 3450 (Out-of-Money Put Option)
• Premium: Rs. 30
• Total Amount paid by the investor as premium [50*30] = Rs. 1,500
There are two possibilities i.e. either the index moves over the strike price or moves below
the strike price.
Let us analyze these scenarios.
Case 1 - The index goes down
• An investor sells the Nifty Option before expiry:
Suppose the Nifty 50 Index moves down to 3400 in the spot market and the premium has
moved to Rs. 80 and there are 15 days more left for the expiry. The investor decides to
reverse his position in the market by selling his 1 Nifty Put Option as the option now is In The
Money. His gains are as follows:
• Nifty Spot: 3400
• Premium paid: Rs.30
• Net Gain: Rs.80 - Rs.30 = Rs.50 per unit
• Total gain on 1 lot of Nifty (50 units) = Rs.2,500 (50*50)
In this case the premium of Rs.80 has an intrinsic value of Rs.50 per unit and the remaining
Rs.30 is the time value of the option.
An investor exercises the Nifty Option at expiry (It is an European Option)
Suppose the Nifty index moves down to 3400 in the spot market on the expiry day and the
investor decides to reverse his position in the market by exercising the Nifty Put Option as
the option now is In The Money.
His gains are as follows:
• Nifty Spot: 3,400
• Premium paid: Rs.30
• Exercise Price: 3450
• Gain on exercise: 3450-3400 = 50
• Total Gain: Rs.1,000 {(50-30)*50}
In this case the realised amount is only the intrinsic value, which is Rs.50, and there is no time
value in this case.
Case 2 - If the Nifty 50 Index stays over the strike price which is 3450, in the spot market then
the investor does not gain anything but on the other hand his loss is limited to the premium
paid.
• Nifty Spot: >3450
• Net Loss Rs.1,500 (Loss is caped to the extent of Premium Paid)
(Rs 30 Premium paid*Lot Size: 50 units).
Covered Call Strategy
The covered call strategy is a strategy where a fund manager writes call options against an
equivalent long position in an underlying stock thereby giving up a part of the upside from
the long position. The strategy allows the fund manager to earn premium income from the
option writing in addition being able to capture the remaining part of the upside.
Assumptions:
Current price of stock A: Rs. 27.87 per share
1 contract = 100 shares
Total no of contracts: 10
Strike price: Rs. 30/- per share
Premium: Rs. 0.35 per share
Suppose, on October 6, 2018, the writer of the call owns 1,000 shares of Company A, which
is currently trading at Rs. 27.87 per share. The writer of the call writes 10 call option contracts
for company A with a strike price of Rs. 30 per share that expires in January 2019. The writer
Axis Triple Advantage Fund 44
receives premium of 0.35 per share for the calls, which equals Rs. 35.00 per contract for a
total of Rs. 350.00.
Total premium = (Rs. 0.35 per share) * (100 shares per contract) * (10 contracts) = Rs. 350.
The following can be the scenarios reflecting risks and benefits at the end of the option
expiry:
Case 1 - Stock falls below current price of Rs. 27.87 per share: The option expires worthless.
Hence the loss from the stock position gets reduced to the extent of the premium income.
Case 2 - Stock goes up above current price but remains below Rs. 30 per share (strike
price): The option expires worthless. Hence the income from the gains in the stock price
gets further boosted to the extent of the premium income.
Case 3 - Stock goes above Rs. 30 per share: Option position goes out of the money for the
writer but the losses from the option position are matched by the gains from the underlying
stock position above Rs. 30 per share. Hence the return from the position is equal to the
return from stock upto the strike price of Rs. 30 per share and the premium income from the
option.
Benefits of using Covered Call Strategy in Mutual Funds:
The covered call strategy can be followed by the Fund Manager in order to hedge risk
thereby resulting in better risk adjusted returns of the Scheme. The strategy offers the
following benefits:
a) Hedge against market risk - Since the fund manager sells a call option on a stock already
owned by the mutual fund scheme, the downside from fall in the stock price would be
lower to the extent of the premium earned from the call option.
b) Generating additional returns in the form of option premium in a range bound market.
Thus, a covered call strategy involves gains for unit holders in case the strategy plays out in
the right direction.
Fixed Income Derivative Instruments:
The Scheme may use Derivative instruments like interest rate swaps like overnight indexed
swaps (OIS), forward rate agreements, interest rate futures or such other Derivative
instruments as may be permitted under the applicable regulations. Derivatives will be used
for the purpose of hedging, and portfolio balancing or such other purpose as may be
permitted under the regulations and guidelines from time to time.
The Fund will be allowed to take exposure in interest rate swaps only on a non-leveraged
basis. A swap will be undertaken only if there is an underlying asset in the portfolio. In terms
of circular no. MFD.BC.191/07.01.279/1999-2000 and MPD.BC.187/07.01.279/1999- 2000
dated November 1, 1999 and July 7, 1999 respectively issued by RBI permitting participation
by Mutual Funds in interest rate swaps and forward rate agreements, the Scheme will use
Derivative instruments for the purpose of hedging and portfolio balancing. The Scheme
may also use derivatives for such purposes as maybe permitted from time to time. Further,
the guidelines issued by RBI from time to time for forward rate agreements and interest rate
swaps and other derivative products would be adhered to by the Mutual Fund.
IRS and FRAs do also have inherent credit and settlement risks. However, these risks are
substantially reduced as they are limited to the interest streams and not the notional
principal amounts.
Investments in Derivatives will be in accordance with the extant SEBI Regulations /
guidelines. Presently Derivatives shall be used for hedging and / or portfolio balancing
purposes, as permitted under the Regulations. The circumstances under which such
transactions would be entered into would be when, for example using the IRS route it is
possible to generate better returns / meet the objective of the Scheme at a lower cost. e.g.
if buying a 2 Yr MIBOR based instrument and receiving the 2 Yr swap rate yields better return
than the 2 Yr AAA corporate, the Scheme would endeavor to do that. Alternatively, the
Axis Triple Advantage Fund 45
Scheme would also look to hedge existing fixed rate positions if the view on interest rates is
that it would likely rise in the future.
The following information provides a basic idea as to the nature of the Derivative
instruments proposed to be used by the Scheme and the benefits and risks attached
therewith. Please note that the examples have been given for illustration purposes only.
Using Overnight Indexed Swaps
In a rising interest rate scenario, the Scheme may enhance returns for the Investor by
hedging the risk on its fixed interest paying assets by entering into an OIS contract where
the Scheme agrees to pay a fixed interest rate on a specified notional amount, for a pre-
determined tenor and receives floating interest rate payments on the same notional
amount. The fixed returns from the Scheme assets and the fixed interest payments to be
made by the Scheme on account of the OIS transaction offset each other and the Scheme
benefits on the floating interest payments that it receives. The Scheme may enter into an
opposite position in case of a falling interest rate scenario, i.e. to hedge the floating rate
assets in its portfolio the Scheme enters into an OIS transaction wherein it receives a fixed
interest rate on a specified notional amount for a specified time period and pays a floating
interest rate on the same notional amount. The floating interest payments that the Scheme
receives on its floating rate securities and the floating interest payments that the Scheme
has to pay on account of the OIS transaction offset each other and the Scheme benefits
on the fixed interest payments that it receives in such a scenario.
Swap
Assume that the Scheme has a Rs. 20 crore floating rate investment linked to MIBOR
(Mumbai Inter Bank Offered Rate). Hence, the Scheme is currently running an interest rate
risk and stands to lose if the interest rate moves down. To hedge this interest rate risk, the
Scheme can enter into a 6 month MIBOR swap. Through this swap, the Scheme will receive
a fixed predetermined rate (assume 12%) and pays the “benchmark rate” (MIBOR), which is
fixed by the NSE or any other agency such as Reuters. This swap would effectively lock-in
the rate of 12% for the next 6 months, eliminating the daily interest rate risk. This transaction
is usually routed through an intermediary who runs a book and matches deals between
various counterparties.
The steps will be as follows:
Assuming the swap is for Rs. 20 Crores for June 1, 2009 to December 1, 2009. The Scheme is
a fixed rate receiver at 12% and the counterparty is a floating rate receiver at the overnight
rate on a compounded basis (say NSE MIBOR).
On June 1, 2009 the Scheme and the counterparty will exchange only a contract of having
entered this swap. This documentation would be as per International Swap Dealers
Association (ISDA) norms.
On a daily basis, the benchmark rate fixed by NSE will be tracked by them.
On December 1, 2009 they will calculate the following:
The Scheme is entitled to receive interest on Rs. 20 Crores at 12% for 184 days i.e. Rs. 1.21
Crores, (this amount is known at the time the swap was concluded) and will pay the
compounded benchmark rate.
The counterparty is entitled to receive daily compounded call rate for 184 days & pay
12% fixed.
On December 1, 2009, if the total interest on the daily overnight compounded
benchmark rate is higher than Rs. 1.21 Crores, the Scheme will pay the difference to the
counterparty. If the daily compounded benchmark rate is lower, then the counterparty
will pay the Scheme the difference.
Effectively the Scheme earns interest at the rate of 12% p.a. for six months without
lending money for 6 months fixed, while the counterparty pays interest @ 12% p.a. for 6
months on Rs. 20 Crores, without borrowing for 6 months fixed.
The above example illustrates the use of Derivatives for hedging and optimizing the
investment portfolio. Swaps have their own drawbacks like credit risk, settlement risk.
Axis Triple Advantage Fund 46
However, these risks are substantially reduced as the amount involved is interest streams
and not principal.
Forward Rate Agreement
Assume that on June 30, 2009, the 30 day Commercial Paper (CP) rate is 4% and the
Scheme has an investment in a CP of face value Rs. 50 Crores, which is going to mature on
July 31, 2009. If the interest rates are likely to remain stable or decline after July 31, 2009,
and if the fund manager, who wants to re-deploy the maturity proceeds for 1 more month
does not want to take the risk of interest rates going down, he can then enter into a
following Forward Rate Agreement (FRA) say as on June 30, 2009:
He can receive 1 X 2 FRA on June 30, 2009 at 4.00% (FRA rate for 1 months lending in 1
months time) on the notional amount of Rs. 50 Crores, with a reference rate of 30 day CP
benchmark. If the CP benchmark on the settlement date i.e. July 30, 2009 falls to 3.75%,
then the Scheme receives the difference 4.00 – 3.75 i.e. 25 basis points on the notional
amount Rs. 50 Crores.
Interest Rate Futures
Assume that the Scheme holds an Indian ten year benchmark and the fund manager has a
view that the yields will go up in the near future leading to decrease in value of the
investment and subsequent decrease in Net Asset Value of the Scheme. The fund manager
decides to use Interest Rate Futures to mitigate the risk of decline of Net Asset Value of the
Scheme.
12th October 2009
The benchmark ten year paper 6.88 2009, is trading at INR 98.00 at a yield of 7.19%.
December 2009 futures contract on the ten year notional 7% coupon bearing
Government paper is trading at a yield of 7.29% at a price of INR 98.50.
The mutual fund decides to hedge the exposure by taking a short position in December
2009 interest rate futures contract.
25th November 2009
As expected by the fund manager the yield of the benchmark ten year paper has
increased to 8% and the price has decreased to 92.70.
The December 2009 futures contract is trading at a price of INR 93.17 indicating a yield
of 8.05%
The mutual fund unwinds the short position by buying the December 2009 futures
contract. The transaction results in profit from the futures position, against the
corresponding loss from the Government of India security position.
Directional Trading
As there is an inverse relationship between interest rate movement and underlying bond
prices, the futures price also moves in tandem with the underlying bond prices. If one has a
strong view that interest rates will rise in the near future and wants to benefit from rise in
interest rates; one can do so by taking short position in IRF contracts.
Example: A trader expects long-term interest rate to rise. He decides to sell Interest Rate
Futures contracts as he shall benefit from falling future prices.
Expectation Position
Interest Rates going up Short Futures
Interest Rates going
down
Long Futures
Trade Date - 1st December 2015
Futures Delivery date - 1st January 2016
Current Futures Price - Rs. 97.50
Futures Bond Yield - 8.21%
Trader sell 250 contracts of the January 2016- 10 Year futures contract on NSE on 1st
December 2015 at Rs. 97.50
Axis Triple Advantage Fund 47
Assuming the price moves to Rs. 97.15 on December 9, 2015, net MTM gain would be Rs.
1,75,000
(250*2000*97.50-97.15) (I)
Closing out the Position
10th December 2015 - Futures market Price - Rs. 96.70
Trader buys 250 contracts of January 2016 at Rs. 96.70 and squares off his position
Therefore total profit for trader 250*2000*(97.15-96.70) is Rs.2,25,000 (II)
Total Profit on the trade = INR 4,00,000 (I & II)
Hedging
Holders of the GOI securities are exposed to the risk of rising interest rates, which in turn
results in the reduction in the value of their portfolio. So in order to protect against a fall in
the value of their portfolio due to falling bond prices, they can take short position in IRF
contracts.
Example:
Date: 01-December 2015
Spot price of GOI Security: Rs 105.05
Futures price of IRF Contract: Rs 105.12
On 01-December 2015 XYZ bought 2000 GOI securities from spot market at Rs 105.07. He
anticipates that the interest rate will rise in near future. Therefore to hedge the exposure in
underlying market he may sell January 2016 Interest Rate Futures contracts at Rs 105.12
On 16-January 2016 due to increase in interest rate:
Spot price of GOI Security: Rs 104.24
Futures Price of IRF Contract: Rs 104.28
Loss in underlying market will be (104.24 - 105.05)*2000 = Rs 1620
Profit in the Futures market will be (104.28 - 105.12)*2000 = Rs 1680
Imperfect Hedging
The Scheme may use Interst Rate Future for imperfect hedging in accordance with the SEBI
(Mutual Funds) Regulations, 1996 as amended from time to time. In such cases, the
Underlying being hedged and the IRF contract has a 90-day correlation of closing prices of
more than 90%. In case of correlation breaking at any time the derivative position would be
counted as an exposure. SEBI allows maximum of 20% imperfect hedging.
For example, assume a portfolio comprising the following structure:
Security Amount (crs) Price (Rs)
IGB 7.17% 2028 100 97.5
IGB 6.79% 2027 50 94.07
IGB 8.33% 2026 25 103.05
Cash 25
Total 200
Assuming the fund manager intends to hedge the portfolio using IRF and uses contracts on
IGB 6.79% 2027 as it is most liquid.
Maximum imperfect hedging allowed, based on SEBI limit of 20% for the above fund is
200*20% = 40 crs
Maximum perfect hedging using 6.79% 2027 is 100 crs (as amount of 6.79% 2027 in the fund
is 100 crs)
Total hedge the fund can do = 100 crs + 40 crs =140 crs
Assuming the 90-day historical correlation between the instruments in the portfolio are as
follows
90 day historical
correlation
IGB 7.17% 2028 IGB 6.79% 2027 IGB 8.33% 2026
IGB 7.17% 2028 1 0.95 0.80
Axis Triple Advantage Fund 48
IGB 6.79% 2027 0.95 1 0.75
IGB 8.33% 2026 0.80 0.75 1
Given that we are using IRF on 7,17% 2028, we can hedge 7.17% 2028 using IRFs as
correlation is more than 90% up to 40 crs (based on the 20% limit of imperfect hedging).
Since one contract of IRF has a notional of Rs. 2 lakhs, in this example the fund manager
sells Rs. 140 crores/2 lakhs = 7000 contracts, to hedge his position.
Hence after hedging the fund is as shown below:
Security Amount (crs) Price (Rs) Comments
IGB 7.17% 2028 100 97.5 100% hedged -
Perfect hedging
IGB 6.79% 2027 50 94.07 40% hedged -
Imperfect hedging
IGB 8.33% 2026 25 103.05 Unhedged
Cash 25 Unhedged
IGB 7.17% 2028 140 97.45
Total 200
At maturity of the Interest Rate Futures
Case 1: bonds close higher than at the time the hedge was entered into
Security Amount (crs) Price before
hedging (Rs)
Price on
maturity of
hedge (Rs)
Gain Net Gain
(Lakhs)
IGB 7.17%
2028
100 97.5 97.6 0.1 10.00
IGB 6.79%
2027
50 94.07 94.22 0.15 7.50
IGB 8.33%
2026
25 103.05 103.10 0.05 1.25
Cash 25 -
Without IRF 18.75
IGB 7.17%
2028
140 97.45 100.6 -0.15 (21.00)
Total with IRF 200 (2.25)
Case 2: bonds close lower than at the time the hedge was entered into
Security Amount (crs) Price before
hedging (Rs)
Price on
maturity of
hedge (Rs)
Gain Net Gain
(Lakhs)
IGB 7.17% 2028 100 97.5 97.4 -0.1 (10.00)
IGB 6.79% 2027 50 94.07 93.95 -0.12 (6.00)
IGB 8.33% 2026 25 103.05 103.00 -0.05 (1.25)
Cash 25 -
Without IRF (17.25)
IGB 7.17% 2028 140 97.45 97.4 0.05 (7.00)
Total with IRF 200 (10.25)
As can be seen in the cases above, in case yields move higher, IRFs help in reducing the
loss to the fund.
Arbitrage
Arbitrage is the price difference between the bonds prices in underlying bond market and
IRF contract without any view about the interest rate movement. One can earn the risk-less
profit from realizing arbitrage opportunity and entering into the IRF contract.
Axis Triple Advantage Fund 49
Example:
On 18th December 2015 buy 6.35% GOI ’20 at the current market price of Rs. 97.2485
Step 1 - Short the futures at the current futures price of Rs. 100.00 (9.00% Yield)
Step 2 - Fund the bond by borrowing up to the delivery period (assuming borrowing rate is
8.00%)
Step 3 - On 10th January 2016, give a notice of delivery to the exchange
Assuming the futures settlement price of Rs. 100.00, the invoice price would be
= 100 * 0.9780
= Rs. 97.8000
Under the strategy, the trader has earned a return of
= (97.800 – 97.2485) / 97.2485 * 365 / 23
= 9.00 % (implied repo rate)
(Note: For simplicity accrued interest is not considered for calculation)
Against its funding cost of 8.00% (borrowing rate), thereby earning risk free arbitrage.
Risks aassociated with Interest Rate Futures
Although hedging with interest rate futures allows investors to reduce interest rate risk, it
generally cannot completely eliminate risk. All hedges generally contain some residual, or
basis, risk. Moreover, hedging also introduces some other risks. Some of those risks are credit
risk, marking to market risk, and managerial risk.
Basis risk:
The risk that remains after an investor hedges his portfolio is called basis risk. An investor who
hedges his portfolio with interest rate futures bears basis risk because, when interest rates
change, the change in the price of the futures contract does not perfectly offset the
change in the price of the asset being hedged. Fixed income asset prices can change for
reasons other than changes in interest rates. As a result, the basis risk in a hedge will be
relatively high when factors other than interest rates are an important source of the
changes in the price of the asset being hedged.
For example, an asset's price will fall if the issuer's credit rating falls or if the asset is relatively
illiquid and a large amount is sold. Since these factors would not affect the prices of interest
rate futures, such as Treasury bond futures, interest rate futures cannot offset price changes
caused by such factors. In fact, that is why Treasury bond futures proved to be a less
effective hedging instrument for the corporate bond than for the Treasury bond portfolio.
Credit risk:
Individuals do not have to be concerned about the opposite party defaulting on a futures
contract because every futures exchange has a clearing organization that is a party to
every futures contract in order to guarantee the integrity of the contract. That is, the
clearing house is the seller in every contract bought and the buyer in every contract sold.
But the risk remains that an investor will end up with an un-hedged open futures position if
there is a default on the asset being hedged.
For example, suppose an investor in corporate bonds hedges his portfolio against changes
in interest rates by selling interest rate futures. If interest rates fall, the prices of the bond and
futures will rise. Since futures were sold, the investor would suffer losses on the futures, but
those losses would be offset by the gains on the bonds. If the bond issuer defaults, though,
the investor would have the losses on his futures position but no gains to offset the losses.
F. FUNDAMENTAL ATTRIBUTES
Following are the Fundamental Attributes of the Scheme, in terms of Regulation 18 (15A) of
the SEBI (MF) Regulations:
(i) Type of a Scheme
(ii) Investment Objective
(iii) Terms of Issue
Axis Triple Advantage Fund 50
o Liquidity provisions such as listing, Repurchase, Redemption.
o Aggregate fees and expenses charged to the Scheme.
o Any safety or guarantee net provided:
In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustee shall ensure
that no change in the fundamental attributes of the Scheme and the Plan(s) / Option(s)
thereunder or the trust or fee and expenses payable or any other change which would
modify the Scheme and the Plan(s) / Option(s) thereunder and affect the interests of Unit
holders is carried out unless:
A written communication about the proposed change is sent to each Unit holder and
an advertisement is given in one English daily newspaper having nationwide circulation
as well as in a newspaper published in the language of the region where the Head
Office of the Mutual Fund is situated; and
The Unit holders are given an option for a period of 30 days to exit at the prevailing Net
Asset Value without any exit load.
G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE ?
The Scheme performance would be benchmarked against a customized composite
benchmark comprising of Nifty 50 TRI, Nifty Composite Debt Index and INR Price of Gold.
The Composition of the benchmark would be:
Asset Class/Instruments Benchmark Percentage
Equity and Equity Related Instruments Nifty 50 TRI 65
Debt and Money Market Instruments Nifty Composite Debt Index 20
Gold Exchange Traded Funds INR Price of Gold 15
As the Scheme intends to invest in a basket of equity, fixed income & gold ETFs, a
customized benchmark has been created to compare its performance.
Nifty 50 TRI, being a well-diversified index accounting for 12 sectors of the economy, is a
suitable benchmark for the equity part of the Scheme. Nifty Composite Debt Index is an
index which tracks the return on a composite portfolio of corporate bonds, commercial
papers, certificate of deposits, government securities & CBLO making it a suitable
benchmark for the debt portion of scheme. As Gold ETFs are primarily invested in physical
gold, the gold ETF component of the scheme will be benchmarked against the INR price of
gold.
The Trustee may change the benchmark in future if a benchmark better suited to the
investment objective of the Scheme is available.
H. WHO MANAGES THE SCHEME?
Name of
Fund
Manager
Ages and
Qualification
Experience of the Fund
Manager
Names of other
schemes under his
management
Tenure as
Fund
Manager of
the Scheme
Mr. R.
Sivakumar
44 years
Bachelor of
Technology,
IIT, Madras
PGDM, IIM,
Ahmedabad
Head – Fixed
Income & Products,
Axis Asset
Management
Company Ltd.
(September 02, 2010
– till date)
Fund Manager –
PMS, Axis Asset
Management Co.
Ltd. (August 2009 till
September 01 2010)
Chief Operating
Officer, Fortis
Investment
Management
Axis Dynamic Bond
Fund (Along with Mr.
Devang Shah), Axis
Capital Protection
Oriented Fund – Sr. 5
(Along with Mr. Ashish
Naik), Axis Children’s
Gift Fund (Along with
Mr. Ashish Naik), Axis
Triple Advantage
Fund (Along with Mr.
Ashish Naik), Axis
Dynamic Equity Fund
(Along with Mr.
Anupam Tiwari), Axis
Equity Saver Fund
9 years
Axis Triple Advantage Fund 51
Name of
Fund
Manager
Ages and
Qualification
Experience of the Fund
Manager
Names of other
schemes under his
management
Tenure as
Fund
Manager of
the Scheme
(India) Pvt. Ltd. -
previously known as
ABN AMRO Asset
Management
(India) Pvt. Ltd.
(Last position held –
Chief Operating
Officer. Previous
roles included Fund
Manager – Fixed
Income, VP –
Product
Development and
Portfolio
Management and
Head – Structured
Products.) (April
2004 – July 2009)
Fund Manager –
Fixed Income,
Sundaram Asset
Management
Company Ltd.
(January 2001 –
March 2004)
Research Analyst,
Zurich Asset
Management
(India) Private Ltd.
(December 1999 –
December 2000
(Along with Mr.
Anupam Tiwari), Axis
Equity Hybrid Fund
(Along with Mr. Ashish
Naik)
Mr. Ashish
Naik
37 years
BE Computers
(Mumbai
University),
PGDBM (XLRI),
FRM (GARP)
Equity Analyst - Axis
Asset Management
Company Ltd.
(August 2009 to
June 21, 2016)
Business Analyst -
Goldman Sachs
India Securities Ltd.
(April 2007 to July
2009)
Software Engineer -
Hexaware
Technologies Ltd.
(August 2003 to May
2005)
Axis Triple Advantage
Fund (Along with Mr.
R. Sivakumar), Axis
Children’s Gift Fund
(along with Mr. R.
Sivakumar), Axis Nifty
ETF, Axis Capital
Builder Fund – Series 1
(Along with Mr.
Anupam Tiwari), Axis
Regular Saver Fund
(Along with Mr.
Devang Shah), Axis
Equity Hybrid Fund
(along with R.
Sivakumar), Axis
Capital Protection
Oriented Fund - Series
5 (along with R.
Sivakumar) Axis Hybrid
Fund - Series (along
with Mr. Devang
Shah)
3 years
Further, presently the Trustee/AMC has not designated a dedicated Fund Manager for
investment in Foreign Securities. However, it shall be ensured that there is a dedicated fund
Axis Triple Advantage Fund 52
manager for investment in foreign securities as and when the fund makes investment in
foreign securities.
I. WHAT ARE THE INVESTMENT RESTRICTIONS?
Pursuant to Regulations, specifically the Seventh Schedule and amendments thereto, the
following investment restrictions are currently applicable to the Scheme:
1. The Scheme shall not invest more than 10 per cent of its NAV in the equity shares or
equity related instruments of any company.
2. All investments by the Scheme in equity shares and equity related instruments shall only
be made provided such securities are listed or to be listed
3. The Mutual Fund under all its Scheme(s) shall not own more than ten per cent of any
company’s paid up capital carrying voting rights.
Provided, investment in the asset management company or the trustee company of a
mutual fund shall be governed by clause (a), of sub-regulation (1), of regulation 7B.
4. The Scheme shall not invest more than 10% of its NAV in debt instruments comprising
money market instruments and non-money market instruments issued by a single issuer,
which are rated not below investment grade by a credit rating agency authorized to
carry out such activity under the SEBI Act, 1992. Such investment limit may be extended
to 12% of the NAV of the Scheme with the prior approval of the Trustee and the Board
of Directors of AMC.
Such limit shall not be applicable for investment in Government Securities, treasury bills
and collateralized borrowing and lending obligations.
Provided further that, investments within such limit can be made in the mortgaged
backed securitised debt, which are rated not below investment grade by a credit
rating agency, registered with SEBI.
5. The Scheme shall not invest in unlisted debt instruments including commercial papers,
except Government Securities, money market instruments and derivative products such
as Interest Rate Swaps, Interest Rate Futures, etc. which are used by mutual fund for
hedging.
Provided that the Scheme may invest in unlisted non-convertible debentures up to a
maximum of 10% of the debt portfolio of the Scheme subject to such conditions as may
be specified by the Board from time to time:
Provided further that the Scheme shall comply with the norms under this clause within
the time and in the manner as may be specified by the Board:
Provided further that the norms for investments by the Scheme in unrated debt
instruments shall be specified by the Board from time to time.
6. The investment by the Scheme in the following instruments shall not exceed 10% of the
debt portfolio of the scheme and the group exposure in such instruments shall not
exceed 5% of the debt portfolio of the scheme:
a. Unsupported rating of debt instruments (i.e. without factoring-in credit
enhancements) is below investment grade and
b. Supported rating of debt instruments (i.e. after factoring-in credit enhancement) is
above investment grade.
These limits shall not be applicable on investments in securitized debt instruments, as
defined in SEBI (Public Offer and Listing of Securitized Debt Instruments) Regulations 2008.
The provisions shall be effective for all fresh investments with effect from January 1, 2020.
7. Investment in debt instruments, having credit enhancements backed by equity shares
directly or indirectly, shall have a minimum cover of 4 times considering the market
value of such shares.
The provisions shall be effective for all fresh investments with effect from January 1, 2020.
Axis Triple Advantage Fund 53
8. The Scheme may invest in other schemes of the Mutual Fund or any other mutual fund
without charging any fees, provided the aggregate inter-scheme investment made by
all the schemes under the same management or in schemes under the management
of any other asset management company shall not exceed 5% of the Net Asset Value
of the Fund.
9. The Scheme shall not make any investment in:
a) any unlisted security of an associate or group company of the sponsor; or`
b) any security issued by way of private placement by an associate or group
company of the sponsor; or
c) the listed securities of group companies of the sponsor which is in excess of 25% of
the net assets
10. The Mutual Fund shall get the securities purchased transferred in the name of the Fund
on account of the concerned Scheme, wherever investments are intended to be of a
long-term nature.
11. Transfer of investments from one scheme to another scheme in the same Mutual Fund is
permitted provided:
a. such transfers are done at the prevailing market price for quoted instruments on
spot basis (spot basis shall have the same meaning as specified by a Stock
Exchange for spot transactions); and
b. the securities so transferred shall be in conformity with the investment objective of the
scheme to which such transfer has been made.
12. The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all
cases of purchases, take delivery of relevant securities and in all cases of sale, deliver
the securities:
Provided that the Mutual Fund may engage in short selling of securities in accordance
with the framework relating to short selling and securities lending and borrowing
specified by SEBI.
Provided further that the Mutual Fund may enter into derivatives transactions in a
recognized stock exchange, subject to the framework specified by SEBI.
Provided further that sale of government security already contracted for purchase shall
be permitted in accordance with the guidelines issued by the Reserve Bank of India in
this regard.
13. The Scheme shall not make any investment in any fund of funds scheme.
14. The mutual fund under all its schemes shall not own more than 10% of units issued by a
single issuer of REIT and InvIT.
15. The Scheme shall not invest –
i. more than 10% of its NAV in the units of REIT and InvIT; and
ii. more than 5% of its NAV in the units of REIT and InvIT issued by a single issuer.
16. The Scheme will comply with the following restrictions for trading in exchange traded
derivatives, as specified by SEBI vide its circular no. DNPD/Cir-29/2005 dated September
14, 2005, circular no. DNPD/Cir-30/2006 dated January 20, 2006, circular no. DNPD/Cir-
31/2006 dated September 22, 2006, circular no. Cir/ IMD/DF/11/2010 dated August 18,
2010, circular no. SEBI/HO/MRD/DP/CIR/P/2016/143 dated December 27, 2016, circular
no. SEBI/HO/IMD/DF2/CIR/P/2017/13 dated February 20, 2017 and SEBI circular no.
SEBI/HO/IMD/DF2/CIR/P/2017/109 dated September 27, 2017:
i. Position limit for the Mutual Fund in equity index options contracts
a. The Mutual Fund position limit in all index options contracts on a particular
underlying index shall be Rs. 500 crores or 15% of the total open interest of the
market in index options, whichever is higher, per stock exchange.
b. This limit would be applicable on open positions in all options contracts on a
particular underlying index.
ii. Position limit for the Mutual Fund in equity index futures contracts:
a. The Mutual Fund position limit in all index futures contracts on a particular underlying
index shall be Rs.500 crores or 15% of the total open interest of the market in index
futures, whichever is higher, per stock exchange.
b. This limit would be applicable on open positions in all futures contracts on a
particular underlying index.
iii. Additional position limit for hedging
In addition to the position limits at point (i) and (ii) above, the Mutual Fund may take
exposure in equity index derivatives subject to the following limits:
Axis Triple Advantage Fund 54
a. Short positions in index derivatives (short futures, short calls and long puts) shall not
exceed (in notional value) the Mutual Fund's holding of stocks.
b. Long positions in index derivatives (long futures, long calls and short puts) shall not
exceed (in notional value) the Mutual Fund's holding of cash, government securities,
Treasury Bills and similar instruments.
iv. Position limit for Mutual Fund for stock based derivative contracts
The combined futures and options position limit shall be 20% of the applicable Market
Wide Position Limit (MWPL).
v. Position limit for each scheme of a Mutual Fund
The scheme-wise position limit / disclosure requirements shall be:
a. For stock option and stock futures contracts, the gross open position across all
derivative contracts on a particular underlying stock of a scheme of a Mutual Fund
shall not exceed the higher of 1% of the free float market capitalization (in terms of
number of shares)
or
5% of the open interest in the derivative contract on a particular underlying stock (in
terms of number of contracts).
b. This position limits shall be applicable on the combined position in all derivative
contracts on an underlying stock at a Stock Exchange.
c. For index based contracts, Mutual Funds shall disclose the total open interest held
by its scheme or all schemes put together in a particular underlying index, if such
open interest equals to or exceeds 15% of the open interest of all derivative
contracts on that underlying index.
17. Pending deployment of the funds of the Scheme in securities in terms of the investment
objective of the Scheme, the AMC may park the funds of the Scheme in short term
deposits of scheduled commercial banks, subject to the guidelines issued by SEBI.
The Scheme will comply with the following guidelines/restrictions for parking of funds in
short term deposits:
i. “Short Term” for such parking of funds by the Scheme shall be treated as a period
not exceeding 91 days. Such short-term deposits shall be held in the name of the
Scheme.
ii. The Scheme shall not park more than 15% of the net assets in short term deposit(s) of
all the scheduled commercial banks put together. However, such limit may be
raised to 20% with prior approval of the Trustee.
iii. Parking of funds in short term deposits of associate and sponsor scheduled
commercial banks together shall not exceed 20% of total deployment by the
Mutual Fund in short term deposits.
iv. The Scheme shall not park more than 10% of the net assets in short term deposit(s),
with any one scheduled commercial bank including its subsidiaries.
v. The Scheme shall not park funds in short term deposit (STD) of a bank which has
invested in that Scheme. Further, Trustees/ AMCs shall also ensure that the bank in
which the Scheme has STD do not invest in the said scheme until the Scheme has
STD with such bank.
However, the above provisions will not apply to term deposits placed as margins for
trading in cash and derivatives market.
18. The Scheme shall not advance any loans.
19. The Scheme shall not borrow except to meet temporary liquidity needs of the Scheme
for the purpose of repurchase/redemption of Units or payment of interest and/or
dividend to the Unit holders.
Provided that the Fund shall not borrow more than 20% of the net assets of the
individual Scheme and the duration of the borrowing shall not exceed a period of 6
month.
20. Further, SEBI vide its circular no. Cir/ IMD/ DF/ 11/ 2010 dated August 18, 2010 has
prescribed the following investment restrictions w.r.t. investment in derivatives:
S. Particulars
Axis Triple Advantage Fund 55
No.
1 The cumulative gross exposure through equity, debt and derivative positions
shall not exceed 100% of the net assets of the Scheme. Cash or cash
equivalents with residual maturity of less than 91 days shall be treated as not
creating any exposure.
2 The Scheme shall not write options or purchase instruments with embedded
written options except call options under a covered call strategy as specified
in SEBI circular dated January 16, 2019 as amended from time to time.
3 The total exposure related to option premium paid shall not exceed 20% of
the net assets of the Scheme.
4 Exposure due to hedging positions may not be included in the above
mentioned limits subject to the following:
a. Hedging positions are the derivative positions that reduce possible losses
on an existing position in securities and till the existing position remains.
b. Hedging positions cannot be taken for existing derivative positions.
Exposure due to such positions shall have to be added and treated under
limits mentioned in Point 1.
c. Any derivative instrument used to hedge has the same underlying security
as the existing position being hedged.
d. The quantity of underlying associated with the derivative position taken for
hedging purposes does not exceed the quantity of the existing position
against which hedge has been taken.
5 Exposure due to derivative positions taken for hedging purposes in excess of
the underlying position against which the hedging position has been taken,
shall be treated under the limits mentioned in point 1.
6 Each position taken in derivatives shall have an associated exposure as
defined under. Exposure is the maximum possible loss that may occur on a
position. However, certain derivative positions may theoretically have
unlimited possible loss. Exposure in derivative positions shall be computed as
follows:
Position Exposure
Long Future Futures Price * Lot Size * Number of Contracts
Short Future Futures Price * Lot Size * Number of Contracts
Option bought Option Premium Paid * Lot Size * Number of
Contracts.
7 The Scheme may enter into plain vanilla interest rate swaps for hedging
purposes. The counter party in such transactions has to be an entity
recognized as a market maker by RBI. Further, the value of the notional
principal in such cases shall not exceed the value of respective existing assets
being hedged by the Scheme. Exposure to a single counterparty in such
transactions shall not exceed 10% of the net assets of the Scheme.
8 To reduce interest rate risk in a debt portfolio, mutual funds may hedge the
portfolio or part of the portfolio (including one or more securities) on
weighted average modified duration basis by using Interest Rate Futures
(IRFs). The maximum extent of short position that may be taken in IRFs to
hedge interest rate risk of the portfolio or part of the portfolio, is as per the
formula given below:
(Portfolio Modified Duration*Market Value of the Portfolio)
(Futures Modified Duration*Futures Prices/PAR)
9 In case the IRF used for hedging the interest rate risk has different underlying
security(s) than the existing position being hedged, it would result in imperfect
hedging.
10 Imperfect hedging using IRFs may be considered to be exempted from the
gross exposure, upto maximum of 20% of the net assets of the scheme, subject
to the following:
a. Exposure to IRFs is created only for hedging the interest rate risk based on
the weighted average modified duration of the bond portfolio or part of
the portfolio.
b. Mutual Funds are permitted to resort to imperfect hedging, without it
being considered under the gross exposure limits, if and only if, the
Axis Triple Advantage Fund 56
correlation between the portfolio or part of the portfolio (excluding the
hedged portions, if any) and the IRF is atleast 0.9 at the time of initiation of
hedge. In case of any subsequent deviation from the correlation criteria,
the same may be rebalanced within 5 working days and if not
rebalanced within the timeline, the derivative positions created for
hedging shall be considered under the gross exposure computed in terms
of Para 3 of SEBI circular dated August 18, 2010. The correlation should be
calculated for a period of last 90 days.
Explanation: If the fund manager intends to do imperfect hedging upto
15% of the portfolio using IRFs on weighted average modified duration
basis, either of the following conditions need to be complied with:
i. The correlation for past 90 days between the portfolio and the IRF is at
least 0.9 or
ii. The correlation for past 90 days between the part of the portfolio
(excluding the hedged portions, if any) i.e. at least 15% of the net asset
of the scheme (including one or more securities) and the IRF is at least
0.9.
c. At no point of time, the net modified duration of part of the portfolio being
hedged should be negative.
d. The portion of imperfect hedging in excess of 20% of the net assets of the
scheme should be considered as creating exposure and shall be included
in the computation of gross exposure in terms of Para 3 of SEBI circular
dated August 18, 2010.
11 The basic characteristics of the scheme should not be affected by hedging
the portfolio or part of the portfolio (including one or more securities) based
on the weighted average modified duration.
Explanation: In case of long term bond fund, after hedging the portfolio
based on the modified duration of the portfolio, the net modified duration
should not be less than the minimum modified duration of the portfolio as
required to consider the fund as a long term bond fund.
12 The interest rate hedging of the portfolio should be in the interest of the
investors.
21. The Scheme may write call options only under a covered call strategy for constituent
stocks of NIFTY 50 and BSE SENSEX subject to the following:
(i) The total notional value (taking into account strike price as well as premium value) of
call options written by a scheme shall not exceed 15% of the total market value of
equity shares held in that scheme.
(ii) The total number of shares underlying the call options written shall not exceed 30% of
the unencumbered shares of a particular company held in the scheme. The
unencumbered shares in a scheme shall mean shares that are not part of Securities
Lending and Borrowing Mechanism (SLBM), margin or any other kind of encumbrances.
(iii) At all points of time the Mutual Fund scheme shall comply with the provisions at
paragraph (i) and (ii) above. In case of any passive breach of the requirement at
paragraph (i), the respective scheme shall have 7 trading days to rebalance the
portfolio. During the rebalancing period, no additional call options can be written in the
said scheme.
(iv) In case the Scheme needs to sell securities on which a call option is written under a
covered call strategy, it must ensure compliance with paragraphs (i) and (ii) above
while selling the securities.
(v) In no case, the scheme shall write a call option without holding the underlying equity
shares. A call option can be written only on shares which are not hedged using other
derivative contracts.
(vi) The premium received shall be within the requirements prescribed in terms of
paragraph 5 of SEBI circular dated August 18, 2010 i.e. the total gross exposure related
to option premium paid and received must not exceed 20% of the net assets of the
scheme.
Axis Triple Advantage Fund 57
(vii) The exposure on account of the call option written under the covered call strategy shall
not be considered as exposure in terms of paragraph 3 of SEBI Circular no.
Cir/IMD/DF/11/2010 dated August 18, 2010.
22. The Scheme shall participate in repos in corporate debt securities as per the guidelines
issued by SEBI and/ or RBI from time to time and the guidelines framed by the Board of
Directors of Trustee Company and the Asset Management Company, from time to time.
At present the following conditions and norms shall apply to repo in corporate debt
securities:
(i) The gross exposure of the Scheme to repo transactions in corporate debt securities
shall not be more than 10 % of the net assets of the Scheme.
(ii) The cumulative gross exposure through repo transactions in corporate debt
securities along with equity, debt and derivatives shall not exceed 100% of the net
assets of the Scheme.
(iii) The Scheme shall participate in repo transactions only in AA and above rated
corporate debt securities.
(iv) ‘The Scheme shall borrow through repo transactions only if the tenor of the
transaction does not exceed a period of six months.
(v) The Trustee and the Asset Management Company have framed guidelines interalia
considering the following aspects:
i. Category of counterparty
ii. Credit rating of counterparty
iii. Tenor of collateral
iv. Applicable haircuts
(vi) Counterparty selection & credit rating
The counterparty must be an acceptable counterparty for debt transactions. The
Mutual Fund follows a counterparty empanelment process for fixed income
transactions and the same shall be used for selection of counterparties for
corporate bond repos. All repo transactions in corporate bonds will be governed by
a repo agreement as specified by FIMMDA and / or other specified authorities.
(vii) Collateral tenor & quality
The exposure limit/investment restrictions prescribed under the Seventh Schedule of
the Regulations and circulars issued there under (wherever applicable) shall be
applicable to repo transactions in corporate bonds. The Scheme shall further follow
guidelines framed by Trustee and the AMC from time to time.
(viii) Applicable haircuts
Currently mutual funds are permitted to carry out repo transactions in government
securities without any haircuts. The Reserve Bank of India has notified a minimum
haircut based on rating of the corporate bond and other securities. In addition, the
Fixed Income and Money Market Dealers Association (FIMMDA) would maintain a
rating-haircut matrix on an ongoing basis. The Scheme shall further follow guidelines
framed by Trustee and the AMC from time to time.
The haircuts seek to protect the lender of funds from the event of the counterparty
failing to honor the repurchase leg of the repo. In such a circumstance, the Fund
would suffer a loss if the value of the collateral depreciates by more than the
haircut. The fall in the value of the collateral could be on account of higher yields
and/ or deterioration of credit quality.
As the typical tenor of repos is short (typically overnight), the haircuts represent a
relatively high degree of safety in relation to the interest rate risk on the collateral.
The risk of collateral depreciation based on historical volatility is given in the table
below:
Bond Tenor (yrs) 1 3 5 10
Price Volatility (%) (annualized) 0.6 1.2 1.7 3.4
Repo Tenor Number of standard deviations needed to lose
10%
1 day 258 136 94 48
7 days 98 52 36 18
Axis Triple Advantage Fund 58
In the above table, the price volatility of a 10-year bond is about 3.4% annualized.
That is a 10% price move represents nearly a 3-sigma event on an annualized basis.
For overnight tenors, this represents a 48-sigma event (for comparison a 6-sigma
event occurs about once in a million observations).
It is apparent that the haircuts stipulated by RBI are more than sufficient to mitigate
interest rate risk. Credit event risk remains (the collateral could default during the
tenor of the repo). This risk is to be mitigated by ensuring that the collateral is
acceptable from a credit point of view.
The exposure limit/ investment restrictions prescribed under the Seventh Schedule of
the Regulations and circulars issued there under (wherever applicable) shall be
applicable to repo transactions in corporate bonds.
The Scheme will comply with the other Regulations applicable to the investments of
Mutual Funds from time to time.
All the investment restrictions will be applicable at the time of making investments.
The AMC/Trustee may alter these above stated restrictions from time to time to the extent
the Regulations change, so as to permit the Scheme to make its investments in the full
spectrum of permitted investments for mutual funds to achieve its respective investment
objective.
J. CREATION OF SEGREGATED PORTFOLIO
Creation of segregated portfolio shall be subject to guidelines specified by SEBI from time to
time and includes the following:
In this regard, the term ‘segregated portfolio’ shall mean a portfolio comprising of debt or
money market instrument affected by a credit event, that has been segregated in a
mutual fund scheme. The term ‘main portfolio’ shall mean the scheme portfolio excluding
the segregated portfolio. The term ‘total portfolio’ shall mean the scheme portfolio
including the securities affected by the credit event.
Credit Event
A) For rated debt or money market instruments
1) Segregated portfolio may be created, in case of a credit event at issuer level i.e.
downgrade in credit rating by a SEBI registered Credit Rating Agency (CRA), as under:
a. Downgrade of a debt or money market instrument to ‘below investment grade’, or
b. Subsequent downgrades of the said instruments from ‘below investment grade’, or
c. Similar such downgrades of a loan rating
2) In case of difference in rating by multiple CRAs, the most conservative rating shall be
considered. Creation of segregated portfolio shall be based on issuer level credit events
as mentioned above and implemented at the ISIN level.
3) Creation of segregated portfolio is optional and is at the discretion of Axis Asset
Management Company Ltd. (‘Axis AMC’/‘the AMC’)
B) For unrated debt or money market instruments
Segregated portfolio of unrated debt or money market instruments may be created
only in case of actual default of either the interest or principal amount by the issuer.
Credit event in this case shall be ‘actual default’ by the issuer of such instruments
and shall be considered for creation of segregated portfolio.
Process for Creation of Segregated Portfolio
1) On the date of credit event, the AMC shall decide on creation of segregated portfolio.
Once AMC decides to segregate portfolio, it shall:
a. seek approval of trustees prior to creation of the segregated portfolio.
Axis Triple Advantage Fund 59
b. immediately issue a press release disclosing its intention to segregate such debt and
money market instrument and its impact on the investors. Axis Mutual Fund shall
disclose that the segregation shall be subject to Trustee approval. Additionally, the
said press release shall be prominently disclosed on the website of the AMC.
c. ensure that till the time the Trustee approval is received, which in no case shall
exceed 1 business day from the day of credit event, the subscription and
redemption in the Scheme shall be suspended for processing with respect to
creation of units and payment on redemptions.
2) Once Trustee approval is received by the AMC:
a. Segregated portfolio shall be effective from the day of credit event
b. AMC shall issue a press release immediately with all relevant information pertaining
to the segregated portfolio. The said information will also be submitted to SEBI.
c. An e-mail or SMS shall be sent to all unit holders of the Scheme.
d. The NAV of both segregated and main portfolios shall be disclosed from the day of
the credit event.
e. All existing investors in the Scheme as on the day of the credit event shall be allotted
equal number of units in the segregated portfolio as held in the main portfolio.
f. No redemption and subscription shall be allowed in the segregated portfolio. AMC
shall enable listing of units of segregated portfolio on the recognized stock
exchange within 10 working days of creation of segregated portfolio and also
enable transfer of such units on receipt of transfer requests
3) If the trustees do not approve the proposal to segregate portfolio, AMC will issue a press
release immediately informing investors of the same.
Valuation
Notwithstanding the decision to segregate the debt and money market instrument, the
valuation shall take into account the credit event and the portfolio shall be valued based
on the principles of fair valuation (i.e. realizable value of the assets) in terms of the relevant
provisions of SEBI (Mutual Funds) Regulations, 1996 and circular(s) issued thereunder.
Processing of Subscription and Redemption Proceeds
All subscription and redemption requests for which NAV of the day of credit event or
subsequent day is applicable will be processed as under:
i. Upon trustees’ approval to create a segregated portfolio -
Investors redeeming their units will get redemption proceeds based on the NAV of
main portfolio and will continue to hold the units of segregated portfolio.
Investors subscribing to the Scheme will be allotted units only in the main portfolio
based on its NAV.
ii. In case trustees do not approve the proposal of segregated portfolio, subscription and
redemption applications will be processed based on the NAV of total portfolio.
Disclosure
In order to enable the existing as well as the prospective investors to take informed
decision, the following shall be adhered to:
a. A statement of holding indicating the units held by the investors in the segregated
portfolio along with the NAV of both segregated portfolio and main portfolio as on the
day of the credit event shall be communicated to the investors within 5 working days of
creation of the segregated portfolio.
b. Adequate disclosure of the segregated portfolio shall be made in all scheme related
documents, in monthly and half-yearly portfolio disclosures and in the annual report of
the mutual fund and the Scheme.
c. The Net Asset Value (NAV) of the segregated portfolio shall be declared on daily basis.
d. The information regarding number of segregated portfolios created in the Scheme shall
appear prominently under the name of the Scheme at all relevant places such as SID,
KIM-cum-Application Form, advertisement, AMC and AMFI websites, etc.
e. The Scheme performance required to be disclosed at various places shall include the
impact of creation of segregated portfolio. The Scheme performance should clearly
reflect the fall in NAV to the extent of the portfolio segregated due to the credit event
and the said fall in NAV along with recovery(ies), if any, shall be disclosed as a footnote
to the Scheme performance.
Axis Triple Advantage Fund 60
f. The disclosures at paragraph (d) and (e) above regarding the segregated portfolio shall
be carried out for a period of at least 3 years after the investments in segregated
portfolio are fully recovered/ written-off.
g. The investors of the segregated portfolio shall be duly informed of the recovery
proceedings of the investments of the segregated portfolio. Status update may be
provided to the investors at the time of recovery and also at the time of writing-off of
the segregated securities.
TER for the Segregated Portfolio
1) Axis AMC shall not charge investment and advisory fees on the segregated portfolio.
However, TER (excluding the investment and advisory fees) can be charged, on a pro-
rata basis only upon recovery of the investments in segregated portfolio.
2) The TER so levied shall not exceed the simple average of such expenses (excluding the
investment and advisory fees) charged on daily basis on the main portfolio (in % terms)
during the period for which the segregated portfolio was in existence.
3) The legal charges related to recovery of the investments of the segregated portfolio
may be charged to the segregated portfolio in proportion to the amount of recovery.
However, the same shall be within the maximum TER limit as applicable to the main
portfolio. The legal charges in excess of the TER limits, if any, shall be borne by the AMC.
4) The costs related to segregated portfolio shall in no case be charged to the main
portfolio.
Monitoring by Trustees
In order to ensure timely recovery of investments of the segregated portfolio, Trustees shall
ensure that:
a. The AMC puts in sincere efforts to recover the investments of the segregated portfolio.
b. Upon recovery of money, whether partial or full, it shall be immediately distributed to
the investors in proportion to their holding in the segregated portfolio. Any recovery of
amount of the security in the segregated portfolio even after the write off shall be
distributed to the investors of the segregated portfolio.
c. The Trustees shall monitor the compliance of this circular and disclose in the half-yearly
trustee reports filed with SEBI, the compliance in respect of every segregated portfolio
created.
In order to avoid mis-use of segregated portfolio, Trustees shall ensure to have a mechanism
in place to negatively impact the performance incentives of Fund Managers, Chief
Investment Officers (CIOs), etc. involved in the investment process of securities under the
segregated portfolio, mirroring the existing mechanism for performance incentives of the
AMC, including claw back of such amount to the segregated portfolio of the Scheme.
Risks associated with segregated portfolio
4. Investor holding units of segregated portfolio may not able to liquidate their holding till
the time recovery of money from the issuer.
5. Security comprises of segregated portfolio may not realise any value.
6. Listing of units of segregated portfolio on recognised stock exchange does not
necessarily guarantee their liquidity. There may not be active trading of units in the
stock market. Further trading price of units on the stock market may be significantly
lower than the prevailing NAV.
Illustration of segregated portfolio
The below table shows how a rated security affected by a credit event will be segregated
and its impact on investors:
Portfolio Date July 22, 2019
Downgrade
Event Date
July 22, 2019
Mr. X is holding 1,000 units of the scheme for an amount of Rs. 11,31,993.87 (1,000 *
1,131.9939)
Portfolio before downgrade event
Security Rating Type of the Quantity Market Market Value % of
Axis Triple Advantage Fund 61
security Price Per
Unit (Rs.)
(Rs.) Net
Assets
9.60% A Ltd. CRISIL AAA NCD 5,000 103.2232 5,16,116.00 45.59%
8.80% B Ltd. CRISIL AA+ NCD 2,000 99.4678 1,98,935.60 17.57%
9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 10.43%
7.70% D Ltd. CRISIL AA+ NCD 2,000 99.0000 1,98,000.00 17.49%
8.80% E Ltd. CRISIL AA NCD 500 101.2211 50,610.55 4.47%
Cash & cash
equivalents
50,321.20 4.45%
Net Assets 11,31,993.87 100.00%
Unit capital (no
of units)
1000.000
NAV (In Rs.) 1131.9939
Security
downgraded
7.70% D Ltd. from AA+ to D
Valuation
Marked down by
75.00% Valuation agencies shall be providing the valuation price post
consideration of standard haircut matrix.
Total Portfolio as on July 22, 2019
Security Rating
Type of the
security
Quantity
Market
Price Per
Unit (Rs.)
Market Value
(Rs.)
% of
Net
Assets
9.60% A Ltd. CRISIL AAA NCD 5,000 103.2232 5,16,116.00 52.45%
8.80% B Ltd. CRISIL AA+ NCD 2,000 99.4678 1,98,935.60 20.22%
9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 11.99%
7.70% D Ltd. CRISIL D NCD 2,000 25.0000 50,000.00 5.08%
8.80% E Ltd. CRISIL AA NCD 500 101.2211 50,610.55 5.14%
Cash & cash
equivalents 50,321.20 5.11%
Net Assets 9,83,993.87 100.00%
Unit capital (no
of units) 1000.000
NAV (In Rs.) 983.9939
Main Portfolio as on July 22, 2019
Security Rating Type of the
security
Quantity Market
Price Per
Unit (Rs.)
Market Value
(Rs.)
% of
Net
Assets
9.60% A Ltd. CRISIL AAA NCD 5,000 103.2232 5,16,116.00 55.26%
8.80% B Ltd. CRISIL AA+ NCD 2,000 99.4678 1,98,935.60 21.30%
9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 12.64%
8.80% E Ltd. CRISIL AA NCD 500 101.2211 50,610.55 5.42%
Cash & cash
equivalents
50,321.20 5.39%
Net Assets 9,33,993.87 100.00%
Unit capital (no
of units)
1000.000
NAV (In Rs.) 933.9939
Segregated Portfolio as on July 22, 2019
Security Rating
Type of the
security
Quantity
Market
Price Per
Unit (Rs.)
Market Value
(Rs.)
% of
Net
Assets
7.70% D Ltd. CRISIL D NCD 2,000 25.0000 50,000.00 100.00%
Net Assets 50,000.00 100.00%
Unit capital (no
of units) 1000.000
NAV (In Rs.) 50.0000
0.0000
Axis Triple Advantage Fund 62
Net impact on value of holding of Mr. X after creation of segregation
portfolio
Main Portfolio
Segregated
Portfolio
Total
Value
No. of Units 1,000 1,000
NAV (in Rs.) 933.9939 50.0000
Total Value (in
Rs.) 9,33,993.87 50,000.00 9,83,993.87
K. HOW HAS THE SCHEME PERFORMED?
Performance of Axis Triple Advantage Fund – Regular Plan – Growth Option as at October
31, 2019 is as follows:
Period
Axis Triple Advantage
Fund - Regular Plan –
Growth Option#
Benchmark^
1 year returns 20.81% 16.27%
3 year returns 7.95% 11.15%
5 year returns 8.11% 9.01%
Returns Since Inception (August 23, 2010) 8.56% 9.69%
^65% Nifty 50 TRI + 20% Nifty Composite Debt Index +15% INR Price of Gold (Benchmark)
Absolute returns for the last 5 financial years
Performance of Axis Triple Advantage Fund – Direct Plan – Growth Option as at October 31,
2019 is as follows:
Period
Axis Triple Advantage
Fund - Direct Plan –
Growth Option#
Benchmark^
1 year returns 22.14% 16.27%
3 year returns 9.22% 11.15%
5 year returns 9.27% 9.01%
Returns Since Inception (January 1, 2013) 9.02% 10.26%
^65% Nifty 50 TRI + 20% Nifty Composite Debt Index +15% INR Price of Gold (Benchmark)
Absolute returns for the last 5 financial years
Axis Triple Advantage Fund 63
#Past performance may or may not be sustained in future. Returns greater than 1 year are
compounded annualized (CAGR). Calculations are based on Growth Option NAVs.
Different plans have different expense structure.
L. INVESTMENTS BY THE AMC
Subject to the Regulations, the AMC may invest either directly or indirectly, in the Scheme
during the Ongoing Offer Period. However, the AMC shall not charge any investment
management fee on such investment in the Scheme.
M. ADDITIONAL SCHEME RELATED DISCLOSURES
a. Scheme’s portfolio holdings as on October 31, 2019:
(i) Top 10 holdings by Issuer:
Equity Instruments
Name of Issuer % of Net Assets
HDFC Bank Limited 6.21%
Bajaj Finance Limited 6.15%
Kotak Mahindra Bank Limited 5.36%
Tata Consultancy Services Limited 5.21%
Housing Development Finance Corporation Limited 3.86%
ICICI Bank Limited 3.55%
Divi's Laboratories Limited 2.91%
Bandhan Bank Limited 2.55%
Avenue Supermarts Limited 2.43%
Reliance Industries Limited 2.14%
Debt Instruments
Name of Issuer % of Net Assets
Axis Mutual Fund (Axis Gold ETF) 14.03%
LIC Housing Finance Limited 3.60%
Punjab National Bank 1.76%
Power Finance Corporation Limited 1.34%
Clearing Corporation of India Ltd 1.20%
National Bank For Agriculture and Rural Development 1.13%
India Infrastructure Fin Co Ltd 0.96%
Union Bank of India 0.88%
REC Limited 0.37%
Hindalco Industries Limited 0.19%
(ii) Fund allocation towards various Sectors:
Sector % of Net Assets
Financial services 39.74%
Others^ 15.23%
Axis Triple Advantage Fund 64
IT 8.83%
Consumer goods 8.26%
Automobile 5.49%
Pharma 3.96%
Chemicals 3.39%
Cash & cash equivalent 3.37%
Energy 2.51%
Construction 1.86%
Fertilisers & pesticides 1.79%
Textiles 1.63%
Cement & cement products 1.58%
Services 1.34%
Industrial manufacturing 0.75%
Metals 0.19%
Government of India 0.08%
Total 100%
^TREPS/Mutual Fund Units/Repo
Please visit www.axismf.com to obtain Scheme’s latest monthly portfolio holding statement.
b. Portfolio Turnover
Portfolio turnover ratio for the one year period ended October 31, 2019: 1.18 times*
(*Based on equity, equity derivatives and Fixed Income Securities transactions only.
CBLO/Repo/FD/Margin FD/MFU/SLB are not considered.)
c. Aggregate investment in the Scheme of certain categories of persons:
Sr.
No.
Category of Persons Net Asset Value of Units held as on
October 31, 2019 (in Rs.)
i AMC’s Board of Directors Nil
ii Concerned scheme’s Fund Manager(s) Nil
iii Other key managerial personnel 6,62,254.12
Note:
1. Investment of Managing Director & Chief Executive Officer of AMC, if any, is included in
investments of “Other key managerial personnel”.
2. Investment of Fund Manager of the Scheme is not included in investments of “Other key
managerial personnel”.
Axis Triple Advantage Fund 65
III. UNITS AND OFFER
This section provides details you need to know for investing in the Scheme.
A. NEW FUND OFFER (NFO)
New Fund Offer Period
This is the period during
which a new scheme
sells its Units to the
investors.
The New Fund Offer opened on June 30, 2010 and closed on July 29,
2010. The units under the Scheme were allotted on August 23, 2010.
New Fund Offer Price:
This is the price per Unit
that the investors have
to pay to invest during
the NFO.
Not Applicable
Minimum Amount for
Application /Switch in in
the NFO
Not Applicable
Minimum Target amount
Not Applicable
Maximum amount to be
raised (if any)
Not Applicable
Plans / Options offered The Scheme offers the following Plans:
1. Axis Triple Advantage Fund – Regular Plan
2. Axis Triple Advantage Fund – Direct Plan
Each Plan offers the following options:
a) Growth Option
b) Dividend Option.
1. Dividend Payout Facility
2. Dividend Reinvestment Facility
a) Growth Option
Dividends will not be declared under this Option. The income
attributable to Units under this Option will continue to remain invested
in the Scheme and will be reflected in the Net Asset Value of Units
under this Option.
b) Dividend Option
Under this Option, dividends will be declared at the discretion of the
Trustee, subject to availability of distributable surplus calculated in
accordance with SEBI (MF) Regulations. On payment of dividend, the
NAV of the units under Dividend option will fall to the extent of the
dividend payout and applicable statutory levies,
if any.
It must be distinctly understood that the actual declaration of
dividend and frequency thereof is at the sole discretion of Board of
Directors of the Trustee Company. There is no assurance or guarantee
to the Unit holders as to the rate of dividend distribution nor that the
dividend will be paid regularly.
Dividend Payout Facility
Under this facility, dividend declared, if any, will be paid (subject to
deduction of dividend distribution tax and statutory levy, if any) to
Axis Triple Advantage Fund 66
those Unit holders, whose names appear in the register of Unit holders
on the notified record date.
Dividend Reinvestment Facility
Under this facility, the dividend due and payable to the Unit holders
will be compulsorily and without any further act by the Unit holder,
reinvested in the Dividend option at a price based on the prevailing
ex-dividend Net Asset Value per Unit. The amount of dividend re-
invested will be net of tax deducted at source, wherever applicable.
The dividends so reinvested shall constitute a constructive payment of
dividends to the Unit holders and a constructive receipt of the same
amount from each Unit holder for reinvestment in Units.
On reinvestment of dividends, the number of Units to the credit of Unit
holder will increase to the extent of the dividend reinvested divided
by the Applicable NAV. There shall, however, be no Load on the
dividend so reinvested.
Default Plan
The investor must clearly specify his choice of plan. Investors
subscribing under Direct Plan of a Scheme will have to indicate
“Direct Plan” against the Scheme name in the application form.
Investors should also indicate “Direct” in the ARN column of the
application form. The investors may refer to the following table for
applicability of Direct Plan/ Regular Plan under different scenario :-
Scenario Broker Code mentioned
by the investor
Plan mentioned
by the investor
Default Plan to be
captured
1 Not mentioned Not mentioned Direct Plan
2 Not mentioned Direct Direct Plan
3 Not mentioned Regular Direct Plan
4 Mentioned Direct Direct Plan
5 Direct Not Mentioned Direct Plan
6 Direct Regular Direct Plan
7 Mentioned Regular Regular Plan
8 Mentioned Not Mentioned Regular Plan
In cases of wrong/ invalid/ incomplete ARN codes mentioned on the
application form, the application shall be processed under Regular
Plan. The AMC shall contact and obtain the correct ARN code within
30 calendar days of the receipt of the application form from the
investor/ distributor. In case, the correct code is not received within 30
calendar days, the AMC shall reprocess the transaction under Direct
Plan from the date of application without any exit load.
Default Option/Facility
The investor must clearly specify his choice of option/facility. In the
absence of such clear instruction, it will be assumed that the investor
has opted for ‘default’ option / facility and the application will be
processed accordingly. The default option / facility are:
Default Option: Growth (between Growth and Dividend)
Default Facility: Dividend Reinvestment facility (between Dividend
Reinvestment and Dividend Payout facility)
Default Plan – Redemption application -
Where Units under a Scheme are held under both Plans and the
redemption / Switch request pertains to the Direct Plan, the same
must clearly be mentioned on the request (along with the folio
Axis Triple Advantage Fund 67
number), failing which the request would be processed from Axis
Triple Advantage Fund – Regular Plan. However, where Units under
the requested Option are held only under one Plan, the request
would be processed under such Plan.
Dividend Policy Under the Dividend option, the Trustee will have the discretion to
declare the dividend, subject to availability of distributable surplus
calculated in accordance with the Regulations. The actual
declaration of dividend and frequency will inter-alia, depend on
availability of distributable 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.
The AMC/Trustee reserves the right to change the frequency of
declaration of dividend or may provide for additional frequency for
declaration of dividend.
Dividend Distribution Procedure
In accordance with SEBI circular no. SEBI/ IMD/ Cir No. 1/ 64057/06
dated April 4, 2006, the procedure for Dividend distribution would be
as under:
1. Quantum of dividend and the record date will be fixed by the
Trustee. Dividend so decided shall be paid, subject to availability
of distributable surplus.
2. Within one calendar day of decision by the Trustee, the AMC shall
issue notice to the public communicating the decision about the
dividend including the record date, in one English daily
newspaper having nationwide circulation as well as in a
newspaper published in the language of the region where the
head office of the Mutual Fund is situated.
3. Record date shall be the date, which will be considered for the
purpose of determining the eligibility of investors whose names
appear on the register of Unit holders for receiving dividends. The
Record Date will be 5 calendar days from the date of issue of
notice.
4. The notice will, in font size 10, bold, categorically state that
pursuant to payment of dividend, the NAV of the Scheme would
fall to the extent of payout and statutory levy (if applicable).
5. The NAV will be adjusted to the extent of dividend distribution
and statutory levy, if any, at the close of business hours on record
date.
6. Before the issue of such notice, no communication indicating the
probable date of dividend declaration in any manner whatsoever
will be issued by Mutual Fund.
Allotment Not Applicable
Refund Not Applicable
Who can invest
This is an indicative list
and you are requested
to consult your financial
advisor to ascertain
whether the scheme is
suitable to your risk
profile.
The following persons (subject to, wherever relevant, purchase of unit
of mutual funds, being permitted under respective constitutions, and
relevant statutory regulations) are eligible and may apply for
Subscription to the Unit of the Scheme:
1. Resident adult individuals either singly or jointly (not exceeding
three) or on an Anyone or Survivor basis;
2. Hindu Undivided Family (HUF) through Karta;
3. Minor (as the first and the sole holder only) through a natural
guardian (i.e. father or mother, as the case may be) or a court
appointed legal guardian. There shall not be any joint holding with
minor investments;
4. Partnership Firms;
5. Limited Liability Partnerships;
Axis Triple Advantage Fund 68
6. Proprietorship in the name of the sole proprietor;
7. Companies, Bodies Corporate, Public Sector Undertakings (PSUs.),
Association of Persons (AOP) or Bodies of Individuals (BOI) and
societies registered under the Societies Registration Act, 1860 (so
long as the purchase of Unit is permitted under the respective
constitutions);
8. Banks (including Co-operative Banks and Regional Rural Banks)
and Financial Institutions;
9. Religious and Charitable Trusts, Wakfs or endowments of private
trusts (subject to receipt of necessary approvals as "Public
Securities" as required) and Private trusts authorised to invest in
mutual fund schemes under their trust deeds;
10. Non-Resident Indians (NRIs) / Persons of Indian origin (PIOs) /
Overseas Citizen of India (OCI) residing abroad on repatriation
basis or on non-repatriation basis;
11. Foreign Portfolio Investor (FPI) registered with SEBI on repatriation
basis. These investments shall be subject to the conditions
prescribed by SEBI, RBI, Income Tax authorities and the AMC, from
time to time;
12. Army, Air Force, Navy and other para-military units and bodies
created by such institutions;
13. Scientific and Industrial Research Organisations;
14. Multilateral Funding Agencies / Bodies Corporate incorporated
outside India with the permission of Government of India / RBI
15. Provident/ Pension/ Gratuity Fund to the extent they are
permitted;
16. Other schemes of Axis Mutual Fund or any other mutual fund
subject to the conditions and limits prescribed by SEBI (MF)
Regulations;
17. Schemes of Alternative Investment Funds;
18. Trustee, AMC or Sponsor or their associates may subscribe to Units
under the Scheme(s);
19. Such other category of person(s) permitted to make investments
and as may be specified by the AMC / Trustee from time to time.
Subject to SEBI (Mutual Funds) Regulations, 1996, any application for
subscription of units may be accepted or rejected in the sole and
absolute discretion of the AMC/ Trustee company. The AMC/ Trustee
company may also reject any application for subscription of units if
the application is invalid, incomplete, or if the AMC/ Trustee company
for any other reason does not believe that it would be in the interest
of the scheme or its unitholders to accept such an application.
Email ID & Mobile Number
Investors should provide their own email address and mobile number
to enable Axis AMC for speed and ease of communication in a
convenient and cost-effective manner, and to help prevent
fraudulent transactions.
Ultimate Beneficial Ownership details:
SEBI vide its circular no. CIR/MIRSD/2/2013 dated January 24, 2013
further read with AMFI Best practices guidelines circular no. 62/2015-16
dated September 18, 2015 and other applicable regulations has
prescribed guidelines, for identification of Beneficial Ownership to be
followed by the intermediaries. A ‘Beneficial owner’ is defined as a
natural person or persons who ultimately own, control or influence a
client and/or persons on whose behalf a transaction is being
conducted, and includes a person who exercises ultimate effective
control over a legal person or arrangement. In this regard, all
categories of investors (including all new / existing investors /
Axis Triple Advantage Fund 69
unitholders) (except individuals, companies listed on a stock
exchange or majority-owned subsidiary of such companies) are
mandatorily required to provide beneficial ownership details for all
investments. Failing which, fund reserves the right to reject
applications / subscription requests / additional subscription requests
(including switches) / restrict further investments or seek additional
information from investors who have not provided the requisite
information on beneficial ownership. In the event of change in
beneficial ownership, investors are requested to immediately update
the details with the Fund/Registrar.
Foreign Account Tax Compliance Act and Common Reporting
Standards requirements
As a part of various ongoing tax and regulatory developments around
the globe [e.g. information exchange laws such as Foreign Account
Tax Compliance Act (‘FATCA’) and Common Reporting Standard
(‘CRS')], financial institutions like Axis Mutual Fund (‘Axis MF’ or ‘the
Fund’) are being cast with additional investor and counterparty
account related due diligence requirements.
The Central Board of Direct Taxes (CBDT) has notified Rules 114F to
114H, as part of the Income-tax Rules, 1962, which Rules require Indian
financial institutions such as the Banks, Mutual Funds, etc. to seek
additional personal, tax and beneficial owner information and certain
certifications and documentation from all our investors and
counterparties. According to the FATCA-CRS Rules, financial
institutions in India are required to report tax information about
account holders that are tax resident of U.S. and other foreign
countries, to the CBDT/ Indian Government which will, in turn, relay
that information to the US Internal Revenue Service (IRS) and
governments of other foreign countries.
These developments have resulted in compliance and reporting
obligations on Financial Institutions like Axis MF. In relevant cases,
information will have to be reported to tax authorities/appointed
agencies. Towards compliance, the Fund may also be required to
provide information to any institutions such as withholding agents for
the purpose of ensuring appropriate withholding from the account or
any proceeds in relation thereto. As may be required by domestic or
overseas regulators/ tax authorities, we may also be constrained to
withhold and pay out any sums from your account or close or
suspend your account(s). Axis MF may also have to comply with other
similar laws as and when applicable.
Prospective investors and Unit holders will therefore be required to
comply with the request of the Fund to furnish such information /
documentation / declarations as and when deemed necessary by
the Investment Manager in accordance with Applicable Laws. In
case prospective investor / Unit holder fails to furnish the relevant
information / documentation / declarations in accordance with
Applicable Laws, the Fund reserves the right to reject the application
or redeem the Units held directly or beneficially and may also require
reporting of such accounts and/or levy of withholding tax on
payments made to the Unit holders / investor and/or take any other
action/s in accordance with Applicable Laws. FATCA-CRS provisions
are relevant not only at on-boarding stage of Unit holders but also
throughout the life cycle of investment with the Fund. Unit holders
therefore should intimate to the Fund/the Investment Manager, any
change in their status with respect to any FATCA-CRS related
information / documentation / declarations provided by them
previously, including but not limited to any declarations provided in
Axis Triple Advantage Fund 70
respect of residency of the Unit holders for tax purposes promptly, i.e.
within 30 days. Further, if the Fund and/or the Investment Manager is
required by Applicable Laws, to provide information regarding the
Fund and/or the unit holders / investors to any regulatory authority
and/or the Fund Investments and/or income therefrom, and the Fund
and/or the Investment Manager complies with such request in good
faith, whether or not it was in fact enforceable, they shall not be liable
to the Unit holders / investors or to any other party as a result of such
compliance or in connection with such compliance.
Prospective investors / Unit holders should consult their own advisors to
understand the implications of FATCA-CRS provisions/requirements.
Please note that Axis MF will be unable to provide advice to any
investor or counterparty about their tax status or FATCA/CRS
classification relevant to their account. It is the responsibility of the
investor or counterparty to ensure that they record their correct tax
status / FATCA/ CRS classification. Investor/ counterparty may seek
advice from their tax advisor in this regard. The onus to provide
accurate, adequate and timely inputs in this regard would be that of
the investor or counterparty. Any changes in earlier information
provided must be intimated within 30 days of such change.
Investors are requested to provide all the necessary information /
declarations to facilitate compliance, considering India’s
commitment to implement CRS and FATCA under the relevant
international treaties.
Implementation of KYC requirements:
SEBI vide circular no. MIRSD/SE/Cir-21/2011 dated October 5, 2011
had mandated (i) Standard KYC form with uniform KYC guidelines
and supporting documents to be used by SEBI registered
intermediaries and (ii) Centralized KYC registration through KYC
Registration Agencies (KRAs) registered with SEBI, w.e.f. January 1,
2012, to bring about uniform KYC process in the securities market,
based on SEBI prescribed norms and the KYC details are shared with
all SEBI registered intermediaries by the KRAs.
Subsequently, SEBI, vide its circular no. MIRSD/Cir-5/2012 dated April
13, 2012 advised various intermediaries to upload KYC data of its
existing customers into the KRA system. While uploading KYC data into
the KRA system, intermediaries were also required to highlight such
‘Missing/Not Available’ KYC information of a customer, which was
either not required or not taken previously, but was mandatory as per
uniform KYC guidelines issued by SEBI.
In accordance with AMFI best practices guidelines circular no.
62/2015-16 dated September 18, 2015, it is mandatory for all
new/existing investors to provide additional KYC information such as
Income details, Occupation, association with politically exposed
person, net worth etc. as mentioned in the application form.
Subscription requests, without providing these details, are liable to be
rejected. No subscriptions (whether fresh or additional) and switches
pertaining to ‘KYC on-hold’ cases are accepted, unless the investor /
unitholder also submits relevant KYC missing / updated information,
which is appropriately updated on the KRA - KYC.
Further, it is mandatory for existing customers to complete In-Person
Verification process and provide the missing KYC information failing
which their applications / transaction requests for additional
subscription (including switches) is liable to be rejected.
Axis Triple Advantage Fund 71
Central KYC Process
Central Registry of Securitisation and Asset Reconstruction and
Security interest of India (‘CERSAI’) has been authorised by
Government of India to act as Central KYC Records Registry under
Prevention of Money-Laundering (Maintenance of Records) Rules,
2005 (‘PMLA Rules’).
SEBI vide its circular no. CIR/MIRSD/66/2016 dated July 21, 2016 and
circular no. CIR/MIRSD/120/2016 dated November 10, 2016 has
prescribed that the Mutual Fund/ AMC should capture KYC
information for sharing with CKYCR as per the KYC template
prescribed by CERSAI for uniform and smooth implementation of
CKYC norms for onboarding of new investors in Mutual Funds.
In accordance with the aforesaid SEBI circulars and AMFI best
practice guidelines for implementation of CKYC norms with effect
from February 1, 2017:
a) Individual investors who have never done KYC process under KRA
regime i.e. a new investor who is new to KRA system and whose
KYC is not registered or verified in the KRA system shall be required
to provide KYC details in the CKYC Form to the Mutual Fund/
AMC.
b) Individual investor who fills old KRA KYC Form, should provide
additional / missing information using Supplementary KYC Form or
fill CKYC Form. The said form is available on Axis Mutual Fund
website www.axismf.com.
c) Details of investors shall be uploaded on the system of CKYCR and
a 14 digit unique KYC Identification Number (‘KIN’) will be
generated for such customer.
d) New investors, who have completed CKYC process & have
obtained KIN may quote their KIN in the application form instead
of submitting CKYC Form/ Supplementary KYC Form.
e) AMC/ Mutual Fund shall use the KIN of the investor to download
the KYC information from CKYCR system and update its records.
f) If the PAN of investor is not updated on CKYCR system, the
investor should submit self-certified copy of PAN card to the
Mutual Fund/ AMC.
The AMC reserves the right to reject transaction application in case
the investor(s) fails to submit information and/or documentation as
mentioned above. In the event of non-compliance of KYC
requirements, the Trustee / AMC reserves the right to freeze the folio of
the investor(s).
Submission of Aadhar Number
Pursuant to requirement under Prevention of Money Laundering
(Maintenance of Records) Rules, 2005 as amended from time to time,
proof of possession of Aadhar can be accepted as a valid document
for proof of address or proof of identity of investors, provided the
investor redact or blackout his Aadhar number while submitting the
applications for investments.
The aforesaid guidelines will be subject to change as per the
directives issued by the concerned regulatory/ government authority
from time to time.
For further details refer to SAI.
Who cannot invest 1. Any individual who is a foreign national or any other entity that is
not an Indian resident under the Foreign Exchange Management
Act, 1999 (FEMA Act) except where registered with SEBI as a FPI or
Axis Triple Advantage Fund 72
otherwise explicitly permitted under FEMA Act/ by RBI/ by any
other applicable authority.
2. Pursuant to RBI A.P. (DIR Series) circular no. 14 dated September
16, 2003, Overseas Corporate Bodies (OCBs) cannot invest in
Mutual Funds.
3. NRIs residing in Non-Compliant Countries and Territories (NCCTs) as
determined by the Financial Action Task Force (FATF), from time to
time.
4. U.S. Persons and Residents of Canada as defined under the
applicable laws of U.S. and Canada except the following:
a. subscriptions received by way of lump sum / switches
/systematic transactions received from Non-resident Indians
(NRIs) / Persons of Indian origin (PIO) / Overseas Citizen of India
(OCI) who at the time of such investment, are present in India
and
b. FPIs
These investors need to submit a physical transaction request
along with such documents as may be prescribed by the AMC/
the Trustee/ the Fund from time to time.
The AMC reserves the right to put the transaction requests on
hold/reject the transaction request/reverse allotted units, as the
case may be, as and when identified by the AMC, which are not
in compliance with the terms and conditions notified in this
regard.
The Trustee / the AMC /the Fund reserve the right to change/
modify the above provisions at a later date.
5. Such other persons as may be specified by AMC from time to
time.
Where can you submit
the filled up
applications.
Not Applicable
How to Apply Please refer to the SAI and Application form for the instructions.
Listing The Scheme is an open ended scheme under which Sale and
Repurchase will be made on a continuous basis and therefore listing
on stock exchanges is not envisaged. However, the Trustee reserves
the right to list the Units as and when considered necessary in the
interest of Unit holders of the Fund.
Special Products /
facilities available during
the NFO
Not Applicable
The policy regarding
reissue of repurchased
Units, including the
maximum extent, the
manner of reissue, the
entity (the scheme or
the AMC) involved in the
same.
Units once redeemed will be extinguished and will not be reissued.
Restrictions, if any, on
the right to freely retain
or dispose of Units being
offered.
Pledge of Units
The Unit under the Scheme (subject to completion of Lock in Period, if
any) may be offered as security by way of a pledge / charge in
favour of scheduled banks, financial institutions, non-banking finance
companies (NBFCs), or any other person. The AMC and / or the ISC
will note and record such Pledged Units. The AMC shall mark a lien
only upon receiving the duly completed form and documents as it
may require. Disbursement of such loans will be at the entire discretion
of the bank / financial institution / NBFC or any other person
concerned and the Mutual Fund assumes no responsibility thereof.
Axis Triple Advantage Fund 73
The Pledger will not be able to redeem Units that are pledged until
the entity to which the Units are pledged provides written
authorisation to the Mutual Fund that the pledge / lien charge may
be removed. As long as Units are pledged, the Pledgee will have
complete authority to redeem such Units. Dividends declared on Units
under lien will be paid / re-invested to the credit of the Unit Holder
and not the lien holder unless specified otherwise in the lien letter.
Lien on Units
On an ongoing basis, when existing and new Investors make
Subscriptions, a lien on Units allotted will be created and such unit
shall not be available for redemption until the payment proceeds are
realised by the Scheme. In case a unit holder redeems units soon after
making purchases, the redemption cheque will not be dispatched
until sufficient time has elapsed to provide reasonable assurance that
cheques or drafts for Units purchased have been cleared.
In case the cheque / draft is dishonoured by the bank, the transaction
shall be reversed and the Units allotted earlier shall be cancelled, and
a fresh Account Statement / Confirmation slip shall be dispatched to
the Unit holder. For NRIs, the Scheme may mark a lien on Units in case
documents which need to be submitted are not given in addition to
the application form and before the submission of the redemption
request. However, the AMC reserves the right to change operational
guidelines for lien on Units from time to time.
Suspension/Restriction on Redemption of Units of the Scheme
Subject to the approval of the Boards of the AMC and of the Trustee
and subject also to necessary communication of the same to SEBI, the
redemption of / switch-out of Units of Scheme, may be temporarily
suspended/ restricted. In accordance with SEBI circular no.
SEBI/HO/IMD/DF2/CIR/P/2016/57 dated May 31, 2016 and subject to
prevailing regulations, restriction on/suspension of redemptions /
switch-out of Units of the Scheme, may be imposed when there are
circumstances leading to systemic crisis or event that severely
constricts market liquidity or the efficient functioning of markets such
as:
a) Liquidity issues: when market at large becomes illiquid affecting
almost all securities rather than any issuer specific security;
b) Market failures, exchange closures: when markets are affected by
unexpected events which impact the functioning of exchanges or
the regular course of transactions. Such unexpected events could
also be related to political, economic, military, monetary or other
emergencies;
c) Operational issues: when exceptional circumstances are caused
by force majeure, unpredictable operational problems and
technical failures (e.g. a black out).
Restriction on / suspension of redemption of Units of the Scheme may
be imposed for a specified period of time not exceeding 10 working
days in any 90 days period.
When restriction on / suspension of redemption of Units of the Scheme
is imposed, the following procedure shall be applied
i. No redemption / switch-out requests upto Rs. 2 lakhs shall be
subject to such restriction.
ii. Where redemption / switch-out requests are above Rs. 2 lakhs, the
AMC shall redeem the first Rs. 2 lakhs without such restriction and
remaining part over and above Rs. 2 lakhs shall be subject to such
restriction.
Axis Triple Advantage Fund 74
In addition to the above, the AMC / Trustee may restrict / suspend
redemptions / switch-out of Units of the Scheme pursuant to direction/
approval of SEBI.
In case of any of the above eventualities, the general time limits for
processing requests for redemption of Units will not be applicable.
Also refer to the paragraph ‘Suspension of Purchase and Redemption
of Units’ in the Statement of Additional Information.
Third Party Payment
Avoidance
and additional
documents /
declaration required
Please refer SAI for details.
Cash Investments in
mutual funds
In order to help enhance the reach of mutual fund products amongst
small investors, who may not be tax payers and may not have
PAN/bank accounts, such as farmers, small
traders/businessmen/workers, SEBI has permitted receipt of cash
transactions for fresh purchases/ additional purchases to the extent of
Rs. 50,000/- per investor, per mutual fund, per financial year subject to:
i. compliance with Prevention of Money Laundering Act, 2002 and
Rules framed there under; the SEBI Circular(s) on Anti Money
Laundering (AML) and other applicable Anti Money Laundering Rules,
Regulations and Guidelines; and
ii. sufficient systems and procedures in place.
However, payment towards redemptions, dividend, etc. with respect
to aforementioned investments shall be paid only through banking
channel.
The Fund/ AMC is currently in the process of setting up appropriate
systems and procedures for the said purpose. Appropriate notice shall
be displayed on its website viz. as well as at the Investor Service
Centres, once the facility is made available to the investors.
B. ONGOING OFFER DETAILS
Default Plan/ Option
The investors may refer to the paragraph under New Fund offer
Section for applicability of Direct Plan/ Regular Plan under different
scenario.
Ongoing Offer Period
This is the date from
which the scheme will
reopen for
subscriptions/redemptio
ns after the closure of
the NFO period.
The Scheme has reopened for continuous subscription and
redemption from August 28, 2010.
Ongoing price for
subscription
(purchase)/switch-in
(from other
schemes/plans of the
mutual fund) by
investors.
This is the price you
need to pay for
purchase/switch-in.
At the Applicable NAV
SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30,
2009 has decided that there shall be no entry Load for all Mutual Fund
Schemes. Hence, no entry load is levied for subscription transactions
by the Scheme.
Methodology of calculating subscription price:
Subscription Price = Applicable NAV*(1+Entry Load, if any)
Example: If the Applicable NAV is Rs. 10, Entry Load is NIL then the
subscription price will be:
= Rs. 10* (1+NIL)
= Rs. 10
Ongoing price for At the Applicable NAV subject to prevailing Exit Load.
Axis Triple Advantage Fund 75
redemption (sale)
/switch outs (to other
schemes/plans of the
Mutual Fund) by
investors.
This is the price you will
receive for
redemptions/switch
outs.
Ongoing price for redemption /Switch out (to other Schemes/Plans of
the Mutual Fund) is price which a Unit holder will receive for
redemption/Switch-outs. During the continuous offer of the Scheme,
the Unit holder can redeem the Units at Applicable NAV, subject to
payment of Exit Load, if any. It will be calculated as follows:
Methodology of calculating repurchase price:
Redemption Price = Applicable NAV*(1-Exit Load, if any)
Example: If the Applicable NAV is Rs. 10, Exit Load is 2% then
redemption price will be:
= Rs. 10* (1-0.02)
= Rs. 9.80
Investors/Unit holders should note that the AMC/Trustee has right to
modify existing Load structure and to introduce Loads subject to a
maximum limits prescribed under the SEBI Regulations.
Any change in Load structure will be effective on prospective basis
and will not affect the existing Unit holder in any manner.
However, the Mutual Fund will ensure that the Redemption Price will
not be lower than 93% of the Applicable NAV provided that the
difference between the Redemption Price and the Subscription
/Purchase Price at any point in time shall not exceed the permitted
limit as prescribed by SEBI from time to time, which is currently 7%
calculated on the Subscription/ Purchase Price. The Purchase Price
shall be at applicable NAV.
Cut off timing for
subscriptions/
redemptions/ switches
This is the time before
which your application
(complete in all
respects) should reach
the official points of
acceptance.
Subscriptions/Purchases including Switch - ins:
The following cut-off timings shall be observed by the Mutual Fund in
respect of purchase of units of the Scheme and the following NAVs
shall be applied for such purchase:
1. where the application is received upto 3.00 pm with a local
cheque or demand draft payable at par at the place where it is
received – closing NAV of the day of receipt of application;
2. where the application is received after 3.00 pm with a local
cheque or demand draft payable at par at the place where it is
received – closing NAV of the next Business Day;
3. where the application is received with an outstation cheque or
demand draft which is not payable at par at the place where it is
received – closing NAV of day on which the cheque or demand
draft is credited.
4. In respect of purchase of units with amount equal to or more than
Rs. 2 lakhs, irrespective of the time of receipt of application, the
closing NAV of the day on which the funds are available for
utilization shall be applicable.
For allotment of units in respect of purchase in the Scheme under Pt.
(4) above, it shall be ensured that:
i. Application is received before the applicable cut-off time
ii. Funds for the entire amount of subscription/purchase as per the
application are credited to the bank account of the Scheme
before the cut-off time.
iii. The funds are available for utilization before the cut-off time
without availing any credit facility whether intra-day or otherwise,
by the Scheme.
For allotment of units in respect of switch-in to the Scheme under Pt.
(4) above from other schemes, it shall be ensured that:
i. Application for switch-in is received before the applicable cut-off
time.
Axis Triple Advantage Fund 76
ii. Funds for the entire amount of subscription/purchase as per the
switch-in request are credited to the bank account of the Scheme
before the cut-off time.
iii. The funds are available for utilization before the cut-off time
without availing any credit facility whether intra-day or otherwise,
by the Scheme.
Redemptions including Switch - outs:
The following cut-off timings shall be observed by the Mutual Fund in
respect of Repurchase of units:
a. where the application received upto 3.00 pm – closing NAV of the
day of receipt of application; and
b. an application received after 3.00 pm – closing NAV of the next
Business Day.
The above mentioned cut off timing shall also be applicable to
transactions through the online trading platform.
In case of Transaction through Stock Exchange Infrastructure, the
Date of Acceptance will be reckoned as per the date & time; the
transaction is entered in stock exchange’s infrastructure for which a
system generated confirmation slip will be issued to the investor.
Where can the
applications for
purchase/redemption
switches be submitted?
Refer Back Cover Page
Minimum amount for
purchase/redemption/s
witches
Minimum amount for purchase/Switch in
Rs. 5,000 and in multiples of Re 1/- thereafter
Minimum Additional Purchase Amount
Rs.100 and in multiples of Re. 1/- thereafter
Minimum Redemption Amount/Switch Out
There will be no minimum redemption criterion. The Redemption /
Switch-out would be permitted to the extent of credit balance in the
Unit holder’s account of the Plan(s) / Option(s) of the Scheme
(subject to completion of Lock-in period or release of pledge / lien or
other encumbrances). The Redemption / Switch-out request can be
made by specifying the rupee amount or by specifying the number of
Units of the respective Plan(s) / Option(s) to be redeemed. In case a
Redemption / Switch-out request received is for both, a specified
rupee amount and a specified number of Units of the respective
Plan(s)/ Option(s), the specified number of Units will be considered the
definitive request. In case the value / number of available units held in
the Unit holder’s folio / account under the Plan / Option of the
Scheme is less than the amount / number of units specified in the
redemption / switch-out request, then the transaction shall be treated
as an all units redemption and the entire balance of available Units in
the folio / account of the Unit holder shall be redeemed.
In case of Units held in dematerialized mode, the Unit Holder can give
a request for Redemption only in number of Units which can be
fractional units also. Depository participants of registered Depositories
can process only redemption request of units held in demat form.
The AMC/ Trustee reserves the right to change/ modify the terms of
minimum redemption amount/switch-out provision offered under the
Scheme of the Fund
Minimum balance to be Currently, there is no minimum balance requirement.
Axis Triple Advantage Fund 77
maintained and
consequences of non-
maintenance.
However, the AMC / Trustee may decide to introduce minimum
balance requirements later, if they so deem fit. In such case, in the
event of non-maintenance of minimum balance for any particular
situations, the Units may be compulsorily redeemed.
In case balance in the account of the Unit holder does not cover the
amount of Redemption request, then the Mutual Fund is authorized to
redeem all the Units in the folio and send the Redemption proceeds
to the Unit holder.
Special Products
available
SYSTEMATIC INVESTMENT Plan (SIP)
Unit holder can enroll for the SIP facility by submitting duly completed
Enrolment Form at the Official Point(s) of Acceptance. An Investor
shall have the option of choosing any date of the Month as his SIP
date other than 29th, 30th, or 31st of a month. Minimum amount and
minimum installments for monthly and yearly frequency under SIP
Facility is as follows:
Frequency
under SIP Facility
Minimum
Installments
Minimum SIP amount
Monthly
6 Installments Rs. 1,000/- and in
multiple of Re. 1/-
Yearly 3 Installments Rs. 12,000/- and in
multiple of Re. 1/-
If the SIP period is not specified by the unit holder then the SIP
enrolment will be deemed to be for perpetuity and processed
accordingly.
In case of SIP investments, where the entire installment amount is not
available, the SIP for that month would be rejected. Allocation to a
particular scheme or pro – rata allocation to schemes will not be
carried out.
i. SIP through post-dated cheques
The date of the first cheque shall be the same as the date of the
application while the remaining cheques shall be postdated
cheques which shall be dated uniformly. Investors can invest in SIP
by providing post-dated cheques to Official Point(s) of
Acceptance. An Investor is eligible to issue only one cheque for
each month in the same SIP enrolment form. All SIP cheques should
be of the same amount and same date option. Cheques should be
drawn in favour of the Fund and “A/c Payee only”. A Letter will be
forwarded to the Investor on successful registration of SIP. The Post
Dated cheques will be presented on the dates mentioned on the
cheque and subject to realization of the cheque.
ii. SIP through National Automated Clearing House (NACH)
Platform/Direct Debit facility
Investors / Unit holders may enroll for SIP Direct Debit Facility
available with specified Banks / Branches. In order to enroll for SIP
Direct Debit Facility, an investor must fill-up the Application Form for
SIP Direct Debit facility.
In case of SIP with payment mode as Direct Debit, Investors shall be
required to submit a cancelled cheque or a photocopy of a
cheque of the bank account for which the debit mandate is
provided with first installment through cheque. The SIP facility will
also be available through standing instructions/direct debit given
by the investor (with all payment installments being made through
standing instructions/direct debit). However, the SIP facility with
direct debit will be available through selected Banks. The Asset
Axis Triple Advantage Fund 78
Management Company reserves the right to add/modify/delete
from the list of banks through whom such facility will be available to
the investors.
The unit holders can also make payment of SIP instalments through
NACH facility. NACH is a centralized system, launched by National
Payments Corporation of India (NPCI) with an aim to consolidate
multiple NACH mandates. This facility will enable the unit holders of
the Fund to make SIP investments through NACH by filling up the SIP
Registration cum mandate form. A Unique number will be allotted
to every mandate registered under NACH called as Unique
Mandate Reference Number (“UMRN”) which can be used for SIP
transactions. The NACH facility shall be available subject to terms
and conditions contained in the SIP registration Mandate Form and
as prescribed by NPCI from time to time.
All SIP cheques/payment instructions should be of the same amount
and same date (excluding first cheque). However, there should be a
gap of 30 days between first SIP Installment and the second
installment in case of SIP started during ongoing offer.
Investors will have the right to discontinue the SIP facility at any time
by sending a written request to any of the Official Point(s) of
Acceptance. Notice of such discontinuance should be received at
least 20 days prior to the due date of the next debit. On receipt of
such request, the SIP facility will be terminated. It is clarified that if the
Fund fails to get the proceeds from three Installments out of a
continuous series of Installments submitted at the time of initiating a
SIP, the SIP is deemed as discontinued.
Units will be allotted at the Applicable NAV of the respective dates on
which the investments are sought to be made. In case the date falls
on a Holiday or falls during a Book Closure period, the immediate next
Business Day will be considered for this purpose
An extension of an existing SIP will be treated as a new SIP on the date
of such application, and all the above conditions need to be met
with.
The Load structure prevailing at the time of submission of the SIP
application (whether fresh or extension) will apply for all the
Installments indicated in such application.
The installment after the NFO period should be dated after the date
of declaration of first NAV. Any payments intended for the interim
period will not be processed and will be treated void.
The AMC has the authority to make available SIP by way of a salary
savings scheme for a group of employees through an arrangement
with their employers.
For applicable Load on Purchases through SIP, please refer paragraph
‘Load Structure’ given in the document.
The AMC reserves the right to change / modify Load structure and
other terms and conditions under the SIP prospectively at a future
date. Please refer to the SIP Enrolment Form for terms & conditions
before enrolment.
Systematic Investment Plan (SIP) Switch Facility:
Unit holders having registered SIP in the specified scheme(s) of the
Fund can use SIP Switch Facility to terminate SIP in the existing scheme
Axis Triple Advantage Fund 79
and initiate SIP in another specified scheme.
SIP Switch Facility shall be available to unit holders under all open
ended schemes of the Fund except for Axis Liquid Fund, Axis
Overnight Fund, Axis Gold ETF, Axis Nifty ETF and Axis Children’s Gift
Fund.
The terms and conditions of SIP Switch Facility are as below:
1. SIP Switch Facility can be availed by unit holders only after
completion of minimum installments specified for SIP registration in
the Switch-out (existing) scheme.
2. SIP Switch Facility will be considered as termination of SIP in Switch-
out scheme and subscription of SIP in Switch-in scheme.
3. SIP in Switch-in scheme will be subject to the terms of offering
specified in the SID of Switch-in scheme.
4. SIP registration end date should ensure compliance of minimum
SIP installments prescribed in Switch-in scheme.
5. SIP Switch Facility is available for changing SIP investment
mandate from one scheme to another specified scheme. The
same is also available for switch between Plans / Options offered
under same scheme. Further, the amount of installment, date and
frequency of SIP and SIP end date of Switch-out scheme shall
remain same as under Switch-in scheme.
6. The allotment of units of Switch-in scheme shall be in the same
folio.
7. SIP Switch Facility is not available for SIP subscribed with post-
dated cheques.
8. Investors will have the option of changing the distributor code
from direct to regular/ regular to direct.
9. Unit holder must submit request for SIP Switch at least 21 days
before the SIP due date.
Multiple SIPs Registration Mandate
Unitholder can enroll multiple SIPs in different schemes by submitting
one single application form/ payment instruction. All other terms and
conditions applicable to SIP Facility shall be applicable for the facility.
Systematic Investment Plan (SIP) Top-Up Facility
The Facility enables unitholders to increase the SIP installment amount
at pre-defined intervals by a fixed amount or anytime by a specified
amount as per the request (in case of ‘As & When frequency’).
The terms and conditions of the Facility are as follows:
1. Top-Up Amount: The minimum amount of Top-Up shall be Rs. 500/-
and in multiple of Re. 1/-. In case of discrepancy in the Top-Up
amount, SIP will be registered without Top-Up Facility.
2. Top-Up facility is available for SIP registered with Monthly
frequency only.
3. Top-Up Frequency: Top-Up frequency is available only on ‘Half
Yearly’, ‘Yearly’ and ‘As & When frequency’. In case the Top-Up
frequency is not specified / is not legible, the default frequency
will be ‘Yearly’, provided Top-Up amount is mentioned clearly.
4. The Facility shall be available for SIP Investments through
Electronic Debit arrangement/ NACH (National Automated
Clearing House) or as may be specified by AMC.
5. The Facility can be availed by filling up prescribed form at time of
SIP Facility enrolment. Existing SIPs cannot be converted into the
Facility.
6. The application form for availing the Facility should be submitted
21 days before the first SIP installment date.
Axis Triple Advantage Fund 80
7. The gap between SIP registration and first Top-Up request under
'As & When' frequency and two instructions under ‘As & When’
frequency should be at least 3 months.
8. The Facility shall continue till the end date of the SIP. The Facility
can be discontinued only by cancelling the SIP.
9. All other terms and conditions applicable to SIP Facility shall be
applicable for the Facility.
Micro Systematic Investment Plan
Systematic Investment Plans (SIPs) where aggregate of installments in
a financial year i.e. April to March does not exceed Rs. 50,000/- (per
financial year per investor).
The Unit holders will have the facility of Micro SIP under the current SIP
facility. The key features of the facility are as under:
1. Minimum amount per SIP installment is Rs. 100/- and in multiples of
Re. 1 thereafter.
2. The minimum redemption amount will be Rs. 300/-.
3. Where the Mutual Fund fails to get the proceeds from six
Installments out of a continuous series of Installments submitted at
the time of initiating a SIP (Subject to a minimum under SIP i.e. 30
months), the SIP may be discontinued by the AMC.
4. All other features / guidelines of Systematic Investment Plan with
reference to Standing Instruction / Direct Debit will be equally
applicable for a Micro SIP.
Investors with PAN are not eligible for simplified KYC procedure for
Micro SIP investments – details of which have been provided in the
Statement of Additional Information.
For details, investors are requested to refer to the Micro SIP application
form.
PURCHASE / REDEMPTION OF UNITS THROUGH STOCK EXCHANGE
INFRASTRUCTURE
Investors can subscribe to the Units of Axis Mutual Fund through the
mutual fund trading platforms of the Bombay Stock Exchange (“BSE”)
and National Stock Exchange (“NSE”) – with NSDL and CDSL as
depositories for such units of the mutual fund.
NSE has introduced Mutual Fund Service System (MFSS) Platform and
BSE has introduced BSE StAR MF Platform.
The following are the salient features of the MFSS / BSE StAR MF
Platform:
1. The facility i.e. purchase/redemption/SIP (Systematic Investment
Plan) is available for both existing and new investors.
2. The Investors will be eligible to purchase/redeem units of the
Scheme.
3. Maximum subscription:
The investors can purchase units of the Scheme by using NSE MFSS/
BSE StAR Platform for transaction value less than Rs. 1 Crore.
4. List of additional Official Point of Acceptance
The following shall be the additional Official Point of Acceptance
of Transactions for the Scheme:
All trading members of BSE & NSE who are registered with AMFI as
Mutual Fund Advisors and also registered with BSE & / or NSE as
Participants ("AMFI registered stock exchange brokers") will be
eligible to offer this facility to investors and shall be treated as
Official Point of Acceptance.
Axis Triple Advantage Fund 81
Units of mutual fund schemes shall be permitted to be transacted
through clearing members of the registered Stock Exchanges.
Further, the Depository Participants of registered Depositories are
permitted to process only redemption request of units held in
demat form.
Clearing members and Depository participants will be considered
as Official Points of Acceptance of Axis Mutual Fund and
conditions stipulated in SEBI circular no. SEBI/IMD/CIR
No.11/183204/2009 dated November 13, 2009 for stock brokers viz.
AMFI /NISM certification, code of conduct prescribed by SEBI for
Intermediaries of Mutual Fund, shall be applicable for such Clearing
members and Depository participants as well.
5. The units of the Scheme are not listed on BSE & NSE and the same
cannot be traded on the Stock Exchange. The window for
purchase/redemption of units on MFSS/ BSE StAR Platform will be
available between 9 a.m. and 3 p.m. or such other timings as may
be decided.
6. Transactions only in demat mode will be currently permitted
through MFSS / BSE StAR MF Platform
7. Investors will be able to purchase/redeem units in the scheme in
the following manner:
(i) Investors shall receive redemption amount (if units are
redeemed) and units (if units are purchased) through broker/
clearing member's pool account. Axis Asset Management
Company Ltd. (the "AMC")/Axis Mutual Fund (the "Mutual
Fund") shall pay proceeds to the broker/clearing member (in
case of redemption) and broker/clearing member in turn to the
respective investor and similarly units shall be credited by the
AMC/ Mutual Fund into broker/clearing member's pool
account (in case of purchase) and broker/clearing member in
turn shall credit the units to the respective investor's demat
account.
(ii) Payment of redemption proceeds to the broker/clearing
members by AMC/Mutual Fund shall discharge AMC/Mutual
Fund of its obligation of payment to individual investor. Similarly,
in case of purchase of units, crediting units into broker/clearing
member pool account shall discharge AMC/Mutual Fund of its
obligation to allot units to individual investor.
8. Applications for purchase/redemption of units which are
incomplete /invalid are liable to be rejected.
9. For all the transactions done through these platforms, separate
Folio. No. shall be allotted to the existing and the new investors. The
bank a/c number, address, nomination details etc. shall be the
same as per the Demat account of the investor. In case of non-
financial requests/applications such as change of address, change
of bank details, etc. for units held in demat mode investors should
approach the respective Depository Participant(s) and OPAT of
AMC for units held in physical mode.
10. Investors will have to comply with Know Your Customer (KYC)
norms as prescribed by BSE/NSE/CDSL/ NSDL and Axis Mutual Fund
to participate in this facility.
11. Investors should get in touch with Investor Service Centres
(ISCs) of Axis Mutual Fund for further details.
Transaction routed through Distributor/ SEBI Registered Investment
Advisor
SEBI circular no. CIR/MRD/DSA/32/2013 dated October 4, 2013 and
circular no. CIR/MRD/DSA/334 dated December 9, 2014, has
permitted Mutual Fund Distributors (“MF Distributors”) and SEBI circular
Axis Triple Advantage Fund 82
no. SEBI/HO/MRD/DSA/CIR/P/2016/113 dated October 19, 2016
permitted SEBI Registered Investment Advisors (“RIAs”) to use
recognized Stock Exchange infrastructure to purchase/redeem units
directly from Mutual Fund/AMC on behalf of their clients.
MF Distributor registered with AMFI or RIAs, will be eligible to use NMF-II
platform of NSE (in addition to other intermediaries) and / or of BSE
StAR MF platform of BSE to purchase and redeem units of schemes of
the Fund.
In addition to the guidelines specified for transacting through
MFSS/BSE StAR MF Platform above, following guidelines shall be
applicable for transactions executed through MF Distributors/ RIAs on
NMF-II / BSE StAR MF Platform:
1. MF distributors/RIAs shall not handle pay out/pay in of funds as
well as units on behalf of investor. Pay in will be directly received
by recognized clearing corporation and payout will be directly
made to investor account. In the same manner, units shall be
credited and debited directly from the demat account of
investors.
2. Transactions only in physical (non-demat) transactions will be
permitted through NMF-II / BSE StAR MF Platform.
The facility of transacting in mutual fund schemes through stock
exchange infrastructure is available subject to such operating
guidelines, terms and conditions as may be prescribed by the
respective Stock Exchanges from time to time.
The facility of transacting in mutual fund schemes through stock
exchange infrastructure is available subject to such operating
guidelines, terms and conditions as may be prescribed by the
respective Stock Exchanges from time to time.
SYSTEMATIC TRANSFER PLAN (STP)
Investors can opt for the Systematic Transfer Plan by investing a
lumpsum amount in one scheme of the Fund and providing a
standing instruction to transfer sums at following intervals into any
other scheme (as may be permitted by the Scheme Information
Document of the respective schemes) of the Fund.
STP
Frequency Cycle Date
Minimum
Amount* (in Rs.)
Minimum
Installment
Daily Monday To
Friday
1,000/- 6
Weekly Monday To
Friday
1,000/- 6
Fortnightly Alternate
Wednesday
1,000/- 6
Monthly 1st, 7th, 10th, 15th
or 25th
1,000/- 6
Quarterly 1st, 7th, 10th, 15th
or 25th
3,000/- 2
In case Day of Transfer has not been indicated under Weekly
frequency, Wednesday shall be treated as Default day. Further, in
case of Monthly and Quarterly Frequency, if the STP date and
Frequency has not been indicated, Monthly frequency shall be
treated as Default frequency and 10th shall be treated as Default
Date.
In case none of the frequencies have been selected then Monthly
Axis Triple Advantage Fund 83
frequency shall be treated as Default frequency and 10th shall be
treated as Default Date.
Investors could also opt for STP from an existing account by quoting
their account / folio number. A minimum period of 7 days shall be
required for registration under STP.
Units will be allotted/ redeemed at the applicable NAV of the
respective dates of the Scheme in which such
investments/withdrawals are sought from the Scheme.
The requests for discontinuation of STP shall be subject to an advance
notice of 15 days before the next due date for STP and it will terminate
automatically if all Units are liquidated or withdrawn from the account
or upon the Funds’ receipt of notification of death or incapacity of
the Unit holder.
The AMC reserves the right to introduce STPs at any other frequencies
or on any other dates as the AMC may feel appropriate from time to
time. In the event that such a day is a Holiday, the transfer would be
affected on the next Business Day.
The STP may be terminated on a written notice of 7 days by a Unit
holder of the Scheme and it will terminate automatically if all Units are
liquidated or withdrawn from the account or upon the Funds’ receipt
of notification of death or incapacity of the Unit holder.
Further, in case of a last STP, where the balance amount is less than
the STP amount, the entire amount will be transferred to the transferee
scheme.
For further details/ clarifications investors may contact the distributor(s)
or the ISCs of the AMC.
CAPITAL APPRECIATION SYSTEMATIC TRANSFER PLAN (CAPSTP)
Under this facility, the investors can opt for the Systematic Transfer
Plan by investing a lump sum amount in one scheme of the fund and
providing a standing instruction to transfer capital appreciation at
regular intervals - Weekly, Monthly or Quarterly into any other scheme
(as maybe permitted by the Scheme Information Document of the
respective schemes) of Axis Mutual Fund.
The capital appreciation, if any, will be calculated from the enrolment
date of the CapSTP under the folio, till the first transfer date.
Subsequent capital appreciation, if any, will be the capital
appreciation between the previous CapSTP date (where CapSTP has
been processed and paid) and the next CapSTP date
There are three options available under CapSTP viz. Weekly, Monthly
and Quarterly option, the details of which are given below:
CapSTP
Frequency Cycle Date
Minimum
Amount* (in
Rs.)
Minimum
Installment
Weekly Monday To Friday 500/- 6
Monthly 1st, 7th, 10th, 15th or
25th
500/- 6
Quarterly 1st, 7th, 10th, 15th or
25th
1,000/- 2
The provision of ‘Minimum Redemption Amount’ as specified in the
Axis Triple Advantage Fund 84
Scheme Information Document of the respective designated
Transferor Schemes and ‘Minimum Application Amount’ specified in
the Scheme Information Document of the respective designated
Transferee Schemes will not be applicable for CapSTP.
Unit holders are required to fill in either the number of installments or
the enrolment period in the enrolment Form, failing which the Form is
liable to be rejected.
In case, the Enrolment Period has been filled, but the CapSTP Date
and/or Frequency (Monthly/ Quarterly) has not been indicated,
Monthly frequency shall be treated as Default frequency and 10th
shall be treated as Default Date. In case of weekly frequency,
Wednesday shall be treated as Default day.
In case none of the frequency is selected then Monthly frequency
shall be treated as Default frequency and 10th shall be treated as
Default Date.
The application for CapSTP enrolment - Monthly & Quarterly
frequency should be submitted at least 7 working days and not more
than 90 days before the desired commencement date.
In respect of CapSTP, the Load Structure prevalent at the time of
enrolment shall govern the investors during the tenure of the CapSTP.
A minimum period of 7 working days shall be required for registration
under CapSTP. Units will be allotted/redeemed at the applicable NAV
(of the respective date(s)) of the Scheme from/to which such
withdrawals/investments are being made.
The AMC reserves the right to introduce CapSTPs at any other
frequencies or on any other dates as the AMC may feel appropriate
from time to time. In the event that such a day is a Holiday, the
transfer would be affected on the next Business Day.
The requests for discontinuation of CapSTP shall be subject to an
advance notice of 15 days before the next due date for CapSTP.
CapSTP will terminate automatically if all Units are liquidated or
withdrawn from the account or upon the Funds’ receipt of notification
of death or incapacity of the Unit holder. Further, in case where the
balance amount in a folio is less than the CapSTP amount, the entire
amount will be transferred to the transferee scheme.
FLEX - SYSTEMATIC INVESTMENT PLAN/ SYSTEMATIC TRANSFER PLAN
("Flex SIP/ Flex STP")
Terms and conditions of Flex SIP/STP are as follows:
1. Flex SIP is a facility wherein an investor can opt to invest variable
amount linked to the value of his investments in any of the existing
open ended scheme(s) of Axis Mutual Fund (“Investee scheme”),
on pre-determined date. This facility allows investors to take
advantage of market movements by investing higher when the
markets are low and vice-versa.
2. Flex STP is a facility wherein an investor under any of the existing
open ended scheme(s) of Axis Mutual Fund can opt to transfer
variable amount linked to value of his investments, on
predetermined date from designated open-ended Scheme(s) of
Axis Mutual Fund ("Transferor Scheme") to the Growth Option of
designated open-ended Scheme(s) ("Transferee Scheme").
3. A single Flex SIP/STP Enrolment Form can be filled for investment/
Axis Triple Advantage Fund 85
transfer into one Scheme/Plan/Option only.
4. In case of valid enrolment forms received, indicating choice of
option other than the growth option in the Investee / Transferee
Scheme, it will be deemed as the growth option in the Investee /
Transferee Scheme and processed accordingly.
5. In case of Flex STP, unit holders' details and mode of holding
(single, jointly, anyone or survivor) in the Transferee Scheme will be
as per the existing folio number of the Transferor Scheme. Units will
be allotted under the same folio number. Unitholders' name
should match with the details in the existing folio number, failing
which the enrolment form is liable to be rejected.
6. The minimum number of installments for enrollment and Amount
under Flex STP:
Frequency under Flex-STP
Facility
Minimum
Installments
Minimum Flex-STP
amount
Monthly (1st,
7th,10th,15th or 25th)
6 Rs. 1,000/- and in
multiple of Rs. 1/-
Quarterly (1st,
7th,10th,15th or 25th)
2 Rs. 3,000/- and in
multiple of Rs. 1/-
7. The minimum number of installments for enrollment and Amount
under Flex SIP:
Frequency
under Flex-
SIP Facility
Minimum
Installments
Minimum Flex-SIP
amount
Monthly 12 Installments for
all schemes
Rs. 1,000/- and in
multiple of Rs. 1/-
Yearly 3 Installments for
all schemes
Rs. 12,000/- and in
multiple of Rs. 1/-
There is no maximum duration for Flex SIP/ STP enrolment.
8. Calculation of Flex STP
Under the Flex STP – (as per the Frequency) unit holders will be
eligible to transfer fixed amount to be transferred per installment
OR the amount as determined by the following formula whichever
is higher:
Fixed installment amount or (number of installments including the
current installment X fixed amount to be transferred per
installment) - market value of the investments through Flex STP in
the Transferee Scheme on the date of transfer whichever is Higher
In case of Flex STP, if the amount (as specified by the formula) to
be transferred under STP is not available in the Transferor Scheme
in the unit holder's account, the residual amount will be transferred
to the Transferee Scheme and Flex STP will be closed.
Calculation of Flex SIP
Under the Flex SIP – (as per the Frequency) unit holders will be
eligible to invest fixed amount to be invested per installment OR
the amount as determined by the following formula whichever is
higher:
Fixed installment amount or (number of installments including the
current installment X fixed amount to be invested per installment) -
market value of the investments through Flex SIP* in the Investee
Scheme whichever is Higher
Axis Triple Advantage Fund 86
*The installment value of FLEX SIP will be determined on the basis
of NAV on 10th day (T-10) before the installment date. If T-10th day
falls on a Non-Business day or falls during a book closure period,
then valuation will be done on T-11th day.
In case of Flex SIP, the required amount is not available in the
designated bank account and the debit instruction fails then Flex
SIP will be stopped.
9. If the NAV falls continuously throughout the Flex STP period,
number of installments may be less than those mentioned on
application form.
10. The first Flex SIP/STP installment will be processed for the fixed
installment amount specified by the unit holder at the time of
enrolment. From the second Flex SIP/STP instalment onwards, the
investment/ transfer amount shall be computed as per formula
stated above.
11. In case the date of investment/ transfer falls on a Non-Business
Day or falls during a book closure period, the immediate next
Business Day will be considered for the purpose of determining the
applicable NAV.
12. Once the Flex SIP/ STP have been stopped the unit holder needs
to provide a new request to start Flex SIP/ STP.
13. The redemption/ switch-out of units allotted in the Investee/
Transferee Scheme shall be processed on First in First out (FIFO)
basis. If there are other financial transaction (purchase,
redemption or switch) processed in the Investee/ Transferee
scheme during the tenure of Flex SIP/ STP, the Flex SIP / STP will be
processed as normal SIP / STP for the rest of the installments for a
fixed amount.
14. In respect of Flex SIP / STP enrollments made in any of the existing
open ended Scheme(s), the Load Structure prevalent at the time
of enrollment shall be applicable to the investors during the tenure
of the Flex SIP / STP. Load structure for investments through Flex SIP
/ STP to the Schemes eligible for this facility:
a. Exit Load of the Transferor Scheme(s)
The amount transferred under the Flex STP from the Transferor
Scheme to the Transferee Scheme shall be affected by
switching units of Transferor Scheme at applicable NAV, after
payment of exit load, if any, and subscribing to the units of the
Transferee Scheme at Applicable NAV.
b. Exit Load of the Investee /Transferee Scheme(s)
Applicable Exit Load, if any, in the Investee / Transferee
Schemes Plan /Option as on the date of enrollment will also be
levied. For Scheme load structure please refer to SID/ KIM or
contact the nearest Investor Service Centre (ISC) of Axis
Mutual Fund or visit our website www.axismf.com.
15. Flex STP will be automatically terminated if all units are
liquidated or withdrawn from the Transferor Scheme or pledged or
upon receipt of intimation of death of the unit holder.
16. The provision of 'Minimum Redemption Amount' as specified in
the Scheme Information Document of the respective designated
Transferor Scheme(s) and 'Minimum Application Amount' specified
in the Scheme Information Document of the respective
designated Transferee Scheme(s) will not be applicable for Flex
SIP/ STP.
17. The request for Flex SIP/ STP should be submitted at least 25
Axis Triple Advantage Fund 87
calendar days before the first SIP and at least 7 calendar days
before STP date.
18. Unit holders have a right to discontinue the Flex SIP/ STP facility at
any time by sending a written request to the ISC. On receipt of
such request, the Flex SIP / STP facility will be terminated within 20
working days.
19. All other terms & conditions of Systematic Investment Plan and
Systematic Transfer Plan are applicable to Flex SIP and STP
respectively.
Illustration: Calculation of Flex STP
Flex SIP/ STP that transfers Rs. 3,000/- every month from the Debt Fund
to an Equity Fund.
Transferor Scheme: Axis Credit Risk
Transferee Scheme: Axis Bluechip Fund - Growth
Option
Date & Frequency of Flex STP: 10th date - Monthly Interval
Amount of Transfer per Installment Rs 3,000/-
Number of Installments: 12
Enrolment Period: January - December 2013
Calculation of Flex STP instalment amount on the date of the fourth
instalment i.e. April 10, 2013
i. Total units allotted up to the date of last installment i.e. March
10, 2013 is assumed as 822.73;
ii. NAV of AXIS Equity Fund - Growth Option on April 10, 2013 is
assumed as Rs. 9/- per unit;
iii. Hence the market value of the investment in the Investee /
Transferee Scheme on the date of investment/ transfer is Rs. 7,
404.55[822.73X 9].
The installment amount will be calculated as follows:
a) Fixed amount specified at the time of enrolment:
Rs.3,000/-
Or
b) As determined by the formula:
(3,000 X 4) – 7,404.55= Rs. 4,595/-
a) or b) Whichever is Higher.
Hence, on April 10, 2013, the installment amount to be transferred to
the Transferee Scheme will be Rs. 4,595/-
Illustration: Calculation of Flex SIP
Investee Scheme: Axis Bluechip Fund - Growth
Option
Date & Frequency of Flex SIP: 10th date - Monthly Interval
Amount per Installment Rs 3,000/-
Number of Installments: 12
Enrolment Period: January - December 2013
Calculation of Flex SIP instalment amount for the 4th instalment i.e.
April 10, 2013
i. Total units allotted up to the date of last installment i.e. March
10, 2013 is assumed as 822.73;
ii. NAV of Axis Bluechip Fund - Growth Option on T-10th day* is
assumed as Rs. 9/- per unit;
iii. Hence the market value of the investment in the Investee
Scheme on T-10th day is Rs. 7,404.55[822.73X 9].
The installment amount will be calculated as follows:
a. Fixed amount specified at the time of enrolment:
Axis Triple Advantage Fund 88
Rs.3,000/-
Or
b. As determined by the formula:
(3,000 X 4) – 7,404.55= Rs. 4,595/-
a) or b) Whichever is Higher.
Hence, on April 10, 2013, the installment amount to be invested to the
Investee Scheme will be Rs. 4,595/-
*The installment value of Flex SIP will be determined on the basis of
NAV on 10th day (T-10) before the installment date. In the above
example T-10th day will be 31st March 2013
Investors are advised to read the SID/ KIM of the Transferee Scheme
and Statement of Additional Information carefully before investing.
The SID/ KIM of the respective Scheme(s) are available with the ISCs
of Axis Mutual Fund, brokers/distributors and also displayed on the Axis
Mutual Fund website i.e. www.axismf.com
SYSTEMATIC WITHDRAWAL PLAN (SWP)
Existing Unitholders have the benefit of availing the choice of SWP on
pre-specified dates. The SWP allows the Unitholder to withdraw a
specified sum of money each month/quarter from his investments in
the Scheme.
The amount thus withdrawn by redemption will be converted into
Units at Applicable NAV based prices and the number of Units so
arrived at will be subtracted from the Units balance to the credit of
that Unitholder.
Unitholders may start the facility/change the amount of withdrawals
or the period of withdrawals by giving a 15 days written
intimation/notice. The SWP may be terminated by a Unitholder by
giving 15 days written intimation/notice and it will terminate
automatically if all the Units are liquidated or withdrawn from the
account or the holdings fall below the SWP installment amount.
There are four options available under SWP viz. Monthly option,
quarterly option, Half Yearly and Yearly option. The details of which
are given below:
Monthly
Option
Quarterly
Option
Half
Yearly
Option
Yearly
Option
Minimum value of
SWP
Rs. 1,000/-
Additional
amount in
multiples of
Re.1
Dates of SWP
Installment
1/5/10/15/25*
Minimum No of
SWP
Six Four Four Two
* In the event that such a day is a holiday, the withdrawals would be
affected on the next business day.
Contingent Deferred Sales Charge (CDSC)/Exit Load, if any, is
applicable to SWP.
The AMC reserves the right to accept SWP applications of different
amounts, dates and frequency.
Unitholders can enroll themselves for the facility by submitting the duly
Axis Triple Advantage Fund 89
completed Systematic Withdrawal enrolment Form at any of the
Investor Service Centres(ISCs)/Official Points of Acceptance (OPAs).
The AMC / Trustee reserve the right to change / modify the terms and
conditions under the SWP prospectively at a future date.
Investments through systematic routes:
(a) In case of Systematic Investment Plan (SIP) / Systematic Transfer
Plan (STP) etc. registered prior to the Effective Date without any
distributor code under the Regular Plan, installments falling on or
after the Effective Dates will automatically be processed under
the Direct Plan.
(b) Investors who had registered for Systematic Investment Plan
facility prior to the Effective Date with distributor code and wish to
invest their future installments into the Direct Plan, shall make a
written request to the Fund in this behalf. The Fund will take at
least 15 days to process such requests. Intervening installments will
continue in the Regular Plan.
In case of (a) and (b) above, the terms and conditions of the
existing registered enrolment shall continue to apply.
In case of Systematic Transfer Facilities (registered with Distributor
Code) were registered under the Regular Plan prior to the
Effective Date the future installments shall continue under the
Regular Plan.
In case such investors wish to invest under the Direct Plan through
these facilities, they would have to cancel their existing enrolments
and register afresh for such facilities.
SWITCHING OPTIONS
(a) Inter - Scheme Switching option
Unit holders under the Scheme have the option to Switch part or all of
their Unit holdings in the Scheme to any other scheme offered by the
Mutual Fund from time to time. The Mutual Fund also provides the
Investors the flexibility to Switch their investments from any other
scheme(s) / plan (s) offered by the Mutual Fund to this Scheme. This
option will be useful to Unit holders who wish to alter the allocation of
their investment among the scheme(s) / plan(s) of the Mutual Fund in
order to meet their changed investment needs.
The Switch will be effected by way of a Redemption of Units from the
Scheme at Applicable NAV, subject to Exit Load, if any and
reinvestment of the Redemption proceeds into another scheme
offered by the Mutual Fund at Applicable NAV and accordingly the
Switch must comply with the Redemption rules of switch out Scheme
and the Subscription rules of the switch in scheme.
(b) Intra -Scheme Switching option
Unit holders under the Scheme have the option to Switch their Unit
holding from one plan/option to another plan/option (i.e. Axis Triple
Advantage Fund – Direct Plan and Growth to Dividend and vice-a-
versa). The Switches would be done at the Applicable NAV based
prices and the difference between the NAVs of the two options will
be reflected in the number of Unit allotted.
Switching shall be subject to the applicable “Cut off time and
Applicable NAV” stated elsewhere in the Scheme Information
Document. In case of “Switch” transactions from one scheme to
another, the allocation shall be in line with Redemption payouts.
Axis Triple Advantage Fund 90
TRANSACTION ON FAX
In order to facilitate quick processing of transaction and / or
instruction of investment of Investor the AMC/ Trustee/ Mutual Fund
may (at its sole discretion and without being obliged in any manner to
do so and without being responsible and/ or liable in any manner
whatsoever) accept and process any application, supporting
documents and / or instructions submitted by an Investor / Unit holder
by facsimile (Fax Submission) and the Investor / Unit holder voluntarily
and with full knowledge takes and assumes any and all risk associated
therewith. The AMC / Trustee/ Mutual Fund shall have no obligation to
check or verify the authenticity or accuracy of Fax Submission
purporting to have been sent by the Investor and may act thereon as
if same has been duly given by the Investor. In all cases the Investor
will have to immediately submit the original documents/ instruction to
AMC/ Mutual Fund.
ONLINE TRANSACTIONS
Axis Mutual Fund will allow Transactions including by way of Lumpsum
Purchase/ Redemption / Switch of Units by electronic mode through
the AMC web–site/Mobile application. The Subscription proceeds,
when invested through this mode, are by way of direct debits to the
designated bank through payment gateway. The Redemption
proceeds, (subject to deduction of tax at source, if any) through this
mode, are directly credited to the bank account of the Investors who
have an account at the designated banks with whom the AMC has
made arrangements from time to time or through NEFT/RTGS or
through cheque/Payorder/Demand draft issuance. The AMC will
have right to modify the procedure of transaction processing without
any prior intimation to the Investor.
Investment amount through this facility may be restricted by the AMC
from time to time in line with prudent risk management requirements
and to protect the overall interest of the Investors.
For details of the facility, investors are requested to refer to the
website of the AMC.
TRANSACTIONS THROUGH ELECTRONIC PLATFORM(S) OF KARVY
FINTECH PVT. LTD.
Investors will be allowed to transact through www.karvymfs.com, an
electronic platform provided by M/s. Karvy Fintech Pvt. Ltd. (‘Karvy’),
Registrar & Transfer Agent, in Schemes of Axis Mutual Fund (‘Fund’)
(except Axis Gold ETF and Axis Nifty ETF). The facility will also be
available through mobile application of Karvy.
The uniform cut off time as prescribed under the SEBI (Mutual Funds)
Regulations, 1996 and as mentioned in SID and KIM of the Scheme will
be applicable for transactions received through the above electronic
platform and the time of receipt of transaction recorded on the
server(s) of Karvy will be reckoned as the time for the purpose of
determining applicability of NAV, subject to credit of funds to bank
account of scheme, wherever applicable.
The facility is subject to operating guidelines, terms and conditions as
may be prescribed by Karvy or as may be specified by Axis Asset
Management Company Ltd. from time to time. For operating
guidelines and terms and conditions , investors are requested to visit
www.karvymfs.com.
Time of receipt of transaction recorded on the server(s) of Karvy will
continue to be reckoned for electronic transactions received through
Axis Triple Advantage Fund 91
AMC website/ Distributor website/ applications etc subject to credit of
funds to bank account of scheme, wherever applicable.
ONLINE SCHEDULE TRANSACTION FACILITY (‘THE OST FACILITY’/ ‘THE
FACILITY’):
The OST facility shall enable Unitholders to schedule subscription /
redemption / switch transaction(s) on specified date for specified
amount/ units by giving online instruction.
The terms and conditions of the OST facility shall be as under:
1. The Facility is available to the existing Unitholders of open ended
schemes of Axis Mutual Fund (except Axis Gold ETF and Axis Nifty
ETF), subject to completion of lock-in, if any. The Facility is
available only to Individual (including sole proprietor) Unitholders
for units held in / subscription in physical mode.
2. The Facility for subscription transaction would be available to
unitholders after completion of OTM Mandate / Easycall
mandate/ equivalent mandate registration process and as per
limits specified therein.
3. Under the Facility the transaction can be scheduled to be
executed on a specified date which shall be within 30 calendar
days from the date of the instruction. Such specified date shall be
a business day. In case the scheduled transaction date falls on a
non-business day, the transaction will be executed on the
immediately following business day.
4. The Facility shall be available on online transaction platform(s) viz
website of Axis AMC i.e. www.axismf.com. Axis AMC may extend
the Facility to other transaction platforms from time to time, at its
discretion.
5. The scheduled transaction may be cancelled by giving suitable
instruction atleast one calendar day prior to the scheduled
transaction date.
6. The triggered transaction on the scheduled date shall be
considered as time stamped and will be executed on the
specified date at the applicable NAV of the relevant scheme. In
case the specified date happens to be a non-business day in
debt schemes but is a business day in equity schemes, switch-out
from equity schemes will be processed on the specified date,
while the switch-in to debt/liquid schemes will be processed on
the next business day.
7. The scheduled transaction(s) shall be subjected to exit load,
minimum subscription/additional subscription application and
other terms and conditions of the relevant scheme as per SID
applicable on the specified date.
8. The scheduled transaction shall be liable to be rejected if
sufficient amount is not available for subscription or sufficient
number of units / amount is not available for redemption.
9. Redemption transactions will not be executed in case units are
pledged or where lien is marked on units, at the time of online
instruction / on specified date.
10. Unitholders availing of this facility shall acquaint themselves with
the features of the Scheme, including any modification /
amendments carried out before the specified date.
The Facility is an additional facility provided to the Unitholders to plan
their transactions in schemes using online platforms.
Axis AMC / Trustee reserves the right to change/ modify the terms and
conditions or to make operational rules for operation of the Facility
from time to time.
Axis Triple Advantage Fund 92
EASY CALL FACILITY
All individual investors in the scheme applying on “Sole” or “Joint
(Anyone or Survivor)” basis in their own capacity shall be eligible to
avail of Easy Call facilities for permitted transactions inter alia on the
following terms and conditions (“Terms and Conditions” mean the
terms and conditions set out below by which the Facility shall be
used/availed by the Investor/s and shall include all modifications and
supplements made by AMC thereto from time to time).
Axis Mutual Fund will allow transactions including by way of Lumpsum
Purchase/ Redemption / Switch of Units over phone. Initial Investment
has to be through physical mode wherein he has to sign a one time
debit mandate for bank accounts pertaining to designated banks
with which the AMC may have an arrangement. This facility is
extended to the bank with which the Fund would have an
arrangement from time to time. Investment amount may be restricted
by the AMC from time to time in line with prudent risk management
requirements and to protect the overall interest of the Investors.
Investor will be allowed transactions over phone after 30 days from
the date of submission of one time mandate. Investor will not be
permitted to avail the Easy call facility for Redemptions/Switch
transactions if bank mandate is changed with in last 15 days. AMC will
have right to modify the procedure of transaction processing without
any prior intimation to the Investor. AMC retains the right to maintain
call records of the communication with investors, for lawful purposes.
The AMC has a right to ask such information (Key Information) from
the available data of the Investor/s before allowing him access to
avail the Facility. If for any reason, the AMC is not satisfied with the
replies of the Investor/s, the AMC has at its sole discretion the right of
refusing access without assigning any reasons to the Investor/s.
It is clarified that the Facility is a service provided to the Investor/s and
is offered at the sole discretion of the AMC. The AMC is not bound
and/or obliged in any way to offer this Facility to Investor/s.
The Investor/s shall check his/her account records carefully and
promptly. If the Investor/s believes that there has been a mistake in
any transaction using the Facility, or that unauthorized transaction has
been effected, the Investor/s shall notify the AMC immediately. If the
Investor/s defaults in intimating the discrepancies in the statement
within a period of fifteen days of receipt of the statements, he waives
all his rights to raise the same. By opting for the facility the Investor/s
hereby irrevocably authorizes and instructs the AMC to act on his /her
behalf and to do all such acts as AMC may find necessary to provide
the Facility.
The Investor/s shall at all times be bound by any modifications and/or
variations made to these Terms and Conditions by the AMC at their
sole discretion and without notice to them.
The Investor/s agrees and confirms that the AMC has the right to ask
the Investor/s for an oral or written confirmation of any transaction
request using the Facility and/or any additional information regarding
the Account of the Investor/s.
The Investor/s agrees and confirms that the AMC may at its sole
discretion suspend the Facility in whole or in part at any time without
prior notice.
Axis Triple Advantage Fund 93
The Investor/s shall not assign any right or interest or delegate any
obligation arising herein.
The Investor/s shall take responsibility for all the transactions
conducted by using the Facility and will abide by the record of
transactions generated by the AMC. Further, the Investor/s confirms
that such records generated by the AMC shall be conclusive proof
and shall be binding for all purposes and may be used as evidence in
any proceedings and that the investor(s) unconditionally waives all
objections in this behalf.
The Investor/s agree that use of the Facility will be deemed to be an
acceptance of the Terms and Conditions and the Investor/s will
unequivocally be bound by these Terms and Conditions. The Investor
agrees that all calls received shall be eligible for applicable NAV
subject to necessary formalities to be complied by the AMC in case of
transaction through Easy Call Facility on or before the uniform cut off
time.
Requests like change in bank mandate, change of nomination,
change in mode of holding, change of address or such other requests
as the AMC may decide from time to time will not be permitted using
the Easy Call facility.
The investor agrees to indemnify and keep indemnified Axis AMC its
Directors, employees, representatives and service providers of the
AMC, Axis Mutual Fund and Trustees (indemnified parties) from and
against all actions, claims, demands, liabilities, obligations, losses,
damages, costs and expenses of whatever nature (whether actual or
contingent) directly or indirectly suffered or incurred, by the
indemnified parties whatsoever arising from or in connection with the
Facility. The Investor/s shall not hold the AMC liable and shall keep it
indemnified for the following:
1) For any transaction using the Facilities carried out in good faith by
the AMC on instructions of the Investor/s.
2) For any loss or damage incurred or suffered by the Investor/s due
to any error, defect, failure or interruption in the provision of the
Facility.
3) For any negligence / mistake or misconduct by the Investor/s.
4) For any breach or non-compliance by the Investor/s of the
rules/terms and conditions stated in this Document.
5) For accepting instructions given by any one of the Investor/s in
case of joint account/s having mode of operations as ““Anyone
or survivor”.
6) For not carrying out any such instructions where the AMC has
reason to believe (which decision of the AMC the Investor/s shall
not question or dispute) that the instructions given are not genuine
or are otherwise improper, unclear, vague or raise a doubt.
7) For carrying out a transaction after such reasonable verification as
the AMC may deem fit regarding the identity of the Investor/s
MISCELLANEOUS:
1) The Investor/s agrees and understands that while this Facility is
being introduced without any charges being levied; in case
charges are to be levied on a future date he agrees to pay such
charges and nonpayment in such an event can lead to
termination of these services.
2) Any dispute arising out of or in connection with these Terms and
Conditions, will be referred to the arbitration of a sole arbitrator to
be appointed by the AMC, in accordance with the Arbitration &
Conciliation Act, 1996.
Axis Triple Advantage Fund 94
3) These Terms and Conditions are subject to applicable SEBI (Mutual
Funds) Regulations, 1996 as amended from time to time and
includes Guidelines, Circular press release or Notification that may
be issued.
EASY SMS FACILITY
This facility is available for individual investors (registration process to
be completed by the investor to avail this facility). For details of the
registration process, please contact our Investor Service
Centres/website of the AMC.
All individual investors applying on “Sole” or “Joint (Anyone or
Survivor)” basis in their own capacity shall be eligible to avail the
facility for permitted transactions i.e. for lump sum purchase,
redemption and switch transactions on the below mentioned terms
and conditions: “Terms and Conditions” mean the terms and
conditions set out below by which the Facility shall be used/availed
by the Investors and shall include all modifications and supplements
made by AMC thereto from time to time.
Initial Investment has to be through the physical mode wherein the
Investor has to sign a one time debit mandate for bank accounts
pertaining to designated banks with which the AMC may have an
arrangement. This facility is extended to the bank with which the Fund
would have an arrangement from time to time. Transaction amount
may be restricted by the AMC from time to time in line with prudent
risk management requirements and to protect the overall interest of
the Investors. Investor will be allowed transactions over SMS after 30
days from the date of submission of one time mandate. Investor will
not be permitted to avail the facility for Redemptions/Switch
transactions if bank mandate is changed within last 15 days. AMC will
have right to modify the procedure of transaction processing without
any prior intimation to the Investor.
The AMC has a right to ask such information (Key Information) from
the available data of the Investors before allowing him access to avail
the Facility. If for any reason, the AMC is not satisfied with the replies of
the Investors, the AMC has at its sole discretion the right of refusing
access without assigning any reasons to the Investors.
This facility can be availed only through the registered mobile number
of the Investor.
It is clarified that the Facility is only with a view to accommodate
/facilitate the Investors and offered at the sole discretion of the AMC.
The AMC is not bound and/or obliged in any way to give access to
Facility to Investors. The Investors shall check his/her account records
carefully and promptly. If the Investors believe that there has been a
mistake in any transaction using the Facility, or that unauthorized
transaction has been effected, the Investors shall notify the AMC
immediately. If the Investors defaults in intimating the discrepancies in
the statement within a period of fifteen days of receipt of the
statements, he waives all his rights to raise the same in favour of the
AMC, unless the discrepancy /error is apparent on the face of it. By
opting for the facility the Investors hereby irrevocably authorizes and
instructs the AMC to act as his /her agent and to do all such acts as
AMC may find necessary to provide the Facility.
The Investors shall at all times be bound by any modifications and/or
variations made to these Terms and Conditions by the AMC at their
sole discretion and without notice to them.
Axis Triple Advantage Fund 95
The Investor agrees and confirms that the AMC has the right to ask the
Investor for an oral or written confirmation of any transaction request
using the Facility and/or any additional information regarding the
Account of the Investor. The Investor agrees and confirms that the
AMC may at its sole discretion suspend the Facility in whole or in part
at any time without prior notice. The Investor shall not assign any right
or interest or delegate any obligation arising herein. The Investor shall
take responsibility for all the transactions conducted by using the
Facility and will abide by the record of transactions generated by the
AMC. Further, the Investor confirms that such records generated by
the AMC shall be conclusive proof and binding for all purposes and
may be used as evidence in any proceedings and unconditionally
waives all objections in this behalf.
The Investor agrees that use of the Facility will be deemed
acceptance of the Terms and Conditions and the Investor will
unequivocally be bound by these Terms and Conditions. The Investor
agrees that all transactions received shall be eligible for applicable
NAV subject to necessary formalities to be complied by the AMC in
case of transaction through the facility on or before the uniform cut
off time.
Requests like change in bank mandate, change of nomination,
change in mode of holding, change of address or such other requests
as the AMC may decide from time to time will not be permitted using
the facility.
Investors should SMS HELP PURCHASE/REDEMPTION/SWITCH to
9212010033 in order to avail the facility post registration. The
procedure for availing the facility will be communicated to the
investor. Alternatively, the investor can also get in touch with the
Investor Service Centres of the AMC.
Karvy, Registrar & Transfer Agents to Axis Mutual Fund having its office
at Unit: Axis Mutual Fund, Karvy Selenium, Tower B, Plot number 31 &
32, Financial District, Gachibowli, Hyderabad - 500008 will be the
official point of acceptance for such transactions received for Axis
Mutual Fund schemes.
The investor agrees to indemnify and keep indemnified Axis AMC its
Directors, employees, representatives of the AMC, Axis Mutual Fund
and Trustees (indemnified parties) from and against all actions, claims,
demands, liabilities, obligations, losses, damages, costs and expenses
of whatever nature (whether actual or contingent) directly or
indirectly suffered or incurred, against the indemnified parties
whatsoever arising from or in connection with the Easy Call Facility.
The Investor/s shall not hold the AMC liable and shall keep it
indemnified for the following:
1) For any transaction using the Facilities carried out in good faith by
the AMC on instructions of the Investor/s.
2) For any loss or damage incurred or suffered by the Investor/s due
to any error, defect, failure or interruption in the provision of the
Facility.
3) For any negligence / mistake or misconduct by the Investor/s.
4) For any breach or non-compliance by the Investor/s of the
rules/terms and conditions stated herein.
5) For accepting instructions given by any one of the Investor/s in
case of joint account/s having mode of operations as “anyone or
survivor”.
6) For not carrying out any such instructions where the AMC has
Axis Triple Advantage Fund 96
reason to believe (which decision of the AMC the Investor/s shall
not question or dispute) that the instructions given are not genuine
or are otherwise improper, unclear, vague or raise a doubt.
7) For carrying out a transaction after such reasonable verification as
the AMC may deem fit regarding the identity of the Investor/s
MISCELLANEOUS:
1) The Investor/s agrees and understands that while this Facility is
being introduced without any charges being levied; in case
charges are to be levied on a future date he agrees to pay such
charges and nonpayment in such an event can lead to
termination of these services.
2) Any dispute arising out of or in connection with these Terms and
Conditions, will be referred to the arbitration of a sole arbitrator to
be appointed by the AMC, in accordance with the Arbitration &
Conciliation Act, 1996.
3) These Terms and Conditions are subject to applicable SEBI (Mutual
Funds) Regulations, 1996 as amended from time to time and
includes Guidelines, Circular press release or Notification that may
be issued.
DIVIDEND SWEEP OPTION
The terms and conditions of Dividend Sweep Option (DSO) are as
follows:
1) DSO is a facility wherein unit holder(s) of eligible scheme(s)
[hereinafter referred to as "Source Scheme(s)"] of Axis Mutual Fund
can opt to automatically invest the dividend (as reduced by the
amount of applicable statutory levy) declared by the Source
Scheme into other eligible Scheme(s) [hereinafter referred to as
"Target Scheme(s)"] of Axis Mutual Fund.
2) The facility is available under all the open ended schemes of Axis
Mutual Fund except Exchange Traded Funds (ETFs).
3) DSO facility is available to unit holder(s) only under the Dividend
Plan / Option of the Source Scheme(s). However, the DSO facility
will not be available to unit holder(s) under the Daily Dividend
Option in the Source Scheme(s). Unit holder’s enrolment under the
DSO facility will automatically override any previous instructions for
'Dividend Payout' or 'Dividend Reinvestment' facility in the Source
Scheme.
4) The enrolment for DSO facility should be for all units under the
respective Dividend Plan / Option of the Source Scheme.
Instructions for part Dividend Transfer and part Dividend Payout /
Reinvestment will not be accepted. The dividend amount will be
invested in the Target Scheme under the same folio. Accordingly,
the unit holder(s) details and mode of holding in the Target
Scheme will be same as in the Source Scheme.
5) The enrolment to avail of DSO facility has to be specified for each
Scheme/Plan/Option separately and not at the folio level.
6) Under DSO, dividend declared (as reduced by the amount of
applicable statutory levy and deductions) in the Source scheme
(subject to minimum of Rs. 1,000/-) will be automatically invested
into the Target Scheme, as opted by the unit holder, on the
immediate next Business Day after the Record Date at the
applicable NAV of the Target Scheme, subject to applicable load
as specified under paragraph 9 below and accordingly
equivalent units will be allotted in the Target Scheme, subject to
the terms and conditions of the respective Target Scheme.
7) The provision for 'Minimum Application Amount' specified in the
respective Target Scheme's Scheme Information Document (SID)
will not be applicable under DSO. E.g. the minimum application
amount for new investors in Axis Equity Fund - Growth Plan is
Axis Triple Advantage Fund 97
5,000/-. However in case of DSO, a Unit Holder can avail of the
facility irrespective of the amount of dividend (subject to a
minimum of 1,000/-).
8) The Minimum amount of dividend eligible for transfer under
Dividend Sweep Option is 1,000/- (Rupees One Thousand Only). In
case the dividend sweep is being less than eligible amount, then
the dividend will be re-invested in source scheme/ payout as per
the existing option.
9) Load Structure:
The dividend amount to be invested under the DSO from the
Source Scheme to the Target Scheme shall be invested by
subscribing to the units of the Target Scheme at applicable NAV,
subject to payment of Entry/Exit Load as under:
Entry Load (Target Scheme)
Direct Applications & Applications routed through any
distributor/agent/broker: Nil
Exit Load (Source Scheme): Nil
Exit Load (Target Scheme): As per the relevant SID(s)
The Trustee/AMC reserves the right to change the load structure
under the DSO Facility at any time in future on a prospective basis.
10) The Account Statement will be issued by mail or by email (if opted
by the unit holder) to the unit holder as per regulations. In case of
specific request received from unitholders, the Mutual Fund shall
endeavour to provide the account statement to the unitholders
after every transaction of Dividend Transfer.
11) Unitholders who wish to enroll for DSO facility are required to fill
DSO Enrolment Form available with the ISCs, distributors/agents
and also displayed on the website www.axismf.com. The DSO
Enrolment Form should be completed in English in Block Letters
only. The DSO Enrolment Form complete in all aspects should be
submitted at any of the Investor Services centre (ISCs) of Axis
Mutual Fund.
12) The request for enrolment for DSO must be submitted at least 10
days prior to the Record Date for the dividend. In case of the
condition not being met, the enrolment would be considered
valid from the immediately succeeding Record Date of the
dividend, provided the difference between the date of receipt of
a valid application for enrolment under DSO and the next Record
Date for dividend is not less than 10 days.
13) Unitholder(s) are advised to read the SID of Target Scheme(s)
carefully before investing. The SID / KIM of the respective
Scheme(s) are available with the ISCs of Axis Mutual Fund, brokers
/ distributors and also displayed on the Axis Mutual Fund website
i.e. – www.axismf.com
14) Unit holders will have the right to discontinue the DSO facility at
any time by sending a written request to the ISC. Notice of such
discontinuance should be received at least 10 days prior to the
Dividend Record Date. On receipt of such request, the DSO
facility will be terminated. At the time of discontinuation of DSO
facility, the Unit holders should indicate their choice of option i.e.
dividend reinvestment or dividend payout. In the event the
Unitholder does not indicate his choice of dividend option, the
dividend, if any, will be reinvested (compulsory payout if dividend
reinvestment option is not available) in the Source Scheme. Once
the request for DSO is registered, then it shall remain in force unless
it is terminated as aforesaid.
15) The Trustee/AMC reserves the right to change/modify the terms
and conditions of the DSO.
The Trustee reserves the right to change/ modify the terms and
conditions of the DSO at a later date on a prospective basis.
Axis Triple Advantage Fund 98
TRIGGER FACILITY
Trigger is an event on the happening of which, the Fund will
automatically redeem / switch the units, as the case may be, on
behalf of the investor, on the date of happening of the event.
Accordingly, a trigger will activate a transaction when the event
selected for has reached the trigger point. All redemptions/ switches
etc. linked to triggers will always be at the applicable NAV based
prices of the day on which the event occurs. The investors opting for
the Trigger facility will also have right to redeem/ switch their holdings
before happening of the trigger event. Please note that the trigger is
an additional facility provided to the unit holders to save time on
completing the redemption/ switch formalities on happening of a
particular predetermined event. Trigger is not an assurance on part of
AMC / Fund to the investor that he / she will receive a particular
amount of money / appreciation and / or a percentage on
redemption or will get a particular amount of capital appreciation or
will minimise the loss to investor to a particular amount or percentage.
1. Schemes for which the facility is available:
Transferor Scheme(s) Transferee Scheme(s)
Axis Liquid Fund Axis Liquid Fund
Axis Treasury Advantage
Fund
Axis Treasury Advantage
Fund
Axis Short Term Fund Axis Short Term Fund
Axis Banking & PSU Debt
Fund
Axis Banking & PSU Debt
Fund
Axis Bluechip Fund Axis Bluechip Fund
Axis Midcap Fund Axis Midcap Fund
Axis Focused 25 Fund Axis Focused 25 Fund
Axis Triple Advantage Fund Axis Triple Advantage Fund
Axis Regular Saver Fund Axis Regular Saver Fund
Axis Gold Fund Axis Gold Fund
Axis Dynamic Bond Fund Axis Dynamic Bond Fund
Axis Strategic Bond Fund Axis Strategic Bond Fund
Axis Long Term Equity Fund Axis Long Term Equity Fund
Axis Children's Gift Fund Axis Children's Gift Fund
Axis Smallcap Fund Axis Smallcap Fund
Axis Corporate Debt Fund Axis Corporate Debt Fund
Axis Dynamic Equity Fund Axis Dynamic Equity Fund
Axis Gilt Fund
Axis Equity Hybrid Fund Axis Equity Hybrid Fund
Axis Multicap Fund Axis Multicap Fund
Axis Growth Opportunities
Fund
Axis Growth Opportunities
Fund
Axis Ultra Short Term Fund Axis Ultra Short Term Fund
Axis Overnight Fund Axis Overnight Fund
Axis Nifty 100 Index Fund Axis Nifty 100 Index Fund
@ Investors who have completed the lock-in period specified in the
Scheme Information Document may apply for trigger facility.
3. Under the Trigger facility, investors will have the following options on
the date of happening of the event:
a) Full Redemption / Switch Out
b) Redemption / Switch Out to the extent of capital appreciation only
c) Redemption / Switch Out to the extent of Principal amount only
The trigger facility is available only for the options specified above
Axis Triple Advantage Fund 99
and is not available for any adhoc amount that the investor may
specify.
4. The investors can select any one of the following trigger option(s)
under various plans / options of the scheme:
i. Option to redeem / switch out in the event, Nifty Index reaches or
exceeds a specified level, at the end of any business day.
Under this option, the investor can specify that if the index (NIFTY)
reaches or exceeds a particular level at the close of any business day,
then the amount specified by the investor will be either redeemed /
switched to the selected transferee scheme.
ii. Option to redeem / switch out in the event Nifty Index reaches or
goes below a specified level, at the end of any business day.
Under this facility, the investor can specify that if the index (NIFTY)
reaches a particular level or goes below that at the close of any
business day, then the amount specified shall either be redeemed /
switched to the selected transferee scheme.
iii. Option to redeem / switch out in the event NAV reaches or
exceeds a specified level.
Under this facility, the investor can specify the Net Asset Value (NAV)
on reaching / exceeding which the amount specified will be
redeemed / switched to the selected transferee scheme.
iv. Option to redeem / switch out in the event NAV appreciates by a
specified percentage.
Under this facility, the investor can choose a specific percentage, by
which, if the scheme NAV appreciates, then the amount specified will
be redeemed / switched to the selected transferee scheme.
v. Option to redeem / switch out in the event NAV appreciates or
depreciates by a specified percentage.
Under this facility, the investor can choose a specific percentage, by
which, if the scheme NAV appreciates or depreciates, then the
amount specified will be redeemed / switched to the selected
transferee scheme.
vi. Option to redeem / switch out in the event NAV depreciates by a
specified percentage
Under this facility, the investor can choose a specific percentage, by
which, if the scheme NAV depreciates, then the amount specified will
be redeemed / switched to the selected transferee scheme.
Notes: -
A. For point no. iii above - The NAV level (in INR terms) specified by the
Unit holder must be in multiples of 5 paisa e.g. INR 10.50, INR.10.55,
INR.10.60 etc.
B. For points no. iv, v and vi above - The NAV percentage level
specified by the Unit holder must be in multiples of 1 %.
Terms & Conditions:
1. On the trigger date (the day of event occurrence), the applicable
amount will be redeemed /switched from the transferor scheme at
the closing NAV of the day i.e. the trigger date.
2. Switches can be made only where so permitted by the respective
Scheme Information Document of the Transferor/ Transferee schemes.
3. Once a trigger is activated and a transaction is processed, the
same will not be reversed and it will be final and binding upon the Unit
holder.
Axis Triple Advantage Fund 100
4. Trigger once activated would expire and would not be executed
again.
5. Trigger facility shall be applicable subject to payment of exit load in
the transferor scheme(s), if any.
6. The specified trigger will fail, if the investor(s) do not maintain
sufficient balance in the scheme at the time of registration of trigger
and on the trigger date.
7. Trigger will not get executed in case units are pledged or where lien
is marked on units, at the time of receipt of request for trigger.
8. Day closing Nifty Index level would be considered in case of triggers
linked to Nifty.
9. In case of partial or full switch/redemption, any trigger already
registered for a particular transaction will be deactivated.
10."Minimum Application Amount/ Minimum Additional Investment
Amount" specified in the Scheme Information Document of the
transferee schemes will not be applicable for Switches based on
specified triggers limits being achieved.
11.NAV for switch /redemption: NAV of the trigger day will be
considered for the purpose of Redemption/ switch. In case of non-
business day in debt schemes but business day in case of equity
schemes, switch-out from equity schemes will be processed on the
trigger day and switch-in to Debt/ Liquid schemes will be processed
on the next business day.
12.In case, if no plan / option is specified for switch transaction under
trigger option, default plan / option, as specified in respective
Scheme Information Document will be considered.
13. In case of any ambiguity or where the investor fails to specify
whether the redemption / switch to be made is full or to the extent of
capital appreciation or to the extent of Principal amount only, the
transaction will not be processed.
14.All requests for registering or deactivating the trigger facility shall
be subject to an advance notice of 10 (Ten) working days. Investors
can deactivate the trigger facility by sending a written request to the
Investor Service Centers.
APPLICATION VIA ELECTRONIC MODE
Subject to the Investor fulfilling certain terms and conditions stipulated
by the AMC as under, Axis Asset Management Company Ltd., Axis
Mutual Fund or any other agent or representative of the AMC, Mutual
Fund, the Registrar & Transfer Agents may accept transactions
through any electronic mode including fax/web/ electronic
transactions as permitted by SEBI or other regulatory authorities :
i. The acceptance of the fax/web/electronic transactions will be
solely at the risk of the transmitter of the fax/web/ electronic
transactions and the Recipient shall not in any way be liable or
responsible for any loss, damage caused to the transmitter
directly or indirectly, as a result of the transmitter sending or
purporting to send such transactions.
ii. The recipient will also not be liable in the case where the
transaction sent or purported to be sent is not processed on
account of the fact that it was not received by the Recipient.
iii. The transmitter’s request to the Recipient to act on any
fax/web/electronic transmission is for the transmitter’s
convenience and the Recipient is not obliged or bound to act
on the same.
iv. The transmitter acknowledges that fax/web/electronic
transactions is not a secure means of giving instructions/
transactions requests and that the transmitter is aware of the risks
involved including those arising out of such transmission.
v. The transmitter authorizes the recipient to accept and act on
Axis Triple Advantage Fund 101
any fax/web/ electronic transmission which the recipient
believes in good faith to be given by the transmitter and the
recipient shall be entitled to treat any such fax/web/ electronic
transaction as if the same was given to the recipient under the
transmitter’s original signature.
vi. The transmitter agrees that security procedures adopted by the
recipient may include signature verification, telephone call
backs which may be recorded by tape recording device and
the transmitter consents to such recording and agrees to
cooperate with the recipient to enable confirmation of such
fax/web/ electronic transaction requests.
vii. The transmitter accepts that the fax/web/ electronic
transactions, where applicable shall not be considered until time
stamped as a valid transaction request in the Scheme in line with
the Regulations.
In consideration of the recipient from time to time accepting and at
its sole discretion acting on any fax/ web/electronic transaction
request received / purporting to be received from the transmitter, the
transmitter agrees to indemnify and keep indemnified the AMC,
Directors, employees, agents, representatives of the AMC, Axis Mutual
Fund and Trustee from and against all actions, claims, demands,
liabilities, obligations, losses, damages, costs and expenses of
whatever nature (whether actual or contingent) directly or indirectly
suffered or incurred, sustained by or threatened against the
indemnified parties whatsoever arising from or in connection with or
any way relating to the indemnified parties in good faith accepting
and acting on fax/web/ electronic transaction requests including
relying upon such fax/ electronic transaction requests purporting to
come from the Transmitter even though it may not come from the
Transmitter.
The AMC reserves the right to discontinue the facility at any point of
time.
Distributors offer goal based financial planning (facility) to their clients.
In order to encourage Investors to plan for their investments based on
life goals (e.g. child’s education, retirement, wealth creation, etc), the
Asset Management Company would assist in providing such facilities.
Since such facilities are aimed at helping Investors achieving their
financial goals, certain features offered by Axis Mutual Fund may not
be offered/available under such goal based investment folios. Under
a folio, no additional purchase, switch and part redemption would be
allowed. Requests for changes in goals/goal details will not be
accepted. Under normal circumstances, there is no restriction on the
right of the investor to transact directly with the mutual fund.
Multiple goals based investments can be applied for under one
application form and a single cheque in the name of ‘Axis Mutual
Fund First Investor name’ or ‘Axis Mutual Fund Permanent Account
Number’ would have to be provided by the Investor. Transaction
charge would be charged at application form level.
In case there is a broker code change/the investor is desirous of being
a direct investor with the mutual fund, the investment will cease to be
a part of the facility. Investors may note that investments under such
facilities would be based on advice from the distributor /Financial
advisor and the Asset Management Company acts purely in capacity
as a facilitator for such transactions. The distributor(s) may choose to
Axis Triple Advantage Fund 102
modify/change or discontinue the above stated facility. In such a
case the investors may continue their investment with the AMC/any
other distributor.
For further details/clarifications investors may contact the distributor(s)
or the ISCs of the AMC.
AUTOMATIC ENCASHMENT PLAN FACILITY (‘AEP facility’)
AEP facility enables unitholders to redeem fixed percentage of
investment amount at a fixed frequency i.e. monthly frequency.
The terms and conditions of AEP facility are as under:
1. Investors investing in specified schemes can avail AEP facility by
providing standing instruction to redeem fixed percentage of
investment amount at a fixed frequency i.e. monthly frequency.
2. AEP facility is available to Unitholders under Growth Option of the
Scheme. Unitholders have option to select fixed percentage i.e.
0.7% of investment amount for redemption at the fixed frequency.
3. The fixed percentage of investment amount under AEP facility will
be calculated based on investment amount. The units equal to
the said amount will be redeemed on 25th of each month (or next
business day if that day is not a business day) subject to
applicable exit load and taxes; if any.
4. AEP facility is available only for subscription transaction by way of
lump sum investment or switch in to the specified scheme(s).
Investment transactions in the Scheme(s) through SIP or STP (in)
facilities will not be eligible for AEP facility.
5. No Special Products viz STP (out), SWP, etc will be registered for
investments under AEP facility.
6. AEP facility is available for only un encumbered units held in
physical mode (non-demat mode).
7. Redemption of units received under the Scheme(s) will be done
on First-in-First out basis.
8. If redemption payable under AEP facility is less than Rs. 500/- then
no redemption will be effected and the amount shall remain
invested in the Scheme(s). Consequently, no pay out will be made
for the said month.
9. Units under AEP facility offered under aforesaid Scheme(s) will be
allotted in a separate folio for existing investors under the
Scheme(s).
10. AEP facility will not be available for existing investments under the
Scheme(s).
11. AEP facility shall be activated/ deactivated subject to an
advance notice of 10 business day. No modification is allowed
after registration of request for AEP facility.
AMC/Trustee reserves the right to change / modify the terms &
conditions at any point of time.
Accounts Statements
On acceptance of the application for subscription, an allotment
confirmation specifying the number of units allotted by way of e-
mail and/or SMS within 5 business days from the date of receipt of
transaction request/allotment will be sent to the Unit Holders
registered e-mail address and/or mobile number.
In case of Unit Holders holding units in the dematerialized mode, the
Fund will not send the account statement to the Unit Holders. The
statement provided by the Depository Participant will be equivalent
to the account statement.
For those unit holders who have provided an e-mail address, the
AMC will send the account statement by e-mail.
Unit holders will be required to download and print the documents
Axis Triple Advantage Fund 103
after receiving e-mail from the Mutual Fund. Should the Unit holder
experience any difficulty in accessing the electronically delivered
documents, the Unit holder shall promptly advise the Mutual Fund
to enable the Mutual Fund to make the delivery through alternate
means. It is deemed that the Unit holder is aware of all security risks
including possible third party interception of the documents and
contents of the documents becoming known to third parties.
The Unit holder may request for a physical account statement by
writing/calling the AMC/ISC/R&T. In case of specific request
received from the Unit Holders, the AMC/Fund will provide the
Account Statement to the Investors within 5 business days from the
receipt of such request.
The AMC shall issue Unit certificates within 5 business days from the
date of receipt of request where the applicant so desires.
CONSOLIDATED ACCOUNT STATEMENT (CAS)
I. For Unitholders not holding Demat Account:
CAS is an account statement detailing all the transactions and
holding at the end of the month including transaction charges paid
to the distributor, across all schemes of all mutual funds. CAS issued to
investors shall also provide the total purchase value/cost of
investment in each scheme.
Further, CAS issued for the half-year (September/ March) shall also
provide
a. The amount of actual commission paid by AMC/Mutual Fund to
distributors (in absolute terms) during the half-year period against
the concerned investor’s total investments in each scheme.
b. The scheme’s average Total Expense Ratio (in percentage terms)
along with the break up between Investment and Advisory fees,
Commission paid to the distributor and Other expenses for the
period for each scheme’s applicable plan (regular or direct or
both) where the concerned investor has actually invested in.
The word transaction will include purchase, redemption, switch,
dividend payout, dividend reinvestment, systematic investment plan,
systematic withdrawal plan and systematic transfer plan.
a) For Unitholders not holding Demat Account:
CAS for each calendar month shall be issued, on or before tenth day
of succeeding month by the AMC.
The AMC shall ensure that a CAS for every half yearly (September/
March) is issued, on or before tenth day of succeeding month,
detailing holding at the end of the six month, across all schemes of all
mutual funds, to all such investors in whose folios no transaction has
taken place during that period.
The AMC shall identify common investors across fund houses by their
Permanent Account Number (PAN) for the purposes of sending CAS.
In the event the account has more than one registered holder, the
first named Unit Holder shall receive the Account Statement.
The AMC will send statement of accounts by e-mail where the
Investor has provided the e-mail id. Additionally, the AMC may at its
discretion send Account Statements individually to the investors.
b) For Unitholders holding Demat Account:
SEBI vide its circular no. CIR/MRD/DP/31/2014 dated November 12,
2014, in order to enable a single consolidated view of all the
investments of an investor in Mutual Fund and securities held in demat
Axis Triple Advantage Fund 104
form with Depositories, has required Depositories to generate and
dispatch a single CAS for investors having mutual fund investments
and holding demat accounts.
In view of the aforesaid requirement, for investors who hold demat
account, for transactions in the schemes of Axis Mutual Fund on or
after February 1, 2015, a CAS, based on PAN of the holders, will be
sent by Depositories to investors holding demat account, for each
calendar month within 10th day of the succeeding month to the
investors in whose folios transactions have taken place during that
month.
CAS will be sent by Depositories every half yearly (September/March),
on or before 10th day of succeeding month, detailing holding at the
end of the six month, to all such investors in whose folios and demat
accounts there have been no transactions during that period.
CAS sent by Depositories is a statement containing details relating to
all financial transactions made by an investor across all mutual funds
viz. purchase, redemption, switch, dividend payout, dividend
reinvestment, systematic investment plan, systematic withdrawal plan,
systematic transfer plan (including transaction charges paid to the
distributor) and transaction in dematerialized securities across demat
accounts of the investors and holding at the end of the month.
In case of demat accounts with nil balance and no transactions in
securities and in mutual fund folios, the depository shall send account
statement in terms of regulations applicable to the depositories.
Investors whose folio(s)/ demat account(s) are not updated with PAN
shall not receive CAS.
Consolidation of account statement is done on the basis of PAN.
Investors are therefore requested to ensure that their folio(s)/ demat
account(s) are updated with PAN. In case of multiple holding, it shall
be PAN of the first holder and pattern of holding.
For Unit Holders who have provided an e-mail address to the Mutual
Fund or in KYC records, the CAS is sent by e-mail. However, where an
investor does not wish to receive CAS through email, option is given to
the investor to receive the CAS in physical form at the address
registered in the Depository system.
Investors who do not wish to receive CAS sent by depositories have an
option to indicate their negative consent. Such investors may contact
the depositories to opt out. Investors who do not hold demat account
continue to receive CAS sent by RTA/AMC, based on the PAN,
covering transactions across all mutual funds as per the current
practice.
In case an investor has multiple accounts across two depositories; the
depository with whom the account has been opened earlier will be
the default depository.
The dispatches of CAS by the depositories constitute compliance by
the AMC/ the Fund with the requirement under Regulation 36(4) of
SEBI (Mutual Funds) Regulations. However, the AMC reserves the right
to furnish the account statement in addition to the CAS, if deemed fit
in the interest of investor(s).
Investors whose folio(s)/demat account(s) are not updated with PAN
shall not receive CAS. Investors are therefore requested to ensure that
Axis Triple Advantage Fund 105
their folio(s)/demat account(s) are updated with PAN.
For folios not included in the CAS (due to non-availability of PAN), the
AMC shall issue monthly account statement to such Unit holder(s), for
any financial transaction undertaken during the month on or before
10th of succeeding month by mail or email.
For folios not eligible to receive CAS (due to non-availability of PAN),
the
AMC shall issue an account statement detailing holding across all
schemes at the end of every six months (i.e. September/March), on or
before 10th day of succeeding month, to all such Unit holders in whose
folios no transaction has taken place during that period shall be sent
by
mail/e-mail.
OPTION TO HOLD UNITS IN DEMATERIALISED (DEMAT) FORM
Investors shall have an option to receive allotment of Mutual Fund
units in their demat account while subscribing to the Scheme in terms
of the guidelines/ procedural requirements as laid by the Depositories
(NSDL/CDSL) from time to time.
Investors desirous of having the Units of the Scheme in dematerialized
form should contact the ISCs of the AMC/Registrar.
Where units are held by investor in dematerialized form, the demat
statement issued by the Depository Participant would be deemed
adequate compliance with the requirements in respect of dispatch of
statements of account.
In case investors desire to convert their existing physical units
(represented by statement of account) into dematerialized form or
vice versa, the request for conversion of units held in physical form into
Demat (electronic) form or vice versa should be submitted alongwith
a Demat/Remat Request Form to their Depository Participants. In case
the units are desired to be held by investor in dematerialized form, the
KYC performed by Depository Participant shall be considered
compliance of the applicable SEBI norms.
Units held in Demat form are freely transferable in accordance with
the provisions of SEBI (Depositories and Participants) Regulations, as
may be amended from time to time. Transfer can be made only in
favour of transferees who are capable of holding units and having a
Demat Account. The delivery instructions for transfer of units will have
to be lodged with the Depository Participant in requisite form as may
be required from time to time and transfer will be affected in
accordance with such rules / regulations as may be in force
governing transfer of securities in dematerialized mode.
The demat option is provided to all schemes and options of Axis
Mutual Fund except for all daily and weekly dividend options under all
debt and liquid schemes. Further, demat option shall also be
available for SIP transactions. Units will be allotted based on the
applicable NAV as per Scheme Information Document and will be
credited to investors Demat Account on weekly basis on realization of
funds.
For details, Investors may contact any of the Investor Service Centres
of the AMC.
Dividend The Dividend warrants/cheque/demand draft shall be dispatched to
the Unit holders within 30 days of the date of declaration of the
Axis Triple Advantage Fund 106
Dividend.
If the payment is not made within the period stipulated in the
Regulations, the Unit Holder shall be paid interest @15% p.a. or as
specified by SEBI for the delayed period and the interest shall be
borne by the AMC.
The Dividend proceeds will be paid by way of EFT/NEFT/RTGS/ Direct
credits/ any other electronic manner if sufficient banking account
details are available with Mutual Fund for Investor.
In case of specific request for Dividend by
warrants/cheques/demand drafts or unavailability of sufficient details
with the Mutual Fund, the Dividend will be paid by
warrant/cheques/demand drafts and payments will be made in
favour of the Unit holder (registered holder of the Units or, if there are
more than one registered holder, only to the first registered holder)
with bank account number furnished to the Mutual Fund (please note
that it is mandatory for the Unit holders to provide the Bank account
details as per the directives of SEBI).
Redemption How to Redeem
A Transaction Slip can be used by the Unit Holder to request for
Redemption. The requisite details should be entered in the Transaction
Slip and submitted at an ISC/Official Point of Acceptance.
Transaction Slips can be obtained from any of the ISCs/Official Points
of Acceptance. Investor can also place redemption through
Telephone using Easy Call/Easy SMS facility or may redeem Online
through the AMC’s website subject to the terms and conditions as
maybe stipulated from time to time.
Procedure for payment of redemption.
1. Resident Investors
Redemption proceeds will be paid to the investor through Real Time
Gross Settlement (RTGS), NEFT, Direct Credit, Cheque or Demand
Draft.
a) If investor had provided IFSC code in the application form, by
default redemption proceeds shall be credited to Investor’s
account through RTGS/NEFT.
b) If Investor has neither provided RTGS code nor the NEFT code but
have a bank account with Banks with whom the Fund would has
an arrangement for Direct Credit from time to time, the proceeds
will be paid through direct credit.
c) Incase if investor bank account does not fall in the above a to b
categories, redemption proceeds will be paid by
cheques/demand drafts, marked "Account Payee only" and
drawn in the name of the sole holder / first-named holder (as
determined by the records of the Registrar).
The bank name and bank account number, as specified in the
Registrar's records, will be mentioned in the cheque/demand
draft. The cheque will be payable at par at all bank branch or
specific cities. If the Unit Holder resides in any other city, he will be
paid by a demand draft payable at the city of his residence and
the demand draft charges shall be borne by the AMC (please
refer SAI for details).
The redemption proceeds will be sent by courier or (if the
addressee city is not serviced by the courier) by registered
post/UCP. The dispatch for the purpose of delivery through the
courier / postal department, as the case may be, shall be treated
Axis Triple Advantage Fund 107
as delivery to the investor. The AMC / Registrar are not responsible
for any delayed delivery or non-delivery or any consequences
thereof, if the dispatch has been made correctly as stated in this
paragraph.
The AMC reserves the right to change the sequence of payment
from (a) to (c) without any prior notice
For Unit holders who have given specific request for Cheque/Demand
Draft Redemption proceeds will be paid by cheque/demand drafts
and payments will be made in favour of the Unit holder with bank
account number furnished to the Mutual Fund
(Please note that it is mandatory for the Unit holders to provide the
Bank account details as per the directives of SEBI). Redemption
cheques will be sent to the Unit holder’s address.
The Trustee, at its discretion at a later date, may choose to alter or
add other modes of payment.
2. Non-Resident Investors/PIO/OCI
For NRIs, Redemption proceeds will be remitted depending upon the
source of investment as follows:
(i) Repatriation basis
When Units have been purchased through remittance in foreign
exchange from abroad or by cheque / draft issued from proceeds of
the Unit Holder's FCNR deposit or from funds held in the Unit Holder's
Non Resident (External) account kept in India the proceeds can also
be sent to his Indian address for crediting to his NRE / FCNR / non-
resident (Ordinary) account, if desired by the Unit Holder.
(ii) Non-Repatriation basis
When Units have been purchased from funds held in the Unit Holder's
non-resident (Ordinary) account, the proceeds will be sent to the Unit
Holder's Indian address for crediting to the Unit Holder's non-resident
(Ordinary) account.
(iii) FPI
For FPIs, the designated branch of the authorized dealer may allow
remittance of net sale / maturity proceeds (after payment of taxes) or
credit the amount to the Foreign Currency account or Non-resident
Rupee account of the FPI maintained in accordance with the
approval granted to it by the RBI. The Fund will not be liable for any
delays or for any loss on account of any exchange fluctuations, while
converting the rupee amount in foreign exchange in the case of
transactions with NRIs/ FPIs. The Fund may make other arrangements
for effecting payment of redemption proceeds in future.
Effect of Redemptions
The number of Units held by the Unit Holder in his / her / its folio will
stand reduced by the number of Units Redeemed. Units once
redeemed will be extinguished and will not be re-issued.
The normal processing time may not be applicable in situations where
such details are not provided by investors/Unit holders. The AMC will
not be responsible for any loss arising out of fraudulent encashment of
cheques and/or any delay/loss in transit.
Axis Triple Advantage Fund 108
AMC reserves the right to provide the facility of redeeming Units of the
Scheme through an alternative mechanism including but not limited
to online transactions on the Internet, as may be decided by the AMC
from time to time. The alternative mechanism may also include
electronic means of communication such as redeeming Units online
through the AMC Website or any other website etc. The alternative
mechanisms would be applicable to only those investors who opt for
the same in writing and/or subject to investor fulfilling such conditions
as AMC may specify from time to time.
Signature mismatches
If the AMC / Registrar finds a signature mismatch, while processing the
redemption/ switch out request, then the AMC/ Registrar reserves the
right to process the redemption only on the basis of supporting
documents confirming the identity of the investors. List of such
documents would be notified by AMC from time to time on its
website.
Important Note: All applicants for Purchase of Units /Redemption of
Units must provide a bank name, bank account number, branch
address, and account type in the Application Form.
Unclaimed Redemptions and Dividends
As per circular no. MFD/CIR/ 9/120/2000, dated November 24, 2000
issued by SEBI, the unclaimed Redemption and dividend amounts
shall be deployed by the Fund in money market instruments and such
other instruments/securities as maybe permitted from time to time. The
investment management fee charged by the AMC for managing
such unclaimed amounts shall not exceed 50 basis points. The circular
also specifies that investors who claim these amounts during a period
of three years from the due date shall be paid at the prevailing NAV.
Thus, after a period of three years, this amount can be transferred to a
pool account and the investors can claim the said amounts at the
NAV prevailing at the end of the third year. In terms of the circular, the
onus is on the AMC to make a continuous effort to remind investors
through letters to take their unclaimed amounts. The details of such
unclaimed amounts shall be disclosed in the annual report sent to the
Unit Holders.
Further, according to circular no. SEBI/HO/IMD/DF2/CIR/P/ 2016/37
dated February 25, 2016 the unclaimed Redemption and dividend
amounts may be deployed in separate plan of Liquid scheme/Money
market mutual fund scheme floated by Mutual Funds specifically for
deployment of the unclaimed Redemption and dividend amounts.
Delay in payment of
redemption /
repurchase proceeds
The AMC shall be liable to pay interest to the Unit holders at 15% or
such other rate as may be prescribed by SEBI from time to time, in
case the Redemption / Repurchase proceeds are not made within 10
Business Days of the date of Redemption / Repurchase. However, the
AMC will not be liable to pay any interest or compensation or any
amount otherwise, in case the AMC / Trustee is required to obtain
from the Investor / Unit holders verification of identity or such other
details relating to Subscription for Units under any applicable law or as
may be requested by a Regulatory Agency or any government
authority, which may result in delay in processing the application.
Facility to transact in
units of the Schemes
through MF Utility portal
& MFUI Points of Services
pursuant to
appointment of MF
Utilities India Pvt. Ltd.
AMC has entered into an Agreement with MF Utilities India Private Ltd.
(“MFUI”), a “Category II – Registrar to an Issue” under SEBI (Registrars
to an Issue and Share Transfer Agents) Regulations, 1993, for usage of
MF Utility (“MFU”) - a shared services initiative of various Asset
Management Companies, which acts as a transaction aggregation
portal for transacting in multiple Schemes of various Mutual Funds with
a single form and a single payment instrument.
Axis Triple Advantage Fund 109
Accordingly, investors are requested to note that in addition to the
existing official points of acceptance (“OPA”) for accepting
transactions in the units of the schemes of the Axis Mutual Fund as
disclosed in the SID, www.mfuonline.com i.e. online transaction portal
of MFU and the authorized Points of Service (“POS”) designated by
MUFI shall also be the OPA with effect from the dates as may be
specified by MFUI on its website/ AMC by issuance of necessary
communication.
All financial and non-financial transactions pertaining to Schemes of
Axis Mutual Fund can be done through MFU either electronically on
www.mfuonline.com or physically through the POS of MFUI with effect
from the respective dates as published on MFUI website against the
respective POS locations. The list of POS of MFUI is published on the
website of MFUI at www.mfuindia.com. This will be updated from time
to time.
The uniform cut-off time as prescribed SEBI (Mutual Funds) Regulations,
1996, circulars issued by SEBI and as mentioned in the SID / KIM of
Scheme shall be applicable for applications received on the portal of
MFUI i.e. www.mfuonline.com. However, investors should note that
transactions on the MFUI portal shall be subject to the terms &
conditions (including those relating to eligibility of investors) as
stipulated by MFUI / Axis Mutual Fund / the AMC from time to time
and in accordance to the laws applicable.
MFUI will allot a Common Account Number (“CAN”), a single
reference number for all investments in the Mutual Fund industry, for
transacting in multiple Schemes of various Mutual Funds through MFU
and to map existing folios, if any. Investors can create a CAN by
submitting the CAN Registration Form (CRF) and necessary
documents at the MFUI POS. The AMC and / or its Registrar and
Transfer Agent (RTA) shall provide necessary details to MFUI as may be
needed for providing the required services to investors / distributors
through MFU.
C. PERIODIC DISCLOSURES
Net Asset Value
This is the value per Unit
of the scheme on a
particular day. You can
ascertain the value of
your investments by
multiplying the NAV
with your Unit balance.
The AMC will calculate and disclose the NAV of the Scheme on all the
Business Days. The AMC shall update the NAVs on the website of the
AMC (www.axismf.com) and of the Association of Mutual Funds in
India - AMFI (www.amfiindia.com) before 11.00 p.m. on every Business
Day. If the NAVs are not available before the commencement of
Business Hours on the following day due to any reason, the Mutual Fund
shall issue a press release giving reasons and explaining when the
Mutual Fund would be able to publish the NAV.
Information regarding NAV can be obtained by the Unit holders /
Investors by calling or visiting the nearest ISC.
Monthly and Half yearly
Disclosures: Portfolio /
Financial Results
This is a list of securities
where the corpus of
the scheme is currently
invested. The market
value of these
investments is also
stated in portfolio
The AMC will disclose the portfolio of the Scheme (alongwith ISIN) as on
the last day of the month / half year on the website of the Mutual Fund
and AMFI within 10 days from the close of each month/ half year (i.e.
31st March and 30th September) respectively in a user-friendly and
downloadable spreadsheet format. Further, AMC shall publish an
advertisement in an all India edition of one national English daily
newspaper and one Hindi newspaper, every half year, disclosing the
hosting of the half-yearly statement of its schemes’ portfolio on the
website of the Mutual Fund and AMFI and the modes through which
unitholder(s) can submit a request for a physical or electronic copy of
the statement of scheme portfolio.
Axis Triple Advantage Fund 110
disclosures.
The AMC will also provide a dashboard, in a comparable,
downloadable (spreadsheet) and machine readable format, providing
performance and key disclosures like Scheme’s AUM, investment
objective, expense ratios, portfolio details, scheme’s past performance
etc. on website.
Half Yearly Results
The Mutual Fund shall within one month from the close of each half
year, that is on 31st March and on 30th September, host a soft copy of
its unaudited financial results on the website of the AMC and AMFI.
The mutual fund shall publish an advertisement disclosing the hosting of
such financial results on their website, in atleast one English daily
newspaper having nationwide circulation and in a newspaper having
wide circulation published in the language of the region where the
Head Office of the Mutual Fund is situated.
The unaudited financial results will also be displayed on the website of
the AMC and AMFI.
Annual Report The Scheme wise annual report or an abridged summary thereof shall
be mailed (emailed, where e mail id is provided unless otherwise
required) to all Unit holders not later than four months (or such other
period as may be specified by SEBI from time to time) from the date of
closure of the relevant accounting year (i.e. 31st March each year)
and full annual report shall be available for inspection at the Head
Office of the Mutual Fund and a copy shall be made available to the
Unit holders on request on payment of nominal fees, if any. Scheme
wise annual report shall also be displayed on the website of the AMC
(www.axismf.com) and Association of Mutual Funds in India
(www.amfiindia.com).
Unitholders whose email addresses are not registered with the Mutual
Fund may ‘opt-in’ to receive a physical copy of the annual report or an
abridged summary thereof.
Further, AMC shall provide a physical copy of the abridged summary of
the Annual Report, without charging any cost, on a specific request
received from a unitholder.
AMC shall also publish an advertisement every year, in an all India
edition of one national English daily newspaper and in one Hindi
newspaper, disclosing the hosting of the scheme wise annual report on
the website of the Mutual Fund and AMFI and the modes through
which a unitholder can submit a request for a physical or electronic
copy of the annual report or abridged summary thereof.
Associate Transactions Please refer to Statement of Additional Information (SAI).
Taxation
(Equity Oriented)
Rates applicable for
the FY 19-20.
The information is
provided for general
information only.
However, in view of the
individual nature of the
implications, each
investor is advised to
consult his or her own
Resident
Investors
Mutual Fund
Tax on Dividend Nil Dividend Distribution Tax
(DDT)
11.648% (10%+12%
Surcharge+4%cess)
Capital Gains:
Long Term
(Held for a period
of more than 12
Months)
10%(plus
applicable
surcharge and
cess) without
indexation (refer
note 5 below)
Nil
Axis Triple Advantage Fund 111
tax advisors/authorised
dealers with respect to
the specific amount of
tax and other
implications arising out
of his or her
participation in the
schemes.
Short Term
(Held for a period
of 12 months or
less)
15% (plus
applicable
surcharge and
cess)
Nil
1. Axis Mutual Fund is a Mutual Fund registered with the Securities &
Exchange Board of India and hence the entire income of the
Mutual Fund will be exempt from income tax in accordance with
the provisions of Section 10(23D) of the Income-tax Act, 1961 (the
Act).
2. Surcharge at the following rate to be levied in case of individual
/HUF unit holders for equity oriented mutual fund:
Total Income
Rate of
Surcharge
Exceeding 50 Lac but not exceeding 1
Crores 10%
Exceeding 1 Crores 15%
3. For income distributed after 1 October 2014, the mode of
calculation of distributed income u/s 115R for the purpose of
determining the amount of tax thereon has been modified which
shall result in higher effective rate of tax on such income distribution
by the Mutual Fund.
4. The Scheme will attract securities transaction tax (STT) at 0.001% on
the redemption value.
5. With effect from 1 April 2018, as per section 112A of the Act, long-
term capital gains, exceeding INR 100,000, arising from transfer of
equity oriented mutual funds, shall be chargeable at the rate of
10% (plus applicable surcharge and cess).
For further details on taxation please refer to the clause on Taxation in
the SAI
Investor services Investors can lodge any service request or complaints or enquire about
NAVs, Unit Holdings, Dividends, etc by calling the Investor line of the
AMC at "1800 221322" (toll-free number) and additional contact
number 8108622211 from 8.00 am to 8.00 pm (Monday to Friday) and
9.00 am to 6.00 pm (on Saturday and Sunday) or 4325 5100 (at local
call rate for enquiring at AMC ISC’s) or email –
[email protected]. The service representatives may require
personal information of the Investor for verification of his / her identity in
order to protect confidentiality of information. The AMC will at all times
endeavour to handle transactions efficiently and to resolve any
investor grievances promptly.
The service representatives may require personal information of the
Investor for verification of his / her identity in order to protect
confidentiality of information. The AMC will at all times endeavour to
handle transactions efficiently and to resolve any Investor grievances
promptly.
Any complaints should be addressed to Mr. Milind Vengurlekar who has
been appointed as the Investor Relations Officer and can be
contacted at:
Address : Axis Asset Management Company Ltd.
Axis House, 1st Floor, C-2, Wadia International Centre,
Pandurang Budhkar Marg, Worli,
Mumbai – 400 025
Phone no.: 022 43254123
Axis Triple Advantage Fund 112
For any grievances with respect to transactions through BSE StAR and /
or NSE MFSS, the investors / Unit Holders should approach either the
stock broker or the investor grievance cell of the respective stock
exchange.
D. COMPUTATION OF NAV
The Net Asset Value (NAV) per Unit under the Scheme will be computed by dividing the net
assets of the Scheme by the number of Units outstanding on the valuation day. The Mutual
Fund will value its investments according to the valuation norms, as specified in Schedule
VIII of the SEBI (MF) Regulations, or such norms as may be specified by SEBI from time to time.
The Net Assets Value (NAV) of the Units under the Scheme shall be calculated as shown
below:
NAV (Rs.) =
Market or Fair
Value of Scheme’s
Investments
+ Current Assets including
Accrued Income
- Current Liabilities
and Provisions
No. of Units outstanding under Scheme on the Valuation Day
The NAV shall be calculated up to two decimal places. However the AMC reserves the right
to declare the NAVs up to additional decimal places as it deems appropriate. Separate
NAV will be calculated and disclosed for each Option. The NAVs of the Growth Option and
the Dividend Option will be different after the declaration of the first Dividend.
The AMC will calculate and disclose the NAV of the Scheme on all the Business Days.
Axis Triple Advantage Fund 113
IV. FEES AND EXPENSES
This section outlines the expenses that will be charged to the Scheme.
A. NEW FUND OFFER (NFO) EXPENSES
These expenses are incurred for the purpose of various activities related to the NFO like
sales and distribution fees paid marketing and advertising, registrar expenses, printing and
stationary, bank charges etc.
In accordance with the provisions of SEBI circular no. SEBI/ IMD/CIR No. 1/64057/06 dated
April 04, 2006 and SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009, the Scheme, being
an open-ended scheme, the NFO expenses has been borne by the AMC/Sponsor.
B. ANNUAL SCHEME RECURRING EXPENSES
These are the fees and expenses for operating the Scheme. These expenses include
Investment Management and Advisory Fee charged by the AMC, Registrar and Transfer
Agents’ fee, marketing and selling costs etc. as given in the table below:
The AMC has estimated that up to 2.25% of the daily net assets of the Scheme will be
charged to the Scheme as expenses. For the actual current expenses being charged, the
Investor should refer to the website of the AMC.
Expense Head % of daily Net
Assets
Investment Management and Advisory fees Upto 2.25%
Trustee fees
Audit fees
Custodian fees
RTA fees
Marketing & Selling expense incl. agent commission
Cost related to investor communications
Cost of fund transfer from location to location
Cost of providing account statements and dividend redemption
cheques and warrants
Costs of statutory Advertisements
Cost towards investor education & awareness (at least 2 bps)
Brokerage & transaction cost over and above 12 bps and 5 bps for
cash and derivative market trades resp.
Goods & Services Tax (GST) on expenses other than investment and
advisory fees
GST on brokerage and transaction cost
Maximum total expense ratio (TER) permissible under Regulation
52(6)(c)
Upto 2.25%
Additional expenses under regulation 52(6A)(c) Upto 0.05%
Additional expenses for gross new inflows from specified cities under
regulation 52(6A)(b)
Upto 0.30%
Direct Plan shall have a lower expense ratio excluding distribution expenses, commission,
etc. and no commission for distribution of Units will be paid/ charged under Direct Plan.
All fees and expenses charged in a Direct Plan (in percentage terms) under various heads
including the investment and advisory fee shall not exceed the fees and expenses charged
under such heads in other than Direct Plan.
Fungibility of expenses: The expenses towards Investment Management and Advisory Fees
under Regulation 52(2) and the various sub-heads of recurring expenses mentioned under
Regulation 52(4) of SEBI (MF) Regulations are fungible in nature. Thus, there shall be no
internal sub-limits within the expense ratio for expense heads mentioned under Regulation
52 (2) and (4) respectively. Further, the additional expenses under Regulation 52(6A)(c)
may be incurred either towards investment & advisory fees and/or towards other expense
heads as stated above.
Axis Triple Advantage Fund 114
These estimates have been made in good faith as per the information available to the
Investment Manager and are subject to change inter-se or in total subject to prevailing
Regulations.
The recurring expenses of the Scheme (including the Investment Management and
Advisory Fees) shall be as per the limits prescribed under the SEBI (MF) Regulations. These
are as follows:
Assets under management Slab (In Rs. crore) Total expense ratio limits
On the first Rs. 500 crores of the daily net assets 2.25%
On the next Rs. 250 crores of the daily net assets 2.00%
On the next Rs. 1250 crores of the daily net assets 1.75%
On the next Rs. 3000 crores of the daily net assets 1.60%
On the next Rs. 5000 crores of the daily net assets 1.50%
On the next Rs. 40,000 crores of the daily net
assets
Total expense ratio reduction of 0.05%
for every increase of Rs. 5,000 crores of
daily net assets or part thereof.
On the balance of the assets 1.05%
Expenses charged to the Scheme:
A. In addition to the limits as specified in Regulation 52(6) of SEBI (MF) Regulations or the
Total Recurring Expenses (Total Expense Limit) as specified above, the following costs or
expenses may be charged to the Scheme namely-
Additional expenses for gross new inflows from specified cities
(a) expenses not exceeding of 0.30 per cent of daily net assets, if the new inflows from such
cities as specified by SEBI/AMFI from time to time are at least -
(i) 30 per cent of gross new inflows in the Scheme, or;
(ii) 15 per cent of the average assets under management (year to date) of the Scheme,
whichever is higher:
Provided that if inflows from such cities is less than the higher of sub-clause (i) or sub-
clause (ii), such expenses on daily net assets of the Scheme shall be charged on
proportionate basis.
Provided further that, expenses charged under this clause shall be utilised for distribution
expenses incurred for bringing inflows from such cities.
Provided further that, amount incurred as expense on account of inflows from such
cities shall be credited back to the Scheme in case the said inflows are redeemed
within a period of one year from the date of investment.
Provided further that, additional TER can be charged based on inflows only from retail
investors in terms of SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2018/137 dated October
22, 2018 and SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2019/42 dated March 25, 2019.
For this purpose inflows of amount upto Rs 2,00,000/- per transaction, by individual
investors shall be considered as inflows from “retail investor”.
Additional expenses under regulation 52(6A)(c)
(b) additional expenses, incurred towards different heads mentioned under Regulations
52(2) and 52(4), not exceeding 0.05 per cent of daily net assets of the Scheme;
(c) GST payable on investment and advisory service fees (‘AMC fees’) charged by Axis
Asset Management Company Ltd.
Further, brokerage and transaction costs which are incurred for the purpose of execution of
trade and is included in the cost of investment shall not exceed 0.12 per cent in case of
cash market transactions and 0.05 per cent in case of derivatives transactions.
Axis Triple Advantage Fund 115
B. Within the Total Expense Limit chargeable to the Scheme, following will be charged to
the Scheme:
(a) GST on other than investment and advisory fees, if any, (including on brokerage and
transaction costs on execution of trades) shall be borne by the Scheme
(b) Investor education and awareness initiative fees of at least 2 basis points on daily net
assets of the Scheme.
C. AMC fees charged by Axis AMC to the Scheme will be within the Total Expense Limit as
prescribed by SEBI Regulations, as amended from time to time.
Expenses over and above the prescribed limit shall be charged / borne in accordance with
the Regulations prevailing from time to time.
The mutual fund would update the current expense ratios on its website (www.axismf.com)
atleast three working days prior to the effective date of the change. Investors can refer
‘Total Expense Ratio of Mutual Fund Schemes’ section on https://www.axismf.com/total-
expense-ratio for Total Expense Ratio (TER) details.
Illustration of impact of expense ratio on scheme’s returns.
For any scheme, NAV is computed on a daily basis factoring in all the assets as well as
liabilities of the Scheme (including expenses charged). Expenses charged to the Scheme
bring down its NAV and hence the investor's net returns on a corresponding basis.
Illustration:
Particulars Amount
(in Rs.) No of units
NAV per unit
(in Rs.)
Invested on March 31, 2016 (A) 10,000 1,000 10.00
Value of above investment as on March 31, 2017 (gross
of all expenses) (B) 11,500 1,000 11.50
Total Expenses charged during the year @2% p.a.
(assumed) ( C ) 200 0.20
Value of above investment as on March 31, 2017 (net of
all expenses) (D) = (B-C) 11,300 1,000 11.30
Returns (%) (gross of all applicable expenses) (E) =
((B/A)-1) 15.0%
Returns (%) (net of all applicable expenses) (F) = ((D/A)-
1) 13.0%
Please Note:
The purpose of the above illustration is purely to explain the impact of expense ratio
charged to the Scheme and should not be construed as providing any kind of
investment advice or guarantee of returns on investments.
It is assumed that the expenses charged are evenly distributed throughout the year. The
expenses of the Direct Plan under the Scheme may vary with that of the Regular Plan
under the Scheme.
Calculations are based on assumed NAVs, and actual returns on your investment may
be more, or less.
Any tax impact has not been considered in the above example, in view of the
individual nature of the tax implications. Each investor is advised to consult his or her
own financial advisor.
C. LOAD STRUCTURE
Load is an amount which is paid by the Investor to redeem the Units from the Scheme. This
amount is used by the AMC to pay commission to the distributors and to take care of other
marketing and selling expenses. Load amounts are variable and are subject to change
from time to time. For the current applicable structure, investors may refer to the website of
the AMC (www.axismf.com) or may call at 1800 221 322 and additional contact number
8108622211 from 8.00 am to 8.00 pm (Monday to Friday) and 9.00 am to 6.00 pm (on
Saturday and Sunday) or can contact his distributor.
Axis Triple Advantage Fund 116
SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 has decided
that there shall be no entry Load for all Mutual Fund Schemes.
Type of
Load
Load chargeable (as %age of NAV)
Entry Load Not Applicable
Exit Load If redeemed/switch out within 12 months from the date of allotment:
- For 10% of investment: Nil
- For remaining investment: 1 %
If redeemed/switch out after 12 months from the date of allotment: Nil
Units issued on reinvestment of Dividends shall not be subject to Load. No load shall be
levied on switches between options of the Scheme.
No exit load will be charged for switch between Axis Triple Advantage Fund - Regular Plan
and Axis Triple Advantage Fund - Direct Plan where transaction is not routed through
Distributor in Axis Triple Advantage Fund - Regular Plan. If the transaction in Regular Plan is
routed through Distributor, then applicable exit load will be charged for switch from Regular
Plan to Direct Plan.
The above mentioned load structure shall be equally applicable to the special products
such as SIP, STP etc. offered by the AMC. Further, for switches between the Growth and
Dividend Option, no load will be charged by the scheme.
Exit load charged to the investors will be credited back to the scheme net of GST.
The Investor is requested to check the prevailing Load structure of the Scheme before
investing.
For any change in Load structure AMC will issue an addendum and display it on the
website/Investor Service Centres.
Under the Scheme, the AMC/Trustee reserves the right to change / modify the Load
structure if it so deems fit in the interest of smooth and efficient functioning of the Mutual
Fund. The AMC/Trustee reserves the right to introduce / modify the Load depending
upon the circumstances prevailing at that time subject to maximum limits as
prescribed under the Regulations.
The Redemption Price however, will not be lower than 93% of the NAV. Any imposition or
enhancement of Load in future shall be applicable on prospective investments only. The
difference between the Redemption price and Sale price at any point in time shall not
exceed the permitted limit as prescribed by SEBI from time to time which is presently 7%
calculated on the Sale Price.
At the time of changing the Load Structure:
1. An Addendum detailing the changes will be attached to Scheme Information
Document and Key Information Memorandum. The addendum may be circulated to all
the distributors / brokers so that the same can be attached to all Scheme Information
Document and Key Information Memorandum already in stock.
2. The addendum will be displayed on the website of the AMC and arrangements will be
made to display the addendum in the form of a notice in all the Investor Service
Centres and distributors / brokers’ office.
3. The introduction of the Exit Load/ CDSC along with the details may be stamped in the
acknowledgement slip issued to the Investors on submission of the application form and
may also be disclosed in the statement of accounts issued after the introduction of such
Load/CDSC.
4. A public notice shall be given in respect of such changes in one English daily
newspaper having nationwide circulation as well as in a newspaper published in the
language of region where the Head Office of the Mutual Fund is situated.
5. Any other measure which the Mutual Fund may consider necessary.
Axis Triple Advantage Fund 117
The Trustee/AMC reserves the right to change the load structure subject to the limits
prescribed under the Regulations. Any change in load structure shall be only on a
prospective basis i.e. any such changes would be chargeable only for Redemptions from
prospective purchases (applying first in first out basis).
Transaction Charges
In terms of SEBI circular no. CIR/IMD/DF/13/2011 dated August 22, 2011, as amended from
time to time, Transaction Charge per subscription of Rs. 10,000/– and above shall be
charged from the investors and shall be payable to the distributors/ brokers (who have
opted in for charging the transaction charge) in respect of applications routed through
distributor/ broker relating to Purchases / subscription / new inflows only (lump sum and SIP),
subject to the following:
For Existing / New investors: Rs.100 / Rs.150 as applicable per subscription of Rs. 10,000/–
and above
Transaction charge for SIP shall be applicable only if the total commitment through SIP
amounts to Rs. 10,000/– and above. In such cases the transaction charge would be
recovered in maximum 4 successful installments.
There shall be no transaction charge on subscription below Rs. 10,000/-.
There shall be no transaction charges on direct investments.
The requirement of minimum application amount shall not be applicable if the investment
amount falls below the minimum amount required due to deduction of transaction charges
from the subscription amount.
The Transaction Charge as mentioned above shall be deducted by the AMC from the
subscription amount of the Unit Holder and paid to the distributor and the balance shall be
invested in the Scheme. The statement of account shall clearly state that the net
investment as gross subscription less transaction charge and give the number of units
allotted against the net investment.’
D. WAIVER OF LOAD FOR DIRECT APPLICATIONS
Not applicable
Axis Triple Advantage Fund 119
VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR
INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF
BEING TAKEN BY ANY REGULATORY AUTHORITY
This section shall contain the details of penalties, pending litigation, and action taken by
SEBI and other regulatory and Govt. Agencies.
1. All disclosures regarding penalties and action(s) taken against foreign Sponsor(s) may
be limited to the jurisdiction of the country where the principal activities (in terms of
income / revenue) of the Sponsor(s) are carried out or where the headquarters of the
Sponsor(s) is situated. Further, only top 10 monetary penalties during the last three years
shall be disclosed.
Not Applicable
2. In case of Indian Sponsor(s), details of all monetary penalties imposed and/ or action
taken during the last three years or pending with any financial regulatory body or
governmental authority, against Sponsor(s) and/ or the AMC and/ or the Board of
Trustees /Trustee Company; for irregularities or for violations in the financial services
sector, or for defaults with respect to share holders or debenture holders and depositors,
or for economic offences, or for violation of securities law. Details of settlement, if any,
arrived at with the aforesaid authorities during the last three years shall also be
disclosed.
a. A show-cause notice was issued to Axis Bank by RBI dated November 16, 2017
following a statutory inspection which revealed violations of various regulations
of the RBI in relation to assessment of NPAs. After considering the response and
oral submissions of Axis Bank, the RBI found that the charges of non-compliance
were substantiated and imposed a monetary penalty of INR 3,00,00,000 (Rupees
Three Crores Only) on March 5, 2018.
b. The RBI had issued Show Cause Notice vide its letter dated 27.7.2018 with
respect to dispensation of two Children Bank Play Notes of Rs.500 each
dispensed to two customers from ATM at Kidwai nagar branch, Kanpur in non-
compliance to its Master Circular on Detection and Impounding of Counterfeit
Notes dated July 20, 2017 and, the Circular on Sorting of Notes – Installation of
Note Sorting Machines dated November 19, 2009 and the Bank submitted the
response on 16.8.2018. The RBI vide its letter dated 30.1.2019 imposed a penalty
of Rs.20 lakhs and the Bank paid the same on 5.2.2019.
c. The RBI had issued Show Cause Notice vide its letter dated 29.8.2018 for
wrongfully collecting 105 DDs, each for the amount exceeding Rs.50,000,
aggregating Rs.5.56 crores in the account of Satkar Co-operative Credit Society
Ltd. in non-compliance to its Master Circular on ‘Collection of Account Payee
Cheques - Prohibition on Crediting Proceeds to Third Party Account’ dated
January 22, 2014 and for the delay in reporting of above fraud in non-
compliance to Master Directions on ‘Frauds - Classification and Reporting by
commercial banks and select FIs’ dated July 1, 2016. The Bank submitted the
response on 17.9.2018. The RBI vide its letter dated 30.1.2019 imposed a penalty
of Rs.2 Crore and the Bank has paid the same on 16.2.2019.
d. The RBI had issued Show cause notice vide its letter dated 23.8.2018 with respect
to non-compliance to guidelines issued dated 20.2.2018 on ‘Time-bound
implementation & Strengthening of SWIFT related operational controls and the
Bank submitted the response on 5.9.2018. The RBI vide its letter dated 25.2.2019
cautioned the Bank stating that any deficiency in this regard will attract penal
action in future.
3. Details of all enforcement actions taken by SEBI in the last three years and/ or pending
with SEBI for the violation of SEBI Act, 1992 and Rules and Regulations framed there
under including debarment and/ or suspension and/ or cancellation and/ or imposition
of monetary penalty/adjudication/enquiry proceedings, if any, to which the Sponsor(s)
and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the
directors and/ or key personnel (especially the fund managers) of the AMC and Trustee
Company were/ are a party. The details of the violation shall also be disclosed.
Nil
Axis Triple Advantage Fund 120
4. Any pending material civil or criminal litigation incidental to the business of the Mutual
Fund to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee
Company and/ or any of the directors and/ or key personnel are a party should also be
disclosed separately.
Nil
5. Any deficiency in the systems and operations of the Sponsor(s) and/ or the AMC and/
or the Board of Trustees/Trustee Company which SEBI has specifically advised to be
disclosed in the SID, or which has been notified by any other regulatory agency, shall be
disclosed.
Nil
The Scheme under this Scheme Information Document was approved by the Trustee
Company on January 29, 2010. The Trustee has ensured that the Scheme is a new product
offered by Axis Mutual Fund and is not a minor modification of its existing schemes.
Notwithstanding anything contained in this Scheme Information Document, the provisions of
the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be
applicable.
for and on behalf of
Axis Asset Management Company Ltd.
(Investment Manager to Axis Mutual Fund)
Sd/-
Chandresh Kumar Nigam
Managing Director &
Chief Executive Officer
Date: November 29, 2019
Axis Triple Advantage Fund 121
OFFICIAL POINTS OF ACCEPTANCE FOR ONGOING TRANSACTION
AXIS AMC OFFICE ADDRESSES
AHMEDABAD Axis Asset Management Company Limited ,Mithakali Law Garden Road,
Ellisbridge, 3rd Floor, 302, Megha House, Opp. Kotak Bank,Ahmedabad - 380 006.. AGRA:
Axis Asset Management Company Limited ,Shop No. G-7, Ground Floor, Block-19/4, Sanjay
Place, Agra - 282 002. BANGALORE Axis Asset Management Co.Ltd. Ground Floor, G-03 &
G-03A, Prestige Meridian-1, No. 29, M.G. Road, Bangalore - 560 001 BHOPAL Axis Asset
Management Co FM-8 Mansarovar Complex , Khasra No. 27/1/2 , NH-12 , Bhopal , MP.
BHUBANESHWAR Axis Asset Management Co Unit no.3 (Part) Ground Floor Nandighosh
Arena Plot no. 1 Bapuji Nagar Bhubaneshwar Odisha. BORIVALI Axis Asset Management Co.
Ltd, Office No. 201, 2 Floor, REIS Magos, Ramdas Sutrale Marg, Off. Chandavarkar Road,
Borivali (West), Mumbai, Maharashtra - 400092. CHANDIGARH Axis Asset Management
Co.Ltd. 2nd Floor, SCO No 2471, Sector 22C, Chandigarh - 160022. CHENNAI Axis Asset
Management Co. Ltd. 1st Floor , Door no. 168 Anna Salai , Opp. To Spencer Plaza , Chennai
, Tamil Nadu - 600 002., COIMBATORE Axis Asset Management Company Limited, 1st Floor,
Shylaja Complex, 575 DB Road, R. S. Puram, Near Head Post Office, Coimbatore - 641 002.
DEHRADUN Axis Asset Management Co. Ltd., 59/3 First Floor, Rajpur Road, Above IDBI Bank,
Dehradun – 248001. FORT Axis Asset Management Company Limited , 112, 1st Floor, Yusuf
Building, Plot No. 49, Veer Nariman Road, Hutatma Chowk, Fort, Mumbai - 400 001.
GUWAHATI Axis Asset Management Co. ltd 2C 2nd Floor, “Dihang Arcade”, ABC, G.S. Road
Opp Dona Planet Guwahati 781005. HYDERABAD Axis Asset Management Company Ltd,
2nd Floor, Nerella House, Panjagutta, Hyderabad - 500 082. INDORE Axis Asset Management
Co. ltd office No. 211 2nd Floor Megapolis Square Block A 579, M.G Road .opp Treasure
Island Mall Indore 452001 M.P JAIPUR Axis Asset Management Company Ltd, 305, 3rd Floor,
Ganpati Plaza, M. I. Road, Jaipur-302001.Rajasthan. JALANDHAR Axis Asset Management
Co. Ltd , SCO 5-6, 1st Floor, Puda Complex, Opp Suvidha Center, Ladowali Road, Jalandhar
- 144 001 KANPUR Axis Asset Management August Company Limited, 305-306, 3rd Floor, Civil
Lines, Kan Chamber, Kanpur – 208001. KOCHI Axis Asset Management Company
Limited,Door No.40/9336 ,2nd Floor ,Chackos Towers ,Padma Pullepady Road ,Kochi 682
035 Kerala. KOLKATA Axis Asset Management Company Ltd, Ground Floor, Kanak
Building,41, Chowringhee Road Kolkata - 700071. LUCKNOW Axis Asset Management Co.
Ltd, Unit No 5, 6 & 7, Halwasiya's Commerce House, 2nd Floor, Habibullah Estate, 11,
M.G.Marg, Hazratganj, Lucknow - 226001. LUDHIANA Axis Asset Management Co. Ltd. SCO -
28, First Floor, Feroz Gandhi Market, Ludhiana - 141001. MUMBAI Axis Asset Management
Company Limited Axis House, First Floor, C-2, Wadia International Centre, Pandurang
Budhkar Marg, Worli, Mumbai - 400025. MUMBAI (Indiabulls) Axis Asset Management
Company Ltd. Unit No. 902, 9th Floor, Indiabulls Finance Center, Tower 2, Senapati Bapat
Marg, Mumbai - 400013. NAGPUR Axis Asset Management Company Ltd. 1st Floor, "The
Edge", 12, Shankar Nagar, WHC Road, Nagpur-440010 NASIK Axis Asset Management
Company Limited Shop No. G-7,GroundFloor, Rajvee Enclave, Old Pandit Colony, Nasik -
422 001, Maharashtra. NEW DELHI Axis Asset Management Company Ltd. 702-705, 7th Floor,
Narain Manzil, Barakhamba Road, Connaught Place, New Delhi - 110001. PANAJI Axis Asset
Management Company Limited Ground Floor, Shop No. G-7, Edcon Towers, Menezes
Braganza Road, Panjim, Goa - 403001. PUNE Axis Asset Management Company Ltd. Unit
No. 102 & 102-A/B, 1st Floor, Signature Building, Bhandarkar Road, CTS No. 853, Plot No. 195,
Bhamburda, Shivajinagar, Pune - 411005.PATNA Axis Asset Management Company Ltd. D -
309/ 310, 3 Floor, Dumroan Palace, Frazer Road, Patna 800 001. RAIPUR Axis Asset
Management Company Ltd ,Office No. T -10, 3rd Floor, Raheja Towers, Fafadih , Chowk Jail
Road, Raipur, Chhattisgarh - 492001. RAJKOT Axis Asset Management Co. ltd 206, Metro
Plaza Jansata Chowk Near Eagle Travels Moti Tanki Chowk , Rajkot - 360001. SURAT Axis
Asset Management Company Limited,HG-2A, International Trade Centre(ITC), Majura Gate
Crossing, Ring Road ,Surat Gujarat, India. Thane Axis Asset Management Company Ltd,
Manjula Arcade, 2nd Floor, Gokhale Road, Naupada, Thane (West) - 400 602. Vadodara
Axis Asset Management Company Limited 3rd Floor, 306, Emerald Complex, Race Course,
Near Bird Circle, Old Padra Road, Vadodara - 390 007.Amritsar Axis Asset Management Co.
Ltd SCO-25, First floor, District shopping Centre, B-Block, Ranjit Avenue, Amritsar – 143001.
Varanasi Axis Asset Management Company Ltd. 7th Floor, Arihant Complex, D-64/127 C-H,
Sigra, Varanasi, Uttar Pradesh - 221010. Visakhapatnam Axis Asset Management Company
Limited, S3, 3rd Floor, Navaratna Jewel Square, Beside Jyothi, Book Depot, Dwarakanagar,
Visakhapatnam - 530 016.
Axis Triple Advantage Fund 122
KARVY FINTECH PRIVATE LIMITED INVESTOR SERVICE CENTERS
Adyar Karvy Fintech Private Limited,New No 51, Gandhi Nagar,First Main Road, Adyar
Chennai-600 020 Agartala, Jagannath Bari Road Bidur Karta Chowmuhani Agartala –
799001 • Agra Deepak Wasan Plaza, Behind Holiday Inn, Opp Megdoot Furnitures, Sanjay
Place, Agra -282002 (U.P) • Ahmedabad, 201,Shail Building, Opp : Madhusudhan House Nr.
Navrangpura Telephone Exchange; Navrangpura Ahmedabad - 380 006 Ajmer, 1-2, II Floor
Ajmer Tower, Kutchary Road Ajmer - 305 001. Akola Shop No-30, Ground Floor, Yamuna
Tarang Complex, N H No 06, Murtizapur Road, Akola 444004 • Alambagh KSM Tower,CP-1
Sinder Dump, Near Alambagh Bus Station, Alambagh, Lucknow 226 005• Aligarh 1st Floor,
Kumar Plaza, Aligarh 202001 Uttar Pradesh • Allahabad RSA Towers, 2nd Floor, Above Sony
TV Showroom, 57, S P Marg, Civil Lines, Allahabad 211001• Alleppey 3rd Floor, J.P.Tower,
17/1424(184), VCSB Road, Zilla Court Bridge Road, Mullackal, Alleppey – 688011, Kerala •
Alwar 101, 1st Floor, Saurabh Towers, Opp. UTI, Road No # 2 Bhagat Singh Circle Alwar-
301001. • Aliganj Hig-67, Sector E, Aliganj, Lucknow 226 024 • Amaravathi Shop No. 21, 2nd
Floor, Gulshan Tower Near Panchsheel Talkies ,Jaistambh Square, Amravati(M.H.) Pincode
444601 Ambala 6349, Nicholson Road, Adjacent Kos Hospital, AmbalaCantt, Ambala
133001 Amritsar 72-A, Taylor'S Road Aga Heritage Gandhi Ground Amritsar - 143 001 Anand
201 Sai Apartment , Behind New Bus Stand Anand Pin code 388001 • Andheri 6 & 7, Andheri
Industrial Estate, Veera Desai Road, Andheri (West), Mumbai 400 053 • Ananthapur # 15-
149, 1st Floor, S R Towers, Opp. Lalithakala Parishat Subash Road, Anantapur 515001 •
Ankleshwar L/2, Keval Shopping Center Old National Highway Ankleshwar 393002 •
Asansol 114/N, G.T. Road, Bhanga Panchil, Near Nokia Care,Asansol - 713303 •
Aurangabad Ramkunj, Railway Station Road Near Osmanpura Circle Aurangabad-431005
•Azamgarh 1st Floor Alkal Building, Opp. Nagaripalika Civil LIne, Azamgarh-276 001 Below
Central Bank of India, SadawartiChowk, Azamgarh 276001 • Balasore M S Das Street,
Gopalgaon, Balasore 756001 • Bangalore 59,Skanda Puttanna Road , Basavanagudi,
Bangalore- 560004 • Bankura Karvy Fintech Pvt Ltd. Plot nos- 80/1/A, NATUNCHATI
MAHALLA, 3rd floor, Ward no-24, Opposite P.C Chandra, Bankura town, Bankura 722101 •
Bareilly 1st Floor, 165, Civil Lines, Opposite Hotel Bareilly Palace, Near RlyStation Road,
Bareilly 243001 • Barhampore (WB) Thakur Market Complex, 72, Naya Sarak
Road,Gorabazar, PO. Berhampore DIST. Murshidabad Barhampore -742101 • Baroda 203
Corner Point , Jetalpur Road, Baroda Gujarat 390 007 • Begusarai Hotel Diamond Surbhi
Complex, Near I.O.C Township Gate, Kapasiya Chowk, Begusarai 851117 • Belgaum CTS No
3939/ A2 A1, Above Raymonds Show Room Club Road, Belgaum – 590001.• Bellary No 1
KHB Colony, Gandhinagar, Bellary 583101 • Behrampur Opp –Divya Nandan Kalyan
Mandap 3rd Labe Dharam Nagar Near Lohiya Motor, Berhampur, Orissa 760001• Betul107,
Hotel Utkarsh, Awasthi Complex, J H College Road, Civil Lines, Beetul 460001 • Bhagalpur
2nd Floor, Chandralok Complex, Ghantaghar, Radha Rani Sinha Road, Bhagalpur 812001 •
Bharuch 147-148, Aditya Complex Near Kasak Circle Bharuch - 392 002 • Bhatinda # 2047-
A, 2nd Floor, Above Max New York Life Insurance The Mall Road Bhatinda 151001 •
Bhavnagar Karvy Fintech Private Limited ,303, Sterling Point, Waghawadi Road, Bhavnagar
– 364001 • Bhilai Shop No-1,First Floor Plot NO-1, Old Sada Office Block Commercial
Complex, Near HDFC Atm, Nehru Nagar- East Post – BHILAI Pin – 490020 • Bhilwara 27-28, 1st
Floor, HiraPanna Complex, Pur Road, Bhilwara 311001 • Bhopal Kay KayBusniss Centre, 133
Zone, I M P Nagar, Bhopal 462021 • Bhubaneswar 2nd & 3rd Floor, Janardan House, A 181,
Saheed Nagar, Bhubaneswar - 751 007, Odisha • Bikaner 2nd Floor, Plot No 70 & 71,
Panchshati Circle, SardulGunj Scheme, Bikaner 334003 • BilaspurShop No 201/202, V RPlaza,
Link Road, Bilaspur 495001 • Bokaro B-1, 1st Floor, Near Sona Chandi Jewellers, City Centre,
Sector 4, Bokaro Steel, City 827004 (Jharkhand). • Borivali Ground Floor Himanshu Bldg.
Sodawala Lane, Lina Chandawarkar Road, Borivali, Mumbai - 400 091. • Burdwan Karvy
Fintech Private Ltd., Anima Bhavan, 1 Floor, Holding No. 42, Sreepally, G. T. Road, Burdwan,
West Bengal - 713103. • Calicut First Floor, Savithri Building, Opposite Fathima Hospital, Bank
Road, Calicut - 673001, Kerala • Chandigarh Sco 2423-2424 Sector 22-C Chandigarh Pin
code 160022 • Chandrapur Shop No 5, Office No 2, 1st Floor, Routs Raghuvanshi Complex,
Beside Azad Garden, Main Road, Chandrapur 442402 • Chembur Shop No. 4, Ground Floor,
Shram Saflya Bldg, N G Acharya Marg, Chembur, Mumbai 400 071 • Chennai (Egmore) Flat
No F11,First Floor, Akshya Plaza,(Erstwhile Harris Road), Opp Chief City Metropolitan Court, #
108, AdhithanarSalai, Egmore, Chennai 600002 • Chennai (T Nagar) G1, Ground Floor No
22, Vijayaraghava Road, Swathi Court, T Nagar, Chennai - 600 017.• Chinsura JC Ghosh
Sarani Near Bus Stand Chinsura 712101 • Cochin Building Nos.39 Ali Arcade ,1st floor, Near
Atlantis Junction, Kizhvana Road, Panampili Nagar, Cochin-682 036 Ernakulum District
Coimbatore 3rd Floor 1056/1057, Jaya Enclave, Avanashi Road, Coimbatore - 641018. •
Axis Triple Advantage Fund 123
Cuttack Dargha Bazar, OppDargha Bazar Police Station, Buxibazar, Cuttack 753001 •
Darbhanga Jaya Complex 2nd Floor, above furniture planet, Donar chowk Darbanga-846
003 • Dalhousie 2Nd Floor, Room no-226 R N Mukherjee Road, Kolkata 700 001 • Davangere
# 15/9, Sobagu Complex, 1st Floor, 2nd Main Road, P J Extension, Davangere 577002
•Dehradun Kaulagarh Road, Near Sirmaur Marg, Above Reliance Webworld, Dehradun
248001 • Deoria 1St Floor, Shanti Niketan Opp. Zila Panchayat, Civil Lines Deoria- 274001 •
Dewas 27 Rmo House, Station Road, Dewas 455001• Dhanbad 208, New Market, 2nd
Floor,Katras Road, Bank More, Dhanbad 826001 • Dharwad G7 & 8, Sri Banashankari
Avenue Ramnagar, OppNttfpb Road Dharward 580001 • Dhule Ground Floor Ideal
Laundry, Lane No 4 , Khol Galli, Near Muthoot Finance , Opp Bhavasar General Store, Dhule
– 424001• Dindigul No 9, Old No 4/B, New Agraharam, Palani Road, Dindigul 624001 •
Durgapur MWAV – 16 Bengal Ambuja 2nd Floor, City Centre Durgapur 713216 • Eluru- Karvy
Fintech Private Limited., Dno-23a-7-72/73 ,K K S Plaza, Munukutla Vari Street, Opp Andhra
Hospitals,R R Peta, Eluru – 534002,West Godavari Dist.,Andhra Pradesh• Erode No 4,KMY
Salai, Veerappan Traders Complex, Opp Erode Bus Stand,Sathy Road, Erode 638003 •
Faridabad A-2B, 1st Floor, Nehru Ground, Neelam Bata Road, Nit, Faridabad 121001 •
Ferozpur2nd Floor, Malwal Road, Opp H M School, Ferozpur City 152002• Gandhidham
Office No. 203, Second Floor Bhagwati Chamber, Plot No. 8 Sector - 1/A, Kutch Kala Road,
Gandhidham - 370 201 • Gandhinagar Plot No. - 945/2, Sector - 7/C, Gandhinagar - 382 007
• Gaya 54 Lal Kothi Compound, Near Royal , Surya Hotel,Shree Krishna Road, 2 Floor - North
side, Gaya - 823 001 • Ghaziabad 1st Floor, C-7, Lohia Nagar, Ghaziabad 201001 •
Ghazipur Shubhra Hotel Complex, 2nd Floor, Mahaubagh, Ghazipur 233001 • Gonda Shree
Markit Sahabgunj ,Near Nuramal Station Raod Gonda 271001 • Gorakhpur Above V I P
House Ajdacent A D Girls Inter College, Bank Road, Gorakpur 273001 • Gomti Nagar B-1/2,
Vijay Khand, Near Union Bank of India, Gomti Nagar, Lucknow 226 010 • Gulbarga CTS No.
2913, First Floor,Asian Tower Next To Hotel Aditya,Jagat Station Main Road Gulbarga
585105• Guntur D. No 6-10-27 10/1 Sri Nilayam ,Arundelpet Guntur 522 002 • Gurgaon Shop
No 18, Ground Floor, Sector 14, Opp AKD Tower, Near Huda Office, Gurgaon 122001 •
Guwahati 54 Sagarika Bhawan R G Baruah Road, (AIDC Bus Stop) Guwahati 781024 •
Gwalior 2nd Floor Rajeev Plaza Jayendra Ganj, Lashkar Gwalior 474009. • Haldwani Above
Kapilaz Sweet House Opp LIC Building Pilikothi Haldwani 263139 Uttarakhand • Haridwar 7,
Govindpuri, Opposite 1-india Mart, Above Raj Electricals, Ranipur More, Haridwar–249401 •
Hassan SAS No. 212, Ground Floor, Sampige Road, 1st Cross Near Hotel Southern Star, K. R.
Puram, Hassan - 573 201 • Hissar Sco 71, 1st Floor, Red Square Market, Hissar 125001 •
Hoshiarpur 1st Floor, The Mall Tower, Opp Kapila Hospital, Sutheri Road, Near Maharaj
Palace, Hoshiarpur 146001 • Hubli 22 & 23 , 3rd Floor Eurecka Junction, T B Road Hubli –
580029 • Hyderabad 8-2-596 Karvy Plaza,Avenue 4, Street No 1, Banjara Hills, Hyderabad
500034 • Indore 2nd Floor , 203-205 Balaji Corporates Above ICICI bank, 19/1 New Palasia
Indore – 452001 •Jabalpur 43, Naya Bazar, Opposite Shyam Talkies, Jabalpur (MP) 482001 •
Jaipur S-16 A, 3rd Floor, Land Mark, Opposite Jaipur Club, Mahavir Marg, C- Scheme, Jaipur
302001 • Jalandhar Lower Ground Floor, Office No 3, Arora Prime Tower, Plot No 28, G T
Road, Jalandhar 144004 • Jalgaon 269, Jaee Plaza, 1 st Floor | Baliram Peth| Above
United bank of India| Near kishor Agencies , Jalgaon - 425001 • Jalpaiguri D B C Raod,
Near Rupasree Cinema Hall, Beside Kalamandir, PO & Dist Jalapiguri 735101 • Jammu 5 A/D
Second Extension, opposite Panama Chowk Petrol Pump Gandhi Nagar Jammu 180 012.
Jamnagar 108 Madhav Plaza, Opp SBI Bank, Near Lal Bangalow, Jamnagar 361001 •
Jamshedpur 2nd Floor, R R Square SB Shop Area, near Reliance Foot Print & Hotel-
BS Park Plaza Main Road, Bistupur Jamshedpur—831001 • Jaunpur 119,R N Complex, 2nd
Floor, Near Jay Ceej Crossing, Ummarpur Jaunpur-222 002 • Jhansi 371/01, Narayan Plaza,
Gwalior Road, Near Jeevan Shah Chauraha, Jhansi 284001 • Jodhpur 203, Modi Arcade,
Chupasni Road, Jodhpur 342001 • Junagadh 124/125, Punit Shopping Center, Ranavat
Chowk, Junagadh Gujarat 362001 • Kannur 2nd Floor, Prabhat Complex, Fort Road, Kannur
670001 • Kanpur 15/46, Opp Muir Mills, Civil Lines, Kanpur 208001 • Karaikudi No. 2,Gopi
Arcade 100 Feet Road, Karaikudi 630001 • Karaikudi Gopi Arcade, 100 Feet Road,
Karaikudi 630001 • Karimnagar SRI PROJECTS,Door no 2-10-1298, 2nd Floor,Rathnam
Arcade, Jyothi Nagar,KARIMNAGAR-505001 • Karnal 18/369,Char Chaman Kunjpura road
Karnal-132001 • Karur No 6, Old No 1304 Thiru-Vi-Ka Road, Near G R Kalyan Mahal Karur
639001 • Kharagpur Malancha Road, Beside UTI Bank,Kharagpur 721304 • Kolhapur 605/1/4
E Ward, Near Sultane Chambers, Shahupuri 2nd Lane Kolhapur 416001• Kolkata Apeejay
House ( Beside Park Hotel ) 15 Park Street, C Block,3rd Floor Kolkata-700016 , West Bengal •
Kollam Ground Floor, Vigneshwara Bhavan, Below Reliance Web World, Kadapakkada
Kollam 691008 • Kolkata 1 R N Mukerjee Road, 2nd Floor Room No.- 226, Kolkata - 700 001. •
Axis Triple Advantage Fund 124
Kota H No 29, First Floor, Near Lala Lajpat Rai Circle Shopping Centre, Kota, Rajasthan
324007 • Kottayam 1st Floor, CSIAscension Church Complex, Kottayam 686001 • Korba 1st
Floor, 35 Indira Complex, T P Nagar, Korba (CG) 495677 • Koramangala No.408, Ist Floor,
CITA Bldg, Next to Vodafone Office, Koramangala, Bangalore 560 095 • Kurnool Shop No
43, 1st Floor S V Complex, Railway Station Road, Kurnool 518004 • Lucknow 1st Floor, A. A.
Complex, Thaper House, 5 Park Road, Hazratganj, Lucknow – 226 001 • Ludhiana SCO - 136,
First Floor, Above Airtel Show Room, Feroze Gandhi Market, Ludhiana – 141 001. • Malda
Sahistuli Under Ward No-6, English Bazar, Municipality, No-1 Govt Colony, Malda 732101 •
Malleshwaram No.337, GF-3, Karuna Complex, Sampige Road, Opp. New Vegetable
Market, Malleshwaram, Bangalore 560003• Madurai Rakesh Towers, 30-C, Bye Pass Road,
1st Floor, Opp Nagappa Motors, Madurai 625010 • Mangalore Ground Floor, Mahendra
Arcade, Kodial Bail, Mangalore 575003 • Margao 2nd Floor,Dalal Commercial Complex,
Opp Hari Mandir, Pajifond, Margao-Goa 403601 • Mathura AMBEY Crown, IInd Floor In Front
Of BSA College Gaushala Road Mathura – 281001 • Meerut 1st Floor, Medi Centre
Complex, Opp ICICI Bank, Hapur Road, Meerut 250002 • Mehsana Ul-47, Appolo Enclave,
Opp Simandhar Temple, Modhera Char Rasta Highway, Mehsana 384002 • Mirzapur Girja
Sadan,Dankin Gunj Mirzapur 231001 • Moga Near Dharamshala Brat Ghar, Civil Line, Dutt
Road, Moga 142001 • Moradabad Om Arcade, Parker Road, Above Syndicate Bank,
TariKhana Chowk,Moradabad 244001 • Morena Moti Palace, Near Ramjan ki Mandir, Jiwaji
Ganj, Morena 476001 • Mumbai - Office number : 01/04, 24/B, Raja Bahadur Compound,
Ambalal Doshi Marg, Behind Bombay Stock Exchange, Fort Mumbai – 400001 • Muzaffarpur
First Floor, Shukla Complex, Near ICICI Bank, Civil Court Branch, Company Bagh,
Muzaffarpur,Bihar – 842001 • Mysore L-350, Silver Tower, Clock Tower, Ashoka Road, Mysore
570001 • Nadiad 105 GF City Point, Near Paras Cinema, Nadiad 387001 • Nanganallur
Karvy Fintech Private Limited, No.: 155/7, Ullagaram, Medavakkam Main Road , (Opp. to
IDBI ATM) , Madipakkam, Chennai - 600 091. • Nagarcoil 45, East Car Street, 1st Floor,
Nagercoil - 629 001• Nagpur Plot No.2/1, House No. 102/1, Mangaldeep Apartment,
Mata Mandir Road, Opp. Khandelwal Jewellers, Dharampeth, Nagpur - 440 010 •
Namakkal 105/2, Arun Towers, Paramathi Street, Namakkal 637 001 • Nanded Shop No 4,
First Floor, Opp Bank of India, Santkrupa Market, Gurudwara Road, Nanded 431602 • Nasik
S-12, Second Floor, Suyojit Sankul, Sharanpur Road, Nasik 422002 • Navsari 103, 1st floor
Landmark Mall,Near Sayaji Library, Navsari,Gujarat - 396445• New Delhi 305, 3rd Floor New
Delhi House, Bara Khamba Road Connaught Place New Delhi-110 001• Nellore 16-2-158,
3rd Floor, Mogarala Complex, Sunday Market Lane, Pogathota,Nellore - 524001, Andhra
Pradesh.• Nizamabad H No: 5-6-430, First Floor, Above Bank of Baroda, Beside HDFC Bank ,
Ginza View, Hyderabad Road, Nizamabad-503003. • Noida 405 4th Floor , Vishal Chamber ,
Plot no. 1, Sector 18 Noida 201301 • Palghat 12/310, (No.20 & 21), Metro Complex, Head
Post Office Road, Sultanpet, Palghat 678001 • Panipat Java Complex , 1st Floor , above
Vijaya Bank , G. T Road , Panipat-132103 Haryana. • Panjim Karvy Fintech Private Limited
Flat No.1-A, H. No. 13/70 Timotio Bldg Heliodoro Salgado Road, Next to Navhind Bhavan
(Market Area) Panaji Goa – 403001 • Patiala Sco 27 D,Chhoti Baradari Patiala 147001 •
Patna 3A, 3rd Floor, Anand Tower, Beside Chankya Cinema Hall, Exhibition Road, Patna
800001 • Pathankot 2nd Floor, Sahni Arcade Complex, Adj. Indra Colony Gate Railway
Road, City Pathankot- 145001 • Pollachi S S Complex, New Scheme Road, Pollachi 642002 •
Pondicherry First Floor No.7, Thiayagaraja Street Pondicherry 605001 • Pudukottai Sundaram
Masilamani Towers, TS No 5476-5479, PM Road, Old Tirumayam Salai, Near Anna Statue,
Jublie Arts, Pudukottai 622001 •Pune Office # Mozaioc Building 3rd Floor CTS No:1216/1FC
Road, Opposite- FC Collage Main Gate Above Allahabad Bank, Shivaji Nagar ,Pune -
411004 • Raipur Office No. S-13, Second Floor,Raheja Tower, Fafadih Chowk, Jail Road,
Raipur - 492 001.• Rajahmundry Dr No 61-4, First Floor, Rangachary Street, T Nagar,
Rajahmundry 533101 • Rajapalayam Sri Ganpathy Complex 14B/5/18, T P Mills Road
Rajapalayam 626117 •Rajkot 302, Metro Plaza, Near Moti Tanki Chowk , Rajkot, Gujarat -
360 001 •Ranchi Room No. 307, 3 rd Floor, Commerce Towers, Beside Mahabir Towers
Main Road Ranchi - 834 001• Ratlam 1 Nagpal Bhavan, Freeganj Road, Tobatti, Ratlam
457001 • Renukoot Shop No 18, Near Complex Birla Market, Renukoot 231217 • Rewa 1st
Floor, Angoori Building, Besides Allahabad Bank,Trans University Road, Civil Lines, Rewa
485001 • Rohtak 1st Floor, Ashoka Plaza, Delhi Road, Rohtak 124001 • Roorkee Shree
Ashadeep Complex, 16 Civil Lines, Near Income Tax Office, Roorkee, Uttaranchal 247667 •
Rourkela 1st Floor, Sandhu Complex, Kanchery Road, Udit Nagar, Rourkela 769012 • Sagar
1st floor satyam complex,infront of cantt shopping mall5 civil lines Sagar (MP)470002. •
Saharanpur 18 Mission Market, Court Road, Saharanpur 247001 Uttar Pradesh • Salem No.
3/250 "F" Brindavan Road, 6th Cross , Perumal Kovil Back side, Fair Land's Salem - 636016,
Axis Triple Advantage Fund 125
Tamil Nadu. • Sambalpur Karvy Fintech Private Limited Koshal Builder Complex, Near Goal
Bazaar Petrol Pump, Sambalpur - 768 001. • Satna 1St Floor, Gopal Complex, Near Busstand
Rewa Road Satna (M.P) -485 001 • Secunderabad C/o. Karvy Fin. Ser. Ltd. 1st Floor,
Thirumala, Complex Paradise Circle, S.D. Road, Opp. Hotel Kamat, Secunderabad - 500 003
• Shaktinagar 1st/A-375, V V Colony Dist Sonebhadra Shaktinagar 231222 • Shivpuri 1st
Floor, M P R P Building, Near Bank of India, Shivpuri 473551 • Shillong Mani Bhawan, Thana
Road, Lower Police Bazar, Shillong 739001 • Shimla Triveni Building, By Pas Chowk, Khallini,
Shimla 171002 • Shimoga Uday Ravi Complex, LLR Road, Durgi Gudi, Shimoga 577201 •
Sikar 1st Floor, Super Towers Behind Ram Mandir, Station Road, Sikar 332001 • Silchar 1st
Floor, Chowchakra Complex, N N Dutta Road, Premtala Silchar 788001 • Siliguri Nanak
Complex, Near Church Road, Sevoke Road, Siliguri 734001 • Sitapur 12/12-A Surya
Complex, Arya Nagar, Opp Mal Godam, Sitapur 261001 • Sivakasi 363, Thiruthangal Road,
Opp TNEB,Sivakasi 626 123 • Solan Sahni Bhawan, Adjacent Anand Cinema Complex, The
Mall Solan 173212, • Solapur Siddeshwar Secrurities, No 6, Vaman Road, Vijaypur Road,
Vaman Nagar,Solapur 413004 • Surat Office No: 516, 5th Floor, Empire State Building, Near
Parag House, UdhnaDarwaja, Ring Road, Surat 395002 • Sonepat 205 R Model Town, Above
Central Bank of India, Sonepat • Sri Ganganagar 35-E-Block, Opp Sheetla Mata Vatika, Sri
Ganga Nagar 335001 • Srikakulam 4-1-28/1, Venkateshwara Colony Day & Night Junction,
Srikakulam 532001 • Sultanpur Rama Shankar Complex, Civil Lines, Faizabad Road,
Sultanpur 228001 • Thanjavur Nalliah Complex, No 70, Srinivasam Pillai Road, Thanjavur
613001 • Thane 101, Yashwant Building, Ram Ganesh Godkari Path, Ram Maruti Road,
Naupada, Thane - 400 602. • T Nagar G1, Ground Floor, No 22, Vijayaraghava Road Swathi
Court, T Nagar Chennai 600 017• Thodupuzha First Floor, Pulimoottil Pioneer Pala Road,
Thodupuzha 685584 • Tirunelveli Jeney Building, 55/18, S N Road, Near Arvind Eye Hospital,
Tirunelveli 627001•Tirupur First Floor, 224 A, S Selvakumar Departmental Stores, 1st Floor,
Kamaraj Road,Opp To Cotton Market Complex, Tirupur 641604 • Tirupathi H.No:12-3-330
2nd Floor , Tilak Road Near Four Piller Mandapam Tirupathi : 517501 • Tiruvalla 2nd Floor,
Erinjery Complex, Near Kotak Securites, Ramanchira Tiruvalla 689107 • Trichur 2nd Floor,
Brother's Complex, Near DhanaLaxmi Bank Head Office, Naikkanal Junction, Trichur 680001
• Trichy Sri Krishna Arcade, 1st Floor, 60 Thennur High Road, Trichy 620017 • Trivandrum 2nd
Floor, Akshaya Towers, Above Jetairways, Sasthamangalam, Trivandrum 695010 • Tuticorin 4
B, A34, A37, Mangalmal, Mani Nagar,Opp Rajaji Park, Palayamkottai Road, Tuticorin 628003
• Udaipur 201-202, Madhav Chambers, Opp G P O Chetak Circle, Madhuban, Udaipur
313001 • Ujjain 101, Aastha Tower, 13/1,Dhanwantri Marg, Free Gunj Ujjain 456010 • Valsad
Shop No 2, Phiroza Corner Opp Next Showroom; Tithal Road Valsad 396001 • Vapi Shop No
5, Phikhaji Residency, Opp DCB Bank,Vapi Silvassa Road, Vapi 396195 • Varanasi D-64/132,
KA 1st Floor, Anant Complex, Sigra, Varanasi 221010 • Vashi A Wing, Shop No 205, 1st Floor,
Vashi Plaza,Sector 17, Vashi, Navi Mumbai - 400 073 . • Vellore No 1, M N R Arcade,
Officer's Line, Krishna Nagar, Vellore 632001 • Vijayawada 39-10-7 Opp Municipal Water
Tank, Labbipet, Vijayawada 520010 • Vile Parle 104, Sangam Arcade, V P Road,
Opp.Railway Station, Above Axis Bank, Vile Parle (West), Mumbai 400 056 •Visakhapatnam
47-14-5/1 Eswar Paradise, Dwaraka Nagar, Main Road, Visakhapatnam 530016
•Vijayanagaram Soubhagya, 19-6-13/1, llnd Floor, Near SBI Fort Branch, Vizianagaram
535002 • Warangal Karvy Fintech Pvt.Ltd. H. No. 1-8-533, Beside: Suprabha Hotel,
Nakkalagutta, Ward No.1, Hanamkonda, Waranagal - 506 001, Telangana. • Yamuna
Nagar Jagdhari Road, Above UCO Bank, Near D A V Grils College, Yamuna Nagar 135 001.
Karvy, Registrar & Transfer Agents of Axis Mutual Fund having its office at Unit: Axis Mutual
Fund, Karvy Selenium, Tower B, Plot number 31 & 32, Financial District, Gachibowli,
Hyderabad 500 008 is the collection centre of transactions / request for electronic
transactions received from specified banks, financial institutions, distribution channel etc.
(mobilized on behalf of their clients) with whom the AMC has entered or may enter into
specific arrangements for purchase/ sale/switch of units.
Website of the AMC (www.axismf.com) shall be official point of acceptance for existing
investors.
In addition to the existing official points of acceptance (“OPA”) for accepting transactions
in the units of the schemes of the Axis Mutual Fund as disclosed in the SID,
http://www.mfuindia.com/MFUPOS i.e. online transaction portal of MFU and the authorized
Points of Service (“POS”) designated by MUFI shall also be the OPA.
Axis Triple Advantage Fund 126
Axis Asset Management Company Limited (Investment Manager to Axis Mutual Fund) Axis
House, 1st Floor, C-2 Wadia International, Pandurang Budhkar Marg, Worli, Mumbai -
400025, India.
TEL 022 4325 5100 FAX 022 4325 5199 TOLL FREE 1800 221322 and additional contact number
8108622211(Chargeable) EMAIL [email protected] WEB www.axismf.com
Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts
Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual
Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC) Risk
Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the
operation of the scheme.
Mutual Fund Investments are subject to market risks, read all scheme related documents
carefully.
1 Axis Liquid Fund
SCHEME INFORMATION DOCUMENT
AXIS LIQUID FUND
An Open ended Liquid Scheme
Continuous offer for units at NAV based prices
This product is suitable for investors who are seeking*:
Regular income over short term
Investment in debt and money market instruments
* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Name of Mutual Fund : Axis Mutual Fund
Name of Asset Management Company : Axis Asset Management Company Ltd.
Name of Trustee Company : Axis Mutual Fund Trustee Ltd.
Addresses, Website of the entities : Axis House, 1st Floor, C-2, Wadia International Centre,
Pandurang Budhkar Marg, Worli, Mumbai - 400 025
www.axismf.com
Name of Sponsor : Axis Bank Ltd.
The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board
of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations or the
Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the Asset
Management Company (AMC). The Units being offered for public Subscription have not been approved or
recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information
Document.
The Scheme Information Document sets forth concisely the information about the Scheme that a
prospective Investor ought to know before investing. Before investing, Investors should also ascertain about
any further changes to this Scheme Information Document after the date of this Document from the Mutual
Fund / Investor Service Centres / Website / Distributors or Brokers.
The Investors are advised to refer to the Statement of Additional Information (SAI) for details of Axis Mutual
Fund, Tax and Legal issues and general information on www.axismf.com.
SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of
the current SAI, please contact your nearest Investor Service Centre or log on to our website.
The Scheme Information Document should be read in conjunction with the SAI and not in isolation.
This Scheme Information Document is dated November 27, 2020.
2 Axis Liquid Fund
TABLE OF CONTENTS
HIGHLIGHTS/SUMMARY OF THE SCHEME .............................................................................................. 3
I. INTRODUCTION ............................................................................................................................ 5
A. RISK FACTORS .............................................................................................................................. 5
B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME ..................................................... 8
C. SPECIAL CONSIDERATIONS, if any ............................................................................................ 8
D. DEFINITIONS .................................................................................................................................. 9
E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY ................................................ 13
II. INFORMATION ABOUT THE SCHEME ....................................................................................... 14
A. TYPE OF THE SCHEME ................................................................................................................ 14
B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? ..................................................... 14
C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? .................................................................. 14
D. WHERE WILL THE SCHEME INVEST? ......................................................................................... 32
E. WHAT ARE THE INVESTMENT STRATEGIES? ............................................................................. 37
F. FUNDAMENTAL ATTRIBUTES ...................................................................................................... 42
G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? .............................................. 43
H. WHO MANAGES THE SCHEME? .............................................................................................. 43
I. WHAT ARE THE INVESTMENT RESTRICTIONS? ......................................................................... 44
J. CREATION OF SEGREGATED PORTFOLIO .............................................................................. 48
K. HOW HAS THE SCHEME PERFORMED? ................................................................................... 52
L. Additional Scheme Related Disclosures .............................................................................. 54
III. UNITS AND OFFER ...................................................................................................................... 56
A. NEW FUND OFFER (NFO) .............................................................................................................. 56
B. ONGOING OFFER DETAILS ............................................................................................................ 66
C. PERIODIC DISCLOSURES ............................................................................................................... 94
D. COMPUTATION OF NAV ............................................................................................................... 97
IV. FEES AND EXPENSES .................................................................................................................. 98
A. NEW FUND OFFER (NFO) EXPENSES ........................................................................................ 98
B. ANNUAL SCHEME RECURRING EXPENSES ............................................................................. 98
C. LOAD STRUCTURE .................................................................................................................... 100
D. WAIVER OF LOAD FOR DIRECT APPLICATIONS .................................................................. 102
V. RIGHTS OF UNITHOLDERS ....................................................................................................... 103
VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR
INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF
BEING TAKEN BY ANY REGULATORY AUTHORITY ............................................................................. 104
3 Axis Liquid Fund
HIGHLIGHTS/SUMMARY OF THE SCHEME
Investment objective
To provide a high level of liquidity with reasonable returns commensurating with low risk
through a portfolio of money market and debt securities. However, there can be no
assurance that the investment objective of the scheme will be achieved.
Liquidity
The Scheme offers Units for Subscription and Redemption at NAV based prices on all
Business Days on an ongoing basis. Under normal circumstances the AMC shall dispatch the
Redemption proceeds within 10 Business Days from the date of receipt of request from the
Unit holder.
Benchmark
Nifty Liquid Index
Transparency/NAV Disclosure
The AMC will calculate the NAVs for all the Calendar Days. The Asset Management
Company (“AMC”) shall update the NAVs on its website (www.axismf.com) and of the
Association of Mutual Funds in India (“AMFI”) (www.amfiindia.com) before 11.00 p.m. every
Business Day. If the NAVs are not available before the commencement of Business Hours on
the following day due to any reason, the Mutual Fund shall issue a press release giving
reasons and explaining when the Mutual Fund would be able to publish the NAV.
The AMC will disclose the portfolio of the Scheme (alongwith ISIN) on fortnightly and half
yearly basis on the website of the Mutual Fund and AMFI within 5 days of every fortnight
and within 10 days from the close of each half year (i.e. 31st March and 30th September)
respectively in a user-friendly and downloadable spreadsheet format. Further, AMC shall
publish an advertisement, in an all India edition of one national English daily newspaper
and in one Hindi newspaper, every half year disclosing the hosting of the half-yearly
statement of its schemes portfolio on the website of the Mutual Fund and AMFI and the
modes through which unitholder can submit a request for a physical or electronic copy of
the statement of scheme portfolios.
The AMC will also provide a dashboard, in a comparable, downloadable (spreadsheet)
and machine readable format, providing performance and key disclosures like Scheme’s
AUM, investment objective, expense ratios, portfolio details, scheme’s past performance
etc. on its website.
The AMC will make available the Annual Report of the Scheme within four months of the
end of the financial year on its website and on the website of AMFI along with a link.
Minimum Application Amount for purchase / swtich-in:
Growth Option: Rs. 500 and in multiples of Re. 1/- thereafter
All other options: Rs. 5,000 and in multiples of Re. 1/- thereafter
Minimum Additional Purchase for purchase / swtich-in:
Growth Option: Rs. 500 and in multiples of Re. 1/- thereafter
All other options: Rs.1000 and in multiples of Re. 1/- thereafter
Minimum application amount is applicable at the time of creation of new folio and at the
time of first investment in a plan.
Plans and Options under the Plan(s) of the Scheme
Plans
Axis Liquid Fund – Regular Plan
Axis Liquid Fund – Direct Plan
Both plans will have a common portfolio.
Each Plan offers the following Options:
4 Axis Liquid Fund
• Growth option
• Dividend option
Options Sub-options
Growth Nil
Dividend Daily (reinvestment)
Weekly (payout and reinvestment)
Monthly (payout and reinvestment)
Direct Plan
Direct Plan is only for investors who purchase/ subscribe Units in a Scheme directly with the
Fund and is not available for investors who route their investments through a Distributor.
Eligible investors / modes for applying
All categories of investors (whether existing or new Unitholders) as permitted under the
Scheme Information Document of the Scheme are eligible to subscribe under Direct Plan.
Investments under Direct Plan can be made through various modes offered by the Fund for
investing directly with the Fund {except Platform(s) where investors’ applications for
subscription of units are routed through Distributors}.
All the plans will have common portfolio.
Loads
Entry Load: Not Applicable
Exit Load: w.e.f. October 20, 2019
Investor exit upon Subscription Exit load as a % of redemption proceeds
Day 1 0.0070%
Day 2 0.0065%
Day 3 0.0060%
Day 4 0.0055%
Day 5 0.0050%
Day 6 0.0045%
Day 7 onwards 0.0000%
The aforesaid exit load shall be applicable on a prospective basis to all fresh investments
made in the Scheme on or after the effective date including registered Systematic Transfer
Plans (STPs), Systematic Withdrawal Plans (SWPs) etc. falling due on or after the effective
date. SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 has
decided that there shall be no entry Load for all Mutual Fund Schemes.
For more details on Load Structure, refer to the paragraph ‘Load Structure’.
5 Axis Liquid Fund
I. INTRODUCTION
A. RISK FACTORS
i. Standard Risk Factors
Investment in Mutual Fund Units involves investment risks such as trading volumes,
settlement risk, liquidity risk, default risk including the possible loss of principal.
As the price / value / interest rates of the securities in which the Scheme invests
fluctuates, the value of your investment in the Scheme may go up or down.
Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future
performance of the Scheme.
Axis Liquid Fund is only the name of the Scheme and does not in any manner indicate
either the quality of the Scheme or its future prospects and returns.
The sponsor is not responsible or liable for any loss resulting from the operation of the
Scheme beyond the initial contribution of Rs. 1 lakh made by it towards setting up the
Fund.
Axis Liquid Fund is not a guaranteed or assured return Scheme.
ii. Scheme Specific Risk Factors
Risks associated with investments in Fixed Income Securities
Interest-Rate Risk: Fixed income securities such as government bonds, corporate bonds,
Money Market Instruments and Derivatives run price-risk or interest-rate risk. Generally, when
interest rates rise, prices of existing fixed income securities fall and when interest rates drop,
such prices increase. The extent of fall or rise in the prices depends upon the coupon and
maturity of the security. It also depends upon the yield level at which the security is being
traded.
Re-investment Risk: Investments in fixed income securities carry re-investment risk as interest
rates prevailing on the coupon payment or maturity dates may differ from the original
coupon of the bond.
Basis Risk: The underlying benchmark of a floating rate security or a swap might become
less active or may cease to exist and thus may not be able to capture the exact interest
rate movements, leading to loss of value of the portfolio.
Spread Risk: In a floating rate security the coupon is expressed in terms of a spread or mark
up over the benchmark rate. In the life of the security this spread may move adversely
leading to loss in value of the portfolio. The yield of the underlying benchmark might not
change, but the spread of the security over the underlying benchmark might increase
leading to loss in value of the security.
Liquidity Risk: The liquidity of a bond may change, depending on market conditions leading
to changes in the liquidity premium attached to the price of the bond. At the time of selling
the security, the security can become illiquid, leading to loss in value of the portfolio.
Credit Risk: This is the risk associated with the issuer of a debenture/bond or a Money Market
Instrument defaulting on coupon payments or in paying back the principal amount on
maturity. Even when there is no default, the price of a security may change with expected
changes in the credit rating of the issuer. It is to be noted here that a Government Security
is a sovereign security and is the safest. Corporate bonds carry a higher amount of credit
risk than Government Securities. Within corporate bonds also there are different levels of
safety and a bond rated higher by a particular rating agency is safer than a bond rated
lower by the same rating agency.
Liquidity Risk on account of unlisted securities: The liquidity and valuation of the Scheme
investments due to their holdings of unlisted securities may be affected if they have to be
sold prior to their target date of divestment. The unlisted security can go down in value
before the divestment date and selling of these securities before the divestment date can
lead to losses in the portfolio.
Settlement Risk: Fixed income securities run the risk of settlement which can adversely affect
the ability of the fund house to swiftly execute trading strategies which can lead to adverse
movements in NAV.
6 Axis Liquid Fund
Risk associated with Securitized Debt
The Scheme may invest in domestic securitized debt such as Asset Backed Securities
(“ABS”) or Mortgage Backed Securities (“MBS”). ABS are securitized debts where the
underlying assets are receivables arising from various loans including automobile loans,
personal loans, loans against consumer durables, etc. MBS are securitized debts where the
underlying assets are receivables arising from loans backed by mortgage of residential /
commercial properties.
At present in Indian market, following types of loans are securitized:
1. Auto Loans (cars / commercial vehicles /two wheelers)
2. Residential Mortgages or Housing Loans
3. Consumer Durable Loans
4. Personal Loans
5. Corporate Loans
In terms of specific risks attached to securitization, each asset class would have different
underlying risks. Residential Mortgages generally have lower default rates than other asset
classes, but repossession becomes difficult. On the other hand, repossession and
subsequent recovery of commercial vehicles and other auto assets is fairly easier and
better compared to mortgages. Asset classes like personal loans, credit card receivables
are unsecured and in an economic downturn may witness higher default. A corporate
loan/receivable, depend upon the nature of the underlying security for the loan or the
nature of the receivable and the risks correspondingly fluctuate.
The rating agencies define margins, over collateralisation and guarantees to bring risk in
line with similar AAA rated securities. The factors typically analyzed for any pool are as
follows:
a. Assets securitized and Size of the loan: This indicates the kind of assets financed with the
loan and the average ticket size of the loan. A very low ticket size might mean more
costs in originating and servicing of the assets.
b. Diversification: Diversification across geographical boundaries and ticket sizes might
result in lower delinquency.
c. Loan to Value Ratio: Indicates how much % value of the asset is financed by borrower’s
own equity. The lower this value the better it is. This suggests that where the borrowers
own contribution of the asset cost is high; the chances of default are lower.
d. Average seasoning of the pool: This indicates whether borrowers have already displayed
repayment discipline. The higher the number, the more superior it is.
The other main risks pertaining to Securitised debt are as follows:
Prepayment Risk: This arises when the borrower pays off the loan sooner than expected.
When interest rates decline, borrowers tend to pay off high interest loans with money
borrowed at a lower interest rate, which shortens the average maturity of ABS. However,
there is some prepayment risk even if interest rates rise, such as when an owner pays off a
mortgage when the house is sold or an auto loan is paid off when the car is sold.
Reinvestment Risk: Since prepayment risk increases when interest rates decline, this also
introduces reinvestment risk, which is the risk that the principal can only be reinvested at a
lower rate.
Risks associated with investments in Derivatives Transactions
Credit Risk: The credit risk is the risk that the counter party will default in its obligations and is
generally small as in a Derivative transaction there is generally no exchange of the principal
amount.
Interest rate risk: Derivatives carry the risk of adverse changes in the price due to change in
interest rates.
Basis Risk: When a bond is hedged using a Derivative, the change in price of the bond and
7 Axis Liquid Fund
the change in price of the Derivative may not be fully correlated leading to basis risk in the
portfolio.
Liquidity risk: During the life of the Derivative, the benchmark might become illiquid and
might not be fully capturing the interest rate changes in the market, or the selling,
unwinding prices might not reflect the underlying assets, rates and indices, leading to loss of
value of the portfolio.
Model Risk: The risk of mis–pricing or improper valuation of Derivatives.
Trade Execution: Risk where the final execution price is different from the screen price
leading to dilution in the spreads and hence impacting the profitability of the reverse
arbitrage strategy.
Systemic Risk: For Derivatives, especially OTC ones the failure of one Counter Party can put
the whole system at risk and the whole system can come to a halt.
Derivative products are leveraged instruments and can provide disproportionate gains as
well as disproportionate losses to the investor. Execution of strategies depends upon the
ability of the fund manager to identify such opportunities. Identification and execution of
the strategies to be pursued by the fund manager involve uncertainty and decision of fund
manager may not always be profitable. No assurance can be given that the fund
manager will be able to identify or execute such strategies.
The risks associated with the use of Derivatives are different from or possibly greater than,
the risks associated with investing directly in securities and other traditional investments.
Risk associated with Short Selling & Securities Lending
Securities Lending is a lending of securities through an approved intermediary to a borrower
under an agreement for a specified period with the condition that the borrower will return
equivalent securities of the same type or class at the end of the specified period along with
the corporate benefits accruing on the securities borrowed. There are risks inherent in
securities lending, including the risk of failure of the other party, in this case the approved
intermediary to comply with the terms of the agreement. Such failure can result in a
possible loss of rights to the collateral, the inability of the approved intermediary to return
the securities deposited by the lender and the possible loss of corporate benefits accruing
thereon.
Short-selling is the sale of shares or securities that the seller does not own at the time of
trading. Instead, he borrows it from someone who already owns it. Later, the short seller
buys back the stock/security he shorted and returns the stock/security to the lender to close
out the loan. The inherent risks are Counterparty risk and liquidity risk of the stock/security
being borrowed. The security being short sold might be illiquid or become illiquid and
covering of the security might occur at a much higher price level than anticipated, leading
to losses.
Risk factors associated with repo transactions in Corporate Bonds
The Scheme may be exposed to counter party risk in case of repo lending transactions in
the event of the counterparty failing to honour the repurchase agreement. However in
repo transactions, the collateral may be sold and a loss is realized only if the sale price is less
than the repo amount. The risk is further mitigated through over-collateralization (the value
of the collateral being more than the repo amount).
Risks associated with Creation of Segregated portfolio
1. Investor holding units of segregated portfolio may not able to liquidate their holding till
the time recovery of money from the issuer.
2. Security comprises of segregated portfolio may not realise any value.
3. Listing of units of segregated portfolio on recognised stock exchange does not
necessarily guarantee their liquidity. There may not be active trading of units in the
stock market. Further trading price of units on the stock market may be significantly
lower than the prevailing NAV.
8 Axis Liquid Fund
Risks associated with transaction in Units through stock exchange(s)
In respect of transaction in Units of the Scheme through BSE and / or NSE, allotment and
redemption of Units on any Business Day will depend upon the order processing /
settlement by BSE and / or NSE and their respective clearing corporations on which the
Fund has no control.”
Risk Associated with investment in Foreign Securities
Subject to necessary approvals, the Scheme may also invest in overseas financial assets as
permitted under the applicable regulations. The value of an investment in a foreign issuer’s
securities may depend on general global economic factors or specific economic and
political factors relating to the country or countries in which the foreign issuer operates. To
the extent the assets of the Scheme are invested in overseas financial assets, there may be
risk associated with fluctuation in foreign exchange rates, restriction on repatriation of
capital and earnings under the exchange control regulations and transaction procedure in
overseas market. The repatriation of capital to India may also be hampered by changes in
regulations concerning exchange controls, political circumstances, bi-lateral conflicts or
prevalent tax laws. Since the Scheme would invest only partially in foreign securities, there
may not be readily available and widely accepted benchmarks to measure performance
of such Scheme. To manage risks associated with foreign currency and interest rate
exposure, the Scheme may use derivatives for efficient portfolio management and hedging
and portfolio rebalancing and in accordance with conditions as may be stipulated under
the Regulations and by RBI from time to time.
Investment in foreign securities carries currency risk. Currency risk is a form of risk that arises
from the change in price of one currency against other. The exchange risk associated with
a foreign denominated instrument is a key element in foreign investment. This risk flows from
differential monetary policy and growth in real productivity, which results in differential
inflation rates. The risk arises because currencies may move in relation to each other.
B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME
The Scheme shall have a minimum of 20 Investors and no single Investor shall account for
more than 25% of the corpus of the Schemes). The aforesaid conditions should be complied
with in each calendar quarter on an average basis. In case the Scheme does not have a
minimum of 20 Investors on an ongoing basis for each calendar quarter, the provisions of
Regulation 39(2)(c) of the SEBI (MF) Regulations would become applicable automatically
without any reference from SEBI and accordingly the Scheme shall be wound up and the
units would be redeemed at Applicable NAV. If there is a breach of the 25% limit by any
Investor over the quarter, a rebalancing period of one month would be allowed and
thereafter the Investor who is in breach of the rule shall be given 15 days’ notice to redeem
his exposure over the 25% limit. Failure on the part of the said investor to redeem his
exposure over the 25% limit within the aforesaid 15 days would lead to automatic
Redemption by the Mutual Fund at the Applicable NAV on the 15th day of the notice
period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in
this regard.
C. SPECIAL CONSIDERATIONS, if any
Prospective investors should study this Scheme Information Document and Statement of
Additional Information carefully in its entirety and should not construe the contents
hereof as advise relating to legal, taxation, financial, investment or any other matters
and are advised to consult their legal, tax, financial and other professional advisors to
determine possible legal, tax, financial or other considerations of subscribing to or
redeeming Units, before making a decision to invest/redeem/hold Units.
The Scheme related documents i.e. SID/ KIM/ SAI or the units of the Fund are not
registered in any jurisdiction including the United States of America nor in any
provincial/ territorial jurisdiction in Canada. The distribution of the Scheme related
document in certain jurisdictions may be restricted or subject to registration
requirements and, accordingly, persons who come into possession of the Scheme
related documents are required to inform themselves about, and to observe any such
restrictions. No persons receiving a copy of this Scheme related documents or any
accompanying application form in such jurisdiction may treat these Scheme related
documents or such application form as constituting an invitation to them to subscribe
9 Axis Liquid Fund
for units, nor should they in any event use any such application form, unless in the
relevant jurisdiction such an invitation could lawfully be made to them and such
application form could lawfully be used without compliance with any registration or
other legal requirements. Accordingly the Scheme related documents do not constitute
an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is
not lawful or in which the person making such offer or solicitation is not qualified to do
so or to anyone to whom it is unlawful to make such offer or solicitation as per
applicable law.
The AMC, Trustee or the Mutual Fund have not authorized any person to issue any
advertisement or to give any information or to make any representations, either oral or
written, other than that contained in this Scheme Information Document or the
Statement of Additional Information or as is provided by the AMC in connection with
this offering. Prospective Investors are advised not to rely upon any information or
representation not incorporated in the Scheme Information Document or Statement of
Additional Information or as provided by the AMC as having been authorized by the
Mutual Fund, the AMC or the Trustee.
Redemption due to change in the fundamental attributes of the Scheme or due to any
other reasons may entail tax consequences. The Trustee, AMC, Mutual Fund, their
directors or their employees shall not be liable for any such tax consequences that may
arise due to such Redemptions.
The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for
any of the tax consequences that may arise, in the event that the Scheme is wound up
for the reasons and in the manner provided in Statement of Additional Information.
The tax benefits described in this Scheme Information Document and Statement of
Additional Information are as available under the present taxation laws and are
available subject to relevant conditions. The information given is included only for
general purpose and is based on advise received by the AMC regarding the law and
practice currently in force in India as on the date of this Scheme Information Document
and the Unit holders should be aware that the relevant fiscal rules or their
interpretation may change. As is the case with any investment, there can be no
guarantee that the tax position or the proposed tax position prevailing at the time of an
investment in the Scheme will endure indefinitely. In view of the individual nature of tax
consequences, each Unit holder is advised to consult his / her own professional tax
advisor.
The Mutual Fund may disclose details of the investor’s account and transactions there
under to those intermediaries whose stamp appears on the application form or who
have been designated as such by the investor. In addition, the Mutual Fund may
disclose such details to the bankers, as may be necessary for the purpose of effecting
payments to the investor. The Fund may also disclose such details to regulatory and
statutory authorities/bodies as may be required or necessary.
In case the AMC or its Sponsor or its Shareholders or their affiliates/associates or group
companies make substantial investment, either directly or indirectly in the Scheme.
Redemption of Units by these entities may have an adverse impact on the
performance of the Scheme. This may also affect the ability of the other Unit holders to
redeem their units.
As the liquidity of the Scheme investments may sometimes be restricted by trading
volumes and settlement periods, the time taken by the Fund for Redemption of Unit
may be significant in the event of an inordinately large number of Redemption
Requests or of a restructuring of the Scheme portfolio. In view of this, the AMC / Trustee
has the right to limit redemptions under certain circumstances - please refer to the
paragraph “Suspension/Restriction on Redemption of Units of the Scheme”.
Pursuant to the provisions of Prevention of Money Laundering Act, 2002, if after due
diligence, the AMC believes that any transaction is suspicious in nature as regards
money laundering, on failure to provide required documentation, information, etc. by
the Unit holder the AMC shall have absolute discretion to report such suspicious
transactions to FIU-IND (Financial Intelligence Unit – India) and / or to freeze the folios of
the investor(s), reject any application(s)/redemptions / allotment of Units.
D. DEFINITIONS
"AMC" or "Asset
Management
Axis Asset Management Company Ltd., incorporated under the
provisions of the Companies Act, 1956 and approved by Securities
10 Axis Liquid Fund
Company" or
"Investment
Manager"
and Exchange Board of India to act as the Asset Management
Company for the scheme(s) of Axis Mutual Fund.
"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
time stamped.
“Business Day” A day other than:
(i) Saturday and Sunday;
(ii) A day on which the banks in Mumbai and /or RBI are closed for
business /clearing;
(iii) A day on which the National Stock Exchange of India Ltd.
and/or BSE Ltd., Mumbai are closed;
(iv) A day which is a public and /or bank Holiday at an Investor
Service Centre/Official Point of Acceptance where the
application is received;
(v) A day on which Sale / Redemption / Switching of Units is
suspended by the AMC;
(vi) A day on which normal business cannot be transacted due to
storms, floods, bandhs, strikes or such other events as the AMC
may specify from time to time.
Further, the day(s) on which the money markets are closed / not
accessible, shall not be treated as Business Day(s).
The AMC reserves the right to declare any day as a Business Day or
otherwise at any or all Investor Service Centres/Official Points of
Acceptance.
"Business Hours" Presently 9.30 a.m. to 5.30 p.m. on any Business Day or such other
time as may be applicable from time to time.
"Custodian" A person who has been granted a certificate of registration to carry
on the business of custodian of securities under the Securities and
Exchange Board of India (Custodian of Securities) Regulations 1996,
which for the time being is Deutsche Bank AG.
"Depository" Depository as defined in the Depositories Act, 1996 (22 of 1996).
"Deed of Trust" The Deed of Trust dated June 27, 2009 made by and between Axis
Bank Ltd. and Axis Mutual Fund Trustee Ltd. thereby establishing an
irrevocable trust, called Axis Mutual Fund.
"Derivative" Derivative includes (i) a security derived from a debt instrument,
share, loan whether secured or unsecured, risk instrument or
contract for differences or any other form of security; (ii) a contract
which derives its value from the prices, or index of prices, or
underlying securities.
"Dividend" Income distributed by the Mutual Fund on the Units.
“Dividend Sweep
option” / “DSO”
Facility given to the Unit holders to automatically invest the dividend
by eligible source scheme into eligible target scheme of Mutual
Fund.
“Foreign Portfolio
Investor” (FPI)
A person who satisfies the eligibility criteria prescribed under
regulation 4 of SEBI (Foreign Portfolio Investors) Regulations, 2014 and
has been registered under Chapter II of these regulations, which
shall be deemed to be an intermediary in terms of the provisions of
the Act.
"Floating Rate
Debt Instruments"
Floating rate debt instruments are debt securities issued by Central
and / or State Government, corporates or PSUs with interest rates
that are reset periodically. The periodicity of the interest reset could
be daily, monthly, quarterly, half-yearly, annually or any other
periodicity that may be mutually agreed with the issuer and the
Fund. The interest on the instruments could also be in the nature of
fixed basis points over the benchmark gilt yields.
“Foreign
Securities”
ADRs / GDRs/ equity / debt securities of overseas companies listed
on the recognized stock exchanges overseas or other securities as
may be specified and permitted by SEBI and/or RBI from time to
11 Axis Liquid Fund
time.
"Gilts" or
"Government
Securities"
Securities created and issued by the Central Government and/or a
State Government (including Treasury Bills) or Government Securities
as defined in the Public Debt Act, 1944, as amended or re-enacted
from time to time.
“GOI” Government of India
“Holiday” Holiday means the day(s) on which the banks (including the Reserve
Bank of India)are closed for business or clearing in Mumbai or their
functioning is affected due to a strike / bandh call made at any part
of the country or due to any other reason.
"Investment
Management
Agreement"
The agreement dated June 27, 2009 entered into between Axis
Mutual Fund Trustee Ltd. and Axis Asset Management Company Ltd.,
as amended from time to time.
"Investor Service
Centres" or "ISCs"
Offices of Axis Asset Management Company Ltd. or such other
centres / offices as may be designated by the AMC from time to
time.
"Load" In the case of Redemption / Switch out of a Unit, the sum of money
deducted from the Applicable NAV on the Redemption / Switch out
(Exit Load) and in the case of Sale / Switch in of a Unit, a sum of
money to be paid by the prospective investor on the Sale / Switch in
of a Unit (Entry Load) in addition to the Applicable NAV.
Presently, entry load cannot be charged by mutual fund schemes.
"Money Market
Instruments"
Includes commercial papers, commercial bills, treasury bills,
Government securities having an unexpired maturity upto one year,
call or notice money, certificate of deposit, usance bills and any
other like instruments as specified by the Reserve Bank of India from
time to time.
"Mutual Fund" or
"the Fund"
Axis Mutual Fund, a trust set up under the provisions of the Indian
Trusts Act, 1882.
"Net Asset Value"
or "NAV"
Net Asset Value per Unit of the Scheme, calculated in the manner
described in this Scheme Information Document or as may be
prescribed by the SEBI (MF) Regulations from time to time.
"NRI" A Non-Resident Indian or a Person of Indian Origin residing outside
India.
“Overseas Citizen
of India” / “OCI”
Means a person registered as an Overseas Citizen of India
Cardholder by the Central Government under section 7A of The
Citizenship Act, 1955.
"Official Points of
Acceptance"
Places, as specified by AMC from time to time where application for
Subscription / Redemption / Switch will be accepted on ongoing
basis.
"Person of Indian
Origin"
A citizen of any country other than Bangladesh or Pakistan, if (a) he
at any time held an Indian passport; or (b) he or either of his parents
or any of his grandparents was a citizen of India by virtue of
Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c)
the person is a spouse of an Indian citizen or person referred to in
sub-clause (a) or (b).
"Rating" Rating means an opinion regarding securities, expressed in the form
of standard symbols or in any other standardized manner, assigned
by a credit rating agency and used by the issuer of such securities,
to comply with any requirement of the
SEBI (Credit Rating Agencies) Regulations, 1999.
"RBI" Reserve Bank of India, established under the Reserve Bank of India
Act, 1934, (2 of 1934)
"Registrar and
Transfer Agent" or
Registrar
KFin Technologies Pvt. Ltd., Hyderabad, currently acting as registrar
to the Scheme, or any other Registrar appointed by the AMC from
time to time.
"Redemption” /
“Repurchase"
Redemption of Units of the Scheme as permitted.
“Regulatory
Agency”
GOI, SEBI, RBI or any other authority or agency entitled to issue or
give any directions, instructions or guidelines to the Mutual Fund
12 Axis Liquid Fund
“Repo” Sale/Purchase of Securities with simultaneous agreement to
repurchase / resell them at a later date.
"Statement of
Additional
Information" or
"SAI"
The document issued by Axis Mutual Fund containing details of Axis
Mutual Fund, its constitution, and certain tax, legal and general
information. SAI is legally a part of the Scheme Information
Document.
"Sale” /
“Subscription"
Sale or allotment of Units to the Unit holder upon subscription by the
Investor / applicant under the Scheme.
"Scheme" Axis Liquid Fund
“Scheme
Information
Document”
This document issued by Axis Mutual Fund, offering for Subscription of
Units of Axis Liquid Fund (including Options there under)
"SEBI" Securities and Exchange Board of India, established under the
Securities and Exchange Board of India Act, 1992.
"SEBI (MF)
Regulations" or
"Regulations"
Securities and Exchange Board of India (Mutual Funds) Regulations,
1996, as amended from time to time.
"Short Selling" Short selling means selling a stock which the seller does not own at
the time of trade.
"Sponsor" Axis Bank Ltd.
"Switch" Redemption of a unit in any scheme (including the Plans / options
therein) of the Mutual Fund against purchase of a unit in another
scheme (including the Plans /options therein) of the Mutual Fund,
subject to completion of Lock-in Period, if any.
"Stock Lending" Lending of securities to another person or entity for a fixed period of
time, at a negotiated compensation in order to enhance returns of
the portfolio.
“Systematic
Transfer Plan” /
“STP”
Facility given to the Unit holders to transfer sums on periodic basis
from one scheme to another schemes launched by the Mutual Fund
from time to time by giving a single instruction.
“Tri Party Repos” Tri-party repo means a repo contract where a third entity (apart
from the borrower and lender), called a Tri-Party Agent, acts as an
intermediary between the two parties to the repo to facilitate
services like collateral selection, payment and settlement, custody
and management during the life of the transaction.
“Trustee” or
“Trustee
Company”
Axis Mutual Fund Trustee Ltd. incorporated under the provisions of
the Companies Act, 1956 and approved by SEBI to act as the Trustee
to the Scheme of the Mutual Fund.
"Unit" The interest of the Unit holder which consists of each Unit
representing one undivided share in the assets of the Scheme.
"Unit holder" or
"Investor"
A person holding Units in Axis Liquid Fund.
INTERPRETATION
For all purposes of this Scheme Information Document, except as otherwise expressly
provided or unless the context otherwise requires:
all references to the masculine shall include the feminine and all references, to the
singular shall include the plural and vice-versa.
all references to "dollars" or "$" refer to United States Dollars and "Rs" refer to Indian
Rupees. A "crore" means "ten million" and a "lakh" means a "hundred thousand".
all references to timings relate to Indian Standard Time (IST).
References to a day are to a calendar day including a Non Business Day.
13 Axis Liquid Fund
E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY
It is confirmed that:
(i) The Scheme Information Document forwarded to SEBI is in accordance with the SEBI
(Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from
time to time.
(ii) All legal requirements connected with the launching of the Scheme as also the
guidelines, instructions, etc., issued by the Government and any other competent
authority in this behalf, have been duly complied with.
(iii) The disclosures made in the Scheme Information Document are true, fair and adequate
to enable the investors to make a well informed decision regarding investment in the
Scheme.
(iv) The intermediaries named in the Scheme Information Document and Statement of
Additional Information are registered with SEBI and their registration is valid, as on date.
Place: Mumbai Signed: Sd/-
Date: November 27, 2020 Name: Darshan Kapadia
Designation: Compliance Officer
14 Axis Liquid Fund
II. INFORMATION ABOUT THE SCHEME
A. TYPE OF THE SCHEME
An Open-ended Liquid Scheme
B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME?
To provide a high level of liquidity with reasonable returns commensurating with low risk
through a portfolio of money market and debt securities. However, there can be no
assurance that the investment objective of the Scheme will be achieved.
C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS?
Under normal circumstances the asset allocation pattern will be:
Instruments
Indicative Allocation
(% of net assets) Risk Profile
Minimum Maximum Low/
Medium/ High
Money market instruments (including cash, repo,
CPs, CDs, Treasury Bills and Government
securities) with maturity/residual maturity up to
91 days
50 100 Low
Debt instruments (including floating rate debt
instruments and securitized debt)* with
maturity/residual maturity/ weighted average
maturity up to 91 days
0 50 Low to
medium
*securitized debt cumulative allocation not to exceed 30% of the net assets of the Scheme
(excluding foreign securitized debt).
Investment in Derivatives – up to 50% of the net assets of the Scheme. Investment in
derivatives shall be for hedging, portfolio balancing and such other purposes as maybe
permitted from time to time.
Pursuant to SEBI circular no. SEBI/IMD/CIR No. 13/150975/09 dated January 19, 2009, the
Scheme shall make investment in / purchase debt and money market securities with
maturity of up to 91 days only.
Explanation:
a. In case of securities where the principal is to be repaid in a single payout, the maturity
of the securities shall mean residual maturity. In case the principal is to be repaid in
more than one payout then the maturity of the securities shall be calculated on the
basis of weighted average maturity of the security.
b. In case of securities with put and call options (daily or otherwise) the residual maturity of
the securities shall not be greater than 91 days.
c. In case the maturity of the security falls on a Non Business Day, then settlement of
securities will take place on the next Business Day.
The Scheme retains the flexibility to invest across all the securities in the debt and Money
Market Instruments. The Scheme may also invest in units of debt and liquid mutual fund
schemes.
The total exposure in a particular sector (excluding investments in Bank CDs, CBLO,
Government Securities, T-Bills, short term deposits of scheduled commercial banks and AAA
rated securities issued by Public Financial Institutions and Public Sector Banks) shall not
exceed 20% of the net assets of the Scheme. Provided that an additional exposure to
financial services sector (over and above the limit of 20%) not exceeding 10% of the net
assets of the Scheme shall be allowed by way of increase in exposure to Housing Finance
Companies (HFCs) only. Provided further that the additional exposure to such securities
issued by HFCs are rated AA and above and these HFCs are registered with National
Housing Bank (NHB) and the total Investment/exposure in HFCs shall not exceed 20% of the
net assets of the Scheme. Further, an additional exposure of 5% of the net assets of the
15 Axis Liquid Fund
Scheme has been allowed for investments in securitized debt instruments based on retail
housing loan portfolio and/or affordable housing loan portfolio.
The Scheme can invest up to 50% of net assets in Foreign Securities. All investments in
foreign securities shall adhere to SEBI circular SEBI/IMD/CIR No.7/104753/07 dated
September 26, 2007 and amendments thereto.
The Scheme may engage in Short Selling of securities in accordance with the framework
relating to Short Selling and securities lending and borrowing specified by SEBI.
The Scheme may also engage in Securities Lending wherein the Scheme shall not deploy
more than 20% of its net assets in securities lending and not more than 5% of the net assets
of the Scheme will be deployed in securities lending to any single counterparty.
The portfolio duration will undergo a change according to the expected movement in
interest rates. Liquidity conditions and other macro-economic factors affecting interest
rates shall be taken into account for varying the portfolio duration. It is expected that the
average maturity for the fund will be in the range of 1-3 months depending on the interest
rate view. However, this can undergo a change in case the market conditions warrant and
according to the fund manager’s view.
The Scheme may review the above pattern of investments based on views on interest rates
and asset liability management needs. However, at all times the portfolio will adhere to the
overall investment objectives of the Scheme. Subject to the Regulations, the asset
allocation pattern indicated above may change from time to time, keeping in view market
conditions, market opportunities, applicable regulations and political and economic
factors. It must be clearly understood that the percentages stated above are only
indicative and not absolute. These proportions can vary substantially depending upon the
perception of the fund manager; the intention being at all times to seek to protect the
interests of the Unit holders. Such changes in the investment pattern will be for short term
and for defensive considerations only. In case of deviation, the portfolio would be
rebalanced within 3 months from the date of deviation. In case the same is not aligned to
the above asset allocation pattern within 3 months, justification shall be provided to the
Investment Review Committee and reasons for the same shall be recorded in writing. The
Investment Review committee shall then decide on the course of action.
Axis Liquid Fund, An Open ended Liquid Scheme, is a different scheme offered by the Fund
and is not a minor modification of any other existing scheme/product of the Fund.
Differentiation is as follows:
16 Axis Liquid Fund
Differentiation with existing open ended Debt schemes of Axis Mutual Fund are as follows:
Data as on October 31, 2020 (in INR crores)
Name of
the existing
scheme
Asset Allocation Pattern
(Under normal circumstances)
Primary Investment Objective &
Investment Strategy Differentiation AUM
No. of
Folios
Axis Short
Term Fund
Instruments
Indicative
Allocation (% of net
assets)
Risk
Profile
(Low/
Medium/
High) Minimu
m
Maximu
m
Debt and
Money Market
instruments
0 100 Low to
Medium
Units issued by
REITs & InvITs 0 10
Medium
to high
Primary Investment Objective:
The scheme will endeavor to
generate stable returns with a low
risk strategy while maintaining
liquidity through a portfolio
comprising of debt and money
market instruments.
Investment Strategy:
The scheme proposes to invest in a
diversified portfolio of high quality
debt and money market securities to
generate stable risk adjusted returns
with a low risk strategy.
The Schemes portfolio construction
will seek to play out the shape of the
yield curve of different issuer classes.
The fund manager will seek to look
for investment opportunities at
different maturities of the same yield
curve (e.g. the government
securities yield curve) as well as look
at the differentiated levels of risk
premium offered by the market to
different class of issuers (e.g. 2 year
yields offered by a government
security, an NBFC and a
manufacturing corporate).
An open
ended short
term debt
scheme
investing in
instruments
such that the
Macaulay
duration of
the portfolio is
between 1
year to 3
years
12,286.10 56,988
17 Axis Liquid Fund
Axis
Treasury
Advantag
e Fund
Instruments
Indicative Allocation
(% of net assets)
Risk
Profile
Minimum Maximu
m
Low/Me
dium/Hi
gh
Debt & Money
Market
Instruments
0 100 Low to
Mediu
m
Primary Investment Objective:
The investment objective is to
provide optimal returns and liquidity
to the investors by investing primarily
in a mix of money market and short
term debt instruments which results in
a portfolio having marginally higher
maturity as compared to a liquid
fund at the same time maintaining a
balance between safety and
liquidity.
Investment Strategy
The risk-return profile of this fund
positions it in between a liquid fund
and short duration income fund. The
portfolio strategy seeks to increase
yield by having a marginally higher
maturity and moderately higher
credit risk as compared to a liquid
fund at the same time maintaining a
balance between safety and
liquidity.
The Macaulay duration of the
portfolio of the Scheme will be
maintained between 6 months - 12
months depending on the interest
rate view. The Scheme stands to
expose to market risk which can get
captured partially by “mark to
market component” thereby
inducing a potential daily volatility.
Also, the Scheme will have a mix of
credits with a moderately higher
credit risk as compared to a liquid
An open
ended low
duration debt
scheme
investing in
instruments
such that the
Macaulay
duration of
the portfolio is
between 6 to
12 months
8,817.19 42,347
18 Axis Liquid Fund
fund. The Scheme will always aim at
controlling risk by carrying a rigorous
credit evaluation of the instruments
proposed to be invested in. The
credit evaluation will be carried out
on the basis of the parameters
mentioned above.
Axis
Dynamic
Bond Fund
Instruments
Indicative
Allocation (% of
net assets)
Risk
Profile
Minimu
m
Maximu
m
Low/
Medium
/
High
Debt
instruments
including G-
Secs and
corporate debt
0% 100% Low to
Medium
Money market
instruments
0% 100% Low
Units issued by
REITs & InvITs
0 10 Medium
to High
Primary Investment Objective:
The scheme will endeavor to
generate optimal returns while
maintaining liquidity through active
management of a portfolio of debt
and money market instruments.
Investment Strategy
Interest rates have a cyclical
movement whereas yields fall, bond
prices rise, while the reverse is true in
the case when interest rates rise. The
investment objective of this scheme
is to maximize risk adjusted returns to
the investor through an active
management of the portfolio, by
elongating the duration of the
portfolio in a falling interest rate
scenario and reducing the duration
at a time when interest rates are
moving up.
With the discretion to take
aggressive interest rate/duration risk
calls, this could mean investing the
entire net assets in long dated
Government securities and debt
instruments (carrying relatively higher
interest rate risk/duration risk), or on
An open
ended
dynamic debt
scheme
investing
across
duration
1,183.47 12,413
19 Axis Liquid Fund
defensive considerations, entirely in
money market instruments.
Accordingly, the interest rate
risk/duration risk of the scheme may
change substantially depending
upon the Fund’s call.
Axis Gilt
Fund
Instruments
Indicative
Allocation
(% of net
assets)
Risk Profile
(Low/
Medium/
High)
Government
Securities and
Treasury Bills
80-100 Sovereign
Debt & Money
market instruments 0-20
Low to
Medium
Primary Investment Objective:
The Scheme will aim to generate
credit risk-free returns through
investments in sovereign securities
issued by the Central Government
and/or State Government.
Investment Strategy
The Scheme will aim to generate
credit risk-free returns through
investments in sovereign securities
issued by the Central Government
and/or State Government.
The Scheme shall invest in
Government Securities, which
provide reasonable returns generally
construed to be without any Credit
Risk. The Scheme shall invest in
various State and Central
Government securities including
securities which are supported by
the ability to borrow from the
treasury or supported only by the
sovereign guarantee or of the state
government or supported by GOI
An open
ended debt
scheme
investing in
government
securities
across
maturity
153.24 5,280
20 Axis Liquid Fund
/state government in any other way
as may be permitted by SEBI. It may
also invest in repos/ reverse repos in
such securities, as and when
permitted by RBI.
The Scheme will also invest in money
market securities from time to time
upto the prescribed limit. Investment
views/decisions will be based on
analysis of macro-economic factors
to estimate the direction of interest
rates and level of liquidity and will be
taken on the basis of factors like,
prevailing interest rate scenario,
Government borrowing program,
level of liquidity in the banking
system, inflation level, returns offered
relative to alternative investments
opportunities, quality of the
security/instrument, maturity profile
of the instrument, liquidity of the
security and any other factor
considered relevant in the opinion of
the fund manager.
The Scheme may also use derivatives
instruments like Interest Rate Swaps,
Forward Rate Agreements or such
other derivative instruments as may
be introduced from time to time for
the purpose of hedging and portfolio
balancing within the limits permitted
by the Regulations from time to time.
21 Axis Liquid Fund
Axis
Strategic
Bond Fund
Instruments Normal Allocation
(% of net assets)
Risk
Profile
Minimu
m
Maximu
m
Debt and Money
Market instruments
0 100 Low to
Mediu
m
Units issued by
REITs & InvITs
0 10 Mediu
m to
High
Primary Investment Objective:
The Scheme will endeavor to
generate optimal returns in the
medium term while maintaining
liquidity of the portfolio by investing
in debt and money market
instruments.
Investment Strategy:
The Scheme proposes to invest in a
diversified portfolio of debt and
money market securities to generate
optimal risk adjusted returns in the
medium term.
The fund manager will try to allocate
assets of the scheme between
various fixed income securities taking
into consideration the prevailing
interest rate scenario, the liquidity of
the different instruments and
maintain a diversified portfolio with
the objective of achieving optimal
risk adjusted returns. While investing
the fund manager will keep in mind
the yield structure of different asset
classes (e.g. the sovereign yield
curve and the corporate bond yield
curve) as well as kinks within a
particular yield curve ( e.g. the
different points of the sovereign yield
curve).
An open
ended
medium term
debt scheme
investing in
instruments
such that the
Macaulay
duration of
the portfolio is
between 3
years to 4
years
942.33 9,259
Axis Credit
Risk Fund
Instruments Indicative
Allocation
Risk
Profile
Primary Investment Objective:
To generate stable returns by
investing in debt & money market
instruments across the yield curve &
An open
ended debt
scheme
predominantly
556.71 8,066
22 Axis Liquid Fund
(% of net assets)
Minimu
m Maximum
High/
Mediu
m/Low
Corporate Debt
rated AA and
below
65% 100% Low to
Mediu
m
Other Debt &
Money Market
instruments
0% 35% Low to
Mediu
m
Units issued by
REITs & InvITs
0% 10% Mediu
m to
High
credit spectrum.
Investment Strategy:
The Scheme to generate stable
returns by investing in debt & money
market instruments across the yield
curve & credit spectrum. However,
there is no assurance or guarantee
that the investment objective of the
Scheme will be achieved. The
Scheme does not assure or
guarantee any returns. The fund
manager will endeavour, through a
process of robust credit risk
assessment & research, to identify
optimum credit opportunities in the
market and invest in such instruments
offering higher yields at acceptable
levels of risk.
The fund manager will try to allocate
assets of the scheme between
various fixed income instruments
taking into consideration the
prevailing interest rate scenario, the
liquidity of the different instruments
and maintain a diversified portfolio
with the objective of achieving
stable risk adjusted returns. While
investing the fund manager will keep
in mind the yield structure of different
asset classes (e.g. the sovereign yield
curve and the corporate bond yield
curve) as well as kinks within a
particular yield curve (e.g. the
different points of the sovereign yield
investing in AA
and below
rated
corporate
bonds
(excluding
AA+ rated
corporate
bonds)
23 Axis Liquid Fund
curve).
After doing a thorough research on
the general macroeconomic
condition, political environment,
systemic liquidity, inflationary
expectations, corporate
performance and other economic
considerations the portfolio duration
and credit exposures will be
decided.
Axis
Banking &
PSU Debt
Fund
Instruments
Indicative Allocation
(% of net assets) Risk Profile
Minimum Maximum (Low/Medi
um /High)
Debt &
Money
Market
Instruments
issued by
Banks,
Public
Financial
Institutions
(PFIs) and
Public
Sector
Undertakin
gs (PSUs)
80 100 Low to
Medium
Debt
(including
governmen
t securities)
and Money
0 20 Low
Primary Investment Objective:
To generate stable returns by
investing predominantly in debt &
money market instruments issued by
Banks, Public Sector Units (PSUs) &
Public Financial Institutions (PFIs). The
Scheme shall endeavor to generate
optimum returns with low credit risk.
Investment Strategy:
The Scheme aims to generate stable
returns by investing predominantly in
debt & money market instruments
issued by Banks, Public Financial
Institutions (PFIs) and Public Sector
Undertakings (PSUs). The Scheme
shall endeavor to generate optimum
returns with low credit risk.
Investment in debt & money market
instruments issued by Banks, PFIs,
PSUs, Treasury Bills & Government
Securities is primarily with the
intention of maintaining high credit
quality & liquidity. Atleast 70% of the
An open
ended debt
scheme
predominantly
investing in
debt
instruments of
banks, Public
Sector
Undertakings
& Public
Financial
Institutions.
18,601.66 57,600
24 Axis Liquid Fund
Market
Instruments
issued by
entities
other than
Banks, PFIs
and PSUs
net assets of the Scheme shall be
invested in securities rated
AAA/A1+/Sov and equivalent.
Balance may be invested in
securities rated below AAA/A1+/Sov
and equivalent.
The investment team of the AMC will
carry out rigorous in depth credit
evaluation of the Debt & Money
Market Instruments proposed to be
invested in. The credit evaluation will
essentially be a bottom up
approach and include a study of the
operating environment of the issuer,
the past track record as well as the
future prospects of the issuer and the
short term/ long term financial health
of the issuer.
Axis
Corporate
Debt Fund
Instruments Normal Allocation
(% of net assets)
Risk
Profile
Minimu
m
Maximu
m
Corporate Debt
rated AA and
above
80% 100% Low to
Mediu
m
Other Debt &
Money Market
Instruments
0% 20% Low
Units issued by
REITs & InvITs
0% 10% Mediu
m to
High
Primary Investment Objective:
The Scheme seeks to provide steady
income and capital appreciation by
investing in corporate debt.
Investment Strategy:
The investment objective of the
Scheme is to generate regular
income and capital appreciation by
investing in corporate debt across
maturities and ratings. The Scheme
may also invest in money market
instruments. There is no assurance or
guarantee that the objectives of the
Scheme will be realized.
The Scheme will predominantly invest
An open
ended debt
scheme
predominantly
investing in
AA+ and
above rated
corporate
bonds
2,399.37 8,857
25 Axis Liquid Fund
in securities issued by corporate
(both private sector and public
sectors) including banks and
financial institutions across maturities
/ yield curve and ratings. It will look
for opportunities from credit spreads
among the range of available
corporate debt instruments by
cautiously managing the excess risk
on its corporate investments.
The portfolio maturity will be
determined after analyzing the
macro-economic environment
including future course of system
liquidity, interest rates and inflation
along with other considerations in
the economy and markets.
Emphasis may be given to choosing
securities, which, in the opinion of
the Fund Manager, are less prone to
default risk, while bearing in mind the
liquidity needs arising out of the
open-ended nature of the Scheme.
The investment team of the AMC will
carry out rigorous in depth credit
evaluation of the money market and
debt instruments proposed to be
invested in. The credit evaluation will
essentially be a bottom up
approach and include a study of the
operating environment of the issuer,
the past track record as well as the
future prospects of the issuer and the
26 Axis Liquid Fund
short term / long term financial
health of the issuer.
Axis Liquid
Fund
Instruments
Indicative
Allocation (% of
net assets)
Risk
Profile
Minimu
m
Maximu
m
Low/
Medium
/ High
Money market
instruments
(including cash,
repo, CPs, CDs,
Treasury Bills and
Government
securities) with
maturity/residual
maturity up to 91
days
50 100 Low
Debt instruments
(including
floating rate
debt instruments
and securitized
debt) with
maturity /residual
maturity/
weighted
average
maturity up to 91
days
0 50 Low to
medium
Primary Investment Objective:
To provide a high level of liquidity
with reasonable returns
commensurating with low risk
through a portfolio of money market
and debt securities.
Investment Strategy:
The Fund shall be managed
according to the investment
objective - to generate reasonable
returns commensurate with low risk.
As this Scheme is positioned at the
lowest level of risk-return matrix, it is
usually aimed to meet the needs of
the Investors who want to deploy
their funds for a short period of time.
The composition of Indian debt
market (both primary and
secondary) at the front end of the
yield curve is dominated by money
market instruments. Accordingly, the
Scheme will invest predominantly in
money market securities with some
tactical allocation towards other
debt securities to enhance the
portfolio return. The portfolio will be
structured to incorporate asset-
liability management based on
seasonal/historic trends of liabilities.
Given the usually observed nature of
the profile of liabilities, the fund shall
seek to maintain high liquidity with
An Open
ended Liquid
Scheme
26,508.84 1,50,784
27 Axis Liquid Fund
the use of cash/cash equivalent
assets.
As yield curve has been observed to
be flat (overnight to 3 months) during
most of the times, attempt will be
made to space out the assets
uniformly across the maturity
buckets. However, any irregularity in
the shape of the curve
(steep/inverted) will be played out in
the portfolio construction after
analysing the macro-economic
environment including future course
of system liquidity, interest rates and
inflation along with other
considerations in the economy and
markets.
The investment team of the AMC will
carry out rigorous in depth credit
evaluation of the money market and
debt instruments proposed to be
invested in. The credit evaluation will
essentially be a bottom up
approach and include a study of the
operating environment of the issuer,
the past track record as well as the
future prospects of the issuer and the
short term / long term financial
health of the issuer.
Axis Ultra
Short Term
Fund
Instruments Indicative Allocation
(% of net assets)
Risk Profile
Minimum Maximu High/
Primary Investment Objective:
The investment objective of the
Scheme is to generate regular
income and capital appreciation by
investing in a portfolio of short term
An open
ended ultra-
short term
debt scheme
investing in
4,205.76 48,151
28 Axis Liquid Fund
m Medium/
Low
Debt and
Money
Market
Instruments*
0% 100% Low to
Medium
debt and money market instruments
with relatively lower interest rate risk
such that Macaulay duration of the
portfolio is between 3 months and 6
months.
Investment Strategy:
The investment objective of the
Scheme is to generate regular
income and capital appreciation by
investing in a portfolio of short term
debt and money market instruments
with relatively lower interest rate risk.
The Scheme will maintain the
Macaulay duration of the portfolio
between 3 months and 6 months.
The Scheme endeavors to maximize
return while maintaining higher
liquidity. The portfolio maturity will be
determined after analyzing the
macro-economic environment
including future course of system
liquidity, interest rates and inflation
along with other considerations in
the economy and markets.
The Scheme is likely to have higher
maturity than a liquid fund. However,
the Macaulay Duration of the
portfolio for the Scheme will be
maintained between 3 months to 6
months depending on the interest
rate view. As a result, the Scheme
stands to expose to market risk which
instruments
such that the
Macaulay
duration of
the portfolio is
between 3
months and 6
months
29 Axis Liquid Fund
can get captured partially by mark
to market component thereby
inducing a potential daily volatility.
Also, the Scheme will have a mix of
credits with a moderately higher
credit risk as compared to a liquid
fund. The Scheme will always aim at
controlling risk by carrying a rigorous
credit evaluation of the instruments
proposed to be invested in. The
credit evaluation will be carried out
on the basis of the parameters
mentioned above.
The investment team of the AMC will
carry out rigorous in depth credit
evaluation of the money market and
debt instruments proposed to be
invested in. The credit evaluation will
essentially be a bottom up
approach and include a study of the
operating environment of the issuer,
the past track record as well as the
future prospects of the issuer and the
short term / long term financial
health of the issuer.
Axis
Overnight
Fund
Instruments Indicative Allocation
(% of net assets)
Risk Profile
Minimum Maximu
m
High/
Medium/
Low
Overnight
securities
*@
0% 100% Low
Investment Objective
The investment objective of the
Scheme is to provide reasonable
returns commensurate with very low
interest rate risk and providing a high
level of liquidity, through investments
made primarily in overnight securities
having maturity/residual maturity of 1
An open
ended debt
scheme
investing in
instruments
with a
maturity of up
to 1 business
day.
3,889.92 6,060
30 Axis Liquid Fund
business day.
Investment Strategy:
The investment objective of the
Scheme is to generate returns by
investing in debt and money market
instruments with overnight maturity.
The total assets of the Scheme will be
invested in debt securities and
money market instruments maturing
on or before next Business Day. In
case of securities with put and call
options (daily or otherwise) the
residual maturity (deemed or actual)
shall be on or before the next
Business Day. Investments under the
Scheme would be made
predominantly in Tri Party Repos,
overnight reverse repos and fixed
income securities/instruments with a
maturity of 1 business day.
The Scheme may also invest in units
of Overnight Schemes of other
mutual funds.
Axis Money
Market
Fund
Instruments Indicative Allocation
(% of net assets)
Risk Profile
Minimum Maximu
m
High/
Medium/
Low
Money
Market
Instruments
0% 100% Low
Investment Objective
To generate regular income through
investment in a portfolio comprising
of money market instruments.
Investment Strategy:
The net assets of the scheme will be
invested in money market
instruments. The scheme will seek to
optimize the risk return proposition for
The Scheme
invests in
instruments
with a
maturity of
upto 1 year.
1,824.77 3,144
31 Axis Liquid Fund
the benefit of investors.
The investment process will focus on
macro-economic research, credit
risk and liquidity management. The
scheme will maintain a judicious mix
of short term and medium term
instruments based on the mandates
of the scheme. As part of credit risk
assessment, the scheme will also
apply its credit evaluation process
besides taking guidance from ratings
of rating agencies. In order to
maintain liquidity, the scheme will
maintain a reasonable proportion of
the Scheme's investments in
relatively liquid investments.
32 Axis Liquid Fund
D. WHERE WILL THE SCHEME INVEST?
The corpus of the Scheme will be invested in money market & debt instruments with
maturity/weighted average maturity/residual maturity not greater than 91 days which will
include but not limited to:
Debt Instruments & Money Market Instruments:
Certificate of Deposit (CD)
Certificate of Deposit is a negotiable money market instrument issued by scheduled
commercial banks and select all-India Financial Institutions that have been permitted by
the RBI to raise short term resources. The maturity period of CDs issued by the Banks is
between 7 days to one year, whereas, in case of FIs, maturity is one year to 3 years from the
date of issue.
Commercial Paper (CP)
Commercial Paper is an unsecured negotiable money market instrument issued in the form
of a promissory note, generally issued by the corporates, primary dealers and all India
Financial Institutions as an alternative source of short term borrowings. CP is traded in
secondary market and can be freely bought and sold before maturity.
Treasury Bill (T-Bills)
Treasury Bills are issued by the Government of India to meet their short term borrowing
requirements. T-Bills are issued for maturities of 14 days, 91 days, 182 days and 364 days.
The Scheme may also invest in Cash Management Bill (CMB) issued by the Government of
India to meet their short term borrowing requirements. CMB are generally issued for
maturities of less than 91 days.
Commercial Usance Bills
Bill (bills of exchange/promissory notes of public sector and private sector corporate
entities) Rediscounting, usance bills and commercial bills.
Repo
Repo (Repurchase Agreement) or Reverse Repo is a transaction in which two parties agree
to sell and purchase the same security with an agreement to purchase or sell the same
security at a mutually decided future date and price. The transaction results in
collateralized borrowing or lending of funds. Presently in India, corporate debt securities,
Government Securities, State Government Securities and T-Bills are eligible for Repo/
Reverse Repo.
"Tri-party repo" means a repo contract where a third entity (apart from the borrower and
lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the
repo to facilitate services like collateral selection, payment and settlement, custody and
management during the life of the transaction.
The Scheme may undertake repo transactions in corporate debt securities in accordance
with the directions issued by RBI and SEBI from time to time. Such investment shall be made
subject to the guidelines which may be prescribed by the Board of Directors of the Asset
Management Company and Trustee Company.
Securities created and issued by the Central and State Governments as may be permitted
by RBI, securities guaranteed by the Central and State Governments (including but not
limited to coupon bearing bonds, zero coupon bonds and treasury bills). State Government
securities (popularly known as State Development Loans or SDLs) are issued by the
respective State Government in co-ordination with the RBI.
Non convertible Debentures and Bonds
Non convertible debentures as well as bonds are securities issued by companies /
institutions promoted / owned by the Central or State Governments and statutory bodies
which may or may not carry a Central/State Government guarantee, Public and private
33 Axis Liquid Fund
sector banks, all India Financial Institutions and Private Sector Companies. These instruments
may have fixed or floating rate coupon. These instruments may be secured or unsecured
against the assets of the Company and generally issued to meet the short term and long
term fund requirements.
The Scheme may also invest in the non-convertible part of convertible debt securities.
Securitized Assets
Securitization is a structured finance process which involves pooling and repackaging of
cashflow producing financial assets into securities that are then sold to investors. They are
termed as Asset Backed Securities (“ABS”) or Mortgage Backed Securities (“MBS”). ABS are
backed by other assets such as credit card, automobile or consumer loan receivables,
retail installment loans or participations in pools of leases. Credit support for these securities
may be based on the underlying assets and/or provided through credit enhancements by
a third party. MBS is an asset backed security whose cash flows are backed by the principal
and interest payments of a set of mortgage loans. Such Mortgage could be either
residential or commercial properties. ABS/MBS instrument reflect the undivided interest in
the underlying assets and do not represent the obligation of the issuer of ABS/MBS or the
originator of underlying receivables. Securitization often utilizes the services of a special
purpose vehicle.
Pass through Certificate (PTC)
Pay through or other Participation Certificates) represents beneficial interest in an
underlying pool of cash flows. These cash flows represent dues against single or multiple
loans originated by the sellers of these loans. These loans are given by banks or financial
institutions to corporates. PTCs may be backed, but not exclusively, by receivables of
personal loans, car loans, two wheeler loans and other assets subject to applicable
regulations.
The following are certain additional disclosures w.r.t. investment in securitized debt:
1. How the risk profile of securitized debt fits into the risk appetite of the Scheme
Securitized debt is a form of conversion of normally non-tradable loans to transferable
securities. This is done by assigning the loans to a special purpose vehicle (a trust), which in
turn issues Pass-Through-Certificates (PTCs). These PTCs are transferable securities with fixed
income characteristics. The risk of investing in securitized debt is similar to investing in debt
securities. However it differs in two respects.
Typically the liquidity of securitized debt is less than similar debt securities. For certain types
of securitized debt (backed by mortgages, personal loans, credit card debt, etc.), there is
an additional pre-payment risk. Pre-payment risk refers to the possibility that loans are
repaid before they are due, which may reduce returns if the re-investment rates are lower
than initially envisaged.
Because of these additional risks, securitized debt typically offers higher yields than debt
securities of similar credit rating and maturity. If the fund manager judges that the
additional risks are suitably compensated by the higher returns, he may invest in securitized
debt up to the limits specified in the asset allocation table above.
2. Policy relating to originators based on nature of originator, track record, NPAs, losses in
earlier securitized debt, etc.
The originator is the person who has initially given the loan. The originator is also usually
responsible for servicing the loan (i.e. collecting the interest and principal payments). An
analysis of the originator is especially important in case of retail loans as this affects the
credit quality and servicing of the PTC. The key risk is that of the underlying assets and not of
the originator. For example, losses or performance of earlier issuances does not indicate
quality of current series. However such past performance may be used as a guide to
evaluate the loan standards, servicing capability and performance of the originator.
Originators may be: Banks, Non Banking Finance Companies, Housing Finance Companies,
etc. The fund manager / credit analyst evaluates originators based on the following
parameters
34 Axis Liquid Fund
Track record
Willingness to pay, through credit enhancement facilities etc.
Ability to pay
Business risk assessment, wherein following factors are considered:
- Outlook for the economy (domestic and global)
- Outlook for the industry
- Company specific factors
In addition a detailed review and assessment of rating rationale is done including
interactions with the originator as well as the credit rating agency.
The following additional evaluation parameters are used as applicable for the originator /
underlying issuer for pool loan and single loan securitization transactions:
Default track record/ frequent alteration of redemption conditions / covenants
High leverage ratios of the ultimate borrower (for single-sell downs) – both on a
standalone basis as well on a consolidated level/ group level
Higher proportion of reschedulement of underlying assets of the pool or loan, as the
case may be
Higher proportion of overdue assets of the pool or the underlying loan, as the case may
be
Poor reputation in market
Insufficient track record of servicing of the pool or the loan, as the case may be.
3. Risk mitigation strategies for investments with each kind of originator
An analysis of the originator is especially important in case of retail loans as the size and
reach affects the credit quality and servicing of the PTC. In addition, the quality of the
collection process, infrastructure and follow-up mechanism; quality of MIS; and credit
enhancement mechanism are key risk mitigants for the better originators / servicers.
In case of securitization involving single loans or a small pool of loans, the credit risk of the
underlying borrower is analyzed. In case of diversified pools of loans, the overall
characteristic of the loans is analyzed to determine the credit risk. The credit analyst looks at
ageing (i.e. how long the loan has been with the originator before securitization) as one
way of evaluating the performance potential of the PTC. Securitization transactions may
include some risk mitigants (to reduce credit risk). These may include interest subvention
(difference in interest rates on the underlying loans and the PTC serving as margin against
defaults), overcollateralization (issue of PTCs of lesser value than the underlying loans, thus
even if some loans default, the PTC continues to remain protected), presence of an equity
/ subordinate tranche (issue of PTCs of differing seniority when it comes to repayment - the
senior tranches get paid before the junior tranche) and / or guarantees.
4. The level of diversification with respect to the underlying assets, and risk mitigation
measures for less diversified investments
In case of securitization involving single loans or a small pool of loans, the credit risk of the
borrower is analyzed. In case of diversified pools of loans, the overall characteristic of the
loans is analyzed to determine the credit risk.
The credit analyst looks at ageing (i.e. how long the loan has been with the originator
before securitization) as one way of judging the performance potential of the PTC.
Additional risk mitigants may include interest subvention, over collateralization, presence of
an equity / subordinate tranche and / or guarantees. The credit analyst also uses analyses
by credit rating agencies on the risk profile of the securitized debt.
Currently, the following parameters are used while evaluating investment decision relating
to a pool securitization transaction. The Investment Review Committee may revise the
parameters from time to time.
Characteristics/Typ
e of Pool
Mort
gage
Loan
Commercial
Vehicle and
Construction
Equipment
CAR 2
whee
lers
Micro
Financ
e Pools
*
Perso
nal
Loans
*
Single
Sell
Downs
Others
35 Axis Liquid Fund
Approximate
Average maturity
(in Months)
Up to
10
years
Up to 3 years Up to
3
years
Up to
3
years
NA NA Refer
Note 1
Refer
Note 2
Collateral margin
(including cash,
guarantees, excess
interest spread,
subordinate
tranche)
>10% >10% >10% >10% NA NA “ “
Average Loan to
Value Ratio
<90% <80% <80% <80% NA NA “ “
Average
seasoning of the
Pool
>3
mont
hs
>3 months >3
mont
hs
>3
mont
hs
NA NA “ “
Maximum single
exposure range
<1% <1% <1% <1% NA NA “ “
Average single
exposure range %
<1% <1% <1% <1% NA NA “ “
* Currently, the Schemes will not invest in these types of securitized debt
Note 1: In case of securitization involving single loans or a small pool of loans, the credit risk
of the borrower is analyzed. The investment limits applicable to the underlying borrower are
applied to the single loan sell-down.
Note 2: Other investments will be decided on a case-to-case basis
The credit analyst may consider the following risk mitigating measures in his analysis of the
securitized debt:
Size of the loan
Average original maturity of the pool
Loan to Value Ratio
Average seasoning of the pool
Default rate distribution
Geographical Distribution
Credit enhancement facility
Liquid facility
Structure of the pool
5. Minimum retention period of the debt by originator prior to securitization
Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the
"true sale" criteria including credit enhancement and liquidity enhancements. In addition,
RBI has proposed minimum holding period of between nine and twelve months for assets
before they can be securitized. The minimum holding period depends on the tenor of the
securitization transaction. The Fund will invest in securitized debts that are compliant with
the laws and regulations.
6. Minimum retention percentage by originator of debts to be securitized
Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the
"true sale" criteria including credit enhancement and liquidity enhancements, including
maximum exposure by the originator in the PTCs. In addition, RBI has proposed minimum
retention requirement of between five and ten percent of the book value of the loans by
the originator. The minimum retention requirement depends on the tenor and structure of
the securitization transaction. The Fund will invest in securitized debts that are compliant
with the laws and regulations.
7. The mechanism to tackle conflict of interest when the mutual fund invests in securitized
debt of an originator and the originator in turn makes investments in that particular
scheme of the fund
The key risk is securitized debt relates to the underlying borrowers and not the originator. In
a securitization transaction, the originator is the seller of the debt(s) and the fund is the
buyer. However, the originator is also usually responsible for servicing the loan (i.e.
collecting the interest and principal payments). As the originators may also invest in the
36 Axis Liquid Fund
scheme, the fund manager shall ensure that the investment decision is based on
parameters as set by the Investment Review Committee (IRC) of the Asset Management
Company and IRC shall review the same at regular interval.
8. The resources and mechanism of individual risk assessment with the AMC for monitoring
investment in securitized debt
The fund management team including the credit analyst has the experience to analyze
securitized debt. In addition, credit research agencies provide analysis of individual
instruments and pools. On an on-going basis (typically monthly) the servicer provides reports
regarding the performance of the pool. These reports would form the base for ongoing
evaluation where applicable. In addition, rating reports indicating rating changes would be
monitored for changes in rating agency opinion of the credit risk.
Debt derivative instruments:
Interest Rate Swap - An Interest Rate Swap (“IRS”) is a financial contract between two
parties exchanging or swapping a stream of interest payments for a “notional principal”
amount on multiple occasions during a specified period. Such contracts generally involve
exchange of a “fixed to floating” or “floating to fixed” rate of interest. Accordingly, on
each payment date that occurs during the swap period, cash payments based on fixed/
floating and floating rates are made by the parties to one another.
Forward Rate Agreement - A Forward Rate Agreement (“FRA”) is a financial contract
between two parties to exchange interest payments for a ‘notional principal’ amount on
settlement date, for a specified period from start date to maturity date. Accordingly, on the
settlement date, cash payments based on contract (fixed) and the settlement rate, are
made by the parties to one another. The settlement rate is the agreed bench-mark/
reference rate prevailing on the settlement date.
Interest Rate Futures:
A futures contract is a standardized, legally binding agreement to buy or sell a commodity
or a financial instrument in a designated future month at a market determined price (the
futures price) by the buyer and seller. The contracts are traded on a futures exchange. An
Interest Rate Future is a futures contract with an interest bearing instrument as the
underlying asset.
Characteristics of Interest Rate Futures
1. Obligation to buy or sell a bond at a future date
2. Standardized contract.
3. Exchange traded
4. Physical settlement
5. Daily mark to market
Foreign Securities
The Scheme may also invest in suitable investment avenues in Foreign Securities in overseas
financial markets for the purpose of diversification, commensurate with the Scheme
objectives and subject to necessary stipulations by SEBI / RBI. Towards this end, the Mutual
Fund may also appoint overseas investment advisors and other service providers, as and
when permissible under the regulations.
The Scheme may, with the approval of SEBI / RBI invest in:
Initial and follow on public offerings for listing at recognized stock exchanges overseas
Foreign debt securities in the countries with fully convertible currencies, short term as
well as long term debt instruments with rating not below investment grade by
accredited/registered credit rating agencies
Money Market Instruments rated not below investment grade
Repos in the form of investment, where the counterparty is rated not below investment
grade, repos shall not however, involve any borrowing of funds by the mutual funds
Government Securities where the countries are rated not below investment grade
Derivatives traded on recognized stock exchanges overseas only for hedging and
portfolio balancing with underlying as securities
37 Axis Liquid Fund
Units/securities issued by overseas mutual funds or unit trusts registered with overseas
regulators and investing in (a) aforesaid securities, or (b) unlisted overseas securities (not
exceeding 10% of their net assets).
Note: The Scheme will not invest in foreign securitized debt.
As per SEBI circular no. SEBI/IMD/CIR No.7/104753/07 dated September 26, 2007 read with
SEBI circular SEBI/HO/IMD/DF3/CIR/P/2020/225 dated November 5, 2020, mutual funds can
make overseas investments subject to a maximum of US $600 million or such limits as may
be prescribed by SEBI from time to time. Subject to the approval of RBI / SEBI, where
required and conditions as may be prescribed by them, the Mutual Fund may open one or
more foreign currency accounts abroad either directly, or through the custodian/sub-
custodian, to facilitate investments and to enter into/deal in forward currency contracts,
currency futures, interest rate futures / swaps, currency options for the purpose of hedging
the risks of assets of a portfolio or for such purposes as maybe permitted from time to time.
However, the use of such instruments shall be as permitted from time to time. All the
requirement of the SEBI circular dated September 26, 2007, would be adhered to by the
AMC for investment in foreign securities.
Limits for investment in overseas securities: An investment headroom of 20% of the average
AUM in overseas securities / overseas ETFs of the previous three calendar months would be
available to the Mutual Fund for that month to invest in overseas securities / overseas ETFs
subject to maximum limits specified in SEBI circulars.
Units of Mutual Fund schemes
The Scheme may invest in other schemes managed by the AMC or in the schemes of any
other mutual funds in conformity with the investment objective of the Scheme and in terms
of the prevailing SEBI (MF) Regulations.
The securities / instruments mentioned above and such other securities the Scheme is
permitted to invest in could be listed, unlisted, privately placed, secured, unsecured, rated
or unrated and of any maturity.
The securities may be acquired through initial public offering (IPOs), secondary market,
private placement, rights offers, negotiated deals, etc. Further investments in debentures,
bonds and other fixed income securities will be in instruments which have been assigned
investment grade rating by the Credit Rating Agency.
Investment in unrated debt instruments shall be subject to complying with the norms as
specified by Board from time to time.
For applicable regulatory investment limits please refer paragraph "Investment Restrictions”.
Details of various derivative strategies/examples of use of derivatives have been provided
under the section “Derivatives Strategy”.
The Fund Manager reserves the right to invest in such securities as maybe permitted from
time to time and which are in line with the investment objectives of the Scheme.
E. WHAT ARE THE INVESTMENT STRATEGIES?
The Fund shall be managed according to the investment objective - to generate
reasonable returns commensurate with low risk. As this Scheme is positioned at the lowest
level of risk-return matrix, it is usually aimed to meet the needs of the Investors who want to
deploy their funds for a short period of time.
The composition of Indian debt market (both primary and secondary) at the front end of
the yield curve is dominated by money market instruments. Accordingly the Scheme will
invest predominantly in money market securities with some tactical allocation towards
other debt securities to enhance the portfolio return. The portfolio will be structured to
incorporate asset-liability management based on seasonal/historic trends of liabilities.
Given the usually observed nature of the profile of liabilities, the fund shall seek to maintain
high liquidity with the use of cash/cash equivalent assets.
38 Axis Liquid Fund
As yield curve has been observed to be flat (overnight to 3 months) during most of the
times, attempt will be made to space out the assets uniformly across the maturity buckets.
However any irregularity in the shape of the curve (steep/inverted) will be played out in the
portfolio construction after analysing the macro-economic environment including future
course of system liquidity, interest rates and inflation along with other considerations in the
economy and markets.
The investment team of the AMC will carry out rigorous in depth credit evaluation of the
money market and debt instruments proposed to be invested in. The credit evaluation will
essentially be a bottom up approach and include a study of the operating environment of
the issuer, the past track record as well as the future prospects of the issuer and the short
term / long term financial health of the issuer.
Derivatives Strategy:
The Scheme may use Derivative instruments like interest rate swaps like Overnight Indexed
Swaps (“OIS”), forward rate agreements, interest rate futures or such other Derivative
instruments as may be permitted under the applicable regulations. Derivatives will be used
for the purpose of hedging, and portfolio balancing or such other purpose as may be
permitted under the regulations and guidelines from time to time.
The Scheme will be allowed to take exposure in interest rate swaps only on a non-
leveraged basis. A swap will be undertaken only if there is an underlying asset in the
portfolio. In terms of circular no. MFD.BC.191/07.01.279/1999-2000 and
MPD.BC.187/07.01.279/1999- 2000 dated November 1, 1999 and July 7, 1999 respectively
issued by RBI permitting participation by Mutual Funds in interest rate swaps and forward
rate agreements, the Scheme will use Derivative instruments for the purpose of hedging
and portfolio balancing. The Scheme may also use derivatives for such purposes as maybe
permitted from time to time. Further, the guidelines issued by RBI from time to time for
forward rate agreements and interest rate swaps and other derivative products would be
adhered to by the Mutual Fund.
IRS and FRA do also have inherent credit and settlement risks. However, these risks are
substantially reduced as they are limited to the interest streams and not the notional
principal amounts.
Investments in Derivatives will be in accordance with the extant Regulations / guidelines.
Presently Derivatives shall be used for hedging and / or portfolio balancing purposes, as
permitted under the Regulations. The circumstances under which such transactions would
be entered into would be when, for example using the IRS route it is possible to generate
better returns / meet the objective of the Scheme at a lower cost. e.g. if buying a 2 Yr Mibor
based instrument and receiving the 2 Yr swap rate yields better return than the 2 Yr AAA
corporate, the Scheme would endeavor to do that. Alternatively, the Scheme would also
look to hedge existing fixed rate positions if the view on interest rates is that it would likely
rise in the future.
The following information provides a basic idea as to the nature of the Derivative
instruments proposed to be used by the Fund and the benefits and risks attached therewith.
Please note that the examples have been given for illustration purposes only.
Using Overnight Indexed Swaps
In a rising interest rate scenario, the Scheme may enhance returns for the Investor by
hedging the risk on its fixed interest paying assets by entering into an OIS contract where
the Scheme agrees to pay a fixed interest rate on a specified notional amount, for a pre
determined tenor and receives floating interest rate payments on the same notional
amount. The fixed returns from the Scheme assets and the fixed interest payments to be
made by the Scheme on account of the OIS transaction offset each other and the Scheme
benefits on the floating interest payments that it receives. The Scheme may enter into an
opposite position in case of a falling interest rate scenario, i.e. to hedge the floating rate
assets in its portfolio the Scheme enters into an OIS transaction wherein it receives a fixed
interest rate on a specified notional amount for a specified time period and pays a floating
interest rate on the same notional amount. The floating interest payments that the Scheme
39 Axis Liquid Fund
receives on its floating rate securities and the floating interest payments that the Scheme
has to pay on account of the OIS transaction offset each other and the Scheme benefits
on the fixed interest payments that it receives in such a scenario.
Swap
Assume that the Scheme has a Rs. 20 crore floating rate investment linked to MIBOR
(Mumbai Inter Bank Offered Rate). Hence, the Scheme is currently running an interest rate
risk and stands to lose if the interest rate moves down. To hedge this interest rate risk, the
Scheme can enter into a 6 month MIBOR swap. Through this swap, the Scheme will receive
a fixed predetermined rate (assume 12%) and pays the “benchmark rate” (MIBOR), which is
fixed by the NSE (“National Stock Exchange of India Ltd.”) or any other agency such as
Reuters. This swap would effectively lock-in the rate of 12% for the next 6 months, eliminating
the daily interest rate risk. This transaction is usually routed through an intermediary who runs
a book and matches deals between various counterparties. The steps will be as follows:
Assuming the swap is for Rs. 20 Crores for June 1, 2009 to December 1, 2009. The Scheme is
a fixed rate receiver at 12% and the counterparty is a floating rate receiver at the overnight
rate on a compounded basis (say NSE MIBOR).
On June 1, 2009 the Scheme and the counterparty will exchange only a contract of having
entered this swap. This documentation would be as per International Swap Dealers
Association (“ISDA”) norms.
On a daily basis, the benchmark rate fixed by NSE will be tracked by them.
On December 1, 2009 they will calculate the following:
The Scheme is entitled to receive interest on Rs. 20 Crores at 12% for 184 days i.e. Rs. 1.21
Crores, (this amount is known at the time the swap was concluded) and will pay the
compounded benchmark rate.
The counterparty is entitled to receive daily compounded call rate for 184 days & pay
12% fixed.
On December 1, 2009, if the total interest on the daily overnight compounded
benchmark rate is higher than Rs. 1.21 Crores, the Scheme will pay the difference to the
counterparty. If the daily compounded benchmark rate is lower, then the counterparty
will pay the Scheme the difference.
Effectively the Scheme earns interest at the rate of 12% p.a. for six months without
lending money for 6 months fixed, while the counterparty pays interest @ 12% p.a. for 6
months on Rs. 20 Crores, without borrowing for 6 months fixed.
The above example illustrates the use of Derivatives for hedging and optimizing the
investment portfolio. Swaps have their own drawbacks like credit risk, settlement risk.
However, these risks are substantially reduced as the amount involved is interest streams
and not principal.
Forward Rate Agreement
Assume that on June 30, 2009, the 30 day commercial paper (CP) rate is 4% and the
Scheme has an investment in a CP of face value Rs. 50 Crores, which is going to mature on
July 31, 2009. If the interest rates are likely to remain stable or decline after July 31, 2009,
and if the fund manager, who wants to re-deploy the maturity proceeds for 1 more month
does not want to take the risk of interest rates going down, he can then enter into a
following Forward Rate Agreement (FRA) say as on June 30, 2009:
He can receive 1 X 2 FRA on June 30, 2009 at 4.00% (FRA rate for 1 months lending in 1
months time) on the notional amount of Rs. 50 Crores, with a reference rate of 30 day CP
benchmark. If the CP benchmark on the settlement date i.e. July 30, 2009 falls to 3.75%,
then the Scheme receives the difference 4.00 – 3.75 i.e. 25 basis points on the notional
amount Rs. 50 Crores.
Interest Rate Futures
Assume that the Fund holds an Indian ten year benchmark and the fund manager has a
view that the yields will go up in the near future leading to decrease in value of the
investment and subsequent decrease in Net Asset Value (NAV) of the fund. The fund house
40 Axis Liquid Fund
decides to use Interest Rate Futures to mitigate the risk of decline of Net Asset Value (NAV)
of the fund.
12th October 2009
The benchmark ten year paper 6.88 2009, is trading at INR 98.00 at a yield of 7.19%.
December 2009 futures contract on the ten year notional 7% coupon bearing
Government paper is trading at a yield of 7.29% at a price of INR 98.50.
The mutual fund decides to hedge the exposure by taking a short position in December
2009 interest rate futures contract.
25th November 2009
As expected by the fund manager the yield of the benchmark ten year paper has
increased to 8% and the price has decreased to 92.70.
The December 2009 futures contract is trading at a price of INR 93.17 indicating a yield
of 8.05%
The mutual fund unwinds the short position by buying the December 2009 futures
contract. The transaction results in profit from the futures position, against the
corresponding loss from the Government of India security position.
Certain risks are inherent to Derivative strategies viz. lack of opportunities, inability of
Derivatives to correlate perfectly with the underlying and execution risks, whereby the rate
seen on the screen may not be the rate at which the transaction is executed. For details of
risk factors relating to use of Derivatives, the investors are advised to refer to Scheme
Specific Risk Factors.
Portfolio Turnover:
The Scheme being an open-ended Scheme, it is expected that there would be a number
of Subscriptions and Redemptions on a daily basis. Further, in the debt market, trading
opportunities may arise due to changes in system liquidity, interest rate policy announced
by RBI, shifts in the yield curve, credit rating changes or any other factors. In the opinion of
the fund manager these opportunities can be played out to enhance the total return of the
portfolio, which will result in increase in portfolio turnover. There may be an increase in
transaction cost such as brokerage paid, if trading is done frequently. However, the cost
would be negligible as compared to the total expenses of the Scheme. Frequent trading
may increase the profits which will offset the increase in costs. The fund manager will
endeavour to optimize portfolio turnover to maximize gains and minimize risks keeping in
mind the cost associated with it. However, it is difficult to estimate with reasonable measure
accuracy, the likely turnover in the portfolio of the Scheme. The Scheme has no specific
target relating to portfolio turnover.
Investment in overseas financial assets (foreign fixed income securities):
RBI vide its letter no. EC.CO.OID.MF/ 19.19.463/2001-2002 dated May 31, 2002 has given
approval to mutual funds to invest in such securities subject to the conditions stated therein.
SEBI through its Circular dated September 26, 2007 read with circular dated November 5,
2020 & such other circulars as issued by SEBI from time to time has permitted Mutual Funds
to invest in Foreign Securities including foreign debt securities within the overall limit of US$ 7
billion, subject to a maximum of US$ 600 million per Mutual Fund. Further, the Mutual Funds
can also invest in Exchange Traded Funds within an overall limit of US$ I billion, subject to a
maximum of US$ 200mn per Mutual Fund.
It is the Investment Manager’s belief that overseas securities offer new investment and
portfolio diversification opportunities into multi-market and multi-currency products.
However, such investments also entail additional risks. Such investment opportunities may
be pursued by the Investment Manager provided they are considered appropriate in terms
of the overall investment objectives of the Scheme. Since the Scheme would invest only
partially in overseas securities, there may not be readily available and widely accepted
benchmarks to measure the performance of the Scheme. To manage risks associated with
foreign currency and interest rate exposure, the Fund may use Derivatives for efficient
portfolio management and hedging as maybe permitted from time to time and in
accordance with conditions as may be stipulated by SEBI/RBI from time to time.
41 Axis Liquid Fund
Offshore investments will be made subject to any/all approvals/ conditions thereof as may
be stipulated by SEBI/ RBI/ other Regulatory Agency. The Fund may, where necessary,
appoint other intermediaries of repute as advisors, sub-custodians, etc. for managing and
administering such investments. The appointment of such intermediaries shall be in
accordance with the applicable requirements of SEBI and within the permissible ceilings of
expenses. The fees and expenses would illustratively include, besides the investment
management fees, custody fees and costs, fees of appointed advisors and sub-managers,
transaction costs, and overseas regulatory costs.
Under normal circumstances, the Scheme may invest maximum 50% of its net assets in
foreign securities. However, the AMC with a view to protecting the interests of investors may
alter the exposure in Foreign Securities as deemed fit from time to time.
Debt and Money Markets in India
The Indian debt market is today one of the largest in Asia and includes securities issued by
the Government (Central & State Governments), public sector undertakings, other
government bodies, financial institutions, banks and corporates. Government and public
sector enterprises are the predominant borrowers in the markets. The major players in the
Indian debt markets today are banks, financial institutions, mutual funds, insurance
companies, primary dealers, trusts, pension funds and corporates. The Indian debt market is
the largest segment of the Indian financial markets. The debt market comprises broadly two
segments, viz. Government Securities market or G-Sec market and corporate debt market.
The latter is further classified as market for PSU bonds and private sector bonds.
The Government Securities (G-Secs) market, consists of G-Sec outstanding of Rs.
67,44,406.238 cr as on Oct 27, 2020 (State Govt securities - Rs 34,44,380.1300 cr, (as on Jul
20) Source: CCIL), is the oldest and the largest component (50% share in market cap) of the
Indian debt market in terms of market capitalization, outstanding securities and trading
volumes. The G-Secs market plays a vital role in the Indian economy as it provides the
benchmark for determining the level of interest rates in the country through the yields on
the Government Securities which are referred to as the risk-free rate of return in any
economy. Over the years, there have been new products introduced by the RBI like zero
coupon bonds, floating rate bonds, inflation indexed bonds, etc.
The corporate bond market, in the sense of private corporate sector raising debt through
public issuance in capital market, is only an insignificant part of the Indian Debt Market. A
large part of the issuance in the non-Government debt market is currently on private
placement basis.
The money markets in India essentially consist of the call money market (i.e. market for
overnight and term money between banks and institutions), repo transactions (temporary
sale with an agreement to buy back the securities at a future date at a specified price),
commercial papers (CPs, short term unsecured promissory notes, generally issued by
corporates), certificate of deposits (CDs, issued by banks) and Treasury Bills (issued by RBI).
In a predominantly institutional market, the key money market players are banks, financial
institutions, insurance companies, mutual funds, primary dealers and corporates. In money
market, activity levels of the Government and nongovernment debt vary from time to time.
Instruments that comprise a major portion of money market activity include but not limited
to:
• Overnight Call
• Tri Party Repo
• Repo/Reverse Repo Agreement
• Treasury Bills
• Government securities with a residual maturity of < 1 year.
• Commercial Paper
• Certificate of Deposit
Apart from these, there are some other options available for short tenure investments that
include MIBOR linked debentures with periodic exit options and other such instruments.
Though not strictly classified as Money Market Instruments, PSU / DFI / Corporate paper with
a residual maturity of < 1 year, are actively traded and offer a viable investment option.
42 Axis Liquid Fund
The market has evolved in past 2-3 years in terms of risk premia attached to different class
of issuers. Bank CDs have clearly emerged as popular asset class with increased
acceptability in secondary market. PSU banks trade the tightest on the back of comfort
from majority government holding. Highly rated manufacturing companies also command
premium on account of limited supply. However, there has been increased activity in
papers issued by private/foreign banks/NBFCs/companies in high-growth sector due to
higher yields offered by them. Even though companies across these sectors might have
been rated on a same scale, the difference in the yield on the papers for similar maturities
reflects the perception of their respective credit profiles.
The following table gives approximate yields prevailing on November 13, 2020 on some of
the instruments and further illustrates this point.
Instrument Current Yield range (%) Tri-party Repo 3.05%-3.10% Repo 3.05%-3.10% 3M T-bill 3.15%-3.20% 1Y T-bill 3.40%-3.45% 10Y G-sec 5.85%-5.90% 3m PSU Bank CD 3.20%-3.25% 3m Manufacturing co. CP 3.25%-3.30% 1Y PSU Bank CD 3.75%-3.80% 1Y NBFC CP 4.10%-4.20% 1Y Manufacturing co. CP 3.95%-4.00% 5Y AAA Institutional Bond 5.40%-5.45% 10Y AAA Institutional Bond 6.50%-6.55%
Source: Bloomberg
These yields are indicative and do not indicate yields that may be obtained in future as
interest rates keep changing consequent to changes in macro-economic conditions and
RBI policy. The price and yield on various debt instruments fluctuate from time to time
depending upon the macro economic situation, inflation rate, overall liquidity position,
foreign exchange scenario etc. Also, the price and yield vary according to maturity profile,
credit risk etc.
Risk Control:
Risk is an inherent part of the investment function. Effective risk management is critical to
fund management for achieving financial soundness. Since investing requires disciplined risk
management, the AMC would incorporate adequate safeguards for controlling risks in the
portfolio construction process. The risk control process involves reducing risks through
portfolio diversification; The AMC believes that this diversification would help achieve the
desired level of consistency in returns. The AMC aims to identify securities, which offer
superior levels of yield at lower levels of risks. With the aim of controlling risks, rigorous in-
depth credit evaluation of the securities proposed to be invested in will be carried out by
the investment team of the AMC. Risk control would involve managing risk in order to keep
it in line with the investment objective of the Scheme. AMC has implemented the
Bloomberg Portfolio Order Management System as Front Office System (FOS) for this
purpose the system has incorporated all the investment restrictions as per SEBI guidelines
and “soft” warning alerts at appropriate levels for preemptive monitoring. The system
enables identifying & measuring the risk through various risk measurement tools like various
risk ratios, average duration and analyzes the same and acts in a preventive manner.
INVESTMENT BY THE AMC IN THE SCHEME
Subject to the Regulations, the AMC may invest either directly or indirectly, in the Scheme
during the Ongoing Offer Period. However, the AMC shall not charge any investment
management fee on such investment in the Scheme.
F. FUNDAMENTAL ATTRIBUTES
43 Axis Liquid Fund
Following are the Fundamental Attributes of the Scheme, in terms of Regulation 18 (15A) of
the SEBI (MF) Regulations:
(i) Type of a Scheme
(ii) Investment Objective
(iii) Terms of Issue
o Liquidity provisions such as listing, Repurchase, Redemption.
o Aggregate fees and expenses charged to the scheme.
o Any safety net or guarantee provided.
In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustee shall ensure
that no change in the fundamental attributes of the Scheme(s) and the Plan(s) / Option(s)
thereunder or the trust or fee and expenses payable or any other change which would
modify the Scheme(s) and the Plan(s) / Option(s) thereunder and affect the interests of Unit
holders is carried out unless:
A written communication about the proposed change is sent to each Unit holder and
an advertisement is given in one English daily newspaper having nationwide circulation
as well as in a newspaper published in the language of the region where the Head
Office of the Mutual Fund is situated; and
The Unit holders are given an option for a period of 30 days to exit at the prevailing Net
Asset Value without any exit load.
G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE?
NIFTY Liquid Index
The Scheme intends to invest in a portfolio of instruments which is best captured by NIFTY
Liquid Index. The constituents and weights of NIFTY Liquid Index as on April 2020 are as
under:
Constituents Weights (%)
NIFTY 1D Rate Index 30%
NIFTY 91 Day T-Bill Index 5%
NIFTY 1 Month CP Index 30%
NIFTY 2 Month CP Index 11%
NIFTY 3 Month CP Index 7%
NIFTY 1 Month CD Index 10%
NIFTY 2 Month CD Index 4%
NIFTY 3 Month CD Index 3%
Total 100
NIFTY Liquid Index is a realistic estimate to track the returns of a Liquid Fund at a particular
return and risk level and hence is used as a benchmark by most market participants.
The Trustee reserves the right to change the benchmark for the evaluation of the
performance of the Scheme from time to time, keeping in mind the investment objective of
the Scheme and the appropriateness of the benchmark, subject to the Regulations and
other prevalent guidelines.
H. WHO MANAGES THE SCHEME?
Name of
Fund
Manager
Age and
Qualification
Experience of the
Fund Manager in the
last 10 years
Names of other
schemes under his
management
Tenure as
Fund
Manager of
the Scheme
Mr. Devang
Shah
38
B. Com, ACA
Fund Manager –
Fixed Income, Axis
Asset
Management
Company Ltd.
(October 16, 2012
Axis Strategic Bond
Fund (Along with Mr.
Dhaval Patel), Axis
Short Term Fund, Axis
Gilt Fund (along with
Mr. Kaustubh Sule),
8 years
44 Axis Liquid Fund
till date)
Fund Manager,
ICICI Prudential
Asset
Management
Company Ltd.
(April 2008 –
October 2012)
Analyst, Deutsche
Asset
Management
(India) Pvt. Ltd.
(2006-2008)
Assistant Manager,
Pricewaterhouse
Coopers (2004-
2006)
Axis Dynamic Bond
Fund (Along with Mr.
R. Sivakumar), Axis
Liquid Fund (Along
with Mr. Aditya
Pagaria), Axis
Arbitrage Fund
(Along with Mr.
Viresh Joshi), Axis
Gold Fund, Axis Gold
ETF, Axis Treasury
Advantage Fund
(Along with Mr.
Aditya Pagaria), Axis
Regular Saver Fund
(Along with Mr.
Ashish Naik and Mr.
Sachin Jain), Axis
Credit Risk Fund
(along with Mr.
Dhaval Patel), Axis
Fixed Term Plans, Axis
Corporate Debt
Fund and Axis Money
Market Fund (along
with Mr. Aditya
Pagaria).
Mr. Aditya
Pagaria
36 years,
Bachelor in
Management
Studies, Post
Graduate
Diploma in
Business
Management
Axis Asset
Management
Company Ltd. (Fund
Manager - Fixed
Income) - (August 1,
2016 till date)
ICICI Prudential Asset
Management
Company Ltd. (Fund
Manager - Fixed
Income) - (Nov. 30,
2011 - July 26, 2016)
(Operations) -
(May 03, 2007 -
Nov. 29, 2011)
Axis Treasury
Advantage Fund
(along with Mr.
Devang Shah), Axis
Liquid Fund (along
with Mr. Devang
Shah), Axis Equity
Advantage Fund -
Series 1 and Series 2
(along with Mr.
Shreyash Devalkar),
Axis Banking & PSU
Debt Fund, Axis Ultra
Short Term Fund
(along with Mr.
Sachin Jain), Axis
Overnight Fund and
Axis Money Market
Fund (along with Mr.
Devang Shah).
4 years
Presently, the Trustee/AMC has not designated a dedicated Fund Manager for investment
in Foreign Securities. However, it shall be ensured that there is a dedicated fund manager
for investment in foreign securities as and when the fund makes investment in foreign
securities.
I. WHAT ARE THE INVESTMENT RESTRICTIONS?
Pursuant to Regulations, specifically the Seventh Schedule and amendments thereto, the
following investment restrictions are currently applicable to the Scheme:
1. The Scheme shall not invest more than 10% of its NAV in debt instruments comprising
money market instruments and non-money market instruments issued by a single issuer,
which are rated not below investment grade by a credit rating agency authorized to
carry out such activity under the SEBI Act, 1992. Such investment limit may be extended
45 Axis Liquid Fund
to 12% of the NAV of the Scheme with the prior approval of the Board of Trustee and
the Board of Directors of AMC.
Provided that such limit shall not be applicable for investment in Government and
Securities treasury bills and collateralized borrowing and lending obligations.
Provided further that investments within such limit can be made in the mortgaged
backed securitised debt, which are rated not below investment grade by a credit
rating agency, registered with SEBI.
2. The Scheme shall not invest in unlisted debt instruments including commercial papers,
except Government Securities, money market instruments and derivative products such
as Interest Rate Swaps, Interest Rate Futures, etc. which are used by mutual fund for
hedging.
Provided that the Scheme may invest in unlisted non-convertible debentures up to a
maximum of 10% of the debt portfolio of the Scheme subject to such conditions as may
be specified by the Board from time to time:
Provided further that the Scheme shall comply with the norms under this clause within
the time and in the manner as may be specified by the Board:
Provided further that the norms for investments by the Scheme in unrated debt
instruments shall be as specified by the Board from time to time.
Further the investments by the Scheme shall be in compliance with SEBI circular no.
SEBI/HO/IMD/DF2/CIR/P/2019/104 dated October 1, 2019 and as amended by SEBI from
time to time.
3. The Scheme shall not invest in debt securities having Structured Obligations (SO rating)
and / or credit enhancements (CE rating). However, debt securities with government
guarantee shall be excluded from such restriction.
4. The Scheme may invest in other schemes of the Mutual Fund or any other mutual fund
(restricted to only debt and liquid funds) without charging any fees, provided the
aggregate inter-scheme investment made by all the schemes under the same
management or in schemes under the management of any other asset management
company shall not exceed 5% of the Net Asset Value of the Mutual Fund.
5. The Scheme shall not make any investment in :
a) any unlisted security of an associate or group company of the sponsor; or
b) any security issued by way of private placement by an associate or group
company of the sponsor; or
c) the listed securities of group companies of the sponsor which is in excess of 25% of
the net assets.
6. The Mutual Fund shall get the securities purchased transferred in the name of the Fund
on account of the concerned Scheme, wherever investments are intended to be of a
long-term nature.
7. Transfer of investments from one scheme to another scheme in the same Mutual Fund is
permitted provided:
a) such transfers are done at the prevailing market price for quoted instruments on
spot basis (spot basis shall have the same meaning as specified by a Stock
Exchange for spot transactions); and
b) the securities so transferred shall be in conformity with the investment objective of
the Scheme to which such transfer has been made.
8. The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all
cases of purchases, take delivery of relevant securities and in all cases of sale, deliver
the securities:
Provided that the Mutual Fund may engage in Short Selling of securities in accordance
with the framework relating to Short Selling and securities lending and borrowing
specified by SEBI.
Provided further that the Mutual Fund may enter into Derivatives transactions in a
recognized stock exchange, subject to the framework specified by SEBI.
46 Axis Liquid Fund
Provided further that sale of government security already contracted for purchase shall
be permitted in accordance with the guidelines issued by the RBI in this regard.
The Scheme shall not make any investment in any fund of funds scheme.
9. The Scheme shall hold at least 20% of its net assets in liquid assets. For this purpose,
‘liquid assets’ shall include Cash, Government Securities, T-bills and Repo on
Government Securities.
In case, the exposure in such liquid assets falls below 20% of net assets of the Scheme,
the AMC shall ensure compliance with the above requirement before making any
further investments.
10. The Scheme shall not park funds pending deployment in short term deposits of
scheduled commercial banks.
11. The Scheme shall not invest in debt securities having structured obligations (SO rating)
and / or credit enhancement (CE rating). However, debt securities with government
guarantee shall be excluded from such restriction.
12. The Scheme shall not advance any loans.
13. The Scheme shall not borrow except to meet temporary liquidity needs of the Fund for
the purpose of Repurchase/Redemption of Unit or payment of interest and/or Dividend
to the Unit holder.
Provided that the Scheme shall not borrow more than 20% of the net assets of the
individual Scheme and the duration of the borrowing shall not exceed a period of 6
months.
14. Further, SEBI vide its circular no. Cir/ IMD/ DF/ 11/ 2010 dated August 18, 2010 has
prescribed the following investment restrictions w.r.t. investment in derivatives:
S. No. Particulars
1 The cumulative gross exposure through debt and derivative positions shall not
exceed 100% of the net assets of the Scheme. Cash or cash equivalents with
residual maturity of less than 91 days shall be treated as not creating any
exposure.
2 The Scheme shall not write options or purchase instruments with embedded
written options.
3 The total exposure related to option premium paid shall not exceed 20% of
the net assets of the Scheme.
4 Exposure due to hedging positions may not be included in the above
mentioned limits subject to the following:
a. Hedging positions are the derivative positions that reduce possible losses
on an existing position in securities and till the existing position remains.
b. Hedging positions cannot be taken for existing derivative positions.
Exposure due to such positions shall have to be added and treated under
limits mentioned in Point 1.
c. Any derivative instrument used to hedge has the same underlying security
as the existing position being hedged.
d. The quantity of underlying associated with the derivative position taken for
hedging purposes does not exceed the quantity of the existing position
against which hedge has been taken.
5 Exposure due to derivative positions taken for hedging purposes in excess of
the underlying position against which the hedging position has been taken,
shall be treated under the limits mentioned in point 1.
6 Each position taken in derivatives shall have an associated exposure as
defined under. Exposure is the maximum possible loss that may occur on a
position. However, certain derivative positions may theoretically have
unlimited possible loss. Exposure in derivative positions shall be computed as
follows:
Position Exposure
Long Future Futures Price * Lot Size * Number of Contracts
47 Axis Liquid Fund
Short Future Futures Price * Lot Size * Number of Contracts
Option bought Option Premium Paid * Lot Size * Number of Contracts.
7 The Scheme may enter into plain vanilla interest rate swaps for hedging
purposes. The counter party in such transactions has to be an entity
recognized as a market maker by RBI. Further, the value of the notional
principal in such cases shall not exceed the value of respective existing assets
being hedged by the Scheme. Exposure to a single counterparty in such
transactions shall not exceed 10% of the net assets of the Scheme.
15. The Scheme shall participate in repos in corporate debt securities as per the guidelines
issued by SEBI and/ or RBI from time to time and the guidelines framed by the Board of
Directors of Trustee Company and the Asset Management Company, from time to time.
At present the following conditions and norms shall apply to repo in corporate debt
securities:
(i) The gross exposure of the Scheme to repo transactions in corporate debt securities
shall not be more than 10 % of the net assets of the Scheme.
(ii) The cumulative gross exposure through repo transactions in corporate debt
securities along with equity, debt and derivatives shall not exceed 100% of the net
assets of the Scheme.
(iii) The Scheme shall participate in repo transactions only in AA and above rated
corporate debt securities
(iv) The Scheme shall borrow through repo transactions only if the tenor of the
transaction does not exceed a period of six months.
(v) The Trustee and the Asset Management Company have framed guidelines interalia
considering the following aspects:
i. Category of counterparty
ii. Credit rating of counterparty
iii. Tenor of collateral
iv. Applicable haircuts
(vi) Counterparty selection & credit rating
The counterparty must be an acceptable counterparty for debt transactions. The
Mutual Fund follows a counterparty empanelment process for fixed income
transactions and the same shall be used for selection of counterparties for
corporate bond repos. All repo transactions in corporate bonds will be governed by
a repo agreement as specified by FIMMDA and / or other specified authorities.
(vii) Collateral tenor & quality
The exposure limit/investment restrictions prescribed under the Seventh Schedule of
the Regulations and circulars issued there under (wherever applicable) shall be
applicable to repo transactions in corporate bonds. The Scheme shall further follow
guidelines framed by Trustee and the AMC from time to time.
(viii) Applicable haircuts
Currently mutual funds are permitted to carry out repo transactions in government
securities without any haircuts. The Reserve Bank of India has notified a minimum
haircut based on rating of the corporate bond and other securities. In addition, the
Fixed Income and Money Market Dealers Association (FIMMDA) would maintain a
rating-haircut matrix on an ongoing basis. The Scheme shall further follow guidelines
framed by Trustee and the AMC from time to time.
The haircuts seek to protect the lender of funds from the event of the counterparty
failing to honor the repurchase leg of the repo. In such a circumstance, the Fund
would suffer a loss if the value of the collateral depreciates by more than the
haircut. The fall in the value of the collateral could be on account of higher yields
and/ or deterioration of credit quality.
As the typical tenor of repos is short (typically overnight), the haircuts represent a
relatively high degree of safety in relation to the interest rate risk on the collateral.
The risk of collateral depreciation based on historical volatility is given in the table
below:
Bond Tenor (yrs) 1 3 5 10
Price Volatility (%) (annualized) 0.6 1.2 1.7 3.4
Repo Tenor Number of standard deviations needed to lose
48 Axis Liquid Fund
10%
1 day 258 136 94 48
7 days 98 52 36 18
In the above table, the price volatility of a 10-year bond is about 3.4% annualized.
That is a 10% price move represents nearly a 3-sigma event on an annualized basis.
For overnight tenors, this represents a 48-sigma event (for comparison a 6-sigma
event occurs about once in a million observations).
It is apparent that the haircuts stipulated by RBI are more than sufficient to mitigate
interest rate risk. Credit event risk remains (the collateral could default during the
tenor of the repo). This risk is to be mitigated by ensuring that the collateral is
acceptable from a credit point of view.
16. The total exposure in a particular sector (excluding investments in Bank CDs, CBLO,
Government Securities, T-Bills, short term deposits of scheduled commercial banks and
AAA rated securities issued by Public Financial Institutions and Public Sector Banks) shall
not exceed 20% of the net assets of the Scheme.
Provided that an additional exposure to financial services sector (over and above the
limit of 20%) not exceeding 10% of the net assets of the Scheme shall be allowed by
way of increase in exposure to Housing Finance Companies (HFCs) only;
Provided further that the additional exposure to such securities issued by HFCs are rated
AA and above and these HFCs are registered with National Housing Bank (NBH) and the
total Investment/exposure in HFCs shall not exceed 20% of the net assets of the Scheme.
Further, an additional exposure of 5% of the net assets of the Scheme shall be allowed
for investments in securitized debt instruments based on retail housing loan portfolio
and/or affordable housing loan portfolio.
17. The total exposure in a particular group (excluding investments in securities issued by
Public Sector Units, Public Financial Institutions and Public Sector Banks) shall not exceed
20% of the net assets of the Scheme. Such investment limit may be extended to 25% of
the net assets of the Scheme with the prior approval of the Board of Trustees.
For this purpose, a group means a group as defined under regulation 2 (mm) of SEBI
(MF) Regulations and shall include an entity, its subsidiaries, fellow subsidiaries, its holding
company and its associates.
Further, limit for investment in debt and money market instruments of group companies
of both the sponsor and AMC shall not exceed 10% of the net assets of the Scheme.
Such investment limit can be extended to 15% with the prior approval of the Board of
Trustees.
The Scheme will comply with the other Regulations applicable to the investments of Mutual
Funds from time to time.
All the investment restrictions will be applicable at the time of making investments.
The AMC/Trustee may alter these above stated restrictions from time to time to the extent
the Regulations change, so as to permit the Scheme to make its investments in the full
spectrum of permitted investments for mutual funds to achieve its respective investment
objective.
J. CREATION OF SEGREGATED PORTFOLIO
Creation of segregated portfolio shall be subject to guidelines specified by SEBI from time to
time and includes the following:
49 Axis Liquid Fund
In this regard, the term ‘segregated portfolio’ shall mean a portfolio comprising of debt or
money market instrument affected by a credit event, that has been segregated in a
mutual fund scheme. The term ‘main portfolio’ shall mean the scheme portfolio excluding
the segregated portfolio. The term ‘total portfolio’ shall mean the scheme portfolio
including the securities affected by the credit event.
Credit Event
A) For rated debt or money market instruments
1) Segregated portfolio may be created, in case of a credit event at issuer level i.e.
downgrade in credit rating by a SEBI registered Credit Rating Agency (CRA), as under:
a. Downgrade of a debt or money market instrument to ‘below investment grade’, or
b. Subsequent downgrades of the said instruments from ‘below investment grade’, or
c. Similar such downgrades of a loan rating
2) In case of difference in rating by multiple CRAs, the most conservative rating shall be
considered. Creation of segregated portfolio shall be based on issuer level credit events
as mentioned above and implemented at the ISIN level.
3) Creation of segregated portfolio is optional and is at the discretion of Axis Asset
Management Company Ltd. (‘Axis AMC’/‘the AMC’)
B) For unrated debt or money market instruments
Segregated portfolio of unrated debt or money market instruments may be created
only in case of actual default of either the interest or principal amount by the issuer.
Credit event in this case shall be ‘actual default’ by the issuer of such instruments
and shall be considered for creation of segregated portfolio.
Process for Creation of Segregated Portfolio
1) On the date of credit event, the AMC shall decide on creation of segregated portfolio.
Once AMC decides to segregate portfolio, it shall:
a. seek approval of trustees prior to creation of the segregated portfolio.
b. immediately issue a press release disclosing its intention to segregate such debt and
money market instrument and its impact on the investors. Axis Mutual Fund shall
disclose that the segregation shall be subject to Trustee approval. Additionally, the
said press release shall be prominently disclosed on the website of the AMC.
c. ensure that till the time the Trustee approval is received, which in no case shall
exceed 1 business day from the day of credit event, the subscription and
redemption in the Scheme shall be suspended for processing with respect to
creation of units and payment on redemptions.
2) Once Trustee approval is received by the AMC:
a. Segregated portfolio shall be effective from the day of credit event
b. AMC shall issue a press release immediately with all relevant information pertaining
to the segregated portfolio. The said information will also be submitted to SEBI.
c. An e-mail or SMS shall be sent to all unit holders of the Scheme.
d. The NAV of both segregated and main portfolios shall be disclosed from the day of
the credit event.
e. All existing investors in the Scheme as on the day of the credit event shall be allotted
equal number of units in the segregated portfolio as held in the main portfolio.
f. No redemption and subscription shall be allowed in the segregated portfolio. AMC
shall enable listing of units of segregated portfolio on the recognized stock
exchange within 10 working days of creation of segregated portfolio and also
enable transfer of such units on receipt of transfer requests
3) If the trustees do not approve the proposal to segregate portfolio, AMC will issue a press
release immediately informing investors of the same.
Valuation
Notwithstanding the decision to segregate the debt and money market instrument, the
valuation shall take into account the credit event and the portfolio shall be valued based
50 Axis Liquid Fund
on the principles of fair valuation (i.e. realizable value of the assets) in terms of the relevant
provisions of SEBI (Mutual Funds) Regulations, 1996 and circular(s) issued thereunder.
Processing of Subscription and Redemption Proceeds
All subscription and redemption requests for which NAV of the day of credit event or
subsequent day is applicable will be processed as under:
i. Upon trustees’ approval to create a segregated portfolio -
Investors redeeming their units will get redemption proceeds based on the NAV of
main portfolio and will continue to hold the units of segregated portfolio.
Investors subscribing to the Scheme will be allotted units only in the main portfolio
based on its NAV.
ii. In case trustees do not approve the proposal of segregated portfolio, subscription and
redemption applications will be processed based on the NAV of total portfolio.
Disclosure
In order to enable the existing as well as the prospective investors to take informed
decision, the following shall be adhered to:
a. A statement of holding indicating the units held by the investors in the segregated
portfolio along with the NAV of both segregated portfolio and main portfolio as on the
day of the credit event shall be communicated to the investors within 5 working days of
creation of the segregated portfolio.
b. Adequate disclosure of the segregated portfolio shall be made in all scheme related
documents, in monthly and half-yearly portfolio disclosures and in the annual report of
the mutual fund and the Scheme.
c. The Net Asset Value (NAV) of the segregated portfolio shall be declared on daily basis.
d. The information regarding number of segregated portfolios created in the Scheme shall
appear prominently under the name of the Scheme at all relevant places such as SID,
KIM-cum-Application Form, advertisement, AMC and AMFI websites, etc.
e. The Scheme performance required to be disclosed at various places shall include the
impact of creation of segregated portfolio. The Scheme performance should clearly
reflect the fall in NAV to the extent of the portfolio segregated due to the credit event
and the said fall in NAV along with recovery(ies), if any, shall be disclosed as a footnote
to the Scheme performance.
f. The disclosures at paragraph (d) and (e) above regarding the segregated portfolio shall
be carried out for a period of at least 3 years after the investments in segregated
portfolio are fully recovered/ written-off.
g. The investors of the segregated portfolio shall be duly informed of the recovery
proceedings of the investments of the segregated portfolio. Status update may be
provided to the investors at the time of recovery and also at the time of writing-off of
the segregated securities.
TER for the Segregated Portfolio
1) Axis AMC shall not charge investment and advisory fees on the segregated portfolio.
However, TER (excluding the investment and advisory fees) can be charged, on a pro-
rata basis only upon recovery of the investments in segregated portfolio.
2) The TER so levied shall not exceed the simple average of such expenses (excluding the
investment and advisory fees) charged on daily basis on the main portfolio (in % terms)
during the period for which the segregated portfolio was in existence.
3) The legal charges related to recovery of the investments of the segregated portfolio
may be charged to the segregated portfolio in proportion to the amount of recovery.
However, the same shall be within the maximum TER limit as applicable to the main
portfolio. The legal charges in excess of the TER limits, if any, shall be borne by the AMC.
4) The costs related to segregated portfolio shall in no case be charged to the main
portfolio.
Monitoring by Trustees
In order to ensure timely recovery of investments of the segregated portfolio, Trustees shall
ensure that:
a. The AMC puts in sincere efforts to recover the investments of the segregated portfolio.
b. Upon recovery of money, whether partial or full, it shall be immediately distributed to
the investors in proportion to their holding in the segregated portfolio. Any recovery of
51 Axis Liquid Fund
amount of the security in the segregated portfolio even after the write off shall be
distributed to the investors of the segregated portfolio.
c. The Trustees shall monitor the compliance of this circular and disclose in the half-yearly
trustee reports filed with SEBI, the compliance in respect of every segregated portfolio
created.
In order to avoid mis-use of segregated portfolio, Trustees shall ensure to have a mechanism
in place to negatively impact the performance incentives of Fund Managers, Chief
Investment Officers (CIOs), etc. involved in the investment process of securities under the
segregated portfolio, mirroring the existing mechanism for performance incentives of the
AMC, including claw back of such amount to the segregated portfolio of the Scheme.
Illustration of segregated portfolio
The below table shows how a rated security affected by a credit event will be segregated
and its impact on investors:
Portfolio Date July 22, 2019
Downgrade
Event Date
July 22, 2019
Mr. X is holding 1,000 units of the scheme for an amount of Rs. 11,31,993.87 (1,000 *
1,131.9939)
Portfolio before downgrade event
Security Rating Type of the
security
Quantity Market
Price Per
Unit (Rs.)
Market Value
(Rs.)
% of
Net
Assets
9.60% A Ltd. CRISIL AAA NCD 5,000 103.2232 5,16,116.00 45.59%
8.80% B Ltd. CRISIL AA+ NCD 2,000 99.4678 1,98,935.60 17.57%
9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 10.43%
7.70% D Ltd. CRISIL AA+ NCD 2,000 99.0000 1,98,000.00 17.49%
8.80% E Ltd. CRISIL AA NCD 500 101.2211 50,610.55 4.47%
Cash & cash
equivalents
50,321.20 4.45%
Net Assets 11,31,993.87 100.00%
Unit capital (no
of units)
1000.000
NAV (In Rs.) 1131.9939
Security
downgraded
7.70% D Ltd. from AA+ to D
Valuation
Marked down by
75.00% Valuation agencies shall be providing the valuation price post
consideration of standard haircut matrix.
Total Portfolio as on July 22, 2019
Security Rating
Type of the
security
Quantity
Market
Price Per
Unit (Rs.)
Market Value
(Rs.)
% of
Net
Assets
9.60% A Ltd. CRISIL AAA NCD 5,000 103.2232 5,16,116.00 52.45%
8.80% B Ltd. CRISIL AA+ NCD 2,000 99.4678 1,98,935.60 20.22%
9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 11.99%
7.70% D Ltd. CRISIL D NCD 2,000 25.0000 50,000.00 5.08%
8.80% E Ltd. CRISIL AA NCD 500 101.2211 50,610.55 5.14%
Cash & cash
equivalents 50,321.20 5.11%
Net Assets 9,83,993.87 100.00%
Unit capital (no
of units) 1000.000
NAV (In Rs.) 983.9939
Main Portfolio as on July 22, 2019
52 Axis Liquid Fund
Security Rating Type of the
security
Quantity Market
Price Per
Unit (Rs.)
Market Value
(Rs.)
% of
Net
Assets
9.60% A Ltd. CRISIL AAA NCD 5,000 103.2232 5,16,116.00 55.26%
8.80% B Ltd. CRISIL AA+ NCD 2,000 99.4678 1,98,935.60 21.30%
9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 12.64%
8.80% E Ltd. CRISIL AA NCD 500 101.2211 50,610.55 5.42%
Cash & cash
equivalents
50,321.20 5.39%
Net Assets 9,33,993.87 100.00%
Unit capital (no
of units)
1000.000
NAV (In Rs.) 933.9939
Segregated Portfolio as on July 22, 2019
Security Rating
Type of the
security
Quantity
Market
Price Per
Unit (Rs.)
Market Value
(Rs.)
% of
Net
Assets
7.70% D Ltd. CRISIL D NCD 2,000 25.0000 50,000.00 100.00%
Net Assets 50,000.00 100.00%
Unit capital (no
of units) 1000.000
NAV (In Rs.) 50.0000
0.0000
Net impact on value of holding of Mr. X after creation of segregation
portfolio
Main Portfolio
Segregated
Portfolio
Total
Value
No. of Units 1,000 1,000
NAV (in Rs.) 933.9939 50.0000
Total Value (in
Rs.) 9,33,993.87 50,000.00 9,83,993.87
K. HOW HAS THE SCHEME PERFORMED?
Performance of Axis Liquid Fund – Regular Plan – Growth Option as at October 31, 2020 is as
follows:
Period Axis Liquid Fund –
Regular Plan -
Growth Option^
NIFTY Liquid
Index
1 year returns 4.65% 4.56%
3 year returns 6.31% 6.19%
5 year returns 6.69% 6.51%
Since Inception (October 9, 2009) 7.58% 7.51%
Absolute returns for the past 5 financial years
53 Axis Liquid Fund
W.e.f. January 1, 2013 Axis Liquid Fund - Institutional Plan has been renamed as Axis Liquid
Fund. Further, w.e.f. November 29, 2019, Axis Liquid Fund has been renamed to Axis Liquid
Fund – Regular Plan.
Performance of Axis Liquid Fund – Retail Plan – Growth Option as at October 31, 2020 is as
follows:
Absolute returns for the past 5 financial years
Performance of Axis Liquid Fund - Direct Plan – Growth Option as at October 31, 2020 is as
follows:
Period Axis Liquid Fund –
Retail Plan - Growth
Option ^
NIFTY Liquid Index
1 year returns 4.18% 4.56%
3 year returns 5.77% 6.19%
5 year returns 6.14% 6.51%
Returns Since Inception (March 1, 2010) 7.21% 7.66%
Period Axis Liquid Fund –
Direct Plan - Growth
Option ^
NIFTY Liquid Index
1 year returns 4.71% 4.56%
3 year returns 6.37% 6.19%
5 year return 6.76% 6.51%
Returns Since Inception (December 31, 2012) 7.57% 7.38%
54 Axis Liquid Fund
Absolute returns for the past 5 financial years
^Past performance may or may not be sustained in future. Returns are compounded
annualized for period more than 1 year. Since inception returns are calculated on Rs. 1000
invested at inception. Calculations are based on Growth Option NAVs. Different plans have
different expense structure. Since inception returns for Retail Plan & Direct Plan are
calculated March 1, 2010 & January 1, 2013 respectively.
L. Additional Scheme Related Disclosures
a. Scheme’s portfolio holdings as on October 31, 2020:
1. Top 10 holdings by Issuer:
Name of the Issuer % of Net Assets
Government of India 49.84%
National Bank For Agriculture and Rural
Development 9.54%
Reliance Industries Limited 7.26%
Larsen & Toubro Limited 2.54%
L&T Finance Limited 2.25%
Reliance Retail Ventures Limited 1.88%
Godrej & Boyce Manufacturing Co Ltd 1.88%
National Fertilizers Limited 1.69%
IDFC First Bank Limited 1.50%
Housing Development Finance Corporation Limited 1.47%
2. Fund allocation towards various Sectors:
Sector Classification % of Net Assets
GOVERNMENT OF INDIA 49.85%
FINANCIAL SERVICES 22.85%
OIL & GAS 8.29%
CONSUMER GOODS 4.71%
FERTILISERS & PESTICIDES 2.87%
CONSTRUCTION 2.53%
CEMENT & CEMENT PRODUCTS 2.44%
OTHERS^ 2.04%
MEDIA & ENTERTAINMENT 1.89%
SERVICES 0.94%
POWER 0.75%
AUTOMOBILE 0.75%
Cash & Cash Equivalent: 0.09%
Total 100.0%
^TREPS/Mutual Fund Units/Repo
Please visit www.axismf.com to obtain Scheme’s latest monthly portfolio holding statement.
55 Axis Liquid Fund
b. Portfolio Turnover
Portfolio turnover ratio: Not applicable
c. Aggregate investment in the Scheme of certain categories of persons:
s
Sr.
No.
Category of Persons Net Asset Value of Units held as
on October 31, 2020 (in Rs.)
i AMC’s Board of Directors 4,46,82,017.99
ii Concerned scheme’s Fund Manager(s) Nil
iii Other key managerial personnel 1,53,35,109.30
Note:
1. Investment of Managing Director & Chief Executive Officer of AMC, if any, is included in
investments of “Other key managerial personnel”.
2. Investment of Fund Manager of the Scheme is not included in investments of “Other key
managerial personnel”.
56 Axis Liquid Fund
III. UNITS AND OFFER
This section provides details you need to know for investing in the Scheme.
A. NEW FUND OFFER (NFO)
New Fund Offer Period
This is the period
during which a new
Scheme sells its Unit to
the Investors.
The New Fund Offer opened on October 8, 2009 and closed on
October 8, 2009. The units under the Scheme were allotted on October
9, 2009.
New Fund Offer Price:
This is the price per Unit
that the Investors have
to pay to invest during
the NFO.
Not Applicable
Minimum Amount for
Application/Switch in
the NFO
Not Applicable
Minimum Target
amount
Not Applicable
Maximum Amount to
be raised (if any)
Not Applicable
Plans / Options offered The Scheme offers the following Plans:
1) Axis Liquid Fund – Regular Plan
2) Axis Liquid Fund – Direct Plan
Both plans will have a common portfolio.
Each Plan offers the following Options:
• Growth option
• Dividend option
Options Sub-options Frequency of
dividend
Record
date
Growth Nil NA NA
Dividend Daily (reinvestment) Daily
(every day)
Daily
Weekly (payout and
reinvestment)
Weekly Every
Monday*
Monthly (payout and
reinvestment)
Monthly 25th of the
month*
*Next Business day if such day happens to be a non-business day.
The Trustee/AMC reserves the right to change the record date from
time to time.
Note: With effect from October 1, 2012, Retail Plan has been
discontinued for fresh subscriptions received on or after October 1,
2012.
Existing investors will continue to remain invested in the Retail Plans
(including Dividend reinvestment) till the existing investments are
redeemed and no fresh subscription shall be accepted in Retail Plan.
Dividend declared under any Dividend Reinvestment option of the
Retail Plan (i.e. Discontinued Plan) of the scheme shall be reinvested in
the corresponding options under Institutional Plan (Continuing Plan) of
the scheme. Please note that for the above dividend reinvestments, the
57 Axis Liquid Fund
minimum application amount criteria for purchases/switches under the
Continuing Plan shall not apply. However, the minimum redemption
amount/units criteria under the Continuing Plan shall apply.
Investors who have invested without Distributor code and have opted
for Dividend Reinvestment facility under Continuing Plan may note that
the dividend will continue to be reinvested in the Continuing Plan only.
W.e.f. January 1, 2013, Axis Liquid Fund – Institutional Plan has been
renamed to Axis Liquid Fund. Further, w.e.f. November 29, 2019, Axis
Liquid Fund has been renamed to Axis Liquid Fund – Regular Plan.
If Dividend payable under Dividend Payout option (Weekly Option) is
equal to or less than Rs. 25,000/- then the Dividend would be
compulsorily reinvested in the option of the Scheme.
Where Dividend payable under Dividend Payout option (Monthly
Option) is equal to or less than Rs. 500/- then the Dividend would be
compulsorily reinvested in the option of the Scheme.
However, Dividend payable in the above cases under the dividend
payout option of Retail Plan would be compulsorily reinvested in the
corresponding options under Axis Liquid Fund of the scheme.
The Investors should indicate plan/option for which Subscription is made
by indicating the choice in the appropriate box provided for this
purpose in the application form. In case of valid application received
without any choice of plan/option/facility, the following default
plan/option/facility will be considered;
Default plan
Investors subscribing under Direct Plan of a Scheme will have to
indicate “Direct Plan” against the Scheme name in the application
form e.g. “Axis Liquid Fund – Direct Plan”. Investors should also indicate
“Direct” in the ARN column of the application form. The investors may
refer to the following table for applicability of Direct Plan/ Regular Plan
under different scenario :-
Scenari
o
Broker Code
mentioned by the
investor
Plan mentioned by
the investor
Default Plan to
be captured
1 Not mentioned Not mentioned Direct Plan
2 Not mentioned Direct Direct Plan
3 Not mentioned Regular Direct Plan
4 Mentioned Direct Direct Plan
5 Direct Not Mentioned Direct Plan
6 Direct Regular Direct Plan
7 Mentioned Regular Regular Plan
8 Mentioned Not Mentioned Regular Plan
In cases of wrong/ invalid/ incomplete ARN codes mentioned on the
application form, the application shall be processed under Regular
Plan. The AMC shall contact and obtain the correct ARN code within 30
calendar days of the receipt of the application form from the investor/
distributor. In case, the correct code is not received within 30 calendar
days, the AMC shall reprocess the transaction under Direct Plan from
the date of application without any exit load.
Default option
Default Option – Growth
Default dividend frequency – Daily Option
58 Axis Liquid Fund
Default between Payout & Reinvestment Option - Reinvestment
Default Redemption
Where Units under a Scheme are held under both Plans and the
redemption / Switch request pertains to the Direct Plan, the same must
clearly be mentioned on the request (along with the folio number),
failing which the request would be processed from Axis Liquid Fund
Regular Plan. However, where Units under the requested Option are
held only under one Plan, the request would be processed under such
Plan.
Growth option
Dividends will not be declared under this option. The income
attributable to Units under this option will continue to remain invested in
the scheme and will be reflected in the NAV of Units under this option.
Dividend option
Under this option, Dividends will be declared (subject to deduction of
tax at source, if any) at specified frequencies at the discretion of the
Trustee, subject to availability of distributable surplus calculated in
accordance with SEBI (MF) Regulations. On payment of Dividend, the
NAV of the Unit under Dividend option will fall to the extent of the
Dividend payout and applicable statutory levies, if any.
It must be distinctly understood that the actual declaration of Dividend
and frequency thereof is at the sole discretion of the Trustee. There is no
assurance or guarantee to the Unit holders as to the rate of Dividend
distribution nor that will the Dividend be paid regularly. The Trustee
reserves the right to declare a Dividend at any other frequency in
addition to the frequencies mentioned above.
Dividend Payout Facility
Under this facility, Dividend declared, if any, will be paid (subject to
deduction of Dividend distribution tax and statutory levy, if any) to those
Unit holder, whose names appear in the register of Unit holders on the
notified record date.
Dividend Reinvestment Facility
Under this facility, the Dividend due and payable to the Unit holders will
be compulsorily and without any further act by the Unit holder,
reinvested in the respective Dividend option at a price based on the
prevailing ex-Dividend Net Asset Value per Unit. The amount of Dividend
re-invested will be net of tax deducted at source, wherever applicable.
The Dividends so reinvested shall constitute a constructive payment of
Dividends to the Unit holders and a constructive receipt of the same
amount from each Unit holder for reinvestment in Units.
On reinvestment of Dividends, the number of Units to the credit of Unit
holder will increase to the extent of the Dividend reinvested divided by
the Applicable NAV. There shall, however, be no Load on the Dividend
so reinvested.
Dividend Policy Under the Dividend option, the Trustee will have the discretion to
declare the Dividend as per the specified frequencies, subject to
availability of distributable surplus calculated in accordance with the
Regulations. The actual declaration of Dividend and frequency will
inter-alia, depend on availability of distributable 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.
59 Axis Liquid Fund
The AMC/Trustee reserves the right to change the frequency of
declaration of Dividend or may provide for additional frequency for
declaration of Dividend.
Dividend Distribution Procedure
In accordance with SEBI circular no. SEBI/ IMD/ Cir No. 1/ 64057/06
dated April 4, 2006, the procedure for Dividend distribution would be as
under:
1. Quantum of Dividend and the record date will be fixed by the
Trustee. Dividend so decided shall be paid, subject to availability of
distributable surplus.
2. Within one calendar day of decision by the Trustee, the AMC shall
issue notice to the public communicating the decision about the
Dividend including the record date, in one English daily newspaper
having nationwide circulation as well as in a newspaper published
in the language of the region where the head office of the Mutual
Fund is situated.
3. Record date shall be the date, which will be considered for the
purpose of determining the eligibility of Investors whose names
appear on the register of Unit holders for receiving Dividends. The
Record Date will be 5 calendar days from the date of issue of
notice.
4. The notice will, in font size 10, bold, categorically state that pursuant
to payment of Dividend, the NAV of the Scheme would fall to the
extent of payout and statutory levy (if applicable).
5. The NAV will be adjusted to the extent of Dividend distribution and
statutory levy, if any, at the close of Business Hours on record date.
6. Before the issue of such notice, no communication indicating the
probable date of Dividend declaration in any manner whatsoever
will be issued by Mutual Fund.
However, the requirement of giving notice shall not be applicable for
Dividend options having frequency up to one month.
Allotment Not Applicable
Refund Not Applicable
Who can invest
This is an indicative list
and you are
requested to consult
your financial advisor
to ascertain whether
the Scheme is suitable
to your risk profile.
The following persons (subject to, wherever relevant, purchase of unit of
Mutual Funds, being permitted under respective constitutions, and
relevant statutory regulations) are eligible and may apply for
Subscription to the Unit of the Scheme:
1. Resident adult individuals either singly or jointly (not exceeding
three) or on an Anyone or Survivor basis;
2. Hindu Undivided Family (HUF) through Karta;
3. Minor (as the first and the sole holder only) through a natural
guardian (i.e. father or mother, as the case may be) or a court
appointed legal guardian. There shall not be any joint holding with
minor investments;
4. Partnership Firms;
5. Limited Liability Partnerships
6. Proprietorship in the name of the sole proprietor;
7. Companies, Bodies Corporate, Public Sector Undertakings (PSUs.),
Association of Persons (AOP) or Bodies of Individuals (BOI) and
societies registered under the Societies Registration Act, 1860(so
long as the purchase of Unit is permitted under the respective
constitutions;
8. Banks (including Co-operative Banks and Regional Rural Banks) and
Financial Institutions;
9. Religious and Charitable Trusts, Wakfs or endowments of private
trusts (subject to receipt of necessary approvals as "Public Securities"
as required) and Private trusts authorised to invest in mutual fund
schemes under their trust deeds;
10. Non-Resident Indians (NRIs) / Persons of Indian origin (PIOs) /
60 Axis Liquid Fund
Overseas Citizen of India (OCI) residing abroad on repatriation basis
or on non-repatriation basis;
11. Foreign Portfolio Investor (FPI), registered with SEBI on repatriation
basis. These investments shall be subject to the conditions
prescribed by SEBI, RBI, Income Tax authorities and the AMC, from
time to time;
12. Army, Air Force, Navy and other para-military units and bodies
created by such institutions;
13. Scientific and Industrial Research Organisations;
14. Multilateral Funding Agencies / Bodies Corporate incorporated
outside India with the permission of Government of India / RBI
15. Provident/ Pension/ Gratuity Fund to the extent they are permitted;
16. Other schemes of Axis Mutual Fund or any other mutual fund subject
to the conditions and limits prescribed by SEBI Regulations;
17. Schemes of Alternative Investment Funds;
18. Trustee, AMC or Sponsor or their associates may subscribe to Units
under the Scheme(s);
19. Such other category of person(s) permitted to make investments
and as may be specified by the AMC / Trustee from time to time.
Subject to SEBI (Mutual Funds) Regulations, 1996, any application for
subscription of units may be accepted or rejected in the sole and
absolute discretion of the AMC/ Trustee company. The AMC/ Trustee
company may also reject any application for subscription of units if the
application is invalid, incomplete, or if the AMC/ Trustee company for
any other reason does not believe that it would be in the interest of the
scheme or its unitholders to accept such an application.
Email ID & Mobile Number
Investors should provide their own email address and mobile number to
enable Axis AMC for speed and ease of communication in a
convenient and cost-effective manner, and to help prevent fraudulent
transactions.
Ultimate Beneficial Ownership details:
SEBI vide its circular no. CIR/MIRSD/2/2013 dated January 24, 2013
further read with AMFI Best practices guidelines circular no. 62/2015-16
dated September 18, 2015 and other applicable regulations has
prescribed guidelines, for identification of Beneficial Ownership to be
followed by the intermediaries. A ‘Beneficial owner’ is defined as a
natural person or persons who ultimately own, control or influence a
client and/or persons on whose behalf a transaction is being
conducted, and includes a person who exercises ultimate effective
control over a legal person or arrangement. In this regard, all categories
of investors (including all new / existing investors / unitholders) (except
individuals, companies listed on a stock exchange or majority-owned
subsidiary of such companies) are mandatorily required to provide
beneficial ownership details for all investments. Failing which, fund
reserves the right to reject applications / subscription requests /
additional subscription requests (including switches) / restrict further
investments or seek additional information from investors who have not
provided the requisite information on beneficial ownership. In the event
of change in beneficial ownership, investors are requested to
immediately update the details with the Fund/Registrar.
Foreign Account Tax Compliance Act and Common Reporting
Standards requirements
As a part of various ongoing tax and regulatory developments around
the globe [e.g. information exchange laws such as Foreign Account Tax
Compliance Act (‘FATCA’) and Common Reporting Standard (‘CRS')],
financial institutions like Axis Mutual Fund (‘Axis MF’ or ‘the Fund’) are
61 Axis Liquid Fund
being cast with additional investor and counterparty account related
due diligence requirements.
The Central Board of Direct Taxes (CBDT) has notified Rules 114F to 114H,
as part of the Income-tax Rules, 1962, which Rules require Indian
financial institutions such as the Banks, Mutual Funds, etc. to seek
additional personal, tax and beneficial owner information and certain
certifications and documentation from all our investors and
counterparties. According to the FATCA-CRS Rules, financial institutions
in India are required to report tax information about account holders
that are tax resident of U.S. and other foreign countries, to the CBDT/
Indian Government which will, in turn, relay that information to the US
Internal Revenue Service (IRS) and governments of other foreign
countries.
These developments have resulted in compliance and reporting
obligations on Financial Institutions like Axis MF. In relevant cases,
information will have to be reported to tax authorities/appointed
agencies. Towards compliance, the Fund may also be required to
provide information to any institutions such as withholding agents for the
purpose of ensuring appropriate withholding from the account or any
proceeds in relation thereto. As may be required by domestic or
overseas regulators/ tax authorities, we may also be constrained to
withhold and pay out any sums from your account or close or suspend
your account(s). Axis MF may also have to comply with other similar
laws as and when applicable.
Prospective investors and Unit holders will therefore be required to
comply with the request of the Fund to furnish such information /
documentation / declarations as and when deemed necessary by the
Investment Manager in accordance with Applicable Laws. In case
prospective investor / Unit holder fails to furnish the relevant information
/ documentation / declarations in accordance with Applicable Laws,
the Fund reserves the right to reject the application or redeem the Units
held directly or beneficially and may also require reporting of such
accounts and/or levy of withholding tax on payments made to the Unit
holders / investor and/or take any other action/s in accordance with
Applicable Laws. FATCA-CRS provisions are relevant not only at on-
boarding stage of Unit holders but also throughout the life cycle of
investment with the Fund. Unit holders therefore should intimate to the
Fund/the Investment Manager, any change in their status with respect
to any FATCA-CRS related information / documentation / declarations
provided by them previously, including but not limited to any
declarations provided in respect of residency of the Unit holders for tax
purposes promptly, i.e. within 30 days. Further, if the Fund and/or the
Investment Manager is required by Applicable Laws, to provide
information regarding the Fund and/or the unit holders / investors to any
regulatory authority and/or the Fund Investments and/or income
therefrom, and the Fund and/or the Investment Manager complies with
such request in good faith, whether or not it was in fact enforceable,
they shall not be liable to the Unit holders / investors or to any other
party as a result of such compliance or in connection with such
compliance.
Prospective investors / Unit holders should consult their own advisors to
understand the implications of FATCA-CRS provisions/requirements.
Please note that Axis MF will be unable to provide advice to any
investor or counterparty about their tax status or FATCA/CRS
classification relevant to their account. It is the responsibility of the
investor or counterparty to ensure that they record their correct tax
status / FATCA/ CRS classification. Investor/ counterparty may seek
62 Axis Liquid Fund
advice from their tax advisor in this regard. The onus to provide
accurate, adequate and timely inputs in this regard would be that of
the investor or counterparty. Any changes in earlier information
provided must be intimated within 30 days of such change.
Investors are requested to provide all the necessary information /
declarations to facilitate compliance, considering India’s commitment
to implement CRS and FATCA under the relevant international treaties.
Implementation of KYC requirements:
SEBI vide circular no. MIRSD/SE/Cir-21/2011 dated October 5, 2011 had
mandated (i) Standard KYC form with uniform KYC guidelines and
supporting documents to be used by SEBI registered intermediaries and
(ii) Centralized KYC registration through KYC Registration Agencies
(KRAs) registered with SEBI, w.e.f. January 1, 2012, to bring about
uniform KYC process in the securities market, based on SEBI prescribed
norms and the KYC details are shared with all SEBI registered
intermediaries by the KRAs.
Subsequently, SEBI, vide its circular no. MIRSD/Cir-5/2012 dated April 13,
2012 advised various intermediaries to upload KYC data of its existing
customers into the KRA system. While uploading KYC data into the KRA
system, intermediaries were also required to highlight such ‘Missing/Not
Available’ KYC information of a customer, which was either not required
or not taken previously, but was mandatory as per uniform KYC
guidelines issued by SEBI.
In accordance with AMFI best practices guidelines circular no. 62/2015-
16 dated September 18, 2015, it is mandatory for all new/existing
investors to provide additional KYC information such as Income details,
Occupation, association with politically exposed person, net worth etc.
as mentioned in the application form. Subscription requests, without
providing these details, are liable to be rejected. No subscriptions
(whether fresh or additional) and switches pertaining to ‘KYC on-hold’
cases are accepted, unless the investor / unitholder also submits
relevant KYC missing / updated information, which is appropriately
updated on the KRA - KYC.
Further, it is mandatory for existing customers to complete In-Person
Verification process and provide the missing KYC information failing
which their applications / transaction requests for additional
subscription (including switches) is liable to be rejected.
Central KYC Processes
Central Registry of Securitisation and Asset Reconstruction and Security
interest of India (‘CERSAI’) has been authorised by Government of India
to act as Central KYC Records Registry under Prevention of Money-
Laundering (Maintenance of Records) Rules, 2005 (‘PMLA Rules’).
SEBI vide its circular no. CIR/MIRSD/66/2016 dated July 21, 2016 and
circular no. CIR/MIRSD/120/2016 dated November 10, 2016 has
prescribed that the Mutual Fund/ AMC should capture KYC information
for sharing with CKYCR as per the KYC template prescribed by CERSAI
for uniform and smooth implementation of CKYC norms for onboarding
of new investors in Mutual Funds.
In accordance with the aforesaid SEBI circulars and AMFI best practice
guidelines for implementation of CKYC:
a) Individual investors who have never done KYC process under KRA
regime i.e. a new investor who is new to KRA system and whose KYC
is not registered or verified in the KRA system shall be required to
63 Axis Liquid Fund
provide KYC details in the CKYC Form to the Mutual Fund/ AMC.
b) Individual investor who fills old KRA KYC Form, should provide
additional / missing information using Supplementary KYC Form or fill
CKYC Form. The said form is available on Axis Mutual Fund website
www.axismf.com.
c) Details of investors shall be uploaded on the system of CKYCR and a
14 digit unique KYC Identification Number (‘KIN’) will be generated
for such customer.
d) New investors, who have completed CKYC process & have
obtained KIN may quote their KIN in the application form instead of
submitting CKYC Form/ Supplementary KYC Form.
e) AMC/ Mutual Fund shall use the KIN of the investor to download the
KYC information from CKYCR system and update its records.
f) If the PAN of investor is not updated on CKYCR system, the investor
should submit self-certified copy of PAN card to the Mutual Fund/
AMC.
The AMC reserves the right to reject transaction application in case the
investor(s) fails to submit information and/or documentation as
mentioned above. In the event of non-compliance of KYC
requirements, the Trustee / AMC reserves the right to freeze the folio of
the investor(s).
Submission of Aadhar Number
Pursuant to requirement under Prevention of Money Laundering
(Maintenance of Records) Rules, 2005 as amended from time to time,
proof of possession of Aadhar can be accepted as a valid document
for proof of address or proof of identity of investors, provided the
investor redact or blackout his Aadhar number while submitting the
applications for investments.
The aforesaid guidelines will be subject to change as per the directives
issued by the concerned regulatory/ government authority from time to
time.
For further details refer to SAI.
Who cannot invest 1. Any individual who is a foreign national or any other entity that is not
an Indian resident under the Foreign Exchange Management Act,
1999 (FEMA Act) except where registered with SEBI as FPI or
otherwise explicitly permitted under FEMA Act/ by RBI/ by any other
applicable authority.
2. Pursuant to RBI A.P. (DIR Series) circular no. 14 dated September 16,
2003, Overseas Corporate Bodies (OCBs) cannot invest in Mutual
Funds.
3. NRIs residing in Non-Compliant Countries and Territories (NCCTs) as
determined by the Financial Action Task Force (FATF), from time to
time.
4. U.S. Persons and Residents of Canada as defined under the
applicable laws of U.S. and Canada except the following:
a. subscriptions received by way of lump sum / switches
/systematic transactions received from Non-resident Indians
(NRIs) / Persons of Indian origin (PIO) / Overseas Citizen of India
(OCI) who at the time of such investment, are present in India
and
b. FPIs
5. Such other persons as may be specified by AMC from time to time.
These investors need to submit a physical transaction request along
with such documents as may be prescribed by the AMC/ the
Trustee/ the Fund from time to time.
64 Axis Liquid Fund
The AMC reserves the right to put the transaction requests on
hold/reject the transaction request/reverse allotted units, as the
case may be, as and when identified by the AMC, which are not in
compliance with the terms and conditions notified in this regard.
The Trustee / the AMC /the Fund reserve the right to change/
modify the above provisions at a later date.
Where can you submit
the filled up
applications.
Not Applicable
How to Apply Please refer to the SAI and Application form for the instructions.
Listing Axis Liquid Fund is an open ended Liquid Scheme under which Sale and
Repurchase will be made on a continuous basis and therefore listing on
stock exchanges is not envisaged. However, the Trustee reserves the
right to list the Units as and when considered necessary in the interest of
Unit holders of the Fund.
Special Products /
facilities available
during the NFO
Not Applicable
The policy regarding
reissue of
Repurchased Units,
including the
maximum extent, the
manner of reissue, the
entity (the Scheme or
the AMC) involved in
the same.
Units once redeemed will be extinguished and will not be reissued.
Restrictions, if any, on
the right to freely
retain or dispose of
Units being offered.
Pledge of Units
The Unit under the Scheme (subject to completion of Lock in Period, if
any) may be offered as security by way of a pledge / charge in favour
of scheduled banks, financial institutions, non-banking finance
companies (NBFCs), or any other person. The AMC and / or the ISC will
note and record such Pledged Units. The AMC shall mark a lien only
upon receiving the duly completed form and documents as it may
require. Disbursement of such loans will be at the entire discretion of the
bank / financial institution / NBFC or any other person concerned and
the Mutual Fund assumes no responsibility thereof.
The Pledger will not be able to redeem Units that are pledged until the
entity to which the Unit are pledged provides written authorisation to
the Mutual Fund that the pledge / lien charge may be removed. As
long as Unit are pledged, the Pledgee will have complete authority to
redeem such Units. Dividends declared on Units under lien will be paid /
re-invested to the credit of the Unit Holder and not the lien holder unless
specified otherwise in the lien letter.
Lien on Units
On an ongoing basis, when existing and new investors make
Subscriptions, a lien on Units allotted will be created and such Unit shall
not be available for redemption until the payment proceeds are
realised by the Scheme. In case a Unit holder redeems Units soon after
making purchases, the redemption cheque will not be dispatched until
sufficient time has elapsed to provide reasonable assurance that
cheques or drafts for Unit purchased have been cleared.
In case the cheque / draft is dishonoured by the bank, the transaction
shall be reversed and the Units allotted earlier shall be cancelled, and a
fresh Account Statement / Confirmation slip shall be dispatched to the
Unit holder. For NRIs, the Scheme may mark a lien on Unit in case
65 Axis Liquid Fund
documents which need to be submitted are not given in addition to the
application form and before the submission of the redemption request.
However, the AMC reserves the right to change operational guidelines
for lien on Unit from time to time.
Suspension/Restriction on Redemption of Units of the Scheme
Subject to the approval of the Boards of the AMC and of the Trustee
and subject also to necessary communication of the same to SEBI, the
redemption of / switch-out of Units of Scheme, may be temporarily
suspended/ restricted. In accordance with SEBI circular no.
SEBI/HO/IMD/DF2/CIR/P/2016/57 dated May 31, 2016 and subject to
prevailing regulations, restriction on/suspension of redemptions / switch-
out of Units of the Scheme, may be imposed when there are
circumstances leading to systemic crisis or event that severely constricts
market liquidity or the efficient functioning of markets such as:
a) Liquidity issues: when market at large becomes illiquid affecting
almost all securities rather than any issuer specific security;
b) Market failures, exchange closures: when markets are affected by
unexpected events which impact the functioning of exchanges or
the regular course of transactions. Such unexpected events could
also be related to political, economic, military, monetary or other
emergencies;
c) Operational issues: when exceptional circumstances are caused by
force majeure, unpredictable operational problems and technical
failures (e.g. a black out).
Restriction on / suspension of redemption of Units of the Scheme may
be imposed for a specified period of time not exceeding 10 working
days in any 90 days period.
When restriction on / suspension of redemption of Units of the Scheme is
imposed, the following procedure shall be applied
i. No redemption / switch-out requests upto Rs. 2 lakhs shall be
subject to such restriction.
ii. Where redemption / switch-out requests are above Rs. 2 lakhs,
the AMC shall redeem the first Rs. 2 lakhs without such restriction
and remaining part over and above Rs. 2 lakhs shall be subject
to such restriction.
In addition to the above, the AMC / Trustee may restrict / suspend
redemptions / switch-out of Units of the Scheme pursuant to direction/
approval of SEBI.
In case of any of the above eventualities, the general time limits for
processing requests for redemption of Units will not be applicable.
Also refer to the section ‘Suspension of Purchase and Redemption of
Units’ in the Statement of Additional Information.
Third Party Payment
Avoidance
and additional
documents /
declaration required
Please refer SAI for details.
Cash Investments in
mutual funds
In order to help enhance the reach of mutual fund products amongst
small investors, who may not be tax payers and may not have
PAN/bank accounts, such as farmers, small
traders/businessmen/workers, SEBI has permitted receipt of cash
transactions for fresh purchases/ additional purchases to the extent of
Rs.50,000/- per investor, per mutual fund, per financial year subject to:
66 Axis Liquid Fund
i. compliance with Prevention of Money Laundering Act, 2002 and Rules
framed there under; the SEBI Circular(s) on Anti Money Laundering
(AML) and other applicable Anti Money Laundering Rules, Regulations
and Guidelines; and
ii. sufficient systems and procedures in place.
However, payment towards redemptions, dividend, etc. with respect to
aforementioned investments shall be paid only through banking
channel.
The Fund/ AMC is currently in the process of setting up appropriate
systems and procedures for the said purpose. Appropriate notice shall
be displayed on its website viz. as well as at the Investor Service
Centres, once the facility is made available to the investors.
B. ONGOING OFFER DETAILS
Default Plan/ Option The investors may refer to the paragraph under New Fund offer Section
for applicability of Direct Plan/ Regular Plan under different scenario.
Ongoing Offer Period
This is the date from
which the Scheme will
reopen for
Subscriptions/Redemp
tions after the closure
of the NFO period.
The Scheme has reopened for continuous subscription and redemption
from October 12, 2009.
Ongoing price for
Subscription
(purchase)/Switch-in
(from other
Schemes/Plans of the
Mutual Fund) by
investors.
This is the price you
need to pay for
purchase/Switch-in.
At the Applicable NAV
SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30,
2009 has decided that there shall be no entry Load for all Mutual Fund
Schemes. Hence, no entry load is levied for subscription transactions by
the Scheme.
Methodology of calculating subscription price:
Subscription Price = Applicable NAV*(1+Entry Load, if any)
Example: If the Applicable NAV is Rs. 10, Entry Load is NIL then the
subscription price will be:
= Rs. 10* (1+NIL)
= Rs. 10
Ongoing price for
Redemption (sale)
/Switch outs (to other
schemes/plans of the
Mutual Fund) by
Investors.
This is the price you will
receive for
redemptions/Switch
outs.
At the Applicable NAV subject to prevailing exit load.
Ongoing price for redemption /Switch out (to other Schemes/Plans of
the Mutual Fund) is price which a Unit holder will receive for
redemption/Switch-outs. During the continuous offer of the Scheme, the
Unit holder can redeem the Units at Applicable NAV, subject to
payment of Exit Load, if any. It will be calculated as follows:
Methodology of calculating repurchase price:
Redemption Price = Applicable NAV*(1-Exit Load, if any)
Example: If the Applicable NAV is Rs. 10, Exit Load is 2% then redemption
price will be:
= Rs. 10* (1-0.02)
= Rs. 9.80
Investors/Unit holders should note that the AMC/Trustee has right to
modify existing Load structure and to introduce Loads subject to a
maximum limits prescribed under the Regulations.
Any change in Load structure will be effective on prospective basis and
will not affect the existing Unit holder in any manner.
However, the Mutual Fund will ensure that the Redemption Price will not
67 Axis Liquid Fund
be lower than 93% of the Applicable NAV provided that the difference
between the Redemption Price and the Subscription /Purchase Price at
any point in time shall not exceed the permitted limit as prescribed by
SEBI from time to time, which is currently 7% calculated on the
Subscription/ Purchase Price. The Purchase Price shall be at applicable
NAV.
Cut off timing for
Subscriptions/
redemptions/ Switches
This is the time before
which your application
(complete in all
respects) should reach
the Official Points of
Acceptance.
Subscriptions/Purchases including Switch - ins:
i. where the application is received upto 1.30 p.m. on a day and
funds are available for utilization before the cut-off time without
availing any credit facility, whether, intra-day or otherwise – the
closing NAV of the day immediately preceding the day of receipt
of application;
ii. where the application is received after 1.30 p.m. on a day and
funds are available for utilization on the same day without availing
any credit facility, whether, intra-day or otherwise – the closing NAV
of the day immediately preceding the next business day ; and
iii. irrespective of the time of receipt of application, where the funds
are not available for utilization before the cut-off time without
availing any credit facility, whether, intra-day or otherwise – the
closing NAV of the day immediately preceding the day on which
the funds are available for utilization.
For allotment of units in respect of purchase in to the Scheme, it shall be
ensured that:
i. Application is received before the applicable cut-off time.
ii. Funds for the entire amount of subscription/purchase as per the
application are credited to the bank account of the Scheme
before the cut-off time.
iii. The funds are available for utilization before the cut-off time without
availing any credit facility whether intra-day or otherwise, by the
Scheme.
For allotment of units in respect of switch-in to the Scheme from other
schemes, it shall be ensured that:
i. Application for switch-in is received before the applicable cut-off
time.
ii. Funds for the entire amount of subscription/purchase as per the
switch-in request are credited to the bank account of the Scheme
before the cut-off time.
iii. The funds are available for utilization before the cut-off time without
availing any credit facility whether intra-day or otherwise, by the
respective switch-in schemes.
ii) Redemptions including Switch - outs:
a. In respect of valid applications received upto 3.00 p.m. – the closing
NAV of the day immediately preceding the next Business Day ; and
b. In respect of valid applications received after 3 p.m. by the Mutual
Fund, the closing NAV of the next Business Day shall be applicable.
The above mentioned cut off timing shall be applicable to transactions
through the online trading platform.
In case of Transaction through Stock Exchange Infrastructure, the Date
of Acceptance will be reckoned as per the date & time; the
transaction is entered in stock exchange’s infrastructure for which a
system generated confirmation slip will be issued to the investor
Where can the
applications for
purchase/redemption
Switches be
Refer Back Cover Page
68 Axis Liquid Fund
submitted?
Minimum amount for
purchase/Redemption
/Switches
Minimum amount for purchase/Switch in
Growth Option : Rs. 500 and in multiples of Re. 1/- thereafter
All other options: Rs. 5,000 and in multiples of Re. 1/- thereafter
Minimum Additional Purchase/Switch in Amount
Growth Option : Rs. 500 and in multiples of Re. 1/- thereafter
All other options: Rs.1000 and in multiples of Re. 1/- thereafter
Minimum application amount is applicable at the time of creation of
new folio and at the time of first investment in a plan.
Minimum Redemption Amount/Switch Out
There will be no minimum redemption criterion. The Redemption /
Switch-out would be permitted to the extent of credit balance in the
Unit holder’s account of the Plan(s) / Option(s) of the Scheme (subject
to completion of Lock-in period or release of pledge / lien or other
encumbrances). The Redemption / Switch-out request can be made by
specifying the rupee amount or by specifying the number of Units of the
respective Plan(s) / Option(s) to be redeemed. In case a Redemption /
Switch-out request received is for both, a specified rupee amount and
a specified number of Units of the respective Plan(s)/ Option(s), the
specified number of Units will be considered the definitive request. In
case the value / number of available units held in the Unit holder’s folio
/ account under the Plan / Option of the Scheme is less than the
amount / number of units specified in the redemption / switch-out
request, then the transaction shall be treated as an all units redemption
and the entire balance of available Units in the folio / account of the
Unit holder shall be redeemed.
In case of Units held in dematerialized mode, the Unit Holder can give a
request for Redemption only in number of Units and in fractional units
also. Depository participants of registered Depositories to process only
redemption request of units held in demat form.
The AMC/ Trustee reserves the right to change/ modify the terms of
minimum redemption amount/switch-out
Minimum balance to
be maintained and
consequences of non
maintenance.
Currently, there is no minimum balance requirement.
However, the AMC / Trustee may decide to introduce minimum
balance requirements later, if they so deem fit. In such case, in the
event of non-maintenance of minimum balance for any particular
situations, the Units may be compulsorily redeemed.
In case balance in the account of the Unit holder does not cover the
amount of Redemption request, then the Mutual Fund is authorized to
redeem all the Units in the folio and send the Redemption proceeds to
the Unit holder.
Special Products
available
SIP facility is not available under the Scheme.
Purchase/Redemption of units through Stock Exchange Infrastructure
Investors can subscribe to the Units of Axis Mutual Fund through the
mutual fund trading platforms of the Bombay Stock Exchange (“BSE”),
National Stock Exchange (“NSE”) and Indian Commodity Exchange Ltd.
(‘ICEX’) – with NSDL and CDSL as depositories for such units of the
mutual fund.
NSE has introduced Mutual Fund Service System (MFSS) Platform and
BSE has introduced BSE StAR MF Platform and ICEX has introduced
ICEXMF platform (Stock Exchange Platform).
69 Axis Liquid Fund
The following are the salient features of the MFSS / BSE StAR MF / ICEXMF
Platform:
1. The facility i.e. purchase/redemption is available for both existing and
new investors.
2. The Investors will be eligible to purchase/redeem units of the scheme.
3. The facility can be availed by both, investors under Direct Plan
offered by the schemes and investors investing through Distributors
under the Regular Plan offered by the schemes.
.
4. List of additional Official Point of Acceptance
The following shall be the additional Official Point of Acceptance of
Transactions for the Scheme:
All trading members of BSE, NSE & ICEX who are registered with AMFI
as Mutual Fund Distributor and also registered with BSE &/or NSE &/or
ICEX as Participants ("AMFI registered stock exchange brokers") will
be eligible to offer this facility to investors and shall be treated as
official point of acceptance.
Units of mutual fund schemes shall be permitted to be transacted
through clearing members of the registered Stock Exchanges.
Clearing members and Depository participants will be considered as
Official Points of Acceptance (OPA) of Axis Mutual Fund and
conditions stipulated in SEBI circular no. SEBI /IMD / CIR
No.11/183204/2009 dated November 13, 2009 for stock brokers viz.
AMFI /NISM certification, code of conduct prescribed by SEBI for
Intermediaries of Mutual Fund, shall be applicable for such Clearing
members and Depository participants as well.
5. The units of the Scheme are not listed on BSE, NSE & ICEX and the
same cannot be traded on the Stock Exchange. The window for
purchase/redemption of units on MFSS / BSE StAR MF / ICEXMF
Platform will be available between 9 a.m. and 3 p.m. or such other
timings as may be decided.
6. Transactions only in demat mode will be currently permitted through
MFSS / BSE StAR MF / ICEXMF Platform.
7. Investors will be able to purchase/redeem units in the scheme in the
following manner:
(i) Investors shall receive redemption amount (if units are redeemed)
and units (if units are purchased) through broker/ clearing
member's pool account. Axis Asset Management Company Ltd.
(the "AMC")/Axis Mutual Fund (the "Mutual Fund") shall pay
proceeds to the broker/clearing member (in case of redemption)
and broker/clearing member in turn to the respective investor
and similarly units shall be credited by the AMC/ Mutual Fund into
broker/clearing member's pool account (in case of purchase)
and broker/clearing member in turn shall credit the units to the
respective investor's demat account.
(ii) Payment of redemption proceeds to the broker/clearing
members by AMC/Mutual Fund shall discharge AMC/Mutual
Fund of its obligation of payment to individual investor. Similarly, in
case of purchase of units, crediting units into broker/clearing
member pool account shall discharge AMC/Mutual Fund of its
obligation to allot units to individual investor.
8. Applications for purchase/redemption of units which are incomplete
/invalid are liable to be rejected.
9. For all the transactions done through these platforms, separate Folio.
No. shall be allotted to the existing and the new investors. The bank
a/c number, address, nomination details etc. shall be the same as
70 Axis Liquid Fund
per the Demat account of the investor. In case of non-financial
requests/applications such as change of address, change of bank
details, etc. investors should approach the respective Depository
Participant(s).
10. Investors will have to comply with Know Your Customer (KYC)
norms as prescribed by BSE/NSE/CDSL/ NSDL/ICEX and Axis Mutual
Fund to participate in this facility.
11. Investors should get in touch with Investor Service Centres (ISCs)
of Axis Mutual Fund for further details.
Further, in addition to above, the AMC will offer historic NAV facility
for the units subscribed through NSE as and when NSE chooses to
offer the facility.
BSE has introduced facility of Historic Day NAV (i.e. T-1 day NAV).
Axis AMC shall allot the units at Historic NAV subject to:
1. Application is received before the applicable cut-off time.
2. Funds for the entire amount of subscription/purchase as per the
application are credited to the bank account of the scheme
before the cut-off time.
3. The funds are available for utilization before the cut-off time
without availing any credit facility whether intra-day or
otherwise, by the scheme.
1. Transaction through Stock Exchange infrastructure using services of
Distributor/ SEBI Registered Investment Advisor
SEBI circular no. CIR/MRD/DSA/32/2013 dated October 4, 2013 and
circular no. CIR/MRD/DSA/33/2014 dated December 9, 2014, has
permitted Mutual Fund Distributors (“MF Distributors”) and SEBI circular
no. SEBI/HO/MRD/DSA/CIR/P/2016/113 dated October 19, 2016
permitted SEBI Registered Investment Advisors (“RIAs”) to use
recognized Stock Exchange infrastructure to purchase/redeem units
directly from Mutual Fund/AMC on behalf of their clients.
MF Distributor registered with AMFI or RIAs, will be eligible to use NMF-II
platform of NSE (in addition to other intermediaries) and / or of BSE StAR
MF platform of BSE and/ or ICEXMF platform of ICEX to purchase and
redeem units of schemes of the Fund.
In addition to the guidelines specified for transacting through MFSS/BSE
StAR MF / ICEXMF Platform above, following guidelines shall be
applicable for transactions executed through MF Distributors/ RIAs on
NMF-II / BSE StAR MF / ICEXMF Platform:
1. MF distributors/RIAs shall not handle pay out/pay in of funds as well
as units on behalf of investor. Pay in will be directly received by
recognized clearing corporation and payout will be directly made
to investor account. In the same manner, units shall be credited and
debited directly from the demat account of investors.
2. Transactions only in physical (non-demat) transactions will be
permitted through NMF-II / BSE StAR MF / ICEXMF Platform.
2. The facility of transacting in mutual fund schemes through stock
exchange infrastructure is available subject to such operating
guidelines, terms and conditions as may be prescribed by the
respective Stock Exchanges from time to time.
3.
Systematic Transfer Plan (STP)
This facility will be available to the investors only during the Ongoing
Offer period.
71 Axis Liquid Fund
Investors can opt for the Systematic Transfer Plan by investing a
lumpsum amount in one scheme of the fund and providing a standing
instruction to transfer sums at following intervals into any other scheme
(as may be permitted by the Scheme Information Document of the
respective schemes) of Axis Mutual Fund.
STP
Frequency Cycle Date
Minimum
Amount* (in Rs.)
Minimum
Installment
Daily Monday To Friday 1,000/- 6
Weekly Monday To Friday 1,000/- 6
Fortnightly Alternate Wednesday 1,000/- 6
Monthly 1st, 7th, 10th, 15th or 25th 1,000/- 6
Quarterly 1st, 7th, 10th, 15th or 25th 3,000/- 2
In case Day of Transfer has not been indicated under Weekly
frequency, Wednesday shall be treated as Default day. Further, in case
of Monthly and Quarterly Frequency, if the STP date and Frequency has
not been indicated, Monthly frequency shall be treated as Default
frequency and 10th shall be treated as Default Date.
In case none of the frequencies have been selected then Monthly
frequency shall be treated as Default frequency and 10th shall be
treated as Default Date.
Investors could also opt for STP from an existing account by quoting
their account / folio number.
A minimum period of 7 days shall be required for registration under STP.
Units will be allotted/redeemed at the applicable NAV of the respective
dates of the Scheme in which such investments/withdrawals are sought
from the Scheme.
The requests for discontinuation of STP shall be subject to an advance
notice of 15 days before the next due date for STP and it will terminate
automatically if all Units are liquidated or withdrawn from the account
or upon the Funds’ receipt of notification of death or incapacity of the
Unit holder.
The AMC reserves the right to introduce STPs at any other frequencies or
on any other dates as the AMC may feel appropriate from time to time.
In the event that such a day is a Holiday, the transfer would be affected
on the next Business Day.
Further, in case where the balance amount in a folio is less than the STP
amount, the entire amount will be transferred to the transferee scheme
Capital Appreciation Systematic Transfer Plan (CapSTP)
Under this facility, the investors can opt for the Systematic Transfer Plan
by investing a lump sum amount in one scheme of the fund and
providing a standing instruction to transfer capital appreciation at
regular intervals - Weekly, Monthly and Quarterly into any other scheme
(as maybe permitted by the Scheme Information Document of the
respective schemes) of Axis Mutual Fund.
The capital appreciation, if any, will be calculated from the enrolment
date of the CapSTP under the folio, till the first transfer date. Subsequent
capital appreciation, if any, will be the capital appreciation between
the previous CapSTP date (where CapSTP has been processed and
paid) and the next CapSTP date
72 Axis Liquid Fund
There are three options available under CapSTP viz. Weekly, Monthly
and Quarterly option, the details of which are given below:
CapSTP
Frequency Cycle Date
Minimum
Amount* (Rs.)
Minimum
Installment
Weekly Monday To Friday 500/- 6
Monthly 1st, 7th, 10th, 15th or
25th
500/- 6
Quarterly 1st, 7th, 10th, 15th or
25th
1,000/- 2
The provision of ‘Minimum Redemption Amount’ as specified in the
Scheme Information Document of the respective designated Transferor
Schemes and ‘Minimum Application Amount’ specified in the Scheme
Information Document of the respective designated Transferee
Schemes will not be applicable for CapSTP.
Unit holders are required to fill in either the number of installments or the
enrolment period in the enrolment Form, failing which the Form is liable
to be rejected.
In case, the Enrolment Period has been filled, but the CapSTP Date
and/or Frequency (Monthly/ Quarterly) has not been indicated,
Monthly frequency shall be treated as Default frequency and 10th shall
be treated as Default Date. In case of weekly frequency, Wednesday
shall be treated as Default day.
In case none of the frequency is selected then Monthly frequency shall
be treated as Default frequency and 10th shall be treated as Default
Date.
The application for CapSTP enrolment - Monthly & Quarterly frequency
should be submitted at least 7 working days and not more than 90 days
before the desired commencement date.
In respect of CapSTP, the Load Structure prevalent at the time of
enrolment shall govern the investors during the tenure of the CapSTP.
A minimum period of 7 working days shall be required for registration
under CapSTP. Units will be allotted/redeemed at the applicable NAV
(of the respective date(s)) of the Scheme from/to which such
withdrawals/investments are being made.
The AMC reserves the right to introduce CapSTPs at any other
frequencies or on any other dates as the AMC may feel appropriate
from time to time. In the event that such a day is a Holiday, the transfer
would be affected on the next Business Day.
The requests for discontinuation of CapSTP shall be subject to an
advance notice of 15 days before the next due date for CapSTP.
CapSTP will terminate automatically if all Units are liquidated or
withdrawn from the account or upon the Funds’ receipt of notification
of death or incapacity of the Unit holder. Further, in case where the
balance amount in a folio is less than the CapSTP amount, the entire
amount will be transferred to the transferee scheme.
Systematic Withdrawal Plan (SWP)
Existing Unitholders have the benefit of availing the choice of SWP on
pre-specified dates. SWP allows the Unitholder to withdraw a specified
sum of money each month/ quarter from his investments in the Scheme.
73 Axis Liquid Fund
The amount thus withdrawn by redemption will be converted into Units
at Applicable NAV based prices and the number of Units so arrived at
will be subtracted from the Units balance to the credit of that
Unitholder.
Unitholders may start the facility/ change the amount of withdrawals or
the period of withdrawals by giving a 15 days written intimation/notice.
The SWP may be terminated by a Unitholder by giving 15 days written
intimation/ notice and it will terminate automatically if all the Units are
liquidated or withdrawn from the account or the holdings fall below the
SWP installment amount.
There are four options available under SWP viz. Monthly option,
quarterly option, Half Yearly and Yearly option. The details of which are
given below:
Monthly
Option
Quarterl
y Option
Half Yearly
Option
Yearly
Option
Minimum value of
SWP
Rs. 1,000/-
Additional amount in
multiples of
Re.1
Dates of SWP
Installment
1/5/10/15/25*
Minimum No of SWP Six Four Four Two
* In the event that such a day is a non-business day, the withdrawals
would be affected on the next business day.
Exit Load, if any, is applicable to SWP.
The AMC reserves the right to accept SWP applications of different
amounts, dates and frequencies.
Unitholders can enroll themselves for the facility by submitting the duly
completed Systematic Withdrawal enrolment Form at any of the
Investor Service Centres (ISCs)/Official Points of Acceptance (OPAs).
Switching Options
(a) Inter - Scheme Switching option
Unit holders under the Scheme have the option to Switch part or all of
their Unit holdings in the Scheme to any other Scheme offered by the
Mutual Fund from time to time. The Mutual Fund also provides the
Investors the flexibility to Switch their investments from any other
scheme(s) / plan (s) offered by the Mutual Fund to this Scheme. This
option will be useful to Unit holders who wish to alter the allocation of
their investment among the scheme(s) / plan(s) of the Mutual Fund in
order to meet their changed investment needs.
The Switch will be effected by way of a Redemption of Units from the
Scheme at Applicable NAV, subject to Exit Load, if any and
reinvestment of the Redemption proceeds into another Scheme offered
by the Mutual Fund at Applicable NAV and accordingly the Switch
must comply with the Redemption rules of the Switch out Scheme and
the Subscription rules of the Switch in Scheme.
(b) Intra -Scheme Switching plan/option
Unit holders under the Scheme have the option to Switch their Unit
holding from one plan/option to another plan/option (i.e. Axis Liquid
Fund – Regular Plan to Axis Liquid Fund – Direct Plan, Growth to
Dividend and vice-a-versa). The Switches would be done at the
74 Axis Liquid Fund
Applicable NAV based prices and the difference between the NAVs of
the two plans/options will be reflected in the number of Units allotted.
Switching shall be subject to the applicable “Cut off time and
Applicable NAV” stated elsewhere in the Scheme Information
Document. In case of “Switch” transactions from one scheme to
another, the allocation shall be in line with Redemption payouts.
Transaction on Fax.
In order to facilitate quick processing of transaction and / or instruction
of investment of investor the AMC/ Trustee/ Mutual Fund may (at its sole
discretion and without being obliged in any manner to do so and
without being responsible and/ or liable in any manner whatsoever)
accept and process any application, supporting documents and / or
instructions submitted by an investor / Unit holder by facsimile (Fax
Submission) and the investor / Unit holder voluntarily and with full
knowledge takes and assumes any and all risk associated therewith. The
AMC / Trustee/ Mutual Fund shall have no obligation to check or verify
the authenticity or accuracy of Fax Submission purporting to have been
sent by the investor and may act thereon as if same has been duly
given by the investor. In all cases the investor will have to immediately
submit the original documents/ instruction to AMC/ Mutual Fund.
Online Transactions
Axis Mutual Fund will allow Transactions including by way of
Redemption / Switch out of Units by electronic mode through the AMC
website/Mobile applications / Whatsapp. The Redemption proceeds,
(subject to deduction of tax at source, if any) through this mode, are
directly credited to the bank account of the Investors who have an
account at the designated banks with whom the AMC has made
arrangements from time to time or through NEFT/RTGS or through
cheque/Payorder/Demand draft issuance. The AMC will have right to
modify the procedure of transaction processing without any prior
intimation to the Investor.
For details of the facility, investors are requested to refer to the website
of the AMC.
TRANSACTION FACILITY ON ELECTRONIC PLATFORMS/ WHATSAPP
Investors will be allowed to transact in the Schemes using WhatsApp
Facility. The facility will be available to existing Resident Individual
investors.
To avail this facility, investor will have to initiate message / request
through WhatsApp to “+91-7506771113” through their registered mobile
number. The investor transaction / service requests will be enabled after
appropriate verification of the investor.
The transactions / services through this facility shall be subject to such
limits, operating guidelines and terms & conditions as may be
prescribed by Axis MF from time to time.
Online modes (including WhatsApp Facility) and other various digital
platforms offered by Axis Mutual Fund shall be treated as Official Point
of Acceptance. The uniform cut - off timing as prescribed by SEBI from
time to time and mentioned in the SID and KIM of the Scheme shall be
applicable for transactions received through these platforms.
Transactions through electronic platform(s) of KFin Technologies Pvt. Ltd.
Investors will be allowed to transact through
75 Axis Liquid Fund
https://mfs.kfintech.com/mfs/, an electronic platform provided by M/s.
KFin Technologies Pvt. Ltd., Registrar & Transfer Agent, in Schemes of
Axis Mutual Fund (‘Fund’) (except Axis Gold ETF and Axis Nifty ETF). The
facility will also be available through mobile application of KFin
Technologies Pvt. Ltd.
The uniform cut off time as prescribed under the SEBI (Mutual Funds)
Regulations, 1996 and as mentioned in SID and KIM of the Scheme will
be applicable for transactions received through the above electronic
platform and the time of receipt of transaction recorded on the
server(s) of KFin Technologies Pvt. Ltd. will be reckoned as the time for
the purpose of determining applicability of NAV, subject to credit of
funds to bank account of scheme, wherever applicable.
The facility is subject to operating guidelines, terms and conditions as
may be prescribed by KFin Technologies Pvt. Ltd. or as may be
specified by Axis Asset Management Company Ltd. from time to time.
For operating guidelines and terms and conditions , investors are
requested to visit https://mfs.kfintech.com/mfs/.
Time of receipt of transaction recorded on the server(s) of KFin
Technologies Pvt. Ltd. will continue to be reckoned for electronic
transactions received through AMC website/ Distributor website/
applications etc subject to credit of funds to bank account of scheme,
wherever applicable.
Online Schedule Transaction Facility (‘the OST facility’/ ‘the Facility’):
The OST facility shall enable Unitholders to schedule subscription /
redemption / switch transaction(s) on specified date for specified
amount/ units by giving online instruction.
The terms and conditions of the OST facility shall be as under:
1. The Facility is available to the existing Unitholders of open ended
schemes of Axis Mutual Fund (except Axis Gold ETF and Axis Nifty
ETF), subject to completion of lock-in, if any. Further, subscription
transaction in Axis Liquid Fund, will not be allowed to be executed
using the Facility.
2. The Facility is available only to Individual (including sole proprietor)
Unitholders for units held in / subscription in physical mode.
3. The Facility for subscription transaction would be available to
unitholders after completion of OTM Mandate / Easycall mandate/
equivalent mandate registration process and as per limits specified
therein.
4. Under the Facility the transaction can be scheduled to be executed
on a specified date which shall be within 30 calendar days from the
date of the instruction. Such specified date shall be a business day.
In case the scheduled transaction date falls on a non-business day,
the transaction will be executed on the immediately following
business day.
5. The Facility shall be available on online transaction platform(s) viz
website of Axis AMC i.e. www.axismf.com. Axis AMC may extend
the Facility to other transaction platforms from time to time, at its
discretion.
6. The scheduled transaction may be cancelled by giving suitable
instruction atleast one calendar day prior to the scheduled
transaction date.
7. The triggered transaction on the scheduled date shall be
considered as time stamped and will be executed on the specified
date at the applicable NAV of the relevant scheme. In case the
specified date happens to be a non-business day in debt schemes
but is a business day in equity schemes, switch-out from equity
76 Axis Liquid Fund
schemes will be processed on the specified date, while the switch-in
to debt/liquid schemes will be processed on the next business day.
8. The scheduled transaction(s) shall be subjected to exit load,
minimum subscription/additional subscription application and other
terms and conditions of the relevant scheme as per SID applicable
on the specified date.
9. The scheduled transaction shall be liable to be rejected if sufficient
amount is not available for subscription or sufficient number of units
/ amount is not available for redemption.
10. Redemption transactions will not be executed in case units are
pledged or where lien is marked on units, at the time of online
instruction / on specified date.
11. Unitholders availing of this facility shall acquaint themselves with the
features of the Scheme, including any modification / amendments
carried out before the specified date.
The Facility is an additional facility provided to the Unitholders to plan
their transactions in schemes using online platforms.
Axis AMC / Trustee reserves the right to change/ modify the terms and
conditions or to make operational rules for operation of the Facility from
time to time.
Insta Redemption Facility (‘the Facility’):
The features of the Facility pursuant to the provision of SEBI circular no.
SEBI/HO/IMD/DF2/CIR/P/2017/39 dated May 08, 2017 are as follows:
Features Provisions
Eligible
Investor &
Pre-
requisites
The Facility shall be available only to Unit holders
whose:
a) Status is Resident Indian Individual
b) Complete Core Banking System (CBS) account
number is registered in the folio along with IFSC
code.
c) Unitholders’ bank is immediate payment service
(IMPS) enabled.
Mode of
transaction
The Facility can be availed on Axis Mutual Fund
website i.e. www.axismf.com. AMC reserves the right
to extend the same to other online Platform(s).
Minimum
Redemptio
n Amount
Minimum redemption amount shall be Rs. 500/-.
Unitholders can submit redemption request only in
terms of amount.
Maximum
Redemptio
n Amount
Investor can submit insta redemption for a maximum
of rupees Fifty thousand only or the Redeemable
Balance, whichever is lower, subject to minimum
redemption amount for the Facility.
This limit shall be applicable per day, per investor.
Redeemabl
e Balance
90% of the Current Value of available Units
Current Value of available Units shall be value of
available units as per the latest declared NAV
(Number of available Units X Latest declared NAV),
(refer illustration below)
Available units are such units in the folio for which the
investor can place a redemption request at any
point of time after considering units which are un-
cleared for funds realization or reconciliation, or are
under lien, or are in dematerialized mode and after
77 Axis Liquid Fund
considering any transaction/s pending for unit
adjustments.
The decision of the AMC in determining the
Redeemable Balance shall be final.
The AMC reserves the right to modify the margin limit
stated above, at any time at its discretion without
giving any prior notice
Cut-off
timings and
Applicable
NAV
For application received up to 3.00 pm – the lower
of :
(i) NAV of previous calendar day and (ii) NAV of
calendar day on which application is received;
For application received after 3.00 pm – the lower
of: (i) NAV of calendar day on which such
application is received, and (ii) NAV of the next
calendar day.
Scenarios
under
which the
Facility may
be
suspended
The Facility may get impacted / suspended due to
unforeseen technical / Internet / network issues or
software / hardware challenges, force majeure
event, changes in prevailing laws / regulations or
other reason including those beyond the control of
the AMC.
In case the transaction is not completed due to any
reason, such transaction shall be processed as
ordinary redemption transaction at applicable NAV.
AMC reserves the right to reject any redemption / switch out /
systematic withdrawal or transfer request received through any other
mode on any business day, i.e. physical, electronic, etc. if an instant
redemption request has been received and such instant redemption is
pending to be processed.
Illustration:
Amount in Rs.
Particulars Scenario 1 Scenario 2
(A) Current Value of available Units
(Number of available Units X Latest
NAV Declared)
50,000 1,00,000
(B) Redeemable Balance (A X 90%) 45,000 90,000
Maximum Redemption Amount (per
day) (B or Rs.50,000/- (fifty thousand
rupees) whichever is lower)
45,000 50,000
The AMC reserves the right to change the terms and conditions of this
Facility/withdraw/suspend the Facility without any notice.
EASY CALL FACILITY
All individual investors in the scheme applying on “Sole” or “Joint
(Anyone or Survivor)” basis in their own capacity shall be eligible to avail
of Easy Call facilities for permitted transactions inter alia on the following
terms and conditions (“Terms and Conditions” mean the terms and
conditions set out below by which the Facility shall be used/availed by
the Investor/s and shall include all modifications and supplements
made by AMC thereto from time to time).
Axis Mutual Fund will allow transactions including by way of Lumpsum
Purchase/ Redemption / Switch of Units over phone. Initial Investment
has to be through physical mode wherein he has to sign a one time
debit mandate for bank accounts pertaining to designated banks with
78 Axis Liquid Fund
which the AMC may have an arrangement. This facility is extended to
the bank with which the Fund would have an arrangement from time to
time. Investment amount may be restricted by the AMC from time to
time in line with prudent risk management requirements and to protect
the overall interest of the Investors.
Investor will be allowed transactions over phone after 30 days from the
date of submission of one time mandate. Investor will not be permitted
to avail the Easy call facility for Redemptions/Switch transactions if bank
mandate is changed with in last 15 days. AMC will have right to modify
the procedure of transaction processing without any prior intimation to
the Investor. AMC retains the right to maintain call records of the
communication with investors, for lawful purposes.
The AMC has a right to ask such information (Key Information) from the
available data of the Investor/s before allowing him access to avail the
Facility. If for any reason, the AMC is not satisfied with the replies of the
Investor/s, the AMC has at its sole discretion the right of refusing access
without assigning any reasons to the Investor/s.
It is clarified that the Facility is a service provided to the Investor/s and is
offered at the sole discretion of the AMC. The AMC is not bound and/or
obliged in any way to offer this Facility to Investor/s.
The Investor/s shall check his/her account records carefully and
promptly. If the Investor/s believes that there has been a mistake in any
transaction using the Facility, or that unauthorized transaction has been
effected, the Investor/s shall notify the AMC immediately. If the
Investor/s defaults in intimating the discrepancies in the statement
within a period of fifteen days of receipt of the statements, he waives all
his rights to raise the same. By opting for the facility the Investor/s hereby
irrevocably authorizes and instructs the AMC to act on his /her behalf
and to do all such acts as AMC may find necessary to provide the
Facility.
The Investor/s shall at all times be bound by any modifications and/or
variations made to these Terms and Conditions by the AMC at their sole
discretion and without notice to them.
The Investor/s agrees and confirms that the AMC has the right to ask the
Investor/s for an oral or written confirmation of any transaction request
using the Facility and/or any additional information regarding the
Account of the Investor/s.
The Investor/s agrees and confirms that the AMC may at its sole
discretion suspend the Facility in whole or in part at any time without
prior notice.
The Investor/s shall not assign any right or interest or delegate any
obligation arising herein.
The Investor/s shall take responsibility for all the transactions conducted
by using the Facility and will abide by the record of transactions
generated by the AMC. Further, the Investor/s confirms that such
records generated by the AMC shall be conclusive proof and shall be
binding for all purposes and may be used as evidence in any
proceedings and that the investor(s) unconditionally waives all
objections in this behalf.
The Investor/s agree that use of the Facility will be deemed to be an
acceptance of the Terms and Conditions and the Investor/s will
79 Axis Liquid Fund
unequivocally be bound by these Terms and Conditions. The Investor
agrees that all calls received shall be eligible for applicable NAV
subject to necessary formalities to be complied by the AMC in case of
transaction through Easy Call Facility on or before the uniform cut off
time.
Requests like change in bank mandate, change of nomination, change
in mode of holding, change of address or such other requests as the
AMC may decide from time to time will not be permitted using the Easy
Call facility.
The investor agrees to indemnify and keep indemnified Axis AMC its
Directors, employees, representatives and service providers of the AMC,
Axis Mutual Fund and Trustees (indemnified parties) from and against all
actions, claims, demands, liabilities, obligations, losses, damages, costs
and expenses of whatever nature (whether actual or contingent)
directly or indirectly suffered or incurred, by the indemnified parties
whatsoever arising from or in connection with the Facility. The Investor/s
shall not hold the AMC liable and shall keep it indemnified for the
following:
1. For any transaction using the Facilities carried out in good faith by
the AMC on instructions of the Investor/s.
2. For any loss or damage incurred or suffered by the Investor/s due to
any error, defect, failure or interruption in the provision of the Facility.
3. For any negligence / mistake or misconduct by the Investor/s.
4. For any breach or non-compliance by the Investor/s of the
rules/terms and conditions stated in this Document.
5. For accepting instructions given by any one of the Investor/s in case
of joint account/s having mode of operations as ““Anyone or
survivor”.
6. For not carrying out any such instructions where the AMC has reason
to believe (which decision of the AMC the Investor/s shall not
question or dispute) that the instructions given are not genuine or
are otherwise improper, unclear, vague or raise a doubt.
7. For carrying out a transaction after such reasonable verification as
the AMC may deem fit regarding the identity of the Investor/s
MISCELLANEOUS:
1) The Investor/s agrees and understands that while this Facility is being
introduced without any charges being levied; in case charges are
to be levied on a future date he agrees to pay such charges and
nonpayment in such an event can lead to termination of these
services.
2) Any dispute arising out of or in connection with these Terms and
Conditions, will be referred to the arbitration of a sole arbitrator to
be appointed by the AMC, in accordance with the Arbitration &
Conciliation Act, 1996.
3) These Terms and Conditions are subject to applicable SEBI (Mutual
Funds) Regulations, 1996 as amended from time to time and
includes Guidelines, Circular press release or Notification that may
be issued.
EASY SMS FACILITY
This facility is available for individual investors (registration process to be
completed by the investor to avail this facility). For details of the
registration process, please contact our Investor Service
Centres/website of the AMC.
All individual investors applying on “Sole” or “Joint (Anyone or Survivor)”
basis in their own capacity shall be eligible to avail the facility for
permitted transactions i.e. for lump sum purchase, redemption and
80 Axis Liquid Fund
switch transactions on the below mentioned terms and conditions:
“Terms and Conditions” mean the terms and conditions set out below
by which the Facility shall be used/availed by the Investors and shall
include all modifications and supplements made by AMC thereto from
time to time.
Initial Investment has to be through the physical mode wherein the
Investor has to sign a one time debit mandate for bank accounts
pertaining to designated banks with which the AMC may have an
arrangement. This facility is extended to the bank with which the Fund
would have an arrangement from time to time. Transaction amount
may be restricted by the AMC from time to time in line with prudent risk
management requirements and to protect the overall interest of the
Investors. Investor will be allowed transactions over SMS after 30 days
from the date of submission of one time mandate. Investor will not be
permitted to avail the facility for Redemptions/Switch transactions if
bank mandate is changed within last 15 days. AMC will have right to
modify the procedure of transaction processing without any prior
intimation to the Investor.
The AMC has a right to ask such information (Key Information) from the
available data of the Investors before allowing him access to avail the
Facility. If for any reason, the AMC is not satisfied with the replies of the
Investors, the AMC has at its sole discretion the right of refusing access
without assigning any reasons to the Investors.
This facility can be availed only through the registered mobile number
of the Investor.
It is clarified that the Facility is only with a view to accommodate
/facilitate the Investors and offered at the sole discretion of the AMC.
The AMC is not bound and/or obliged in any way to give access to
Facility to Investors. The Investors shall check his/her account records
carefully and promptly. If the Investors believe that there has been a
mistake in any transaction using the Facility, or that unauthorized
transaction has been effected, the Investors shall notify the AMC
immediately. If the Investors defaults in intimating the discrepancies in
the statement within a period of fifteen days of receipt of the
statements, he waives all his rights to raise the same in favour of the
AMC, unless the discrepancy /error is apparent on the face of it. By
opting for the facility the Investors hereby irrevocably authorizes and
instructs the AMC to act as his /her agent and to do all such acts as
AMC may find necessary to provide the Facility.
The Investors shall at all times be bound by any modifications and/or
variations made to these Terms and Conditions by the AMC at their sole
discretion and without notice to them.
The Investor agrees and confirms that the AMC has the right to ask the
Investor for an oral or written confirmation of any transaction request
using the Facility and/or any additional information regarding the
Account of the Investor. The Investor agrees and confirms that the AMC
may at its sole discretion suspend the Facility in whole or in part at any
time without prior notice. The Investor shall not assign any right or
interest or delegate any obligation arising herein. The Investor shall take
responsibility for all the transactions conducted by using the Facility and
will abide by the record of transactions generated by the AMC. Further,
the Investor confirms that such records generated by the AMC shall be
conclusive proof and binding for all purposes and may be used as
evidence in any proceedings and unconditionally waives all objections
in this behalf.
81 Axis Liquid Fund
The Investor agrees that use of the Facility will be deemed acceptance
of the Terms and Conditions and the Investor will unequivocally be
bound by these Terms and Conditions. The Investor agrees that all
transactions received shall be eligible for applicable NAV subject to
necessary formalities to be complied by the AMC in case of transaction
through the facility on or before the uniform cut off time.
Requests like change in bank mandate, change of nomination, change
in mode of holding, change of address or such other requests as the
AMC may decide from time to time will not be permitted using the
facility.
Investors should SMS HELP PURCHASE/REDEMPTION/SWITCH to
9212010033 in order to avail the facility post registration. The procedure
for availing the facility will be communicated to the investor.
Alternatively, the investor can also get in touch with the Investor Service
Centres of the AMC.
KFin Technologies Pvt. Ltd., Registrar & Transfer Agents to Axis Mutual
Fund having its office at Unit: Axis Mutual FundSelenium, Tower B, Plot
number 31 & 32, Financial District, Gachibowli, Nanakramguda,
Serilingampally Mandal, Hyderabad - 500032 will be the official point of
acceptance for such transactions received for Axis Mutual Fund
schemes.
The investor agrees to indemnify and keep indemnified Axis AMC its
Directors, employees, representatives of the AMC, Axis Mutual Fund and
Trustees (indemnified parties) from and against all actions, claims,
demands, liabilities, obligations, losses, damages, costs and expenses of
whatever nature (whether actual or contingent) directly or indirectly
suffered or incurred, against the indemnified parties whatsoever arising
from or in connection with the Easy Call Facility. The Investor/s shall not
hold the AMC liable and shall keep it indemnified for the following:
1) For any transaction using the Facilities carried out in good faith by
the AMC on instructions of the Investor/s.
2) For any loss or damage incurred or suffered by the Investor/s due to
any error, defect, failure or interruption in the provision of the Facility.
3) For any negligence / mistake or misconduct by the Investor/s.
4) For any breach or non-compliance by the Investor/s of the
rules/terms and conditions stated herein.
5) For accepting instructions given by any one of the Investor/s in case
of joint account/s having mode of operations as “anyone or
survivor”.
6) For not carrying out any such instructions where the AMC has reason
to believe (which decision of the AMC the Investor/s shall not
question or dispute) that the instructions given are not genuine or
are otherwise improper, unclear, vague or raise a doubt.
7) For carrying out a transaction after such reasonable verification as
the AMC may deem fit regarding the identity of the Investor/s
MISCELLANEOUS:
1) The Investor/s agrees and understands that while this Facility is being
introduced without any charges being levied; in case charges are
to be levied on a future date he agrees to pay such charges and
nonpayment in such an event can lead to termination of these
services.
2) Any dispute arising out of or in connection with these Terms and
Conditions, will be referred to the arbitration of a sole arbitrator to
be appointed by the AMC, in accordance with the Arbitration &
Conciliation Act, 1996.
82 Axis Liquid Fund
3) These Terms and Conditions are subject to applicable SEBI (Mutual
Funds) Regulations, 1996 as amended from time to time and
includes Guidelines, Circular press release or Notification that may
be issued.
Dividend Sweep Option (DSO)
The terms and conditions of Dividend Sweep Option (DSO) are as
follows:
1) Dividend Sweep Option (DSO) is a facility wherein unit holder(s) of
eligible scheme(s) [hereinafter referred to as "Source Scheme(s)"] of
Axis Mutual Fund can opt to automatically invest the dividend (as
reduced by the amount of applicable statutory levy) declared by the
eligible Source Scheme(s) into other eligible Scheme(s) [hereinafter
referred to as "Target Scheme(s)"] of Axis Mutual Fund.
2) The facility is available under all the open ended schemes of Axis
Mutual Fund except Exchange Traded Funds (ETFs)
3) DSO facility is available to unit holder(s) only under the Dividend Plan
/ Option of the Source Scheme(s). However, the DSO facility will not be
available to unit holder(s) under the Daily Dividend Option in the Source
Scheme(s). Unit holder’s enrolment under the DSO facility will
automatically override any previous instructions for 'Dividend Payout' or
'Dividend Reinvestment' facility in the Source Scheme.
4) The enrolment for DSO facility should be for all units under the
respective Dividend Plan / Option of the Source Scheme. Instructions for
part Dividend Transfer and part Dividend Payout / Reinvestment will not
be accepted. The dividend amount will be invested in the Target
Scheme under the same folio. Accordingly, the unit holder(s) details
and mode of holding in the Target Scheme will be same as in the
Source Scheme.
5) The enrolment to avail of DSO facility has to be specified for each
Scheme/Plan/Option separately and not at the folio level.
6) Under DSO, dividend declared (as reduced by the amount of
applicable statutory levy and deductions) in the Source scheme
(subject to minimum of Rs. 1,000/-) will be automatically invested into
the Target Scheme, as opted by the unit holder, on the immediate next
Business Day after the Record Date at the applicable NAV of the Target
Scheme, subject to applicable load as specified under paragraph 9
below and accordingly equivalent units will be allotted in the Target
Scheme, subject to the terms and conditions of the respective Target
Scheme.
7) The provision for 'Minimum Application Amount' specified in the
respective Target Scheme's Scheme Information Document (SID) will not
be applicable under DSO. E.g. the minimum application amount for
new investors in Axis Bluechip Fund - Growth Plan is 5,000/-. However in
case of DSO, a Unit Holder can avail of the facility irrespective of the
amount of dividend (subject to a minimum of 1,000/-).
8) The Minimum amount of dividend eligible for transfer under Dividend
Sweep Option is 1,000/- (Rupees One Thousand Only). In case the
dividend sweep is being less than eligible amount, then the dividend will
be re-invested in source scheme/ payout as per the existing option.
9) Load Structure:
The dividend amount to be invested under the DSO from the Source
Scheme to the Target Scheme shall be invested by subscribing to the
units of the Target Scheme at applicable NAV, subject to payment of
Entry/Exit Load as under:
Entry Load (Target Scheme)
83 Axis Liquid Fund
Direct Applications & Applications routed through any
distributor/agent/broker: Nil
Exit Load (Source Scheme): As applicable as per the relevant SID
Exit Load (Target Scheme): As per the relevant SID(s)
The Trustee/AMC reserves the right to change the load structure under
the DSO Facility at any time in future on a prospective basis.
10) The Account Statement will be issued by mail or by email (if opted
by the unit holder) to the unit holder as per regulations. In case of
specific request received from unitholders, the Mutual Fund shall
endeavour to provide the account statement to the unitholders after
every transaction of Dividend Transfer.
11) Unitholders who wish to enroll for DSO facility are required to fill DSO
Enrolment Form available with the ISCs, distributors/agents and also
displayed on the website www.axismf.com. The DSO Enrolment Form
should be completed in English in Block Letters only. The DSO Enrolment
Form complete in all aspects should be submitted at any of the Investor
Services centre (ISCs) of Axis Mutual Fund.
12) The request for enrolment for DSO must be submitted at least 10
days prior to the Record Date for the dividend. In case of the condition
not being met, the enrolment would be considered valid from the
immediately succeeding Record Date of the dividend, provided the
difference between the date of receipt of a valid application for
enrolment under DSO and the next Record Date for dividend is not less
than 10 days.
13) Unitholder(s) are advised to read the SID(s) of Target Scheme(s)
carefully before investing. The SID(s) / Key Information Memorandum(s)
of the respective Scheme(s) are available with the ISCs of Axis Mutual
Fund, brokers / distributors and also displayed on the Axis Mutual Fund
website i.e. – www.axismf.com
14) Unit holders will have the right to discontinue the DSO facility at any
time by sending a written request to the ISC. Notice of such
discontinuance should be received at least 10 days prior to the
Dividend Record Date. On receipt of such request, the DSO facility will
be terminated. At the time of discontinuation of DSO facility, the Unit
holders should indicate their choice of option i.e. dividend reinvestment
or dividend payout. In the event the Unitholder does not indicate his
choice of dividend option, the dividend, if any, will be reinvested
(compulsory payout if dividend reinvestment option is not available) in
the Source Scheme. Once the request for DSO is registered, then it shall
remain in force unless it is terminated as aforesaid.
15) The Trustee/AMC reserves the right to change/modify the terms and
conditions of the DSO.
The Trustee reserves the right to change/ modify the terms and
conditions of the DSO at a later date on a prospective basis.
Trigger facility:
Trigger is an event on the happening of which, the Fund will
automatically redeem / switch the units, as the case may be, on behalf
of the investor, on the date of happening of the event. Accordingly, a
trigger will activate a transaction when the event selected for has
reached the trigger point. All redemptions/ switches etc. linked to
triggers will always be at the applicable NAV based prices of the day
on which the event occurs. The investors opting for the Trigger facility
will also have right to redeem/ switch their holdings before happening
84 Axis Liquid Fund
of the trigger event. Please note that the trigger is an additional facility
provided to the unit holders to save time on completing the
redemption/ switch formalities on happening of a particular
predetermined event. Trigger is not an assurance on part of AMC /
Fund to the investor that he / she will receive a particular amount of
money / appreciation and / or a percentage on redemption or will get
a particular amount of capital appreciation or will minimise the loss to
investor to a particular amount or percentage.
1. Schemes for which the facility is available:
Transferor Scheme(s) Transferee Scheme(s)
Axis Liquid Fund Axis Liquid Fund
Axis Treasury Advantage
Fund
Axis Treasury Advantage
Fund
Axis Short Term Fund Axis Short Term Fund
Axis Banking & PSU Debt
Fund
Axis Banking & PSU Debt
Fund
Axis Bluechip Fund Axis Bluechip Fund
Axis Midcap Fund Axis Midcap Fund
Axis Focused 25 Fund Axis Focused 25 Fund
Axis Triple Advantage Fund Axis Triple Advantage Fund
Axis Regular Saver Fund Axis Regular Saver Fund
Axis Gold Fund Axis Gold Fund
Axis Dynamic Bond Fund Axis Dynamic Bond Fund
Axis Strategic Bond Fund Axis Strategic Bond Fund
Axis Long Term Equity Fund Axis Long Term Equity Fund
Axis Children's Gift Fund Axis Children's Gift Fund
Axis Smallcap Fund Axis Smallcap Fund
Axis Corporate Debt Fund Axis Corporate Debt Fund
Axis Dynamic Equity Fund Axis Dynamic Equity Fund
Axis Gilt Fund
Axis Equity Hybrid Fund Axis Equity Hybrid Fund
Axis Multicap Fund Axis Multicap Fund
Axis Growth Opportunities
Fund
Axis Growth Opportunities
Fund
Axis Ultra Short Term Fund Axis Ultra Short Term Fund
Axis Overnight Fund Axis Overnight Fund
Axis Nifty 100 Index Fund Axis Nifty 100 Index Fund
@ Investors who have completed the lock-in period specified in the
Scheme Information Document may apply for trigger facility.
2. Under the Trigger facility, investors will have the following options on
the date of happening of the event:
a) Full Redemption / Switch Out
b) Redemption / Switch Out to the extent of capital appreciation only
c) Redemption / Switch Out to the extent of Principal amount only
The trigger facility is available only for the options specified above and
is not available for any adhoc amount that the investor may specify.
3. The investors can select any one of the following trigger option(s)
under various plans / options of the scheme(s):
i. Option to redeem / switch out in the event, Nifty Index reaches or
exceeds a specified level, at the end of any business day.
Under this option, the investor can specify that if the index (NIFTY)
reaches or exceeds a particular level at the close of any business day,
then the amount specified by the investor will be either redeemed /
switched to the selected transferee scheme.
85 Axis Liquid Fund
ii. Option to redeem / switch out in the event Nifty Index reaches or
goes below a specified level, at the end of any business day.
Under this facility, the investor can specify that if the index (NIFTY)
reaches a particular level or goes below that at the close of any
business day, then the amount specified shall either be redeemed /
switched to the selected transferee scheme.
iii. Option to redeem / switch out in the event NAV reaches or exceeds
a specified level.
Under this facility, the investor can specify the Net Asset Value (NAV) on
reaching / exceeding which the amount specified will be redeemed /
switched to the selected transferee scheme.
iv. Option to redeem / switch out in the event NAV appreciates by a
specified percentage.
Under this facility, the investor can choose a specific percentage, by
which, if the scheme(s)NAV appreciates, then the amount specified will
be redeemed / switched to the selected transferee scheme.
v. Option to redeem / switch out in the event NAV appreciates or
depreciates by a specified percentage.
Under this facility, the investor can choose a specific percentage, by
which, if the scheme(s) NAV appreciates or depreciates, then the
amount specified will be redeemed / switched to the selected
transferee scheme.
vi. Option to redeem / switch out in the event NAV depreciates by a
specified percentage
Under this facility, the investor can choose a specific percentage, by
which, if the scheme(s) NAV depreciates, then the amount specified will
be redeemed / switched to the selected transferee scheme.
Notes:-
A. For point no. iii above - The NAV level (in INR terms) specified by the
Unit holder must be in multiples of 5 paisa e.g. INR 10.50, INR.10.55,
INR.10.60 etc.
B. For points no. iv, v and vi above - The NAV percentage level
specified by the Unit holder must be in multiples of 1 %.
Terms & Conditions :
1. On the trigger date (the day of event occurrence), the applicable
amount will be redeemed /switched from the transferor scheme at
the closing NAV of the day i.e. the trigger date.
2. Switches can be made only where so permitted by the respective
Scheme Information Document of the Transferor/ Transferee
schemes.
3. Once a trigger is activated and a transaction is processed, the
same will not be reversed and it will be final and binding upon the
Unit holder.
4. Trigger once activated would expire and would not be executed
again.
5. Trigger facility shall be applicable subject to payment of exit load in
the transferor scheme(s), if any.
6. The specified trigger will fail, if the investor(s) do not maintain
sufficient balance in the scheme at the time of registration of trigger
and on the trigger date.
7. Trigger will not get executed in case units are pledged or where lien
is marked on units, at the time of receipt of request for trigger.
8. Day closing Nifty Index level would be considered in case of triggers
linked to Nifty.
86 Axis Liquid Fund
9. In case of partial or full switch/redemption, any trigger already
registered for a particular transaction will be deactivated.
10. "Minimum Application Amount/ Minimum Additional Investment
Amount" specified in the Scheme Information Document of the
transferee schemes will not be applicable for Switches based on
specified triggers limits being achieved.
11. NAV for switch /redemption: NAV of the trigger day will be
considered for the purpose of Redemption/ switch. In case of non-
business day in debt schemes but business day in case of equity
schemes, switch-out from equity schemes will be processed on the
trigger day and switch-in to Debt/ Liquid schemes will be processed
on the next business day.
12. In case, if no plan / option is specified for switch transaction under
trigger option, default plan /option, as specified in respective
Scheme Information Document will be considered.
13. In case of any ambiguity or where the investor fails to specify
whether the redemption / switch to be made is full or to the extent
of capital appreciation or to the extent of Principal amount only,
the transaction will not be processed.
14. All requests for registering or deactivating the trigger facility shall be
subject to an advance notice of 10 (Ten) working days. Investors
can deactivate the trigger facility by sending a written request to
the Investor Service Centers.
Application via electronic mode:
Subject to the Investor fulfilling certain terms and conditions stipulated
by the AMC as under, Axis Asset Management Company Ltd., Axis
Mutual Fund or any other agent or representative of the AMC, Mutual
Fund, the Registrar & Transfer Agents may accept transactions through
any electronic mode including fax/web transactions as permitted by
SEBI or other regulatory authorities:
a) The acceptance of the fax/web/electronic transactions will be
solely at the risk of the transmitter of the fax/web/ electronic
transactions and the Recipient shall not in any way be liable or
responsible for any loss, damage caused to the transmitter directly
or indirectly, as a result of the transmitter sending or purporting to
send such transactions.
b) The recipient will also not be liable in the case where the transaction
sent or purported to be sent is not processed on account of the fact
that it was not received by the Recipient.
c) The transmitter’s request to the Recipient to act on any
fax/web/electronic transmission is for the transmitter’s convenience
and the Recipient is not obliged or bound to act on the same.
d) The transmitter acknowledges that fax/web/electronic transactions
is not a secure means of giving instructions/ transactions requests
and that the transmitter is aware of the risks involved including those
arising out of such transmission.
e) The transmitter authorizes the recipient to accept and act on any
fax/web/ electronic transmission which the recipient believes in
good faith to be given by the transmitter and the recipient shall be
entitled to treat any such fax/web/ electronic transaction as if the
same was given to the recipient under the transmitter’s original
signature.
f) The transmitter agrees that security procedures adopted by the
recipient may include signature verification, telephone call backs
which may be recorded by tape recording device and the
transmitter consents to such recording and agrees to cooperate
with the recipient to enable confirmation of such fax/web/
electronic transaction requests.
g) The transmitter accepts that the fax/web/ electronic transactions,
where applicable shall not be considered until time stamped as a
87 Axis Liquid Fund
valid transaction request in the Scheme in line with the Regulations.
In consideration of the recipient from time to time accepting and at its
sole discretion acting on any fax/ web/electronic transaction request
received / purporting to be received from the transmitter, the
transmitter agrees to indemnify and keep indemnified the AMC,
Directors, employees, agents, representatives of the AMC, Axis Mutual
Fund and Trustee from and against all actions, claims, demands,
liabilities, obligations, losses, damages, costs and expenses of whatever
nature (whether actual or contingent) directly or indirectly suffered or
incurred, sustained by or threatened against the indemnified parties
whatsoever arising from or in connection with or any way relating to the
indemnified parties in good faith accepting and acting on fax/web/
electronic transaction requests including relying upon such fax/
electronic transaction requests purporting to come from the Transmitter
even though it may not come from the Transmitter.
The AMC reserves the right to discontinue the facility (ies) at any point
of time.
Distributors offer goal based financial planning (facility) to their clients.
In order to encourage Investors to plan for their investments based on
life goals (e.g. child’s education, retirement, wealth creation, etc), the
Asset Management Company would assist in providing such facilities.
Since such facilities are aimed at helping Investors achieving their
financial goals, certain features offered by Axis Mutual Fund may not be
offered/available under such goal based investment folios. Under a
folio, no additional purchase, switch and part redemption would be
allowed. Requests for changes in goals/goal details will not be
accepted. Under normal circumstances, there is no restriction on the
right of the investor to transact directly with the mutual fund.
Multiple goals based investments can be applied for under one
application form and a single cheque in the name of ‘Axis Mutual Fund
First Investor name’ or ‘Axis Mutual Fund Permanent Account Number’
would have to be provided by the Investor. Transaction charge would
be charged at application form level.
In case there is a broker code change/the investor is desirous of being a
direct investor with the mutual fund, the investment will cease to be a
part of the facility. Investors may note that investments under such
facilities would be based on advice from the distributor /Financial
advisor and the Asset Management Company acts purely in capacity
as a facilitator for such transactions. The distributor(s) may choose to
modify/change or discontinue the above stated facility. In such a case
the investors may continue their investment with the AMC/any other
distributor.
For further details/clarifications investors may contact the distributor(s)
or the ISCs of the AMC.
Accounts Statements
On acceptance of the application for subscription, an allotment
confirmation specifying the number of units allotted by way of e-
mail and/or SMS within 5 business days from the date of receipt of
transaction request will be sent to the Unit Holders registered e-mail
address and/or mobile number.
In case of Unit Holders holding units in the dematerialized mode, the
Fund will not send the account statement to the Unit Holders. The
statement provided by the Depository Participant will be equivalent
to the account statement.
For those Unit holders who have provided an e-mail address, the
AMC will send the account statement by e-mail.
88 Axis Liquid Fund
Unit holder will be required to download and print the documents
after receiving e-mail from the Mutual Fund. Should the Unit holder
experience any difficulty in accessing the electronically delivered
documents, the Unit holder shall promptly advise the Mutual Fund to
enable the Mutual Fund to make the delivery through alternate
means. It is deemed that the Unit holder is aware of all security risks
including possible third party interception of the documents and
contents of the documents becoming known to third parties.
The Unit holder may request for a physical account statement by
writing/calling the AMC/ISC/Registrar &Transfer Agent. In case of
specific request received from the Unit Holders, the AMC/Fund will
provide the Account Statement to the Investors within 5 business
days from the receipt of such request.
The AMC shall issue Unit certificates within 5 business days from the
date of receipt of request where the applicant so desires.
CONSOLIDATED ACCOUNT STATEMENT (CAS)
CAS is an account statement detailing all the transactions and holding
at the end of the month including transaction charges paid to the
distributor, across all schemes of all mutual funds. CAS issued to investors
shall also provide the total purchase value/cost of investment in each
scheme.
Further, CAS issued for the half-year (September/ March) shall also
provide
a. The amount of actual commission paid by AMC/Mutual Fund to
distributors (in absolute terms) during the half-year period against
the concerned investor’s total investments in each scheme.
b. The scheme’s average Total Expense Ratio (in percentage terms)
along with the break up between Investment and Advisory fees,
Commission paid to the distributor and Other expenses for the
period for each scheme’s applicable plan (regular or direct or both)
where the concerned investor has actually invested in.
The word transaction will include purchase, redemption, switch,
dividend payout, dividend reinvestment, systematic investment plan,
systematic withdrawal plan and systematic transfer plan.
a) For Unitholders not holding Demat Account:
CAS for each calendar month shall be issued, on or before tenth day of
succeeding month by the AMC.
The AMC shall ensure that a CAS for every half yearly (September/
March) is issued, on or before tenth day of succeeding month, detailing
holding at the end of the six month, across all schemes of all mutual
funds, to all such investors in whose folios no transaction has taken
place during that period.
The AMC shall identify common investors across fund houses by their
Permanent Account Number (PAN) for the purposes of sending CAS. In
the event the account has more than one registered holder, the first
named Unit Holder shall receive the Account Statement.
The AMC will send statement of accounts by e-mail where the Investor
has provided the e-mail id. Additionally, the AMC may at its discretion
send Account Statements individually to the investors.
b) For Unitholders holding Demat Account:
SEBI vide its circular no. CIR/MRD/DP/31/2014 dated November 12, 2014,
in order to enable a single consolidated view of all the investments of
89 Axis Liquid Fund
an investor in Mutual Fund and securities held in demat form with
Depositories, has required Depositories to generate and dispatch a
single CAS for investors having mutual fund investments and holding
demat accounts.
In view of the aforesaid requirement, for investors who hold demat
account, for transactions in the schemes of Axis Mutual Fund on or after
February 1, 2015, a CAS, based on PAN of the holders, will be sent by
Depositories to investors holding demat account, for each calendar
month within 10th day of the succeeding month to the investors in
whose folios transactions have taken place during that month.
CAS will be sent by Depositories every half yearly (September/March),
on or before 10th day of succeeding month, detailing holding at the
end of the six month, to all such investors in whose folios and demat
accounts there have been no transactions during that period.
CAS sent by Depositories is a statement containing details relating to all
financial transactions made by an investor across all mutual funds viz.
purchase, redemption, switch, dividend payout, dividend reinvestment,
systematic investment plan, systematic withdrawal plan, systematic
transfer plan (including transaction charges paid to the distributor) and
transaction in dematerialized securities across demat accounts of the
investors and holding at the end of the month.
In case of demat accounts with nil balance and no transactions in
securities and in mutual fund folios, the depository shall send account
statement in terms of regulations applicable to the depositories.
Investors whose folio(s)/ demat account(s) are not updated with PAN
shall not receive CAS.
Consolidation of account statement is done on the basis of PAN.
Investors are therefore requested to ensure that their folio(s)/ demat
account(s) are updated with PAN. In case of multiple holding, it shall be
PAN of the first holder and pattern of holding.
For Unit Holders who have provided an e-mail address to the Mutual
Fund or in KYC records, the CAS is sent by e-mail. However, where an
investor does not wish to receive CAS through email, option is given to
the investor to receive the CAS in physical form at the address
registered in the Depository system.
Investors who do not wish to receive CAS sent by depositories have an
option to indicate their negative consent. Such investors may contact
the depositories to opt out. Investors who do not hold demat account
continue to receive CAS sent by RTA/AMC, based on the PAN, covering
transactions across all mutual funds as per the current practice.
In case an investor has multiple accounts across two depositories; the
depository with whom the account has been opened earlier will be the
default depository.
The dispatches of CAS by the depositories constitute compliance by the
AMC/ the Fund with the requirement under Regulation 36(4) of SEBI
(Mutual Funds) Regulations. However, the AMC reserves the right to
furnish the account statement in addition to the CAS, if deemed fit in
the interest of investor(s).
Investors whose folio(s)/demat account(s) are not updated with PAN
shall not receive CAS. Investors are therefore requested to ensure that
their folio(s)/demat account(s) are updated with PAN.
90 Axis Liquid Fund
For folios not included in the CAS (due to non-availability of PAN), the
AMC shall issue monthly account statement to such Unit holder(s), for
any financial transaction undertaken during the month on or before
10th of succeeding month by mail or email.
For folios not eligible to receive CAS (due to non-availability of PAN), the
AMC shall issue an account statement detailing holding across all
schemes at the end of every six months (i.e. September/March), on or
before 10th day of succeeding month, to all such Unit holders in whose
folios no transaction has taken place during that period shall be sent by
mail/e-mail.
Option to hold units in dematerialised (demat) form
Investors shall have an option to receive allotment of Mutual Fund units
in their demat account while subscribing to the Scheme in terms of the
guidelines/ procedural requirements as laid by the Depositories
(NSDL/CDSL) from time to time.
Investors desirous of having the Units of the Scheme in dematerialized
form should contact the ISCs of the AMC/Registrar.
Where units are held by investor in dematerialized form, the demat
statement issued by the Depository Participant would be deemed
adequate compliance with the requirements in respect of dispatch of
statements of account.
In case investors desire to convert their existing physical units
(represented by statement of account) into dematerialized form or vice
versa, the request for conversion of units held in physical form into
Demat (electronic) form or vice versa should be submitted alongwith a
Demat/Remat Request Form to their Depository Participants. In case the
units are desired to be held by investor in dematerialized form, the KYC
performed by Depository Participant shall be considered compliance of
the applicable SEBI norms.
The demat option is provided to all schemes and options of Axis Mutual
Fund except for all daily and weekly dividend options under all debt
and liquid schemes.
Units held in Demat form are freely transferable in accordance with the
provisions of SEBI (Depositories and Participants) Regulations, as may be
amended from time to time. Transfer can be made only in favour of
transferees who are capable of holding units and having a Demat
Account. The delivery instructions for transfer of units will have to be
lodged with the Depository Participant in requisite form as may be
required from time to time and transfer will be affected in accordance
with such rules / regulations as may be in force governing transfer of
securities in dematerialized mode.
The demat option is provided to all schemes and options of Axis Mutual
Fund except for all daily and weekly dividend options under all debt
and liquid schemes.
For details, Investors may contact any of the Investor Service Centres of
the AMC.
Dividend The Dividend warrants/cheque/demand draft shall be dispatched to
the Unit holders within 30 days of the date of declaration of the
Dividend.
The Dividend proceeds will be paid by way of EFT / NEFT / RTGS / Direct
91 Axis Liquid Fund
credits/ any other electronic manner if sufficient banking details are
available with the Mutual Fund for the investor.
In case of specific request for Dividend by warrants/cheques/demand
drafts or unavailability of sufficient details with the Mutual Fund, the
Dividend will be paid by warrant/cheques/demand drafts and
payments will be made in favour of the Unit holder (registered holder of
the Unit or, if there are more than one registered holder, only to the first
registered holder) with bank account number furnished to the Mutual
Fund (Please note that it is mandatory for the Unit holders to provide the
Bank account details as per the directives of SEBI).
Redemption How to Redeem
A Transaction Slip can be used by the Unit Holder to request for
Redemption. The requisite details should be entered in the Transaction
Slip and submitted at an ISC/Official Point of Acceptance. Transaction
Slips can be obtained from any of the ISCs/Official Points of
Acceptance. Investor can also place redemption through Telephone
using Easy Call/ Easy SMS facility or may redeem Online through the
AMC’s website subject to the terms and conditions as may be
stipulated from time to time.
Procedure for payment of redemption.
1. Resident Investors
Redemption proceeds will be paid to the investor through Real Time
Gross Settlement (RTGS), NEFT, Direct Credit, Cheque or Demand Draft.
a) If investor had provided IFSC code in the application form, by
default redemption proceeds shall be to be credited to Investor’s
account through RTGS/NEFT.
b) If Investor has neither provided IFSC code nor the NEFT code but
have a bank account with Banks with whom the Fund would have
an arrangement for Direct Credit from time to time, the proceeds
will be paid through direct credit.
c) Incase if investor bank account does not fall in the above a to b
categories, redemption proceeds will be paid by cheques/demand
drafts, marked "Account Payee only" and drawn in the name of the
sole holder / first-named holder (as determined by the records of
the Registrar).
The bank name and bank account number, as specified in the
Registrar's records, will be mentioned in the cheque/demand draft.
The cheque will be payable at par at all bank branch or specific
cities. If the Unit Holder resides in any other city, he will be paid by a
demand draft payable at the city of his residence and the demand
draft charges shall be borne by the AMC (please refer SAI for
details).
The redemption proceeds will be sent by courier or (if the addressee
city is not serviced by the courier) by registered post/UCP. The
dispatch for the purpose of delivery through the courier / postal
department, as the case may be, shall be treated as delivery to the
investor. The AMC / Registrar are not responsible for any delayed
delivery or non-delivery or any consequences thereof, if the
dispatch has been made correctly as stated in this paragraph.
The AMC reserves the right to change the sequence of payment
from (a) to (c) without any prior notice
For Unit holders who have given specific request for Cheque/Demand
Draft Redemption proceeds will be paid by cheque/demand drafts
and payments will be made in favour of the Unit holder with bank
92 Axis Liquid Fund
account number furnished to the Mutual Fund. (Please note that it is
mandatory for the Unit holders to provide the Bank account details as
per the directives of SEBI). Redemption cheques will be sent to the Unit
holder’s address.
The Trustee, at its discretion at a later date, may choose to alter or add
other modes of payment.
2. Non-Resident Investors/PIO/OCI
For NRIs, Redemption proceeds will be remitted depending upon the
source of investment as follows:
(i) Repatriation basis
When Units have been purchased through remittance in foreign
exchange from abroad or by cheque / draft issued from proceeds of
the Unit Holder's FCNR deposit or from funds held in the Unit Holder's Non
Resident (External) account kept in India, the proceeds can also be
sent to his Indian address for crediting to his NRE / FCNR / non-resident
(Ordinary) account, if desired by the Unit Holder.
(ii) Non-Repatriation basis
When Units have been purchased from funds held in the Unit Holder's
non-resident (Ordinary) account, the proceeds will be sent to the Unit
Holder's Indian address for crediting to the Unit Holder's non-resident
(Ordinary) account.
(iii) FPIs
For FPIs, the designated branch of the authorized dealer may allow
remittance of net sale / maturity proceeds (after payment of taxes) or
credit the amount to the Foreign Currency account or Non-resident
Rupee account of the FPI maintained in accordance with the approval
granted to it by the RBI. The Fund will not be liable for any delays or for
any loss on account of any exchange fluctuations, while converting the
rupee amount in foreign exchange in the case of transactions with
NRIs/FPIs. The Fund may make other arrangements for effecting
payment of redemption proceeds in future.
Effect of Redemptions
The number of Units held by the Unit Holder in his / her / its folio will stand
reduced by the number of Units Redeemed. Units once redeemed will
be extinguished and will not be re-issued.
The normal processing time may not be applicable in situations where
requisite details are not provided by investors/Unit holders. The AMC will
not be responsible for any loss arising out of fraudulent encashment of
cheques and/or any delay/loss in transit.
AMC reserves the right to provide the facility of redeeming Units of the
Scheme through an alternative mechanism including but not limited to
online transactions on the Internet, as may be decided by the AMC
from time to time. The alternative mechanism may also include
electronic means of communication such as redeeming Units online
through the AMC Website or any other website, etc. The alternative
mechanisms would be applicable to only those investors who opt for
the same in writing and/or subject to investor fulfilling such conditions as
AMC may specify from time to time.
Signature mismatches
If the AMC / Registrar finds a signature mismatch, while processing the
redemption/ switch out request, then the AMC/ Registrar reserves the
93 Axis Liquid Fund
right to process the redemption only on the basis of supporting
documents confirming the identity of the investors. List of such
documents would be notified by AMC from time to time on its website.
Important Note: All applicants for Purchase of Units /Redemption of Units
must provide a bank name, bank account number, branch address,
and account type in the Application Form.
Unclaimed Redemptions and Dividends
The unclaimed Redemption and dividend amounts shall be deployed
by the Fund in money market instruments and such other
instruments/securities as maybe permitted from time to time. The
investment management fee charged by the AMC for managing such
unclaimed amounts shall not exceed 50 basis points. The circular also
specifies that investors who claim these amounts during a period of
three years from the due date shall be paid at the prevailing NAV. Thus,
after a period of three years, this amount can be transferred to a pool
account and the investors can claim the said amounts at the NAV
prevailing at the end of the third year. In terms of the circular, the onus
is on the AMC to make a continuous effort to remind investors through
letters to take their unclaimed amounts. The details of such unclaimed
amounts shall be disclosed in the annual report sent to the Unit Holders.
Further, according to circular no. SEBI/HO/IMD/DF2/CIR/P/ 2016/37
dated February 25, 2016 the unclaimed Redemption and dividend
amounts may be deployed in separate plan of Liquid scheme/Money
market mutual fund scheme floated by Mutual Funds specifically for
deployment of the unclaimed Redemption and dividend amounts.
Delay in payment of
Redemption /
Repurchase proceeds
The AMC shall be liable to pay interest to the Unit holders at 15% or such
other rate as may be prescribed by SEBI from time to time, in case the
Redemption / Repurchase proceeds are not made within 10 Business
Days of the date of Redemption / Repurchase. However, the AMC will
not be liable to pay any interest or compensation or any amount
otherwise, in case the AMC / Trustee is required to obtain from the
investor / Unit holders verification of identity or such other details relating
to subscription for Units under any applicable law or as may be
requested by a Regulatory Agency or any government authority, which
may result in delay in processing the application.
Facility to transact in
units of the Schemes
through MF Utility
portal & MFUI Points of
Services pursuant to
appointment of MF
Utilities India Pvt. Ltd.
AMC has entered into an Agreement with MF Utilities India Private Ltd.
(“MFUI”), a “Category II – Registrar to an Issue” under SEBI (Registrars to
an Issue and Share Transfer Agents) Regulations, 1993, for usage of MF
Utility (“MFU”) - a shared services initiative of various Asset Management
Companies, which acts as a transaction aggregation portal for
transacting in multiple Schemes of various Mutual Funds with a single
form and a single payment instrument.
Accordingly, investors are requested to note that in addition to the
existing official points of acceptance (“OPA”) for accepting
transactions in the units of the schemes of the Axis Mutual Fund as
disclosed in the SID, www.mfuonline.com i.e. online transaction portal of
MFU and the authorized Points of Service (“POS”) designated by MUFI
shall also be the OPA with effect from the dates as may be specified by
MFUI on its website/ AMC by issuance of necessary communication.
All financial and non-financial transactions pertaining to Schemes of
Axis Mutual Fund can be done through MFU either electronically on
www.mfuonline.com or physically through the POS of MFUI with effect
from the respective dates as published on MFUI website against the
respective POS locations. The list of POS of MFUI is published on the
website of MFUI at www.mfuindia.com. This will be updated from time to
time.
94 Axis Liquid Fund
The uniform cut-off time as prescribed SEBI (Mutual Funds) Regulations,
1996, circulars issued by SEBI and as mentioned in the SID / KIM of
Scheme shall be applicable for applications received on the portal of
MFUI i.e. www.mfuonline.com. However, investors should note that
transactions on the MFUI portal shall be subject to the terms &
conditions (including those relating to eligibility of investors) as
stipulated by MFUI / Axis Mutual Fund / the AMC from time to time and
in accordance to the laws applicable.
MFUI will allot a Common Account Number (“CAN”), a single reference
number for all investments in the Mutual Fund industry, for transacting in
multiple Schemes of various Mutual Funds through MFU and to map
existing folios, if any. Investors can create a CAN by submitting the CAN
Registration Form (CRF) and necessary documents at the MFUI POS. The
AMC and / or its Registrar and Transfer Agent (RTA) shall provide
necessary details to MFUI as may be needed for providing the required
services to investors / distributors through MFU.
C. PERIODIC DISCLOSURES
Net Asset Value
This is the value per
Unit of the Scheme on
a particular day. You
can ascertain the
value of your
investments by
multiplying the NAV
with your Unit
balance.
The AMC will calculate and disclose the NAV of the Scheme for all
Calendar Days. The AMC shall update the NAVs on the website of the
AMC (www.axismf.com) and of the Association of Mutual Funds in India
- AMFI (www.amfiindia.com) before 11.00 p.m. every Business Day. If the
NAVs are not available before the commencement of Business Hours on
the following day due to any reason, the Mutual Fund shall issue a press
release giving reasons and explaining when the Mutual Fund would be
able to publish the NAV.
Information regarding NAV can be obtained by the Unit holders /
Investors by calling or visiting the nearest ISC.
Monthly and Half
yearly Disclosures:
Portfolio / Financial
Results
This is a list of securities
where the corpus of
the scheme is
currently invested. The
market value of these
investments is also
stated in portfolio
disclosures.
The AMC will disclose the portfolio of the Scheme (alongwith ISIN) on
fortnightly and half yearly basis on the website of the Mutual Fund and
AMFI within 5 days of every fortnight and within 10 days from the close of
each half year (i.e. 31st March and 30th September) respectively in a
user-friendly and downloadable spreadsheet format. Further, AMC shall
publish an advertisement in an all India edition of one national English
daily newspaper and one Hindi newspaper, every half year, disclosing
the hosting of the half-yearly statement of its schemes’ portfolio on the
website of the Mutual Fund and AMFI and the modes through which
unitholder(s) can submit a request for a physical or electronic copy of
the statement of scheme portfolio.
The AMC will also provide a dashboard, in a comparable,
downloadable (spreadsheet) and machine readable format, providing
performance and key disclosures like Scheme’s AUM, investment
objective, expense ratios, portfolio details, scheme’s past performance
etc. on website.
Half Yearly Results
The Mutual Fund shall within one month from the close of each half year,
that is on 31st March and on 30th September, host a soft copy of its
unaudited financial results on the website of the AMC and AMFI.
The mutual fund shall publish an advertisement disclosing the hosting of
such financial results on their website, in atleast one English daily
newspaper having nationwide circulation and in a newspaper having
wide circulation published in the language of the region where the
Head Office of the Mutual Fund is situated.
Annual Report The Scheme wise annual report or an abridged summary thereof shall
be mailed (emailed, where e-mail id is provided unless otherwise
95 Axis Liquid Fund
required) to all Unit holders not later than four months (or such other
period as may be specified by SEBI from time to time) from the date of
closure of the relevant accounting year (i.e. 31st March each year) and
full annual report shall be available for inspection at the Head Office of
the Mutual Fund and a copy shall be made available to the Unit holders
on request on payment of nominal fees, if any. Scheme wise annual
report shall also be displayed on the website of the AMC
(www.axismf.com) and Association of Mutual Funds in India
(www.amfiindia.com).
Unitholders whose email addresses are not registered with the Mutual
Fund may ‘opt-in’ to receive a physical copy of the annual report or an
abridged summary thereof.
Further, AMC shall provide a physical copy of the abridged summary of
the Annual Report, without charging any cost, on a specific request
received from a unitholder.
AMC shall also publish an advertisement every year, in an all India
edition of one national English daily newspaper and in one Hindi
newspaper, disclosing the hosting of the scheme wise annual report on
the website of the Mutual Fund and AMFI and the modes through which
a unitholder can submit a request for a physical or electronic copy of
the annual report or abridged summary thereof.
Associate Transactions Please refer to Statement of Additional Information (SAI).
Taxation
Rates applicable for
the FY 20-21.
The information is
provided for general
information only.
However, in view of
the individual nature
of the implications,
each investor is
advised to consult his
or her own tax
advisors/authorised
dealers with respect
to the specific
amount of tax and
other implications
arising out of his or her
participation in the
schemes.
Particulars
Taxability in the hands of Individuals / Non-corporates /
Corporates
Resident Non-Resident
Tax on Dividend Taxed in the hands of
unitholders at applicable rate
under the provisions of the
Income-tax Act, 1961 (Act)
Taxed in the hands of
unitholders at the rate of
20% u/s 115A of the Act
(plus applicable surcharge
and cess)
Long Term
Capital Gains
(LTCG):
(Held for a
period of more
than 36 Months)
-Listed other
than equity-
oriented fund
20% with indexation benefit in
respect of cost of acquisition
(plus applicable surcharge
and cess)
20% with indexation
benefit in respect of cost
of acquisition
(plus applicable surcharge
and cess)
LTCG -Unlisted
other than
equity oriented
funds
20%
(Indexation benefit not
available)
(plus applicable surcharge
and cess)
10%
(Indexation benefit not
available)
(plus applicable surcharge
and cess)
Short Term
Capital Gains
30%
(Refer Note 4)
(plus applicable surcharge
and cess)
30% (Refer Note 4)
(40% in case of Foreign
companies)
(plus applicable surcharge
and cess)
96 Axis Liquid Fund
Note –
1. Axis Mutual Fund is a Mutual Fund registered with the Securities &
Exchange Board of India and hence the entire income of the Mutual
Fund will be exempt from income tax in accordance with the provisions
of Section 10(23D) of the Act.
2. Surcharge at the following rate to be levied in case of individual /HUF/
non-corporate non-firm unit holders for equity oriented mutual fund:
Income Individual/ HUF / non-
corporate non-firm unit
holders*
Rs 50 lakh to 1 crore (including income under
section 111A and 112A of the Act)
10%
Above Rs 1 crore upto Rs 2 crores (including
income under section 111A and 112A of the
Act)
15%
Above Rs 2 crores upto Rs 5 crores (excluding
income under section 111A and 112A of the
Act)
25%*
Above Rs 5 crores (excluding income under
section 111A and 112A of the Act)
37%*
*For income earned under provisions of section 111A and section 112A
of the Act surcharge rate shall be 15% where income exceeds Rs 2
crores.
3. Surcharge rates for Companies
Total Income Rate of
Surcharge for
Domestic
companies
Rate of
Surcharge for
Foreign
Companies
Above Rs 1 crore upto Rs 10
crores
7% 2%
Above Rs 10 crores 12% 5%
*Surcharge rate shall be 10% in case resident companies opting taxation
under section 115BAA and section 115BAB on any income earned.
In case of firm with total income exceeding Rs.1 crore, surcharge rate
shall be 12%.
4. Assuming investor falls in to highest tax bracket
5. Withholding of Taxation by Mutual Fund will as per applicable
withholding tax rate.
For further details on taxation please refer to the clause on Taxation in
the SAI
97 Axis Liquid Fund
Stamp Duty Pursuant to Notification No. S.O. 1226(E) and G.S.R. 226(E) dated March
30, 2020 issued by Department of Revenue, Ministry of Finance,
Government of India, read with Part I of Chapter IV of Notification
dated February 21, 2019 issued by Legislative Department, Ministry of
Law and Justice, Government of India on the Finance Act, 2019, stamp
duty @0.005% of the transaction value would be levied on applicable
mutual fund transactions.
Accordingly, pursuant to levy of stamp duty, the number of units allotted
on purchase transactions (including dividend reinvestment) to the
unitholders would be reduced to that extent.
Investor services Investors can lodge any service request or complaints or enquire about
NAVs, Unit Holdings, Dividends, etc by calling the Investor line of the
AMC at "1800 221322" (toll-free number) and additional contact number
8108622211(Chargeable) from 8.00 am to 8.00 pm (Monday to Friday)
and 9.00 am to 6.00 pm (on Saturday and Sunday) or 4325 5100 (at local
call rate for enquiring at AMC ISC’s) or email –
[email protected]. The service representatives may require
personal information of the Investor for verification of his / her identity in
order to protect confidentiality of information. The AMC will at all times
endeavour to handle transactions efficiently and to resolve any investor
grievances promptly.
Any complaints should be addressed to Mr. Milind Vengurlekar, who has
been appointed as the Investor Relations Officer and can be contacted
at:
Address:
Axis Asset Management Company Ltd.
Axis House, 1st Floor, C-2, Wadia International Centre, Pandurang
Budhkar Marg, Worli, Mumbai – 400 025
Phone no.: 022 43254123
For any grievances with respect to transactions through BSE StAR and /
or NSE MFSS, the investors / Unit Holders should approach either the
stock broker or the investor grievance cell of the respective stock
exchange.
D. COMPUTATION OF NAV
The Net Asset Value (NAV) per Unit of the respective Options under the Scheme will be
computed by dividing the net assets of the Scheme by the number of Units outstanding on
the valuation day. The Mutual Fund will value its investments according to the valuation
norms, as specified in Schedule VIII of the SEBI (MF) Regulations, or such norms as may be
specified by SEBI from time to time.
The Net Assets Value (NAV) of the Units under the Scheme shall be calculated as shown
below:
NAV (Rs.) =
Market or Fair
Value of Scheme’s
Investments
+ Current Assets including
Accrued Income
- Current Liabilities
and Provisions
No. of Units outstanding under Scheme on the Valuation Day
The NAV shall be calculated up to four decimal places. Separate NAV will be calculated
and disclosed for each Option. The NAVs of the Growth Option and the Dividend Option
will be different after the declaration of the first Dividend.
The AMC will calculate and disclose the NAV of the Scheme for all the Calendar Days.
98 Axis Liquid Fund
IV. FEES AND EXPENSES
This section outlines the expenses that will be charged to the Scheme.
A. NEW FUND OFFER (NFO) EXPENSES
These expenses are incurred for the purpose of various activities related to the NFO like
sales and distribution fees paid marketing and advertising, Registrar & Transfer Agents
expenses, printing and stationary, bank charges etc.
In accordance with the provisions of SEBI circular no. SEBI/ IMD/CIR No. 1/64057/06 dated
April 04, 2006 and SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009, the NFO expenses
has been borne by the AMC/Sponsor.
B. ANNUAL SCHEME RECURRING EXPENSES
These are the fees and expenses for operating the Scheme. These expenses include
Investment Management and Advisory Fee charged by the AMC, Registrar & Transfer
Agent fees, marketing and selling costs etc. as given in the table below:
The AMC has estimated that upto 2.00 % of the daily net assets of the Scheme will be
charged to the Scheme as expenses. For the actual current expenses being charged, the
Investor should refer to the website of the AMC.
Expense Head % of daily Net
Assets
Investment Management and Advisory Fees Upto 2.00%
Trustee fee
Audit fees
Custodian fees
RTA Fees
Marketing & Selling expense incl. agent commission
Cost related to investor communications
Cost of fund transfer from location to location
Cost of providing account statements and dividend redemption
cheques and warrants
Costs of statutory Advertisements
Cost towards investor education & awareness (at least 2 bps)
Brokerage & transaction cost over and above 12 bps and 5 bps for
cash and derivative market trades resp.
Goods & Services Tax (GST) on expenses other than investment and
advisory fees
GST on brokerage and transaction cost
Maximum total expense ratio (TER) permissible under Regulation 52 (6)
(c)
Upto 2.00%
Additional expenses under regulation 52 (6A) (c)^ Upto 0.05%
Additional expenses for gross new inflows from specified cities under
regulation 52(6A)(b)
Upto 0.30%
^The AMC shall not charge additional expenses under Regulation 52(6A)(c) in case exit
load is not levied/ not applicable.
All fees and expenses charged in a Direct Plan (in percentage terms) under various heads
including the investment and advisory fee shall not exceed the fees and expenses charged
under such heads in other than Direct Plan.
Note: With effect from October 1, 2012, Retail Plan has been discontinued for fresh
subscriptions received on or after October 1, 2012. Existing investors will continue to remain
invested in the Retail Plans (including Dividend reinvestment) till the existing investments are
redeemed and no fresh subscription shall be accepted in Retail Plan.
Direct Plan shall have a lower expense ratio excluding distribution expenses, commission,
etc. and no commission for distribution of Units will be paid/ charged under Direct Plan.
99 Axis Liquid Fund
Fungibility of expenses: The expenses towards Investment Management and Advisory Fees
under Regulation 52(2) and the various sub-heads of recurring expenses mentioned under
Regulation 52(4) of SEBI (MF) Regulations are fungible in nature. Thus, there shall be no
internal sub-limits within the expense ratio for expense heads mentioned under Regulation
52(2) and (4) respectively. Further, the additional expenses under Regulation 52(6A)(c) may
be incurred either towards investment & advisory fees and/or towards other expense heads
as stated above.
These estimates have been made in good faith as per the information available to and
estimates made by the Investment Manager and are subject to change inter-se or in total
subject to prevailing Regulations.
The recurring expenses of the Scheme (including the Investment Management and
Advisory Fees) shall be as per the limits prescribed under the SEBI (MF) Regulations. These
are as follows:
Assets under management Slab (In Rs. crore) Total expense ratio limits
On the first Rs. 500 crores of the daily net assets 2.00%
On the next Rs. 250 crores of the daily net assets 1.75%
On the next Rs. 1250 crores of the daily net assets 1.50%
On the next Rs. 3000 crores of the daily net assets 1.35%
On the next Rs. 5000 crores of the daily net assets 1.25%
On the next Rs. 40,000 crores of the daily net
assets
Total expense ratio reduction of
0.05% for every increase of Rs. 5,000
crores of daily net assets or part
thereof.
On the balance of the assets 0.80%
The total expenses of the Scheme(s) including the investment management and advisory
fee shall not exceed the limit stated in Regulation 52(6) of the SEBI (MF) Regulations and
amendments thereto.
A. In addition to the limits as specified in Regulation 52(6) of SEBI (MF) Regulations or the
Total Recurring Expenses (Total Expense Limit) as specified above, the following costs or
expenses may be charged to the Scheme namely-
Additional expenses for gross new inflows from specified cities
(a) expenses not exceeding of 0.30 per cent of daily net assets, if the new inflows from
such cities as specified by SEBI/AMFI from time to time are at least -
(i) 30 per cent of gross new inflows in the Scheme, or;
(ii) 15 per cent of the average assets under management (year to date) of the
Scheme, whichever is higher:
Provided that if inflows from such cities is less than the higher of sub-clause (i) or sub-
clause (ii), such expenses on daily net assets of the Scheme shall be charged on
proportionate basis.
Provided further that, expenses charged under this clause shall be utilised for distribution
expenses incurred for bringing inflows from such cities.
Provided further that amount incurred as expense on account of inflows from such cities
shall be credited back to the Scheme in case the said inflows are redeemed within a
period of one year from the date of investment.
Provided further that, additional TER can be charged based on inflows only from retail
investors in terms of SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2018/137 dated October
22, 2018 and SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2019/42 dated March 25, 2019.
For this purpose inflows of amount upto Rs 2,00,000/- per transaction, by individual
investors shall be considered as inflows from “retail investor”.
Additional expenses under regulation 52(6A)(c)
100 Axis Liquid Fund
(b) additional expenses, incurred towards different heads mentioned under Regulations
52(2) and 52(4), not exceeding 0.05 per cent of daily net assets of the Scheme;
(c) GST payable on investment and advisory service fees (‘AMC fees’) charged by Axis
Asset Management Company Ltd.;
Further, brokerage and transaction costs which are incurred for the purpose of
execution of trade and is included in the cost of investment shall not exceed 0.12 per
cent in case of cash market transactions and 0.05 per cent in case of derivatives
transactions.
B. Within the Total Expense Limit chargeable to the Scheme, following will be charged to
the Scheme:
(a) GST on other than investment and advisory fees, if any, (including on brokerage and
transaction costs on execution of trades) shall be borne by the Scheme
(b) Investor education and awareness initiative fees of at least 2 basis points on daily
net assets of Scheme.
C. AMC fees charged by Axis AMC to the Scheme will be within the Total Expense Limit as
prescribed by SEBI Regulations, as amended from time to time.
Expenses over and above the prescribed limit shall be charged / borne in accordance with
the Regulations prevailing from time to time.
The current expense ratios will be updated on the AMC website viz.
https://www.axismf.com/total-expense-ratio within two working days mentioning the
effective date of the change.
Illustration of impact of expense ratio on scheme’s returns.
For any scheme, NAV is computed on a daily basis factoring in all the assets as well as
liabilities of the scheme (including expenses charged). Expenses charged to the scheme
bring down its NAV and hence the investor's net returns on a corresponding basis.
Illustration:
Particulars Amount
(in Rs.) No of units
NAV per unit
(in Rs.)
Invested on March 31, 2016 (A) 10,000 1,000 10.00
Value of above investment as on March 31, 2017 (gross
of all expenses) (B) 11,500 1,000 11.50
Total Expenses charged during the year @2% p.a.
(assumed) ( C ) 200 0.20
Value of above investment as on March 31, 2017 (net of
all expenses) (D) = (B-C) 11,300 1,000 11.30
Returns (%) (gross of all applicable expenses) (E) =
((B/A)-1) 15.0%
Returns (%) (net of all applicable expenses) (F) = ((D/A)-
1) 13.0%
Please Note:
The purpose of the above illustration is purely to explain the impact of expense ratio
charged to the Scheme and should not be construed as providing any kind of
investment advice or guarantee of returns on investments.
It is assumed that the expenses charged are evenly distributed throughout the year. The
expenses of the Direct Plan under the Scheme may vary with that of the Regular Plan
under the Scheme.
Calculations are based on assumed NAVs, and actual returns on your investment may
be more, or less.
Any tax impact has not been considered in the above example, in view of the
individual nature of the tax implications. Each investor is advised to consult his or her
own financial advisor.
C. LOAD STRUCTURE
101 Axis Liquid Fund
Load is an amount which is paid by the investor to redeem the Units from the Scheme. This
amount is used by the AMC to pay commission to the distributors and to take care of other
marketing and selling expenses. Load amounts are variable and are subject to change
from time to time. For the current applicable structure, investors may refer to the website of
the AMC (www.axismf.com) or may call at 1800 221322 (toll-free number) and additional
contact number 8108622211(Chargeable) from 8.00 am to 8.00 pm (Monday to Friday) and
9.00 am to 6.00 pm (on Saturday and Sunday) or can contact his distributor.
SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 has decided
that there shall be no entry Load for all Mutual Fund Schemes.
Type of Load Load chargeable (as %age of NAV)
Entry Load Not Applicable
Exit Load
(w.e.f. October
20, 2019)
Investor exit upon Subscription Exit load as a % of redemption
proceeds
Day 1 0.0070%
Day 2 0.0065%
Day 3 0.0060%
Day 4 0.0055%
Day 5 0.0050%
Day 6 0.0045%
Day 7 onwards 0.0000%
The aforesaid exit load shall be applicable on a prospective basis to all fresh investments
made in the Scheme on or after the effective date including registered Systematic Transfer
Plans (STPs), Systematic Withdrawal Plans (SWPs) etc. falling due on or after the effective
date. No exit load will be charged for switch between Axis Liquid Fund (Regular Plan) and
Axis Liquid Fund - Direct Plan where transaction is not routed through Distributor in Axis Liquid
Fund (Regular Plan). If the transaction in Regular Plan is routed through Distributor, then
applicable exit load will be charged for switch from Regular Plan to Direct Plan.
Units issued on reinvestment of Dividends shall not be subject to any Load, if any. No load
shall be levied on switches between options of the Scheme.
The above mentioned load structure shall be equally applicable to the special products
such as STP, switches, etc. offered by the AMC.
Exit load charged to the investors will be credited back to the Scheme net of GST.
The Investor is requested to check the prevailing Load structure of the Scheme before
investing.
For any change in Load structure AMC will issue an addendum and display it on the
website/Investor Service Centres.
Under the Scheme, the AMC/Trustee reserves the right to change / modify the Load
structure if it so deems fit in the interest of smooth and efficient functioning of the Mutual
Fund. The AMC/Trustee reserves the right to introduce / modify the Load depending upon
the circumstances prevailing at that time subject to maximum limits as prescribed under
the Regulations.
The Redemption Price however, will not be lower than 93% of the NAV. Any imposition or
enhancement of Load in future shall be applicable on prospective investments only. The
difference between the Redemption price and Sale price at any point in
time shall not exceed the permitted limit as prescribed by SEBI from time to time which is
presently 7% calculated on the Sale Price.
At the time of changing the Load Structure:
1. An Addendum detailing the changes will be attached to Scheme Information
Document and Key Information Memorandum. The addendum may be circulated to all
the distributors / brokers so that the same can be attached to all Scheme Information
Document and Key Information Memorandum already in stock.
102 Axis Liquid Fund
2. The addendum will be displayed on the website of the AMC and arrangements will be
made to display the addendum in the form of a notice in all the Investor Service
Centres and distributors / brokers office.
3. The introduction of the Exit Load/ CDSC alongwith the details may be stamped in the
acknowledgement slip issued to the Investors on submission of the application form and
may also be disclosed in the statement of accounts issued after the introduction of such
Load/CDSC.
4. A public notice shall be given in respect of such changes in one English daily
newspaper having nationwide circulation as well as in a newspaper published in the
language of region where the Head Office of the Mutual Fund is situated.
5. Any other measure which the Mutual Fund may consider necessary.
The Trustee/AMC reserves the right to change the load structure subject to the limits
prescribed under the Regulations. Any change in load structure shall be only on a
prospective basis i.e. Any such changes would be chargeable only for Redemptions from
prospective purchases (applying first in first out basis).
Transaction charge
In terms of SEBI circular no. CIR/ IMD/ DF/ 13/ 2011 dated August 22, 2011, as amended from
time to time, Transaction Charge per subscription of Rs.10,000/– and above shall be
charged from the investors and shall be payable to the distributors/ brokers (who have
opted in for charging the transaction charge) in respect of applications routed through
distributor/ broker relating to Purchases / subscription / new inflows only (lump sum and SIP),
subject to the following:
For Existing / New investors: Rs.100 / Rs.150 as applicable per subscription of Rs. 10,000/–
and above
Transaction charge for SIP shall be applicable only if the total commitment through SIP
amounts to Rs.10,000/– and above. In such cases the transaction charge would be
recovered in maximum 4 successful installments.
There shall be no transaction charge on subscription below Rs.10,000/-.
There shall be no transaction charges on direct investments.
There shall be no transaction charges for transaction other than purchases /
subscriptions relating to new inflows such as Switches, etc.
Transactions carried out through the Stock Exchange platforms for mutual funds shall
not be subject to transaction charges.
However, the option to charge “transaction charges” is at the discretion of the distributors.
Investors may note that distributors can opt to receive transaction charges based on type
of the Scheme. Accordingly, the transaction charges would be deducted from the
subscription amounts, as applicable.
SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 has decided
that there shall be no entry Load for all Mutual Fund Schemes. The upfront commission on
investment made by the investor, if any, shall be paid to the ARN Holder (AMFI registered
Distributor) directly by the investor, based on the investor's assessment of various factors
including service rendered by the ARN Holder.
The requirement of minimum application amount shall not be applicable if the investment
amount falls below the minimum amount required due to deduction of transaction charges
from the subscription amount.
The Transaction Charge as mentioned above shall be deducted by the AMC from the
subscription amount of the Unit Holder and paid to the distributor and the balance shall be
invested in the Scheme. The statement of account shall clearly state that the net
investment as gross subscription less transaction charge and give the number of units
allotted against the net investment.
D. WAIVER OF LOAD FOR DIRECT APPLICATIONS
Not applicable
104 Axis Liquid Fund
VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR
INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF
BEING TAKEN BY ANY REGULATORY AUTHORITY
This section shall contain the details of penalties, pending litigation, and action taken by
SEBI and other regulatory and Govt. Agencies.
1. All disclosures regarding penalties and action(s) taken against foreign Sponsor(s) may
be limited to the jurisdiction of the country where the principal activities (in terms of
income / revenue) of the Sponsor(s) are carried out or where the headquarters of the
Sponsor(s) is situated. Further, only top 10 monetary penalties during the last three years
shall be disclosed.
Not Applicable
2. In case of Indian Sponsor(s), details of all monetary penalties imposed and/ or action
taken during the last three years or pending with any financial regulatory body or
governmental authority, against Sponsor(s) and/ or the AMC and/ or the Board of
Trustees /Trustee Company; for irregularities or for violations in the financial services
sector, or for defaults with respect to share holders or debenture holders and depositors,
or for economic offences, or for violation of securities law. Details of settlement, if any,
arrived at with the aforesaid authorities during the last three years shall also be
disclosed.
a. A show-cause notice was issued to Axis Bank by RBI dated November 16, 2017
following a statutory inspection which revealed violations of various regulations
of the RBI in relation to assessment of NPAs. After considering the response and
oral submissions of Axis Bank, the RBI found that the charges of non-compliance
were substantiated and imposed a monetary penalty of INR 3,00,00,000 (Rupees
Three Crores Only) on March 5, 2018.
b. The RBI had issued Show Cause Notice vide its letter dated 27.7.2018 with
respect to dispensation of two Children Bank Play Notes of Rs.500 each
dispensed to two customers from ATM at Kidwai nagar branch, Kanpur in non-
compliance to its Master Circular on Detection and Impounding of Counterfeit
Notes dated July 20, 2017 and, the Circular on Sorting of Notes – Installation of
Note Sorting Machines dated November 19, 2009 and the Bank submitted the
response on 16.8.2018. The RBI vide its letter dated 30.1.2019 imposed a penalty
of Rs.20 lakhs and the Bank paid the same on 5.2.2019.
c. The RBI had issued Show Cause Notice vide its letter dated 29.8.2018 for
wrongfully collecting 105 DDs, each for the amount exceeding Rs.50,000,
aggregating Rs.5.56 crores in the account of Satkar Co-operative Credit Society
Ltd. in non-compliance to its Master Circular on ‘Collection of Account Payee
Cheques - Prohibition on Crediting Proceeds to Third Party Account’ dated
January 22, 2014 and for the delay in reporting of above fraud in non-
compliance to Master Directions on ‘Frauds - Classification and Reporting by
commercial banks and select FIs’ dated July 1, 2016. The Bank submitted the
response on 17.9.2018. The RBI vide its letter dated 30.1.2019 imposed a penalty
of Rs.2 Crore and the Bank has paid the same on 16.2.2019.
d. The RBI had issued Show cause notice vide its letter dated 23.8.2018 with respect
to non-compliance to guidelines issued dated 20.2.2018 on ‘Time-bound
implementation & Strengthening of SWIFT related operational controls and the
Bank submitted the response on 5.9.2018. The RBI vide its letter dated 25.2.2019
cautioned the Bank stating that any deficiency in this regard will attract penal
action in future.
3. Details of all enforcement actions taken by SEBI in the last three years and/ or pending
with SEBI for the violation of SEBI Act, 1992 and Rules and Regulations framed there
under including debarment and/ or suspension and/ or cancellation and/ or imposition
of monetary penalty/adjudication/enquiry proceedings, if any, to which the Sponsor(s)
and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the
directors and/ or key personnel (especially the fund managers) of the AMC and Trustee
Company were/ are a party. The details of the violation shall also be disclosed.
Nil
105 Axis Liquid Fund
4. Any pending material civil or criminal litigation incidental to the business of the Mutual
Fund to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee
Company and/ or any of the directors and/ or key personnel are a party should also be
disclosed separately.
Nil
5. Any deficiency in the systems and operations of the Sponsor(s) and/ or the AMC and/
or the Board of Trustees/Trustee Company which SEBI has specifically advised to be
disclosed in the SID, or which has been notified by any other regulatory agency, shall be
disclosed.
Nil
The Scheme under this Scheme Information Document was approved by the Trustee
Company on September 05, 2009. The Trustee has ensured that the Scheme is a new
product offered by Axis Mutual Fund and is not a minor modification of its existing
schemes.
Notwithstanding anything contained in this Scheme Information Document, the provisions of
the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be
applicable.
for and on behalf of
Axis Asset Management Company Ltd.
Sd/-
Chandresh Kumar Nigam
Managing Director &
Chief Executive Officer
Date: November 27, 2020
106 Axis Liquid Fund
OFFICIAL POINTS OF ACCEPTANCE FOR ONGOING TRANSACTION
AXIS AMC OFFICE ADDRESSES
AHMEDABAD Axis Asset Management Company Limited ,Mithakali Law Garden Road,
Ellisbridge, 3rd Floor, 302, Megha House, Opp. Kotak Bank,Ahmedabad - 380 006.. AGRA:
Axis Asset Management Company Limited, Shop No. G-7, Ground Floor, Block-19/4, Sanjay
Place, Agra - 282 002. BANGALORE Axis Asset Management Co.Ltd. Ground Floor, G-03 &
G-03A, Prestige Meridian-1, No. 29, M.G. Road, Bangalore - 560 001 BHOPAL Axis Asset
Management Co FM-8 Mansarovar Complex , Khasra No. 27/1/2 , NH-12 , Bhopal , MP.
BHUBANESHWAR Axis Asset Management Co Unit no.3 (Part) Ground Floor Nandighosh
Arena Plot no. 1 Bapuji Nagar Bhubaneshwar Odisha. BORIVALI Axis Asset Management Co.
Ltd, Office No. 201, 2 Floor, REIS Magos, Ramdas Sutrale Marg, Off. Chandavarkar Road,
Borivali (West), Mumbai, Maharashtra - 400092. CHANDIGARH Axis Asset Management
Co.Ltd. 2nd Floor, SCO No 2471, Sector 22C, Chandigarh - 160022. CHENNAI Axis Asset
Management Co. Ltd. 1st Floor , Door no. 168 Anna Salai , Opp. To Spencer Plaza , Chennai
, Tamil Nadu - 600 002., COIMBATORE Axis Asset Management Company Limited, 1st Floor,
Shylaja Complex, 575 DB Road, R. S. Puram, Near Head Post Office, Coimbatore - 641 002.
DEHRADUN Axis Asset Management Co. Ltd., 59/3 First Floor, Rajpur Road, Above IDBI Bank,
Dehradun – 248001. FORT Axis Asset Management Company Limited , 112, 1st Floor, Yusuf
Building, Plot No. 49, Veer Nariman Road, Hutatma Chowk, Fort, Mumbai - 400 001.
GUWAHATI Axis Asset Management Co. ltd 2C 2nd Floor, “Dihang Arcade”, ABC, G.S. Road
Opp Dona Planet Guwahati 781005. HYDERABAD Axis Asset Management Company Ltd,
2nd Floor, Nerella House, Panjagutta, Hyderabad - 500 082. INDORE Axis Asset Management
Co. ltd office No. 211 2nd Floor Megapolis Square Block A 579, M.G Road .opp Treasure
Island Mall Indore 452001 M.P JAIPUR Axis Asset Management Company Ltd, 305, 3 Floor,
Green House, Near Ahinsa Circle, Ashok Marg, C Scheme, Jaipur - 302001.Rajasthan.
JALANDHAR Axis Asset Management Co. Ltd , SCO 5-6, 1st Floor, Puda Complex, Opp
Suvidha Center, Ladowali Road, Jalandhar - 144 001 KANPUR Axis Asset Management
August Company Limited, 305-306, 3rd Floor, Civil Lines, Kan Chamber, Kanpur – 208001.
KOCHI Axis Asset Management Company Limited,Door No.40/9336 ,2nd Floor ,Chackos
Towers ,Padma Pullepady Road ,Kochi 682 035 Kerala. KOLKATA Axis Asset Management
Company Ltd, Ground Floor, Kanak Building,41, Chowringhee Road Kolkata - 700071.
LUCKNOW Axis Asset Management Co. Ltd, Unit No 5, 6 & 7, Halwasiya's Commerce House,
2nd Floor, Habibullah Estate, 11, M.G.Marg, Hazratganj, Lucknow - 226001. LUDHIANA Axis
Asset Management Co. Ltd. SCO - 28, First Floor, Feroz Gandhi Market, Ludhiana - 141001.
MUMBAI Axis Asset Management Company Limited Axis House, First Floor, C-2, Wadia
International Centre, Pandurang Budhkar Marg, Worli, Mumbai - 400025. MUMBAI
(Indiabulls) Axis Asset Management Company Ltd. Unit No. 902, 9th Floor, Indiabulls Finance
Center, Tower 2, Senapati Bapat Marg, Mumbai - 400013. NAGPUR Axis Asset Management
Company Ltd. 1st Floor, "The Edge", 12, Shankar Nagar, WHC Road, Nagpur-440010 NASIK
Axis Asset Management Company Limited Shop No. G-7,GroundFloor, Rajvee Enclave, Old
Pandit Colony, Nasik - 422 001, Maharashtra. NEW DELHI Axis Asset Management Company
Ltd. 702-705, 7th Floor, Narain Manzil, Barakhamba Road, Connaught Place, New Delhi -
110001. PANAJI Axis Asset Management Company Limited Ground Floor, Shop No. G-7,
Edcon Towers, Menezes Braganza Road, Panjim, Goa - 403001. PUNE Axis Asset
Management Company Ltd. Unit No. 102 & 102-A/B, 1st Floor, Signature Building,
Bhandarkar Road, CTS No. 853, Plot No. 195, Bhamburda, Shivajinagar, Pune - 411005.PATNA
Axis Asset Management Company Ltd. D - 309/ 310, 3 Floor, Dumroan Palace, Frazer Road,
Patna 800 001. RAIPUR Axis Asset Management Company Ltd ,Office No. T -10, 3rd Floor,
Raheja Towers, Fafadih , Chowk Jail Road, Raipur, Chhattisgarh - 492001. RAJKOT Axis Asset
Management Co. ltd 206, Metro Plaza Jansata Chowk Near Eagle Travels Moti Tanki Chowk
, Rajkot - 360001. SURAT Axis Asset Management Company Limited,HG-2A, International
Trade Centre(ITC), Majura Gate Crossing, Ring Road ,Surat Gujarat, India. Thane Axis Asset
Management Company Ltd, Manjula Arcade, 2nd Floor, Gokhale Road, Naupada, Thane
(West) - 400 602. Vadodara Axis Asset Management Company Limited 3rd Floor, 306,
Emerald Complex, Race Course, Near Bird Circle, Old Padra Road, Vadodara - 390
007.Amritsar Axis Asset Management Co. Ltd SCO-25, First floor, District shopping Centre, B-
Block, Ranjit Avenue, Amritsar – 143001. Varanasi Axis Asset Management Company Ltd.
7th Floor, Arihant Complex, D-64/127 C-H, Sigra, Varanasi, Uttar Pradesh - 221010.
Visakhapatnam Axis Asset Management Company Limited, S3, 3rd Floor, Navaratna Jewel
Square, Beside Jyothi, Book Depot, Dwarakanagar, Visakhapatnam - 530 016.
107 Axis Liquid Fund
KFIN TECHNOLOGIES PRIVATE LIMITED INVESTOR SERVICE CENTERS
Bangalore - KFin Technologies Pvt. Ltd,No 35,Puttanna Road,Basavanagudi,Bangalore
560004 Belgaum - KFin Technologies Pvt. Ltd,Premises No.101, CTS NO.1893,Shree Guru
Darshani Tower,Anandwadi, Hindwadi,Belgaum 590011 Bellary - KFin Technologies Pvt.
Ltd,Shree Gayathri Towers #4,1st Floor K.H.B.Colony,Gopalaswamy Mudaliar Road,Gandhi
Nagar-Bellary 583103 Davangere - KFin Technologies Pvt. Ltd,D.No 162/6 , 1st Floor, 3rd
Main,P J Extension,Davangere taluk, Davangere Manda,Davangere 577002 Dharwad - KFin
Technologies Pvt. Ltd,ADINATH COMPLEX,BESIDE KAMAL AUTOMOBILES, BHOOVI GALLI,OPP
OLD LAXMI TALKIES, P B ROAD,Dharwad 580001 Gulbarga - KFin Technologies Pvt. Ltd,H NO
2-231,KRISHNA COMPLEX, 2ND FLOOR Opp.,Opp. Municipal corporation Office,Jagat,
Station Main Road, KALABURAGI,Gulbarga 585105 Hassan - KFin Technologies Pvt. Ltd,SAS
NO: 490, HEMADRI ARCADE,2ND MAIN ROAD,SALGAME ROAD NEAR BRAHMINS BOYS
HOSTEL,Hassan 573201 Hubli - KFin Technologies Pvt. Ltd,R R MAHALAXMI MANSION,ABOVE
INDUSIND BANK, 2ND FLOOR,DESAI CROSS, PINTO ROAD,Hubballi 580029 Mangalore - KFin
Technologies Pvt. Ltd,Mahendra Arcade Opp Court Road,Karangal Padi,-,Mangalore
575003 Margao - KFin Technologies Pvt. Ltd,2Nd Floor ,Dalal Commercial
Complex,Pajifond,Margao 403601 Mysore - KFin Technologies Pvt. Ltd, NO 2924, 2ND
FLOOR, 1ST MAIN, 5TH CROSS, SARASWATHI PURAM, MYSORE 570009 Panjim - KFin
Technologies Pvt. Ltd,H. No: T-9, T-10, Affran plaza,3rd Floor,Near Don Bosco High School,
Panjim 403001 Shimoga - KFin Technologies Pvt. Ltd,JAYARAMA NILAYA,2ND
CORSS,MISSION COMPOUND, Shimoga 577201 Ahmedabad - KFin Technologies Pvt.
Ltd,Office No. 401, on 4th Floor,ABC-I, Off. C.G. Road,-,Ahmedabad 380009 Anand - KFin
Technologies Pvt. Ltd,B-42 Vaibhav Commercial Center,Nr Tvs Down Town Shrow
Room ,Grid Char Rasta ,Anand 380001 Baroda - KFin Technologies Pvt. Ltd,203 Corner
point, Jetalpur Road, Baroda Gujarat, Baroda 390007 Bharuch - KFin Technologies Pvt.
Ltd,123 Nexus business Hub, Near Gangotri Hotel, B/s Rajeshwari Petroleum, Makampur
Road, Bharuch 392001 Bhavnagar - KFin Technologies Pvt. Ltd,303 STERLING POINT
,WAGHAWADI ROAD ,-,Bhavnagar 364001 Gandhidham - KFin Technologies Pvt. Ltd,Shop #
12 Shree Ambica Arcade Plot # 300,Ward 12. Opp. CG High School ,Near HDFC
Bank,Gandhidham 370201 Gandhinagar - KFin Technologies Pvt. Ltd,123 First Floor,Megh
Malhar Complex,Opp. Vijay Petrol Pump Sector - 11, Gandhinagar 382011 Jamnagar - KFin
Technologies Pvt. Ltd,131 Madhav Plazza, ,Opp Sbi Bank,Nr Lal Bunglow, Jamnagar 361008
Junagadh - KFin Technologies Pvt. Ltd,124-125 Punit Shopping Center,M.G Road, Ranavav
Chowk, Junagadh 362001 Mehsana - KFin Technologies Pvt. Ltd,FF-21 Someshwar Shopping
Mall ,Modhera Char Rasta, -,Mehsana 384002 Nadiad - KFin Technologies Pvt. Ltd,311-3rd
Floor City Center ,Near Paras Circle,-,Nadiad 387001 Navsari - KFin Technologies Pvt. Ltd,103
1ST FLOORE LANDMARK MALL,NEAR SAYAJI LIBRARY ,Navsari Gujarat, Navsari 396445 Rajkot
- KFin Technologies Pvt. Ltd,302 Metro Plaza ,Near Moti Tanki Chowk,Rajkot, Rajkot Gujarat
360001 Surat - KFin Technologies Pvt. Ltd,Office no: -516 5th Floor Empire State building ,Near
Udhna Darwaja, Ring Road, Surat 395002 Valsad - KFin Technologies Pvt. Ltd,406 Dreamland
Arcade,Opp Jade Blue,Tithal Road, Valsad 396001 Vapi - KFin Technologies Pvt. Ltd,A-8
FIRST FLOOR SOLITAIRE BUSINESS CENTRE,OPP DCB BANK GIDC CHAR RASTA,SILVASSA
ROAD, Vapi 396191 Chennai - KFin Technologies Pvt. Ltd,F-11 Akshaya Plaza 1St Floor,108
Adhithanar Salai,Egmore Opp To Chief Metropolitan Court,Chennai 600002 T
Nagar/Nungambakkam - KFin Technologies Pvt. Ltd,No 23 | Cathedral Garden
Road,Cathedral Garden Road,Nungambakkam,Chennai,600 034 Calicut - KFin
Technologies Pvt. Ltd,Second Floor,Manimuriyil Centre, Bank Road,,Kasaba Village,Calicut
673001 Cochin - KFin Technologies Pvt. Ltd,Ali Arcade 1St FloorKizhavana
Road,Panampilly Nagar,Near Atlantis Junction, Ernakualm 682036 Kannur - KFin
Technologies Pvt. Ltd,2ND FLOOR,GLOBAL VILLAGE,BANK ROAD,Kannur 670001 Kollam - KFin
Technologies Pvt. Ltd,GROUND FLOORA NARAYANAN SHOPPING COMPLEX,KAUSTHUBHSREE
BLOCK,Kadapakada,Kollam 691008 Kottayam - KFin Technologies Pvt. Ltd,1St Floor
Csiascension Square,Railway Station Road,Collectorate P O,Kottayam 686002 Palghat - KFin
Technologies Pvt. Ltd,No: 20 & 21 ,Metro Complex H.P.O.Road
Palakkad,H.P.O.Road,Palakkad 678001 Tiruvalla - KFin Technologies Pvt. Ltd,2Nd FloorErinjery
Complex,Ramanchira,Opp Axis Bank,Thiruvalla 689107 Trichur/Thrissur - KFin Technologies
Pvt. Ltd,4TH FLOOR, CROWN TOWER,SHAKTHAN NAGAR,OPP. HEAD POST OFFICE,Thrissur
680001 Trivandrum - KFin Technologies Pvt. Ltd,MARVEL TOWER, 1ST FLOOR,URA-42
STATUE,(UPPALAM ROAD RESIDENCE ASSOCIATION) ,Trivandrum 695010 Coimbatore - KFin
Technologies Pvt. Ltd,3rd Floor Jaya Enclave,1057 Avinashi Road,-,Coimbatore 641018
Erode - KFin Technologies Pvt. Ltd,Address No 38/1 Ground Floor,Sathy Road,(VCTV Main
108 Axis Liquid Fund
Road),Sorna Krishna Complex,Erode 638003 Karur - KFin Technologies Pvt. Ltd,No 88/11, BB
plaza,NRMP street,K S Mess Back side,Karur 639002 Madurai - KFin Technologies Pvt. Ltd,No.
G-16/17,AR Plaza, 1st floor,North Veli Street,Madurai 625001 Nagerkoil - KFin Technologies
Pvt. Ltd,HNO 45 ,1st Floor,East Car Street ,Nagercoil 629001 Pondicherry - KFin Technologies
Pvt. Ltd,No 122(10b),Muthumariamman koil street,-,Pondicherry 605001 Salem -KFin
Technologies Pvt. Ltd, No.6 NS Complex, Omalur main road, Salem 636009 Tirunelveli - KFin
Technologies Pvt. Ltd,55/18 Jeney Building,S N Road,Near Aravind Eye Hospital,Tirunelveli
627001 Trichy - KFin Technologies Pvt. Ltd,No 23C/1 E V R road, Near Vekkaliamman
Kalyana Mandapam,Putthur,-,Trichy 620017 Tuticorin - KFin Technologies Pvt. Ltd,4 - B A34 -
A37,Mangalmal Mani Nagar,Opp. Rajaji Park Palayamkottai Road,Tuticorin 628003 Vellore -
KFin Technologies Pvt. Ltd,No 2/19,1st floor,Vellore city centre,Anna salai,Vellore 632001
Agartala - KFin Technologies Pvt. Ltd,OLS RMS CHOWMUHANI,MANTRI BARI ROAD1ST FLOOR
NEAR TRAFFIC POINT,TRIPURA WEST,Agartala 799001 Guwahati - KFin Technologies Pvt. Ltd.,
Ganapati Enclave, 4th Floor, Opposite Bora Service, Ullubari, Guwahati, Assam - 781007.
Shillong - KFin Technologies Pvt. Ltd,Annex Mani Bhawan ,Lower Thana Road ,Near R K M Lp
School ,Shillong 793001 Silchar - KFin Technologies Pvt. Ltd,N.N. Dutta Road,Chowchakra
Complex,Premtala,Silchar 788001 Ananthapur - KFin Technologies Pvt. Ltd,Plot No: 12-
313,,Balaji Towers, Suryanagar,Ananthapur Village,Anantapur 515001 Eluru - KFin
Technologies Pvt. Ltd,DNO-23A-7-72/73K K S PLAZA MUNUKUTLA VARI STREET,OPP ANDHRA
HOSPITALS,R R PETA,Eluru 534002 Guntur - KFin Technologies Pvt. Ltd,2nd Shatter, 1st
Floor,Hno. 6-14-48, 14/2 Lane,,Arundal Pet,Guntur 522002 Hyderabad - KFin Technologies
Pvt. Ltd,No:303, Vamsee Estates,Opp: Bigbazaar,Ameerpet,Hyderabad 500016 Karimnagar
- KFin Technologies Pvt. Ltd,2nd ShutterHNo. 7-2-607 Sri Matha ,Complex Mankammathota ,-
,Karimnagar 505001 Kurnool - KFin Technologies Pvt. Ltd,Shop No:47,2nd Floor,S komda
Shoping mall,Kurnool 518001 Nanded - KFin Technologies Pvt. Ltd,Shop No.4 ,Santakripa
Market G G Road,Opp.Bank Of India,Nanded 431601 Rajahmundry - KFin Technologies Pvt.
Ltd., No. 46-23-10/A, Tirumala Arcade, 2nd Floor, Ganuga Veedhi, Danavaipeta,
Rajahmundry East, Godavari Dist., AP - 533103. Solapur - KFin Technologies Pvt. Ltd,Block No
06,Vaman Nagar Opp D-Mart,Jule Solapur,Solapur 413004 Srikakulam - KFin Technologies
Pvt. Ltd,D No 4-4-97 First Floor Behind Sri Vijayaganapathi Temple,Pedda relli veedhi
,Palakonda Road ,Srikakulam 532001 Tirupathi - KFin Technologies Pvt. Ltd,H.No:10-13-
425,1st Floor Tilak Road ,Opp: Sridevi Complex ,Tirupathi 517501 Vijayawada - KFin
Technologies Pvt. Ltd,HNo26-23, 1st Floor,Sundarammastreet,GandhiNagar,
Krishna,Vijayawada 520010 Visakhapatnam - KFin Technologies Pvt. Ltd,DNO : 48-10-40,
GROUND FLOOR, SURYA RATNA ARCADE, SRINAGAR, OPP ROADTO LALITHA JEWELLER
SHOWROOM,BESIDE TAJ HOTEL LADGE,Visakhapatnam 530016 Warangal - KFin
Technologies Pvt. Ltd,Shop No22 , ,Ground Floor Warangal City Center,15-1-237,Mulugu
Road Junction,Warangal 506002 Khammam - KFin Technologies Pvt. Ltd,11-4-3/3 Shop No.
S-9,1st floor,Srivenkata Sairam Arcade,Old CPI Office Near PriyaDarshini CollegeNehru
Nagar ,KHAMMAM 507002 Hyderabad(Gachibowli) - KFintech Pvt.Ltd,Selenium Plot No: 31
& 32,Tower B Survey No.115/22 115/24 115/25,Financial District Gachibowli Nanakramguda
Serilimgampally Mandal,Hyderabad,500032 Akola - KFin Technologies Pvt. Ltd,Yamuna
Tarang Complex Shop No 30,Ground Floor N.H. No- 06 Murtizapur Road,Opp Radhakrishna
Talkies,Akola 444004 Amaravathi - KFin Technologies Pvt. Ltd,Shop No. 21 2nd Floor,Gulshan
Tower,Near Panchsheel Talkies Jaistambh Square,Amaravathi 444601 Aurangabad - KFin
Technologies Pvt. Ltd,Shop no B 38,Motiwala Trade Center,Nirala Bazar,Aurangabad 431001
Bhopal - KFin Technologies Pvt. Ltd,Gurukripa Plaza, Plot No. 48A,Opposite City Hospital,
zone-2,M P nagar,Bhopal 462011 Dhule - KFin Technologies Pvt. Ltd,Ground Floor Ideal
Laundry Lane No 4,Khol Galli Near Muthoot Finance,Opp Bhavasar General Store,Dhule
424001 Indore - KFin Technologies Pvt. Ltd,101,Diamond Trade centre,-,Indore 452001
Jabalpur - KFin Technologies Pvt. Ltd., 2nd Floor, 290/1 (615-New), Near Bhavartal Garden,
Jabalpur - 482001. Jalgaon - KFin Technologies Pvt. Ltd,3rd floor,22 Yashodhah,Ring
Road,Jalgaon 425001 Nagpur - KFin Technologies Pvt. Ltd,Plot No. 2, Block No. B / 1 & 2 ,
Shree Apratment,Khare Town, Mata Mandir Road,Dharampeth,Nagpur 440010 Nasik - KFin
Technologies Pvt. Ltd,S-9 Second Floor,Suyojit Sankul,Sharanpur Road,Nasik 422002 Sagar -
KFin Technologies Pvt. Ltd,II floor Above shiva kanch mandir.,5 civil lines,Sagar,Sagar 470002
Ujjain - KFin Technologies Pvt. Ltd,Heritage Shop No. 227,87 Vishvavidhyalaya Marg,Station
Road,Near ICICI bank Above Vishal Megha Mart,Ujjain 456001 Asansol - KFin Technologies
Pvt. Ltd,112/N G. T. ROAD BHANGA PACHIL,G.T Road Asansol Pin: 713 303; ,Paschim
Bardhaman West Bengal,Asansol 713303 Balasore - KFin Technologies Pvt. Ltd,1-B. 1st Floor,
Kalinga Hotel Lane,Baleshwar,Baleshwar Sadar,Balasore 756001 Bankura - KFin Technologies
Pvt. Ltd,Plot nos- 80/1/ANATUNCHATI MAHALLA 3rd floor,Ward no-24 Opposite P.C
109 Axis Liquid Fund
Chandra,Bankura town,Bankura 722101 Berhampur (Or) - KFin Technologies Pvt. Ltd, Opp
Divya Nandan Kalyan Mandap,3rd Lane Dharam Nagar,Near Lohiya Motor,Berhampur (Or)
760001 Bhilai - KFin Technologies Pvt. Ltd,Office No.2, 1st Floor,Plot No. 9/6,Nehru Nagar
[East],Bhilai 490020 Bhubaneswar - KFin Technologies Pvt. Ltd,A/181 Back Side Of Shivam
Honda Show Room,Saheed Nagar,-,Bhubaneswar 751007 Bilaspur - KFin Technologies Pvt.
Ltd,Shop.No.306,3rd Floor,ANANDAM PLAZA,Vyapar Vihar Main Road,Bilaspur 495001
Bokaro - KFin Technologies Pvt. Ltd,CITY CENTRE, PLOT NO. HE-07,SECTOR-IV,BOKARO STEEL
CITY,Bokaro 827004 Burdwan - KFin Technologies Pvt. Ltd,Anima Bhavan 1st Floor Holding
No.-42,Sreepally G. T. Road,West Bengal,Burdwan 713103 Chinsura - KFin Technologies Pvt.
Ltd,No : 96,PO: CHINSURAH,DOCTORS LANE,Chinsurah 712101 Cuttack - KFin Technologies
Pvt. Ltd,SHOP NO-45,2ND FLOOR,,NETAJI SUBAS BOSE ARCADE,,(BIG BAZAR BUILDING)
ADJUSENT TO RELIANCE TRENDS,,DARGHA BAZAR,Cuttack 753001 Dhanbad - KFin
Technologies Pvt. Ltd,208 New Market 2Nd Floor,Bank More,-,Dhanbad 826001 Durgapur -
KFin Technologies Pvt. Ltd,MWAV-16 BENGAL AMBUJA,2ND FLOOR CITY CENTRE,Distt.
BURDWAN Durgapur-16 ,Durgapur 713216 Gaya - KFin Technologies Pvt. Ltd,Property No.
711045129, Ground FloorHotel Skylark,Swaraipuri Road,-,Gaya 823001 Jalpaiguri - KFin
Technologies Pvt. Ltd,D B C Road Opp Nirala Hotel,Opp Nirala Hotel,Opp Nirala
Hotel,Jalpaiguri 735101 Jamshedpur - KFin Technologies Pvt. Ltd,Madhukunj, 3rd Floor ,Q
Road, Sakchi,Bistupur, East Singhbhum,Jamshedpur 831001 Kharagpur - KFin Technologies
Pvt. Ltd,Holding No 254/220, SBI BUILDING,Malancha Road, Ward No.16, PO: Kharagpur, PS:
Kharagpur,Dist: Paschim Medinipur,Kharagpur 721304 Kolkata - KFin Technologies Pvt.
Ltd,Apeejay House ( Beside Park Hotel ),C Block3rd Floor,15 Park Street ,Kolkata 700016
Malda - KFin Technologies Pvt. Ltd,RAM KRISHNA PALLY; GROUND FLOOR,ENGLISH BAZAR,-
,Malda 732101 Patna - KFin Technologies Pvt. Ltd,3A 3Rd Floor Anand Tower,Exhibition
Road,Opp Icici Bank,Patna 800001 Raipur - KFin Technologies Pvt. Ltd,OFFICE NO S-13
SECOND FLOOR REHEJA TOWER,FAFADIH CHOWK,JAIL ROAD,Raipur 492001 Ranchi - KFin
Technologies Pvt. Ltd,Room No 307 3Rd Floor ,Commerce Tower ,Beside Mahabir Tower
,Ranchi 834001 Rourkela - KFin Technologies Pvt. Ltd,2nd Floor, Main Road,UDIT
NAGAR,SUNDARGARH,Rourekla 769012 Sambalpur - KFin Technologies Pvt. Ltd,First Floor;
Shop No. 219,SAHEJ PLAZA,Golebazar; Sambalpur,Sambalpur 768001 Siliguri - KFin
Technologies Pvt. Ltd,Nanak Complex, 2nd Floor,Sevoke Road,-,Siliguri 734001 Agra - KFin
Technologies Pvt. Ltd,House No. 17/2/4, 2nd Floor,Deepak Wasan Plaza,Behind Hotel
Holiday INN,Sanjay Place,Agra 282002 Aligarh - KFin Technologies Pvt. Ltd,Sebti
Complex Centre Point,Sebti Complex Centre Point,-,Aligarh 202001 Allahabad - KFin
Technologies Pvt. Ltd,Meena Bazar,2nd Floor 10 S.P. Marg Civil Lines,Subhash Chauraha,
Prayagraj,Allahabad 211001 Ambala - KFin Technologies Pvt. Ltd,6349, 2nd Floor,Nicholson
Road,Adjacent Kos Hospitalambala Cant,Ambala 133001 Azamgarh - KFin Technologies
Pvt. Ltd,House No. 290, Ground Floor,Civil lines, Near Sahara Office,-,Azamgarh 276001
Bareilly - KFin Technologies Pvt. Ltd,1ST FLOORREAR SIDEA -SQUARE BUILDING,54-CIVIL
LINES,Ayub Khan Chauraha,Bareilly 243001 Begusarai - KFin Technologies Pvt. Ltd,C/o Dr
Hazari Prasad Sahu,Ward No 13, Behind Alka Cinema,Begusarai (Bihar),Begusarai 851117
Bhagalpur - KFin Technologies Pvt. Ltd,2Nd Floor,Chandralok ComplexGhantaghar,Radha
Rani Sinha Road,Bhagalpur 812001 Darbhanga - KFin Technologies Pvt. Ltd,Jaya
Complex2Nd Floor,Above Furniture, lanetDonar, Chowk, Darbhanga 846003 Dehradun -
KFin Technologies Pvt. Ltd,Kaulagarh Road,Near Sirmaur Margabove,Reliance
Webworld,Dehradun 248001 Deoria - KFin Technologies Pvt. Ltd,K. K. Plaza,Above Apurwa
Sweets,Civil Lines Road,Deoria 274001 Faridabad - KFin Technologies Pvt. Ltd,A-2B 2nd
Floor,Neelam Bata Road Peer ki Mazar,Nehru Groundnit,Faridabad 121001 Ghaziabad -
KFin Technologies Pvt. Ltd,FF - 31, Konark Building,Rajnagar,-,Ghaziabad 201001 Ghazipur -
KFin Technologies Pvt. Ltd,House No. 148/19,Mahua Bagh,-,Ghazipur 233001 Gonda - KFin
Technologies Pvt. Ltd,H No 782,Shiv Sadan,ITI Road,Near Raghukul Vidyapeeth,Civil
lines,Gonda 271001 Gorakhpur - KFin Technologies Pvt. Ltd,Above V.I.P. House
ajdacent,A.D. Girls College,Bank Road,Gorakpur 273001 Gurgaon - KFin Technologies Pvt.
Ltd,No: 212A, 2nd Floor, Vipul Agora,M. G. Road,-,Gurgaon 122001 Gwalior - KFin
Technologies Pvt. Ltd,City Centre,Near Axis Bank,-,Gwalior 474011 Haldwani - KFin
Technologies Pvt. Ltd,Shoop No 5,KMVN Shoping Complex,-,Haldwani 263139 Haridwar -
KFin Technologies Pvt. Ltd,Shop No. - 17,Bhatia Complex,Near Jamuna Palace,Haridwar
249410 Hissar - KFin Technologies Pvt. Ltd,Shop No. 20, Ground Floor,R D City Centre,Railway
Road,Hissar 125001 Jhansi - KFin Technologies Pvt. Ltd,1st Floor, Puja Tower,Near 48
Chambers,ELITE Crossing,Jhansi 284001 Kanpur - KFin Technologies Pvt. Ltd,15/46 B Ground
Floor,Opp : Muir Mills,Civil Lines,Kanpur 208001 Lucknow - KFin Technologies Pvt. Ltd,Ist
Floor,A. A. Complex,5 Park Road Hazratganj Thaper House,Lucknow 226001 Mandi - "KFin
110 Axis Liquid Fund
Technologies Pvt. Ltd, House No. 99/11, 3rd Floor,Opposite GSS Boy School,School
Bazar,Mandi 175001" Mathura - KFin Technologies Pvt. Ltd,Shop No. 9, Ground Floor, Vihari
Lal Plaza,Opposite Brijwasi Centrum,Near New Bus Stand,Mathura 281001 Meerut - KFin
Technologies Pvt. Ltd,H No 5,Purva Eran, Opp Syndicate Bank,Hapur Road,Meerut 250002
Mirzapur - KFin Technologies Pvt. Ltd,House No. 404,Ward No. 8,Dankeenganj,
Mirzapur,Mirzapur 231001 Moradabad - KFin Technologies Pvt. Ltd,Chadha Complex,G. M.
D. Road,Near Tadi Khana Chowk,Moradabad 244001 Morena - KFin Technologies Pvt.
Ltd,House No. HIG 959,Near Court,Front of Dr. Lal Lab,Old Housing Board Colony,Morena
476001 Muzaffarpur - KFin Technologies Pvt. Ltd,First Floor Saroj Complex ,Diwam Road,Near
Kalyani Chowk,Muzaffarpur 842001 Noida - KFin Technologies Pvt. Ltd,F-21,2nd Floor,Near
Kalyan Jewelers,Sector-18,Noida 201301 Panipat - KFin Technologies Pvt. Ltd,Preet Tower,
3rd Floor,Near NK Tower,G.T. Road,Panipat 132103 Renukoot - KFin Technologies Pvt.
Ltd,C/o Mallick Medical Store,Bangali Katra Main Road,Dist. Sonebhadra (U.P.),Renukoot
231217 Rewa - KFin Technologies Pvt. Ltd,Shop No. 2, Shree Sai Anmol Complex,Ground
Floor,Opp Teerth Memorial Hospital,Rewa 486001 Rohtak - KFin Technologies Pvt. Ltd,Shop
No 14, Ground Floor,Ashoka Plaza,Delhi Road ,Rohtak 124001 Roorkee - KFin Technologies
Pvt. Ltd,Shree Ashadeep Complex 16,Civil Lines,Near Income Tax Office,Roorkee 247667
Satna - KFin Technologies Pvt. Ltd,Jainam Market,Purana Power House Chauraha,Panni Lal
Chowk,Satna 485001 Shimla - KFin Technologies Pvt. Ltd,1st Floor,Hills View Complex,Near
Tara Hall,Shimla 171001 Shivpuri - KFin Technologies Pvt. Ltd,A. B. Road,In Front of Sawarkar
Park,Near Hotel Vanasthali,Shivpuri 473551 Sitapur - KFin Technologies Pvt. Ltd,12/12 Surya
Complex,Station Road ,Uttar Pradesh,Sitapur 261001 Solan - KFin Technologies Pvt. Ltd,Disha
Complex, 1St Floor,Above Axis Bank,Rajgarh Road,Solan 173212 Sonepat - KFin
Technologies Pvt. Ltd,2nd floor,DP Tower, Model Town,Near Subhash Chowk,Sonepat
131001 Sultanpur - KFin Technologies Pvt. Ltd,1st Floor, Ramashanker Market,Civil Line,-
,Sultanpur 228001 Varanasi - KFin Technologies Pvt. Ltd,D-64/132, 2nd Floor ,KA, Mauza,
Shivpurwa, Settlement Plot No 478 Pargana, Dehat Amanat, Mohalla Sigra,Varanashi
221010 Yamuna Nagar - KFin Technologies Pvt. Ltd,B-V, 185/A, 2nd Floor, Jagadri
Road,,Near DAV Girls College, (UCO Bank Building) Pyara Chowk,-,Yamuna Nagar 135001
Kolhapur - KFin Technologies Pvt. Ltd,605/1/4 E Ward Shahupuri 2Nd Lane,Laxmi Niwas,Near
Sultane Chambers,Kolhapur 416001 Mumbai - KFin Technologies Pvt. Ltd,24/B Raja Bahadur
Compound,Ambalal Doshi Marg,Behind Bse Bldg,Fort 400001 Pune - KFin Technologies Pvt.
Ltd,Office # 207-210, second floor,Kamla Arcade, JM Road. Opposite Balgandharva,Shivaji
Nagar,Pune 411005 Vashi - KFin Technologies Pvt. Ltd,Vashi Plaza,Shop no. 324,C Wing, 1ST
Floor,Sector 17,Vashi Mumbai,400705 Vile Parle - KFin Technologies Pvt. Ltd,Shop No.1
Ground Floor,,Dipti Jyothi Co-operative Housing Society,,Near MTNL office P M Road,,Vile
Parle East,400057 Borivali - KFin Technologies Pvt. Ltd,Gomati SmutiGround Floor,Jambli
Gully,Near Railway Station ,Borivali Mumbai,400 092 Thane - KFin Technologies Pvt. Ltd,Room
No. 302 3rd FloorGanga Prasad,Near RBL Bank Ltd,Ram Maruti Cross RoadNaupada Thane
West ,Mumbai,400602 Ajmer - KFin Technologies Pvt. Ltd,302 3rd Floor,Ajmer Auto
Building,Opposite City Power House,Jaipur Road; Ajmer 305001 Alwar - KFin Technologies
Pvt. Ltd,Office Number 137, First Floor,Jai Complex,Road No-2,Alwar 301001 Amritsar - KFin
Technologies Pvt. Ltd,SCO 5 ,2nd Floor, District Shopping Complex,Ranjit Avenue,Amritsar
143001 Bhatinda - KFin Technologies Pvt. Ltd,MCB -Z-3-01043, 2 floor, GONIANA
ROAD,OPPORITE NIPPON INDIA MF GT ROAD,NEAR HANUMAN CHOWK,Bhatinda 151001
Bhilwara - KFin Technologies Pvt. Ltd,Office No. 14 B, Prem Bhawan,Pur Road, Gandhi
Nagar,Near CanaraBank,Bhilwara 311001 Bikaner - KFin Technologies Pvt. Ltd,70-71 2Nd
Floor | Dr.Chahar Building ,Panchsati Circle,Sadul Ganj ,Bikaner 334003 Chandigarh - KFin
Technologies Pvt. Ltd,First floor, SCO 2469-70,Sec. 22-C,-,Chandigarh 160022Ferozpur - KFin
Technologies Pvt. Ltd,The Mall Road Chawla Bulding Ist Floor,Opp. Centrail Jail,Near
Hanuman Mandir,Ferozepur 152002 Hoshiarpur - KFin Technologies Pvt. Ltd,Unit # SF-6,The
Mall Complex,2nd Floor , Opposite Kapila Hospital,Sutheri Road,Hoshiarpur 146001 Jaipur -
KFin Technologies Pvt. Ltd,Office no 101, 1st Floor,Okay Plus Tower,Next to Kalyan
Jewellers,Government Hostel Circle, Ajmer Road,Jaipur 302001 Jalandhar - KFin
Technologies Pvt. Ltd,Office No 7, 3rd Floor, City Square building,E-H197 Civil Line,Next to
Kalyan Jewellers,Jalandhar 144001 Jammu - KFin Technologies Pvt. Ltd.,304, A-1, 03rd Floor
,North Block, Bahu Plaza, Jammu -180004. Jodhpur - KFin Technologies Pvt. Ltd,Shop No. 6,
GANG TOWER, G Floor,OPPOSITE ARORA MOTER SERVICE CENTRE,NEAR BOMBAY MOTER
CIRCLE,Jodhpur 342003 Karnal - KFin Technologies Pvt. Ltd,18/369Char Chaman,Kunjpura
Road,Behind Miglani Hospital,Karnal 132001 Kota - KFin Technologies Pvt. Ltd,D-8, SHRI RAM
COMPLEX,OPPOSITE MULTI PURPOSE SCHOOL,GUMANPUR,Kota 324007 Ludhiana - KFin
Technologies Pvt. Ltd,SCO 122, Second floor,Above Hdfc Mutual fun,,Feroze Gandhi
111 Axis Liquid Fund
Market,Ludhiana 141001 Moga - KFin Technologies Pvt. Ltd,1St FloorDutt Road,Mandir Wali
Gali,Civil Lines Barat Ghar ,Moga 142001 New Delhi - KFin Technologies Pvt. Ltd,305 New
Delhi House ,27 Barakhamba Road ,-,New Delhi 110001 Pathankot - KFin Technologies Pvt.
Ltd,2nd Floor Sahni Arcade Complex,Adj.Indra colony Gate Railway
Road,Pathankot,Pathankot 145001 Patiala - KFin Technologies Pvt. Ltd,B- 17/423,Lower Mall
Patiala,Opp Modi College,Patiala 147001 Sikar - KFin Technologies Pvt. Ltd,First FloorSuper
Tower ,Behind Ram Mandir Near Taparya Bagichi ,-,Sikar 332001Sri Ganganagar - KFin
Technologies Pvt. Ltd,Address Shop No. 5, Opposite Bihani Petrol Pump,NH - 15,near Baba
Ramdev Mandir,Sri Ganganagar 335001 Udaipur - KFin Technologies Pvt. Ltd,Shop No. 202,
2nd Floor business centre,1C Madhuvan,Opp G P O Chetak Circle ,Udaipur 313001
Axis Asset Management Company Limited (Investment Manager to Axis Mutual Fund)Axis
House, 1st Floor, C-2 Wadia International ,Pandurang Budhkar Marg, Worli, Mumbai -
400025, India.
TEL 022 4325 5100 FAX 022 4325 5199 TOLL FREE 1800 221322 and additional contact number
8108622211(Chargeable) EMAIL [email protected] WEB www.axismf.com
Axis Dynamic Bond Fund 1
S C H E M E I N F O R M A T I O N D O C U M E N T
AXIS DYNAMIC BOND FUND
An open ended dynamic debt scheme investing across duration
Continuous offer for Units at NAV based prices
This product is suitable for investors who are seeking*:
• Optimal returns over medium to long term
• To generate stable returns while maintaining liquidity through active management of a portfolio of
debt and money market instruments.
* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Name of Mutual Fund : Axis Mutual Fund
Name of Asset Management Company : Axis Asset Management Company Ltd.
Name of Trustee Company : Axis Mutual Fund Trustee Ltd.
Addresses, Website of the entities : Axis House, 1st Floor, C-2, Wadia International Centre,
Pandurang Budhkar Marg, Worli, Mumbai - 400 025
www.axismf.com
Name of Sponsor : Axis Bank Ltd.
The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board
of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations or the
Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the Asset
Management Company (AMC). The units being offered for public Subscription have not been approved or
recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information
Document.
The Scheme Information Document sets forth concisely the information about the Scheme that a
prospective Investor ought to know before investing. Before investing, Investors should also ascertain about
any further changes to this Scheme Information Document after the date of this Document from the Mutual
Fund / Investor Service Centres / Website / Distributors or Brokers.
The investors are advised to refer to the Statement of Additional Information (SAI) for details of Axis Mutual
Fund, Tax and Legal issues and general information on www.axismf.com.
SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of
the current SAI, please contact your nearest Investor Service Centre or log on to our website.
The Scheme Information Document should be read in conjunction with the SAI and not in isolation.
This Scheme Information Document is dated November 27, 2020.
Axis Dynamic Bond Fund 2
TABLE OF CONTENTS
HIGHLIGHTS/SUMMARY OF THE SCHEME ............................................................................................ 3
I. INTRODUCTION ......................................................................................................................... 5
A. RISK FACTORS .................................................................................................................................. 5
i. Standard Risk Factors: .............................................................................................................. 5
ii. Scheme Specific Risk Factors .................................................................................................. 5
B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME ........................................................ 9
C. SPECIAL CONSIDERATIONS, if any ............................................................................................... 9
D. DEFINITIONS ................................................................................................................................... 10
E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY .................................................... 15
II. INFORMATION ABOUT THE SCHEME ...................................................................................... 16
A. TYPE OF THE SCHEME ................................................................................................................... 16
B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? ........................................................ 16
C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? ...................................................................... 16
D. WHERE WILL THE SCHEME INVEST? ............................................................................................. 34
E. WHAT ARE THE INVESTMENT STRATEGIES? ................................................................................ 40
F. FUNDAMENTAL ATTRIBUTES ......................................................................................................... 46
G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? ................................................. 46
H. WHO MANAGES THE SCHEME? ................................................................................................. 47
I. WHAT ARE THE INVESTMENT RESTRICTIONS? ............................................................................ 48
J. CREATION OF SEGREGATED PORTFOLIO ................................................................................. 53
K. HOW HAS THE SCHEME PERFORMED? ...................................................................................... 57
L. INVESTMENTS BY THE AMC .......................................................................................................... 58
M. ADDITIONAL SCHEME RELATED DISCLOSURES ........................................................................ 58
III. UNITS AND OFFER .................................................................................................................... 60
A. NEW FUND OFFER (NFO) ............................................................................................................. 60
B. ONGOING OFFER DETAILS .......................................................................................................... 70
C. PERIODIC DISCLOSURES ............................................................................................................ 105
D. COMPUTATION OF NAV ............................................................................................................ 109
IV. FEES AND EXPENSES .............................................................................................................. 110
A. NEW FUND OFFER (NFO) EXPENSES ......................................................................................... 110
B. ANNUAL SCHEME RECURRING EXPENSES .............................................................................. 110
C. LOAD STRUCTURE ....................................................................................................................... 113
D. WAIVER OF LOAD FOR DIRECT APPLICATIONS ..................................................................... 115
V. RIGHTS OF UNITHOLDERS ...................................................................................................... 116
VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR
INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING
TAKEN BY ANY REGULATORY AUTHORITY ....................................................................................... 117
Axis Dynamic Bond Fund 3
HIGHLIGHTS/SUMMARY OF THE SCHEME
Investment objective
The scheme will endeavor to generate optimal returns while maintaining liquidity through
active management of a portfolio of debt and money market instruments.
Liquidity
The Scheme offers Units for Subscription and Redemption at NAV based prices on all Business
Days. Under normal circumstances the AMC shall dispatch the redemption proceeds within 10
business days from the date of receipt of request from the Unit holder.
Benchmark
Nifty Composite Debt index
Plans and Options under the Plan(s) of the Scheme
Plans
Axis Dynamic Bond Fund – Regular Plan
Axis Dynamic Bond Fund – Direct Plan
Each plan offers the following options:
Growth option
Dividend option
Options Sub-options
Growth Nil
Dividend Quarterly(payout and reinvestment)
Half yearly(payout and reinvestment)
Direct Plan
Direct Plan is only for investors who purchase/ subscribe Units in a Scheme directly with the
Fund and is not available for investors who route their investments through a Distributor.
Eligible investors / modes for applying
All categories of investors (whether existing or new Unitholders) as permitted under the Scheme
Information Document of the Scheme are eligible to subscribe under Direct Plan. Investments
under Direct Plan can be made through various modes offered by the Fund for investing
directly with the Fund {except Platform(s) where investors’ applications for subscription of units
are routed through Distributors}.
All the plans will have common portfolio.
Minimum Application Amount
Rs. 5,000 and in multiples of Re. 1/- thereafter
Minimum Additional Purchase Amount
Rs.100 and in multiples of Re. 1/- thereafter
Minimum application amount is applicable only at the time of creation of new folio. and at the
time of first investment in a plan.
Loads
Entry Load: Not Applicable
Exit Load: Nil
SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 has decided that
there shall be no entry Load for all Mutual Fund schemes.
Axis Dynamic Bond Fund 4
For more details on Load Structure, refer to the paragraph ‘Load Structure’.
Transparency/NAV Disclosure
The AMC will calculate and disclose the NAVs on all Business Days. The AMC shall update the
NAVs on its website (www.axismf.com) and of the Association of Mutual Funds in India - AMFI
(www.amfiindia.com) before 11.00 p.m. on every Business Day. If the NAVs are not available
before the commencement of Business Hours on the following day due to any reason, the
Mutual Fund shall issue a press release giving reasons and explaining when the Mutual Fund
would be able to publish the NAV.
The AMC will disclose the portfolio of the Scheme (alongwith ISIN) on fortnightly and half yearly
basis on the website of the Mutual Fund and AMFI within 5 days of every fortnight and within 10
days from the close of each half year (i.e. 31st March and 30th September) respectively in a
user-friendly and downloadable spreadsheet format. Further, AMC shall publish an
advertisement, in an all India edition of one national English daily newspaper and in one Hindi
newspaper, every half year disclosing the hosting of the half-yearly statement of its schemes
portfolio on the website of the Mutual Fund and AMFI and the modes through which unitholder
can submit a request for a physical or electronic copy of the statement of scheme portfolios.
The AMC will also provide a dashboard, in a comparable, downloadable (spreadsheet) and
machine readable format, providing performance and key disclosures like Scheme’s AUM,
investment objective, expense ratios, portfolio details, scheme’s past performance etc. on its
website.
The AMC will make available the Annual Report of the Scheme within four months of the end
of the financial year on its website and on the website of AMFI along with a link.
Axis Dynamic Bond Fund 5
I. INTRODUCTION
A. RISK FACTORS
i. Standard Risk Factors:
Investment in mutual fund units involves investment risks such as trading volumes, settlement
risk, liquidity risk, default risk including the possible loss of principal.
As the price / value / interest rates of the securities in which the Scheme invests fluctuates,
the value of your investment in the Scheme may go up or down.
Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future
performance of the Scheme.
Axis Dynamic Bond Fund is the name of the Scheme and does not in any manner indicate
either the quality of the Scheme or its future prospects and returns.
The sponsor is not responsible or liable for any loss resulting from the operation of the
Scheme beyond the initial contribution of Rs. 1 lakh made by it towards setting up the Fund.
Axis Dynamic Bond Fund is not a guaranteed or assured return scheme.
ii. Scheme Specific Risk Factors
Risks associated with investments in Fixed Income Securities
Interest-Rate Risk: Fixed income securities such as government bonds, corporate bonds, money
market instruments and derivatives run price-risk or interest-rate risk. Generally, when interest
rates rise, prices of existing fixed income securities fall and when interest rates drop, such prices
increase. The extent of fall or rise in the prices depends upon the coupon and maturity of the
security. It also depends upon the yield level at which the security is being traded.
Re-investment Risk: Investments in fixed income securities carry re-investment risk as interest
rates prevailing on the coupon payment or maturity dates may differ from the original coupon
of the bond.
Basis Risk: The underlying benchmark of a floating rate security or a swap might become less
active or may cease to exist and thus may not be able to capture the exact interest rate
movements, leading to loss of value of the portfolio.
Spread Risk: In a floating rate security the coupon is expressed in terms of a spread or mark up
over the benchmark rate. In the life of the security this spread may move adversely leading to
loss in value of the portfolio. The yield of the underlying benchmark might not change, but the
spread of the security over the underlying benchmark might increase leading to loss in value of
the security.
Liquidity Risk: The liquidity of a bond may change, depending on market conditions leading to
changes in the liquidity premium attached to the price of the bond. At the time of selling the
security, the security can become illiquid, leading to loss in value of the portfolio.
Liquidity Risk on account of unlisted securities: The liquidity and valuation of the Schemes’
investments due to their holdings of unlisted securities may be affected if they have to be sold
prior to their target date of divestment. The unlisted security can go down in value before the
divestment date and selling of these securities before the divestment date can lead to losses in
the portfolio.
Credit Risk: This is the risk associated with the issuer of a debenture/bond or a money market
instrument defaulting on coupon payments or in paying back the principal amount on
maturity. Even when there is no default, the price of a security may change with expected
changes in the credit rating of the issuer. It is to be noted here that a Government Security is a
sovereign security and is the safest. Corporate bonds carry a higher amount of credit risk than
Government Securities. Within corporate bonds also there are different levels of safety and a
bond rated higher by a particular rating agency is safer than a bond rated lower by the same
rating agency.
Axis Dynamic Bond Fund 6
Settlement Risk: Fixed income securities run the risk of settlement which can adversely affect
the ability of the fund house to swiftly execute trading strategies which can lead to adverse
movements in NAV
Risk associated with Securitized Debt
The Scheme may invest in domestic securitized debt such as Asset Backed Securities (ABS) or
Mortgage Backed Securities (MBS). ABS are securitized debts where the underlying assets are
receivables arising from various loans including automobile loans, personal loans, loans against
consumer durables, etc. MBS are securitized debts where the underlying assets are receivables
arising from loans backed by mortgage of residential / commercial properties.
At present in Indian market, following types of loans are securitized:
1. Auto Loans (cars / commercial vehicles /two wheelers)
2. Residential Mortgages or Housing Loans
3. Consumer Durable Loans
4. Personal Loans
5. Corporate Loans
In terms of specific risks attached to securitization, each asset class would have different
underlying risks. Residential Mortgages generally have lower default rates than other asset
classes, but repossession becomes difficult. On the other hand, repossession and subsequent
recovery of commercial vehicles and other auto assets is fairly easier and better compared to
mortgages. Asset classes like personal loans, credit card receivables are unsecured and in an
economic downturn may witness higher default. A corporate loan/receivable, depend upon
the nature of the underlying security for the loan or the nature of the receivable and the risks
correspondingly fluctuate.
The rating agencies define margins, over collateralisation and guarantees to bring risk in line
with similar AAA rated securities. The factors typically analyzed for any pool are as follows:
a. Assets securitized and Size of the loan: This indicates the kind of assets financed with the
loan and the average ticket size of the loan. A very low ticket size might mean more costs
in originating and servicing of the assets.
b. Diversification: Diversification across geographical boundaries and ticket sizes might result
in lower delinquency
c. Loan to Value Ratio: Indicates how much % value of the asset is financed by borrower’s
own equity. The lower this value the better it is. This suggests that where the borrowers own
contribution of the asset cost is high; the chances of default are lower.
d. Average seasoning of the pool: This indicates whether borrowers have already displayed
repayment discipline. The higher the number, the more superior it is.
The other main risks pertaining to Securitised debt are as follows:
Prepayment Risk: This arises when the borrower pays off the loan sooner than expected. When
interest rates decline, borrowers tend to pay off high interest loans with money borrowed at a
lower interest rate, which shortens the average maturity of ABS. However, there is some
prepayment risk even if interest rates rise, such as when an owner pays off a mortgage when
the house is sold or an auto loan is paid off when the car is sold.
Reinvestment Risk: Since prepayment risk increases when interest rates decline, this also
introduces reinvestment risk, which is the risk that the principal can only be reinvested at a
lower rate.
Risks associated with investments in Derivatives
Credit Risk: The credit risk is the risk that the counter party will default in it’s obligations and is
generally small as in a Derivative transaction there is generally no exchange of the principal
amount.
Axis Dynamic Bond Fund 7
Interest rate risk: Derivatives carry the risk of adverse changes in the price due to change in
interest rates.
Basis Risk: When a bond is hedged using a Derivative, the change in price of the bond and the
change in price of the Derivative may not be fully correlated leading to basis risk in the
portfolio.
Liquidity risk: During the life of the Derivative, the benchmark might become illiquid and might
not be fully capturing the interest rate changes in the market, or the selling, unwinding prices
might not reflect the underlying assets, rates and indices, leading to loss of value of the
portfolio.
Model Risk: The risk of mis–pricing or improper valuation of Derivatives.
Trade Execution: Risk where the final execution price is different from the screen price leading
to dilution in the spreads and hence impacting the profitability of the reverse arbitrage
strategy.
Systemic Risk: For Derivatives, especially OTC ones the failure of one Counter Party can put the
whole system at risk and the whole system can come to a halt.
Derivative products are leveraged instruments and can provide disproportionate gains as well
as disproportionate losses to the Investor. Execution of strategies depends upon the ability of
the fund manager to identify such opportunities. Identification and execution of the strategies
to be pursued by the fund manager involve uncertainty and decision of fund manager may
not always be profitable. No assurance can be given that the fund manager will be able to
identify or execute such strategies.
The risks associated with the use of Derivatives are different from or possibly greater than, the
risks associated with investing directly in securities and other traditional investments.
Risks associated with Repo transactions in Corporate Bonds
The Scheme may be exposed to counter party risk in case of repo lending transactions in the
event of the counterparty failing to honour the repurchase agreement. However in repo
transactions, the collateral may be sold and a loss is realized only if the sale price is less than
the repo amount. The risk is further mitigated through over-collateralization (the value of the
collateral being more than the repo amount).
Risks associated with Creation of Segregated portfolio
1. Investor holding units of segregated portfolio may not able to liquidate their holding till the
time recovery of money from the issuer.
2. Security comprises of segregated portfolio may not realise any value.
3. Listing of units of segregated portfolio on recognised stock exchange does not necessarily
guarantee their liquidity. There may not be active trading of units in the stock market.
Further trading price of units on the stock market may be significantly lower than the
prevailing NAV.
Risk Factor associated with debt instruments having credit enhancement:
The Scheme may invest in debt instruments having credit enhancement backed by equity
shares/guarantees or other any assets as collateral. The profile of these issuers tend to be
relatively weak and there may be a pledge of shares of a related party to enhance credit
quality or guarantees provided or any other asset provided as security acceptable to lenders.
Where equity shares are provided as collateral there is the risk of sharp price volatility of
underlying securities which may lead to erosion in value of collateral which may affect the
ability of the fund to enforce collateral and recover capital and interest obligations. Also there
is a possibility of guarantor going insolvent which also can impact the recovery value of
exposure. In case of credit enhanced structures backed by equity share the liquidity of the
underlying shares may be low leading to a lower recovery and a higher impact cost of
liquidation. In case of other assets provided recovery value and enforce ability of asset can
also be a risk factor which can lower the recovery value.
Axis Dynamic Bond Fund 8
Risk associated with Short Selling & Securities Lending
Securities Lending is a lending of securities through an approved intermediary to a borrower
under an agreement for a specified period with the condition that the borrower will return
equivalent securities of the same type or class at the end of the specified period along with the
corporate benefits accruing on the securities borrowed. There are risks inherent in securities
lending, including the risk of failure of the other party, in this case the approved intermediary to
comply with the terms of the agreement. Such failure can result in a possible loss of rights to the
collateral, the inability of the approved intermediary to return the securities deposited by the
lender and the possible loss of corporate benefits accruing thereon.
Short-selling is the sale of shares or securities that the seller does not own at the time of trading.
Instead, he borrows it from someone who already owns it. Later, the short seller buys back the
stock/security he shorted and returns the stock/security to the lender to close out the loan. The
inherent risks are Counterparty risk and liquidity risk of the stock/security being borrowed. The
security being short sold might be illiquid or become illiquid and covering of the security might
occur at a much higher price level than anticipated, leading to losses.
Risks associated with transaction in Units through stock exchange(s)
In respect of transaction in Units of the Scheme through BSE and / or NSE, allotment and
redemption of Units on any Business Day will depend upon the order processing / settlement by
BSE and / or NSE and their respective clearing corporations on which the scheme has no
control.
Risk Associated with investment in Foreign Securities
Subject to necessary approvals, the Scheme may also invest in overseas financial assets as
permitted under the applicable regulations. The value of an investment in a foreign issuer’s
securities may depend on general global economic factors or specific economic and political
factors relating to the country or countries in which the foreign issuer operates. To the extent
the assets of the Scheme are invested in overseas financial assets, there may be risk associated
with fluctuation in foreign exchange rates, restriction on repatriation of capital and earnings
under the exchange control regulations and transaction procedure in overseas market. The
repatriation of capital to India may also be hampered by changes in regulations concerning
exchange controls, political circumstances, bi-lateral conflicts or prevalent tax laws. Since the
Scheme would invest only partially in foreign securities, there may not be readily available and
widely accepted benchmarks to measure performance of such Scheme. To manage risks
associated with foreign currency and interest rate exposure, the scheme may use derivatives
for efficient portfolio management and hedging and portfolio rebalancing and in accordance
with conditions as may be stipulated under the Regulations and by RBI from time to time.
Investment in foreign securities carries currency risk. Currency risk is a form of risk that arises from
the change in price of one currency against other. The exchange risk associated with a foreign
denominated instrument is a key element in foreign investment. This risk flows from differential
monetary policy and growth in real productivity, which results in differential inflation rates. The
risk arises because currencies may move in relation to each other.
It may also be noted that active management of the portfolio may sometimes result in under-
performance in the short term. However, the fund manager will endeavour to identify
opportunities on a consistent basis and will strive to achieve the investment objective of the
scheme.
Risk Factors Associated with Investments in REITs and InvITS:
Price-Risk or Interest-Rate Risk: REITs & InvITs run price-risk or interest-rate risk. Generally,
when interest rates rise, prices of existing securities fall and when interest rates drop, such
prices increase. The extent of fall or rise in the prices is a function of the existing coupon,
days to maturity and the increase or decrease in the level of interest rates.
Axis Dynamic Bond Fund 9
Credit Risk: In simple terms this risk means that the issuer of a debenture/ bond or a money
market instrument may default on interest payment or even in paying back the principal
amount on maturity. REITs & InvITs are likely to have volatile cash flows as the repayment
dates would not necessarily be pre scheduled.
Liquidity or Marketability Risk: This refers to the ease with which a security can be sold at or
near to its valuation yield-to-maturity (YTM). The primary measure of liquidity risk is the
spread between the bid price and the offer price quoted by a dealer. As these products
are new to the market they are likely to be exposed to liquidity risk.
Reinvestment Risk: Investments in REITs & InvITs may carry reinvestment risk as interest rates
prevailing on the interest or maturity due dates may differ from the original coupon of the
bond. Consequently, the proceeds may get invested at a lower rate.
Risk of lower than expected distributions: The distributions by the REIT or InvIT will be based
on the net cash flows available for distribution. The amount of cash available for distribution
principally depends upon the amount of cash that the REIT/ InvITs receives as dividends or
the interest and principal payments from portfolio assets.
The above are some of the common risks associated with investments in REITs & InvITs. There
can be no assurance that investment objectives will be achieved, or that there will be no loss
of capital. Investment results may vary substantially on a monthly, quarterly or annual basis.
B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME
The Scheme shall have a minimum of 20 Investors and no single Investor shall account for more
than 25% of the corpus of the Scheme. The aforesaid conditions should be complied with in
each calendar quarter on an average basis. In case the Scheme does not have a minimum of
20 Investors on an ongoing basis for each calendar quarter, the provisions of Regulation
39(2)(c) of the SEBI (MF) Regulations would become applicable automatically without any
reference from SEBI and accordingly the Scheme shall be wound up and the units would be
redeemed at Applicable NAV. If there is a breach of the 25% limit by any Investor over the
quarter, a rebalancing period of one month would be allowed and thereafter the Investor who
is in breach of the rule shall be given 15 days’ notice to redeem his exposure over the 25% limit.
Failure on the part of the said investor to redeem his exposure over the 25% limit within the
aforesaid 15 days would lead to automatic Redemption by the Mutual Fund at the Applicable
NAV on the 15th day of the notice period. The scheme shall adhere to the requirements
prescribed by SEBI from time to time in this regard.
C. SPECIAL CONSIDERATIONS, if any
Prospective investors should study this Scheme Information Document and Statement of
Additional Information carefully in its entirety and should not construe the contents hereof
as advise relating to legal, taxation, financial, investment or any other matters and are
advised to consult their legal, tax, financial and other professional advisors to determine
possible legal, tax, financial or other considerations of subscribing to or redeeming Units,
before making a decision to invest/redeem/hold Units.
The Scheme related documents i.e. SID/ KIM/ SAI or the units of the Fund are not registered
in any jurisdiction including the United States of America nor in any provincial/ territorial
jurisdiction in Canada. The distribution of the Scheme related document in certain
jurisdictions may be restricted or subject to registration requirements and, accordingly,
persons who come into possession of the Scheme related documents are required to
inform themselves about, and to observe any such restrictions. No persons receiving a copy
of this Scheme related documents or any accompanying application form in such
jurisdiction may treat these Scheme related documents or such application form as
constituting an invitation to them to subscribe for units, nor should they in any event use any
such application form, unless in the relevant jurisdiction such an invitation could lawfully be
made to them and such application form could lawfully be used without compliance with
any registration or other legal requirements. Accordingly the Scheme related documents
do not constitute an offer or solicitation by anyone in any jurisdiction in which such offer or
Axis Dynamic Bond Fund 10
solicitation is not lawful or in which the person making such offer or solicitation is not
qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation as
per applicable law.
The AMC, Trustee or the Mutual Fund have not authorized any person to issue any
advertisement or to give any information or to make any representations, either oral or
written, other than that contained in this Scheme Information Document or the Statement
of Additional Information or as is provided by the AMC in connection with this offering.
Prospective Investors are advised not to rely upon any information or representation not
incorporated in the Scheme Information Document or Statement of Additional Information
or as provided by the AMC as having been authorized by the Mutual Fund, the AMC or the
Trustee.
Redemption due to change in the fundamental attributes of the Scheme or due to
any other reasons may entail tax consequences. The Trustee, AMC, Mutual Fund, their
directors or their employees shall not be liable for any such tax consequences that may
arise due to such redemptions.
The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for
any of the tax consequences that may arise, in the event that the Scheme is wound up for
the reasons and in the manner provided in Statement of Additional Information.
The tax benefits described in this Scheme Information Document and Statement of
Additional Information are as available under the present taxation laws and are available
subject to relevant conditions. The information given is included only for general purpose
and is based on advise received by the AMC regarding the law and practice currently in
force in India as on the date of this Scheme Information Document and the Unit holders
should be aware that the relevant fiscal rules or their interpretation may change. As is the
case with any investment, there can be no guarantee that the tax position or the proposed
tax position prevailing at the time of an investment in the Scheme will endure indefinitely. In
view of the individual nature of tax consequences, each Unit holder is advised to consult his
/ her own professional tax advisor.
The Mutual Fund may disclose details of the investor’s account and transactions there
under to those intermediaries whose stamp appears on the application form or who have
been designated as such by the investor. In addition, the Mutual Fund may disclose such
details to the bankers, as may be necessary for the purpose of effecting payments to the
investor. The Fund may also disclose such details to regulatory and statutory
authorities/bodies as may be required or necessary.
In case the AMC or its Sponsor or its Shareholders or their affiliates/associates or group
companies make substantial investment, either directly or indirectly in the Scheme,
Redemption of units by these entities may have an adverse impact on the performance of
the Scheme. This may also affect the ability of the other Unit holders to redeem their units.
As the liquidity of the Scheme’s investments may sometimes be restricted by trading
volumes and settlement periods, the time taken by the Fund for Redemption of Units may
be significant in the event of an inordinately large number of Redemption requests or of a
restructuring of the Scheme’s portfolio. In view of this, the AMC / Trustee has the right to limit
Redemptions under certain circumstances - please refer to the paragraph
“Suspension/Restriction on Redemption of Units of the Scheme”.
Pursuant tothe provisions of Prevention of Money Laundering Act, 2002, if after due
diligence, the AMC believes that any transaction is suspicious in nature as regards money
laundering, on failure to provide required documentation, information, etc. by the unit
holder the AMC shall have absolute discretion to report such suspicious transactions to FIU-
IND and / or to freeze the folios of the investor(s), reject any application(s)/redemptions /
allotment of Units.
D. DEFINITIONS
"AMC" / "Asset
Management
Company" /
"Investment
Manager"
Axis Asset Management Company Ltd., incorporated under the provisions
of the Companies Act, 1956 and approved by Securities and Exchange
Board of India to act as the Asset Management Company for the
scheme(s) of Axis Mutual Fund.
Axis Dynamic Bond Fund 11
"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 time
stamped.
“Business Day” A day other than:
(i) Saturday and Sunday;
(ii) A day on which the banks in Mumbai and /or RBI are closed for
business /clearing;
(iii) A day on which the National Stock Exchange of India Ltd. and/or BSE
Ltd., Mumbai are closed;
(iv) A day which is a public and /or bank Holiday at an Investor Service
Centre/Official Point of Acceptance where the application is
received;
(v) A day on which Sale / Redemption / Switching of Units is suspended by
the AMC;
(vi) A day on which normal business cannot be transacted due to storms,
floods, bandhs, strikes or such other events as the AMC may specify
from time to time.
Further, the day(s) on which the money markets and/or debt markets are
closed / not accessible, shall not be treated as Business Day(s).
The AMC reserves the right to declare any day as a Business Day or
otherwise at any or all Investor Service Centres/Official Points of
Acceptance.
"Business Hours" Presently 9.30 a.m. to 5.30 p.m. on any Business Day or such other time as
may be applicable from time to time.
"Custodian" A person who has been granted a certificate of registration to carry on the
business of custodian of securities under the Securities and Exchange
Board of India (Custodian of Securities) Regulations 1996, which for the
time being is Deutsche Bank AG.
"Deed of Trust" The Deed of Trust dated June 27, 2009 made by and between Axis Bank
Ltd. and Axis Mutual Fund Trustee Ltd. thereby establishing an irrevocable
trust, called Axis Mutual Fund.
"Depository" Depository as defined in the Depositories Act, 1996 (22 of 1996).
"Derivative" Derivative includes (i) a security derived from a debt instrument, share,
loan whether secured or unsecured, risk instrument or contract for
differences or any other form of security; (ii) a contract which derives its
value from the prices, or index of prices, or underlying securities.
"Dividend" Income distributed by the Mutual Fund on the Units.
“Dividend Sweep
option” / “DSO”
Facility given to the Unit holders to automatically invest the dividend by
eligible source scheme into eligible target scheme of the Mutual Fund.
"Exit Load" Load on Redemption / Switch out of Units.
“Foreign Portfolio
Investor” / “FPI”
A person who satisfies the eligibility criteria prescribed under regulation 4 of
SEBI (Foreign Portfolio Investors) Regulations, 2014 and has been registered
under Chapter II of these regulations, which shall be deemed to be an
intermediary in terms of the provisions of the Act.
"Floating Rate
Debt Instruments"
Floating rate debt instruments are debt securities issued by Central and /
or State Government, corporates or PSUs with interest rates that are reset
periodically. The periodicity of the interest reset could be daily, monthly,
quarterly, half-yearly, annually or any other periodicity that may be
mutually agreed with the issuer and the Fund. The interest on the
instruments could also be in the nature of fixed basis points over the
benchmark gilt yields.
“Foreign
Securities”
ADRs / GDRs/ equity / debt securities of overseas companies listed on the
recognized stock exchanges overseas/ or such other related securities as
may be specified by SEBI and/or RBI from time to time.
"Gilts" / Securities created and issued by the Central Government and/or a State
Axis Dynamic Bond Fund 12
"Government
Securities"
Government (including Treasury Bills) or Government Securities as defined
in the Public Debt Act, 1944, as amended or re-enacted from time to time.
“GOI” Government of India
“Holiday” Holiday means the day(s) on which the banks (including the Reserve Bank
of India) are closed for business or clearing in Mumbai or their functioning is
affected due to a strike / bandh call made at any part of the country or
due to any other reason.
"Investment
Management
Agreement"
The agreement dated June 27, 2009 entered into between Axis Mutual
Fund Trustee Ltd. and Axis Asset Management Company Ltd., as amended
from time to time.
Infrastructure
Investment Trust”
/ “InvIT
InvIT shall have the meaning assigned in clause (za) of sub-regulation (1) of
regulation 2 of the Securities and Exchange Board of India (Infrastructure
Investment Trusts) Regulations, 2014.
"Investor Service
Centres" / "ISCs"
Offices of Axis Asset Management Company Ltd. or such other centres /
offices as may be designated by the AMC from time to time.
"Load" In the case of Redemption / Switch out of a Unit, the sum of money
deducted from the Applicable NAV on the Redemption / Switch out (Exit
Load) and in the case of Sale / Switch in of a Unit, a sum of money to be
paid by the prospective investor on the Sale / Switch in of a Unit (Entry
Load) in addition to the Applicable NAV.
Presently, entry load cannot be charged by mutual fund schemes.
"Money Market
Instruments"
Includes commercial papers, commercial bills, treasury bills, Government
securities having an unexpired maturity upto one year, call or notice
money, certificate of deposit, usance bills and any other like instruments as
specified by the Reserve Bank of India from time to time.
"Mutual Fund" /
"the Fund"
Axis Mutual Fund, a trust set up under the provisions of the Indian Trusts Act,
1882.
"Net Asset Value"
/ "NAV"
Net Asset Value per Unit of the Scheme, calculated in the manner
described in this Scheme Information Document or as may be prescribed
by the SEBI (MF) Regulations from time to time.
"NRI" A Non-Resident Indian or a Person of Indian Origin residing outside India.
"Official Points of
Acceptance"
Places as specified by AMC from time to time where application for
Subscription / Redemption / Switch will be accepted on ongoing basis.
“Overseas Citizen
of India” / “OCI”
Means a person registered as an Overseas Citizen of India Cardholder by
the Central Government under section 7A of The Citizenship Act, 1955.
"Person of Indian
Origin"
A citizen of any country other than Bangladesh or Pakistan, if (a) he at any
time held an Indian passport; or (b) he or either of his parents or any of his
grandparents was a citizen of India by virtue of Constitution of India or the
Citizenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian
citizen or person referred to in sub-clause (a) or (b).
"Rating" Rating means an opinion regarding securities, expressed in the form of
standard symbols or in any other standardized manner, assigned by a
credit rating agency and used by the issuer of such securities, to comply
with any requirement of the SEBI (Credit Rating Agencies) Regulations,
1999.
"RBI" Reserve Bank of India, established under the Reserve Bank of India Act,
1934, (2 of 1934)
Real Estate
Investment Trust”
/ “REIT
REIT shall have the meaning assigned in clause (zm) of sub-regulation 1 of
regulation 2 of the Securities and Exchange Board of India (Real Estate
Investment Trusts) Regulations, 2014.
"Registrar and
Transfer Agent" /
“Registrar”
KFin Technologies Pvt. Ltd., Hyderabad, currently acting as registrar to the
Scheme, or any other Registrar appointed by the AMC from time to time.
"Redemption /
Repurchase"
Redemption of Units of the Scheme as permitted.
Axis Dynamic Bond Fund 13
“Regulatory
Agency”
GOI, SEBI, RBI or any other authority or agency entitled to issue or give any
directions, instructions or guidelines to the Mutual Fund
“Repo” Sale/Purchase of Securities with simultaneous agreement to repurchase /
resell them at a later date.
"Statement of
Additional
Information" /
"SAI"
The document issued by Axis Mutual Fund containing details of Axis Mutual
Fund, its constitution, and certain tax, legal and general information. SAI is
legally a part of the Scheme Information Document.
"Sale /
Subscription"
Sale or allotment of Units to the Unit holder upon subscription by the
Investor / applicant under the Scheme.
"Scheme" Axis Dynamic Bond Fund
“Scheme
Information
Document”
This document issued by Axis Mutual Fund, offering for Subscription of Units
of Axis Dynamic Bond Fund (including Options there under)
"SEBI" Securities and Exchange Board of India, established under the Securities
and Exchange Board of India Act, 1992.
"SEBI (MF)
Regulations" /
"Regulations"
Securities and Exchange Board of India (Mutual Funds) Regulations, 1996,
as amended from time to time.
"Short Selling" Short selling means selling a stock which the seller does not own at the
time of trade.
"Sponsor" Axis Bank Ltd.
"Switch" Redemption of a unit in any scheme (including the options therein) of the
Mutual Fund against purchase of a unit in another scheme (including the
options therein) of the Mutual Fund, subject to completion of Lock-in
Period, if any.
"Stock Lending" Lending of securities to another person or entity for a fixed period of time,
at a negotiated compensation in order to enhance returns of the portfolio.
“Sleep in Peace”/
“SIP”
Sleep in Peace/SIP is a systematic investment plan enabling investors to
save and invest in the Scheme on a periodic basis submitting post dated
cheques / payment instructions.
“Systematic
Transfer Plan” /
“STP”
Facility given to the Unit holders to transfer sums on periodic basis from one
scheme to another schemes launched by the Mutual Fund from time to
time by giving a single instruction.
“Systematic
Withdrawal Plan”
/ “SWP”
Facility given to the Unit holders to withdraw a specified sum of money
monthly/quarterly/ half yearly/ annually from his investment in the Scheme.
“Tri Party Repos” Tri-party repo means a repo contract where a third entity (apart from the
borrower and lender), called a Tri-Party Agent, acts as an intermediary
between the two parties to the repo to facilitate services like collateral
selection, payment and settlement, custody and management during the
life of the transaction.
“Trustee” /
“Trustee
Company”
Axis Mutual Fund Trustee Ltd., incorporated under the provisions of the
Companies Act, 1956 and approved by SEBI to act as the Trustee to the
Schemes of the Mutual Fund.
"Unit" The interest of the Unit holder which consists of each Unit representing one
undivided share in the assets of the Scheme.
"Unit holder" /
"Investor"
A person holding Units in the Scheme.
INTERPRETATION
For all purposes of this Scheme Information Document, except as otherwise expressly provided
or unless the context otherwise requires:
all references to the masculine shall include the feminine and all references, to the singular
shall include the plural and vice-versa.
Axis Dynamic Bond Fund 14
all references to "dollars" or "$" refer to United States Dollars and "Rs" refer to Indian Rupees.
A "crore" means "ten million" and a "lakh" means a "hundred thousand".
all references to timings relate to Indian Standard Time (IST).
References to a day are to a calendar day including a non Business Day.
Axis Dynamic Bond Fund 15
E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY
It is confirmed that:
(i) The Scheme Information Document forwarded to SEBI is in accordance with the SEBI
(Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time
to time.
(ii) All legal requirements connected with the launching of the Scheme as also the guidelines,
instructions, etc., issued by the Government and any other competent authority in this
behalf, have been duly complied with.
(iii) The disclosures made in the Scheme Information Document are true, fair and adequate to
enable the investors to make a well informed decision regarding investment in the Scheme.
(iv) The intermediaries named in the Scheme Information Document and Statement of
Additional Information are registered with SEBI and their registration is valid, as on date.
Place: Mumbai Signed: Sd/-
Date: November 27, 2020 Name: Darshan Kapadia
Designation: Compliance Officer
Axis Dynamic Bond Fund 16
II. INFORMATION ABOUT THE SCHEME
A. TYPE OF THE SCHEME
An open ended dynamic debt scheme investing across duration
B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME?
The scheme will endeavor to generate optimal returns while maintaining liquidity through
active management of a portfolio of debt and money market instruments.
C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS?
Under normal circumstances the asset allocation will be:
Instruments Indicative Allocation
(% of net assets)
Risk Profile
Minimum Maximum Low/ Medium/
High
Debt instruments* including GSecs and
corporate debt
0% 100% Low to Medium
Money market instruments 0% 100% Low
Units issued by REITs & InvITs 0 10 Medium to High
*includes securitized debt up to 30% of the net assets of the Scheme.
The cumulative gross exposure through debt, units issued by REITs & InvITs and derivative
positions should not exceed 100% of the net assets of the Scheme in accordance with SEBI
Cir/IMD/DF/11/2010 dated August 18, 2010.
Investments in derivatives shall be up to 75% of the net assets of the Scheme. Investment in
derivatives shall be for hedging, portfolio balancing and such other purposes as maybe
permitted from time to time.
The Scheme can invest up to 50% of net assets in Foreign Securities.
The total exposure in a particular sector (excluding investments in Bank CDs, CBLO,
Government Securities, T-Bills, short term deposits of scheduled commercial banks and AAA
rated securities issued by Public Financial Institutions and Public Sector Banks) shall not exceed
20% of the net assets of the Scheme. Provided that an additional exposure to financial services
sector (over and above the limit of 20%) not exceeding 10% of the net assets of the Scheme
shall be allowed by way of increase in exposure to Housing Finance Companies (HFCs) only.
Provided further that the additional exposure to such securities issued by HFCs are rated AA
and above and these HFCs are registered with National Housing Bank (NHB) and the total
Investment/exposure in HFCs shall not exceed 20% of the net assets of the Scheme. Further, an
additional exposure of 5% of the net assets of the scheme has been allowed for investments in
securitized debt instruments based on retail housing loan portfolio and/or affordable housing
loan portfolio.
In terms of SEBI circular no. CIR/IMD/DF/05/2014 dated March 24, 2014, since the investments in
short term deposits of scheduled commercial banks is allowed, pending deployment of funds
of a scheme shall also be excluded while calculating sector exposure.
Pending deployment of the funds in securities in terms of investment objective of the Scheme,
the AMC may park the funds of the Scheme in short term deposits of the Scheduled
Commercial Banks, subject to the guidelines issued by SEBI vide its circular dated April 16, 2007,
as may be amended from time to time.
The Scheme may engage in Short Selling of securities in accordance with the framework
relating to Short Selling and securities lending and borrowing specified by SEBI. The Scheme
may also engage in Securities Lending. The Scheme shall not deploy more than 20% of its net
Axis Dynamic Bond Fund 17
assets in securities lending and not more than 5% of the net assets of the Scheme will be
deployed in securities lending to any single counterparty.
The Scheme retains the flexibility to invest across all the securities in the debt and Money
Markets Instruments. The Scheme may also invest in units of debt and liquid mutual fund
schemes. The portfolio may hold cash depending on the market condition. The fund manager
can use Derivative instruments to protect the downside risk.
The portfolio duration will be managed dynamically according to the expected movement in
interest rates. Liquidity conditions and other macro-economic factors affecting interest rates
shall be taken into account for varying the portfolio duration. The Scheme may review the
above pattern of investments based on views on interest rates and asset liability management
needs.
The Fund Manager would decide on the appropriate asset allocation for the Scheme
depending on market conditions. In bullish conditions the exposure to debt instruments with
maturity over one year maybe be increased and in bearish conditions the exposure to debt
instruments with maturity over one year maybe be reduced to a minimum thus providing an
effective hedge against adverse movements. At all times the portfolio will adhere to the overall
investment objectives of the Scheme. Subject to the SEBI Regulations, the asset allocation
pattern indicated above may change from time to time, keeping in view market conditions,
market opportunities, applicable regulations and political and economic factors. It must be
clearly understood that the percentages stated above are only indicative and not absolute.
These proportions can vary substantially depending upon the perception of the fund manager;
the intention being at all times to seek to protect the interests of the Unit holders. Changes in
the investment pattern will be for short term and for defensive considerations. In case of
deviation, the portfolio would be rebalanced within 1 month from the date of deviation. In
case the same is not aligned to the above asset allocation pattern within 1 month, justification
shall be provided to the Investment Review Committee and reasons for the same shall be
recorded in writing. The Investment Review Committee shall then decide on the course of
action.
Axis Dynamic Bond Fund, an open ended dynamic debt scheme investing across duration is a
different scheme offered by Axis Mutual Fund and is not a minor modification of any other
existing scheme/product of Axis Mutual Fund.
Axis Dynamic Bond Fund 18
Differentiation of Axis Dynamic Bond Fund with other existing debt schemes of Axis Mutual Fund –
The investment objective of this scheme is to maximize risk adjusted returns to the investor through an active management of the portfolio, by
elongating the duration of the portfolio in a falling interest rate scenario and reducing the duration at a time when interest rates are moving up.
Differentiation with existing open ended Debt schemes of Axis Mutual Fund are as follows:
Data as on October 31, 2020 (in INR crores)
Name of
the existing
scheme
Asset Allocation Pattern
(Under normal circumstances)
Primary Investment Objective &
Investment Strategy Differentiation AUM
No. of
Folios
Axis Short
Term Fund
Instruments
Indicative
Allocation (% of net
assets)
Risk
Profile
(Low/
Medium/
High) Minimu
m
Maximu
m
Debt and
Money Market
instruments
0 100 Low to
Medium
Units issued by
REITs & InvITs 0 10
Medium
to high
Primary Investment Objective:
The scheme will endeavor to
generate stable returns with a low
risk strategy while maintaining
liquidity through a portfolio
comprising of debt and money
market instruments.
Investment Strategy:
The scheme proposes to invest in a
diversified portfolio of high quality
debt and money market securities to
generate stable risk adjusted returns
with a low risk strategy.
The Schemes portfolio construction
will seek to play out the shape of the
yield curve of different issuer classes.
The fund manager will seek to look
for investment opportunities at
different maturities of the same yield
curve (e.g. the government
securities yield curve) as well as look
at the differentiated levels of risk
premium offered by the market to
different class of issuers (e.g. 2 year
yields offered by a government
An open ended
short term debt
scheme
investing in
instruments such
that the
Macaulay
duration of the
portfolio is
between 1 year
to 3 years
12,286.
10
56,988
Axis Dynamic Bond Fund 19
security, an NBFC and a
manufacturing corporate).
Axis
Treasury
Advantag
e Fund
Instruments
Indicative Allocation
(% of net assets)
Risk
Profile
Minimum Maximu
m
Low/Me
dium/Hi
gh
Debt & Money
Market
Instruments
0 100 Low to
Mediu
m
Primary Investment Objective:
The investment objective is to
provide optimal returns and liquidity
to the investors by investing primarily
in a mix of money market and short
term debt instruments which results in
a portfolio having marginally higher
maturity as compared to a liquid
fund at the same time maintaining a
balance between safety and
liquidity.
Investment Strategy
The risk-return profile of this fund
positions it in between a liquid fund
and short duration income fund. The
portfolio strategy seeks to increase
yield by having a marginally higher
maturity and moderately higher
credit risk as compared to a liquid
fund at the same time maintaining a
balance between safety and
liquidity.
The Macaulay duration of the
portfolio of the Scheme will be
maintained between 6 months - 12
months depending on the interest
rate view. The Scheme stands to
expose to market risk which can get
captured partially by “mark to
market component” thereby
inducing a potential daily volatility.
Also, the Scheme will have a mix of
credits with a moderately higher
An open ended
low duration
debt scheme
investing in
instruments such
that the
Macaulay
duration of the
portfolio is
between 6 to 12
months
8,817.1
9
42,347
Axis Dynamic Bond Fund 20
credit risk as compared to a liquid
fund. The Scheme will always aim at
controlling risk by carrying a rigorous
credit evaluation of the instruments
proposed to be invested in. The
credit evaluation will be carried out
on the basis of the parameters
mentioned above.
Axis
Dynamic
Bond Fund
Instruments
Indicative
Allocation (% of
net assets)
Risk
Profile
Minimu
m
Maximu
m
Low/
Medium
/
High
Debt
instruments
including G-
Secs and
corporate debt
0% 100% Low to
Medium
Money market
instruments
0% 100% Low
Units issued by
REITs & InvITs
0 10 Medium
to High
Primary Investment Objective:
The scheme will endeavor to
generate optimal returns while
maintaining liquidity through active
management of a portfolio of debt
and money market instruments.
Investment Strategy
Interest rates have a cyclical
movement whereas yields fall, bond
prices rise, while the reverse is true in
the case when interest rates rise. The
investment objective of this scheme
is to maximize risk adjusted returns to
the investor through an active
management of the portfolio, by
elongating the duration of the
portfolio in a falling interest rate
scenario and reducing the duration
at a time when interest rates are
moving up.
With the discretion to take
aggressive interest rate/duration risk
calls, this could mean investing the
entire net assets in long dated
Government securities and debt
instruments (carrying relatively higher
interest rate risk/duration risk), or on
An open ended
dynamic debt
scheme
investing across
duration
1,183.4
7
12,413
Axis Dynamic Bond Fund 21
defensive considerations, entirely in
money market instruments.
Accordingly, the interest rate
risk/duration risk of the scheme may
change substantially depending
upon the Fund’s call.
Axis Gilt
Fund
Instruments
Indicative
Allocation
(% of net
assets)
Risk Profile
(Low/
Medium/
High)
Government
Securities and
Treasury Bills
80-100 Sovereign
Debt & Money
market instruments 0-20
Low to
Medium
Primary Investment Objective:
The Scheme will aim to generate
credit risk-free returns through
investments in sovereign securities
issued by the Central Government
and/or State Government.
Investment Strategy
The Scheme will aim to generate
credit risk-free returns through
investments in sovereign securities
issued by the Central Government
and/or State Government.
An open ended
debt scheme
investing in
government
securities across
maturity
153.24 5,280
Axis Dynamic Bond Fund 22
The Scheme shall invest in
Government Securities, which
provide reasonable returns generally
construed to be without any Credit
Risk. The Scheme shall invest in
various State and Central
Government securities including
securities which are supported by
the ability to borrow from the
treasury or supported only by the
sovereign guarantee or of the state
government or supported by GOI
/state government in any other way
as may be permitted by SEBI. It may
also invest in repos/ reverse repos in
such securities, as and when
permitted by RBI.
The Scheme will also invest in money
market securities from time to time
upto the prescribed limit. Investment
views/decisions will be based on
analysis of macro-economic factors
to estimate the direction of interest
rates and level of liquidity and will be
taken on the basis of factors like,
prevailing interest rate scenario,
Government borrowing program,
level of liquidity in the banking
system, inflation level, returns offered
relative to alternative investments
opportunities, quality of the
security/instrument, maturity profile
of the instrument, liquidity of the
security and any other factor
considered relevant in the opinion of
Axis Dynamic Bond Fund 23
the fund manager.
The Scheme may also use derivatives
instruments like Interest Rate Swaps,
Forward Rate Agreements or such
other derivative instruments as may
be introduced from time to time for
the purpose of hedging and portfolio
balancing within the limits permitted
by the Regulations from time to time.
Axis
Strategic
Bond Fund
Instruments Normal Allocation
(% of net assets)
Risk
Profile
Minimu
m
Maximu
m
Debt and Money
Market instruments
0 100 Low to
Mediu
m
Units issued by
REITs & InvITs
0 10 Mediu
m to
High
Primary Investment Objective:
The Scheme will endeavor to
generate optimal returns in the
medium term while maintaining
liquidity of the portfolio by investing
in debt and money market
instruments.
Investment Strategy:
The Scheme proposes to invest in a
diversified portfolio of debt and
money market securities to generate
optimal risk adjusted returns in the
medium term.
The fund manager will try to allocate
assets of the scheme between
various fixed income securities taking
into consideration the prevailing
interest rate scenario, the liquidity of
the different instruments and
maintain a diversified portfolio with
the objective of achieving optimal
risk adjusted returns. While investing
the fund manager will keep in mind
the yield structure of different asset
classes (e.g. the sovereign yield
An open ended
medium term
debt scheme
investing in
instruments such
that the
Macaulay
duration of the
portfolio is
between 3 years
to 4 years
942.33 9,259
Axis Dynamic Bond Fund 24
curve and the corporate bond yield
curve) as well as kinks within a
particular yield curve (e.g. the
different points of the sovereign yield
curve).
Axis Credit
Risk Fund
Instruments
Indicative
Allocation
(% of net assets)
Risk
Profile
Minimu
m Maximum
High/
Mediu
m/Low
Corporate Debt
rated AA and
below
65% 100% Low to
Mediu
m
Other Debt &
Money Market
instruments
0% 35% Low to
Mediu
m
Units issued by
REITs & InvITs
0% 10% Mediu
m to
High
Primary Investment Objective:
To generate stable returns by
investing in debt & money market
instruments across the yield curve &
credit spectrum.
Investment Strategy:
The Scheme to generate stable
returns by investing in debt & money
market instruments across the yield
curve & credit spectrum. However,
there is no assurance or guarantee
that the investment objective of the
Scheme will be achieved. The
Scheme does not assure or
guarantee any returns. The fund
manager will endeavour, through a
process of robust credit risk
assessment & research, to identify
optimum credit opportunities in the
market and invest in such instruments
offering higher yields at acceptable
levels of risk.
The fund manager will try to allocate
assets of the scheme between
various fixed income instruments
taking into consideration the
An open ended
debt scheme
predominantly
investing in AA
and below
rated corporate
bonds
(excluding AA+
rated corporate
bonds)
556.71 8,066
Axis Dynamic Bond Fund 25
prevailing interest rate scenario, the
liquidity of the different instruments
and maintain a diversified portfolio
with the objective of achieving
stable risk adjusted returns. While
investing the fund manager will keep
in mind the yield structure of different
asset classes (e.g. the sovereign yield
curve and the corporate bond yield
curve) as well as kinks within a
particular yield curve (e.g. the
different points of the sovereign yield
curve).
After doing a thorough research on
the general macroeconomic
condition, political environment,
systemic liquidity, inflationary
expectations, corporate
performance and other economic
considerations the portfolio duration
and credit exposures will be
decided.
Axis
Banking &
PSU Debt
Fund
Instruments
Indicative Allocation
(% of net assets) Risk Profile
Minimum Maximum (Low/Medi
um /High)
Debt &
Money
Market
Instruments
issued by
Banks,
Public
Financial
Institutions
(PFIs) and
80 100 Low to
Medium
Primary Investment Objective:
To generate stable returns by
investing predominantly in debt &
money market instruments issued by
Banks, Public Sector Units (PSUs) &
Public Financial Institutions (PFIs). The
Scheme shall endeavor to generate
optimum returns with low credit risk.
Investment Strategy:
The Scheme aims to generate stable
returns by investing predominantly in
debt & money market instruments
issued by Banks, Public Financial
Institutions (PFIs) and Public Sector
An open ended
debt scheme
predominantly
investing in debt
instruments of
banks, Public
Sector
Undertakings &
Public
Financial
Institutions.
18,601.
66
57,600
Axis Dynamic Bond Fund 26
Public
Sector
Undertakin
gs (PSUs)
Debt
(including
governmen
t securities)
and Money
Market
Instruments
issued by
entities
other than
Banks, PFIs
and PSUs
0 20 Low
Undertakings (PSUs). The Scheme
shall endeavor to generate optimum
returns with low credit risk.
Investment in debt & money market
instruments issued by Banks, PFIs,
PSUs, Treasury Bills & Government
Securities is primarily with the
intention of maintaining high credit
quality & liquidity. Atleast 70% of the
net assets of the Scheme shall be
invested in securities rated
AAA/A1+/Sov and equivalent.
Balance may be invested in
securities rated below AAA/A1+/Sov
and equivalent.
The investment team of the AMC will
carry out rigorous in depth credit
evaluation of the Debt & Money
Market Instruments proposed to be
invested in. The credit evaluation will
essentially be a bottom up
approach and include a study of the
operating environment of the issuer,
the past track record as well as the
future prospects of the issuer and the
short term/ long term financial health
of the issuer.
Axis
Corporate
Debt Fund
Instruments Normal Allocation
(% of net assets)
Risk
Profile
Minimu
m
Maximu
m
Corporate Debt
rated AA and
80% 100% Low to
Mediu
Primary Investment Objective:
The Scheme seeks to provide steady
income and capital appreciation by
investing in corporate debt.
Investment Strategy:
The investment objective of the
Scheme is to generate regular
An open ended
debt scheme
predominantly
investing in AA+
and above
rated corporate
bonds
2,399.3
7
8,857
Axis Dynamic Bond Fund 27
above m
Other Debt &
Money Market
Instruments
0% 20% Low
Units issued by
REITs & InvITs
0% 10% Mediu
m to
High
income and capital appreciation by
investing in corporate debt across
maturities and ratings. The Scheme
may also invest in money market
instruments. There is no assurance or
guarantee that the objectives of the
Scheme will be realized.
The Scheme will predominantly invest
in securities issued by corporate
(both private sector and public
sectors) including banks and
financial institutions across maturities
/ yield curve and ratings. It will look
for opportunities from credit spreads
among the range of available
corporate debt instruments by
cautiously managing the excess risk
on its corporate investments.
The portfolio maturity will be
determined after analyzing the
macro-economic environment
including future course of system
liquidity, interest rates and inflation
along with other considerations in
the economy and markets.
Emphasis may be given to choosing
securities, which, in the opinion of
the Fund Manager, are less prone to
default risk, while bearing in mind the
liquidity needs arising out of the
open-ended nature of the Scheme.
The investment team of the AMC will
carry out rigorous in depth credit
Axis Dynamic Bond Fund 28
evaluation of the money market and
debt instruments proposed to be
invested in. The credit evaluation will
essentially be a bottom up
approach and include a study of the
operating environment of the issuer,
the past track record as well as the
future prospects of the issuer and the
short term / long term financial
health of the issuer.
Axis Liquid
Fund
Instruments
Indicative
Allocation (% of net
assets)
Risk
Profile
Minimu
m
Maximu
m
Low/
Medium
/ High
Money market
instruments
(including cash,
repo, CPs, CDs,
Treasury Bills and
Government
securities) with
maturity/residual
maturity up to 91
days
50 100 Low
Debt instruments
(including
floating rate debt
instruments and
securitized debt)
with maturity
/residual
maturity/
weighted
0 50 Low to
medium
Primary Investment Objective:
To provide a high level of liquidity
with reasonable returns
commensurating with low risk
through a portfolio of money market
and debt securities.
Investment Strategy:
The Fund shall be managed
according to the investment
objective - to generate reasonable
returns commensurate with low risk.
As this Scheme is positioned at the
lowest level of risk-return matrix, it is
usually aimed to meet the needs of
the Investors who want to deploy
their funds for a short period of time.
The composition of Indian debt
market (both primary and
secondary) at the front end of the
yield curve is dominated by money
market instruments. Accordingly, the
Scheme will invest predominantly in
money market securities with some
tactical allocation towards other
debt securities to enhance the
An Open ended
Liquid Scheme
26,508.
84
1,50,7
84
Axis Dynamic Bond Fund 29
average maturity
up to 91 days
portfolio return. The portfolio will be
structured to incorporate asset-
liability management based on
seasonal/historic trends of liabilities.
Given the usually observed nature of
the profile of liabilities, the fund shall
seek to maintain high liquidity with
the use of cash/cash equivalent
assets.
As yield curve has been observed to
be flat (overnight to 3 months) during
most of the times, attempt will be
made to space out the assets
uniformly across the maturity
buckets. However, any irregularity in
the shape of the curve
(steep/inverted) will be played out in
the portfolio construction after
analysing the macro-economic
environment including future course
of system liquidity, interest rates and
inflation along with other
considerations in the economy and
markets.
The investment team of the AMC will
carry out rigorous in depth credit
evaluation of the money market and
debt instruments proposed to be
invested in. The credit evaluation will
essentially be a bottom up
approach and include a study of the
operating environment of the issuer,
the past track record as well as the
future prospects of the issuer and the
short term / long term financial
Axis Dynamic Bond Fund 30
health of the issuer.
Axis Ultra
Short Term
Fund
Instruments Indicative
Allocation
(% of net assets)
Risk Profile
Minimu
m
Maxi
mum
High/
Medium/ Low
Debt and
Money
Market
Instruments
*
0% 100% Low to
Medium
Primary Investment Objective:
The investment objective of the
Scheme is to generate regular
income and capital appreciation by
investing in a portfolio of short term
debt and money market instruments
with relatively lower interest rate risk
such that Macaulay duration of the
portfolio is between 3 months and 6
months.
Investment Strategy:
The investment objective of the
Scheme is to generate regular
income and capital appreciation by
investing in a portfolio of short term
debt and money market instruments
with relatively lower interest rate risk.
The Scheme will maintain the
Macaulay duration of the portfolio
between 3 months and 6 months.
The Scheme endeavors to maximize
return while maintaining higher
liquidity. The portfolio maturity will be
determined after analyzing the
macro-economic environment
including future course of system
liquidity, interest rates and inflation
along with other considerations in
the economy and markets.
The Scheme is likely to have higher
maturity than a liquid fund. However,
the Macaulay Duration of the
An open ended
ultra-short term
debt scheme
investing in
instruments such
that the
Macaulay
duration of the
portfolio is
between 3
months and 6
months
4,205.7
6
48,151
Axis Dynamic Bond Fund 31
portfolio for the Scheme will be
maintained between 3 months to 6
months depending on the interest
rate view. As a result, the Scheme
stands to expose to market risk which
can get captured partially by mark
to market component thereby
inducing a potential daily volatility.
Also, the Scheme will have a mix of
credits with a moderately higher
credit risk as compared to a liquid
fund. The Scheme will always aim at
controlling risk by carrying a rigorous
credit evaluation of the instruments
proposed to be invested in. The
credit evaluation will be carried out
on the basis of the parameters
mentioned above.
The investment team of the AMC will
carry out rigorous in depth credit
evaluation of the money market and
debt instruments proposed to be
invested in. The credit evaluation will
essentially be a bottom up
approach and include a study of the
operating environment of the issuer,
the past track record as well as the
future prospects of the issuer and the
short term / long term financial
health of the issuer.
Axis
Overnight
Fund
Instruments Indicative
Allocation
(% of net assets)
Risk Profile
Minimu
m
Maximu
m
High/
Medium/
Low
Investment Objective
The investment objective of the
Scheme is to provide reasonable
returns commensurate with very low
interest rate risk and providing a high
An open ended
debt scheme
investing in
instruments with
a maturity of up
to 1 business
3,889.9
2
6,060
Axis Dynamic Bond Fund 32
Overnight
securities
*@
0% 100% Low
level of liquidity, through investments
made primarily in overnight securities
having maturity/residual maturity of 1
business day.
Investment Strategy:
The investment objective of the
Scheme is to generate returns by
investing in debt and money market
instruments with overnight maturity.
The total assets of the Scheme will be
invested in debt securities and
money market instruments maturing
on or before next Business Day. In
case of securities with put and call
options (daily or otherwise) the
residual maturity (deemed or actual)
shall be on or before the next
Business Day. Investments under the
Scheme would be made
predominantly in Tri Party Repos,
overnight reverse repos and fixed
income securities/instruments with a
maturity of 1 business day.
The Scheme may also invest in units
of Overnight Schemes of other
mutual funds.
day.
Axis Dynamic Bond Fund 33
Axis Money
Market
Fund
Instruments Indicative Allocation
(% of net assets)
Risk Profile
Minimum Maximu
m
High/
Medium/
Low
Money
Market
Instruments
0% 100% Low
Investment Objective
To generate regular income through
investment in a portfolio comprising
of money market instruments.
Investment Strategy:
The net assets of the scheme will be
invested in money market
instruments. The scheme will seek to
optimize the risk return proposition for
the benefit of investors.
The investment process will focus on
macro-economic research, credit
risk and liquidity management. The
scheme will maintain a judicious mix
of short term and medium term
instruments based on the mandates
of the scheme. As part of credit risk
assessment, the scheme will also
apply its credit evaluation process
besides taking guidance from ratings
of rating agencies. In order to
maintain liquidity, the scheme will
maintain a reasonable proportion of
the Scheme's investments in
relatively liquid investments.
The Scheme
invests in
instruments with
a maturity of
upto 1 year.
1,824.7
7
3,144
Axis Dynamic Bond Fund 34
D. WHERE WILL THE SCHEME INVEST?
The corpus of the Scheme will be invested in Debt Instruments, Money Market Instruments and
other permitted securities which will include but not limited to:
Debt Instruments & Money Market Instruments:
Certificate of Deposit (CD)
Certificate of Deposit is a negotiable money market instrument issued by scheduled
commercial banks and select all-India Financial Institutions that have been permitted by the
RBI to raise short term resources. The maturity period of CDs issued by the Banks is between 7
days to one year, whereas, in case of FIs, maturity is one year to 3 years from the date of issue.
Commercial Paper (CP)
Commercial Paper is an unsecured negotiable money market instrument issued in the form of
a promissory note, generally issued by the corporates, primary dealers and all India Financial
Institutions as an alternative source of short term borrowings. CP is traded in secondary market
and can be freely bought and sold before maturity.
Treasury Bill (T-Bills)
Treasury Bills are issued by the Government of India to meet their short term borrowing
requirements. T-Bills are issued for maturities of 14 days, 91 days, 182 days and 364 days.
The Scheme may also invest in Cash Management Bill (CMB) issued by the Government of
India to meet their short term borrowing requirements. CMB are generally issued for maturities
of less than 91 days.
Commercial Usance Bills
Bill (bills of exchange/promissory notes of public sector and private sector corporate entities)
Rediscounting, usance bills and commercial bills.
Repos
Repo (Repurchase Agreement) or Reverse Repo is a transaction in which two parties agree to
sell and purchase the same security with an agreement to purchase or sell the same security at
a mutually decided future date and price. The transaction results in collateralized borrowing or
lending of funds. Presently in India, corporate debt securities, Government Securities, State
Government Securities and T-Bills are eligible for Repo/ Reverse Repo.
"Tri-party repo" means a repo contract where a third entity (apart from the borrower and
lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the repo
to facilitate services like collateral selection, payment and settlement, custody and
management during the life of the transaction.
The Scheme may undertake repo or reverse repo transactions in accordance with the
directions issued by RBI and SEBI from time to time. Such investment shall be made subject to
the guidelines which may be prescribed by the Board of Directors of the Asset Management
Company and Trustee Company.
Securities created and issued by the Central and State Governments as may be permitted by
RBI, securities guaranteed by the Central and State Governments (including but not limited to
coupon bearing bonds, zero coupon bonds and treasury bills). State Government securities
(popularly known as State Development Loans or SDLs) are issued by the respective State
Government in co-ordination with the RBI.
Non Convertible Debentures and Bonds
Non convertible debentures as well as bonds are securities issued by companies / institutions
promoted / owned by the Central or State Governments and statutory bodies which may or
may not carry a Central/State Government guarantee, Public and private sector banks, all
India Financial Institutions and Private Sector Companies. These instruments may have fixed or
Axis Dynamic Bond Fund 35
floating rate coupon. These instruments may be secured or unsecured against the assets of the
Company and generally issued to meet the short term and long term fund requirements. The
Scheme may also invest in the non-convertible part of convertible debt securities.
Real Estate Investment Trust (REITs) & Infrastructure Investment Trust (InvIT)
REIT/ InvITs is a trust which holds real estate or infrastructure assets respectively which is
managed by an investment manager. The unitholders in the trust have proportional interest in
the underlying holdings of the trust.
Securitized Assets
Securitization is a structured finance process which involves pooling and repackaging of
cashflow producing financial assets into securities that are then sold to investors. They are
termed as Asset Backed Securities (ABS) or Mortgage Backed Securities (MBS). ABS are backed
by other assets such as credit card, automobile or consumer loan receivables, retail installment
loans or participations in pools of leases. Credit support for these securities may be based on
the underlying assets and/or provided through credit enhancements by a third party. MBS is an
asset backed security whose cash flows are backed by the principal and interest payments of
a set of mortgage loans. Such Mortgage could be either residential or commercial properties.
ABS/MBS instrument reflect the undivided interest in the underlying assets and do not represent
the obligation of the issuer of ABS/MBS or the originator of underlying receivables. Securitization
often utilizes the services of SPV.
Pass through Certificate (PTC)
Pay through or other Participation Certificates represents beneficial interest in an underlying
pool of cash flows. These cash flows represent dues against single or multiple loans originated
by the sellers of these loans. These loans are given by banks or financial institutions to
corporates. PTCs may be backed, but not exclusively, by receivables of personal loans, car
loans, two wheeler loans and other assets subject to applicable regulations.
The following are certain additional disclosures w.r.t. investment in securitized debt:
1. How the risk profile of securitized debt fits into the risk appetite of the scheme
Securitized debt is a form of conversion of normally non-tradable loans to transferable
securities. This is done by assigning the loans to a special purpose vehicle (a trust), which in turn
issues Pass-Through-Certificates (PTCs). These PTCs are transferable securities with fixed income
characteristics. The risk of investing in securitized debt is similar to investing in debt securities.
However it differs in two respects.
Typically the liquidity of securitized debt is less than similar debt securities. For certain types of
securitized debt (backed by mortgages, personal loans, credit card debt, etc.), there is an
additional pre-payment risk. Pre-payment risk refers to the possibility that loans are repaid
before they are due, which may reduce returns if the re-investment rates are lower than initially
envisaged.
Because of these additional risks, securitized debt typically offers higher yields than debt
securities of similar credit rating and maturity. If the fund manager judges that the additional
risks are suitably compensated by the higher returns, he may invest in securitized debt up to the
limits specified in the asset allocation table above.
2. Policy relating to originators based on nature of originator, track record, NPAs, losses in
earlier securitized debt, etc.
The originator is the person who has initially given the loan. The originator is also usually
responsible for servicing the loan (i.e. collecting the interest and principal payments). An
analysis of the originator is especially important in case of retail loans as this affects the credit
quality and servicing of the PTC. The key risk is that of the underlying assets and not of the
originator. For example, losses or performance of earlier issuances does not indicate quality of
current series. However such past performance may be used as a guide to evaluate the loan
standards, servicing capability and performance of the originator.
Axis Dynamic Bond Fund 36
Originators may be: Banks, Non Banking Finance Companies, Housing Finance Companies, etc.
The fund manager / credit analyst evaluates originators based on the following parameters
Track record
Willingness to pay, through credit enhancement facilities etc.
Ability to pay
Business risk assessment, wherein following factors are considered:
- Outlook for the economy (domestic and global)
- Outlook for the industry
- Company specific factors
In addition a detailed review and assessment of rating rationale is done including interactions
with the originator as well as the credit rating agency.
The following additional evaluation parameters are used as applicable for the originator /
underlying issuer for pool loan and single loan securitization transactions:
Default track record/ frequent alteration of redemption conditions / covenants
High leverage ratios of the ultimate borrower (for single-sell downs) – both on a standalone
basis as well on a consolidated level/ group level
Higher proportion of reschedulement of underlying assets of the pool or loan, as the case
may be
Higher proportion of overdue assets of the pool or the underlying loan, as the case may be
Poor reputation in market
Insufficient track record of servicing of the pool or the loan, as the case may be.
3. Risk mitigation strategies for investments with each kind of originator
An analysis of the originator is especially important in case of retail loans as the size and reach
affects the credit quality and servicing of the PTC. In addition, the quality of the collection
process, infrastructure and follow-up mechanism; quality of MIS; and credit enhancement
mechanism are key risk mitigants for the better originators / servicers.
In case of securitization involving single loans or a small pool of loans, the credit risk of the
underlying borrower is analyzed. In case of diversified pools of loans, the overall characteristic
of the loans is analyzed to determine the credit risk. The credit analyst looks at ageing (i.e. how
long the loan has been with the originator before securitization) as one way of evaluating the
performance potential of the PTC. Securitization transactions may include some risk mitigants
(to reduce credit risk). These may include interest subvention (difference in interest rates on the
underlying loans and the PTC serving as margin against defaults), overcollateralization (issue of
PTCs of lesser value than the underlying loans, thus even if some loans default, the PTC
continues to remain protected), presence of an equity / subordinate tranche (issue of PTCs of
differing seniority when it comes to repayment - the senior tranches get paid before the junior
tranche) and / or guarantees.
4. The level of diversification with respect to the underlying assets, and risk mitigation
measures for less diversified investments
In case of securitization involving single loans or a small pool of loans, the credit risk of the
borrower is analyzed. In case of diversified pools of loans, the overall characteristic of the loans
is analyzed to determine the credit risk.
The credit analyst looks at ageing (i.e. how long the loan has been with the originator before
securitization) as one way of judging the performance potential of the PTC. Additional risk
mitigants may include interest subvention, over collateralization, presence of an equity /
subordinate tranche and / or guarantees. The credit analyst also uses analyses by credit rating
agencies on the risk profile of the securitized debt.
Axis Dynamic Bond Fund 37
Currently, the following parameters are used while evaluating investment decision relating to a
pool securitization transaction. The Investment Review Committee may revise the parameters
from time to time.
Characteristics/Typ
e of Pool
Mortga
ge Loan
Commercial
Vehicle and
Construction
Equipment
CAR 2
wheel
ers
Micro
Financ
e Pools
*
Perso
nal
Loans
*
Single
Sell
Down
s
Other
s
Approximate
Average maturity
(in Months)
Up to 10
years
Up to 3 years Up
to 3
year
s
Up to
3
years
NA NA Refer
Note
1
Refer
Note
2
Collateral margin
(including cash,
guarantees, excess
interest spread,
subordinate
tranche)
>10% >10% >10% >10% NA NA “ “
Average Loan to
Value Ratio
<90% <80% <80% <80% NA NA “ “
Average seasoning
of the Pool
>3
months
>3 months >3
mon
ths
>3
mont
hs
NA NA “ “
Maximum single
exposure range
<1% <1% <1% <1% NA NA “ “
Average single
exposure range %
<1% <1% <1% <1% NA NA “ “
* Currently, the Scheme will not invest in these types of securitized debt
Note 1: In case of securitization involving single loans or a small pool of loans, the credit risk of
the borrower is analyzed. The investment limits applicable to the underlying borrower are
applied to the single loan sell-down.
Note 2: Other investments will be decided on a case-to-case basis
The credit analyst may consider the following risk mitigating measures in his analysis of the
securitized debt:
Size of the loan
Average original maturity of the pool
Loan to Value Ratio
Average seasoning of the pool
Default rate distribution
Geographical Distribution
Credit enhancement facility
Liquid facility
Structure of the pool
5. Minimum retention period of the debt by originator prior to securitization
Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the "true
sale" criteria including credit enhancement and liquidity enhancements. In addition, RBI has
proposed minimum holding period of between nine and twelve months for assets before they
can be securitized. The minimum holding period depends on the tenor of the securitization
transaction. The Scheme will invest in securitized debts that are compliant with the laws and
regulations.
6. Minimum retention percentage by originator of debts to be securitized
Axis Dynamic Bond Fund 38
Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the "true
sale" criteria including credit enhancement and liquidity enhancements, including maximum
exposure by the originator in the PTCs. In addition, RBI has proposed minimum retention
requirement of between five and ten percent of the book value of the loans by the originator.
The minimum retention requirement depends on the tenor and structure of the securitization
transaction. The Fund will invest in securitized debts that are compliant with the laws and
regulations.
7. The mechanism to tackle conflict of interest when the mutual fund invests in securitized
debt of an originator and the originator in turn makes investments in that particular scheme
of the fund
The key risk is securitized debt relates to the underlying borrowers and not the originator. In a
securitization transaction, the originator is the seller of the debt(s) and the fund is the buyer.
However, the originator is also usually responsible for servicing the loan (i.e. collecting the
interest and principal payments). As the originators may also invest in the scheme, the fund
manager shall ensure that the investment decision is based on parameters as set by the
Investment Review Committee (IRC) of the Asset Management Company and IRC shall review
the same at regular interval.
8. The resources and mechanism of individual risk assessment with the AMC for monitoring
investment in securitized debt
The fund management team including the credit analyst has the experience to analyze
securitized debt. In addition, credit research agencies provide analysis of individual instruments
and pools. On an on-going basis (typically monthly) the servicer provides reports regarding the
performance of the pool. These reports would form the base for ongoing evaluation where
applicable. In addition, rating reports indicating rating changes would be monitored for
changes in rating agency opinion of the credit risk.
Debt derivative instruments:
Interest Rate Swap
An Interest Rate Swap (IRS) is a financial contract between two parties exchanging or
swapping a stream of interest payments for a “notional principal” amount on multiple
occasions during a specified period. Such contracts generally involve exchange of a “fixed to
floating” or “floating to fixed rate” of interest. Accordingly, on each payment date that occurs
during the swap period, cash payments based on fixed/ floating and floating rates are made
by the parties to one another.
Forward Rate Agreement
A Forward Rate Agreement (FRA) is a financial contract between two parties to exchange
interest payments for a ‘notional principal’ amount on settlement date, for a specified period
from start date to maturity date. Accordingly, on the settlement date, cash payments based
on contract (fixed) and the settlement rate, are made by the parties to one another. The
settlement rate is the agreed bench-mark/ reference rate prevailing on the settlement date.
Interest Rate Futures:
A futures contract is a standardized, legally binding agreement to buy or sell a commodity or a
financial instrument in a designated future month at a market determined price (the futures
price) by the buyer and seller. The contracts are traded on a futures exchange. An Interest
Rate Future is a futures contract with an interest bearing instrument as the underlying asset.
Characteristics of Interest Rate Futures
1. Obligation to buy or sell a bond at a future date
2. Standardized contract.
3. Exchange traded
4. Physical settlement
5. Daily mark to market
Axis Dynamic Bond Fund 39
Foreign Securities
The Scheme may also invest in suitable investment avenues in foreign securities in overseas
financial markets for the purpose of diversification, commensurate with the Scheme objectives
and subject to necessary stipulations by SEBI / RBI. Towards this end, the Mutual Fund may also
appoint overseas investment advisors and other service providers, to the extent permissible
under the Regulations.
The Scheme may invest in the following foreign securities in line with the guidelines stipulated
by RBI/SEBI from time to time:
Initial and follow on public offerings for listing at recognized stock exchanges overseas
Foreign debt securities in the countries with fully convertible currencies, short term as well as
long term debt instruments with rating not below investment grade by
accredited/registered credit rating agencies
Money Market Instruments rated not below investment grade
Repos in the form of investment, where the counterparty is rated not below investment
grade; repos shall not however, involve any borrowing of funds by the mutual funds
Government Securities where the countries are rated not below investment grade
Derivatives traded on recognized stock exchanges overseas only for hedging and portfolio
balancing with underlying as securities
Short term deposits with banks overseas where the issuer is rated not below investment
grade
Units/securities issued by overseas mutual funds or unit trusts registered with overseas
regulators and investing in (a) aforesaid securities, or (b) unlisted overseas securities (not
exceeding 10% of their net assets).
Note: The Scheme will not invest in foreign securitized debt.
As per SEBI circular no. SEBI/IMD/CIR No.7/104753/07 dated September 26, 2007 read with SEBI
circular SEBI/HO/IMD/DF3/CIR/P/2020/225 dated November 5, 2020, mutual funds can make
overseas investments subject to a maximum of US $600 million or such limits as may be
prescribed by SEBI from time to time. Subject to the approval of RBI / SEBI, where required and
conditions as may be prescribed by them, the Mutual Fund may open one or more foreign
currency accounts abroad either directly, or through the custodian/sub-custodian, to facilitate
investments and to enter into/deal in forward currency contracts, currency futures, interest rate
futures / swaps, currency options for the purpose of hedging the risks of assets of a portfolio or
for such purposes as maybe permitted from time to time. However, the use of such instruments
shall be as permitted from time to time. All the requirement of the SEBI circular dated
September 26, 2007 and any amendments thereto would be adhered to by the AMC for
investment in foreign securities.
Investment in overseas securities shall be made in accordance with the requirements
stipulated by SEBI and RBI from time to time.
Limits for investment in overseas securities: An investment headroom of 20% of the average
AUM in overseas securities / overseas ETFs of the previous three calendar months would be
available to the Mutual Fund for that month to invest in overseas securities / overseas ETFs
subject to maximum limits specified in SEBI circulars.
Short Term Deposits
Pending deployment of funds as per the investment objective of the Scheme, the Funds may
be parked in short term deposits of the Scheduled Commercial Banks, subject to guidelines
and limits specified by SEBI.
Units of Mutual Fund schemes
The Scheme may invest in other schemes managed by the AMC or in the schemes of any
other mutual funds in conformity with the investment objective of the Scheme and in terms of
the prevailing SEBI (MF) Regulations.
Axis Dynamic Bond Fund 40
The securities / instruments mentioned above and such other securities the Scheme is
permitted to invest in could be listed, unlisted, privately placed, secured, unsecured, rated or
unrated and of any maturity.
The securities may be acquired through initial public offering (IPOs), secondary market, private
placement, rights offers, negotiated deals, etc. Further investments in debentures, bonds and
other fixed income securities will be in instruments which have been assigned investment grade
rating by the Credit Rating Agency.
Investment in unrated debt instruments shall be subject to complying with the norms as
specified by Board from time to time.
For applicable regulatory investment limits please refer paragraph "Investment Restrictions”.
Details of various derivative strategies/examples of use of derivatives have been provided
under the paragraph “Derivatives Strategy”.
The Fund Manager reserves the right to invest in such securities as may be permitted from time
to time and which are in line with the investment objectives of the Scheme.
E. WHAT ARE THE INVESTMENT STRATEGIES?
Interest rates have a cyclical movement whereas yields fall, bond prices rise, while the reverse
is true in the case when interest rates rise. The investment objective of this scheme is to
maximize risk adjusted returns to the investor through an active management of the portfolio,
by elongating the duration of the portfolio in a falling interest rate scenario and reducing the
duration at a time when interest rates are moving up. The fund will be actively churned to
capture price appreciation and endeavor to minimize the negative movements in prices.
While long term funds try to optimize returns in the long term, this fund will look to micro
manage the portfolio and endeavor to optimize returns. Active calls on the shape of the yield
curve (sovereign gilt curve or the corporate bond curve) and the spread between
corresponding points of different yield curves (say 5y gilt versus 5y AAA corporate bond) will be
taken to endeavor to maximize the returns to the investor.
With the discretion to take aggressive interest rate/duration risk calls, this could mean investing
the entire net assets in long dated Government securities and debt instruments (carrying
relatively higher interest rate risk/duration risk), or on defensive considerations, entirely in money
market instruments. Accordingly, the interest rate risk/duration risk of the scheme may change
substantially depending upon the Fund’s call.
The Indian debt market is in a phase of rapid transformation with liquidity and investment
opportunities arising in various debt segments along with the introduction of new instruments.
The fund manager will try to allocate assets of the scheme between various fixed income
securities with the objective of achieving optimal risk adjusted returns. After doing a thorough
research on the general macroeconomic condition, political environment, systemic liquidity,
inflationary expectations, corporate performance and other economic considerations the
portfolio duration and credit exposures will be decided.
Derivatives Strategy:
The Scheme may use Derivative instruments like interest rate swaps like Overnight Indexed
Swaps (“OIS”), forward rate agreements, interest rate futures (as and when permitted) or such
other Derivative instruments as may be permitted under the applicable regulations. Derivatives
will be used for the purpose of hedging, and portfolio balancing or such other purpose as may
be permitted under the regulations and guidelines from time to time.
The Fund will be allowed to take exposure in interest rate swaps only on a non-leveraged basis.
A swap will be undertaken only if there is an underlying asset in the portfolio. In terms of circular
Axis Dynamic Bond Fund 41
no. MFD.BC.191/07.01.279/1999-2000 and MPD.BC.187/07.01.279/1999- 2000 dated November
1, 1999 and July 7, 1999 respectively issued by RBI permitting participation by Mutual Funds in
interest rate swaps and forward rate agreements, the Scheme will use Derivative instruments
for the purpose of hedging and portfolio balancing. The Scheme may also use derivatives for
such purposes as maybe permitted from time to time. Further, the guidelines issued by RBI from
time to time for forward rate agreements and interest rate swaps and other derivative products
would be adhered to by the Mutual Fund.
IRS and FRA do also have inherent credit and settlement risks. However, these risks are
substantially reduced as they are limited to the interest streams and not the notional principal
amounts.
Investments in Derivatives will be in accordance with the extant SEBI Regulations / guidelines.
Presently Derivatives shall be used for hedging and / or portfolio balancing purposes, as
permitted under the Regulations. The circumstances under which such transactions would be
entered into would be when, for example using the IRS route it is possible to generate better
returns / meet the objective of the Scheme at a lower cost. e.g. if buying a 2 Yr MIBOR based
instrument and receiving the 2 Yr swap rate yields better return than the 2 Yr AAA corporate,
the Scheme would endeavor to do that. Alternatively, the Scheme would also look to hedge
existing fixed rate positions if the view on interest rates is that it would likely rise in the future.
The following information provides a basic idea as to the nature of the Derivative instruments
proposed to be used by the Scheme and the benefits and risks attached therewith. Please
note that the examples have been given for illustration purposes only.
Using Overnight Indexed Swaps
In a rising interest rate scenario, the Scheme may enhance returns for the Investor by hedging
the risk on its fixed interest paying assets by entering into an OIS contract where the Scheme
agrees to pay a fixed interest rate on a specified notional amount, for a pre determined tenor
and receives floating interest rate payments on the same notional amount. The fixed returns
from the Scheme assets and the fixed interest payments to be made by the Scheme on
account of the OIS transaction offset each other and the Scheme benefits on the floating
interest payments that it receives. The Scheme may enter into an opposite position in case of a
falling interest rate scenario, i.e. to hedge the floating rate assets in its portfolio the Scheme
enters into an OIS transaction wherein it receives a fixed interest rate on a specified notional
amount for a specified time period and pays a floating interest rate on the same notional
amount. The floating interest payments that the Scheme receives on its floating rate securities
and the floating interest payments that the Scheme has to pay on account of the OIS
transaction offset each other and the Scheme benefits on the fixed interest payments that it
receives in such a scenario.
Swap
Assume that the Scheme has a Rs. 20 crore floating rate investment linked to MIBOR (Mumbai
Inter Bank Offered Rate). Hence, the Scheme is currently running an interest rate risk and stands
to lose if the interest rate moves down. To hedge this interest rate risk, the Scheme can enter
into a 6 month MIBOR swap. Through this swap, the Scheme will receive a fixed predetermined
rate (assume 12%) and pays the “benchmark rate” (MIBOR), which is fixed by the NSE or any
other agency such as Reuters. This swap would effectively lock-in the rate of 12% for the next 6
months, eliminating the daily interest rate risk. This transaction is usually routed through an
intermediary who runs a book and matches deals between various counterparties.
The steps will be as follows:
Assuming the swap is for Rs. 20 Crores for June 1, 2009 to December 1, 2009. The Scheme is a
fixed rate receiver at 12% and the counterparty is a floating rate receiver at the overnight rate
on a compounded basis (say NSE MIBOR).
Axis Dynamic Bond Fund 42
On June 1, 2009 the Scheme and the counterparty will exchange only a contract of having
entered this swap. This documentation would be as per International Swap Dealers Association
(“ISDA”) norms.
On a daily basis, the benchmark rate fixed by NSE will be tracked by them.
On December 1, 2009 they will calculate the following:
The Scheme is entitled to receive interest on Rs. 20 Crores at 12% for 184 days i.e. Rs. 1.21
Crores, (this amount is known at the time the swap was concluded) and will pay the
compounded benchmark rate.
The counterparty is entitled to receive daily compounded call rate for 184 days & pay 12%
fixed.
On December 1, 2009, if the total interest on the daily overnight compounded benchmark
rate is higher than Rs. 1.21 Crores, the Scheme will pay the difference to the counterparty. If
the daily compounded benchmark rate is lower, then the counterparty will pay the
Scheme the difference.
Effectively the Scheme earns interest at the rate of 12% p.a. for six months without lending
money for 6 months fixed, while the counterparty pays interest @ 12% p.a. for 6 months on
Rs. 20 Crores, without borrowing for 6 months fixed.
The above example illustrates the use of Derivatives for hedging and optimizing the investment
portfolio. Swaps have their own drawbacks like credit risk, settlement risk. However, these risks
are substantially reduced as the amount involved is interest streams and not principal.
Forward Rate Agreement
Assume that on June 30, 2009, the 30 day Commercial Paper (CP) rate is 4% and the Scheme
has an investment in a CP of face value Rs. 50 Crores, which is going to mature on July 31,
2009. If the interest rates are likely to remain stable or decline after July 31, 2009, and if the fund
manager, who wants to re-deploy the maturity proceeds for 1 more month does not want to
take the risk of interest rates going down, he can then enter into a following Forward Rate
Agreement (FRA) say as on June 30, 2009:
He can receive 1 X 2 FRA on June 30, 2009 at 4.00% (FRA rate for 1 months lending in 1 months
time) on the notional amount of Rs. 50 Crores, with a reference rate of 30 day CP benchmark.
If the CP benchmark on the settlement date i.e. July 30, 2009 falls to 3.75%, then the Scheme
receives the difference 4.00 – 3.75 i.e. 25 basis points on the notional amount Rs. 50 Crores.
Interest Rate Futures
Assume that the Scheme holds an Indian ten year benchmark and the fund manager has a
view that the yields will go up in the near future leading to decrease in value of the investment
and subsequent decrease in Net Asset Value (NAV) of the Scheme. The fund manager
decides to use Interest Rate Futures to mitigate the risk of decline of Net Asset Value (NAV) of
the Scheme.
12th October 2009
The benchmark ten year paper 6.88 2009, is trading at INR 98.00 at a yield of 7.19%.
December 2009 futures contract on the ten year notional 7% coupon bearing Government
paper is trading at a yield of 7.29% at a price of INR 98.50.
The mutual fund decides to hedge the exposure by taking a short position in December
2009 interest rate futures contract.
25th November 2009
As expected by the fund manager the yield of the benchmark ten year paper has
increased to 8% and the price has decreased to 92.70.
The December 2009 futures contract is trading at a price of INR 93.17 indicating a yield of
8.05%
Axis Dynamic Bond Fund 43
The mutual fund unwinds the short position by buying the December 2009 futures contract.
The transaction results in profit from the futures position, against the corresponding loss from
the Government of India security position.
Certain risks are inherent to Derivative strategies viz. lack of opportunities, inability of Derivatives
to correlate perfectly with the underlying and execution risks, whereby the rate seen on the
screen may not be the rate at which the transaction is executed. For details of risk factors
relating to use of Derivatives, the investors are advised to refer to Scheme Specific Risk Factors.
Portfolio Turnover:
The Scheme being an open-ended Scheme, it is expected that there would be a number of
Subscriptions and Redemptions on a daily basis. Further, in the debt market, trading
opportunities may arise due to changes in system liquidity, interest rate policy announced by
RBI, shifts in the yield curve, credit rating changes or any other factors. In the opinion of the
fund manager these opportunities can be played out to enhance the total return of the
portfolio, which will result in increase in portfolio turnover. Fund Manager will seek to maximize
the returns by taking advantage of swift moves in the market and can further increase the
turnover. There may be an increase in transaction cost such as brokerage paid, if trading is
done frequently. However, the cost would be negligible as compared to the total expenses of
the Scheme. Frequent trading may increase the profits which will offset the increase in costs.
The fund manager will endeavor to optimize portfolio turnover to maximize gains and minimize
risks keeping in mind the cost associated with it. However, it is difficult to estimate with
reasonable accuracy, the likely turnover in the portfolio of the Scheme. The Scheme has no
specific target relating to portfolio turnover.
Investment in overseas financial assets (foreign fixed income securities):
RBI vide its letter no. EC.CO.OID.MF/ 19.19.463/2001-2002 dated May 31, 2002 has given
approval to mutual funds to invest in such securities subject to the conditions stated therein.
SEBI through its Circular dated September 26, 2007 read with circular dated November 5, 2020
& such other circulars as issued by SEBI from time to time has permitted Mutual Funds to invest
in Foreign Securities including foreign debt securities within the overall limit of US$ 7 billion,
subject to a maximum of US$ 600 million per Mutual Fund. Further, the Mutual Funds can also
invest in Exchange Traded Funds within an overall limit of US$ I billion, subject to a maximum of
US$ 200 million per Mutual Fund.
It is the Investment Manager’s belief that overseas securities offer new investment and portfolio
diversification opportunities into multi-market and multi-currency products. However, such
investments also entail additional risks. Such investment opportunities may be pursued by the
Investment Manager provided they are considered appropriate in terms of the overall
investment objectives of the Scheme. Since the Scheme would invest only partially in overseas
securities, there may not be readily available and widely accepted benchmarks to measure
the performance of the Scheme. To manage risks associated with foreign currency and interest
rate exposure, the Fund may use Derivatives for efficient portfolio management and hedging
as maybe permitted from time to time and in accordance with conditions as may be
stipulated by SEBI/RBI from time to time.
Offshore investments will be made subject to any/all approvals/ conditions thereof as may be
stipulated by SEBI/ RBI/ other Regulatory Agency. The Fund may, where necessary, appoint
other intermediaries of repute as advisors, sub-custodians, etc. for managing and administering
such investments. The appointment of such intermediaries shall be in accordance with the
applicable requirements of SEBI and within the permissible ceilings of expenses. The fees and
expenses would illustratively include, besides the investment management fees, custody fees
and costs, fees of appointed advisors and sub-managers, transaction costs, and overseas
regulatory costs.
Axis Dynamic Bond Fund 44
Under normal circumstances, the Scheme may invest maximum 50% of its net assets in Foreign
Securities. However, the AMC with a view to protecting the interests of Investors may alter the
exposure in Foreign Securities as deemed fit from time to time.
For applicable regulatory investment limits please refer paragraph "Investment Restrictions.
The Fund Manager reserves the right to invest in such securities as maybe permitted from time
to time and which are in line with the investment objectives of the scheme.
Debt and Money Markets in India
The Indian debt market is today one of the largest in Asia and includes securities issued by the
Government (Central & State Governments), public sector undertakings, other government
bodies, financial institutions, banks and corporates. Government and public sector enterprises
are the predominant borrowers in the markets. The major players in the Indian debt markets
today are banks, financial institutions, mutual funds, insurance companies, primary dealers,
trusts, pension funds and corporates. The Indian debt market is the largest segment of the
Indian financial markets. The debt market comprises broadly two segments, viz. Government
Securities market or G-Sec market and corporate debt market. The latter is further classified as
market for PSU bonds and private sector bonds.
The Government Securities (G-Secs) market, consists of G-Sec outstanding of Rs. 67,44,406.238
cr as on Oct 27, 2020 (State Govt securities - Rs 34,44,380.1300 cr, (as on Jul 20) Source: CCIL), is
the oldest and the largest component (50% share in market cap) of the Indian debt market in
terms of market capitalization, outstanding securities and trading volumes. The G-Secs market
plays a vital role in the Indian economy as it provides the benchmark for determining the level
of interest rates in the country through the yields on the Government Securities which are
referred to as the risk-free rate of return in any economy. Over the years, there have been new
products introduced by the RBI like zero coupon bonds, floating rate bonds, inflation indexed
bonds, etc.
The corporate bond market, in the sense of private corporate sector raising debt through
public issuance in capital market, is only an insignificant part of the Indian Debt Market. A large
part of the issuance in the non-Government debt market is currently on private placement
basis.
The money markets in India essentially consist of the call money market (i.e. market for
overnight and term money between banks and institutions), repo transactions (temporary sale
with an agreement to buy back the securities at a future date at a specified price),
commercial papers (CPs, short term unsecured promissory notes, generally issued by
corporates), certificate of deposits (CDs, issued by banks) and Treasury Bills (issued by RBI). In a
predominantly institutional market, the key money market players are banks, financial
institutions, insurance companies, mutual funds, primary dealers and corporates. In money
market, activity levels of the Government and nongovernment debt vary from time to time.
Instruments that comprise a major portion of money market activity include but not limited to:
• Overnight Call
• Tri Party Repo
• Repo/Reverse Repo Agreement
• Treasury Bills
• Government securities with a residual maturity of < 1 year.
• Commercial Paper
• Certificate of Deposit
Apart from these, there are some other options available for short tenure investments that
include MIBOR linked debentures with periodic exit options and other such instruments. Though
not strictly classified as Money Market Instruments, PSU / DFI / Corporate paper with a residual
maturity of < 1 year, are actively traded and offer a viable investment option.
Axis Dynamic Bond Fund 45
The market has evolved in past 2-3 years in terms of risk premia attached to different class of
issuers. Bank CDs have clearly emerged as popular asset class with increased acceptability in
secondary market. PSU banks trade the tightest on the back of comfort from majority
government holding. Highly rated manufacturing companies also command premium on
account of limited supply. However, there has been increased activity in papers issued by
private/foreign banks/NBFCs/companies in high-growth sector due to higher yields offered by
them. Even though companies across these sectors might have been rated on a same scale,
the difference in the yield on the papers for similar maturities reflects the perception of their
respective credit profiles.
The following table gives approximate yields prevailing on November 13, 2020 on some of the
instruments and further illustrates this point.
Instrument Current Yield range (%) Tri-party Repo 3.05%-3.10% Repo 3.05%-3.10% 3M T-bill 3.15%-3.20% 1Y T-bill 3.40%-3.45% 10Y G-sec 5.85%-5.90% 3m PSU Bank CD 3.20%-3.25% 3m Manufacturing co. CP 3.25%-3.30% 1Y PSU Bank CD 3.75%-3.80% 1Y NBFC CP 4.10%-4.20% 1Y Manufacturing co. CP 3.95%-4.00% 5Y AAA Institutional Bond 5.40%-5.45% 10Y AAA Institutional Bond 6.50%-6.55%
Source: Bloomberg
These yields are indicative and do not indicate yields that may be obtained in future as interest
rates keep changing consequent to changes in macro-economic conditions and RBI policy.
The price and yield on various debt instruments fluctuate from time to time depending upon
the macro economic situation, inflation rate, overall liquidity position, foreign exchange
scenario etc. Also, the price and yield vary according to maturity profile, credit risk etc.
INVESTMENT BY THE AMC IN THE SCHEME
Subject to the Regulations, the AMC may invest either directly or indirectly, in the Scheme
during Ongoing Offer Period. However, the AMC shall not charge any investment
management fee on such investment in the Scheme.
Risk Control
Risk management is going to be an integral part of the investment process. Effective risk
management is critical to fund management for achieving financial soundness. The investment
team of the AMC will carry out rigorous in depth credit evaluation of the money market and
debt instruments (other than G-Secs) proposed to be invested in. The credit evaluation will
essentially be a bottom up approach and include a study of the operating environment of the
issuer, the past track record as well as the future prospects of the issuer and the short term /
long term financial health of the issuer. The AMC would incorporate adequate safeguards for
controlling risks in the portfolio construction process, which would be periodically evaluated
The scheme will also use derivatives and other hedging instruments, as may be permitted by
RBI, from time to time, in order to protect the value of the portfolio. Investments by the Scheme
shall be made as per the investment objectives of the Scheme and provisions of SEBI
regulations. AMC has implemented the Bloomberg Portfolio Order Management System as
Front Office System (FOS). The system has incorporated all the investment restrictions as per SEBI
guidelines and “soft” warning alerts at appropriate levels for preemptive monitoring. The
Axis Dynamic Bond Fund 46
system enables identifying & measuring the risk through various risk measurement tools like
various risk ratios, average duration and analyzes the same and acts in a preventive manner.
F. FUNDAMENTAL ATTRIBUTES
Following are the Fundamental Attributes of the Scheme, in terms of Regulation 18 (15A) of the
SEBI (MF) Regulations:
(i) Type of a Scheme
(ii) Investment Objective
(iii) Terms of Issue
o Liquidity provisions such as listing, repurchase, redemption.
o Aggregate fees and expenses charged to the Scheme.
o Any safety net or guarantee provided.
In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustees shall ensure
that no change in the fundamental attributes of the Scheme and the Plan(s) / Option(s)
thereunder or the trust or fee and expenses payable or any other change which would modify
the Scheme and the Plan(s) / Option(s) thereunder and affect the interests of Unitholders is
carried out unless:
A written communication about the proposed change is sent to each Unitholder and an
advertisement is given in one English daily newspaper having nationwide circulation as well
as in a newspaper published in the language of the region where the Head Office of the
Mutual Fund is situated; and
The Unitholders are given an option for a period of 30 days to exit at the prevailing Net
Asset Value without any exit load.
G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE?
Nifty Composite Debt Index
Justification for use of benchmark
The Scheme performance would be benchmarked NIFTY Composite Debt Index.
The scheme intends to invest in a portfolio of instruments (debt and money market instruments)
which is best captured in NIFTY Composite Debt Index. The constituents and weights of the
Index is as on April 2020 are as under
Constituents Weights (%)
NIFTY All Duration G-Sec Index 35%
NIFTY 10 Year SDL Index 5%
NIFTY AAA Short Duration Bond Index 21%
NIFTY AAA Medium Duration Bond Index 13%
NIFTY AAA Medium to Long Duration Bond Index 18%
NIFTY AA+ Short Duration Bond Index 1%
NIFTY AA Short Duration Bond Index 3%
NIFTY AA+ Medium Duration Bond Index 1%
NIFTY AA Medium Duration Bond Index 1%
NIFTY AA+ Medium to Long Duration Bond Index 1%
NIFTY AA Medium to Long Duration Bond Index 1%
Axis Dynamic Bond Fund 47
This is a realistic estimate to track the returns of a Dynamic Bond Fund at a particular risk level.
The Trustee/AMC reserves the right to change the benchmark for the evaluation of the
performance of the Scheme from time to time, keeping in mind the investment objective of
the Scheme and the appropriateness of the benchmark, subject to SEBI guidelines and other
prevalent guidelines.
H. WHO MANAGES THE SCHEME?
Name of
Fund
Manager
Age and
Qualificati
on
Experience of the Fund Manager
in the last 10 years
Names of other
schemes under his
management
Tenure
as Fund
Manager
of the
Scheme
Mr. R.
Sivakumar
45 years
Bachelor
of
Technolog
y, IIT,
Madras
PGDM, IIM,
Ahmedab
ad
Head – Fixed Income &
Products, Axis Asset
Management Company Ltd.
(September 02, 2010 – till date)
Fund Manager – PMS, Axis
Asset Management Co.
Ltd.(August 2009 till September
01 2010)
Chief Operating Officer, Fortis
Investment Management
(India) Pvt. Ltd. - previously
known as ABN AMRO Asset
Management (India) Pvt. Ltd.
(Last position held – Chief
Operating Officer. Previous
roles included Fund Manager –
Fixed Income, VP – Product
Development and Portfolio
Management and Head –
Structured Products.) (April
2004 – July 2009)
Fund Manager – Fixed Income,
Sundaram Asset Management
Company Ltd. (January 2001 –
March 2004)
Research Analyst, Zurich Asset
Management (India) Private
Ltd. (December 1999 –
December 2000
Axis Dynamic Bond
Fund (Along with Mr.
Devang Shah), Axis
Children’s Gift Fund
(Along with Mr.
Ashish Naik and Mr.
Kaustubh Sule), Axis
Triple Advantage
Fund (Along with Mr.
Ashish Naik), Axis
Dynamic Equity
Fund (Along with Mr.
Anupam Tiwari), Axis
Equity Saver Fund
(Along with Mr.
Anupam Tiwari), Axis
Equity Hybrid Fund
(Along with Mr.
Ashish Naik), Axis All
Seasons Debt Fund
of Funds, Axis
Retirement Savings
Fund including
Aggressive Plan,
Conservative Plan
and Dynamic Plan
(along with Mr.
Jinesh Gopani and
Mr. Hitesh Das) and
Axis Global Equity
Alpha Fund of Fund
(along with Mr.
Hitesh Das)
9 years
Mr.
Devang
Shah
38
B. Com,
ACA
Fund Manager – Fixed Income,
Axis Asset Management
Company Ltd. (October 16,
2012 till date)
Fund Manager, ICICI Prudential
Asset Management Company
Ltd. (April 2008 – October 2012)
Axis Strategic Bond
Fund (Along with Mr.
Dhaval Patel), Axis
Short Term Fund, Axis
Gilt Fund (along with
Mr. Kaustubh Sule),
Axis Dynamic Bond
8 years
Axis Dynamic Bond Fund 48
Name of
Fund
Manager
Age and
Qualificati
on
Experience of the Fund Manager
in the last 10 years
Names of other
schemes under his
management
Tenure
as Fund
Manager
of the
Scheme
Analyst, Deutsche Asset
Management (India) Pvt. Ltd.
(2006-2008)
Assistant Manager,
Pricewaterhouse Coopers
(2004-2006)
Fund (Along with Mr.
R. Sivakumar), Axis
Liquid Fund (Along
with Mr. Aditya
Pagaria), Axis
Arbitrage Fund
(Along with Mr.
Viresh Joshi), Axis
Gold Fund, Axis Gold
ETF, Axis Treasury
Advantage Fund
(Along with Mr.
Aditya Pagaria), Axis
Regular Saver Fund
(Along with Mr.
Ashish Naik and Mr.
Sachin Jain), Axis
Credit Risk Fund
(along with Mr.
Dhaval Patel) Axis
Fixed Term Plans,
Axis Corporate Debt
Fund and Axis
Money Market Fund
(along with Mr.
Aditya Pagaria).
Presently, the Trustee/AMC has not designated a dedicated Fund Manager for investment in
Foreign Securities. However, it shall be ensured that there is a dedicated fund manager for
investment in foreign securities as and when the fund makes investment in foreign securities.
I. WHAT ARE THE INVESTMENT RESTRICTIONS?
Pursuant to Regulations, specifically the Seventh Schedule and amendments thereto, the
following investment restrictions are currently applicable to the Scheme:
1. A Mutual Fund Scheme shall not invest more than 10% of its NAV in debt instruments
comprising money market instruments and non-money market instruments issued by a
single issuer, which are rated not below investment grade by a credit rating agency
authorized to carry out such activitiy under the SEBI Act, 1992. Such investment limit may be
extended to 12% of the NAV of the Scheme with the prior approval of the Trustee and the
Board of Directors of AMC.
Provided that such limit shall not be applicable for investment in Government Securities,
treasury bills and collateralized borrowing and lending obligations.
Provided further that investments within such limit can be made in the mortgaged backed
securitised debt, which are rated not below investment grade by a credit rating agency,
registered with SEBI.
2. The Scheme shall not invest in unlisted debt instruments including commercial papers,
except Government Securities, money market instruments and derivative products such as
Interest Rate Swaps, Interest Rate Futures, etc. which are used by mutual fund for hedging.
Axis Dynamic Bond Fund 49
Provided that the Scheme may invest in unlisted non-convertible debentures up to a
maximum of 10% of the debt portfolio of the Scheme subject to such conditions as may be
specified by the Board from time to time:
Provided further that the Scheme shall comply with the norms under this clause within the
time and in the manner as may be specified by the Board:
Provided further that the norms for investments by the Scheme in unrated debt instruments
shall be as specified by the Board from time to time.
Further the investments by the Scheme shall be in compliance with SEBI circular no.
SEBI/HO/IMD/DF2/CIR/P/2019/104 dated October 1, 2019 and as amended by SEBI from
time to time.
3. The investment by the Scheme in the following instruments shall not exceed 10% of the
debt portfolio of the scheme and the group exposure in such instruments shall not exceed
5% of the debt portfolio of the scheme:
a. Unsupported rating of debt instruments (i.e. without factoring-in credit enhancements)
is below investment grade and
b. Supported rating of debt instruments (i.e. after factoring-in credit enhancement) is
above investment grade.
These limits shall not be applicable on investments in securitized debt instruments, as
defined in SEBI (Public Offer and Listing of Securitized Debt Instruments) Regulations 2008.
4. Investment in debt instruments, having credit enhancements backed by equity shares
directly or indirectly, shall have a minimum cover of 4 times considering the market value of
such shares.
5. The Scheme may invest in other schemes of the Mutual Fund or any other mutual fund
without charging any fees, provided the aggregate inter-scheme investment made by all
the schemes under the same management or in schemes under the management of any
other asset management company shall not exceed 5% of the Net Asset Value of the Fund.
6. The Scheme shall not make any investment in :
any unlisted security of an associate or group company of the sponsor; or
any security issued by way of private placement by an associate or group company of
the sponsor; or
the listed securities of group companies of the sponsor which is in excess of 25% of the
net assets.
7. The Mutual Fund shall get the securities purchased transferred in the name of the Fund on
account of the concerned Scheme, wherever investments are intended to be of a long-
term nature.
8. Transfer of investments from one scheme to another scheme in the same Mutual Fund is
permitted provided:
a) such transfers are done at the prevailing market price for quoted instruments on spot
basis (spot basis shall have the same meaning as specified by a Stock Exchange for
spot transactions); and
b) the securities so transferred shall be in conformity with the investment objective of the
Scheme to which such transfer has been made.
9. The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases
of purchases, take delivery of relevant securities and in all cases of sale, deliver the
securities:
Provided that the Mutual Fund may engage in Short Selling of securities in accordance with
the framework relating to Short Selling and securities lending and borrowing specified by
SEBI.
Axis Dynamic Bond Fund 50
Provided further that the Mutual Fund may enter into Derivatives transactions in a
recognized stock exchange, subject to the framework specified by SEBI.
Provided further that sale of government security already contracted for purchase shall be
permitted in accordance with the guidelines issued by the RBI in this regard.
10. The Scheme shall not make any investment in any fund of funds scheme.
11. Pending deployment of the funds of the Scheme in securities in terms of the investment
objective of the Scheme, the AMC may park the funds of the Scheme in short term
deposits of scheduled commercial banks, subject to the guidelines issued by SEBI.
The Scheme will comply with the following guidelines/ restrictions for parking of funds in
short term deposits:
i. “Short Term” for such parking of funds by the Scheme shall be treated as a period not
exceeding 91 days. Such short-term deposits shall be held in the name of the Scheme.
ii. The Scheme shall not park more than 15% of the net assets in short term deposit(s) of all
the scheduled commercial banks put together. However, such limit may be raised to 20%
with prior approval of the Trustee.
iii. Parking of funds in short term deposits of associate and sponsor scheduled commercial
banks together shall not exceed 20% of total deployment by the Mutual Fund in short
term deposits.
iv. The Scheme shall not park more than 10% of the net assets in short term deposit(s), with
any one scheduled commercial bank including its subsidiaries.
v. The Scheme shall not park funds in short term deposit (STD) of a bank which has invested
in that Scheme. Further, Trustees/ AMCs shall also ensure that the bank in which the
Scheme has STD do not invest in the said scheme until the Scheme has STD with such
bank.
vi. The AMC will not charge any investment management and advisory fees for funds
parked in short term deposits of scheduled commercial banks
However, the above provisions will not apply to term deposits placed as margins for trading
in cash and derivatives market.
12. The Scheme shall not advance any loans.
13. The Scheme shall not borrow except to meet temporary liquidity needs of the Scheme for
the purpose of repurchase/redemption of Unit or payment of interest and/or Dividend to
the Unit holder.
Provided that the Scheme shall not borrow more than 20% of the net assets of the
individual Scheme and the duration of the borrowing shall not exceed a period of 6 months.
14. a) The mutual fund under all its schemes shall not own more than 10% of units issued by a
single issuer of REIT and InvIT.
b) The Scheme shall not invest –
i. more than 10% of its NAV in the units of REIT and InvIT; and
ii. more than 5% of its NAV in the units of REIT and InvIT issued by a single issuer.
15. SEBI vide its circular no. Cir/IMD/DF/11/2010 dated August 18, 2010 has prescribed the
following investment restrictions w.r.t. investment in derivatives:
S.
No.
Particulars
1 The cumulative gross exposure through debt and derivative positions shall not
exceed 100% of the net assets of the Scheme. Cash or cash equivalents with
residual maturity of less than 91 days shall be treated as not creating any
exposure.
2 The Scheme shall not write options or purchase instruments with embedded
Axis Dynamic Bond Fund 51
written options.
3 The total exposure related to option premium paid shall not exceed 20% of the
net assets of the Scheme.
4 Exposure due to hedging positions may not be included in the above mentioned
limits subject to the following:
a. Hedging positions are the derivative positions that reduce possible losses on
an existing position in securities and till the existing position remains.
b. Hedging positions cannot be taken for existing derivative positions. Exposure
due to such positions shall have to be added and treated under limits
mentioned in Point 1.
c. Any derivative instrument used to hedge has the same underlying security as
the existing position being hedged.
d. The quantity of underlying associated with the derivative position taken for
hedging purposes does not exceed the quantity of the existing position
against which hedge has been taken.
5 Exposure due to derivative positions taken for hedging purposes in excess of the
underlying position against which the hedging position has been taken, shall be
treated under the limits mentioned in point 1.
6 Each position taken in derivatives shall have an associated exposure as defined
under. Exposure is the maximum possible loss that may occur on a position.
However, certain derivative positions may theoretically have unlimited possible
loss. Exposure in derivative positions shall be computed as follows:
Position Exposure
Long Future Futures Price * Lot Size * Number of Contracts
Short Future Futures Price * Lot Size * Number of Contracts
Option bought Option Premium Paid * Lot Size * Number of Contracts.
7 The Scheme may enter into plain vanilla interest rate swaps for hedging purposes.
The counter party in such transactions has to be an entity recognized as a market
maker by RBI. Further, the value of the notional principal in such cases shall not
exceed the value of respective existing assets being hedged by the Scheme.
Exposure to a single counterparty in such transactions shall not exceed 10% of the
net assets of the Scheme.
8 To reduce interest rate risk in a debt portfolio, mutual funds may hedge the
portfolio or part of the portfolio (including one or more securities) on weighted
average modified duration basis by using Interest Rate Futures (IRFs). The
maximum extent of short position that may be taken in IRFs to hedge interest rate
risk of the portfolio or part of the portfolio, is as per the formula given below:
(Portfolio Modified Duration*Market Value of the Portfolio)
(Futures Modified Duration*Futures Prices/PAR)
16. The total exposure in a particular sector (excluding investments in Bank CDs, CBLO,
Government Securities, T-Bills, short term deposits of scheduled commercial banks and AAA
rated securities issued by Public Financial Institutions and Public Sector Banks) shall not
exceed 20% of the net assets of the Scheme.
Provided that an additional exposure to financial services sector (over and above the limit
of 20%) not exceeding 10% of the net assets of the Scheme shall be allowed by way of
increase in exposure to Housing Finance Companies (HFCs) only;
Provided further that the additional exposure to such securities issued by HFCs are rated AA
and above and these HFCs are registered with National Housing Bank (NHB) and the total
Investment/exposure in HFCs shall not exceed 20% of the net assets of the Scheme.
Further, an additional exposure of 5% of the net assets of the Scheme shall be allowed for
investments in securitized debt instruments based on retail housing loan portfolio and/or
affordable housing loan portfolio.
Axis Dynamic Bond Fund 52
17. The total exposure in a particular group (excluding investments in securities issued by Public
Sector Units, Public Financial Institutions and Public Sector Banks) shall not exceed 20% of
the net assets of the Scheme. Such investment limit may be extended to 25% of the net
assets of the Scheme with the prior approval of the Board of Trustees.
For this purpose, a group means a group as defined under regulation 2 (mm) of SEBI (MF)
Regulations and shall include an entity, its subsidiaries, fellow subsidiaries, its holding
company and its associates.
Further, limit for investment in debt and money market instruments of group companies of
both the sponsor and AMC shall not exceed 10% of the net assets of the Scheme. Such
investment limit can be extended to 15% with the prior approval of the Board of Trustees.
18. The Scheme shall participate in repos in corporate debt securities as per the guidelines
issued by SEBI and/ or RBI from time to time and the guidelines framed by the Board of
Directors of Trustee Company and the Asset Management Company, from time to time. At
present the following conditions and norms shall apply to repo in corporate debt securities:
(i) The gross exposure of the Scheme to repo transactions in corporate debt securities shall
not be more than 10 % of the net assets of the Scheme.
(ii) The cumulative gross exposure through repo transactions in corporate debt securities
along with equity, debt and derivatives shall not exceed 100% of the net assets of the
Scheme.
(iii) The Scheme shall participate in repo transactions only in AA and above rated
corporate debt securities.
(iv) The Scheme shall borrow through repo transactions only if the tenor of the transaction
does not exceed a period of six months.
(v) The Trustee and the Asset Management Company have framed guidelines interalia
considering the following aspects:
i. Category of counterparty
ii. Credit rating of counterparty
iii. Tenor of collateral
iv. Applicable haircuts
(vi) Counterparty selection & credit rating
(vii) The counterparty must be an acceptable counterparty for debt transactions. The
Mutual Fund follows a counterparty empanelment process for fixed income
transactions and the same shall be used for selection of counterparties for corporate
bond repos. All repo transactions in corporate bonds will be governed by a repo
agreement as specified by FIMMDA and / or other specified authorities.
(viii) Collateral tenor & quality
The exposure limit/investment restrictions prescribed under the Seventh Schedule of the
Regulations and circulars issued there under (wherever applicable) shall be applicable
to repo transactions in corporate bonds. The Scheme shall further follow guidelines
framed by Trustee and the AMC from time to time.
(ix) Applicable haircuts
Currently mutual funds are permitted to carry out repo transactions in government
securities without any haircuts. The Reserve Bank of India has notified a minimum
haircut based on rating of the corporate bond and other securities. In addition, the
Fixed Income and Money Market Dealers Association (FIMMDA) would maintain a
rating-haircut matrix on an ongoing basis. The Scheme shall further follow guidelines
framed by Trustee and the AMC from time to time.
The haircuts seek to protect the lender of funds from the event of the counterparty
failing to honor the repurchase leg of the repo. In such a circumstance, the Fund would
suffer a loss if the value of the collateral depreciates by more than the haircut. The fall
in the value of the collateral could be on account of higher yields and/ or deterioration
of credit quality.
Axis Dynamic Bond Fund 53
As the typical tenor of repos is short (typically overnight), the haircuts represent a
relatively high degree of safety in relation to the interest rate risk on the collateral. The
risk of collateral depreciation based on historical volatility is given in the table below:
Bond Tenor (yrs) 1 3 5 10
Price Volatility (%) (annualized) 0.6 1.2 1.7 3.4
Repo Tenor Number of standard deviations needed to lose
10%
1 day 258 136 94 48
7 days 98 52 36 18
In the above table, the price volatility of a 10-year bond is about 3.4% annualized. That
is a 10% price move represents nearly a 3-sigma event on an annualized basis. For
overnight tenors, this represents a 48-sigma event (for comparison a 6-sigma event
occurs about once in a million observations).
It is apparent that the haircuts stipulated by RBI are more than sufficient to mitigate
interest rate risk. Credit event risk remains (the collateral could default during the tenor
of the repo). This risk is to be mitigated by ensuring that the collateral is acceptable
from a credit point of view.
The Scheme will comply with the other Regulations applicable to the investments of Mutual
Funds from time to time.
All the investment restrictions will be applicable at the time of making investments.
The AMC/Trustee may alter these above stated restrictions from time to time to the extent the
Regulations change, so as to permit the Scheme to make its investments in the full spectrum of
permitted investments for mutual funds to achieve its respective investment objective.
J. CREATION OF SEGREGATED PORTFOLIO
Creation of segregated portfolio shall be subject to guidelines specified by SEBI from time to
time and includes the following:
In this regard, the term ‘segregated portfolio’ shall mean a portfolio comprising of debt or
money market instrument affected by a credit event, that has been segregated in a mutual
fund scheme. The term ‘main portfolio’ shall mean the scheme portfolio excluding the
segregated portfolio. The term ‘total portfolio’ shall mean the scheme portfolio including the
securities affected by the credit event.
Credit Event
A) For rated debt or money market instruments
1) Segregated portfolio may be created, in case of a credit event at issuer level i.e.
downgrade in credit rating by a SEBI registered Credit Rating Agency (CRA), as under:
a. Downgrade of a debt or money market instrument to ‘below investment grade’, or
b. Subsequent downgrades of the said instruments from ‘below investment grade’, or
c. Similar such downgrades of a loan rating
2) In case of difference in rating by multiple CRAs, the most conservative rating shall be
considered. Creation of segregated portfolio shall be based on issuer level credit events as
mentioned above and implemented at the ISIN level.
3) Creation of segregated portfolio is optional and is at the discretion of Axis Asset
Management Company Ltd. (‘Axis AMC’/‘the AMC’)
B) For unrated debt or money market instruments
Axis Dynamic Bond Fund 54
Segregated portfolio of unrated debt or money market instruments may be created
only in case of actual default of either the interest or principal amount by the issuer.
Credit event in this case shall be ‘actual default’ by the issuer of such instruments and
shall be considered for creation of segregated portfolio.
Process for Creation of Segregated Portfolio
1) On the date of credit event, the AMC shall decide on creation of segregated portfolio.
Once AMC decides to segregate portfolio, it shall:
a. seek approval of trustees prior to creation of the segregated portfolio.
b. immediately issue a press release disclosing its intention to segregate such debt and
money market instrument and its impact on the investors. Axis Mutual Fund shall disclose
that the segregation shall be subject to Trustee approval. Additionally, the said press
release shall be prominently disclosed on the website of the AMC.
c. ensure that till the time the Trustee approval is received, which in no case shall exceed
1 business day from the day of credit event, the subscription and redemption in the
Scheme shall be suspended for processing with respect to creation of units and
payment on redemptions.
2) Once Trustee approval is received by the AMC:
a. Segregated portfolio shall be effective from the day of credit event
b. AMC shall issue a press release immediately with all relevant information pertaining to
the segregated portfolio. The said information will also be submitted to SEBI.
c. An e-mail or SMS shall be sent to all unit holders of the Scheme.
d. The NAV of both segregated and main portfolios shall be disclosed from the day of the
credit event.
e. All existing investors in the Scheme as on the day of the credit event shall be allotted
equal number of units in the segregated portfolio as held in the main portfolio.
f. No redemption and subscription shall be allowed in the segregated portfolio. AMC shall
enable listing of units of segregated portfolio on the recognized stock exchange within
10 working days of creation of segregated portfolio and also enable transfer of such
units on receipt of transfer requests
3) If the trustees do not approve the proposal to segregate portfolio, AMC will issue a press
release immediately informing investors of the same.
Valuation
Notwithstanding the decision to segregate the debt and money market instrument, the
valuation shall take into account the credit event and the portfolio shall be valued based on
the principles of fair valuation (i.e. realizable value of the assets) in terms of the relevant
provisions of SEBI (Mutual Funds) Regulations, 1996 and circular(s) issued thereunder.
Processing of Subscription and Redemption Proceeds
All subscription and redemption requests for which NAV of the day of credit event or
subsequent day is applicable will be processed as under:
i. Upon trustees’ approval to create a segregated portfolio -
Investors redeeming their units will get redemption proceeds based on the NAV of main
portfolio and will continue to hold the units of segregated portfolio.
Investors subscribing to the Scheme will be allotted units only in the main portfolio
based on its NAV.
ii. In case trustees do not approve the proposal of segregated portfolio, subscription and
redemption applications will be processed based on the NAV of total portfolio.
Disclosure
In order to enable the existing as well as the prospective investors to take informed decision,
the following shall be adhered to:
a. A statement of holding indicating the units held by the investors in the segregated portfolio
along with the NAV of both segregated portfolio and main portfolio as on the day of the
Axis Dynamic Bond Fund 55
credit event shall be communicated to the investors within 5 working days of creation of
the segregated portfolio.
b. Adequate disclosure of the segregated portfolio shall be made in all scheme related
documents, in monthly and half-yearly portfolio disclosures and in the annual report of the
mutual fund and the Scheme.
c. The Net Asset Value (NAV) of the segregated portfolio shall be declared on daily basis.
d. The information regarding number of segregated portfolios created in the Scheme shall
appear prominently under the name of the Scheme at all relevant places such as SID, KIM-
cum-Application Form, advertisement, AMC and AMFI websites, etc.
e. The Scheme performance required to be disclosed at various places shall include the
impact of creation of segregated portfolio. The Scheme performance should clearly reflect
the fall in NAV to the extent of the portfolio segregated due to the credit event and the
said fall in NAV along with recovery(ies), if any, shall be disclosed as a footnote to the
Scheme performance.
f. The disclosures at paragraph (d) and (e) above regarding the segregated portfolio shall be
carried out for a period of at least 3 years after the investments in segregated portfolio are
fully recovered/ written-off.
g. The investors of the segregated portfolio shall be duly informed of the recovery
proceedings of the investments of the segregated portfolio. Status update may be
provided to the investors at the time of recovery and also at the time of writing-off of the
segregated securities.
TER for the Segregated Portfolio
1) Axis AMC shall not charge investment and advisory fees on the segregated portfolio.
However, TER (excluding the investment and advisory fees) can be charged, on a pro-rata
basis only upon recovery of the investments in segregated portfolio.
2) The TER so levied shall not exceed the simple average of such expenses (excluding the
investment and advisory fees) charged on daily basis on the main portfolio (in % terms)
during the period for which the segregated portfolio was in existence.
3) The legal charges related to recovery of the investments of the segregated portfolio may
be charged to the segregated portfolio in proportion to the amount of recovery. However,
the same shall be within the maximum TER limit as applicable to the main portfolio. The
legal charges in excess of the TER limits, if any, shall be borne by the AMC.
4) The costs related to segregated portfolio shall in no case be charged to the main portfolio.
Monitoring by Trustees
In order to ensure timely recovery of investments of the segregated portfolio, Trustees shall
ensure that:
a. The AMC puts in sincere efforts to recover the investments of the segregated portfolio.
b. Upon recovery of money, whether partial or full, it shall be immediately distributed to the
investors in proportion to their holding in the segregated portfolio. Any recovery of amount
of the security in the segregated portfolio even after the write off shall be distributed to the
investors of the segregated portfolio.
c. The Trustees shall monitor the compliance of this circular and disclose in the half-yearly
trustee reports filed with SEBI, the compliance in respect of every segregated portfolio
created.
In order to avoid mis-use of segregated portfolio, Trustees shall ensure to have a mechanism in
place to negatively impact the performance incentives of Fund Managers, Chief Investment
Officers (CIOs), etc. involved in the investment process of securities under the segregated
portfolio, mirroring the existing mechanism for performance incentives of the AMC, including
claw back of such amount to the segregated portfolio of the Scheme.
Illustration of segregated portfolio
The below table shows how a rated security affected by a credit event will be segregated and
its impact on investors:
Axis Dynamic Bond Fund 56
Portfolio Date July 22, 2019
Downgrade
Event Date
July 22, 2019
Mr. X is holding 1,000 units of the scheme for an amount of Rs. 11,31,993.87 (1,000 *
1,131.9939)
Portfolio before downgrade event
Security Rating Type of the
security
Quantity Market
Price Per
Unit (Rs.)
Market Value
(Rs.)
% of
Net
Assets
9.60% A Ltd. CRISIL AAA NCD 5,000 103.2232 5,16,116.00 45.59%
8.80% B Ltd. CRISIL AA+ NCD 2,000 99.4678 1,98,935.60 17.57%
9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 10.43%
7.70% D Ltd. CRISIL AA+ NCD 2,000 99.0000 1,98,000.00 17.49%
8.80% E Ltd. CRISIL AA NCD 500 101.2211 50,610.55 4.47%
Cash & cash
equivalents
50,321.20 4.45%
Net Assets 11,31,993.87 100.00%
Unit capital (no
of units)
1000.000
NAV (In Rs.) 1131.9939
Security
downgraded
7.70% D Ltd. from AA+ to D
Valuation
Marked down by
75.00% Valuation agencies shall be providing the valuation price post
consideration of standard haircut matrix.
Total Portfolio as on July 22, 2019
Security Rating
Type of the
security
Quantity
Market
Price Per
Unit (Rs.)
Market Value
(Rs.)
% of
Net
Assets
9.60% A Ltd. CRISIL AAA NCD 5,000 103.2232 5,16,116.00 52.45%
8.80% B Ltd. CRISIL AA+ NCD 2,000 99.4678 1,98,935.60 20.22%
9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 11.99%
7.70% D Ltd. CRISIL D NCD 2,000 25.0000 50,000.00 5.08%
8.80% E Ltd. CRISIL AA NCD 500 101.2211 50,610.55 5.14%
Cash & cash
equivalents 50,321.20 5.11%
Net Assets 9,83,993.87 100.00%
Unit capital (no
of units) 1000.000
NAV (In Rs.) 983.9939
Main Portfolio as on July 22, 2019
Security Rating Type of the
security
Quantity Market
Price Per
Unit (Rs.)
Market Value
(Rs.)
% of
Net
Assets
9.60% A Ltd. CRISIL AAA NCD 5,000 103.2232 5,16,116.00 55.26%
8.80% B Ltd. CRISIL AA+ NCD 2,000 99.4678 1,98,935.60 21.30%
9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 12.64%
8.80% E Ltd. CRISIL AA NCD 500 101.2211 50,610.55 5.42%
Cash & cash
equivalents
50,321.20 5.39%
Net Assets 9,33,993.87 100.00%
Unit capital (no
of units)
1000.000
Axis Dynamic Bond Fund 57
NAV (In Rs.) 933.9939
Segregated Portfolio as on July 22, 2019
Security Rating
Type of the
security
Quantity
Market
Price Per
Unit (Rs.)
Market Value
(Rs.)
% of
Net
Assets
7.70% D Ltd. CRISIL D NCD 2,000 25.0000 50,000.00 100.00%
Net Assets 50,000.00 100.00%
Unit capital (no
of units) 1000.000
NAV (In Rs.) 50.0000
0.0000
Net impact on value of holding of Mr. X after creation of segregation
portfolio
Main Portfolio
Segregated
Portfolio
Total
Value
No. of Units 1,000 1,000
NAV (in Rs.) 933.9939 50.0000
Total Value (in
Rs.) 9,33,993.87 50,000.00 9,83,993.87
K. HOW HAS THE SCHEME PERFORMED?
Performance of Axis Dynamic Bond Fund – Regular Plan – Growth Option as at October 31,
2020 is as follows:
Period Axis Dynamic Bond Fund
– Regular Plan – Growth
Option^
NIFTY Composite
Debt Index
1 year returns 13.43% 12.15%
3 year returns 9.39% 9.03%
5 year returns 9.03% 8.90%
Returns Since Inception (April 27, 2011) 9.10% 8.96%
Absolute returns for the past 5 financial years
Performance of Axis Dynamic Bond Fund - Direct Plan - Growth Option as at October 31, 2020
is as follows:
Period Axis Dynamic Bond
Fund - Direct Plan -
Growth Option^
NIFTY Composite
Debt Index
1 Year returns 13.93% 12.15%
Axis Dynamic Bond Fund 58
3 Year returns 10.16% 9.03%
5 Year returns 9.90% 8.90%
Since Inception returns (January 1, 2013) 10.08% 8.90%
Absolute returns for the past 5 financial years
^Past performance may or may not be sustained in future. Returns are compounded
annualized for period more than 1 year. Since inception returns are calculated on Rs. 10
invested at inception. Calculations are based on Growth Option NAVs. Since inception returns
for Axis Dynamic Bond Fund – Regular Plan & Axis Dynamic Bond Fund - Direct Plan are
calculated from April 27, 2011 and January 1, 2013 respectively. Different plans have different
expense structure.
L. INVESTMENTS BY THE AMC
Subject to the Regulations, the AMC may invest either directly or indirectly, in the Scheme
during Ongoing Offer Period. However, the AMC shall not charge any investment
management fee on such investment in the Scheme.
M. ADDITIONAL SCHEME RELATED DISCLOSURES
a. Scheme’s portfolio holdings as on October 31, 2020:
1. Top 10 holdings by Issuer:
Name of Issuer % of Net Assets
State Government Bond 14.24%
State Bank of India 7.78%
Food Corporation Of India (Guarantee from Government of
India) 7.62%
National Bank For Agriculture and Rural Development 7.13%
Housing Development Finance Corporation Limited 7.04%
National Highways Auth Of Ind 6.84%
Indian Railway Finance Corporation Limited 6.55%
NHPC Limited 6.38%
REC Limited 5.47%
Power Finance Corporation Limited 4.90%
2. Fund allocation towards various Sectors:
Sector % of Net Assets
FINANCIAL SERVICES 47.84%
GOVERNMENT OF INDIA 18.66%
POWER 12.29%
CONSUMER GOODS 7.62%
CONSTRUCTION 6.84%
Axis Dynamic Bond Fund 59
OTHERS^ 4.25%
OIL & GAS 1.81%
Cash & Cash Equivalent: 0.69%
Total 100.0%
^TREPS/Repo/Mutual Fund Units
Please visit www.axismf.com to obtain Scheme’s latest monthly portfolio holding statement.
b. Portfolio Turnover
Portfolio turnover ratio: Not applicable
c. Aggregate investment in the Scheme of certain categories of persons:
Sr.
No.
Category of Persons Net Asset Value of Units held as on
October 31, 2020 (in Rs.)
i AMC’s Board of Directors 5,66,46,503.34
ii Concerned scheme’s Fund Manager(s) 1,48,56,830.95
iii Other key managerial personnel 1,40,69,121.18
Note:
1. Investment of Managing Director & Chief Executive Officer of AMC, if any, is included in
investments of “Other key managerial personnel”.
2. Investment of Fund Manager of the Scheme is not included in investments of “Other key
managerial personnel”.
Axis Dynamic Bond Fund 60
III. UNITS AND OFFER
This section provides details you need to know for investing in the Scheme.
A. NEW FUND OFFER (NFO)
New Fund Offer
Period
This is the period
during which a new
scheme sells its units
to the investors.
The New Fund Offer opened on April 06, 2011 and closed on April 20,
2011. The units under the Scheme were allotted on April 27, 2011.
New Fund Offer
Price:
This is the price per
unit that the investors
have to pay to invest
during the NFO.
Not Applicable
Minimum Amount for
Application in the
NFO
Not Applicable
Minimum Target
amount
Not Applicable
Maximum Amount to
be raised (if any)
Not Applicable
Plans / Options
offered
The Scheme offers the following plans:
Axis Dynamic Bond Fund – Regular Plan
Axis Dynamic Bond Fund – Direct Plan
Each Plan offers following options:
Growth option
Dividend option
Options Sub-options Record date*
Growth Nil NA
Dividend Quarterly(payout
and reinvestment)
25th of March, June
September, and December
Half yearly(payout
and reinvestment)
25th of March and September
* Next business day if record date happens to be a Non Business Day.
If dividend payable under Dividend Payout option is equal to or less than
Rs. 500/- then the dividend would be compulsorily reinvested in the
option of the Scheme.
The Investors should indicate the option for which Subscription is made
by indicating the choice in the appropriate box provided for this
purpose in the application form. In case of valid application received
without any choice of option/facility, the following default option/facility
will be considered;
Default Plans
Treatment of applications under Direct/ Regular Plans
Investors subscribing under Direct Plan of a Scheme will have to indicate
“Direct Plan” against the Scheme name in the application form e.g.
Axis Dynamic Bond Fund 61
“Axis Dynamic Bond Fund – Direct Plan”. Investors should also indicate
“Direct” in the ARN column of the application form.
The investors may refer to the following table for applicability of Direct
Plan/ Regular Plan under different scenario :-
Scenario Broker Code
mentioned by the
investor
Plan mentioned by
the investor
Default Plan to
be captured
1 Not mentioned Not mentioned Direct Plan
2 Not mentioned Direct Direct Plan
3 Not mentioned Regular Direct Plan
4 Mentioned Direct Direct Plan
5 Direct Not Mentioned Direct Plan
6 Direct Regular Direct Plan
7 Mentioned Regular Regular Plan
8 Mentioned Not Mentioned Regular Plan
In cases of wrong/ invalid/ incomplete ARN codes mentioned on the
application form, the application shall be processed under Regular Plan.
The AMC shall contact and obtain the correct ARN code within 30
calendar days of the receipt of the application form from the investor/
distributor. In case, the correct code is not received within 30 calendar
days, the AMC shall reprocess the transaction under Direct Plan from the
date of application without any exit load.
Default Option
The investor must clearly specify his choice of option/facility. In the
absence of such clear instruction, it will be assumed that the investor has
opted for ‘default’ option / facility and the application will be processed
accordingly. The default plan/ option / facility are:
Default Option – Growth
Default sub option – Quarterly
Default between Payout & Reinvestment Option – Reinvestment
Existing Investments :
Investors wishing to transfer their accumulated unit balance held under
Regular Plan (through lumpsum / systematic investments made with or
without Distributor code) to Direct Plan will have to switch /redeem their
investments (subject to applicable Exit Load, if any) and apply under
Direct Plan.
Investors who have invested without Distributor code and have opted for
Dividend Reinvestment facility under Regular Plan may note that the
dividend will continue to be reinvested in the Regular Plan only.
Default Plan – Redemption application
Where Units under a Scheme are held under both Plans and the
redemption / Switch request pertains to the Direct Plan, the same must
clearly be mentioned on the request (along with the folio number),
failing which the request would be processed from Axis Dynamic Bond
Fund – Regular Plan. However, where Units under the requested Option
are held only under one Plan, the request would be processed under
such Plan.
Growth option
Dividends will not be declared under this option. The income attributable
Axis Dynamic Bond Fund 62
to Units under this option will continue to remain invested in the Scheme
and will be reflected in the NAV of Units under this option.
Dividend option
Under this option, Dividends will be declared (subject to deduction of tax
at source, if any) at specified frequencies at the discretion of the Trustee,
subject to availability of distributable surplus calculated in accordance
with SEBI (MF) Regulations. On payment of Dividend, the NAV of the Unit
under Dividend option will fall to the extent of the Dividend payout and
applicable statutory levies, if any.
It must be distinctly understood that the actual declaration of Dividend
and frequency thereof is at the sole discretion of the Trustee. There is no
assurance or guarantee to the Unit holders as to the rate of Dividend
distribution nor that will the Dividend be paid regularly. The Trustee
reserves the right to declare a Dividend at any other frequency in
addition to the frequencies mentioned above.
Dividend Payout Facility
Under this facility, Dividend declared, if any, will be paid (subject to
deduction of Dividend distribution tax and statutory levy, if any) to those
Unit holder, whose names appear in the register of Unit holders on the
notified record date.
Dividend Reinvestment Facility
Under this facility, the Dividend due and payable to the Unit holders will
be compulsorily and without any further act by the Unit holder,
reinvested in the respective Dividend option at a price based on the
prevailing ex-Dividend Net Asset Value per Unit. The amount of Dividend
re-invested will be net of tax deducted at source, wherever applicable.
The Dividends so reinvested shall constitute a constructive payment of
Dividends to the Unit holders and a constructive receipt of the same
amount from each Unit holder for reinvestment in Units.
On reinvestment of Dividends, the number of Units to the credit of Unit
holder will increase to the extent of the Dividend reinvested divided by
the Applicable NAV. There shall, however, be no Load on the Dividend
so reinvested.
Dividend Policy Under the Dividend option, the Trustee will have the discretion to declare
the Dividend as per the specified frequencies, subject to availability of
distributable surplus calculated in accordance with the Regulations. The
actual declaration of Dividend and frequency will inter-alia, depend on
availability of distributable 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 holder as to the
rate of Dividend nor that the Dividend will be paid regularly.
The AMC/Trustee reserves the right to change the frequency of
declaration of Dividend or may provide for additional frequency for
declaration of Dividend.
Dividend Distribution Procedure
In accordance with SEBI circular no. SEBI/ IMD/ Cir No. 1/ 64057/06 dated
April 4, 2006, the procedure for Dividend distribution would be as under:
1. Quantum of Dividend and the record date will be fixed by the
Trustee. Dividend so decided shall be paid, subject to availability of
distributable surplus.
Axis Dynamic Bond Fund 63
2. Within one calendar day of decision by the Trustee, the AMC shall
issue notice to the public communicating the decision about the
Dividend including the record date, in one English daily newspaper
having nationwide circulation as well as in a newspaper published in
the language of the region where the head office of the Mutual
Fund is situated.
3. Record date shall be the date, which will be considered for the
purpose of determining the eligibility of Investors whose names
appear on the register of Unit holder for receiving Dividends. The
Record Date will be 5 calendar days from the date of issue of notice.
4. The notice will, in font size 10, bold, categorically state that pursuant
to payment of the Dividend, the NAV of the Scheme would fall to the
extent of payout and statutory levy (if applicable).
5. The NAV will be adjusted to the extent of dividend distribution and
statutory levy, if any, at the close of Business Hours on record date.
6. Before the issue of such notice, no communication indicating the
probable date of Dividend declaration in any manner whatsoever
will be issued by Mutual Fund.
However, the requirement of giving notice shall not be applicable for
Dividend options having frequency up to one month.
Allotment Not Applicable
Refund Not Applicable
Who can invest
This is an indicative
list and you are
requested to consult
your financial advisor
to ascertain whether
the scheme is
suitable to your risk
profile.
The following persons (subject to, wherever relevant, purchase of unit of
mutual funds, being permitted under respective constitutions, and
relevant statutory regulations) are eligible and may apply for
Subscription to the Unit of the Scheme:
1. Resident adult individuals either singly or jointly (not exceeding three)
or on an Anyone or Survivor basis;
2. Hindu Undivided Family (HUF) through Karta;
3. Minor (as the first and the sole holder only) through a natural
guardian (i.e. father or mother, as the case may be) or a court
appointed legal guardian. There shall not be any joint holding with
minor investments;
4. Partnership Firms;
5. Limited Liability Partnerships
6. Proprietorship in the name of the sole proprietor;
7. Companies, Bodies Corporate, Public Sector Undertakings (PSUs.),
Association of Persons (AOP) or Bodies of Individuals (BOI) and
societies registered under the Societies Registration Act, 1860 (so
long as the purchase of Unit is permitted under the respective
constitutions);
8. Banks (including Co-operative Banks and Regional Rural Banks) and
Financial Institutions;
9. Religious and Charitable Trusts, Wakfs or endowments of private trusts
(subject to receipt of necessary approvals as "Public Securities" as
required) and Private trusts authorised to invest in mutual fund
schemes under their trust deeds;
10. Non-Resident Indians (NRIs) / Persons of Indian origin (PIOs) /
Overseas Citizen of India (OCI) residing abroad on repatriation basis
or on non-repatriation basis;
11. Foreign Portfolio Investor (FPI), registered with SEBI, on repatriation
basis. These investments shall be subject to the conditions prescribed
by SEBI, RBI, Income Tax authorities and the AMC, from time to time;
12. Army, Air Force, Navy and other para-military units and bodies
created by such institutions;
13. Scientific and Industrial Research Organisations;
Axis Dynamic Bond Fund 64
14. Multilateral Funding Agencies / Bodies Corporate incorporated
outside India with the permission of Government of India / RBI
15. Provident/ Pension/ Gratuity Fund to the extent they are permitted;
16. Other schemes of Axis Mutual Fund or any other mutual fund subject
to the conditions and limits prescribed by SEBI (MF) Regulations;
17. Schemes of Alternative Investment Funds;
18. Trustee, AMC or Sponsor or their associates may subscribe to Units
under the Scheme(s);
19. Such other category of person(s) permitted to make investments and
as may be specified by the AMC / Trustee from time to time.
Subject to SEBI (Mutual Funds) Regulations, 1996, any application for
subscription of units may be accepted or rejected in the sole and
absolute discretion of the AMC/ Trustee company. The AMC/ Trustee
company may also reject any application for subscription of units if the
application is invalid, incomplete, or if the AMC/ Trustee company for
any other reason does not believe that it would be in the interest of the
scheme or its unitholders to accept such an application.
Email ID & Mobile Number
Investors should provide their own email address and mobile number to
enable Axis AMC for speed and ease of communication in a convenient
and cost-effective manner, and to help prevent fraudulent transactions.
Ultimate Beneficial Ownership details:
SEBI vide its circular no. CIR/MIRSD/2/2013 dated January 24, 2013 further
read with AMFI best practices guidelines circular no. 62/2015-16 dated
September 18, 2015 and other applicable regulations has prescribed
guidelines, for identification of Beneficial Ownership to be followed by
the intermediaries. A ‘Beneficial owner’ is defined as a natural person or
persons who ultimately own, control or influence a client and/or persons
on whose behalf a transaction is being conducted, and includes a
person who exercises ultimate effective control over a legal person or
arrangement. In this regard, all categories of investors (including all new
/ existing investors / unitholders) (except individuals, companies listed on
a stock exchange or majority-owned subsidiary of such companies) are
mandatorily required to provide beneficial ownership details for all
investments. Failing which, fund reserves the right to reject applications /
subscription requests / additional subscription requests (including
switches) / restrict further investments or seek additional information from
investors who have not provided the requisite information on beneficial
ownership. In the event of change in beneficial ownership, investors are
requested to immediately update the details with the Fund/Registrar.
Foreign Account Tax Compliance Act and Common Reporting Standards
requirements:
As a part of various ongoing tax and regulatory developments around
the globe [e.g. information exchange laws such as Foreign Account Tax
Compliance Act (‘FATCA’) and Common Reporting Standard (‘CRS')],
financial institutions like Axis Mutual Fund (‘Axis MF’ or ‘the Fund’) are
being cast with additional investor and counterparty account related
due diligence requirements.
The Central Board of Direct Taxes (CBDT) has notified Rules 114F to 114H,
as part of the Income-tax Rules, 1962, which Rules require Indian
financial institutions such as the Banks, Mutual Funds, etc. to seek
Axis Dynamic Bond Fund 65
additional personal, tax and beneficial owner information and certain
certifications and documentation from all our investors and
counterparties. According to the FATCA-CRS Rules, financial institutions in
India are required to report tax information about account holders that
are tax resident of U.S. and other foreign countries, to the CBDT/ Indian
Government which will, in turn, relay that information to the US Internal
Revenue Service (IRS) and governments of other foreign countries.
These developments have resulted in compliance and reporting
obligations on Financial Institutions like Axis MF. In relevant cases,
information will have to be reported to tax authorities/appointed
agencies. Towards compliance, the Fund may also be required to
provide information to any institutions such as withholding agents for the
purpose of ensuring appropriate withholding from the account or any
proceeds in relation thereto. As may be required by domestic or
overseas regulators/ tax authorities, we may also be constrained to
withhold and pay out any sums from your account or close or suspend
your account(s). Axis MF may also have to comply with other similar laws
as and when applicable.
Prospective investors and Unit holders will therefore be required to
comply with the request of the Fund to furnish such information /
documentation / declarations as and when deemed necessary by the
Investment Manager in accordance with Applicable Laws. In case
prospective investor / Unit holder fails to furnish the relevant information /
documentation / declarations in accordance with Applicable Laws, the
Fund reserves the right to reject the application or redeem the Units held
directly or beneficially and may also require reporting of such accounts
and/or levy of withholding tax on payments made to the Unit holders /
investor and/or take any other action/s in accordance with Applicable
Laws. FATCA-CRS provisions are relevant not only at on-boarding stage
of Unit holders but also throughout the life cycle of investment with the
Fund. Unit holders therefore should intimate to the Fund/the Investment
Manager, any change in their status with respect to any FATCA-CRS
related information / documentation / declarations provided by them
previously, including but not limited to any declarations provided in
respect of residency of the Unit holders for tax purposes promptly, i.e.
within 30 days. Further, if the Fund and/or the Investment Manager is
required by Applicable Laws, to provide information regarding the Fund
and/or the unit holders / investors to any regulatory authority and/or the
Fund Investments and/or income therefrom, and the Fund and/or the
Investment Manager complies with such request in good faith, whether
or not it was in fact enforceable, they shall not be liable to the Unit
holders / investors or to any other party as a result of such compliance or
in connection with such compliance.
Prospective investors / Unit holders should consult their own advisors to
understand the implications of FATCA-CRS provisions/requirements.
Please note that Axis MF will be unable to provide advice to any investor
or counterparty about their tax status or FATCA/CRS classification
relevant to their account. It is the responsibility of the investor or
counterparty to ensure that they record their correct tax status / FATCA/
CRS classification. Investor/ counterparty may seek advice from their tax
advisor in this regard. The onus to provide accurate, adequate and
timely inputs in this regard would be that of the investor or counterparty.
Any changes in earlier information provided must be intimated within 30
days of such change.
Axis Dynamic Bond Fund 66
Investors are requested to provide all the necessary information /
declarations to facilitate compliance, considering India’s commitment
to implement CRS and FATCA under the relevant international treaties.
Implementation of KYC requirements
SEBI vide circular no. MIRSD/SE/Cir-21/2011 dated October 5, 2011 had
mandated (i) Standard KYC form with uniform KYC guidelines and
supporting documents to be used by SEBI registered intermediaries and
(ii) Centralized KYC registration through KYC Registration Agencies (KRAs)
registered with SEBI, w.e.f. January 1, 2012, to bring about uniform KYC
process in the securities market, based on SEBI prescribed norms and the
KYC details are shared with all SEBI registered intermediaries by the KRAs.
Subsequently, SEBI, vide its circular no. MIRSD/Cir-5/2012 dated April 13,
2012 advised various intermediaries to upload KYC data of its existing
customers into the KRA system. While uploading KYC data into the KRA
system, intermediaries were also required to highlight such ‘Missing/Not
Available’ KYC information of a customer, which was either not required
or not taken previously, but was mandatory as per uniform KYC
guidelines issued by SEBI.
In accordance with AMFI best practices guidelines circular no. 62/2015-
16 dated September 18, 2015, it is mandatory for all new/existing
investors to provide additional KYC information such as Income details,
Occupation, association with politically exposed person, net worth etc.
as mentioned in the application form. Subscription requests, without
providing these details, are liable to be rejected. No subscriptions
(whether fresh or additional) and switches pertaining to ‘KYC on-hold’
cases are accepted, unless the investor / unitholder also submits relevant
KYC missing / updated information, which is appropriately updated on
the KRA - KYC.
Further, it is mandatory for existing customers to complete In-Person
Verification process and provide the missing KYC information failing
which their applications / transaction requests for additional subscription
(including switches) is liable to be rejected.
Central KYC Process
Central Registry of Securitisation and Asset Reconstruction and Security
interest of India (‘CERSAI’) has been authorised by Government of India
to act as Central KYC Records Registry under Prevention of Money-
Laundering (Maintenance of Records) Rules, 2005 (‘PMLA Rules’).
SEBI vide its circular no. CIR/MIRSD/66/2016 dated July 21, 2016 and
circular no. CIR/MIRSD/120/2016 dated November 10, 2016 has
prescribed that the Mutual Fund/ AMC should capture KYC information
for sharing with CKYCR as per the KYC template prescribed by CERSAI for
uniform and smooth implementation of CKYC norms for onboarding of
new investors in Mutual Funds.
In accordance with the aforesaid SEBI circulars and AMFI best practice
guidelines for implementation of CKYC norms:
a) Individual investors who have never done KYC process under KRA
regime i.e. a new investor who is new to KRA system and whose KYC
is not registered or verified in the KRA system shall be required to
provide KYC details in the CKYC Form to the Mutual Fund/ AMC.
Axis Dynamic Bond Fund 67
b) Individual investor who fills old KRA KYC Form, should provide
additional / missing information using Supplementary KYC Form or fill
CKYC Form. The said form is available on Axis Mutual Fund website
www.axismf.com.
c) Details of investors shall be uploaded on the system of CKYCR and a
14 digit unique KYC Identification Number (‘KIN’) will be generated
for such customer.
d) New investors, who have completed CKYC process & have obtained
KIN may quote their KIN in the application form instead of submitting
CKYC Form/ Supplementary KYC Form.
e) AMC/ Mutual Fund shall use the KIN of the investor to download the
KYC information from CKYCR system and update its records.
f) If the PAN of investor is not updated on CKYCR system, the investor
should submit self-certified copy of PAN card to the Mutual Fund/
AMC.
The AMC reserves the right to reject transaction application in case the
investor(s) fails to submit information and/or documentation as
mentioned above. In the event of non-compliance of KYC requirements,
the Trustee / AMC reserves the right to freeze the folio of the investor(s).
Submission of Aadhar Number
Pursuant to requirement under Prevention of Money Laundering
(Maintenance of Records) Rules, 2005 as amended from time to time,
proof of possession of Aadhar can be accepted as a valid document for
proof of address or proof of identity of investors, provided the investor
redact or blackout his Aadhar number while submitting the applications
for investments.
The aforesaid guidelines will be subject to change as per the directives
issued by the concerned regulatory/ government authority from time to
time.
For further details refer to SAI.
Who cannot invest 1. Any individual who is a foreign national or any other entity that is not
an Indian resident under the Foreign Exchange Management Act,
1999 (FEMA Act) except where registered with SEBI as a FPI or
otherwise explicitly permitted under FEMA Act/ by RBI/ by any other
applicable authority.
2. Pursuant to RBI A.P. (DIR Series) circular no. 14 dated September 16,
2003, Overseas Corporate Bodies (OCBs) cannot invest in Mutual
Funds.
3. NRIs residing in Non-Compliant Countries and Territories (NCCTs) as
determined by the Financial Action Task Force (FATF), from time to
time.
4. U.S. Persons and Residents of Canada as defined under the
applicable laws of U.S. and Canada except the following:
a. subscriptions received by way of lump sum / switches /systematic
transactions received from Non-resident Indians (NRIs) / Persons
of Indian origin (PIO) / Overseas Citizen of India (OCI) who at the
time of such investment, are present in India and
b. FPIs
5. Such other persons as may be specified by AMC from time to time.
These investors need to submit a physical transaction request along
with such documents as may be prescribed by the AMC/ the
Trustee/ the Fund from time to time.
Axis Dynamic Bond Fund 68
The AMC reserves the right to put the transaction requests on
hold/reject the transaction request/reverse allotted units, as the case
may be, as and when identified by the AMC, which are not in
compliance with the terms and conditions notified in this regard.
The Trustee / the AMC /the Fund reserve the right to change/ modify
the above provisions at a later date.
Where can you
submit the filled up
applications.
Not Applicable
How to Apply Please refer to the SAI and Application form for the instructions.
Listing The Scheme is an open ended Scheme under which sale and
repurchase will be made on a continuous basis and therefore listing on
stock exchanges is not envisaged. However, the Trustee reserves the
right to list the units as and when considered necessary in the interest of
Unit holders of the Fund.
Special Products /
facilities available
during the NFO
Not Applicable
The policy regarding
reissue of
repurchased units,
including the
maximum extent, the
manner of reissue,
the entity (the
scheme or the AMC)
involved in the same.
Units once redeemed will be extinguished and will not be reissued.
Restrictions, if any,
on the right to freely
retain or dispose of
units being offered.
Pledge of Units
The Units under the Scheme (subject to completion of lock in period, if
any) may be offered as security by way of a pledge / charge in favour
of scheduled banks, financial institutions, non-banking finance
companies (NBFCs), or any other person. The AMC and / or the ISC will
note and record such Pledged Units. The AMC shall mark a lien only
upon receiving the duly completed form and documents as it may
require. Disbursement of such loans will be at the entire discretion of the
bank / financial institution / NBFC or any other person concerned and
the Mutual Fund assumes no responsibility thereof.
The Pledger will not be able to redeem Units that are pledged until the
entity to which the Units are pledged provides written authorisation to
the Mutual Fund that the pledge / lien charge may be removed. As long
as Units are pledged, the Pledgee will have complete authority to
redeem such Units. Dividends declared on Units under lien will be paid /
re-invested to the credit of the Unit Holder and not the lien holder unless
specified otherwise in the lien letter.
Lien on Units
On an ongoing basis, when existing and new Investors make
Subscriptions, a lien on unit allotted will be created and such unit shall
not be available for redemption until the payment proceeds are realised
by the Scheme. In case a unit holder redeems unit soon after making
purchases, the redemption cheque will not be dispatched until sufficient
time has elapsed to provide reasonable assurance that cheques or
drafts for unit purchased have been cleared.
Axis Dynamic Bond Fund 69
In case the cheque / draft is dishonoured by the bank, the transaction
shall be reversed and the unit allotted earlier shall be cancelled, and a
fresh Account Statement / Confirmation slip shall be dispatched to the
Unit holder. For NRIs, the Scheme may mark a lien on unit in case
documents which need to be submitted are not given in addition to the
application form and before the submission of the redemption request.
However, the AMC reserves the right to change operational guidelines
for lien on unit from time to time.
Suspension/Restriction on Redemption of Units of the Scheme
Subject to the approval of the Boards of the AMC and of the Trustee and
subject also to necessary communication of the same to SEBI, the
redemption of / switch-out of Units of Scheme, may be temporarily
suspended/ restricted. In accordance with SEBI circular no.
SEBI/HO/IMD/DF2/CIR/P/2016/57 dated May 31, 2016 and subject to
prevailing regulations, restriction on/suspension of redemptions / switch-
out of Units of the Scheme, may be imposed when there are
circumstances leading to systemic crisis or event that severely constricts
market liquidity or the efficient functioning of markets such as:
a) Liquidity issues: when market at large becomes illiquid affecting
almost all securities rather than any issuer specific security;
b) Market failures, exchange closures: when markets are affected by
unexpected events which impact the functioning of exchanges or
the regular course of transactions. Such unexpected events could
also be related to political, economic, military, monetary or other
emergencies;
c) Operational issues: when exceptional circumstances are caused by
force majeure, unpredictable operational problems and technical
failures (e.g. a black out).
Restriction on / suspension of redemption of Units of the Scheme may be
imposed for a specified period of time not exceeding 10 working days in
any 90 days period.
When restriction on / suspension of redemption of Units of the Scheme is
imposed, the following procedure shall be applied
i. No redemption / switch-out requests upto Rs. 2 lakhs shall be subject
to such restriction.
ii. Where redemption / switch-out requests are above Rs. 2 lakhs, the
AMC shall redeem the first Rs. 2 lakhs without such restriction and
remaining part over and above Rs. 2 lakhs shall be subject to such
restriction.
In addition to the above, the AMC / Trustee may restrict / suspend
redemptions / switch-out of Units of the Scheme pursuant to direction/
approval of SEBI.
In case of any of the above eventualities, the general time limits for
processing requests for redemption of Units will not be applicable.
Also refer to the paragraph ‘Suspension of Purchase and Redemption of
Units’ in the Statement of Additional Information.
Third Party Payment
Avoidance and
additional
documents /
Please refer SAI for details.
Axis Dynamic Bond Fund 70
declaration required
Cash Investments in
mutual funds
In order to help enhance the reach of mutual fund products amongst
small investors, who may not be tax payers and may not have PAN/bank
accounts, such as farmers, small traders/businessmen/workers, SEBI has
permitted receipt of cash transactions for fresh purchases/ additional
purchases to the extent of Rs.50,000/- per investor, per mutual fund, per
financial year subject to:
i. compliance with Prevention of Money Laundering Act, 2002 and Rules
framed there under; the SEBI Circular(s) on Anti Money Laundering
(AML) and other applicable Anti Money Laundering Rules, Regulations
and Guidelines; and
ii. sufficient systems and procedures in place.
However, payment towards redemptions, dividend, etc. with respect to
aforementioned investments shall be paid only through banking
channel.
The Fund/ AMC is currently in the process of setting up appropriate
systems and procedures for the said purpose. Appropriate notice shall
be displayed on its website viz. as well as at the Investor Service Centres,
once the facility is made available to the investors.
B. ONGOING OFFER DETAILS
Default Plan/ Option The investors may refer to the paragraph under New Fund offer Section
for applicability of Direct Plan/ Regular Plan under different scenario.
Ongoing Offer
Period
This is the date from
which the scheme
will reopen for
subscriptions/redem
ptions after the
closure of the NFO
period.
The Scheme has reopened for continuous subscription and redemption
from May 02, 2011.
Ongoing price for
subscription
(purchase)/switch-in
(from other
schemes/plans of
the mutual fund) by
investors.
This is the price you
need to pay for
purchase/switch-in.
At the Applicable NAV
SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30,
2009 has decided that there shall be no entry Load for all Mutual Fund
Schemes. Hence, no entry load is levied for subscription transactions by
the Scheme.
Methodology of calculating subscription price:
Subscription Price = Applicable NAV*(1+Entry Load, if any)
Example: If the Applicable NAV is Rs. 10, Entry Load is NIL then the
subscription price will be:
= Rs. 10* (1+NIL)
= Rs. 10
Ongoing price for
redemption (sale)
/switch outs (to
other
schemes/plans of
the Mutual Fund) by
investors.
This is the price you
will receive for
At the Applicable NAV subject to prevailing Exit Load.
Ongoing price for redemption /Switch out (to other Schemes/Plans of the
Mutual Fund) is price which a Unit holder will receive for
redemption/Switch-outs. During the continuous offer of the Scheme, the
Unit holder can redeem the Units at Applicable NAV, subject to payment
of Exit Load, if any. It will be calculated as follows:
Methodology of calculating repurchase price:
Redemption Price = Applicable NAV*(1-Exit Load, if any)
Axis Dynamic Bond Fund 71
redemptions/switch
outs.
Example: If the Applicable NAV is Rs. 10, Exit Load is 2% then redemption
price will be:
= Rs. 10* (1-0.02)
= Rs. 9.80
Investors/Unit holders should note that the AMC/Trustee has right to
modify existing Load structure and to introduce Loads subject to a
maximum limits prescribed under the SEBI Regulations.
Any change in Load structure will be effective on prospective basis and
will not affect the existing Unit holder in any manner.
However, the Mutual Fund will ensure that the Redemption Price will not
be lower than 93% of the Applicable NAV provided that the difference
between the Redemption Price and the Subscription /Purchase Price at
any point in time shall not exceed the permitted limit as prescribed by
SEBI from time to time, which is currently 7% calculated on the
Subscription/ Purchase Price. The Purchase Price shall be at applicable
NAV.
Cut off timing for
subscriptions/
redemptions/
switches
This is the time
before which your
application
(complete in all
respects) should
reach the official
points of
acceptance.
Subscriptions/Purchases including Switch - ins:
The following cut-off timings shall be observed by the Mutual Fund in
respect of purchase of units of the Scheme with amount less than Rs. 2
lakhs and the following NAVs shall be applied for such purchase:
1. where the application is received upto 3.00 pm with a local cheque
or demand draft payable at par at the place where it is received –
closing NAV of the day of receipt of application;
2. where the application is received after 3.00 pm with a local cheque
or demand draft payable at par at the place where it is received –
closing NAV of the next Business Day;
3. where the application is received with an outstation cheque or
demand draft which is not payable at par at the place where it is
received – closing NAV of day on which the cheque or demand
draft is credited.
B. In respect of purchase/ Switch-in application received before the cut-
off timing for units with amount equal to or more than Rs. 2 lakhs, the
closing NAV of the business day on which the funds are available for
utilization i.e. upto 3.00 pm, shall be applicable, irrespective of time of
receipt of application
For allotment of units in respect of purchase in the Scheme under Pt. (B)
above, it shall be ensured that:
i. Application is received before the applicable cut-off time
ii. Funds for the entire amount of subscription/purchase as per the
application are credited to the bank account of the Scheme before
the cutoff time.
iii. The funds are available for utilization before the cut-off time without
availing any credit facility whether intra-day or otherwise, by the
Scheme.
For allotment of units in respect of switch-in to the Scheme under Pt. (B)
above from other schemes, it shall be ensured that:
i. Application for switch-in is received before the applicable cut-off
time.
ii. Funds for the entire amount of subscription/purchase as per the
switch-in request are credited to the bank account of the Scheme
before the cut-off time.
Axis Dynamic Bond Fund 72
iii. The funds are available for utilization before the cut-off time without
availing any credit facility whether intra-day or otherwise, by the
Scheme.
Redemptions including Switch - outs:
The following cut-off timings shall be observed by the Mutual Fund in
respect of Repurchase of units:
a. where the application received upto 3.00 pm – closing NAV of the
day of receipt of application; and
b. an application received after 3.00 pm – closing NAV of the next
Business Day.
The above mentioned cut off timing shall also be applicable to
transactions through the online trading platform.
In case of Transaction through Stock Exchange Infrastructure, the Date of
Acceptance will be reckoned as per the date & time; the transaction is
entered in stock exchange’s infrastructure for which a system generated
confirmation slip will be issued to the investor.
Where can the
applications for
purchase/redempti
on switches be
submitted?
Refer Back Cover Page
Minimum amount for
purchase/redempti
on/switches
Minimum amount for purchase/Switch in
Rs. 5,000 and in multiples of Re 1/- thereafter
Minimum Additional Purchase / Switch in Amount
Rs.100 and in multiples of Re. 1/- thereafter
Minimum Redemption Amount/Switch Out
There will be no minimum redemption criterion. The Redemption / Switch-
out would be permitted to the extent of credit balance in the Unit
holder’s account of the Plan(s) / Option(s) of the Scheme (subject to
completion of Lock-in period or release of pledge / lien or other
encumbrances). The Redemption / Switch-out request can be made by
specifying the rupee amount or by specifying the number of Units of the
respective Plan(s) / Option(s) to be redeemed. In case a Redemption /
Switch-out request received is for both, a specified rupee amount and a
specified number of Units of the respective Plan(s)/ Option(s), the
specified number of Units will be considered the definitive request. In
case the value / number of available units held in the Unit holder’s folio /
account under the Plan / Option of the Scheme is less than the amount /
number of units specified in the redemption / switch-out request, then
the transaction shall be treated as an all units redemption and the entire
balance of available Units in the folio / account of the Unit holder shall
be redeemed.
In case of Units held in dematerialized mode, the Unit Holder can give a
request for Redemption only in number of Units which can be fractional
units also. Depository participants of registered Depositories can process
only redemption request of units held in demat mode.
The AMC/ Trustee reserves the right to change/ modify the terms of
minimum redemption amount/switch-out.
Minimum balance
to be maintained
Currently, there is no minimum balance requirement.
Axis Dynamic Bond Fund 73
and consequences
of non-
maintenance.
However, the AMC / Trustee may decide to introduce minimum balance
requirements later, if they so deem fit. In such case, in the event of non-
maintenance of minimum balance for any particular situations, the Unit
may be compulsorily redeemed.
In case balance in the account of the Unit holder does not cover the
amount of Redemption request, then the Mutual Fund is authorized to
redeem all the Unit in the folio and send the Redemption proceeds to
the Unit holder.
Special Products
available
SYSTEMATIC INVESTMENT PLAN (SIP)
Unit holder can enroll for the SIP facility by submitting duly completed
Enrolment Form at the Official Point(s) of Acceptance. An Investor shall
have the option of choosing any date of the Month (other than 29th, 30th
and 31st) as his SIP date. Minimum amount and minimum installments for
monthly and yearly frequency under SIP Facility is as follows:
Frequency
under SIP Facility
Minimum
Installments
Minimum SIP amount
Monthly 6 Installments Rs. 1,000/- and in multiple of Re.
1/-
Yearly 3 Installments Rs. 12,000/- and in multiple of Re.
1/-
If the SIP period is not specified by the unit holder then the SIP enrolment
will be deemed to be for perpetuity and processed accordingly.
In case of SIP investments, where the entire installment amount is not
available, the SIP for that month would be rejected. Allocation to a
particular scheme or pro–rata allocation to schemes will not be carried
out.
i. SIP through post-dated cheques
The date of the first cheque shall be the same as the date of the
application while the remaining cheques shall be post dated cheques
which shall be dated uniformly. Investors can invest in SIP by providing
post-dated cheques to Official Point(s) of Acceptance. An Investor is
eligible to issue only one cheque for each month in the same SIP
enrolment form. All SIP cheques should be of the same amount and
same date option. Cheques should be drawn in favour of the Fund and
“A/c Payee only”. A Letter will be forwarded to the Investor on successful
registration of SIP. The Post Dated cheques will be presented on the
dates mentioned on the cheque and subject to realization of the
cheque.
ii. SIP through National Automated Clearing House (NACH) Platform
/Direct Debit facility
‘Investors / Unit holders may enroll for SIP Direct Debit Facility available
with specified Banks / Branches. In order to enroll for SIP Direct Debit
Facility, an Investor must fill up the Application Form for SIP Direct Debit
facility.
In case of SIP with payment mode as Direct Debit/Standing Instructions,
Investors shall be required to submit a cancelled cheque or a photocopy
of a cheque of the bank account for which the debit mandate is
provided. The facility will also be available through standing
instructions/direct debit given by the investor (with all payment
installments being made through standing instructions/direct debit).
However, the SIP facility with direct debit will be available through
selected Banks. The Asset Management Company reserves the right to
Axis Dynamic Bond Fund 74
add/modify/delete from the list of banks through whom such facility will
be available to the investors.
The unit holders can also make payment of SIP instalments through NACH
facility. NACH is a centralized system, launched by National Payments
Corporation of India (NPCI) with an aim to consolidate multiple NACH
mandates. This facility will enable the unit holders of the Fund to make SIP
investments through NACH by filling up the SIP Registration cum mandate
form. A Unique number will be allotted to every mandate registered
under NACH called as Unique Mandate Reference Number (“UMRN”)
which can be used for SIP transactions. The NACH facility shall be
available subject to terms and conditions contained in the SIP
registration Mandate Form and as prescribed by NPCI from time to time.
All SIP cheques/payment instructions should be of the same amount and
same date (excluding first cheque). However, there should be a gap of
30 days between first SIP Installment and the second installment in case
of SIP.
Investors will have the right to discontinue the SIP facility at any time by
sending a written request to any of the Official Point(s) of Acceptance.
Notice of such discontinuance should be received at least 20 days prior
to the due date of the next debit. On receipt of such request, the SIP
facility will be terminated. It is clarified that if the Fund fails to get the
proceeds from three Installments out of a continuous series of Installments
submitted at the time of initiating a SIP, the SIP is deemed as
discontinued.
Units will be allotted at the Applicable NAV of the respective dates on
which the investments are sought to be made. In case the date falls on a
Non-business day, the immediate next Business Day will be considered for
this purpose.
An extension of an existing SIP will be treated as a new SIP on the date of
such application, and all the above conditions need to be met with.
The Load structure prevailing at the time of submission of the SIP
application (whether fresh or extension) will apply for all the Installments
indicated in such application.
The AMC has the authority to make available SIP by way of a salary
savings scheme for a group of employees through an arrangement with
their employers.
For applicable Load on Purchases through SIP, please refer paragraph
‘Load Structure’ given in the document.
The AMC reserves the right to change / modify Load structure and other
terms and conditions under the SIP prospectively at a future date. Please
refer to the SIP Enrolment Form for terms & conditions before enrolment.
Systematic Investment Plan (SIP) Switch Facility:
Unit holders having registered SIP in the specified scheme(s) of the Fund
can use SIP Switch Facility to terminate SIP in the existing scheme and
initiate SIP in another specified scheme.
SIP Switch Facility shall be available to unit holders under all open ended
schemes of the Fund except for Axis Liquid Fund, Axis Overnight Fund,
Axis Dynamic Bond Fund 75
Axis Children’s Gift Fund and Exchange Traded Funds.
The terms and conditions of SIP Switch Facility are as below:
1. SIP Switch Facility can be availed by unit holders only after
completion of minimum installments specified for SIP registration in
the Switch-out (existing) scheme.
2. SIP Switch Facility will be considered as termination of SIP in Switch-
out scheme and subscription of SIP in Switch-in scheme.
3. SIP in Switch-in scheme will be subject to the terms of offering
specified in the SID of Switch-in scheme.
4. SIP registration end date should ensure compliance of minimum SIP
installments prescribed in Switch-in scheme.
5. SIP Switch Facility is available for changing SIP investment mandate
from one scheme to another specified scheme. The same is also
available for switch between Plans/Options offered under same
scheme. Further, the amount of installment, date and frequency of
SIP and SIP end date of Switch-out scheme shall remain same as
under Switch-in scheme.
6. The allotment of units of Switch-in scheme shall be in the same folio.
7. SIP Switch Facility is not available for SIP subscribed with post-dated
cheques.
8. Investors will have the option of changing the distributor code from
direct to regular/ regular to direct.
9. Unit holder must submit request for SIP Switch at least 21 days before
the SIP due date.
Multiple SIPs Registration Mandate
Unitholder can enroll multiple SIPs in different schemes by submitting one
single application form/ payment instruction. All other terms and
conditions applicable to SIP Facility shall be applicable for the facility.
Systematic Investment Plan (SIP) Top-Up Facility
The Facility enables unitholders to increase the SIP installment amount at
pre-defined intervals by a fixed amount or anytime by a specified
amount as per the request (in case of ‘As & When frequency’).
The terms and conditions of the Facility are as follows:
1. Top-Up Amount: The minimum amount of Top-Up shall be Rs. 500/-
and in multiple of Re. 1/- for all schemes. In case of discrepancy in
the Top-Up amount, SIP will be registered without Top-Up Facility.
2. Top-Up facility is available for SIP registered with Monthly frequency
only.
3. Top-Up Frequency: Top-Up frequency is available only on ‘Half
Yearly’, ‘Yearly’ and ‘As & When frequency’. In case the Top-Up
frequency is not specified / is not legible, the default frequency will
be ‘Yearly’, provided Top-Up amount is mentioned clearly.
4. The Facility shall be available for SIP Investments through Electronic
Debit arrangement/ NACH (National Automated Clearing House) or
as may be specified by AMC.
5. The Facility can be availed by filling up prescribed form at time of SIP
Facility enrolment. Existing SIPs cannot be converted into the Facility.
6. The application form for availing the Facility should be submitted 21
days before the first SIP installment date.
7. The gap between SIP registration and first Top-Up request under 'As &
When' frequency and two instructions under ‘As & When’ frequency
should be at least 3 months.
8. The Facility shall continue till the end date of the SIP. The Facility can
Axis Dynamic Bond Fund 76
be discontinued only by cancelling the SIP.
All other terms and conditions applicable to SIP Facility shall be
applicable for the Facility.
Systematic Investment Plan (SIP) Pause facility:
Investors shall have an option to temporarily pause the SIP installments for
a specified period of time. Upon expiry of the specified period, the SIP
installments would re-start automatically.
The terms and conditions of SIP Pause facility are as follows:
1. Under this Facility, investor has an option to temporarily pause their
registered Monthly SIP facility for a period of three months by
submitting prescribed application form at any of the Official Points of
Acceptance of Axis Mutual Fund or by submitting application in other
modes made available by AMC.
2. The SIP Pause facility can be availed by investor only two times during
the entire tenure of SIP.
3. The valid application to avail the Facility should be submitted to AMC
at least 10 calendar days prior to the next Monthly SIP installment
date (i.e. excluding the request date and the next SIP installment
date). Investor cannot cancel the SIP Pause facility once requested.
4. The SIP Pause facility is only available under Monthly frequency. SIP
pause facility is available only for investors with instalment amounts
equal to or greater than SIP’s greater than `Rs. 1,000/-SIP Pause
facility can only be availed by investors who has completed 6 valid
SIP installments.
5. The SIP shall restart automatically from the immediate next eligible
installment after the completion of specified pause period.
6. This facility is not available for the SIPs sourced/registered through MF
Utilities India Pvt. Ltd. (“MFUI”), Stock Exchange Platforms of NSE & BSE
and Channel partner platforms, as for such SIPs, the SIP mandates are
registered by respective entities or for SIPs which are registered by
investors as Standing Instructions with their Banks.
7. SIP Pause facility is not available for investors availing iPlus SIP Facility
or Flex SIP facilities. For Top-up SIP facility, the top-up frequency would
remain unchanged even if there is a pause in SIP instalment.
8. In case of multiple SIPs registered in a scheme, SIP Pause facility will
be made applicable only for those SIP instalments whose SIP date,
frequency, amount and Plan is specified clearly in the form.
AMC/Fund reserves the right to amend the terms and conditions of the
SIP Pause facility and/or withdraw the said facility.
PURCHASE/REDEMPTION OF UNITS THROUGH STOCK EXCHANGE
INFRASTRUCTURE
Investors can subscribe to the Units of Axis Mutual Fund through the
mutual fund trading platforms of the Bombay Stock Exchange (“BSE”),
National Stock Exchange (“NSE”) and Indian Commodity Exchange Ltd.
(‘ICEX’) – with NSDL and CDSL as depositories for such units of the mutual
fund.
NSE has introduced Mutual Fund Service System (“MFSS”) Platform and
BSE has introduced BSE StAR MF Platform and ICEX has introduced
ICEXMF platform (Stock Exchange Platform).
The following are the salient features of the MFSS / BSE StAR MF Platform /
ICEXMF:
Axis Dynamic Bond Fund 77
1. The facility i.e. purchase/redemption/SIP (Systematic Investment Plan)
is available for both existing and new investors.
2. The Investors will be eligible to purchase/redeem units of the Scheme.
The facility can be availed by both, investors under Direct Plan offered
by the schemes and investors investing through Distributors under the
Regular Plan offered by the schemes
4. List of additional Official Point of Acceptance
The following shall be the additional Official Point of Acceptance of
Transactions for the Scheme:
All trading members of BSE, NSE & ICEX who are registered with AMFI
as Mutual Fund Distributor and also registered with BSE &/ or NSE &/or
ICEX as Participants ("AMFI registered stock exchange brokers") will be
eligible to offer this facility to investors and shall be treated as Official
Point of Acceptance.
Units of mutual fund schemes shall be permitted to be transacted
through clearing members of the registered Stock Exchanges. Further,
the Depository Participants of registered Depositories are permitted to
process only redemption request of units held in demat form.
Clearing members and Depository participants will be considered as
Official Points of Acceptance (OPA) of Axis Mutual Fund and
conditions stipulated in SEBI circular no. SEBI/IMD/CIR
No.11/183204/2009 dated November 13, 2009 for stock brokers viz.
AMFI /NISM certification, code of conduct prescribed by SEBI for
Intermediaries of Mutual Fund, shall be applicable for such Clearing
members and Depository participants as well.
5. The units of the Scheme are not listed on BSE, NSE & ICEX and the
same cannot be traded on the Stock Exchange. The window for
purchase/redemption of units on MFSS/ BSE StAR / ICEXMF Platform
will be available between 9 a.m. and 3 p.m. or such other timings as
may be decided.
6. Transactions only in demat mode will be currently permitted through
MFSS / BSE StAR MF / ICEXMF Platform.
7. Investors will be able to purchase/redeem units of the Scheme in the
following manner:
(i) Investors shall receive redemption amount (if units are redeemed)
and units (if units are purchased) through broker/ clearing
member's pool account. Axis AMC/Axis Mutual Fund shall pay
proceeds to the broker/clearing member (in case of redemption)
and broker/clearing member in turn to the respective investor and
similarly units shall be credited by the AMC/ Mutual Fund into
broker/clearing member's pool account (in case of purchase) and
broker/clearing member in turn shall credit the units to the
respective investor's demat account.
(ii) Payment of redemption proceeds to the broker/clearing members
by AMC/Mutual Fund shall discharge AMC/Mutual Fund of its
obligation of payment to individual investor. Similarly, in case of
purchase of units, crediting units into broker/clearing member pool
account shall discharge AMC/Mutual Fund of its obligation to allot
units to individual investor.
8. Applications for purchase/redemption of units which are incomplete
/invalid are liable to be rejected.
9. For all the transactions done through these platforms, separate Folio.
No. shall be allotted to the existing and the new investors. The bank
Axis Dynamic Bond Fund 78
a/c number, address, nomination details etc. shall be the same as
per the Demat account of the investor. In case of non-financial
requests/applications such as change of address, change of bank
details, etc. for units held in demat mode investors should approach
the respective Depository Participant(s) and OPAT of AMC for units
held in physical mode.
10. Investors will have to comply with Know Your Customer (KYC) norms
as prescribed by BSE/NSE/CDSL/ NSDL/ICEX and Axis Mutual Fund to
participate in this facility.
11. Investors should get in touch with Investor Service Centres (ISCs) of
Axis Mutual Fund for further details.
Transaction through Stock Exchange infrastructure using services of
Distributor/ SEBI Registered Investment Advisor:
SEBI circular no. CIR/MRD/DSA/32/2013 dated October 4, 2013 and
circular no. CIR/MRD/DSA/33/2014 dated December 9, 2014, has
permitted Mutual Fund Distributors (“MF Distributors”) and SEBI circular no.
SEBI/HO/MRD/DSA/CIR/P/2016/113 dated October 19, 2016 permitted
SEBI Registered Investment Advisors (“RIAs”) to use recognized Stock
Exchange infrastructure to purchase/redeem units directly from Mutual
Fund/AMC on behalf of their clients.
MF Distributor registered with AMFI or RIAs, will be eligible to use NMF-II
platform of NSE (in addition to other intermediaries) and / or of BSE StAR
MF platform of BSE and/ or ICEXMF platform of ICEX to purchase and
redeem units of schemes of the Fund.
In addition to the guidelines specified for transacting through MFSS/BSE
StAR MF / ICEXMF Platform above, following guidelines shall be
applicable for transactions executed through MF Distributors/ RIAs on
NMF-II / BSE StAR MF / ICEXMF Platform:
1. MF distributors/RIAs shall not handle pay out/pay in of funds as well as
units on behalf of investor. Pay in will be directly received by
recognized clearing corporation and payout will be directly made to
investor account. In the same manner, units shall be credited and
debited directly from the demat account of investors.
2. Transactions only in physical (non-demat) transactions will be
permitted through NMF-II / BSE StAR MF / ICEXMF Platform.
The facility of transacting in mutual fund schemes through stock
exchange infrastructure is available subject to such operating guidelines,
terms and conditions as may be prescribed by the respective Stock
Exchanges from time to time.
SYSTEMATIC TRANSFER PLAN (STP)
Investors can opt for the Systematic Transfer Plan by investing a lumpsum
amount in one scheme of the Fund and providing a standing instruction
to transfer sums at following intervals into any other scheme (as may be
permitted by the Scheme Information Document of the respective
schemes) of the Fund.
STP
Frequency Cycle Date
Minimum
Amount* (in Rs.)
Minimum
Installment
Daily Monday To Friday 1,000/- 6
Weekly Monday To Friday 1,000/- 6
Fortnightly Alternate 1,000/- 6
Axis Dynamic Bond Fund 79
Wednesday
Monthly 1st, 7th, 10th, 15th or 25th 1,000/- 6
Quarterly 1st, 7th, 10th, 15th or 25th 3,000/- 2
In case Day of Transfer has not been indicated under Daily and Weekly
frequencies, Wednesday shall be treated as Default day. Further, in case
of Monthly and Quarterly Frequency, if the STP date and Frequency has
not been indicated, Monthly frequency shall be treated as Default
frequency and 10th shall be treated as Default Date.
In case none of the frequencies have been selected then Monthly
frequency shall be treated as Default frequency and 10th shall be treated
as Default Date.
Investors could also opt for STP from an existing account by quoting their
account / folio number. A minimum period of 7 days shall be required for
registration under STP. Units will be allotted/redeemed at the applicable
NAV of the respective dates of the Scheme in which such investments/
withdrawals are sought from the Scheme.
The requests for discontinuation of STP shall be subject to an advance
notice of 15 days before the next due date for STP and it will terminate
automatically if all Units are liquidated or withdrawn from the account or
upon the Funds’ receipt of notification of death or incapacity of the Unit
holder.
The AMC reserves the right to introduce STPs at any other frequencies or
on any other dates as the AMC may feel appropriate from time to time.
In the event that such a day is a Holiday, the transfer would be affected
on the next Business Day.
Further, in case of a last STP, where the balance amount in a folio is less
than the STP amount, the entire amount will be transferred to the
transferee scheme.
In case there is a broker code change/the investor is desirous of being a
direct investor with the mutual fund, the investment will cease to be a
part of the facility. Investors may note that investments under such
facilities would be based on advice from the distributor /Financial advisor
and the Asset Management Company acts purely in capacity as a
facilitator for such transactions. The distributor(s) may choose to
modify/change or discontinue the above stated facility. In such a case
the investors may continue their investment with the AMC/any other
distributor.
For further details/clarifications investors may contact the distributor(s) or
the ISCs of the AMC.
Note:
(a) In case of Systematic Investment Plan (SIP) / Systematic Transfer Plan
(STP) etc. registered prior to January 1, 2013 without any distributor
code under the Axis Dynamic Bond Fund (Regular Plan), installments
falling on or after January 1, 2013 will automatically be processed
under the Direct Plan.
(b) Investors who had registered for Systematic Investment Plan facility
prior to January 1, 2013 with distributor code and wish to invest their
future installments into the Direct Plan, shall make a written request
to the Fund in this behalf. The Fund will take at least 15 days to
Axis Dynamic Bond Fund 80
process such requests. Intervening installments will continue in the
Axis Dynamic Bond Fund (Regular Plan Plan).
In case of (a) and (b) above, the terms and conditions of the existing
registered enrolment shall continue to apply.
In case of Systematic Transfer Facilities (registered with Distributor Code)
were registered under the Axis Dynamic Bond Fund (Regular Plan) prior to
January 1, 2013 the future installments shall continue under the Regular
Plan.
In case such investors wish to invest under the Direct Plan through these
facilities, they would have to cancel their existing enrolments and register
afresh for such facilities.
CAPITAL APPRECIATION SYSTEMATIC TRANSFER PLAN (CAPSTP)
Under this facility, the investors can opt for the Systematic Transfer Plan by
investing a lump sum amount in one scheme of the Fund and providing a
standing instruction to transfer capital appreciation at regular intervals -
Weekly, Monthly and Quarterly into any other scheme (as may be
permitted by the Scheme Information Document of the respective
schemes) of Axis Mutual Fund.
The capital appreciation, if any, will be calculated from the enrolment
date of the CapSTP under the folio, till the first transfer date. Subsequent
capital appreciation, if any, will be the capital appreciation between
the previous CapSTP date (where CapSTP has been processed and paid)
and the next CapSTP date
There are three options available under CapSTP viz. Weekly, Monthly and
Quarterly option, the details of which are given below:
CapSTP
Frequency Cycle Date
Minimum
Amount* (in
Rs.)
Minimum
Installment
Weekly Monday To Friday 500/- 6
Monthly 1st, 7th, 10th, 15th or 25th 500/- 6
Quarterly 1st, 7th, 10th, 15th or 25th 1,000/- 2
The provision of ‘Minimum Redemption Amount’ as specified in the
Scheme Information Document of the respective designated Transferor
Schemes and ‘Minimum Application Amount’ specified in the Scheme
Information Document of the respective designated Transferee Schemes
will not be applicable for CapSTP.
Unit holders are required to fill in either the number of installments or the
enrolment period in the enrolment form, failing which the form is liable to
be rejected.
In case, the Enrolment Period has been filled, but the CapSTP Date
and/or Frequency (Monthly/ Quarterly) has not been indicated, Monthly
frequency shall be treated as Default frequency and 10th shall be treated
as Default Date. In case of weekly frequency, Wednesday shall be
treated as Default day.
In case none of the frequency is selected then Monthly frequency shall
be treated as Default frequency and 10th shall be treated as Default
Date.
Axis Dynamic Bond Fund 81
The application for CapSTP enrolment - Monthly & Quarterly frequency
should be submitted at least 7 working days and not more than 90 days
before the desired commencement date.
In respect of CapSTP, the Load Structure prevalent at the time of
enrolment shall govern the investors during the tenure of the CapSTP.
A minimum period of 7 working days shall be required for registration
under CapSTP. Units will be allotted/redeemed at the applicable NAV (of
the respective date(s)) of the Scheme from/to which such
withdrawals/investments are being made.
The AMC reserves the right to introduce CapSTPs at any other
frequencies or on any other dates as the AMC may feel appropriate
from time to time. In the event that such a day is a Holiday, the transfer
would be affected on the next Business Day.
The requests for discontinuation of CapSTP shall be subject to an
advance notice of 15 days before the next due date for CapSTP.
CapSTP will terminate automatically if all Units are liquidated or
withdrawn from the account or upon the Funds’ receipt of notification of
death or incapacity of the Unit holder. Further, in case where the
balance amount in a folio is less than the CapSTP amount, the entire
amount will be transferred to the transferee scheme.
FLEX - SYSTEMATIC INVESTMENT PLAN/ SYSTEMATIC TRANSFER PLAN ("Flex
SIP/ Flex STP")
Terms and conditions of Flex SIP/STP are as follows:
1. Flex SIP is a facility wherein an investor can opt to invest variable
amount linked to the value of his investments in any of the existing
open ended scheme(s) of Axis Mutual Fund (“Investee scheme”), on
pre-determined date. This facility allows investors to take advantage
of market movements by investing higher when the markets are low
and vice-versa.
2. Flex STP is a facility wherein an investor under any of the existing open
ended scheme(s) of Axis Mutual Fund can opt to transfer variable
amount linked to value of his investments, on predetermined date
from designated open-ended Scheme(s) of Axis Mutual Fund
("Transferor Scheme") to the Growth Option of designated open-
ended Scheme(s) ("Transferee Scheme").
3. A single Flex SIP/STP Enrolment Form can be filled for investment/
transfer into one Scheme/Plan/Option only.
4. In case of valid enrolment forms received, indicating choice of
option other than the growth option in the Investee / Transferee
Scheme, it will be deemed as the growth option in the Investee /
Transferee Scheme and processed accordingly.
5. In case of Flex STP, unit holders' details and mode of holding (single,
jointly, anyone or survivor) in the Transferee Scheme will be as per the
existing folio number of the Transferor Scheme. Units will be allotted
under the same folio number. Unitholders' name should match with
the details in the existing folio number, failing which the enrolment
form is liable to be rejected.
6. The minimum number of installments for enrollment and Amount
under Flex STP:
Frequency under Flex-STP Minimum Minimum Flex-STP
Axis Dynamic Bond Fund 82
Facility Installments amount* (Rs.)
Monthly (1st, 7th,10th,15th
or 25th)
6 Rs. 1,000/- and in
multiple of Rs. 1/-
Quarterly (1st, 7th,10th,15th
or 25th)
2 Rs. 3,000/- and in
multiple of Rs. 1/-
7. The minimum number of installments for enrollment and Amount
under Flex SIP:
Frequency under Flex-
SIP Facility
Minimum
Installments
Minimum Flex-SIP
amount (Rs.)
Monthly 12 Installments
for all schemes
Rs. 1,000/- and in
multiple of Rs. 1/-
Yearly 3 Installments
for all schemes
Rs. 12,000/- and in
multiple of Rs. 1/-
There is no maximum duration for Flex SIP/ STP enrolment.
8. Calculation of Flex STP
Under the Flex STP – (as per the Frequency) unit holders will be eligible
to transfer fixed amount to be transferred per installment OR the
amount as determined by the following formula whichever is higher:
Fixed installment amount or (number of installments including the
current installment X fixed amount to be transferred per installment) -
market value of the investments through Flex STP in the Transferee
Scheme on the date of transfer whichever is Higher
In case of Flex STP, if the amount (as specified by the formula) to be
transferred under STP is not available in the Transferor Scheme in the
unit holder's account, the residual amount will be transferred to the
Transferee Scheme and Flex STP will be closed.
Calculation of Flex SIP
Under the Flex SIP – (as per the Frequency) unit holders will be eligible
to invest fixed amount to be invested per installment OR the amount
as determined by the following formula whichever is higher:
Fixed installment amount or (number of installments including the
current installment X fixed amount to be invested per installment) -
market value of the investments through Flex SIP* in the Investee
Scheme whichever is Higher
*The installment value of Flex SIP will be determined on the basis of
NAV on 10th day (T-10) before the installment date. If T-10th day falls
on a Non-Business day, then valuation will be done on T-11th day.
In case of Flex SIP, the required amount is not available in the
designated bank account and the debit instruction fails then Flex SIP
will be stopped.
9. If the NAV falls continuously throughout the Flex STP period, number
of installments may be less than those mentioned on application
form.
10. The first Flex SIP/STP instalment will be processed for the fixed
instalment amount specified by the unit holder at the time of
enrolment. From the second Flex SIP/STP instalment onwards, the
investment/ transfer amount shall be computed as per formula stated
above.
11. In case the date of investment/ transfer falls on a Non-Business Day,
Axis Dynamic Bond Fund 83
the immediate next Business Day will be considered for the purpose
of determining the applicable NAV.
12. Once the Flex SIP/ STP have been stopped the unit holder needs to
provide a new request to start Flex SIP/ STP.
13. The redemption/ switch-out of units allotted in the Investee/
Transferee Scheme shall be processed on First in First out (FIFO) basis.
If there are other financial transaction (purchase, redemption or
switch) processed in the Investee/ Transferee scheme during the
tenure of Flex SIP/ STP, the Flex SIP / STP will be processed as normal
SIP / STP for the rest of the instalments for a fixed amount.
14. In respect of Flex SIP / STP enrollments made in any of the existing
open ended Scheme(s), the Load Structure prevalent at the time of
enrollment shall be applicable to the investors during the tenure of
the Flex SIP / STP. Load structure for investments through Flex SIP / STP
to the Schemes eligible for this facility:
a. Exit Load of the Transferor Scheme(s)
The amount transferred under the Flex STP from the Transferor
Scheme to the Transferee Scheme shall be affected by switching
units of Transferor Scheme at applicable NAV, after payment of
exit load, if any, and subscribing to the units of the Transferee
Scheme at Applicable NAV.
b. Exit Load of the Investee /Transferee Scheme(s)
Applicable Exit Load, if any, in the Investee / Transferee Schemes
Plan /Option as on the date of enrollment will also be levied. For
Scheme load structure please refer to SID/ KIM or contact the
nearest Investor Service Centre (ISC) of Axis Mutual Fund or visit
our website www.axismf.com.
15. Flex STP will be automatically terminated if all units are liquidated or
withdrawn from the Transferor Scheme or pledged or upon receipt of
intimation of death of the unit holder.
16. The provision of 'Minimum Redemption Amount' as specified in the
Scheme Information Document of the respective designated
Transferor Scheme(s) and 'Minimum Application Amount' specified in
the Scheme Information Document of the respective designated
Transferee Scheme(s) will not be applicable for Flex SIP/ STP.
17. The request for Flex SIP/ STP should be submitted at least 25 calendar
days before the first SIP and at least 7 calendar days before STP date.
18. Unit holders have a right to discontinue the Flex SIP/ STP facility at any
time by sending a written request to the ISC. On receipt of such
request, the Flex SIP / STP facility will be terminated within 20 working
days.
19. All other terms & conditions of Systematic Investment Plan and
Systematic Transfer Plan are applicable to Flex SIP and STP
respectively.
Illustration: Calculation of Flex STP
Flex SIP/ STP that transfers Rs.3,000/- every month from the Debt Fund to
an Equity Fund.
Transferor Scheme: Axis Credit Risk Fund
Transferee Scheme: Axis Bluechip Fund - Growth
Option
Date & Frequency of Flex STP: 10th date - Monthly Interval
Amount of Transfer per
Installment
Rs 3,000/-
Number of Installments: 12
Axis Dynamic Bond Fund 84
Enrolment Period: January - December 2013
Calculation of Flex STP instalment amount on the date of the fourth
instalment i.e. April 10, 2013
i. Total units allotted up to the date of last installment i.e. March 10,
2013 is assumed as 822.73;
ii. NAV of Axis Bluechip Fund - Growth Option on April 10, 2013 is
assumed as Rs. 9/- per unit;
iii. Hence the market value of the investment in the Investee /
Transferee Scheme on the date of investment/ transfer is Rs. 7,
404.55[822.73X 9].
The installment amount will be calculated as follows:
a) Fixed amount specified at the time of enrolment:
Rs.3,000/-
Or
b) As determined by the formula:
(3,000 X 4) – 7,404.55 = Rs. 4,595/-
a) or b)Whichever is Higher.
Hence, on April 10, 2013, the installment amount to be transferred to the
Transferee Scheme will be Rs. 4,595/-
Illustration: Calculation of Flex SIP
Investee Scheme: Axis Bluechip Fund - Growth Option
Date & Frequency of Flex SIP: 10th date - Monthly Interval
Amount per Installment Rs 3,000/-
Number of Installments: 12
Enrolment Period: January - December 2013
Calculation of Flex SIP instalment amount for the 4th instalment i.e. April
10, 2013
i. Total units allotted up to the date of last installment i.e. March 10,
2013 is assumed as 822.73;
ii. NAV of Axis Bluechip Fund - Growth Option on T-10th day* is
assumed as Rs. 9/- per unit;
iii. Hence the market value of the investment in the Investee
Scheme on T-10th day is Rs. 7,404.55[822.73X 9].
The installment amount will be calculated as follows:
a. Fixed amount specified at the time of enrolment:
Rs.3,000/-
Or
b. As determined by the formula:
(3,000 X 4) – 7,404.55 = Rs. 4,595/-
a) or b)Whichever is Higher.
Hence, on April 10, 2013, the installment amount to be invested to the
Investee Scheme will be Rs. 4,595/-
*The installment value of Flex SIP will be determined on the basis of NAV
on 10th day (T-10) before the installment date. In the above example T-
10th day will be 31st March 2013
Investors are advised to read the SID/ KIM of the Transferee Scheme(s)
and Statement of Additional Information carefully before investing. The
SID/ KIM of the respective Scheme(s) are available with the ISCs of Axis
Mutual Fund, brokers/distributors and also displayed on the Axis Mutual
Fund website i.e. www.axismf.com
SYSTEMATIC WITHDRAWAL PLAN (SWP)
Axis Dynamic Bond Fund 85
Existing Unitholders have the benefit of availing the choice of SWP on
pre-specified dates. The SWP allows the Unitholder to withdraw a
specified sum of money each month/ quarter from his investments in the
Scheme.
The amount thus withdrawn by redemption will be converted into Units at
Applicable NAV based prices and the number of Units so arrived at will
be subtracted from the Units balance to the credit of that Unitholder.
Unitholders may start the facility/ change the amount of withdrawals or
the period of withdrawals by giving a 15 days written intimation/notice.
The SWP may be terminated by a Unitholder by giving 15 days written
intimation/ notice and it will terminate automatically if all the Units are
liquidated or withdrawn from the account or the holdings fall below the
SWP installment amount.
There are four options available under SWP viz. Monthly option, quarterly
option, Half Yearly and Yearly option. The details of which are given
below:
Monthly
Option
Quarterly
Option
Half Yearly
Option
Yearly
Option
Minimum value of SWP Rs. 1,000/-
Additional amount in
multiples of
Re.1
Dates of SWP
Installment
1/5/10/15/25*
Minimum No of SWP Six Four Four Two
* In the event that such a day is a non-business day, the withdrawals
would be affected on the next business day.
Exit Load, if any, is applicable to SWP.
The AMC reserves the right to accept SWP applications of different
amounts, dates and frequency.
Unitholders can enroll themselves for the facility by submitting the duly
completed Systematic Withdrawal enrolment Form at any of the Investor
Service Centres (ISCs)/Official Points of Acceptance (OPAs). The AMC /
Trustee reserve the right to change / modify the terms and conditions
under the SWP prospectively at a future date.
SWITCHING OPTIONS
(a) Inter - Scheme Switching option
Unit holders under the Scheme have the option to Switch part or all of
their Unit holdings in the Scheme to any other Scheme offered by the
Mutual Fund from time to time. The Mutual Fund also provides the
Investors the flexibility to Switch their investments from any other
scheme(s) / plan (s) offered by the Mutual Fund to this Scheme. This
option will be useful to Unit holders who wish to alter the allocation of
their investment among the scheme(s) / plan(s) of the Mutual Fund in
order to meet their changed investment needs.
The Switch will be effected by way of a Redemption of Units from the
Scheme at Applicable NAV, subject to Exit Load, if any and reinvestment
of the Redemption proceeds into another Scheme offered by the Mutual
Fund at Applicable NAV and accordingly the Switch must comply with
the Redemption rules of the Switch out Scheme and the Subscription
Axis Dynamic Bond Fund 86
rules of the Switch in Scheme.
(b) Intra -Scheme Switching option
Unit holders under the Scheme have the option to Switch their Units
holding from one option to another option (i.e. Growth to Dividend and
vice-a-versa). The Switches would be done at the Applicable NAV based
prices and the difference between the NAVs of the two options will be
reflected in the number of Units allotted.
Switching shall be subject to the applicable “Cut off time and Applicable
NAV” stated elsewhere in the Scheme Information Document. In case of
“Switch” transactions from one scheme to another, the allocation shall
be in line with Redemption payouts.
TRANSACTION ON FAX
In order to facilitate quick processing of transaction and / or instruction of
investment of investor the AMC/ Trustee/ Mutual Fund may (at its sole
discretion and without being obliged in any manner to do so and without
being responsible and/ or liable in any manner whatsoever) accept and
process any application, supporting documents and / or instructions
submitted by an investor / Unit holder by facsimile (Fax Submission) and
the investor / Unit holder voluntarily and with full knowledge takes and
assumes any and all risk associated therewith. The AMC / Trustee/ Mutual
Fund shall have no obligation to check or verify the authenticity or
accuracy of Fax Submission purporting to have been sent by the investor
and may act thereon as if same has been duly given by the investor. In
all cases the investor will have to immediately submit the original
documents/ instruction to AMC/ Mutual Fund.
ONLINE TRANSACTIONS
Axis Mutual Fund will allow Transactions including by way of Lumpsum
Purchase/ Redemption / Switch of Units by electronic mode through the
AMC website/Mobile Application/Whatsapp. The Subscription proceeds,
when invested through this mode, are by way of direct debits to the
designated bank through payment gateway. The Redemption proceeds,
(subject to deduction of tax at source, if any) through this mode, are
directly credited to the bank account of the Investors who have an
account at the designated banks with whom the AMC has made
arrangements from time to time or through NEFT/RTGS or through
cheque/Payorder/Demand draft issuance. The AMC will have right to
modify the procedure of transaction processing without any prior
intimation to the Investor.
Investment amount through this facility may be restricted by the AMC
from time to time in line with prudent risk management requirements and
to protect the overall interest of the Investors.
For details of the facility, investors are requested to refer to the website of
the AMC.
TRANSACTION FACILITY ON ELECTRONIC PLATFORMS/ WHATSAPP
Investors will be allowed to transact in the Schemes using WhatsApp
Facility. The facility will be available to existing Resident Individual
investors.
To avail this facility, investor will have to initiate message / request
Axis Dynamic Bond Fund 87
through WhatsApp to “+91-7506771113” through their registered mobile
number. The investor transaction / service requests will be enabled after
appropriate verification of the investor.
The transactions / services through this facility shall be subject to such
limits, operating guidelines and terms & conditions as may be prescribed
by Axis MF from time to time.
Online modes (including WhatsApp Facility) and other various digital
platforms offered by Axis Mutual Fund shall be treated as Official Point of
Acceptance. The uniform cut - off timing as prescribed by SEBI from time
to time and mentioned in the SID and KIM of the Scheme shall be
applicable for transactions received through these platforms.
TRANSACTIONS THROUGH ELECTRONIC PLATFORM(S) OF KFIN
TECHNOLOGIES PVT. LTD.
Investors will be allowed to transact through
https://mfs.kfintech.com/mfs/, an electronic platform provided by M/s.
KFin Technologies Pvt. Ltd., Registrar & Transfer Agent, in Schemes of Axis
Mutual Fund (except Axis Gold ETF and Axis Nifty ETF). The facility will also
be available through mobile application of KFin Technologies Pvt. Ltd..
The uniform cut off time as prescribed under the SEBI (Mutual Funds)
Regulations, 1996 and as mentioned in SID and KIM of the Scheme will be
applicable for transactions received through the above electronic
platform and the time of receipt of transaction recorded on the server(s)
of KFin Technologies Pvt. Ltd. will be reckoned as the time for the purpose
of determining applicability of NAV, subject to credit of funds to bank
account of scheme, wherever applicable.
The facility is subject to operating guidelines, terms and conditions as
may be prescribed by KFin Technologies Pvt. Ltd. or as may be specified
by Axis AMC from time to time. For operating guidelines and terms and
conditions, investors are requested to visit https://mfs.kfintech.com/mfs/.
Time of receipt of transaction recorded on the server(s) of KFin
Technologies Pvt. Ltd. will continue to be reckoned for electronic
transactions received through AMC website/ Distributor website/
applications etc subject to credit of funds to bank account of scheme,
wherever applicable.
ONLINE SCHEDULE TRANSACTION FACILITY (‘THE OST FACILITY’/ ‘THE
FACILITY’):
The OST facility shall enable Unitholders to schedule subscription /
redemption / switch transaction(s) on specified date for specified
amount/ units by giving online instruction.
The terms and conditions of the OST facility shall be as under:
1. The Facility is available to the existing Unitholders of open ended
schemes of Axis Mutual Fund (except Exchange Traded Funds),
subject to completion of lock-in, if any.
2. The Facility is available only to Individual (including sole proprietor)
Unitholders for units held in / subscription in physical mode.
3. The Facility for subscription transaction would be available to
unitholders after completion of OTM Mandate / Easycall mandate/
equivalent mandate registration process and as per limits specified
Axis Dynamic Bond Fund 88
therein.
4. Under the Facility the transaction can be scheduled to be executed
on a specified date which shall be within 30 calendar days from the
date of the instruction. Such specified date shall be a business day. In
case the scheduled transaction date falls on a non-business day, the
transaction will be executed on the immediately following business
day.
5. The Facility shall be available on online transaction platform(s) viz
website of Axis AMC i.e. www.axismf.com. Axis AMC may extend the
Facility to other transaction platforms from time to time, at its
discretion.
6. The scheduled transaction may be cancelled by giving suitable
instruction atleast one calendar day prior to the scheduled
transaction date.
7. The triggered transaction on the scheduled date shall be considered
as time stamped and will be executed on the specified date at the
applicable NAV of the relevant scheme. In case the specified date
happens to be a non-business day in debt schemes but is a business
day in equity schemes, switch-out from equity schemes will be
processed on the specified date, while the switch-in to debt/liquid
schemes will be processed on the next business day.
8. The scheduled transaction(s) shall be subjected to exit load,
minimum subscription/additional subscription application and other
terms and conditions of the relevant scheme as per SID applicable
on the specified date.
9. The scheduled transaction shall be liable to be rejected if sufficient
amount is not available for subscription or sufficient number of units /
amount is not available for redemption.
10. Redemption transactions will not be executed in case units are
pledged or where lien is marked on units, at the time of online
instruction / on specified date.
11. Unitholders availing of this facility shall acquaint themselves with the
features of the Scheme, including any modification / amendments
carried out before the specified date.
The Facility is an additional facility provided to the Unitholders to plan
their transactions in schemes using online platforms.
Axis AMC / Trustee reserves the right to change/ modify the terms and
conditions or to make operational rules for operation of the Facility from
time to time.
EASY CALL FACILITY
All individual investors in the scheme applying on “Sole” or “Joint
(Anyone or Survivor)” basis in their own capacity shall be eligible to avail
of Easy Call facilities for permitted transactions inter alia on the following
terms and conditions (“Terms and Conditions” mean the terms and
conditions set out below by which the Facility shall be used/availed by
the Investor/s and shall include all modifications and supplements made
by AMC thereto from time to time).
Axis Mutual Fund will allow transactions including by way of Lumpsum
Purchase/ Redemption / Switch of Units over phone. Initial Investment has
to be through physical mode wherein he has to sign a one time debit
mandate for bank accounts pertaining to designated banks with which
the AMC may have an arrangement. This facility is extended to the bank
with which the Fund would have an arrangement from time to time.
Axis Dynamic Bond Fund 89
Investment amount may be restricted by the AMC from time to time in
line with prudent risk management requirements and to protect the
overall interest of the Investors.
Investor will be allowed transactions over phone after 30 days from the
date of submission of one time mandate. Investor will not be permitted to
avail the Easy call facility for Redemptions/Switch transactions if bank
mandate is changed with in last 15 days. AMC will have right to modify
the procedure of transaction processing without any prior intimation to
the Investor. AMC retains the right to maintain call records of the
communication with investors, for lawful purposes.
The AMC has a right to ask such information (Key Information) from the
available data of the Investor/s before allowing him access to avail the
Facility. If for any reason, the AMC is not satisfied with the replies of the
Investor/s, the AMC has at its sole discretion the right of refusing access
without assigning any reasons to the Investor/s.
It is clarified that the Facility is a service provided to the Investor/s and is
offered at the sole discretion of the AMC. The AMC is not bound and/or
obliged in any way to offer this Facility to Investor/s.
The Investor/s shall check his/her account records carefully and
promptly. If the Investor/s believes that there has been a mistake in any
transaction using the Facility, or that unauthorized transaction has been
effected, the Investor/s shall notify the AMC immediately. If the Investor/s
defaults in intimating the discrepancies in the statement within a period
of fifteen days of receipt of the statements, he waives all his rights to raise
the same. By opting for the facility the Investor/s hereby irrevocably
authorizes and instructs the AMC to act on his /her behalf and to do all
such acts as AMC may find necessary to provide the Facility.
The Investor/s shall at all times be bound by any modifications and/or
variations made to these Terms and Conditions by the AMC at their sole
discretion and without notice to them.
The Investor/s agrees and confirms that the AMC has the right to ask the
Investor/s for an oral or written confirmation of any transaction request
using the Facility and/or any additional information regarding the
Account of the Investor/s.
The Investor/s agrees and confirms that the AMC may at its sole
discretion suspend the Facility in whole or in part at any time without prior
notice.
The Investor/s shall not assign any right or interest or delegate any
obligation arising herein.
The Investor/s shall take responsibility for all the transactions conducted
by using the Facility and will abide by the record of transactions
generated by the AMC. Further, the Investor/s confirms that such records
generated by the AMC shall be conclusive proof and shall be binding for
all purposes and may be used as evidence in any proceedings and that
the investor(s) unconditionally waives all objections in this behalf.
The Investor/s agree that use of the Facility will be deemed to be an
acceptance of the Terms and Conditions and the Investor/s will
Axis Dynamic Bond Fund 90
unequivocally be bound by these Terms and Conditions. The Investor
agrees that all calls received shall be eligible for applicable NAV subject
to necessary formalities to be complied by the AMC in case of
transaction through Easy Call Facility on or before the uniform cut off
time.
Requests like change in bank mandate, change of nomination, change
in mode of holding, change of address or such other requests as the
AMC may decide from time to time will not be permitted using the Easy
Call facility.
The investor agrees to indemnify and keep indemnified Axis AMC its
Directors, employees, representatives and service providers of the AMC,
Axis Mutual Fund and Trustees (indemnified parties) from and against all
actions, claims, demands, liabilities, obligations, losses, damages, costs
and expenses of whatever nature (whether actual or contingent) directly
or indirectly suffered or incurred, by the indemnified parties whatsoever
arising from or in connection with the Facility. The Investor/s shall not hold
the AMC liable and shall keep it indemnified for the following:
1) For any transaction using the Facilities carried out in good faith by the
AMC on instructions of the Investor/s.
2) For any loss or damage incurred or suffered by the Investor/s due to
any error, defect, failure or interruption in the provision of the Facility.
3) For any negligence / mistake or misconduct by the Investor/s.
4) For any breach or non-compliance by the Investor/s of the
rules/terms and conditions stated in this Document.
5) For accepting instructions given by any one of the Investor/s in case
of joint account/s having mode of operations as ““Anyone or
survivor”.
6) For not carrying out any such instructions where the AMC has reason
to believe (which decision of the AMC the Investor/s shall not
question or dispute) that the instructions given are not genuine or are
otherwise improper, unclear, vague or raise a doubt.
7) For carrying out a transaction after such reasonable verification as
the AMC may deem fit regarding the identity of the Investor/s
MISCELLANEOUS:
1) The Investor/s agrees and understands that while this Facility is being
introduced without any charges being levied; in case charges are to
be levied on a future date he agrees to pay such charges and
nonpayment in such an event can lead to termination of these
services.
2) Any dispute arising out of or in connection with these Terms and
Conditions, will be referred to the arbitration of a sole arbitrator to be
appointed by the AMC, in accordance with the Arbitration &
Conciliation Act, 1996.
3) These Terms and Conditions are subject to applicable SEBI (Mutual
Funds) Regulations, 1996 as amended from time to time and includes
Guidelines, Circular press release or Notification that may be issued.
EASY SMS FACILITY
This facility is available for individual investors (registration process to be
completed by the investor to avail this facility). For details of the
registration process, please contact our Investor Service Centres/website
of the AMC.
All individual investors applying on “Sole” or “Joint (Anyone or Survivor)”
Axis Dynamic Bond Fund 91
basis in their own capacity shall be eligible to avail the facility for
permitted transactions i.e. for lump sum purchase, redemption and
switch transactions on the below mentioned terms and conditions:
“Terms and Conditions” mean the terms and conditions set out below by
which the Facility shall be used/availed by the Investors and shall include
all modifications and supplements made by AMC thereto from time to
time.
Initial Investment has to be through the physical mode wherein the
Investor has to sign a one time debit mandate for bank accounts
pertaining to designated banks with which the AMC may have an
arrangement. This facility is extended to the bank with which the Fund
would have an arrangement from time to time. Transaction amount may
be restricted by the AMC from time to time in line with prudent risk
management requirements and to protect the overall interest of the
Investors. Investor will be allowed transactions over SMS after 30 days
from the date of submission of one time mandate. Investor will not be
permitted to avail the facility for Redemptions/Switch transactions if bank
mandate is changed within last 15 days. AMC will have right to modify
the procedure of transaction processing without any prior intimation to
the Investor.
The AMC has a right to ask such information (Key Information) from the
available data of the Investors before allowing him access to avail the
Facility. If for any reason, the AMC is not satisfied with the replies of the
Investors, the AMC has at its sole discretion the right of refusing access
without assigning any reasons to the Investors.
This facility can be availed only through the registered mobile number of
the Investor.
It is clarified that the Facility is only with a view to accommodate
/facilitate the Investors and offered at the sole discretion of the AMC. The
AMC is not bound and/or obliged in any way to give access to Facility to
Investors. The Investors shall check his/her account records carefully and
promptly. If the Investors believe that there has been a mistake in any
transaction using the Facility, or that unauthorized transaction has been
effected, the Investors shall notify the AMC immediately. If the Investors
defaults in intimating the discrepancies in the statement within a period
of fifteen days of receipt of the statements, he waives all his rights to raise
the same in favour of the AMC, unless the discrepancy /error is apparent
on the face of it. By opting for the facility the Investors hereby irrevocably
authorizes and instructs the AMC to act as his /her agent and to do all
such acts as AMC may find necessary to provide the Facility.
The Investors shall at all times be bound by any modifications and/or
variations made to these Terms and Conditions by the AMC at their sole
discretion and without notice to them.
The Investor agrees and confirms that the AMC has the right to ask the
Investor for an oral or written confirmation of any transaction request
using the Facility and/or any additional information regarding the
Account of the Investor. The Investor agrees and confirms that the AMC
may at its sole discretion suspend the Facility in whole or in part at any
time without prior notice. The Investor shall not assign any right or interest
or delegate any obligation arising herein. The Investor shall take
responsibility for all the transactions conducted by using the Facility and
Axis Dynamic Bond Fund 92
will abide by the record of transactions generated by the AMC. Further,
the Investor confirms that such records generated by the AMC shall be
conclusive proof and binding for all purposes and may be used as
evidence in any proceedings and unconditionally waives all objections
in this behalf.
The Investor agrees that use of the Facility will be deemed acceptance
of the Terms and Conditions and the Investor will unequivocally be
bound by these Terms and Conditions. The Investor agrees that all
transactions received shall be eligible for applicable NAV subject to
necessary formalities to be complied by the AMC in case of transaction
through the facility on or before the uniform cut off time.
Requests like change in bank mandate, change of nomination, change
in mode of holding, change of address or such other requests as the
AMC may decide from time to time will not be permitted using the
facility.
Investors should SMS HELP PURCHASE/REDEMPTION/SWITCH to 9212010033
in order to avail the facility post registration. The procedure for availing
the facility will be communicated to the investor. Alternatively, the
investor can also get in touch with the Investor Service Centres of the
AMC.
KFin Technologies Pvt. Ltd., Registrar & Transfer Agents to Axis Mutual
Fund having its office at Unit: Axis Mutual Fund, Tower B, Plot number 31 &
32, Financial District, Gachibowli, Nanakramguda, Serilingampally
Mandal, Hyderabad - 500032 will be the official point of acceptance for
such transactions received for Axis Mutual Fund schemes.
The investor agrees to indemnify and keep indemnified Axis AMC its
Directors, employees, representatives of the AMC, Axis Mutual Fund and
Trustees (indemnified parties) from and against all actions, claims,
demands, liabilities, obligations, losses, damages, costs and expenses of
whatever nature (whether actual or contingent) directly or indirectly
suffered or incurred, against the indemnified parties whatsoever arising
from or in connection with the Easy Call Facility. The Investor/s shall not
hold the AMC liable and shall keep it indemnified for the following:
1) For any transaction using the Facilities carried out in good faith by the
AMC on instructions of the Investor/s.
2) For any loss or damage incurred or suffered by the Investor/s due to
any error, defect, failure or interruption in the provision of the Facility.
3) For any negligence / mistake or misconduct by the Investor/s.
4) For any breach or non-compliance by the Investor/s of the
rules/terms and conditions stated herein.
5) For accepting instructions given by any one of the Investor/s in case
of joint account/s having mode of operations as “anyone or
survivor”.
6) For not carrying out any such instructions where the AMC has reason
to believe (which decision of the AMC the Investor/s shall not
question or dispute) that the instructions given are not genuine or are
otherwise improper, unclear, vague or raise a doubt.
7) For carrying out a transaction after such reasonable verification as
the AMC may deem fit regarding the identity of the Investor/s
MISCELLANEOUS:
1) The Investor/s agrees and understands that while this Facility is being
Axis Dynamic Bond Fund 93
introduced without any charges being levied; in case charges are to
be levied on a future date he agrees to pay such charges and
nonpayment in such an event can lead to termination of these
services.
2) Any dispute arising out of or in connection with these Terms and
Conditions, will be referred to the arbitration of a sole arbitrator to be
appointed by the AMC, in accordance with the Arbitration &
Conciliation Act, 1996.
3) These Terms and Conditions are subject to applicable SEBI (Mutual
Funds) Regulations, 1996 as amended from time to time and includes
Guidelines, Circular press release or Notification that may be issued.
DIVIDEND SWEEP OPTION (DSO)
The terms and conditions of Dividend Sweep Option (DSO) are as follows:
1) Dividend Sweep Option (DSO) is a facility wherein unit holder(s) of
eligible scheme(s) [hereinafter referred to as "Source Scheme(s)"] of
Axis Mutual Fund can opt to automatically invest the dividend (as
reduced by the amount of applicable statutory levy) declared by
the eligible Source Scheme(s) into other eligible Scheme(s)
[hereinafter referred to as "Target Scheme(s)"] of Axis Mutual Fund.
2) The facility is available under all the open ended schemes of Axis
Mutual Fund except Exchange Traded Funds (ETFs).
3) DSO facility is available to unit holder(s) only under the Dividend Plan
/ Option of the Source Scheme(s). However, the DSO facility will not
be available to unit holder(s) under the Daily Dividend Option in the
Source Scheme(s). Unit holder’s enrolment under the DSO facility will
automatically override any previous instructions for 'Dividend Payout'
or 'Dividend Reinvestment' facility in the Source Scheme.
4) The enrolment for DSO facility should be for all units under the
respective Dividend Plan / Option of the Source Scheme. Instructions
for part Dividend Transfer and part Dividend Payout / Reinvestment
will not be accepted. The dividend amount will be invested in the
Target Scheme under the same folio. Accordingly, the unit holder(s)
details and mode of holding in the Target Scheme will be same as in
the Source Scheme.
5) The enrolment to avail of DSO facility has to be specified for each
Scheme/Plan/Option separately and not at the folio level.
6) Under DSO, dividend declared (as reduced by the amount of
applicable statutory levy and deductions) in the Source scheme
(subject to minimum of Rs. 1,000/-) will be automatically invested into
the Target Scheme, as opted by the unit holder, on the immediate
next Business Day after the Record Date at the applicable NAV of the
Target Scheme, subject to applicable load as specified under
paragraph 9 below and accordingly equivalent units will be allotted
in the Target Scheme, subject to the terms and conditions of the
respective Target Scheme.
7) The provision for 'Minimum Application Amount' specified in the
respective Target Scheme's Scheme Information Document (SID) will
not be applicable under DSO. E.g. the minimum application amount
for new investors in Axis Bluechip Fund - Growth Plan is 5,000/-.
However in case of DSO, a Unit Holder can avail of the facility
irrespective of the amount of dividend (subject to a minimum of
1,000/-).
8) The Minimum amount of dividend eligible for transfer under Dividend
Sweep Option is 1,000/- (Rupees One Thousand Only). In case the
dividend sweep is being less than eligible amount, then the dividend
will be re-invested in source scheme/ payout as per the existing
Axis Dynamic Bond Fund 94
option.
9) Load Structure:
The dividend amount to be invested under the DSO from the Source
Scheme to the Target Scheme shall be invested by subscribing to the
units of the Target Scheme at applicable NAV, subject to payment of
Entry/Exit Load as under:
Entry Load (Target Scheme)
Direct Applications & Applications routed through any
distributor/agent/broker: Nil
Exit Load (Source Scheme): Nil
Exit Load (Target Scheme): As per the relevant SID
The Trustee/AMC reserves the right to change the load structure
under the DSO Facility at any time in future on a prospective basis.
10) The Account Statement will be issued by mail or by email (if opted by
the unit holder) to the unit holder once as per regulations. In case of
specific request received from unitholders, the Mutual Fund shall
endeavour to provide the account statement to the unitholders after
every transaction of Dividend Transfer.
11) Unitholders who wish to enroll for DSO facility are required to fill DSO
Enrolment Form available with the ISCs, distributors/agents and also
displayed on the website www.axismf.com. The DSO Enrolment Form
should be completed in English in Block Letters only. The DSO
Enrolment Form complete in all aspects should be submitted at any
of the Investor Services centre (ISCs) of Axis Mutual Fund.
12) The request for enrolment for DSO must be submitted at least 10 days
prior to the Record Date for the dividend. In case of the condition not
being met, the enrolment would be considered valid from the
immediately succeeding Record Date of the dividend, provided the
difference between the date of receipt of a valid application for
enrolment under DSO and the next Record Date for dividend is not
less than 10 days.
13) Unitholder(s) are advised to read the SID of Target Scheme(s)
carefully before investing. The SID / Key Information Memorandum of
the Scheme(s) are available with the ISCs of Axis Mutual Fund, brokers
/ distributors and also displayed on the Axis Mutual Fund website i.e. –
www.axismf.com
14) Unit holders will have the right to discontinue the DSO facility at any
time by sending a written request to the ISC. Notice of such
discontinuance should be received at least 10 days prior to the
Dividend Record Date. On receipt of such request, the DSO facility
will be terminated. At the time of discontinuation of DSO facility, the
Unit holders should indicate their choice of option i.e. dividend
reinvestment or dividend payout. In the event the Unitholder does not
indicate his choice of dividend option, the dividend, if any, will be
reinvested (compulsory payout if dividend reinvestment option is not
available) in the Source Scheme. Once the request for DSO is
registered, then it shall remain in force unless it is terminated as
aforesaid.
15) The Trustee/AMC reserves the right to change/modify the terms and
conditions of the DSO.
The Trustee reserves the right to change/ modify the terms and conditions
of the DSO at a later date on a prospective basis.
TRIGGER FACILITY
Trigger is an event on the happening of which, the Fund will
automatically redeem / switch the units, as the case may be, on behalf
Axis Dynamic Bond Fund 95
of the investor, on the date of happening of the event. Accordingly, a
trigger will activate a transaction when the event selected for has
reached the trigger point. All redemptions/ switches etc. linked to triggers
will always be at the applicable NAV based prices of the day on which
the event occurs. The investors opting for the Trigger facility will also have
right to redeem/ switch their holdings before happening of the trigger
event. Please note that the trigger is an additional facility provided to the
unit holders to save time on completing the redemption/ switch
formalities on happening of a particular predetermined event. Trigger is
not an assurance on part of AMC / Fund to the investor that he / she will
receive a particular amount of money / appreciation and / or a
percentage on redemption or will get a particular amount of capital
appreciation or will minimise the loss to investor to a particular amount or
percentage.
1. Schemes for which the facility is available:
Transferor Scheme(s) Transferee Scheme(s)
Axis Liquid Fund Axis Liquid Fund
Axis Treasury Advantage
Fund Axis Treasury Advantage Fund
Axis Short Term Fund Axis Short Term Fund
Axis Banking & PSU Debt
Fund Axis Banking & PSU Debt Fund
Axis Bluechip Fund Axis Bluechip Fund
Axis Midcap Fund Axis Midcap Fund
Axis Focused 25 Fund Axis Focused 25 Fund
Axis Triple Advantage Fund Axis Triple Advantage Fund
Axis Regular Saver Fund Axis Regular Saver Fund
Axis Gold Fund Axis Gold Fund
Axis Dynamic Bond Fund Axis Dynamic Bond Fund
Axis Strategic Bond Fund Axis Strategic Bond Fund
Axis Long Term Equity Fund Axis Long Term Equity Fund
Axis Children's Gift Fund Axis Children's Gift Fund
Axis Smallcap Fund Axis Smallcap Fund
Axis Corporate Debt Fund Axis Corporate Debt Fund
Axis Dynamic Equity Fund Axis Dynamic Equity Fund
Axis Gilt Fund
Axis Equity Hybrid Fund Axis Equity Hybrid Fund
Axis Multicap Fund Axis Multicap Fund
Axis Growth Opportunities
Fund
Axis Growth Opportunities Fund
Axis Ultra Short Term Fund Axis Ultra Short Term Fund
Axis Overnight Fund Axis Overnight Fund
Axis Nifty 100 Index Fund Axis Nifty 100 Index Fund
@ Investors who have completed the lock-in period specified in the
Scheme Information Document may apply for trigger facility.
2. Under the Trigger facility, investors will have the following options on
the date of happening of the event:
a) Full Redemption / Switch Out
b) Redemption / Switch Out to the extent of capital appreciation
only
c) Redemption / Switch Out to the extent of Principal amount only
The trigger facility is available only for the options specified above and is
Axis Dynamic Bond Fund 96
not available for any ad-hoc amount that the investor may specify.
3. The investors can select any one of the following trigger option(s)
under various plans / options of the Scheme:
i. Option to redeem / switch out in the event, Nifty Index reaches or
exceeds a specified level, at the end of any business day.
Under this option, the investor can specify that if the index (NIFTY)
reaches or exceeds a particular level at the close of any business day,
then the amount specified by the investor will be either redeemed /
switched to the selected transferee scheme.
ii. Option to redeem / switch out in the event Nifty Index reaches or
goes below a specified level, at the end of any business day.
Under this facility, the investor can specify that if the index (NIFTY)
reaches a particular level or goes below that at the close of any business
day, then the amount specified shall either be redeemed / switched to
the selected transferee scheme.
iii. Option to redeem / switch out in the event NAV reaches or exceeds a
specified level.
Under this facility, the investor can specify the Net Asset Value (NAV) on
reaching / exceeding which the amount specified will be redeemed /
switched to the selected transferee scheme.
iv. Option to redeem / switch out in the event NAV appreciates by a
specified percentage.
Under this facility, the investor can choose a specific percentage, by
which, if the scheme NAV appreciates, then the amount specified will be
redeemed / switched to the selected transferee scheme.
v. Option to redeem / switch out in the event NAV appreciates or
depreciates by a specified percentage.
Under this facility, the investor can choose a specific percentage, by
which, if the scheme NAV appreciates or depreciates, then the amount
specified will be redeemed / switched to the selected transferee
scheme.
vi. Option to redeem / switch out in the event NAV depreciates by a
specified percentage
Under this facility, the investor can choose a specific percentage, by
which, if the scheme NAV depreciates, then the amount specified will be
redeemed / switched to the selected transferee scheme.
Notes:-
A. For point no. iii above - The NAV level (in INR terms) specified by the
Unit holder must be in multiples of 5 paisa e.g. INR 10.50, INR.10.55,
INR.10.60 etc.
B. For points no. iv, v and vi above - The NAV percentage level
specified by the Unit holder must be in multiples of 1 %.
Terms & Conditions :
1. On the trigger date (the day of event occurrence), the applicable
amount will be redeemed /switched from the transferor scheme at
the closing NAV of the day i.e. the trigger date.
2. Switches can be made only where so permitted by the respective
Scheme Information Document of the Transferor/ Transferee
Axis Dynamic Bond Fund 97
schemes.
3. Once a trigger is activated and a transaction is processed, the same
will not be reversed and it will be final and binding upon the Unit
holder.
4. Trigger once activated would expire and would not be executed
again.
5. Trigger facility shall be applicable subject to payment of exit load in
the transferor scheme(s), if any.
6. The specified trigger will fail, if the investor(s) do not maintain
sufficient balance in the scheme at the time of registration of trigger
and on the trigger date.
7. Trigger will not get executed in case units are pledged or where lien is
marked on units, at the time of receipt of request for trigger.
8. Day closing Nifty Index level would be considered in case of triggers
linked to Nifty.
9. In case of partial or full switch/redemption, any trigger already
registered for a particular transaction will be deactivated.
10. "Minimum Application Amount/ Minimum Additional Investment
Amount" specified in the Scheme Information Document of the
transferee schemes will not be applicable for Switches based on
specified triggers limits being achieved.
11. NAV for switch /redemption: NAV of the trigger day will be
considered for the purpose of Redemption/ switch. In case of non-
business day in debt schemes but business day in case of equity
schemes, switch-out from equity schemes will be processed on the
trigger day and switch-in to Debt/ Liquid schemes will be processed
on the next business day.
12. In case, if no plan / option is specified for switch transaction under
trigger option, default plan / option, as specified in respective
Scheme Information Document will be considered.
13. In case of any ambiguity or where the investor fails to specify whether
the redemption / switch to be made is full or to the extent of capital
appreciation or to the extent of Principal amount only, the
transaction will not be processed.
14. All requests for registering or deactivating the trigger facility shall be
subject to an advance notice of 10 (Ten) working days. Investors can
deactivate the trigger facility by sending a written request to the
Investor Service Centers.
APPLICATION VIA ELECTRONIC MODE
Subject to the Investor fulfilling certain terms and conditions stipulated by
the AMC as under, Axis AMC, Axis Mutual Fund or any other agent or
representative of the AMC, Mutual Fund, the Registrar & Transfer Agents
may accept transactions through any electronic mode including
fax/web/ electronic transactions as permitted by SEBI or other regulatory
authorities:
a) The acceptance of the fax/web/electronic transactions will be solely
at the risk of the transmitter of the fax/web/ electronic transactions
and the Recipient shall not in any way be liable or responsible for any
loss, damage caused to the transmitter directly or indirectly, as a
result of the transmitter sending or purporting to send such
transactions.
b) The recipient will also not be liable in the case where the transaction
sent or purported to be sent is not processed on account of the fact
that it was not received by the Recipient.
c) The transmitter’s request to the Recipient to act on any
fax/web/electronic transmission is for the transmitter’s convenience
Axis Dynamic Bond Fund 98
and the Recipient is not obliged or bound to act on the same.
d) The transmitter acknowledges that fax/web/electronic transactions is
not a secure means of giving instructions/ transactions requests and
that the transmitter is aware of the risks involved including those
arising out of such transmission.
e) The transmitter authorizes the recipient to accept and act on any
fax/web/ electronic transmission which the recipient believes in good
faith to be given by the transmitter and the recipient shall be entitled
to treat any such fax/web/ electronic transaction as if the same was
given to the recipient under the transmitter’s original signature.
f) The transmitter agrees that security procedures adopted by the
recipient may include signature verification, telephone call backs
which may be recorded by tape recording device and the
transmitter consents to such recording and agrees to cooperate with
the recipient to enable confirmation of such fax/web/ electronic
transaction requests.
g) The transmitter accepts that the fax/web/ electronic transactions,
where applicable shall not be considered until time stamped as a
valid transaction request in the Scheme in line with the Regulations.
In consideration of the recipient from time to time accepting and at its
sole discretion acting on any fax/ web/electronic transaction request
received / purporting to be received from the transmitter, the transmitter
agrees to indemnify and keep indemnified the AMC, Directors,
employees, agents, representatives of the AMC, Axis Mutual Fund and
Trustee from and against all actions, claims, demands, liabilities,
obligations, losses, damages, costs and expenses of whatever nature
(whether actual or contingent) directly or indirectly suffered or incurred,
sustained by or threatened against the indemnified parties whatsoever
arising from or in connection with or any way relating to the indemnified
parties in good faith accepting and acting on fax/web/ electronic
transaction requests including relying upon such fax/ electronic
transaction requests purporting to come from the Transmitter even
though it may not come from the Transmitter.
The AMC reserves the right to discontinue the facility (ies) at any point of
time.
Distributors offer goal based financial planning (facility) to their clients. In
order to encourage Investors to plan for their investments based on life
goals (e.g. child’s education, retirement, wealth creation, etc), the Asset
Management Company would assist in providing such facilities.
Since such facilities are aimed at helping Investors achieving their
financial goals, certain features offered by Axis Mutual Fund may not be
offered/available under such goal based investment folios. Under a folio,
no additional purchase, switch and part redemption would be allowed.
Requests for changes in goals/goal details will not be accepted. Under
normal circumstances, there is no restriction on the right of the investor to
transact directly with the mutual fund.
Multiple goals based investments can be applied for under one
application form and a single cheque in the name of ‘Axis Mutual Fund
First Investor name’ or ‘Axis Mutual Fund Permanent Account Number’
would have to be provided by the Investor. Transaction charge would be
charged at application form level.
Accounts
Statements
On acceptance of the application for subscription, an allotment
confirmation specifying the number of units allotted by way of e-mail
Axis Dynamic Bond Fund 99
and/or SMS within 5 business days from the date of receipt of
transaction request/allotment will be sent to the Unit Holders
registered e-mail address and/or mobile number.
For those Unit holders who have provided an e-mail address, the
AMC will send the account statement by e-mail.
Unit holders will be required to download and print the documents
after receiving e-mail from the Mutual Fund. Should the Unit holder
experience any difficulty in accessing the electronically delivered
documents, the Unit holder shall promptly advise the Mutual Fund to
enable the Mutual Fund to make the delivery through alternate
means. It is deemed that the Unit holder is aware of all security risks
including possible third party interception of the documents and
contents of the documents becoming known to third parties.
In case of Unit Holders holding units in the dematerialized mode, the
Fund will not send the account statement to the Unit Holders. The
statement provided by the Depository Participant will be equivalent
to the account statement.
The Unit holder may request for a physical account statement by
writing/calling the AMC/ISC/Registar. In case of specific request
received from the Unit Holders, the AMC/Fund will provide the
Account Statement to the Investors within 5 business days from the
receipt of such request.
The AMC shall issue Unit certificates within 5 business days from the
date of receipt of request where the applicant so desires.
CONSOLIDATED ACCOUNT STATEMENT (CAS)
CAS is an account statement detailing all the transactions and holding at
the end of the month including transaction charges paid to the
distributor, across all schemes of all mutual funds. CAS issued to investors
shall also provide the total purchase value/cost of investment in each
scheme.
Further, CAS issued for the half-year (September/ March) shall also
provide
a. The amount of actual commission paid by AMC/Mutual Fund to
distributors (in absolute terms) during the half-year period against the
concerned investor’s total investments in each scheme.
b. The scheme’s average Total Expense Ratio (in percentage terms)
along with the break up between Investment and Advisory fees,
Commission paid to the distributor and Other expenses for the period
for each scheme’s applicable plan (regular or direct or both) where
the concerned investor has actually invested in.
The word transaction will include purchase, redemption, switch, dividend
payout, dividend reinvestment, systematic investment plan, systematic
withdrawal plan and systematic transfer plan.
a) For Unitholders not holding Demat Account:
CAS for each calendar month shall be issued, on or before tenth day of
succeeding month by the AMC.
The AMC shall ensure that a CAS for every half yearly (September/
March) is issued, on or before tenth day of succeeding month, detailing
holding at the end of the six month, across all schemes of all mutual
funds, to all such investors in whose folios no transaction has taken place
during that period.
Axis Dynamic Bond Fund 100
The AMC shall identify common investors across fund houses by their
Permanent Account Number (PAN) for the purposes of sending CAS. In
the event the account has more than one registered holder, the first
named Unit Holder shall receive the Account Statement.
The AMC will send statement of accounts by e-mail where the Investor
has provided the e-mail id. Additionally, the AMC may at its discretion
send Account Statements individually to the investors.
b) For Unitholders holding Demat Account:
SEBI vide its circular no. CIR/MRD/DP/31/2014 dated November 12, 2014,
in order to enable a single consolidated view of all the investments of an
investor in Mutual Fund and securities held in demat form with
Depositories, has required Depositories to generate and dispatch a single
CAS for investors having mutual fund investments and holding demat
accounts.
In view of the aforesaid requirement, for investors who hold demat
account, for transactions in the schemes of Axis Mutual Fund on or after
February 1, 2015, a CAS, based on PAN of the holders, will be sent by
Depositories to investors holding demat account, for each calendar
month within 10th day of the succeeding month to the investors in whose
folios transactions have taken place during that month.
CAS will be sent by Depositories every half yearly (September/March), on
or before 10th day of succeeding month, detailing holding at the end of
the six month, to all such investors in whose folios and demat accounts
there have been no transactions during that period.
CAS sent by Depositories is a statement containing details relating to all
financial transactions made by an investor across all mutual funds viz.
purchase, redemption, switch, dividend payout, dividend reinvestment,
systematic investment plan, systematic withdrawal plan, systematic
transfer plan (including transaction charges paid to the distributor) and
transaction in dematerialized securities across demat accounts of the
investors and holding at the end of the month.
In case of demat accounts with nil balance and no transactions in
securities and in mutual fund folios, the depository shall send account
statement in terms of regulations applicable to the depositories. Investors
whose folio(s)/ demat account(s) are not updated with PAN shall not
receive CAS.
Consolidation of account statement is done on the basis of PAN.
Investors are therefore requested to ensure that their folio(s)/ demat
account(s) are updated with PAN. In case of multiple holding, it shall be
PAN of the first holder and pattern of holding.
For Unit Holders who have provided an e-mail address to the Mutual
Fund or in KYC records, the CAS is sent by e-mail. However, where an
investor does not wish to receive CAS through email, option is given to
the investor to receive the CAS in physical form at the address registered
in the Depository system.
Investors who do not wish to receive CAS sent by depositories have an
option to indicate their negative consent. Such investors may contact
the depositories to opt out. Investors who do not hold demat account
Axis Dynamic Bond Fund 101
continue to receive CAS sent by RTA/AMC, based on the PAN, covering
transactions across all mutual funds as per the current practice.
In case an investor has multiple accounts across two depositories; the
depository with whom the account has been opened earlier will be the
default depository.
The dispatches of CAS by the depositories constitute compliance by the
AMC/ the Fund with the requirement under Regulation 36(4) of SEBI
(Mutual Funds) Regulations. However, the AMC reserves the right to
furnish the account statement in addition to the CAS, if deemed fit in the
interest of investor(s).
Investors whose folio(s)/demat account(s) are not updated with PAN
shall not receive CAS. Investors are therefore requested to ensure that
their folio(s)/demat account(s) are updated with PAN.
For folios not included in the CAS (due to non-availability of PAN), the
AMC shall issue monthly account statement to such Unit holder(s), for any
financial transaction undertaken during the month on or before 10th of
succeeding month by mail or email.
For folios not eligible to receive CAS (due to non-availability of PAN), the
AMC shall issue an account statement detailing holding across all
schemes at the end of every six months (i.e. September/March), on or
before 10th day of succeeding month, to all such Unit holders in whose
folios no transaction has taken place during that period shall be sent by
mail/e-mail.
OPTION TO HOLD UNITS IN DEMATERIALISED (DEMAT) FORM
Investors shall have an option to receive allotment of Mutual Fund units in
their demat account while subscribing to the Units of the Scheme in
terms of the guidelines/ procedural requirements as laid by the
Depositories (NSDL/CDSL) from time to time.
Investors desirous of having the Units of the Scheme in dematerialized
form should contact the ISCs of the AMC/Registrar.
Where units are held by investor in dematerialized form, the demat
statement issued by the Depository Participant would be deemed
adequate compliance with the requirements in respect of dispatch of
statements of account.
In case investors desire to convert their existing physical units
(represented by statement of account) into dematerialized form or vice
versa, the request for conversion of units held in physical form into Demat
(electronic) form or vice versa should be submitted along with a
Demat/Remat Request Form to their Depository Participants. In case the
units are desired to be held by investor in dematerialized form, the KYC
performed by Depository Participant shall be considered compliance of
the applicable SEBI norms.
Further, demat option shall also be available for SIP transactions. Units will
be allotted based on the applicable NAV as per Scheme Information
Document and will be credited to investors Demat Account on weekly
basis on realization of funds.
Axis Dynamic Bond Fund 102
Units held in Demat form are freely transferable in accordance with the
provisions of SEBI (Depositories and Participants) Regulations, as may be
amended from time to time. Transfer can be made only in favour of
transferees who are capable of holding units and having a Demat
Account. The delivery instructions for transfer of units will have to be
lodged with the Depository Participant in requisite form as may be
required from time to time and transfer will be affected in accordance
with such rules / regulations as may be in force governing transfer of
securities in dematerialized mode.
For details, Investors may contact any of the Investor Service Centres of
the AMC.
Dividend The Dividend warrants/cheque/demand draft shall be dispatched to the
Unit holders within 30 days of the date of declaration of the Dividend.
The Dividend proceeds will be paid by way of NEFT / RTGS / Direct
credits/ any other electronic manner if sufficient banking details are
available with the Mutual Fund for the Investor.
In case of specific request for Dividend by warrants/cheques/demand
drafts or unavailability of sufficient details with the Mutual Fund, the
Dividend will be paid by warrant/cheques/demand drafts and payments
will be made in favour of the Unit holder (registered holder of the Units or,
if there are more than one registered holder, only to the first registered
holder) with bank account number furnished to the Mutual Fund (please
note that it is mandatory for the Unit holders to provide the Bank account
details as per the directives of SEBI).
Redemption How to Redeem
A Transaction Slip can be used by the Unit Holder to request for
Redemption. The requisite details should be entered in the Transaction
Slip and submitted at an ISC/Official Point of Acceptance. Transaction
Slips can be obtained from any of the ISCs/Official Points of Acceptance.
Investor can also place redemption through Telephone using Easy
Call/Easy SMS facility or may redeem Online through the AMC’s website
subject to the terms and conditions as maybe stipulated from time to
time.
Procedure for payment of redemption.
1. Resident Investors
Redemption proceeds will be paid to the investor through Real Time
Gross Settlement (RTGS), NEFT, Direct Credit, Cheque or Demand Draft.
a) If investor had provided IFSC code in the application form, by default
redemption proceeds shall be credited to Investor’s account through
RTGS/NEFT.
b) If Investor has neither provided IFSC code nor the NEFT code but
have a bank account with Banks with whom the Fund has an
arrangement for Direct Credit from time to time, the proceeds will be
paid through direct credit.
c) Incase if investor bank account does not fall in the above a to b
categories, redemption proceeds will be paid by cheques/demand
drafts, marked "Account Payee only" and drawn in the name of the
sole holder / first-named holder (as determined by the records of the
Registrar).
The bank name and bank account number, as specified in the
Registrar's records, will be mentioned in the cheque/demand draft.
Axis Dynamic Bond Fund 103
The cheque will be payable at par at all bank branch or specific
cities. If the Unit Holder resides in any other city, he will be paid by a
demand draft payable at the city of his residence and the demand
draft charges shall be borne by the AMC (please refer SAI for details).
The redemption proceeds will be sent by courier or (if the addressee
city is not serviced by the courier) by registered post/UCP. The
dispatch for the purpose of delivery through the courier / postal
department, as the case may be, shall be treated as delivery to the
investor. The AMC / Registrar are not responsible for any delayed
delivery or non-delivery or any consequences thereof, if the dispatch
has been made correctly as stated in this paragraph.
The AMC reserves the right to change the sequence of payment
from (a) to (c) without any prior notice
For Unit holders who have given specific request for Cheque/Demand
Draft Redemption proceeds will be paid by cheque/demand drafts and
payments will be made in favour of the Unit holder with bank account
number furnished to the Mutual Fund
(Please note that it is mandatory for the Unit holders to provide the Bank
account details as per the directives of SEBI). Redemption cheques will
be sent to the Unit holder’s address.
The Trustee, at its discretion at a later date, may choose to alter or add
other modes of payment.
2. Non-Resident Investors/PIO/OCI
For NRIs, Redemption proceeds will be remitted depending upon the
source of investment as follows:
(i) Repatriation basis
When Units have been purchased through remittance in foreign
exchange from abroad or by cheque / draft issued from proceeds of the
Unit Holder's FCNR deposit or from funds held in the Unit Holder's Non
Resident (External) account kept in India, the proceeds can also be sent
to his Indian address for crediting to his NRE / FCNR / non-resident
(Ordinary) account, if desired by the Unit Holder.
(ii) Non-Repatriation basis
When Units have been purchased from funds held in the Unit Holder's
non-resident (Ordinary) account, the proceeds will be sent to the Unit
Holder's Indian address for crediting to the Unit Holder's non-resident
(Ordinary) account.
(iii) FPIs
FPIs, the designated branch of the authorized dealer may allow
remittance of net sale / maturity proceeds (after payment of taxes) or
credit the amount to the Foreign Currency account or Non-resident
Rupee account of the FPIs maintained in accordance with the approval
granted to it by the RBI.
The Fund will not be liable for any delays or for any loss on account of
any exchange fluctuations, while converting the rupee amount in foreign
exchange in the case of transactions with NRIs/FPIs. The Fund may make
other arrangements for effecting payment of redemption proceeds in
Axis Dynamic Bond Fund 104
future.
Effect of Redemptions
The number of Units held by the Unit Holder in his / her / its folio will stand
reduced by the number of Units Redeemed. Units once redeemed will
be extinguished and will not be re-issued.
The normal processing time may not be applicable in situations where
requisite details are not provided by investors/Unit holders. The AMC will
not be responsible for any loss arising out of fraudulent encashment of
cheques and/or any delay/loss in transit.
AMC reserves the right to provide the facility of redeeming Units of the
Scheme through an alternative mechanism including but not limited to
online transactions on the Internet, as may be decided by the AMC from
time to time. The alternative mechanism may also include electronic
means of communication such as redeeming Units online through the
AMC Website or any other website etc. The alternative mechanisms
would be applicable to only those investors who opt for the same in
writing and/or subject to investor fulfilling such conditions as AMC may
specify from time to time.
Signature mismatches
If the AMC / Registrar finds a signature mismatch, while processing the
redemption/ switch out request, then the AMC/ Registrar reserves the
right to process the redemption only on the basis of supporting
documents confirming the identity of the investors. List of such
documents would be notified by AMC from time to time on its website.
Important Note: All applicants for Purchase of Units /Redemption of Units
must provide a bank name, bank account number, branch address, and
account type in the Application Form.
Unclaimed Redemptions and Dividends
The Unclaimed Redemption and dividend amounts shall be deployed by
the Fund in money market instruments and such other
instruments/securities as maybe permitted from time to time. The
investment management fee charged by the AMC for managing such
unclaimed amounts shall not exceed 50 basis points. The circular also
specifies that investors who claim these amounts during a period of three
years from the due date shall be paid at the prevailing NAV. Thus, after a
period of three years, this amount can be transferred to a pool account
and the investors can claim the said amounts at the NAV prevailing at
the end of the third year. In terms of the circular, the onus is on the AMC
to make a continuous effort to remind investors through letters to take
their unclaimed amounts. The details of such unclaimed amounts shall be
disclosed in the annual report sent to the Unit Holders.
Further, according to circular no. SEBI/HO/IMD/DF2/CIR/P/2016/37 dated
February 25, 2016 the unclaimed Redemption and dividend amounts
may be deployed in separate plan of Liquid scheme/Money market
mutual fund scheme floated by Mutual Funds specifically for deployment
of the unclaimed Redemption and dividend amounts.
Delay in payment of
redemption /
repurchase
proceeds
The AMC shall be liable to pay interest to the Unit holders at 15% or such
other rate as may be prescribed by SEBI from time to time, in case the
Redemption / Repurchase proceeds are not made within 10 Business
Days of the date of Redemption / Repurchase. However, the AMC will
Axis Dynamic Bond Fund 105
not be liable to pay any interest or compensation or any amount
otherwise, in case the AMC / Trustee is required to obtain from the
Investor / Unit holders verification of identity or such other details relating
to Subscription for Units under any applicable law or as may be
requested by a Regulatory Agency or any government authority, which
may result in delay in processing the application.
Facility to transact in
units of the Schemes
through MF Utility
portal & MFUI Points
of Services pursuant
to appointment of
MF Utilities India Pvt.
Ltd.
AMC has entered into an Agreement with MF Utilities India Pvt. Ltd.
(“MFUI”), a “Category II – Registrar to an Issue” under SEBI (Registrars to
an Issue and Share Transfer Agents) Regulations, 1993, for usage of MF
Utility (“MFU”) - a shared services initiative of various Asset Management
Companies, which acts as a transaction aggregation portal for
transacting in multiple Schemes of various Mutual Funds with a single
form and a single payment instrument.
Accordingly, investors are requested to note that in addition to the
existing Official Points of Acceptance for accepting transactions in the
units of the schemes of the Axis Mutual Fund as disclosed in the SID,
www.mfuonline.com i.e. online transaction portal of MFU and the
authorized Points of Service (“POS”) designated by MUFI shall also be the
OPA with effect from the dates as may be specified by MFUI on its
website/AMC by issuance of necessary communication.
All financial and non-financial transactions pertaining to Schemes of Axis
Mutual Fund can be done through MFU either electronically on
www.mfuonline.com or physically through the POS of MFUI with effect
from the respective dates as published on MFUI website against the
respective POS locations. The list of POS of MFUI is published on the
website of MFUI at www.mfuindia.com. This will be updated from time to
time.
The uniform cut-off time as prescribed SEBI (Mutual Funds) Regulations,
1996, circulars issued by SEBI and as mentioned in the SID / KIM of the
Scheme shall be applicable for applications received on the portal of
MFUI i.e. www.mfuonline.com. However, investors should note that
transactions on the MFUI portal shall be subject to the terms & conditions
(including those relating to eligibility of investors) as stipulated by MFUI /
Axis Mutual Fund / the AMC from time to time and in accordance to the
laws applicable.
MFUI will allot a Common Account Number (“CAN”), a single reference
number for all investments in the Mutual Fund industry, for transacting in
multiple Schemes of various Mutual Funds through MFU and to map
existing folios, if any. Investors can create a CAN by submitting the CAN
Registration Form (CRF) and necessary documents at the MFUI POS. The
AMC and / or its Registrar and Transfer Agent (RTA) shall provide
necessary details to MFUI as may be needed for providing the required
services to investors / distributors through MFU.
C. PERIODIC DISCLOSURES
Net Asset Value
This is the value per
unit of the scheme
on a particular
day. You can
ascertain the value
of your investments
NAVs will be calculated and disclosed on all the Business Days. The AMC
shall update the NAVs on the website of the AMC (www.axismf.com) and of
the Association of Mutual Funds in India - AMFI (www.amfiindia.com) before
11.00 p.m. on every Business Day. If the NAVs are not available before the
commencement of Business Hours on the following day due to any reason,
the Mutual Fund shall issue a press release giving reasons and explaining
when the Mutual Fund would be able to publish the NAV.
Axis Dynamic Bond Fund 106
by multiplying the
NAV with your unit
balance.
Information regarding NAV can be obtained by the Unit holders / Investors
by calling or visiting the nearest ISC.
Monthly and Half
yearly Disclosures:
Portfolio / Financial
Results
This is a list of
securities where
the corpus of the
scheme is currently
invested. The
market value of
these investments
is also stated in
portfolio
disclosures.
The AMC will disclose the portfolio of the Scheme (alongwith ISIN) on
fortnightly and half yearly on the website of the Mutual Fund and AMFI
within 5 days of every fortnight and within 10 days from the close of each
half year (i.e. 31st March and 30th September) respectively in a user-friendly
and downloadable spreadsheet format. Further, AMC shall publish an
advertisement in an all India edition of one national English daily newspaper
and one Hindi newspaper, every half year, disclosing the hosting of the half-
yearly statement of its schemes’ portfolio on the website of the Mutual Fund
and AMFI and the modes through which unitholder(s) can submit a request
for a physical or electronic copy of the statement of scheme portfolio.
The AMC will also provide a dashboard, in a comparable, downloadable
(spreadsheet) and machine readable format, providing performance and
key disclosures like Scheme’s AUM, investment objective, expense ratios,
portfolio details, scheme’s past performance etc. on website.
Half Yearly Results
The Mutual Fund shall within one month from the close of each half year,
that is on 31st March and on 30th September, host a soft copy of its
unaudited financial results on the website of the AMC and AMFI.
The mutual fund shall publish an advertisement disclosing the hosting of
such financial results on their website, in atleast one English daily newspaper
having nationwide circulation and in a newspaper having wide circulation
published in the language of the region where the Head Office of the
Mutual Fund is situated.
The unaudited financial results will also be displayed on the website of the
AMC and AMFI.
Annual Report The Scheme annual report or an abridged summary thereof shall be mailed
(emailed, where e-mail id is provided unless otherwise required) to all Unit
holders not later than four months (or such other period as may be specified
by SEBI from time to time) from the date of closure of the relevant
accounting year (i.e. 31st March each year) and full annual report shall be
available for inspection at the Head Office of the Mutual Fund and a copy
shall be made available to the Unit holders on request on payment of
nominal fees, if any. Scheme wise annual report shall also be displayed on
the website of the Mutual Fund (www.axismf.com) and on the website of
Association of Mutual Funds in India (www.amfiindia.com).
Unitholders whose email addresses are not registered with the Mutual Fund
may ‘opt-in’ to receive a physical copy of the annual report or an abridged
summary thereof.
Further, AMC shall provide a physical copy of the abridged summary of the
Annual Report, without charging any cost, on a specific request received
from a unitholder.
AMC shall also publish an advertisement every year, in an all India edition of
one national English daily newspaper and in one Hindi newspaper,
disclosing the hosting of the scheme wise annual report on the website of
the Mutual Fund and AMFI and the modes through which a unitholder can
submit a request for a physical or electronic copy of the annual report or
abridged summary thereof.
Associate Please refer to Statement of Additional Information (SAI).
Axis Dynamic Bond Fund 107
Transactions
Taxation
Rates applicable
for the FY 20-21
The information is
provided for
general
information only.
However, in view
of the individual
nature of the
implications, each
investor is advised
to consult his or her
own tax
advisors/authorised
dealers with
respect to the
specific amount of
tax and other
implications arising
out of his or her
participation in the
schemes.
Particulars
Taxability in the hands of Individuals / Non-corporates /
Corporates
Resident Non-Resident
Tax on Dividend Taxed in the hands of
unitholders at applicable rate
under the provisions of the
Income-tax Act, 1961 (Act)
Taxed in the hands of
unitholders at the rate of
20% u/s 115A of the Act
(plus applicable surcharge
and cess)
Long Term
Capital Gains
(LTCG):
(Held for a
period of more
than 36 Months)
-Listed other
than equity-
oriented fund
20% with indexation benefit in
respect of cost of acquisition
(plus applicable surcharge
and cess)
20% with indexation
benefit in respect of cost
of acquisition
(plus applicable surcharge
and cess)
LTCG -Unlisted
other than
equity oriented
funds
20%
(Indexation benefit not
available)
(plus applicable surcharge
and cess)
10%
(Indexation benefit not
available)
(plus applicable surcharge
and cess)
Short Term
Capital Gains
30%
(Refer Note 4)
(plus applicable surcharge
and cess)
30% (Refer Note 4)
(40% in case of Foreign
companies)
(plus applicable surcharge
and cess)
Note –
1. Axis Mutual Fund is a Mutual Fund registered with the Securities & Exchange
Board of India and hence the entire income of the Mutual Fund will be
exempt from income tax in accordance with the provisions of Section
10(23D) of the Act.
2. Surcharge at the following rate to be levied in case of individual /HUF/ non-
corporate non-firm unit holders for equity oriented mutual fund:
Income Individual/ HUF / non-
corporate non-firm unit
holders*
Rs 50 lakh to 1 crore (including income under
section 111A and 112A of the Act)
10%
Above Rs 1 crore upto Rs 2 crores (including
income under section 111A and 112A of the
Act)
15%
Above Rs 2 crores upto Rs 5 crores (excluding
income under section 111A and 112A of the
Act)
25%*
Above Rs 5 crores (excluding income under
section 111A and 112A of the Act)
37%*
*For income earned under provisions of section 111A and section 112A of
Axis Dynamic Bond Fund 108
the Act surcharge rate shall be 15% where income exceeds Rs 2 crores.
3. Surcharge rates for Companies
Total Income Rate of
Surcharge for
Domestic
companies
Rate of
Surcharge for
Foreign
Companies
Above Rs 1 crore upto Rs 10
crores
7% 2%
Above Rs 10 crores 12% 5%
*Surcharge rate shall be 10% in case resident companies opting taxation
under section 115BAA and section 115BAB on any income earned.
In case of firm with total income exceeding Rs.1 crore, surcharge rate shall
be 12%.
4. Assuming investor falls in to highest tax bracket
5. Withholding of Taxation by Mutual Fund will as per applicable withholding
tax rate.
For further details on taxation please refer to the clause on Taxation in the
SAI
Stamp Duty Pursuant to Notification No. S.O. 1226(E) and G.S.R. 226(E) dated March 30,
2020 issued by Department of Revenue, Ministry of Finance, Government of
India, read with Part I of Chapter IV of Notification dated February 21, 2019
issued by Legislative Department, Ministry of Law and Justice, Government
of India on the Finance Act, 2019, stamp duty @0.005% of the transaction
value would be levied on applicable mutual fund transactions.
Accordingly, pursuant to levy of stamp duty, the number of units allotted on
purchase transactions (including dividend reinvestment) to the unitholders
would be reduced to that extent.
Investor services Investors can lodge any service request or complaints or enquire about
NAVs, Unit Holdings, Dividends, etc by calling the Investor line of the AMC at
"1800 221322" (toll-free number) and additional contact number 8108622211
(chargeable) from 8.00 am to 8.00 pm (Monday to Friday) and 9.00 am to
6.00 pm (on Saturday and Sunday) or 4325 5100 (at local call rate for
enquiring at AMC ISC’s) or email – [email protected]. The
service representatives may require personal information of the Investor for
verification of his / her identity in order to protect confidentiality of
information. The AMC will at all times endeavour to handle transactions
efficiently and to resolve any investor grievances promptly.
Any complaints should be addressed to Mr. Milind Vengurlekar who has
been appointed as the Investor Relations Officer and can be contacted at:
Address : Axis Asset Management Company Ltd.
"Axis House", 1st Floor, C-2, Wadia International Centre, Pandurang Budhkar
Marg, Worli, Mumbai – 400 025
Phone no.: 022 - 43254123
For any grievances with respect to transactions through BSE StAR and / or
NSE MFSS, the investors / Unit Holders should approach either the stock
broker or the investor grievance cell of the respective stock exchange.
Axis Dynamic Bond Fund 109
D. COMPUTATION OF NAV
The Net Asset Value (NAV) per Unit under the Scheme will be computed by dividing the net
assets of the Scheme by the number of Units outstanding on the valuation day. The Mutual
Fund will value its investments according to the valuation norms, as specified in Schedule VIII of
the SEBI (MF) Regulations, or such norms as may be specified by SEBI from time to time.
The Net Assets Value (NAV) of the Units under the Scheme shall be calculated as shown below:
NAV (Rs.) =
Market or Fair Value
of Scheme’s
Investments
+ Current Assets including
Accrued Income
- Current Liabilities
and Provisions
No. of Units outstanding under Scheme on the Valuation Day
The NAV shall be calculated up to four decimal places. Separate NAV will be calculated and
disclosed for each Option. The NAVs of the Growth Option and the Dividend Option will be
different after the declaration of the first Dividend.
NAVs will be calculated and disclosed on all the Business Days.
Axis Dynamic Bond Fund 110
IV. FEES AND EXPENSES
This section outlines the expenses that will be charged to the Scheme.
A. NEW FUND OFFER (NFO) EXPENSES
These expenses are incurred for the purpose of various activities related to the NFO like sales
and distribution fees paid marketing and advertising, Registrar & Transfer Agent expenses,
printing and stationary, bank charges etc.
In accordance with the provisions of SEBI circular no. SEBI/ IMD/CIR No. 1/64057/06 dated April
04, 2006 and SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009, the NFO expenses has been
borne by the AMC/Sponsor.
B. ANNUAL SCHEME RECURRING EXPENSES
These are the fees and expenses for operating the Scheme. These expenses include
Investment Management and Advisory Fee charged by the AMC, Registrar and Transfer
Agents’ fee, marketing and selling costs etc. as given in the table below:
The AMC has estimated that upto 2.00 % of the daily net assets of the Scheme will be charged
to the Scheme as expenses. For the actual current expenses being charged, the investor
should refer to the website of the AMC.
Expense Head % of daily Net
Assets
Investment Management and Advisory fees Upto 2.00%
Trustee fee
Audit fees
Custodian fees
RTA Fees
Marketing & selling expense incl. agent commission
Cost related to investor communications
Cost of fund transfer from location to location
Cost of providing account statements and dividend redemption cheques and
warrants
Costs of statutory advertisements
Cost towards investor education & awareness (at least 2 bps)
Brokerage & transaction cost over and above 12 bps and 5 bps for cash and
derivative market trades resp.
Goods & Services Tax (GST) on expenses other than investment and advisory
fees
GST on brokerage and transaction cost
Maximum total expense ratio (TER) permissible under Regulation 52(6)(c) Upto 2.00%
Additional expenses under Regulation 52(6A)(c)^ Upto 0.05%
Additional expenses for gross new inflows from specified cities under
Regulation 52(6A)(b)$
Upto 0.30%
Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc.
and no commission for distribution of Units will be paid/ charged under Direct Plan.
^The AMC shall not charge additional expenses under Regulation 52(6A)(c) in case exit load is
not levied/ not applicable.
All fees and expenses charged in a Direct Plan (in percentage terms) under various heads
including the investment and advisory fee shall not exceed the fees and expenses charged
under such heads in other than Direct Plan.
Axis Dynamic Bond Fund 111
Fungibility of expenses: The expenses towards Investment Management and Advisory Fees
under Regulation 52(2) and the various sub-heads of recurring expenses mentioned under
Regulation 52(4) of SEBI (MF) Regulations are fungible in nature. Thus, there shall be no internal
sub-limits within the expense ratio for expense heads mentioned under Regulation 52(2) and (4)
respectively. Further, the additional expenses under Regulation 52(6A)(c) may be incurred
either towards investment & advisory fees and/or towards other expense heads as stated
above.
These estimates have been made in good faith as per the information available to the
Investment Manager and are subject to change inter-se or in total subject to prevailing
Regulations.
The recurring expenses of the Scheme (including the Investment Management and Advisory
Fees) shall be as per the limits prescribed under the SEBI (MF) Regulations. These are as follows:
Assets under management Slab (In Rs. crore) % of daily net assets
On the first Rs. 500 crores of the daily net assets 2.00%
On the next Rs. 250 crores of the daily net assets 1.75%
On the next Rs. 1250 crores of the daily net assets 1.50%
On the next Rs. 3000 crores of the daily net assets 1.35%
On the next Rs. 5000 crores of the daily net assets 1.25%
On the next Rs. 40,000 crores of the daily net assets Total expense ratio reduction of 0.05%
for every increase of Rs. 5,000 crores of
daily net assets or part thereof.
On the balance of the assets 0.80%
The total expenses of the Scheme including the investment management and advisory fee
shall not exceed the limit stated in Regulation 52(6) of the SEBI (MF) Regulations and
amendments thereto.
The AMC will charge the Scheme such actual expenses incurred, subject to the statutory limit
prescribed in the Regulations.
Expenses charged to the Scheme:
A. In addition to the limits as specified in Regulation 52(6) of SEBI (MF) Regulations or the Total
Recurring Expenses (Total Expense Limit) as specified above, the following costs or
expenses may be charged to the Scheme namely-
Additional expenses for gross new inflows from specified cities
(a) expenses not exceeding of 0.30 per cent of daily net assets, if the new inflows from such
cities as specified by SEBI/AMFI from time to time are at least -
(i) 30 per cent of gross new inflows in the Scheme, or;
(ii) 15 per cent of the average assets under management (year to date) of the Scheme,
whichever is higher:
Provided that if inflows from such cities is less than the higher of sub-clause (i) or sub- clause
(ii), such expenses on daily net assets of the Scheme shall be charged on proportionate
basis.
Provided further that, expenses charged under this clause shall be utilised for distribution
expenses incurred for bringing inflows from such cities.
Provided further that amount incurred as expense on account of inflows from such cities
shall be credited back to the Scheme in case the said inflows are redeemed within a
period of one year from the date of investment.
Provided further that, additional TER can be charged based on inflows only from retail
investors in terms of SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2018/137 dated October 22,
Axis Dynamic Bond Fund 112
2018 and SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2019/42 dated March 25, 2019. For this
purpose inflows of amount upto Rs 2,00,000/- per transaction, by individual investors shall be
considered as inflows from “retail investor”.
Additional expenses under Regulation 52(6A)(c)
(b) additional expenses, incurred towards different heads mentioned under Regulations 52(2)
and 52(4), not exceeding 0.05 per cent of daily net assets of the Scheme;
(c) GST payable on investment and advisory service fees (‘AMC fees’) charged by Axis Asset
Management Company Ltd.;
Further, brokerage and transaction costs which are incurred for the purpose of execution of
trade and is included in the cost of investment shall not exceed 0.12 per cent in case of cash
market transactions and 0.05 per cent in case of derivatives transactions.
B. Within the Total Expense Limit chargeable to the Scheme, following will be charged to the
Scheme:
(a) GST on other than investment and advisory fees, if any, (including on brokerage and
transaction costs on execution of trades) shall be borne by the Scheme
(b) Investor education and awareness initiative fees of at least 2 basis points on daily net assets
of Scheme.
C. AMC fees charged by Axis AMC to the Scheme will be within the Total Expense Limit as
prescribed by SEBI Regulations, as amended from time to time.
Expenses over and above the prescribed limit shall be charged / borne in accordance with
the Regulations prevailing from time to time.
The mutual fund would update the current expense ratios on its website (www.axismf.com)
atleast three working days prior to the effective date of the change. Investors can refer ‘Total
Expense Ratio of Mutual Fund Schemes’ section on https://www.axismf.com/total-expense-
ratio for Total Expense Ratio (TER) details.
Illustration of impact of expense ratio on scheme’s returns
For any scheme, NAV is computed on a daily basis factoring in all the assets as well as liabilities
of the Scheme (including expenses charged). Expenses charged to the Scheme bring down its
NAV and hence the investor's net returns on a corresponding basis.
Illustration:
Particulars Amount
(in Rs.)
No of
units
NAV per unit
(in Rs.)
Invested on March 31, 2016 (A) 10,000 1,000 10.00
Value of above investment as on March 31, 2017 (gross of all
expenses) (B) 11,500 1,000 11.50
Total Expenses charged during the year @2% p.a. (assumed)
( C ) 200 0.20
Value of above investment as on March 31, 2017 (net of all
expenses) (D) = (B-C) 11,300 1,000 11.30
Returns (%) (gross of all applicable expenses) (E) = ((B/A)-1) 15.0%
Returns (%) (net of all applicable expenses) (F) = ((D/A)-1) 13.0%
Please Note:
The purpose of the above illustration is purely to explain the impact of expense ratio
charged to the Scheme and should not be construed as providing any kind of investment
advice or guarantee of returns on investments.
Axis Dynamic Bond Fund 113
It is assumed that the expenses charged are evenly distributed throughout the year. The
expenses of the Direct Plan under the Scheme may vary with that of the Regular Plan
under the Scheme.
Calculations are based on assumed NAVs, and actual returns on your investment may be
more, or less.
Any tax impact has not been considered in the above example, in view of the individual
nature of the tax implications. Each investor is advised to consult his or her own financial
advisor.
C. LOAD STRUCTURE
Load is an amount which is paid by the investor to redeem the Units from the Scheme. This
amount is used by the AMC to pay commission to the distributors and to take care of other
marketing and selling expenses. Load amounts are variable and are subject to change from
time to time. For the current applicable structure, investors may refer to the website of the AMC
(www.axismf.com) or may call at 1800 221322 and additional contact number 8108622211
(chargeable) from 8.00 am to 8.00 pm (Monday to Friday) and 9.00 am to 6.00 pm (on
Saturday and Sunday) or can contact his distributor.
SEBI vide its circular no. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009 has decided that
there shall be no entry Load for all Mutual Fund Schemes.
Type of Load Load chargeable (as %age of NAV)
Entry Load Not Applicable
Exit Load Nil
Units issued on reinvestment of Dividends shall not be subject to any Load, if any.
No exit load will be charged for switch between Axis Dynamic Bond Fund - Regular Plan and
Axis Dynamic Bond Fund - Direct Plan where transaction is not routed through Distributor in Axis
Dynamic Bond Fund - Regular Plan. If the transaction in Regular Plan is routed through
Distributor, then applicable exit load will be charged for switch from Regular Plan to Direct
Plan. Further, for switches between the Growth and Dividend Option, no load will be charged
by the scheme.
The above mentioned load structure shall be equally applicable to the special products such
as SIP, STP, etc. offered by the AMC. However, no load will be charged for switching between
options and sub-options of the Scheme.
Exit load charged to the investors will be credited back to the scheme net of GST.
The Investor is requested to check the prevailing Load structure of the Scheme before
investing.
For any change in Load structure AMC will issue an addendum and display it on the
website/Investor Service Centres.
Under the Scheme, the AMC/Trustee reserves the right to change / modify the Load
structure if it so deems fit in the interest of smooth and efficient functioning of the Mutual
Fund. The AMC/Trustee reserves the right to introduce / modify the Load depending upon the
circumstances prevailing at that time subject to maximum limits as prescribed under the
Regulations.
The Redemption Price however, will not be lower than 93% of the NAV. Any imposition or
enhancement of Load in future shall be applicable on prospective investments only. The
difference between the Redemption price and Sale price at any point in time shall not exceed
the permitted limit as prescribed by SEBI from time to time which is presently 7% calculated on
the Sale Price.
Axis Dynamic Bond Fund 114
At the time of changing the Load Structure:
1. An Addendum detailing the changes will be attached to Scheme Information Document
and Key Information Memorandum. The addendum may be circulated to all the
distributors / brokers so that the same can be attached to all Scheme Information
Document and Key Information Memorandum already in stock.
2. The addendum will be displayed on the website of the AMC and arrangements will be
made to display the addendum in the form of a notice in all the Investor Service Centres
and distributors / brokers office.
3. The introduction of the Exit Load/ CDSC alongwith the details may be stamped in the
acknowledgement slip issued to the Investors on submission of the application form and
may also be disclosed in the statement of accounts issued after the introduction of such
Load/CDSC
4. A public notice shall be given in respect of such changes in one English daily newspaper
having nationwide circulation as well as in a newspaper published in the language of
region where the Head Office of the Mutual Fund is situated.
5. Any other measure which the Mutual Fund may consider necessary.
The Trustee/AMC reserves the right to change the load structure subject to the limits prescribed
under the Regulations. Any change in load structure shall be only on a prospective basis i.e.
any such changes would be chargeable only for Redemptions from prospective purchases
(applying first in first out basis).
Transaction Charges
In terms of SEBI circular no. CIR/IMD/DF/13/2011 dated August 22, 2011, as amended from time
to time, transaction charge per subscription of Rs.10,000/– and above shall be charged from
the investors and shall be payable to the distributors/ brokers (who have opted in for charging
the transaction charge) in respect of applications routed through distributor/ broker relating to
Purchases / subscription / new inflows only (lump sum and SIP), subject to the following:
For Existing / New investors: Rs.100 / Rs.150 as applicable per subscription of Rs. 10,000/– and
above
Transaction charge for SIP shall be applicable only if the total commitment through SIP
amounts to Rs.10,000/– and above. In such cases the transaction charge would be
recovered in maximum 4 successful installments.
There shall be no transaction charge on subscription below Rs.10,000/-.
There shall be no transaction charges on direct investments.
There shall be no transaction charges for transaction other than purchases / subscriptions
relating to new inflows such as Switches, etc.
Transactions carried out through the Stock Exchange platforms for mutual funds shall not
be subject to transaction charges.
However, the option to charge “transaction charges” is at the discretion of the distributors.
Investors may note that distributors can opt to receive transaction charges based on type of
the Scheme. Accordingly, the transaction charges would be deducted from the subscription
amounts, as applicable.
SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 has decided that
there shall be no entry Load for all Mutual Fund Schemes. The upfront commission on
investment made by the investor, if any, shall be paid to the ARN Holder (AMFI registered
Distributor) directly by the investor, based on the investor's assessment of various factors
including service rendered by the ARN Holder.
The requirement of minimum application amount shall not be applicable if the investment
amount falls below the minimum amount required due to deduction of transaction charges
from the subscription amount.
The Transaction Charge as mentioned above shall be deducted by the AMC from the
subscription amount of the Unit Holder and paid to the distributor and the balance shall be
Axis Dynamic Bond Fund 115
invested in the Scheme. The statement of account shall clearly state that the net investment as
gross subscription less transaction charge and give the number of units allotted against the net
investment.
D. WAIVER OF LOAD FOR DIRECT APPLICATIONS
Not applicable
Axis Dynamic Bond Fund 117
VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR
INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF
BEING TAKEN BY ANY REGULATORY AUTHORITY
This section shall contain the details of penalties, pending litigation, and action taken by
SEBI and other regulatory and Govt. Agencies.
This section shall contain the details of penalties, pending litigation, and action taken by
SEBI and other regulatory and Govt. Agencies.
1. All disclosures regarding penalties and action(s) taken against foreign Sponsor(s) may be
limited to the jurisdiction of the country where the principal activities (in terms of income /
revenue) of the Sponsor(s) are carried out or where the headquarters of the Sponsor(s) is
situated. Further, only top 10 monetary penalties during the last three years shall be
disclosed.
Not Applicable
2. In case of Indian Sponsor(s), details of all monetary penalties imposed and/ or action taken
during the last three years or pending with any financial regulatory body or governmental
authority, against Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee
Company; for irregularities or for violations in the financial services sector, or for defaults
with respect to share holders or debenture holders and depositors, or for economic
offences, or for violation of securities law. Details of settlement, if any, arrived at with the
aforesaid authorities during the last three years shall also be disclosed.
a. A show-cause notice was issued to Axis Bank by RBI dated November 16, 2017
following a statutory inspection which revealed violations of various regulations of
the RBI in relation to assessment of NPAs. After considering the response and oral
submissions of Axis Bank, the RBI found that the charges of non-compliance were
substantiated and imposed a monetary penalty of INR 3,00,00,000 (Rupees Three
Crores Only) on March 5, 2018.
b. The RBI had issued Show Cause Notice vide its letter dated 27.7.2018 with respect to
dispensation of two Children Bank Play Notes of Rs.500 each dispensed to two
customers from ATM at Kidwai nagar branch, Kanpur in non-compliance to its
Master Circular on Detection and Impounding of Counterfeit Notes dated July 20,
2017 and, the Circular on Sorting of Notes – Installation of Note Sorting Machines
dated November 19, 2009 and the Bank submitted the response on 16.8.2018. The
RBI vide its letter dated 30.1.2019 imposed a penalty of Rs.20 lakhs and the Bank
paid the same on 5.2.2019.
c. The RBI had issued Show Cause Notice vide its letter dated 29.8.2018 for wrongfully
collecting 105 DDs, each for the amount exceeding Rs.50,000, aggregating Rs.5.56
crores in the account of Satkar Co-operative Credit Society Ltd. in non-compliance
to its Master Circular on ‘Collection of Account Payee Cheques - Prohibition on
Crediting Proceeds to Third Party Account’ dated January 22, 2014 and for the
delay in reporting of above fraud in non-compliance to Master Directions on
‘Frauds - Classification and Reporting by commercial banks and select FIs’ dated
July 1, 2016. The Bank submitted the response on 17.9.2018. The RBI vide its letter
dated 30.1.2019 imposed a penalty of Rs.2 Crore and the Bank has paid the same
on 16.2.2019.
d. The RBI had issued Show cause notice vide its letter dated 23.8.2018 with respect to
non-compliance to guidelines issued dated 20.2.2018 on ‘Time-bound
implementation & Strengthening of SWIFT related operational controls and the Bank
submitted the response on 5.9.2018. The RBI vide its letter dated 25.2.2019
cautioned the Bank stating that any deficiency in this regard will attract penal
action in future.
Axis Dynamic Bond Fund 118
3. Details of all enforcement actions taken by SEBI in the last three years and/ or pending with
SEBI for the violation of SEBI Act, 1992 and Rules and Regulations framed there under
including debarment and/ or suspension and/ or cancellation and/ or imposition of
monetary penalty/adjudication/enquiry proceedings, if any, to which the Sponsor(s) and/
or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors
and/ or key personnel (especially the fund managers) of the AMC and Trustee Company
were/ are a party. The details of the violation shall also be disclosed.
Nil
4. Any pending material civil or criminal litigation incidental to the business of the Mutual Fund
to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company
and/ or any of the directors and/ or key personnel are a party should also be disclosed
separately.
Nil
5. Any deficiency in the systems and operations of the Sponsor(s) and/ or the AMC and/ or
the Board of Trustees/Trustee Company which SEBI has specifically advised to be disclosed
in the SID, or which has been notified by any other regulatory agency, shall be disclosed.
Nil
The Scheme under this Scheme Information Document was approved by the Trustee Company
on July 02, 2010. The Trustee has ensured that the Scheme is a new product offered by Axis
Mutual Fund and is not a minor modification of its existing schemes.
Notwithstanding anything contained in this Scheme Information Document, the provisions of
the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable.
for and on behalf of
Axis Asset Management Company Ltd.
Sd/-
Chandresh Kumar Nigam
Managing Director &
Chief Executive Officer
Date: November 27, 2020
Axis Dynamic Bond Fund 119
OFFICIAL POINTS OF ACCEPTANCE FOR ONGOING TRANSACTION
AXIS AMC OFFICE ADDRESSES
AHMEDABAD Axis Asset Management Company Limited ,Mithakali Law Garden Road,
Ellisbridge, 3rd Floor, 302, Megha House, Opp. Kotak Bank,Ahmedabad - 380 006.. AGRA: Axis
Asset Management Company Limited, Shop No. G-7, Ground Floor, Block-19/4, Sanjay Place,
Agra - 282 002. BANGALORE Axis Asset Management Co.Ltd. Ground Floor, G-03 & G-03A,
Prestige Meridian-1, No. 29, M.G. Road, Bangalore - 560 001 BHOPAL Axis Asset Management
Co FM-8 Mansarovar Complex , Khasra No. 27/1/2 , NH-12 , Bhopal , MP. BHUBANESHWAR Axis
Asset Management Co Unit no.3 (Part) Ground Floor Nandighosh Arena Plot no. 1 Bapuji Nagar
Bhubaneshwar Odisha. BORIVALI Axis Asset Management Co. Ltd, Office No. 201, 2 Floor, REIS
Magos, Ramdas Sutrale Marg, Off. Chandavarkar Road, Borivali (West), Mumbai, Maharashtra
- 400092. CHANDIGARH Axis Asset Management Co.Ltd. 2nd Floor, SCO No 2471, Sector 22C,
Chandigarh - 160022. CHENNAI Axis Asset Management Co. Ltd. 1st Floor , Door no. 168 Anna
Salai , Opp. To Spencer Plaza , Chennai , Tamil Nadu - 600 002., COIMBATORE Axis Asset
Management Company Limited, 1st Floor, Shylaja Complex, 575 DB Road, R. S. Puram, Near
Head Post Office, Coimbatore - 641 002. DEHRADUN Axis Asset Management Co. Ltd., 59/3 First
Floor, Rajpur Road, Above IDBI Bank, Dehradun – 248001. FORT Axis Asset Management
Company Limited , 112, 1st Floor, Yusuf Building, Plot No. 49, Veer Nariman Road, Hutatma
Chowk, Fort, Mumbai - 400 001. GUWAHATI Axis Asset Management Co. ltd 2C 2nd Floor,
“Dihang Arcade”, ABC, G.S. Road Opp Dona Planet Guwahati 781005. HYDERABAD Axis Asset
Management Company Ltd, 2nd Floor, Nerella House, Panjagutta, Hyderabad - 500 082.
INDORE Axis Asset Management Co. ltd office No. 211 2nd Floor Megapolis Square Block A 579,
M.G Road .opp Treasure Island Mall Indore 452001 M.P JAIPUR Axis Asset Management
Company Ltd, 305, 3 Floor, Green House, Near Ahinsa Circle, Ashok Marg, C Scheme, Jaipur -
302001.Rajasthan. JALANDHAR Axis Asset Management Co. Ltd , SCO 5-6, 1st Floor, Puda
Complex, Opp Suvidha Center, Ladowali Road, Jalandhar - 144 001 KANPUR Axis Asset
Management August Company Limited, 305-306, 3rd Floor, Civil Lines, Kan Chamber, Kanpur –
208001. KOCHI Axis Asset Management Company Limited,Door No.40/9336 ,2nd Floor
,Chackos Towers ,Padma Pullepady Road ,Kochi 682 035 Kerala. KOLKATA Axis Asset
Management Company Ltd, Ground Floor, Kanak Building,41, Chowringhee Road Kolkata -
700071. LUCKNOW Axis Asset Management Co. Ltd, Unit No 5, 6 & 7, Halwasiya's Commerce
House, 2nd Floor, Habibullah Estate, 11, M.G.Marg, Hazratganj, Lucknow - 226001. LUDHIANA
Axis Asset Management Co. Ltd. SCO - 28, First Floor, Feroz Gandhi Market, Ludhiana - 141001.
MUMBAI Axis Asset Management Company Limited Axis House, First Floor, C-2, Wadia
International Centre, Pandurang Budhkar Marg, Worli, Mumbai - 400025. MUMBAI (Indiabulls)
Axis Asset Management Company Ltd. Unit No. 902, 9th Floor, Indiabulls Finance Center, Tower
2, Senapati Bapat Marg, Mumbai - 400013. NAGPUR Axis Asset Management Company Ltd. 1st
Floor, "The Edge", 12, Shankar Nagar, WHC Road, Nagpur-440010 NASIK Axis Asset
Management Company Limited Shop No. G-7,GroundFloor, Rajvee Enclave, Old Pandit
Colony, Nasik - 422 001, Maharashtra. NEW DELHI Axis Asset Management Company Ltd. 702-
705, 7th Floor, Narain Manzil, Barakhamba Road, Connaught Place, New Delhi - 110001.
PANAJI Axis Asset Management Company Limited Ground Floor, Shop No. G-7, Edcon Towers,
Menezes Braganza Road, Panjim, Goa - 403001. PUNE Axis Asset Management Company Ltd.
Unit No. 102 & 102-A/B, 1st Floor, Signature Building, Bhandarkar Road, CTS No. 853, Plot No. 195,
Bhamburda, Shivajinagar, Pune - 411005.PATNA Axis Asset Management Company Ltd. D - 309/
310, 3 Floor, Dumroan Palace, Frazer Road, Patna 800 001. RAIPUR Axis Asset Management
Company Ltd ,Office No. T -10, 3rd Floor, Raheja Towers, Fafadih , Chowk Jail Road, Raipur,
Chhattisgarh - 492001. RAJKOT Axis Asset Management Co. ltd 206, Metro Plaza Jansata
Chowk Near Eagle Travels Moti Tanki Chowk , Rajkot - 360001. SURAT Axis Asset Management
Company Limited,HG-2A, International Trade Centre(ITC), Majura Gate Crossing, Ring Road
,Surat Gujarat, India. Thane Axis Asset Management Company Ltd, Manjula Arcade, 2nd Floor,
Gokhale Road, Naupada, Thane (West) - 400 602. Vadodara Axis Asset Management
Company Limited 3rd Floor, 306, Emerald Complex, Race Course, Near Bird Circle, Old Padra
Road, Vadodara - 390 007.Amritsar Axis Asset Management Co. Ltd SCO-25, First floor, District
shopping Centre, B-Block, Ranjit Avenue, Amritsar – 143001. Varanasi Axis Asset Management
Company Ltd. 7th Floor, Arihant Complex, D-64/127 C-H, Sigra, Varanasi, Uttar Pradesh -
Axis Dynamic Bond Fund 120
221010. Visakhapatnam Axis Asset Management Company Limited, S3, 3rd Floor, Navaratna
Jewel Square, Beside Jyothi, Book Depot, Dwarakanagar, Visakhapatnam - 530 016.
KFIN TECHNOLOGIES PRIVATE LIMITED INVESTOR SERVICE CENTERS
Bangalore - KFin Technologies Pvt. Ltd,No 35,Puttanna Road,Basavanagudi,Bangalore 560004
Belgaum - KFin Technologies Pvt. Ltd,Premises No.101, CTS NO.1893,Shree Guru Darshani
Tower,Anandwadi, Hindwadi,Belgaum 590011 Bellary - KFin Technologies Pvt. Ltd,Shree
Gayathri Towers #4,1st Floor K.H.B.Colony,Gopalaswamy Mudaliar Road,Gandhi Nagar-Bellary
583103 Davangere - KFin Technologies Pvt. Ltd,D.No 162/6 , 1st Floor, 3rd Main,P J
Extension,Davangere taluk, Davangere Manda,Davangere 577002 Dharwad - KFin
Technologies Pvt. Ltd,ADINATH COMPLEX,BESIDE KAMAL AUTOMOBILES, BHOOVI GALLI,OPP
OLD LAXMI TALKIES, P B ROAD,Dharwad 580001 Gulbarga - KFin Technologies Pvt. Ltd,H NO 2-
231,KRISHNA COMPLEX, 2ND FLOOR Opp.,Opp. Municipal corporation Office,Jagat, Station
Main Road, KALABURAGI,Gulbarga 585105 Hassan - KFin Technologies Pvt. Ltd,SAS NO: 490,
HEMADRI ARCADE,2ND MAIN ROAD,SALGAME ROAD NEAR BRAHMINS BOYS HOSTEL,Hassan
573201 Hubli - KFin Technologies Pvt. Ltd,R R MAHALAXMI MANSION,ABOVE INDUSIND BANK,
2ND FLOOR,DESAI CROSS, PINTO ROAD,Hubballi 580029 Mangalore - KFin Technologies Pvt.
Ltd,Mahendra Arcade Opp Court Road,Karangal Padi,-,Mangalore 575003 Margao - KFin
Technologies Pvt. Ltd,2Nd Floor ,Dalal Commercial Complex,Pajifond,Margao 403601 Mysore -
KFin Technologies Pvt. Ltd, NO 2924, 2ND FLOOR, 1ST MAIN, 5TH CROSS, SARASWATHI PURAM,
MYSORE 570009 Panjim - KFin Technologies Pvt. Ltd,H. No: T-9, T-10, Affran plaza,3rd Floor,Near
Don Bosco High School, Panjim 403001 Shimoga - KFin Technologies Pvt. Ltd,JAYARAMA
NILAYA,2ND CORSS,MISSION COMPOUND, Shimoga 577201 Ahmedabad - KFin Technologies
Pvt. Ltd,Office No. 401, on 4th Floor,ABC-I, Off. C.G. Road,-,Ahmedabad 380009 Anand - KFin
Technologies Pvt. Ltd,B-42 Vaibhav Commercial Center,Nr Tvs Down Town Shrow
Room ,Grid Char Rasta ,Anand 380001 Baroda - KFin Technologies Pvt. Ltd,203 Corner point,
Jetalpur Road, Baroda Gujarat, Baroda 390007 Bharuch - KFin Technologies Pvt. Ltd,123 Nexus
business Hub, Near Gangotri Hotel, B/s Rajeshwari Petroleum, Makampur Road, Bharuch 392001
Bhavnagar - KFin Technologies Pvt. Ltd,303 STERLING POINT ,WAGHAWADI ROAD ,-,Bhavnagar
364001 Gandhidham - KFin Technologies Pvt. Ltd,Shop # 12 Shree Ambica Arcade Plot #
300,Ward 12. Opp. CG High School ,Near HDFC Bank,Gandhidham 370201 Gandhinagar - KFin
Technologies Pvt. Ltd,123 First Floor,Megh Malhar Complex,Opp. Vijay Petrol Pump Sector - 11,
Gandhinagar 382011 Jamnagar - KFin Technologies Pvt. Ltd,131 Madhav Plazza, ,Opp Sbi
Bank,Nr Lal Bunglow, Jamnagar 361008 Junagadh - KFin Technologies Pvt. Ltd,124-125 Punit
Shopping Center,M.G Road, Ranavav Chowk, Junagadh 362001 Mehsana - KFin Technologies
Pvt. Ltd,FF-21 Someshwar Shopping Mall ,Modhera Char Rasta, -,Mehsana 384002 Nadiad - KFin
Technologies Pvt. Ltd,311-3rd Floor City Center ,Near Paras Circle,-,Nadiad 387001 Navsari -
KFin Technologies Pvt. Ltd,103 1ST FLOORE LANDMARK MALL,NEAR SAYAJI LIBRARY ,Navsari
Gujarat, Navsari 396445 Rajkot - KFin Technologies Pvt. Ltd,302 Metro Plaza ,Near Moti Tanki
Chowk,Rajkot, Rajkot Gujarat 360001 Surat - KFin Technologies Pvt. Ltd,Office no: -516 5th Floor
Empire State building ,Near Udhna Darwaja, Ring Road, Surat 395002 Valsad - KFin
Technologies Pvt. Ltd,406 Dreamland Arcade,Opp Jade Blue,Tithal Road, Valsad 396001 Vapi -
KFin Technologies Pvt. Ltd,A-8 FIRST FLOOR SOLITAIRE BUSINESS CENTRE,OPP DCB BANK GIDC
CHAR RASTA,SILVASSA ROAD, Vapi 396191 Chennai - KFin Technologies Pvt. Ltd,F-11 Akshaya
Plaza 1St Floor,108 Adhithanar Salai,Egmore Opp To Chief Metropolitan Court,Chennai 600002 T
Nagar/Nungambakkam - KFin Technologies Pvt. Ltd,No 23 | Cathedral Garden
Road,Cathedral Garden Road,Nungambakkam,Chennai,600 034 Calicut - KFin Technologies
Pvt. Ltd,Second Floor,Manimuriyil Centre, Bank Road,,Kasaba Village,Calicut 673001 Cochin -
KFin Technologies Pvt. Ltd,Ali Arcade 1St FloorKizhavana Road,Panampilly Nagar,Near Atlantis
Junction, Ernakualm 682036 Kannur - KFin Technologies Pvt. Ltd,2ND FLOOR,GLOBAL
VILLAGE,BANK ROAD,Kannur 670001 Kollam - KFin Technologies Pvt. Ltd,GROUND FLOORA
NARAYANAN SHOPPING COMPLEX,KAUSTHUBHSREE BLOCK,Kadapakada,Kollam 691008
Kottayam - KFin Technologies Pvt. Ltd,1St Floor Csiascension Square,Railway Station
Road,Collectorate P O,Kottayam 686002 Palghat - KFin Technologies Pvt. Ltd,No: 20 & 21 ,Metro
Complex H.P.O.Road Palakkad,H.P.O.Road,Palakkad 678001 Tiruvalla - KFin Technologies Pvt.
Ltd,2Nd FloorErinjery Complex,Ramanchira,Opp Axis Bank,Thiruvalla 689107 Trichur/Thrissur -
KFin Technologies Pvt. Ltd,4TH FLOOR, CROWN TOWER,SHAKTHAN NAGAR,OPP. HEAD POST
Axis Dynamic Bond Fund 121
OFFICE,Thrissur 680001 Trivandrum - KFin Technologies Pvt. Ltd,MARVEL TOWER, 1ST FLOOR,URA-
42 STATUE,(UPPALAM ROAD RESIDENCE ASSOCIATION) ,Trivandrum 695010 Coimbatore - KFin
Technologies Pvt. Ltd,3rd Floor Jaya Enclave,1057 Avinashi Road,-,Coimbatore 641018 Erode -
KFin Technologies Pvt. Ltd,Address No 38/1 Ground Floor,Sathy Road,(VCTV Main Road),Sorna
Krishna Complex,Erode 638003 Karur - KFin Technologies Pvt. Ltd,No 88/11, BB plaza,NRMP
street,K S Mess Back side,Karur 639002 Madurai - KFin Technologies Pvt. Ltd,No. G-16/17,AR
Plaza, 1st floor,North Veli Street,Madurai 625001 Nagerkoil - KFin Technologies Pvt. Ltd,HNO 45
,1st Floor,East Car Street ,Nagercoil 629001 Pondicherry - KFin Technologies Pvt. Ltd,No
122(10b),Muthumariamman koil street,-,Pondicherry 605001 Salem -KFin Technologies Pvt. Ltd,
No.6 NS Complex, Omalur main road, Salem 636009 Tirunelveli - KFin Technologies Pvt.
Ltd,55/18 Jeney Building,S N Road,Near Aravind Eye Hospital,Tirunelveli 627001 Trichy - KFin
Technologies Pvt. Ltd,No 23C/1 E V R road, Near Vekkaliamman Kalyana Mandapam,Putthur,-
,Trichy 620017 Tuticorin - KFin Technologies Pvt. Ltd,4 - B A34 - A37,Mangalmal Mani Nagar,Opp.
Rajaji Park Palayamkottai Road,Tuticorin 628003 Vellore - KFin Technologies Pvt. Ltd,No 2/19,1st
floor,Vellore city centre,Anna salai,Vellore 632001 Agartala - KFin Technologies Pvt. Ltd,OLS RMS
CHOWMUHANI,MANTRI BARI ROAD1ST FLOOR NEAR TRAFFIC POINT,TRIPURA WEST,Agartala
799001 Guwahati - KFin Technologies Pvt. Ltd., Ganapati Enclave, 4th Floor, Opposite Bora
Service, Ullubari, Guwahati, Assam - 781007. Shillong - KFin Technologies Pvt. Ltd,Annex Mani
Bhawan ,Lower Thana Road ,Near R K M Lp School ,Shillong 793001 Silchar - KFin Technologies
Pvt. Ltd,N.N. Dutta Road,Chowchakra Complex,Premtala,Silchar 788001 Ananthapur - KFin
Technologies Pvt. Ltd,Plot No: 12-313,,Balaji Towers, Suryanagar,Ananthapur Village,Anantapur
515001 Eluru - KFin Technologies Pvt. Ltd,DNO-23A-7-72/73K K S PLAZA MUNUKUTLA VARI
STREET,OPP ANDHRA HOSPITALS,R R PETA,Eluru 534002 Guntur - KFin Technologies Pvt. Ltd,2nd
Shatter, 1st Floor,Hno. 6-14-48, 14/2 Lane,,Arundal Pet,Guntur 522002 Hyderabad - KFin
Technologies Pvt. Ltd,No:303, Vamsee Estates,Opp: Bigbazaar,Ameerpet,Hyderabad 500016
Karimnagar - KFin Technologies Pvt. Ltd,2nd ShutterHNo. 7-2-607 Sri Matha ,Complex
Mankammathota ,-,Karimnagar 505001 Kurnool - KFin Technologies Pvt. Ltd,Shop No:47,2nd
Floor,S komda Shoping mall,Kurnool 518001 Nanded - KFin Technologies Pvt. Ltd,Shop No.4
,Santakripa Market G G Road,Opp.Bank Of India,Nanded 431601 Rajahmundry - KFin
Technologies Pvt. Ltd., No. 46-23-10/A, Tirumala Arcade, 2nd Floor, Ganuga Veedhi,
Danavaipeta, Rajahmundry East, Godavari Dist., AP - 533103. Solapur - KFin Technologies Pvt.
Ltd,Block No 06,Vaman Nagar Opp D-Mart,Jule Solapur,Solapur 413004 Srikakulam - KFin
Technologies Pvt. Ltd,D No 4-4-97 First Floor Behind Sri Vijayaganapathi Temple,Pedda relli
veedhi ,Palakonda Road ,Srikakulam 532001 Tirupathi - KFin Technologies Pvt. Ltd,H.No:10-13-
425,1st Floor Tilak Road ,Opp: Sridevi Complex ,Tirupathi 517501 Vijayawada - KFin
Technologies Pvt. Ltd,HNo26-23, 1st Floor,Sundarammastreet,GandhiNagar,
Krishna,Vijayawada 520010 Visakhapatnam - KFin Technologies Pvt. Ltd,DNO : 48-10-40,
GROUND FLOOR, SURYA RATNA ARCADE, SRINAGAR, OPP ROADTO LALITHA JEWELLER
SHOWROOM,BESIDE TAJ HOTEL LADGE,Visakhapatnam 530016 Warangal - KFin Technologies
Pvt. Ltd,Shop No22 , ,Ground Floor Warangal City Center,15-1-237,Mulugu Road
Junction,Warangal 506002 Khammam - KFin Technologies Pvt. Ltd,11-4-3/3 Shop No. S-9,1st
floor,Srivenkata Sairam Arcade,Old CPI Office Near PriyaDarshini CollegeNehru Nagar
,KHAMMAM 507002 Hyderabad(Gachibowli) - KFintech Pvt.Ltd,Selenium Plot No: 31 & 32,Tower
B Survey No.115/22 115/24 115/25,Financial District Gachibowli Nanakramguda Serilimgampally
Mandal,Hyderabad,500032 Akola - KFin Technologies Pvt. Ltd,Yamuna Tarang Complex Shop
No 30,Ground Floor N.H. No- 06 Murtizapur Road,Opp Radhakrishna Talkies,Akola 444004
Amaravathi - KFin Technologies Pvt. Ltd,Shop No. 21 2nd Floor,Gulshan Tower,Near Panchsheel
Talkies Jaistambh Square,Amaravathi 444601 Aurangabad - KFin Technologies Pvt. Ltd,Shop no
B 38,Motiwala Trade Center,Nirala Bazar,Aurangabad 431001 Bhopal - KFin Technologies Pvt.
Ltd,Gurukripa Plaza, Plot No. 48A,Opposite City Hospital, zone-2,M P nagar,Bhopal 462011
Dhule - KFin Technologies Pvt. Ltd,Ground Floor Ideal Laundry Lane No 4,Khol Galli Near
Muthoot Finance,Opp Bhavasar General Store,Dhule 424001 Indore - KFin Technologies Pvt.
Ltd,101,Diamond Trade centre,-,Indore 452001 Jabalpur - KFin Technologies Pvt. Ltd., 2nd Floor,
290/1 (615-New), Near Bhavartal Garden, Jabalpur - 482001. Jalgaon - KFin Technologies Pvt.
Ltd,3rd floor,22 Yashodhah,Ring Road,Jalgaon 425001 Nagpur - KFin Technologies Pvt. Ltd,Plot
No. 2, Block No. B / 1 & 2 , Shree Apratment,Khare Town, Mata Mandir
Road,Dharampeth,Nagpur 440010 Nasik - KFin Technologies Pvt. Ltd,S-9 Second Floor,Suyojit
Axis Dynamic Bond Fund 122
Sankul,Sharanpur Road,Nasik 422002 Sagar - KFin Technologies Pvt. Ltd,II floor Above shiva
kanch mandir.,5 civil lines,Sagar,Sagar 470002 Ujjain - KFin Technologies Pvt. Ltd,Heritage Shop
No. 227,87 Vishvavidhyalaya Marg,Station Road,Near ICICI bank Above Vishal Megha
Mart,Ujjain 456001 Asansol - KFin Technologies Pvt. Ltd,112/N G. T. ROAD BHANGA PACHIL,G.T
Road Asansol Pin: 713 303; ,Paschim Bardhaman West Bengal,Asansol 713303 Balasore - KFin
Technologies Pvt. Ltd,1-B. 1st Floor, Kalinga Hotel Lane,Baleshwar,Baleshwar Sadar,Balasore
756001 Bankura - KFin Technologies Pvt. Ltd,Plot nos- 80/1/ANATUNCHATI MAHALLA 3rd
floor,Ward no-24 Opposite P.C Chandra,Bankura town,Bankura 722101 Berhampur (Or) - KFin
Technologies Pvt. Ltd, Opp Divya Nandan Kalyan Mandap,3rd Lane Dharam Nagar,Near
Lohiya Motor,Berhampur (Or) 760001 Bhilai - KFin Technologies Pvt. Ltd,Office No.2, 1st Floor,Plot
No. 9/6,Nehru Nagar [East],Bhilai 490020 Bhubaneswar - KFin Technologies Pvt. Ltd,A/181 Back
Side Of Shivam Honda Show Room,Saheed Nagar,-,Bhubaneswar 751007 Bilaspur - KFin
Technologies Pvt. Ltd,Shop.No.306,3rd Floor,ANANDAM PLAZA,Vyapar Vihar Main Road,Bilaspur
495001 Bokaro - KFin Technologies Pvt. Ltd,CITY CENTRE, PLOT NO. HE-07,SECTOR-IV,BOKARO
STEEL CITY,Bokaro 827004 Burdwan - KFin Technologies Pvt. Ltd,Anima Bhavan 1st Floor Holding
No.-42,Sreepally G. T. Road,West Bengal,Burdwan 713103 Chinsura - KFin Technologies Pvt.
Ltd,No : 96,PO: CHINSURAH,DOCTORS LANE,Chinsurah 712101 Cuttack - KFin Technologies Pvt.
Ltd,SHOP NO-45,2ND FLOOR,,NETAJI SUBAS BOSE ARCADE,,(BIG BAZAR BUILDING) ADJUSENT TO
RELIANCE TRENDS,,DARGHA BAZAR,Cuttack 753001 Dhanbad - KFin Technologies Pvt. Ltd,208
New Market 2Nd Floor,Bank More,-,Dhanbad 826001 Durgapur - KFin Technologies Pvt.
Ltd,MWAV-16 BENGAL AMBUJA,2ND FLOOR CITY CENTRE,Distt. BURDWAN Durgapur-16
,Durgapur 713216 Gaya - KFin Technologies Pvt. Ltd,Property No. 711045129, Ground FloorHotel
Skylark,Swaraipuri Road,-,Gaya 823001 Jalpaiguri - KFin Technologies Pvt. Ltd,D B C Road Opp
Nirala Hotel,Opp Nirala Hotel,Opp Nirala Hotel,Jalpaiguri 735101 Jamshedpur - KFin
Technologies Pvt. Ltd,Madhukunj, 3rd Floor ,Q Road, Sakchi,Bistupur, East
Singhbhum,Jamshedpur 831001 Kharagpur - KFin Technologies Pvt. Ltd,Holding No 254/220, SBI
BUILDING,Malancha Road, Ward No.16, PO: Kharagpur, PS: Kharagpur,Dist: Paschim
Medinipur,Kharagpur 721304 Kolkata - KFin Technologies Pvt. Ltd,Apeejay House ( Beside Park
Hotel ),C Block3rd Floor,15 Park Street ,Kolkata 700016 Malda - KFin Technologies Pvt. Ltd,RAM
KRISHNA PALLY; GROUND FLOOR,ENGLISH BAZAR,-,Malda 732101 Patna - KFin Technologies Pvt.
Ltd,3A 3Rd Floor Anand Tower,Exhibition Road,Opp Icici Bank,Patna 800001 Raipur - KFin
Technologies Pvt. Ltd,OFFICE NO S-13 SECOND FLOOR REHEJA TOWER,FAFADIH CHOWK,JAIL
ROAD,Raipur 492001 Ranchi - KFin Technologies Pvt. Ltd,Room No 307 3Rd Floor ,Commerce
Tower ,Beside Mahabir Tower ,Ranchi 834001 Rourkela - KFin Technologies Pvt. Ltd,2nd Floor,
Main Road,UDIT NAGAR,SUNDARGARH,Rourekla 769012 Sambalpur - KFin Technologies Pvt.
Ltd,First Floor; Shop No. 219,SAHEJ PLAZA,Golebazar; Sambalpur,Sambalpur 768001 Siliguri - KFin
Technologies Pvt. Ltd,Nanak Complex, 2nd Floor,Sevoke Road,-,Siliguri 734001 Agra - KFin
Technologies Pvt. Ltd,House No. 17/2/4, 2nd Floor,Deepak Wasan Plaza,Behind Hotel Holiday
INN,Sanjay Place,Agra 282002 Aligarh - KFin Technologies Pvt. Ltd,Sebti Complex Centre
Point,Sebti Complex Centre Point,-,Aligarh 202001 Allahabad - KFin Technologies Pvt.
Ltd,Meena Bazar,2nd Floor 10 S.P. Marg Civil Lines,Subhash Chauraha, Prayagraj,Allahabad
211001 Ambala - KFin Technologies Pvt. Ltd,6349, 2nd Floor,Nicholson Road,Adjacent Kos
Hospitalambala Cant,Ambala 133001 Azamgarh - KFin Technologies Pvt. Ltd,House No.
290, Ground Floor,Civil lines, Near Sahara Office,-,Azamgarh 276001 Bareilly - KFin Technologies
Pvt. Ltd,1ST FLOORREAR SIDEA -SQUARE BUILDING,54-CIVIL LINES,Ayub Khan Chauraha,Bareilly
243001 Begusarai - KFin Technologies Pvt. Ltd,C/o Dr Hazari Prasad Sahu,Ward No 13, Behind
Alka Cinema,Begusarai (Bihar),Begusarai 851117 Bhagalpur - KFin Technologies Pvt. Ltd,2Nd
Floor,Chandralok ComplexGhantaghar,Radha Rani Sinha Road,Bhagalpur 812001 Darbhanga -
KFin Technologies Pvt. Ltd,Jaya Complex2Nd Floor,Above Furniture, lanetDonar, Chowk,
Darbhanga 846003 Dehradun - KFin Technologies Pvt. Ltd,Kaulagarh Road,Near Sirmaur
Margabove,Reliance Webworld,Dehradun 248001 Deoria - KFin Technologies Pvt. Ltd,K. K.
Plaza,Above Apurwa Sweets,Civil Lines Road,Deoria 274001 Faridabad - KFin Technologies Pvt.
Ltd,A-2B 2nd Floor,Neelam Bata Road Peer ki Mazar,Nehru Groundnit,Faridabad 121001
Ghaziabad - KFin Technologies Pvt. Ltd,FF - 31, Konark Building,Rajnagar,-,Ghaziabad 201001
Ghazipur - KFin Technologies Pvt. Ltd,House No. 148/19,Mahua Bagh,-,Ghazipur 233001 Gonda -
KFin Technologies Pvt. Ltd,H No 782,Shiv Sadan,ITI Road,Near Raghukul Vidyapeeth,Civil
lines,Gonda 271001 Gorakhpur - KFin Technologies Pvt. Ltd,Above V.I.P. House ajdacent,A.D.
Axis Dynamic Bond Fund 123
Girls College,Bank Road,Gorakpur 273001 Gurgaon - KFin Technologies Pvt. Ltd,No: 212A, 2nd
Floor, Vipul Agora,M. G. Road,-,Gurgaon 122001 Gwalior - KFin Technologies Pvt. Ltd,City
Centre,Near Axis Bank,-,Gwalior 474011 Haldwani - KFin Technologies Pvt. Ltd,Shoop No
5,KMVN Shoping Complex,-,Haldwani 263139 Haridwar - KFin Technologies Pvt. Ltd,Shop No. -
17,Bhatia Complex,Near Jamuna Palace,Haridwar 249410 Hissar - KFin Technologies Pvt.
Ltd,Shop No. 20, Ground Floor,R D City Centre,Railway Road,Hissar 125001 Jhansi - KFin
Technologies Pvt. Ltd,1st Floor, Puja Tower,Near 48 Chambers,ELITE Crossing,Jhansi 284001
Kanpur - KFin Technologies Pvt. Ltd,15/46 B Ground Floor,Opp : Muir Mills,Civil Lines,Kanpur
208001 Lucknow - KFin Technologies Pvt. Ltd,Ist Floor,A. A. Complex,5 Park Road Hazratganj
Thaper House,Lucknow 226001 Mandi - "KFin Technologies Pvt. Ltd, House No. 99/11, 3rd
Floor,Opposite GSS Boy School,School Bazar,Mandi 175001" Mathura - KFin Technologies Pvt.
Ltd,Shop No. 9, Ground Floor, Vihari Lal Plaza,Opposite Brijwasi Centrum,Near New Bus
Stand,Mathura 281001 Meerut - KFin Technologies Pvt. Ltd,H No 5,Purva Eran, Opp Syndicate
Bank,Hapur Road,Meerut 250002 Mirzapur - KFin Technologies Pvt. Ltd,House No. 404,Ward No.
8,Dankeenganj, Mirzapur,Mirzapur 231001 Moradabad - KFin Technologies Pvt. Ltd,Chadha
Complex,G. M. D. Road,Near Tadi Khana Chowk,Moradabad 244001 Morena - KFin
Technologies Pvt. Ltd,House No. HIG 959,Near Court,Front of Dr. Lal Lab,Old Housing Board
Colony,Morena 476001 Muzaffarpur - KFin Technologies Pvt. Ltd,First Floor Saroj Complex
,Diwam Road,Near Kalyani Chowk,Muzaffarpur 842001 Noida - KFin Technologies Pvt. Ltd,F-
21,2nd Floor,Near Kalyan Jewelers,Sector-18,Noida 201301 Panipat - KFin Technologies Pvt.
Ltd,Preet Tower, 3rd Floor,Near NK Tower,G.T. Road,Panipat 132103 Renukoot - KFin
Technologies Pvt. Ltd,C/o Mallick Medical Store,Bangali Katra Main Road,Dist.
Sonebhadra (U.P.),Renukoot 231217 Rewa - KFin Technologies Pvt. Ltd,Shop No. 2, Shree Sai
Anmol Complex,Ground Floor,Opp Teerth Memorial Hospital,Rewa 486001 Rohtak - KFin
Technologies Pvt. Ltd,Shop No 14, Ground Floor,Ashoka Plaza,Delhi Road ,Rohtak 124001
Roorkee - KFin Technologies Pvt. Ltd,Shree Ashadeep Complex 16,Civil Lines,Near Income Tax
Office,Roorkee 247667 Satna - KFin Technologies Pvt. Ltd,Jainam Market,Purana Power House
Chauraha,Panni Lal Chowk,Satna 485001 Shimla - KFin Technologies Pvt. Ltd,1st Floor,Hills View
Complex,Near Tara Hall,Shimla 171001 Shivpuri - KFin Technologies Pvt. Ltd,A. B. Road,In Front of
Sawarkar Park,Near Hotel Vanasthali,Shivpuri 473551 Sitapur - KFin Technologies Pvt. Ltd,12/12
Surya Complex,Station Road ,Uttar Pradesh,Sitapur 261001 Solan - KFin Technologies Pvt.
Ltd,Disha Complex, 1St Floor,Above Axis Bank,Rajgarh Road,Solan 173212 Sonepat - KFin
Technologies Pvt. Ltd,2nd floor,DP Tower, Model Town,Near Subhash Chowk,Sonepat 131001
Sultanpur - KFin Technologies Pvt. Ltd,1st Floor, Ramashanker Market,Civil Line,-,Sultanpur
228001 Varanasi - KFin Technologies Pvt. Ltd,D-64/132, 2nd Floor ,KA, Mauza, Shivpurwa,
Settlement Plot No 478 Pargana, Dehat Amanat, Mohalla Sigra,Varanashi 221010 Yamuna
Nagar - KFin Technologies Pvt. Ltd,B-V, 185/A, 2nd Floor, Jagadri Road,,Near DAV Girls College,
(UCO Bank Building) Pyara Chowk,-,Yamuna Nagar 135001 Kolhapur - KFin Technologies Pvt.
Ltd,605/1/4 E Ward Shahupuri 2Nd Lane,Laxmi Niwas,Near Sultane Chambers,Kolhapur 416001
Mumbai - KFin Technologies Pvt. Ltd,24/B Raja Bahadur Compound,Ambalal Doshi
Marg,Behind Bse Bldg,Fort 400001 Pune - KFin Technologies Pvt. Ltd,Office # 207-210, second
floor,Kamla Arcade, JM Road. Opposite Balgandharva,Shivaji Nagar,Pune 411005 Vashi - KFin
Technologies Pvt. Ltd,Vashi Plaza,Shop no. 324,C Wing, 1ST Floor,Sector 17,Vashi
Mumbai,400705 Vile Parle - KFin Technologies Pvt. Ltd,Shop No.1 Ground Floor,,Dipti Jyothi Co-
operative Housing Society,,Near MTNL office P M Road,,Vile Parle East,400057 Borivali - KFin
Technologies Pvt. Ltd,Gomati SmutiGround Floor,Jambli Gully,Near Railway Station ,Borivali
Mumbai,400 092 Thane - KFin Technologies Pvt. Ltd,Room No. 302 3rd FloorGanga Prasad,Near
RBL Bank Ltd,Ram Maruti Cross RoadNaupada Thane West ,Mumbai,400602 Ajmer - KFin
Technologies Pvt. Ltd,302 3rd Floor,Ajmer Auto Building,Opposite City Power House,Jaipur
Road; Ajmer 305001 Alwar - KFin Technologies Pvt. Ltd,Office Number 137, First Floor,Jai
Complex,Road No-2,Alwar 301001 Amritsar - KFin Technologies Pvt. Ltd,SCO 5 ,2nd Floor, District
Shopping Complex,Ranjit Avenue,Amritsar 143001 Bhatinda - KFin Technologies Pvt. Ltd,MCB -Z-
3-01043, 2 floor, GONIANA ROAD,OPPORITE NIPPON INDIA MF GT ROAD,NEAR HANUMAN
CHOWK,Bhatinda 151001 Bhilwara - KFin Technologies Pvt. Ltd,Office No. 14 B, Prem
Bhawan,Pur Road, Gandhi Nagar,Near CanaraBank,Bhilwara 311001 Bikaner - KFin
Technologies Pvt. Ltd,70-71 2Nd Floor | Dr.Chahar Building ,Panchsati Circle,Sadul Ganj
,Bikaner 334003 Chandigarh - KFin Technologies Pvt. Ltd,First floor, SCO 2469-70,Sec. 22-C,-
Axis Dynamic Bond Fund 124
,Chandigarh 160022Ferozpur - KFin Technologies Pvt. Ltd,The Mall Road Chawla Bulding Ist
Floor,Opp. Centrail Jail,Near Hanuman Mandir,Ferozepur 152002 Hoshiarpur - KFin Technologies
Pvt. Ltd,Unit # SF-6,The Mall Complex,2nd Floor , Opposite Kapila Hospital,Sutheri
Road,Hoshiarpur 146001 Jaipur - KFin Technologies Pvt. Ltd,Office no 101, 1st Floor,Okay Plus
Tower,Next to Kalyan Jewellers,Government Hostel Circle, Ajmer Road,Jaipur 302001 Jalandhar
- KFin Technologies Pvt. Ltd,Office No 7, 3rd Floor, City Square building,E-H197 Civil Line,Next to
Kalyan Jewellers,Jalandhar 144001 Jammu - KFin Technologies Pvt. Ltd.,304, A-1, 03rd Floor
,North Block, Bahu Plaza, Jammu -180004. Jodhpur - KFin Technologies Pvt. Ltd,Shop No. 6,
GANG TOWER, G Floor,OPPOSITE ARORA MOTER SERVICE CENTRE,NEAR BOMBAY MOTER
CIRCLE,Jodhpur 342003 Karnal - KFin Technologies Pvt. Ltd,18/369Char Chaman,Kunjpura
Road,Behind Miglani Hospital,Karnal 132001 Kota - KFin Technologies Pvt. Ltd,D-8, SHRI RAM
COMPLEX,OPPOSITE MULTI PURPOSE SCHOOL,GUMANPUR,Kota 324007 Ludhiana - KFin
Technologies Pvt. Ltd,SCO 122, Second floor,Above Hdfc Mutual fun,,Feroze Gandhi
Market,Ludhiana 141001 Moga - KFin Technologies Pvt. Ltd,1St FloorDutt Road,Mandir Wali
Gali,Civil Lines Barat Ghar ,Moga 142001 New Delhi - KFin Technologies Pvt. Ltd,305 New Delhi
House ,27 Barakhamba Road ,-,New Delhi 110001 Pathankot - KFin Technologies Pvt. Ltd,2nd
Floor Sahni Arcade Complex,Adj.Indra colony Gate Railway Road,Pathankot,Pathankot 145001
Patiala - KFin Technologies Pvt. Ltd,B- 17/423,Lower Mall Patiala,Opp Modi College,Patiala
147001 Sikar - KFin Technologies Pvt. Ltd,First FloorSuper Tower ,Behind Ram Mandir
Near Taparya Bagichi ,-,Sikar 332001Sri Ganganagar - KFin Technologies Pvt. Ltd,Address Shop
No. 5, Opposite Bihani Petrol Pump,NH - 15,near Baba Ramdev Mandir,Sri Ganganagar 335001
Udaipur - KFin Technologies Pvt. Ltd,Shop No. 202, 2nd Floor business centre,1C Madhuvan,Opp
G P O Chetak Circle ,Udaipur 313001
KFin Technologies Pvt. Ltd., Registrar & Transfer Agents of Axis Mutual Fund having its office at
Unit: Axis Mutual Fund, Selenium, Tower B, Plot number 31 & 32, Financial District, Gachibowli,
Nanakramguda, Serilingampally Mandal, Hyderabad 500 032 is the collection centre of
transactions / request for electronic transactions received from specified banks, financial
institutions, distribution channel etc. (mobilized on behalf of their clients) with whom the AMC
has entered or may enter into specific arrangements for purchase/ sale/switch of units.
Website of the AMC (www.axismf.com) shall be official point of acceptance for existing
investors.
In addition to the existing official points of acceptance (“OPA”) for accepting transactions in
the units of the schemes of the Axis Mutual Fund as disclosed in the SID,
http://www.mfuindia.com/MFUPOS i.e. online transaction portal of MFU and the authorized
Points of Service (“POS”) designated by MUFI shall also be the OPA.
Axis Asset Management Company Limited (Investment Manager to Axis Mutual Fund) Axis
House, 1st Floor, C-2 Wadia International, Pandurang Budhkar Marg, Worli, Mumbai - 400025,
India.
TEL 022 4325 5100 FAX 022 4325 5199 TOLL FREE 1800 221322 and additional contact number
8108622211(Chargeable) EMAIL [email protected] WEB www.axismf.com
Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act,
1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund
Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC) Risk Factors: Axis
Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of
the scheme.
Mutual Fund Investments are subject to market risks, read all scheme related documents
carefully.
1 Axis Banking & PSU Debt Fund
SCHEME INFORMATION DOCUMENT
Axis Banking & PSU Debt Fund
An open ended debt scheme predominantly investing in debt instruments of Banks, Public Sector
Undertakings & Public Financial Institutions.
Continuous offer for Units at NAV based prices
This product is suitable for investors who are seeking*:
• Regular income over short to medium term
• Investment in debt and money market instruments issued by
Banks, PFIs & PSUs.
* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Name of Mutual Fund : Axis Mutual Fund
Name of Asset Management Company : Axis Asset Management Company Ltd.
Name of Trustee Company : Axis Mutual Fund Trustee Ltd.
Addresses, Website of the entities : Axis House, 1st Floor, C-2, Wadia International Centre,
Pandurang Budhkar Marg, Worli, Mumbai - 400 025
www.axismf.com
Name of Sponsor : Axis Bank Ltd.
The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board
of India (Mutual Funds) Regulations, 1996, (herein after referred to as SEBI (MF) Regulations or the
Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the Asset
Management Company (AMC). The Units being offered for public subscription have not been approved or
recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information
Document.
The Scheme Information Document sets forth concisely the information about the Scheme that a
prospective investor ought to know before investing. Before investing, investors should also ascertain about
any further changes to this Scheme Information Document after the date of this Document from the Mutual
Fund / Investor Service Centres / Website / Distributors or Brokers.
The investors are advised to refer to the Statement of Additional Information (SAI) for details of Axis Mutual
Fund, Tax and Legal issues and general information on www.axismf.com.
SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of
the current SAI, please contact your nearest Investor Service Centre or log on to our website.
The Scheme Information Document should be read in conjunction with the SAI and not in isolation.
This Scheme Information Document is dated November 29, 2019.
2 Axis Banking & PSU Debt Fund
TABLE OF CONTENTS
HIGHLIGHTS/SUMMARY OF THE SCHEME ................................................................................ 3 I. INTRODUCTION.................................................................................................................................. 4 A. RISK FACTORS .................................................................................................................................... 4
i. Standard Risk Factors: ................................................................................................................ 4 ii. Scheme Specific Risk Factors ................................................................................................... 4
B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME ........................................................ 6 C. SPECIAL CONSIDERATIONS, if any ........................................................................................... 6 D. DEFINITIONS ........................................................................................................................................ 8 E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY ................................................... 12 II. INFORMATION ABOUT THE SCHEME ........................................................................................... 13 A. TYPE OF THE SCHEME ..................................................................................................................... 13 B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? ....................................................... 13 C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? ................................................................. 13 D. WHERE WILL THE SCHEME INVEST? .............................................................................................. 35 E. WHAT ARE THE INVESTMENT STRATEGIES? ................................................................................. 36 F. FUNDAMENTAL ATTRIBUTES ........................................................................................................... 39 G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? ................................................ 39 H. WHO MANAGES THE SCHEME? ................................................................................................... 40 I. WHAT ARE THE INVESTMENT RESTRICTIONS? ............................................................................ 40 J. CREATION OF SEGREGATED PORTFOLIO .................................................................................. 44 K. HOW HAS THE SCHEME PERFORMED? ....................................................................................... 48 L. INVESTMENTS BY THE AMC ............................................................................................................ 49 M. ADDITIONAL SCHEME RELATED DISCLOSURES ......................................................................... 49 III. UNITS AND OFFER ............................................................................................................................ 51 A. NEW FUND OFFER (NFO) ............................................................................................................... 51 B. ONGOING OFFER DETAILS ............................................................................................................ 62 C. PERIODIC DISCLOSURES ................................................................................................................ 95 D. COMPUTATION OF NAV ................................................................................................................ 98 IV. FEES AND EXPENSES ....................................................................................................................... 99 A. NEW FUND OFFER (NFO) EXPENSES ............................................................................................ 99 B. ANNUAL SCHEME RECURRING EXPENSES ................................................................................. 99 D. LOAD STRUCTURE .......................................................................................................................... 102 E. WAIVER OF LOAD FOR DIRECT APPLICATIONS ..................................................................... 103 V. RIGHTS OF UNIT HOLDERS ........................................................................................................... 104
VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR
INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY ............................................................................ 105
3 Axis Banking & PSU Debt Fund
HIGHLIGHTS/SUMMARY OF THE SCHEME
Investment objective
To generate stable returns by investing predominantly in debt & money market instruments
issued by Banks, Public Sector Units (PSUs) & Public Financial Institutions (PFIs). The Scheme
shall endeavor to generate optimum returns with low credit risk.
Liquidity
The Scheme offers Units for Subscription and Redemption at NAV based prices on all
Business Days. Under normal circumstances, the AMC shall dispatch the redemption
proceeds within 10 business days from the date of receipt of request from the Unit holder.
Benchmark
NIFTY Banking & PSU Debt Index
Loads
Entry Load: Not Applicable
Exit Load: Nil
SEBI vide its circular no. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009 has decided
that there shall be no entry load for all Mutual Fund schemes. The upfront commission on
investment made by the investor, if any, shall be paid to the ARN Holder (AMFI registered
Distributor) directly by the investor, based on the investor's assessment of various factors
including service rendered by the ARN Holder.
For more details on Load Structure, refer to the paragraph ‘Load Structure’.
Minimum Application Amount
Rs. 5,000 and in multiples of Re. 1/- thereafter
Minimum Additional Purchase Amount
Rs. 1,000 and in multiples of Re. 1/- thereafter
Minimum application amount is applicable at the time of creation of new folio and at the
time of first investment in a plan.
Transparency/NAV Disclosure
The AMC will calculate and disclose the NAVs on all Business Days. The AMC shall update
the NAVs on its website (www.axismf.com) and of the Association of Mutual Funds in India -
AMFI (www.amfiindia.com) before 11.00 p.m. on every Business Day. If the NAVs are not
available before the commencement of Business Hours on the following day due to any
reason, the Mutual Fund shall issue a press release giving reasons and explaining when the
Mutual Fund would be able to publish the NAV.
The AMC will disclose the portfolio of the Scheme (alongwith ISIN) as on the last day of the
month/ half year on the website of the Mutual Fund and AMFI within 10 days from the close
of each month/ half year (i.e. 31st March and 30th September) respectively in a user-
friendly and downloadable spreadsheet format. Further, AMC shall publish an
advertisement, in an all India edition of one national English daily newspaper and in one
Hindi newspaper, every half year disclosing the hosting of the half-yearly statement of its
schemes portfolio on the website of the Mutual Fund and AMFI and the modes through
which unitholder can submit a request for a physical or electronic copy of the statement of
scheme portfolios.
The AMC will also provide a dashboard, in a comparable, downloadable (spreadsheet)
and machine readable format, providing performance and key disclosures like Scheme’s
AUM, investment objective, expense ratios, portfolio details, scheme’s past performance
etc. on its website.
The AMC will make available the Annual Report of the Scheme within four months of the
end of the financial year on its website and on the website of AMFI along with a link.
4 Axis Banking & PSU Debt Fund
I. INTRODUCTION
A. RISK FACTORS
i. Standard Risk Factors:
Investment in mutual fund units involves investment risks such as trading volumes,
settlement risk, liquidity risk, default risk including the possible loss of principal.
As the price / value / interest rates of the securities in which the Scheme invests
fluctuates, the value of your investment in the Scheme may go up or down.
Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future
performance of the Scheme.
Axis Banking & PSU Debt Fund is the name of the Scheme and does not in any manner
indicate either the quality of the Scheme or its future prospects and returns.
The sponsor is not responsible or liable for any loss resulting from the operation of the
Scheme beyond the initial contribution of Rs. 1 lakh made by it towards setting up the
Fund.
Axis Banking & PSU Debt Fund is not a guaranteed or assured return scheme.
ii. Scheme Specific Risk Factors
Risk factors associated with investments in Banks, PSUs & PFIs
Banks, PSUs and PFIs, may be subjected to additional risks as they are heavily regulated and
affected by government policies, which may have impact on the credit profile of these
issuers.
Risks associated with investments in Fixed Income Securities
Interest-Rate Risk: Fixed income securities such as government bonds, corporate bonds,
money market instruments and derivatives run price-risk or interest-rate risk. Generally, when
interest rates rise, prices of existing fixed income securities fall and when interest rates drop,
such prices increase. The extent of fall or rise in the prices depends upon the coupon and
maturity of the security. It also depends upon the yield level at which the security is being
traded.
Re-investment Risk: Investments in fixed income securities carry re-investment risk as interest
rates prevailing on the coupon payment or maturity dates may differ from the original
coupon of the bond.
Basis Risk: The underlying benchmark of a floating rate security or a swap might become
less active or may cease to exist and thus may not be able to capture the exact interest
rate movements, leading to loss of value of the portfolio.
Spread Risk: In a floating rate security the coupon is expressed in terms of a spread or mark
up over the benchmark rate. In the life of the security this spread may move adversely
leading to loss in value of the portfolio. The yield of the underlying benchmark might not
change, but the spread of the security over the underlying benchmark might increase
leading to loss in value of the security.
Liquidity Risk: The liquidity of a bond may change, depending on market conditions leading
to changes in the liquidity premium attached to the price of the bond. At the time of selling
the security, the security can become illiquid, leading to loss in value of the portfolio.
Liquidity Risk on account of unlisted securities
The liquidity and valuation of the Schemes’ investments due to their holdings of unlisted
securities may be affected if they have to be sold prior to their target date of divestment.
The unlisted security can go down in value before the divestment date and selling of these
securities before the divestment date can lead to losses in the portfolio.
Credit Risk: This is the risk associated with the issuer of a debenture/bond or a money
market instrument defaulting on coupon payments or in paying back the principal amount
on maturity. Even when there is no default, the price of a security may change with
expected changes in the credit rating of the issuer. It is to be noted here that a
Government Security is a sovereign security and is the safest. Corporate bonds carry a
higher amount of credit risk than Government Securities. Within corporate bonds also there
5 Axis Banking & PSU Debt Fund
are different levels of safety and a bond rated higher by a particular rating agency is safer
than a bond rated lower by the same rating agency.
Settlement Risk: Fixed income securities run the risk of settlement which can adversely affect
the ability of the fund house to swiftly execute trading strategies which can lead to adverse
movements in NAV.
Risks associated with transaction in Units through stock exchange(s)
In respect of transaction in Units of the Scheme through BSE and / or NSE, allotment and
redemption of Units on any Business Day will depend upon the order processing /
settlement by BSE and / or NSE and their respective clearing corporations on which the
Fund has no control.
Risk associated with Short Selling & Securities Lending
Securities Lending is a lending of securities through an approved intermediary to a borrower
under an agreement for a specified period with the condition that the borrower will return
equivalent securities of the same type or class at the end of the specified period along with
the corporate benefits accruing on the securities borrowed. There are risks inherent in
securities lending, including the risk of failure of the other party, in this case the approved
intermediary to comply with the terms of the agreement. Such failure can result in a
possible loss of rights to the collateral, the inability of the approved intermediary to return
the securities deposited by the lender and the possible loss of corporate benefits accruing
thereon.
Short-selling is the sale of shares or securities that the seller does not own at the time of
trading. Instead, he borrows it from someone who already owns it. Later, the short seller
buys back the stock/security he shorted and returns the stock/security to the lender to close
out the loan. The inherent risks are Counterparty risk and liquidity risk of the stock/security
being borrowed. The security being short sold might be illiquid or become illiquid and
covering of the security might occur at a much higher price level than anticipated, leading
to losses.
Risks associated with Repo transactions in Corporate Bonds
The Scheme may be exposed to counter party risk in case of repo lending transactions in
the event of the counterparty failing to honour the repurchase agreement. However in
repo transactions, the collateral may be sold and a loss is realized only if the sale price is less
than the repo amount. The risk is further mitigated through over-collateralization (the value
of the collateral being more than the repo amount).
Risks associated with Creation of Segregated portfolio
1. Investor holding units of segregated portfolio may not able to liquidate their holding till
the time recovery of money from the issuer.
2. Security comprises of segregated portfolio may not realise any value.
3. Listing of units of segregated portfolio on recognised stock exchange does not
necessarily guarantee their liquidity. There may not be active trading of units in the
stock market. Further trading price of units on the stock market may be significantly
lower than the prevailing NAV.
Risk Factor associated with debt instruments having credit enhancement:
The Scheme may invest in debt instruments having credit enhancement backed by equity
shares/guarantees or other any assets as collateral. The profile of these issuers tend to be
relatively weak and there may be a pledge of shares of a related party to enhance credit
quality or guarantees provided or any other asset provided as security acceptable to
lenders.
Where equity shares are provided as collateral there is the risk of sharp price volatility of
underlying securities which may lead to erosion in value of collateral which may affect the
ability of the fund to enforce collateral and recover capital and interest obligations. Also
there is a possibility of guarantor going insolvent which also can impact the recovery value
of exposure. In case of credit enhanced structures backed by equity share the liquidity of
the underlying shares may be low leading to a lower recovery and a higher impact cost of
6 Axis Banking & PSU Debt Fund
liquidation. In case of other assets provided recovery value and enforce ability of asset can
also be a risk factor which can lower the recovery value.
B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME
The Scheme shall have a minimum of 20 Investors and no single Investor shall account for
more than 25% of the corpus of the Scheme. The aforesaid conditions should be complied
with in each calendar quarter on an average basis. In case the Scheme does not have a
minimum of 20 Investors on an ongoing basis for each calendar quarter, the provisions of
Regulation 39(2)(c) of the SEBI (MF) Regulations would become applicable automatically
without any reference from SEBI and accordingly the Scheme shall be wound up and the
units would be redeemed at Applicable NAV. If there is a breach of the 25% limit by any
Investor over the quarter, a rebalancing period of one month would be allowed and
thereafter the Investor who is in breach of the rule shall be given 15 days’ notice to redeem
his exposure over the 25% limit. Failure on the part of the said investor to redeem his
exposure over the 25% limit within the aforesaid 15 days would lead to automatic
Redemption by the Mutual Fund at the Applicable NAV on the 15th day of the notice
period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in
this regard.
C. SPECIAL CONSIDERATIONS, if any
• Prospective investors should study this Scheme Information Document and Statement of
Additional Information carefully in its entirety and should not construe the contents
hereof as advise relating to legal, taxation, financial, investment or any other matters
and are advised to consult their legal, tax, financial and other professional advisors to
determine possible legal, tax, financial or other considerations of subscribing to or
redeeming Units, before making a decision to invest/redeem/hold Units.
• The Scheme related documents i.e. SID/ KIM/ SAI or the units of the Fund are not
registered in any jurisdiction including the United States of America nor in any
provincial/ territorial jurisdiction in Canada. The distribution of the Scheme related
document in certain jurisdictions may be restricted or subject to registration
requirements and, accordingly, persons who come into possession of the Scheme
related documents are required to inform themselves about, and to observe any such
restrictions. No persons receiving a copy of this Scheme related documents or any
accompanying application form in such jurisdiction may treat these Scheme related
documents or such application form as constituting an invitation to them to subscribe
for units, nor should they in any event use any such application form, unless in the
relevant jurisdiction such an invitation could lawfully be made to them and such
application form could lawfully be used without compliance with any registration or
other legal requirements. Accordingly, the Scheme related documents do not
constitute an offer or solicitation by anyone in any jurisdiction in which such offer or
solicitation is not lawful or in which the person making such offer or solicitation is not
qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation
as per applicable law.
• The AMC, Trustee or the Mutual Fund have not authorized any person to issue any
advertisement or to give any information or to make any representations, either oral or
written, other than that contained in this Scheme Information Document or the
Statement of Additional Information or as is provided by the AMC in connection with
this offering. Prospective investors are advised not to rely upon any information or
representation not incorporated in the Scheme Information Document or Statement of
Additional Information or as provided by the AMC as having been authorized by the
Mutual Fund, the AMC or the Trustee.
• Redemption due to change in the fundamental attributes of the Scheme or due to any
other reasons may entail tax consequences. The Trustee, AMC, Mutual Fund, their
directors or their employees shall not be liable for any such tax consequences that may
arise due to such Redemptions.
• The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for
any of the tax consequences that may arise, in the event that the Scheme is wound up
for the reasons and in the manner provided in ‘Statement of Additional Information’.
• The tax benefits described in this Scheme Information Document and Statement of
Additional Information are as available under the present taxation laws and are
available subject to relevant conditions. The information given is included only for
general purpose and is based on advise received by the AMC regarding the law and
7 Axis Banking & PSU Debt Fund
practice currently in force in India as on the date of this Scheme Information Document
and the Unit holders should be aware that the relevant fiscal rules or their interpretation
may change. As is the case with any investment, there can be no guarantee that the
tax position or the proposed tax position prevailing at the time of an investment in the
Scheme will endure indefinitely. In view of the individual nature of tax consequences,
each Unit holder is advised to consult his / her own professional tax advisor.
• The Mutual Fund may disclose details of the investor’s account and transactions there
under to those intermediaries whose stamp appears on the application form or who
have been designated as such by the investor. In addition, the Mutual Fund may
disclose such details to the bankers, as may be necessary for the purpose of effecting
payments to the investor. The Fund may also disclose such details to regulatory and
statutory authorities/bodies as may be required or necessary.
• In case the AMC or its Sponsor or its Shareholders or their affiliates/associates or group
companies make substantial investment, either directly or indirectly in the Scheme,
Redemption of units by these entities may have an adverse impact on the performance
of the Scheme. This may also affect the ability of the other. Unit holders to redeem their
units.
• As the liquidity of the Scheme’s investments may sometimes be restricted by trading
volumes and settlement periods, the time taken by the Fund for Redemption of Units
may be significant in the event of an inordinately large number of Redemption requests
or of a restructuring of the Scheme’s portfolio. In view of this, the Trustee has the right, in
its sole discretion, to limit Redemptions under certain circumstances - please refer to the
paragraph “Suspension/Restriction on Redemption of Units of the Scheme”.
• Pursuant to the provisions of Prevention of Money Laundering Act, 2002, if after due
diligence, the AMC believes that any transaction is suspicious in nature as regards
money laundering, on failure to provide required documentation, information, etc. by
the unit holder the AMC shall have absolute discretion to report such suspicious
transactions to FIU-IND and / or to freeze the folios of the investor(s), reject any
application(s)/redemptions / allotment of Units.
8 Axis Banking & PSU Debt Fund
D. DEFINITIONS
"AMC" / "Asset
Management
Company" /
"Investment
Manager"
Axis Asset Management Company Ltd., incorporated under the
provisions of the Companies Act, 1956 and approved by Securities and
Exchange Board of India to act as the Asset Management Company
for the scheme(s) of Axis Mutual Fund.
"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 time
stamped.
“Book Closure” The time during which the Asset Management Company would
temporarily suspend Sale, redemption and Switching of Units.
“Business Day” A day other than:
i. Saturday and Sunday;
ii. A day on which the banks in Mumbai and /or RBI are closed for
business /clearing;
iii. A day on which the National Stock Exchange of India Ltd. and/or
BSE Ltd., Mumbai are closed;
iv. A day which is a public and /or bank Holiday at an Investor Service
Centre/Official Point of Acceptance where the application is
received;
v. A day on which Sale / Redemption / Switching of Units is
suspended by the AMC;
vi. A day on which normal business cannot be transacted due to
storms, floods, bandhs, strikes or such other events as the AMC may
specify from time to time.
Further, the day(s) on which the money markets are closed / not
accessible, shall not be treated as Business Day(s).
The AMC reserves the right to declare any day as a Business Day or
otherwise at any or all Investor Service Centres/Official Points of
Acceptance.
"Business Hours" Presently 9.30 a.m. to 5.30 p.m. on any Business Day or such other time
as may be applicable from time to time.
"Custodian" A person who has been granted a certificate of registration to carry on
the business of custodian of securities under the Securities and
Exchange Board of India (Custodian of Securities) Regulations 1996,
which for the time being is Deutsche Bank AG.
"Deed of Trust" The Deed of Trust dated June 27, 2009 made by and between Axis
Bank Ltd. and Axis Mutual Fund Trustee Ltd. thereby establishing an
irrevocable trust, called Axis Mutual Fund.
"Depository" Depository as defined in the Depositories Act, 1996 (22 of 1996).
"Derivative" Derivative includes (i) a security derived from a debt instrument, share,
loan whether secured or unsecured, risk instrument or contract for
differences or any other form of security; (ii) a contract which derives
its value from the prices, or index of prices, or underlying securities.
"Dividend" Income distributed by the Mutual Fund on the Units.
“Dividend Sweep
option” / “DSO”
Facility given to the Unit holders to automatically invest the dividend
by eligible source scheme into eligible target scheme of the Mutual
Fund.
"Exit Load" Load on Redemption / Switch out of Units.
“Foreign Portfolio
Investor” / “FPI”
A person who satisfies the eligibility criteria prescribed under regulation
4 of SEBI (Foreign Portfolio Investors) Regulations, 2014 and has been
registered under Chapter II of these regulations, which shall be
deemed to be an intermediary in terms of the provisions of the Act.
"Floating Rate
Debt Instruments"
Floating rate debt instruments are debt securities issued by Central and
/ or State Government, corporates or PSUs with interest rates that are
reset periodically. The periodicity of the interest reset could be daily,
monthly, quarterly, half-yearly, annually or any other periodicity that
9 Axis Banking & PSU Debt Fund
may be mutually agreed with the issuer and the Fund. The interest on
the instruments could also be in the nature of fixed basis points over
the benchmark gilt yields.
"Gilts" /
"Government
Securities"
Securities created and issued by the Central Government and/or a
State Government (including Treasury Bills) or Government Securities as
defined in the Public Debt Act, 1944, as amended or re-enacted from
time to time.
“GOI” Government of India
“Holiday” Holiday means the day(s) on which the banks (including the Reserve
Bank of India) are closed for business or clearing in Mumbai or their
functioning is affected due to a strike / bandh call made at any part
of the country or due to any other reason.
"Investment
Management
Agreement"
The agreement dated June 27, 2009 entered into between Axis Mutual
Fund Trustee Ltd. and Axis Asset Management Company Ltd., as
amended from time to time.
"Investor Service
Centres" / "ISCs"
Offices of Axis Asset Management Company Ltd. or such other centres
/ offices as may be designated by the AMC from time to time.
"Load" In the case of Redemption / Switch out of a Unit, the sum of money
deducted from the Applicable NAV on the Redemption / Switch out
(Exit Load) and in the case of Sale / Switch in of a Unit, a sum of money
to be paid by the prospective investor on the Sale / Switch in of a Unit
(Entry Load) in addition to the Applicable NAV.
Presently, entry load cannot be charged by mutual fund schemes.
"Money Market
Instruments"
Includes commercial papers, commercial bills, treasury bills,
Government securities having an unexpired maturity upto one year,
call or notice money, certificate of deposit, usance bills and any other
like instruments as specified by the Reserve Bank of India from time to
time.
"Mutual Fund" /
"the Fund"
Axis Mutual Fund, a trust set up under the provisions of the Indian Trusts
Act, 1882.
"Net Asset Value"
/ "NAV"
Net Asset Value per Unit of the Scheme, calculated in the manner
described in this Scheme Information Document or as may be
prescribed by the SEBI (MF) Regulations from time to time.
"NRI" A Non-Resident Indian or a Person of Indian Origin residing outside
India.
"Official Points of
Acceptance"
Places, as specified by AMC from time to time where application for
Subscription / Redemption / Switch will be accepted on ongoing basis.
“Overseas Citizen
of India” / “OCI”
Means a person registered as an Overseas Citizen of India Cardholder
by the Central Government under section 7A of The Citizenship Act,
1955.
"Person of Indian
Origin"
A citizen of any country other than Bangladesh or Pakistan, if (a) he at
any time held an Indian passport; or (b) he or either of his parents or
any of his grandparents was a citizen of India by virtue of Constitution
of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a
spouse of an Indian citizen or person referred to in sub-clause (a) or
(b).
“PFI” PFI means the list of public financial institutions as defined under
Section 2(72) of the Companies Act, 2013 and other applicable
provisions of the Companies Act, 2013, read with applicable
rules/notifications (including any statutory modification(s) or re-
enactment thereof, for the time being in force).
“Public Sector
Undertaking
(PSU)”
A Public Sector Undertaking (PSU) means a company in which more
than fifty per cent of the paid-up share capital is held by either the
Central Government, or by any State Government(s) or partly by the
Central Government and partly by one or more State Governments
and includes a company which is a subsidiary of a Government
company as thus defined and/or
A PSU is a company in which the Central Government or one or more
State Government(s) either singly or together, exercise control over
10 Axis Banking & PSU Debt Fund
management or exercise power to appoint majority of directors.
"Rating" Rating means an opinion regarding securities, expressed in the form of
standard symbols or in any other standardized manner, assigned by a
credit rating agency and used by the issuer of such securities, to
comply with any requirement of the SEBI (Credit Rating Agencies)
Regulations, 1999.
"RBI" Reserve Bank of India, established under the Reserve Bank of India Act,
1934, (2 of 1934).
"Registrar and
Transfer Agent" /
“Registrar”
Karvy Fintech Pvt. Ltd., Hyderabad, currently acting as registrar to the
Scheme, or any other Registrar appointed by the AMC from time to
time.
"Redemption /
Repurchase"
Redemption of Units of the Scheme as permitted.
“Regulatory
Agency”
GOI, SEBI, RBI or any other authority or agency entitled to issue or give
any directions, instructions or guidelines to the Mutual Fund.
“Repo” Sale/Purchase of Securities with simultaneous agreement to
repurchase / resell them at a later date.
"Statement of
Additional
Information" / "SAI"
The document issued by Axis Mutual Fund containing details of Axis
Mutual Fund, its constitution, and certain tax, legal and general
information. SAI is legally a part of the Scheme Information Document.
"Sale /
Subscription"
Sale or allotment of Units to the Unit holder upon subscription by the
Investor / applicant under the Scheme.
"Scheme" Axis Banking & PSU Debt Fund.
“Scheme
Information
Document”
This document issued by Axis Mutual Fund, offering for Subscription of
Units of Axis Banking & PSU Debt Fund (including Options there under).
"SEBI" Securities and Exchange Board of India, established under the
Securities and Exchange Board of India Act, 1992.
"SEBI (MF)
Regulations" /
"Regulations"
Securities and Exchange Board of India (Mutual Funds) Regulations,
1996, as amended from time to time.
"Short Selling" Short selling means selling a stock which the seller does not own at the
time of trade.
"Sponsor" Axis Bank Ltd.
"Switch" Redemption of a unit in any scheme (including the options therein) of
the Mutual Fund against purchase of a unit in another scheme
(including the options therein) of the Mutual Fund, subject to
completion of Lock-in Period, if any.
"Stock Lending" Lending of securities to another person or entity for a fixed period of
time, at a negotiated compensation in order to enhance returns of the
portfolio.
“Systematic
Investment Plan”/
“SIP”
A plan enabling investors to save and invest in the Scheme on a
periodic basis submitting post dated cheques / payment instructions.
“Systematic
Transfer Plan” /
“STP”
Facility given to the Unit holders to transfer sums on periodic basis from
one scheme to another scheme launched by the Mutual Fund from
time to time by giving a single instruction.
“Systematic
Withdrawal Plan”
/ “SWP”
Facility given to the Unit holders to withdraw a specified sum of money
monthly/quarterly/half yearly/annually from his investment in the
Scheme.
“Tri Party Repos” Tri-party repo means a repo contract where a third entity (apart from
the borrower and lender), called a Tri-Party Agent, acts as an
intermediary between the two parties to the repo to facilitate services
like collateral selection, payment and settlement, custody and
management during the life of the transaction.
"Trust Deed" The Trust Deed dated June 27, 2009 made by and between Axis Bank
Limited and Axis Mutual Fund Trustee Limited thereby establishing an
irrevocable trust, called Axis Mutual Fund.
“Trustee” /
“Trustee
Company”
Axis Mutual Fund Trustee Ltd., incorporated under the provisions of the
Companies Act, 1956 and approved by SEBI to act as the Trustee to
the Schemes of the Mutual Fund.
11 Axis Banking & PSU Debt Fund
"Unit" The interest of the Unit holder which consists of each Unit representing
one undivided share in the assets of the Scheme.
"Unit holder" /
"Investor"
A person holding Units in the Scheme.
INTERPRETATION
For all purposes of this Scheme Information Document, except as otherwise expressly
provided or unless the context otherwise requires:
• all references to the masculine shall include the feminine and all references, to the
singular shall include the plural and vice-versa.
• all references to "dollars" or "$" refer to United States Dollars and "Rs" refer to Indian
Rupees. A "crore" means "ten million" and a "lakh" means a "hundred thousand".
• all references to timings relate to Indian Standard Time (IST).
• References to a day are to a calendar day including a non Business Day.
12 Axis Banking & PSU Debt Fund
E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY
It is confirmed that:
(i) The Scheme Information Document forwarded to SEBI is in accordance with the SEBI
(Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from
time to time.
(ii) All legal requirements connected with the launching of the Scheme as also the
guidelines, instructions, etc., issued by the Government and any other competent
authority in this behalf, have been duly complied with.
(iii) The disclosures made in the Scheme Information Document are true, fair and adequate
to enable the investors to make a well informed decision regarding investment in the
Scheme.
(iv) The intermediaries named in the Scheme Information Document and Statement of
Additional Information are registered with SEBI and their registration is valid, as on date.
Place: Mumbai Signed: Sd/-
Date: November 29, 2019 Name: Darshan Kapadia
Designation: Compliance Officer
13 Axis Banking & PSU Debt Fund
II. INFORMATION ABOUT THE SCHEME
A. TYPE OF THE SCHEME
An open ended debt scheme predominantly investing in debt instruments of Banks, Public
Sector Undertakings & Public Financial Institutions.
B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME?
To generate stable returns by investing predominantly in debt & money market instruments
issued by Banks, Public Sector Units (PSUs) & Public Financial Institutions (PFIs). The Scheme
shall endeavor to generate optimum returns with low credit risk.
C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS?
Under normal circumstances the asset allocation pattern will be:
Instruments
Indicative Allocation
(% of net assets) Risk Profile
Minimum Maximum (Low/Medium /High)
Debt & Money Market Instruments issued by
Banks, Public Financial Institutions (PFIs) and
Public Sector Undertakings (PSUs)
80 100 Low to Medium
Debt (including government securities) and
Money Market Instruments* issued by entities
other than Banks, PFIs and PSUs
0 20 Low
*Includes units of debt and liquid mutual fund schemes. Investment in mutual fund units will
be restricted to 10% of the net assets of the Scheme. Investment may also be made in
instruments issued by NBFCs. The Scheme will not undertake repo transactions in corporate
debt securities. The Scheme will not invest in derivatives and securitized debt.
Financial institutions shall mean public financial institutions as defined under Section 2(72) of
the Companies Act, 2013 and other applicable provisions of the Companies Act, 2013,
read with applicable rules/notifications (including any statutory modification(s) or re-
enactment thereof, for the time being in force).
In accordance with the applicable SEBI circulars issued from time to time, the total
exposure in a particular sector (excluding investments in Bank CDs, CBLO, Government
Securities, T-Bills, short term deposits of scheduled commercial banks and AAA rated
securities issued by Public Financial Institutions and Public Sector Banks) shall not exceed
20% of the net assets of the Scheme. Provided that an additional exposure to financial
services sector (over and above the limit of 20%) not exceeding 10% of the net assets of the
Scheme shall be allowed by way of increase in exposure to Housing Finance Companies
(HFCs). Provided further that the additional exposure to such securities issued by HFCs are
rated AA and above and these HFCs are registered with National Housing Bank (NHB) and
the total Investment/exposure in HFCs shall not exceed 20% of the net assets of the Scheme.
Further, an additional exposure of 5% of the net assets of the scheme has been allowed for
investments in securitized debt instruments based on retail housing loan portfolio and/or
affordable housing loan portfolio.
Pending deployment of the funds in securities in terms of investment objective of the
Scheme, the AMC may park the funds of the Scheme in short term deposits of the
Scheduled Commercial Banks, subject to the guidelines issued by SEBI vide its circular
dated April 16, 2007, as may be amended from time to time.
The Scheme may engage in Short Selling of securities in accordance with the framework
relating to Short Selling and securities lending and borrowing specified by SEBI. The Scheme
shall not deploy more than 20% of its net assets in securities lending and not more than 5%
of the net assets of the Scheme will be deployed in securities lending to any single
counterparty.
14 Axis Banking & PSU Debt Fund
The Scheme retains the flexibility to invest across all the securities in the debt and Money
Markets Instruments (subject to the asset allocation above). The portfolio may hold cash
depending on the market condition.
The portfolio duration will undergo a change according to the expected movement in
interest rates, liquidity conditions and other macro-economic factors and according to the
fund manager’s view. The Scheme may review the pattern of investments based on views
on interest rates and asset liability management needs. However, at all times the portfolio
will adhere to the overall investment objectives of the Scheme.
Subject to the SEBI Regulations, the asset allocation pattern indicated above may change
from time to time, keeping in view market conditions, market opportunities, applicable
regulations and political and economic factors. It must be clearly understood that the
percentages stated above are only indicative and not absolute. These proportions can
vary substantially depending upon the perception of the fund manager; the intention
being at all times to seek to protect the interests of the Unit holders. Such changes in the
investment pattern will be for short term and for defensive considerations only. In case of
deviation, the portfolio would be rebalanced within 30 business days from the date of
deviation. In case the same is not aligned to the above asset allocation pattern within 30
business days, justification shall be provided to the Investment Review Committee and
reasons for the same shall be recorded in writing. The Investment Review Committee shall
then decide on the course of action.
Axis Banking & PSU Debt Fund, an open-ended Debt Scheme predominantly investing in
debt instruments of Banks, Public Sector Undertakings & Public Financial Institutions is a
different scheme offered by Axis Mutual Fund and is not a minor modification of any other
existing scheme/product of Axis Mutual Fund.
15 Axis Banking & PSU Debt Fund
Differentiation with existing open ended Debt schemes of Axis Mutual Fund are as follows:
Data as on October 31, 2019 (in INR crores)
Name of
the existing
scheme
Asset Allocation Pattern
(Under normal circumstances)
Primary Investment Objective &
Investment Strategy Differentiation AUM
No. of
Folios
Axis Short
Term Fund
Instruments
Indicative
Allocation (% of net
assets)
Risk
Profile
(Low/
Medium/
High) Minimu
m
Maximu
m
Debt and
Money Market
instruments
0 100 Low to
Medium
Units issued by
REITs & InvITs 0 10
Medium
to high
Primary Investment Objective:
The scheme will endeavor to
generate stable returns with a low
risk strategy while maintaining
liquidity through a portfolio
comprising of debt and money
market instruments. However, there
can be no assurance that the
investment objective of the scheme
will be achieved.
Investment Strategy:
The scheme proposes to invest in a
diversified portfolio of high quality
debt and money market securities to
generate stable risk adjusted returns
with a low risk strategy.
The Indian debt market is in a phase
of rapid transformation with liquidity
and investment opportunities arising
in various debt segments along with
the introduction of new instruments.
The fund manager will try to allocate
assets of the scheme between
various fixed income securities with
the objective of achieving optimal
risk adjusted returns. After doing a
thorough research on the general
macroeconomic condition, political
environment, systemic liquidity,
inflationary expectations, corporate
performance and other economic
and market considerations the
portfolio duration and credit
An open ended
short term debt
scheme
investing in
instruments such
that the
Macaulay
duration of the
portfolio is
between 1 year
to 3 years
3,100.27 14,133
16 Axis Banking & PSU Debt Fund
exposures will be decided.
The Schemes portfolio construction
will seek to play out the shape of the
yield curve of different issuer classes.
The fund manager will seek to look
for investment opportunities at
different maturities of the same yield
curve (e.g. the government
securities yield curve) as well as look
at the differentiated levels of risk
premium offered by the market to
different class of issuers (e.g. 2 year
yields offered by a government
security, an NBFC and a
manufacturing corporate).
The investment team of the AMC will
carry out rigorous in depth credit
evaluation of the money market and
debt instruments proposed to be
invested in. The credit evaluation will
essentially be a bottom up
approach and include a study of the
operating environment of the issuer,
the past track record as well as the
future prospects of the issuer and the
short term / long term financial
health of the issuer.
Axis
Treasury
Advantag
e Fund
Instruments
Indicative Allocation
(% of net assets)
Risk
Profile
Minimum Maximu
m
Low/Me
dium/Hi
gh
Debt & Money
Market
Instruments
0 100 Low to
Mediu
m
Primary Investment Objective:
The investment objective is to
provide optimal returns and liquidity
to the investors by investing primarily
in a mix of money market and short
term debt instruments which results in
a portfolio having marginally higher
maturity as compared to a liquid
fund at the same time maintaining a
balance between safety and
liquidity. However, there can be no
assurance that the investment
An open ended
low duration
debt scheme
investing in
instruments such
that the
Macaulay
duration of the
portfolio is
between 6 to 12
months
3,610.39 22,898
17 Axis Banking & PSU Debt Fund
objective of the scheme will be
achieved.
Investment Strategy
The risk-return profile of this fund
positions it in between a liquid fund
and short duration income fund. The
portfolio strategy seeks to increase
yield by having a marginally higher
maturity and moderately higher
credit risk as compared to a liquid
fund at the same time maintaining a
balance between safety and
liquidity.
The portfolio construction will seek to
play out the shape of the curve
(overnight – 12 months, 1Year-3Year,
steep/flat/inverted) and
differentiated levels of risk premia
offered by the market to different
class of issuers. E.g. yields for 1Year
instrument issued by a bank, a NBFC,
a manufacturing corporate, a
broking company can differ by as
high as 100-500 basis points even if
all of them are rated equally by the
credit rating agency. Accordingly,
there is a trade-off in terms of their
respective liquidity. In view of the
Fund’s objective of maximizing
returns with maintaining high
liquidity, the portfolio will be
constructed with judicious mix of
instruments issued by the universe of
eligible issuers across the spectrum.
Portfolio maturity (in months) is
determined after analysing the
macro-economic environment
including future course of system
liquidity, interest rates and inflation
18 Axis Banking & PSU Debt Fund
along with other considerations in
the economy and markets.
The investment team of the AMC will
carry out rigorous in depth credit
evaluation of the money market
and debt instruments proposed to
be invested in. The credit evaluation
will essentially be a bottom up
approach and include a study of
the operating environment of the
issuer, the past track record as well
as the future prospects of the issuer
and the short term / long term
financial health of the issuer.
The Macaulay duration of the
portfolio of the Scheme will be
maintained between 6 months - 12
months depending on the interest
rate view. The Scheme stands to
expose to market risk which can get
captured partially by “mark to
market component” thereby
inducing a potential daily volatility.
Also, the Scheme will have a mix of
credits with a moderately higher
credit risk as compared to a liquid
fund. The Scheme will always aim at
controlling risk by carrying a rigorous
credit evaluation of the instruments
proposed to be invested in. The
credit evaluation will be carried out
on the basis of the parameters
mentioned above.
Axis
Dynamic
Bond Fund
Instruments
Indicative
Allocation (% of
net assets)
Risk
Profile
Minimu Maximu Low/
Primary Investment Objective:
The scheme will endeavor to
generate optimal returns while
maintaining liquidity through active
management of a portfolio of debt
and money market instruments.
An open ended
dynamic debt
scheme
investing across
duration
144.64 3089
19 Axis Banking & PSU Debt Fund
m m Medium
/
High
Debt
instruments
including G-
Secs and
corporate debt
0% 100% Low to
Medium
Money market
instruments
0% 100% Low
Units issued by
REITs & InvITs
0 10 Medium
to High
Investment Strategy
Interest rates have a cyclical
movement whereas yields fall, bond
prices rise, while the reverse is true in
the case when interest rates rise. The
investment objective of this scheme
is to maximize risk adjusted returns to
the investor through an active
management of the portfolio, by
elongating the duration of the
portfolio in a falling interest rate
scenario and reducing the duration
at a time when interest rates are
moving up. The fund will be actively
churned to capture price
appreciation and endeavor to
minimize the negative movements in
prices. While long term funds try to
optimize returns in the long term, this
fund will look to micro manage the
portfolio and endeavor to optimize
returns. Active calls on the shape of
the yield curve (sovereign gilt curve
or the corporate bond curve) and
the spread between corresponding
points of different yield curves (say 5y
gilt versus 5y AAA corporate bond)
will be taken to endeavor to
maximize the returns to the investor.
With the discretion to take
aggressive interest rate/duration risk
calls, this could mean investing the
entire net assets in long dated
Government securities and debt
instruments (carrying relatively higher
interest rate risk/duration risk), or on
defensive considerations, entirely in
money market instruments.
Accordingly, the interest rate
20 Axis Banking & PSU Debt Fund
risk/duration risk of the scheme may
change substantially depending
upon the Fund’s call.
The Indian debt market is in a phase
of rapid transformation with liquidity
and investment opportunities arising
in various debt segments along with
the introduction of new instruments.
The fund manager will try to allocate
assets of the scheme between
various fixed income securities with
the objective of achieving optimal
risk adjusted returns. After doing a
thorough research on the general
macroeconomic condition, political
environment, systemic liquidity,
inflationary expectations, corporate
performance and other economic
considerations the portfolio duration
and credit exposures will be
decided.
Axis Gilt
Fund
Instruments
Indicative
Allocation
(% of net
assets)
Risk Profile
(Low/
Medium/
High)
Government
Securities and
Treasury Bills
80-100 Sovereign
Debt & Money
market instruments 0-20
Low to
Medium
Primary Investment Objective:
The Scheme will aim to generate
credit risk-free returns through
investments in sovereign securities
issued by the Central Government
and/or State Government.
Investment Strategy
The Scheme will aim to generate
credit risk-free returns through
investments in sovereign securities
issued by the Central Government
and/or State Government.
The Scheme shall invest in
Government Securities, which
provide reasonable returns generally
construed to be without any Credit
Risk. The Scheme shall invest in
An open ended
debt scheme
investing in
government
securities across
maturity
46.60 1,045
21 Axis Banking & PSU Debt Fund
various State and Central
Government securities including
securities which are supported by
the ability to borrow from the
treasury or supported only by the
sovereign guarantee or of the state
government or supported by GOI
/state government in any other way
as may be permitted by SEBI. It may
also invest in repos/ reverse repos in
such securities, as and when
permitted by RBI.
The Scheme will also invest in money
market securities from time to time
upto the prescribed limit. Investment
views/decisions will be based on
analysis of macro-economic factors
to estimate the direction of interest
rates and level of liquidity and will be
taken on the basis of factors like,
prevailing interest rate scenario,
Government borrowing program,
level of liquidity in the banking
system, inflation level, returns offered
relative to alternative investments
opportunities, quality of the
security/instrument, maturity profile
of the instrument, liquidity of the
security and any other factor
considered relevant in the opinion of
the fund manager.
The Scheme will purchase securities
in the public offerings, as well as
those traded in the secondary
markets. On occasions, if deemed
appropriate, the Scheme may also
participate in auction of
Government Securities. The Mutual
Fund will seek to underwrite issuance
22 Axis Banking & PSU Debt Fund
of Government Securities if and
when permitted by SEBI/RBI and
subject to the prevailing rules and
regulations specified in this respect
and may also participate in their
auction from time to time.
The Scheme may also use derivatives
instruments like Interest Rate Swaps,
Forward Rate Agreements or such
other derivative instruments as may
be introduced from time to time for
the purpose of hedging and portfolio
balancing within the limits permitted
by the Regulations from time to time.
Axis
Strategic
Bond Fund
Instruments Normal Allocation
(% of net assets)
Risk
Profile
Minimu
m
Maximu
m
Debt and Money
Market instruments
0 100 Low to
Mediu
m
Units issued by
REITs & InvITs
0 10 Mediu
m to
High
Primary Investment Objective:
The Scheme will endeavor to
generate optimal returns in the
medium term while maintaining
liquidity of the portfolio by investing
in debt and money market
instruments.
Investment Strategy:
The Scheme proposes to invest in a
diversified portfolio of debt and
money market securities to generate
optimal risk adjusted returns in the
medium term.
The Indian debt market is in a phase
of rapid transformation with liquidity
and investment opportunities arising
in various debt segments along with
the introduction of new instruments.
The fund management team is
going to take a medium term view
on the interest rate structure. While
determining the portfolio duration,
the fund manager will keep in mind
the state of the local economy,
An open ended
medium term
debt scheme
investing in
instruments such
that the
Macaulay
duration of the
portfolio is
between 3 years
to 4 years
1,212.00 9,643
23 Axis Banking & PSU Debt Fund
inflation numbers as well as the
global economic scenario.
The fund manager will try to allocate
assets of the scheme between
various fixed income securities taking
into consideration the prevailing
interest rate scenario, the liquidity of
the different instruments and
maintain a diversified portfolio with
the objective of achieving optimal
risk adjusted returns. While investing
the fund manager will keep in mind
the yield structure of different asset
classes (e.g. the sovereign yield
curve and the corporate bond yield
curve) as well as kinks within a
particular yield curve (e.g. the
different points of the sovereign yield
curve). The fund will maintain a
diversified portfolio with the
objective of achieving optimal risk
adjusted returns in the medium term.
After doing a thorough research on
the general macroeconomic
condition, political environment,
systemic liquidity, inflationary
expectations, corporate
performance and other economic
considerations the portfolio duration
and credit exposures will be
decided.
Axis Credit
Risk Fund
Instruments
Indicative
Allocation
(% of net assets)
Risk
Profile
Minimu
m Maximum
High/
Mediu
m/Low
Primary Investment Objective:
To generate stable returns by
investing in debt & money market
instruments across the yield curve &
credit spectrum. However, there is no
assurance or guarantee that the
investment objective of the Scheme
will be achieved. The Scheme does
An open ended
debt scheme
predominantly
investing in AA
and below
rated corporate
bonds
(excluding AA+
1,336.66 11,985
24 Axis Banking & PSU Debt Fund
Corporate Debt
rated AA^ and
below
65% 100% Low to
Mediu
m
Other Debt &
Money Market
instruments
0% 35% Low to
Mediu
m
Units issued by
REITs & InvITs
0% 10% Mediu
m to
High
not assure or guarantee any returns.
Investment Strategy:
The Scheme to generate stable
returns by investing in debt & money
market instruments across the yield
curve & credit spectrum. However,
there is no assurance or guarantee
that the investment objective of the
Scheme will be achieved. The
Scheme does not assure or
guarantee any returns. The fund
manager will endeavour, through a
process of robust credit risk
assessment & research, to identify
optimum credit opportunities in the
market and invest in such instruments
offering higher yields at acceptable
levels of risk.
Axis Credit Risk Fund is a fixed
income fund which will endeavor to
generate stable returns by investing
in debt & money market instruments
across the yield curve & credit
spectrum. This fund will have the
ability to maintain a relatively higher
exposure to fixed income instruments
which are not AAA & equivalent.
The fund endeavors to take
advantage of opportunities arising
from the credit spectrum. Historically,
the spread between AAA and AA is
dynamic and changes over time.
The fund manager can dynamically
change the portfolio credit
composition to take advantage of
these opportunities.
The fund proposes to take
rated corporate
bonds)
25 Axis Banking & PSU Debt Fund
advantage of opportunities arising
from the credit spectrum. Some of
the strategies that we may follow are
as follows:
1) Opportunity from credit spreads
between AAA and AA rated fixed
income instruments
2) Opportunity from migration of
ratings
The above are some examples of
credit strategies currently available
in the Indian fixed income markets.
The fund will endeavor to use other
credit strategies across the spectrum
as & when they are available in the
Indian markets.
Further there is an opportunity from
the migration of ratings. Through the
Axis credit process, we endeavor to
avoid taking exposures where there
is a risk of downgrade and take
exposure in cases where we think
there is a potential for an upgrade.
The fund will aim to take advantage
of these opportunities from credit
spreads as well as potential from
rating migrations.
The fund manager will try to allocate
assets of the scheme between
various fixed income instruments
taking into consideration the
prevailing interest rate scenario, the
liquidity of the different instruments
and maintain a diversified portfolio
with the objective of achieving
stable risk adjusted returns. While
investing the fund manager will keep
26 Axis Banking & PSU Debt Fund
in mind the yield structure of different
asset classes (e.g. the sovereign yield
curve and the corporate bond yield
curve) as well as kinks within a
particular yield curve (e.g. the
different points of the sovereign yield
curve).
After doing a thorough research on
the general macroeconomic
condition, political environment,
systemic liquidity,
inflationary expectations, corporate
performance and other economic
considerations the portfolio duration
and credit exposures will be
decided.
Axis
Banking &
PSU Debt
Fund
Instruments
Indicative Allocation
(% of net assets) Risk Profile
Minimum Maximum (Low/Medi
um /High)
Debt &
Money
Market
Instruments
issued by
Banks,
Public
Financial
Institutions
(PFIs) and
Public
Sector
Undertakin
gs (PSUs)
80 100 Low to
Medium
Debt
(including
governmen
t securities)
and Money
Market
0 20 Low
Primary Investment Objective:
To generate stable returns by
investing predominantly in debt &
money market instruments issued by
Banks, Public Sector Units (PSUs) &
Public Financial Institutions (PFIs). The
Scheme shall endeavor to generate
optimum returns with low credit risk.
Investment Strategy:
The Scheme aims to generate stable
returns by investing predominantly in
debt & money market instruments
issued by Banks, Public Financial
Institutions (PFIs) and Public Sector
Undertakings (PSUs). The Scheme
shall endeavor to generate optimum
returns with low credit risk.
Investment in debt & money market
instruments issued by Banks, PFIs,
PSUs, Treasury Bills & Government
Securities is primarily with the
intention of maintaining high credit
quality & liquidity. Atleast 70% of the
An Open ended
Debt Scheme
predominantly
investing in debt
instruments of
Banks, Public
Sector
Undertakings &
Public Financial
Institutions.
9,960.78 17,137
27 Axis Banking & PSU Debt Fund
Instruments
issued by
entities
other than
Banks, PFIs
and PSUs
net assets of the Scheme shall be
invested in securities rated
AAA/A1+/Sov and equivalent.
Balance may be invested in
securities rated below AAA/A1+/Sov
and equivalent.
The investment team of the AMC will
carry out rigorous in depth credit
evaluation of the Debt & Money
Market Instruments proposed to be
invested in. The credit evaluation will
essentially be a bottom up
approach and include a study of the
operating environment of the issuer,
the past track record as well as the
future prospects of the issuer and the
short term/ long term financial health
of the issuer.
Financial institutions shall mean
public financial institutions as defined
under Section 2(72) of the
Companies Act, 2013 and other
applicable provisions of the
Companies Act, 2013, read with
applicable rules/notifications
(including any statutory
modification(s) or re-enactment
thereof, for the time being in force).
Public Sector Undertaking (PSU)
means a company in which more
than fifty per cent of the paid-up
share capital is held by either the
Central Government, or by any State
Government(s) or partly by the
Central Government and partly by
one or more State Governments and
includes a company which is a
subsidiary of a Government
28 Axis Banking & PSU Debt Fund
company as thus defined and/or A
PSU is a company in which the
Central Government or one or more
State Government(s) either singly or
together, exercise control over
management or exercise power to
appoint majority of directors.
Axis
Corporate
Debt Fund
Instruments Normal Allocation
(% of net assets)
Risk
Profile
Minimu
m
Maximu
m
Corporate Debt
rated AA+ and
above
80% 100% Low to
Mediu
m
Other Debt &
Money Market
Instruments
0% 20% Low
Units issued by
REITs & InvITs
0% 10% Mediu
m to
High
Primary Investment Objective:
The Scheme seeks to provide steady
income and capital appreciation by
investing in corporate debt. There is
no assurance or guarantee that the
objectives of the Scheme will be
realized.
Investment Strategy:
The investment objective of the
Scheme is to generate regular
income and capital appreciation by
investing in corporate debt across
maturities and ratings. The Scheme
may also invest in money market
instruments. There is no assurance or
guarantee that the objectives of the
Scheme will be realized.
The Scheme will predominantly invest
in securities issued by corporate
(both private sector and public
sectors) including banks and
financial institutions across maturities
/ yield curve and ratings. It will look
for opportunities from credit spreads
among the range of available
corporate debt instruments by
cautiously managing the excess risk
on its corporate investments.
The portfolio maturity will be
determined after analyzing the
macro-economic environment
An open ended
debt scheme
predominantly
investing in AA+
and above
rated corporate
bonds
177.14 4,754
29 Axis Banking & PSU Debt Fund
including future course of system
liquidity, interest rates and inflation
along with other considerations in
the economy and markets.
Emphasis may be given to choosing
securities, which, in the opinion of
the Fund Manager, are less prone to
default risk, while bearing in mind the
liquidity needs arising out of the
open-ended nature of the Scheme.
The investment team of the AMC will
carry out rigorous in depth credit
evaluation of the money market and
debt instruments proposed to be
invested in. The credit evaluation will
essentially be a bottom up
approach and include a study of the
operating environment of the issuer,
the past track record as well as the
future prospects of the issuer and the
short term / long term financial
health of the issuer.
Axis Liquid
Fund
Instruments
Indicative
Allocation (% of net
assets)
Risk
Profile
Minimu
m
Maximu
m
Low/
Medium
/ High
Money market
instruments
(including cash,
repo, CPs, CDs,
Treasury Bills and
Government
securities) with
maturity/residual
maturity up to 91
50 100 Low
Primary Investment Objective:
To provide a high level of liquidity
with reasonable returns
commensurating with low risk
through a portfolio of money market
and debt securities. However, there
can be no assurance that the
investment objective of the scheme
will be achieved.
Investment Strategy:
The Fund shall be managed
according to the investment
objective - to generate reasonable
returns commensurate with low risk.
As this Scheme is positioned at the
lowest level of risk-return matrix, it is
An Open ended
Liquid Scheme
29,154.81 1,17,1
20
30 Axis Banking & PSU Debt Fund
days
Debt instruments
(including
floating rate debt
instruments and
securitized debt)
with maturity
/residual
maturity/
weighted
average maturity
up to 91 days
0 50 Low to
medium
usually aimed to meet the needs of
the Investors who want to deploy
their funds for a short period of time.
The composition of Indian debt
market (both primary and
secondary) at the front end of the
yield curve is dominated by money
market instruments. Accordingly, the
Scheme will invest predominantly in
money market securities with some
tactical allocation towards other
debt securities to enhance the
portfolio return. The portfolio will be
structured to incorporate asset-
liability management based on
seasonal/historic trends of liabilities.
Given the usually observed nature of
the profile of liabilities, the fund shall
seek to maintain high liquidity with
the use of cash/cash equivalent
assets.
As yield curve has been observed to
be flat (overnight to 3 months) during
most of the times, attempt will be
made to space out the assets
uniformly across the maturity
buckets. However, any irregularity in
the shape of the curve
(steep/inverted) will be played out in
the portfolio construction after
analysing the macro-economic
environment including future course
of system liquidity, interest rates and
inflation along with other
considerations in the economy and
markets.
The investment team of the AMC will
carry out rigorous in depth credit
31 Axis Banking & PSU Debt Fund
evaluation of the money market and
debt instruments proposed to be
invested in. The credit evaluation will
essentially be a bottom up
approach and include a study of the
operating environment of the issuer,
the past track record as well as the
future prospects of the issuer and the
short term / long term financial
health of the issuer.
Axis Ultra
Short Term
Fund
Instruments Indicative Allocation
(% of net assets)
Risk Profile
Minimum Maximu
m
High/
Medium/
Low
Debt and
Money
Market
Instruments*
0% 100% Low to
Medium
Primary Investment Objective:
The investment objective of the
Scheme is to generate regular
income and capital appreciation by
investing in a portfolio of short term
debt and money market instruments
with relatively lower interest rate risk
such that Macaulay duration of the
portfolio is between 3 months and 6
months.
Investment Strategy:
The investment objective of the
Scheme is to generate regular
income and capital appreciation by
investing in a portfolio of short term
debt and money market instruments
with relatively lower interest rate risk.
The Scheme will maintain the
Macaulay duration of the portfolio
between 3 months and 6 months.
The Scheme endeavors to maximize
return while maintaining higher
liquidity. The portfolio maturity will be
determined after analyzing the
macro-economic environment
including future course of system
liquidity, interest rates and inflation
along with other considerations in
An open ended
ultra-short term
debt scheme
investing in
instruments such
that the
Macaulay
duration of the
portfolio is
between 3
months and 6
months
3,019.03 26,315
32 Axis Banking & PSU Debt Fund
the economy and markets.
The Scheme is likely to have higher
maturity than a liquid fund. However,
the Macaulay Duration of the
portfolio for the Scheme will be
maintained between 3 months to 6
months depending on the interest
rate view. As a result, the Scheme
stands to expose to market risk which
can get captured partially by mark
to market component thereby
inducing a potential daily volatility.
Also, the Scheme will have a mix of
credits with a moderately higher
credit risk as compared to a liquid
fund. The Scheme will always aim at
controlling risk by carrying a rigorous
credit evaluation of the instruments
proposed to be invested in. The
credit evaluation will be carried out
on the basis of the parameters
mentioned above.
The investment team of the AMC will
carry out rigorous in depth credit
evaluation of the money market and
debt instruments proposed to be
invested in. The credit evaluation will
essentially be a bottom up
approach and include a study of the
operating environment of the issuer,
the past track record as well as the
future prospects of the issuer and the
short term / long term financial
health of the issuer.
Axis
Overnight
Fund
Instruments Indicative Allocation
(% of net assets)
Risk Profile
Minimum Maximu
m
High/
Medium/
Low
Investment Objective
The investment objective of the
Scheme is to provide reasonable
returns commensurate with very low
An open ended
debt scheme
investing in
instruments with
a maturity of up
469.20 718
33 Axis Banking & PSU Debt Fund
Overnight
securities
*@
0% 100% Low
interest rate risk and providing a high
level of liquidity, through investments
made primarily in overnight securities
having maturity/residual maturity of 1
business day.
Investment Strategy:
The investment objective of the
Scheme is to generate returns by
investing in debt and money market
instruments with overnight maturity.
The total assets of the Scheme will be
invested in debt securities and
money market instruments maturing
on or before next Business Day. In
case of securities with put and call
options (daily or otherwise) the
residual maturity (deemed or actual)
shall be on or before the next
Business Day. Investments under the
Scheme would be made
predominantly in Tri Party Repos,
overnight reverse repos and fixed
income securities/instruments with a
maturity of 1 business day.
The Scheme may also invest in units
of Overnight Schemes of other
mutual funds.
to 1 business
day.
Axis Money
Market
Fund
Instruments Indicative Allocation
(% of net assets)
Risk Profile
Minimum Maximu
m
High/
Medium/
Low
Money
Market
Instruments
0% 100% Low
Investment Objective
To generate regular income through
investment in a portfolio comprising
of money market instruments.
Investment Strategy:
The net assets of the scheme will be
invested in money market
instruments. The scheme will seek to
optimize the risk return proposition for
the benefit of investors.
The Scheme
invests in
instruments with
a maturity of
upto 1 year.
392.30 700
34 Axis Banking & PSU Debt Fund
The investment process will focus on
macro-economic research, credit
risk and liquidity management. The
scheme will maintain a judicious mix
of short term and medium term
instruments based on the mandates
of the scheme. As part of credit risk
assessment, the scheme will also
apply its credit evaluation process
besides taking guidance from ratings
of rating agencies. In order to
maintain liquidity, the scheme will
maintain a reasonable proportion of
the Scheme's investments in
relatively liquid investments.
35 Axis Banking & PSU Debt Fund
D. WHERE WILL THE SCHEME INVEST?
The corpus of the Scheme will be invested in Debt Instruments, Money Market Instruments and
other permitted securities which will include but not limited to:
Debt Instruments & Money Market Instruments
Certificate of Deposit
Certificate of Deposit (CD) is a negotiable money market instrument issued by scheduled
commercial banks and select Public Financial Institutions that have been permitted by the RBI
to raise short term resources. The maturity period of CDs issued by the Banks is between 7 days
to one year, whereas, in case of FIs, maturity is one year to 3 years from the date of issue.
Commercial Paper
Commercial Paper (CP) is an unsecured negotiable money market instrument issued in the
form of a promissory note, generally issued by the corporates, primary dealers and Public
Financial Institutions as an alternative source of short term borrowings. CP is traded in
secondary market and can be freely bought and sold before maturity.
Treasury Bill
Treasury Bills (T-Bills) are issued by the Government of India to meet their short term borrowing
requirements. T-Bills are issued for maturities of 14 days, 91 days, 182 days and 364 days.
The Scheme may also invest in Cash Management Bill (CMB) issued by the Government of
India to meet their short term borrowing requirements. CMB are generally issued for maturities
of less than 91 days.
Commercial Usance Bills
Bill (bills of exchange/promissory notes of public sector and private sector corporate entities)
Rediscounting, usance bills and commercial bills.
Repos
Repo (Repurchase Agreement) or Reverse Repo is a transaction in which two parties agree to
sell and purchase the same security with an agreement to purchase or sell the same security at
a mutually decided future date and price. The transaction results in collateralized borrowing or
lending of funds. Presently in India, corporate debt securities, Government Securities, State
Government Securities and T-Bills are eligible for Repo/ Reverse Repo.
Tri-party repo means a repo contract where a third entity (apart from the borrower and
lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the repo
to facilitate services like collateral selection, payment and settlement, custody and
management during the life of the transaction.
The Scheme may undertake repo or reverse repo transactions in accordance with the
directions issued by RBI and SEBI from time to time. Such investment shall be made subject to
the guidelines which may be prescribed by the Board of Directors of the Asset Management
Company and Trustee Company.
Securities created and issued by the Central and State Governments as may be permitted by
RBI, securities guaranteed by the Central and State Governments (including but not limited to
coupon bearing bonds, zero coupon bonds and treasury bills). State Government securities
(popularly known as State Development Loans or SDLs) are issued by the respective State
Government in co-ordination with the RBI.
Non Convertible Debentures and Bonds
Non convertible debentures as well as bonds are securities issued by companies / institutions
promoted / owned by the Central or State Governments and statutory bodies which may or
may not carry a Central/State Government guarantee, Public and private sector banks, all
36 Axis Banking & PSU Debt Fund
India Financial Institutions and Private Sector Companies. These instruments may have fixed or
floating rate coupon. These instruments may be secured or unsecured against the assets of the
Company and generally issued to meet the short term and long term fund requirements.
The Scheme may also invest in the non-convertible part of convertible debt securities.
The Scheme may also invest in Treasury Bills & Government Securities, Repo & TREPS. Investment
may also be made in instruments issued by NBFCs.
Short Term Deposits
Pending deployment of funds as per the investment objective of the Scheme, the funds may
be parked in short term deposits of the Scheduled Commercial Banks, subject to guidelines
and limits specified by SEBI.
Units of Mutual Fund schemes
The Scheme may invest in other schemes managed by the AMC or in the schemes of any
other mutual funds in conformity with the investment objective of the Scheme and in terms of
the prevailing SEBI (MF) Regulations.
The securities / instruments mentioned above and such other securities the Scheme is
permitted to invest in could be listed, unlisted, privately placed, secured, unsecured, rated or
unrated and of any maturity.
The securities may be acquired through initial public offering (IPOs), secondary market, private
placement, rights offers, negotiated deals, etc. Further investments in debentures, bonds and
other fixed income securities will be in instruments which have been assigned investment grade
rating by the Credit Rating Agency.
Investment in unrated debt instruments shall be subject to complying with the norms as
specified by Board from time to time.
For applicable regulatory investment limits please refer paragraph "Investment Restrictions”.
The Fund Manager reserves the right to invest in such securities as may be permitted from time
to time and which are in line with the investment objectives of the Scheme.
E. WHAT ARE THE INVESTMENT STRATEGIES?
The Scheme aims to generate stable returns by investing predominantly in debt & money
market instruments issued by Banks, Public Financial Institutions (PFIs) and Public Sector
Undertakings (PSUs). The Scheme shall endeavor to generate optimum returns with low credit
risk.
Investment in debt & money market instruments issued by Banks, PFIs, PSUs, Treasury Bills &
Government Securities is primarily with the intention of maintaining high credit quality &
liquidity. Atleast 70% of the net assets of the Scheme shall be invested in securities rated
AAA/A1+/Sov and equivalent. Balance may be invested in securities rated below
AAA/A1+/Sov and equivalent.
The investment team of the AMC will carry out rigorous in depth credit evaluation of the Debt
& Money Market Instruments proposed to be invested in. The credit evaluation will essentially
be a bottom up approach and include a study of the operating environment of the issuer, the
past track record as well as the future prospects of the issuer and the short term/ long term
financial health of the issuer.
Financial institutions shall mean public financial institutions as defined under Section 2(72) of
the Companies Act, 2013 and other applicable provisions of the Companies Act, 2013, read
37 Axis Banking & PSU Debt Fund
with applicable rules/notifications (including any statutory modification(s) or re-enactment
thereof, for the time being in force).
Public Sector Undertaking (PSU) means a company in which more than fifty per cent of the
paid-up share capital is held by either the Central Government, or by any State Government(s)
or partly by the Central Government and partly by one or more State Governments and
includes a company which is a subsidiary of a Government company as thus defined and/or A
PSU is a company in which the Central Government or one or more State Government(s) either
singly or together, exercise control over management or exercise power to appoint majority of
directors.
Portfolio Turnover
The Scheme being an open-ended Scheme, it is expected that there would be a number of
Subscriptions and Redemptions on a daily basis. Further, in the debt market, trading
opportunities may arise due to changes in system liquidity, interest rate policy announced by
RBI, shifts in the yield curve, credit rating changes or any other factors. In the opinion of the
fund manager these opportunities can be played out to enhance the total return of the
portfolio, which will result in increase in portfolio turnover. There may be an increase in
transaction cost such as brokerage paid, if trading is done frequently. However, the cost would
be negligible as compared to the total expenses of the Scheme. Frequent trading may
increase the profits which will offset the increase in costs. The fund manager will endeavour to
optimize portfolio turnover to maximize gains and minimize risks keeping in mind the cost
associated with it. However, it is difficult to estimate with reasonable measure accuracy, the
likely turnover in the portfolio of the Scheme. The Scheme has no specific target relating to
portfolio turnover
Debt and Money Markets in India
The Indian debt market is today one of the largest in Asia and includes securities issued by the
Government (Central & State Governments), public sector undertakings, other government
bodies, financial institutions, banks and corporates. Government and public sector enterprises
are the predominant borrowers in the markets. The major players in the Indian debt markets
today are banks, financial institutions, mutual funds, insurance companies, primary dealers,
trusts, pension funds and corporates. The Indian debt market is the largest segment of the
Indian financial markets. The debt market comprises broadly two segments, viz. Government
Securities market or G-Sec market and corporate debt market. The latter is further classified as
market for PSU bonds and private sector bonds.
The Government Securities (G-Secs) market, consists of G-Sec outstanding of Rs. 58,19,997.04 cr
as on Sep 03, 2019 (State Govt securities - Rs 24,02,242 cr, Source: CCIL), is the oldest and the
largest component (50% share in market cap) of the Indian debt market in terms of market
capitalization, outstanding securities and trading volumes. The G-Secs market plays a vital role
in the Indian economy as it provides the benchmark for determining the level of interest rates
in the country through the yields on the Government Securities which are referred to as the risk-
free rate of return in any economy. Over the years, there have been new products introduced
by the RBI like zero coupon bonds, floating rate bonds, inflation indexed bonds, etc.
The corporate bond market, in the sense of private corporate sector raising debt through
public issuance in capital market, is only an insignificant part of the Indian Debt Market. The
market capitalization of corporate debt market as on March 31,2016 is Rs. 4,35,743.204 Cr
(Source: NSE). A large part of the issuance in the non-Government debt market is currently on
private placement basis.
The money markets in India essentially consist of the call money market (i.e. market for
overnight and term money between banks and institutions), repo transactions (temporary sale
with an agreement to buy back the securities at a future date at a specified price),
commercial papers (CPs, short term unsecured promissory notes, generally issued by
corporates), certificate of deposits (CDs, issued by banks) and Treasury Bills (issued by RBI). In a
predominantly institutional market, the key money market players are banks, financial
38 Axis Banking & PSU Debt Fund
institutions, insurance companies, mutual funds, primary dealers and corporates. In money
market, activity levels of the Government and nongovernment debt vary from time to time.
Instruments that comprise a major portion of money market activity include but not limited to:
• Overnight Call
• Tri Party Repo
• Repo/Reverse Repo Agreement
• Treasury Bills
• Government securities with a residual maturity of < 1 year.
• Commercial Paper
• Certificate of Deposit
Apart from these, there are some other options available for short tenure investments that
include MIBOR linked debentures with periodic exit options and other such instruments. Though
not strictly classified as Money Market Instruments, PSU / DFI / Corporate paper with a residual
maturity of < 1 year, are actively traded and offer a viable investment option.
The market has evolved in past 2-3 years in terms of risk premia attached to different class of
issuers. Bank CDs have clearly emerged as popular asset class with increased acceptability in
secondary market. PSU banks trade the tightest on the back of comfort from majority
government holding. Highly rated manufacturing companies also command premium on
account of limited supply. However, there has been increased activity in papers issued by
private/foreign banks/NBFCs/companies in high-growth sector due to higher yields offered by
them. Even though companies across these sectors might have been rated on a same scale,
the difference in the yield on the papers for similar maturities reflects the perception of their
respective credit profiles.
The following table gives approximate yields prevailing on November 1, 2019 on some of the
instruments and further illustrates this point.
Instrument Current Yield range (%)
Tri-party Repo 4.90%-5.10%
Repo 4.90%-5.10%
3M T-bill 5.04%-5.10%
1Y T-bill 5.25%-5.30%
10Y G-sec 6.40%-6.45%
3m PSU Bank CD 5.10%-5.15%
3m Manufacturing co. CP 5.20%-5.30%
1Y PSU Bank CD 5.55%-5.60%
1Y NBFC CP 6.50%-6.65%
1Y Manufacturing co. CP 6.00%-6.10%
5Y AAA Institutional Bond 6.80%-6.85%
10Y AAA Institutional Bond 7.5%-7.55%
Source: Bloomberg
These yields are indicative and do not indicate yields that may be obtained in future as interest
rates keep changing consequent to changes in macro-economic conditions and RBI policy.
The price and yield on various debt instruments fluctuate from time to time depending upon
the macro economic situation, inflation rate, overall liquidity position, foreign exchange
scenario etc. Also, the price and yield vary according to maturity profile, credit risk etc.
Risk Control
Risk management is going to be an integral part of the investment process. Effective risk
management is critical to fund management for achieving financial soundness. The investment
team of the AMC will carry out rigorous in depth credit evaluation of the money market and
debt instruments (other than G-Secs) proposed to be invested in. The credit evaluation will
essentially be a bottom up approach and include a study of the operating environment of the
39 Axis Banking & PSU Debt Fund
issuer, the past track record as well as the future prospects of the issuer and the short term /
long term financial health of the issuer. The AMC would incorporate adequate safeguards for
controlling risks in the portfolio construction process, which would be periodically evaluated.
Investments by the Scheme shall be made as per the investment objectives of the Scheme
and provisions of SEBI regulations. AMC has implemented the Bloomberg Portfolio Order
Management System as Front Office System (FOS). The system has incorporated all the
investment restrictions as per SEBI guidelines and “soft” warning alerts at appropriate levels for
preemptive monitoring. The system enables identifying & measuring the risk through various risk
measurement tools like various risk ratios, average duration and analyzes the same and acts in
a preventive manner.
F. FUNDAMENTAL ATTRIBUTES
Following are the Fundamental Attributes of the Scheme, in terms of Regulation 18 (15A) of the
SEBI (MF) Regulations:
(i) Type of a scheme:
An open ended debt scheme predominantly investing in debt instruments of banks, Public
Sector Undertakings & Public Financial Institutions.
(ii) Investment Objective
a) Main Objective:
To generate stable returns by investing predominantly in debt & money market instruments
issued by Banks, Public Sector Units (PSUs) & Public Financial Institutions (PFIs). The Scheme
shall endeavor to generate optimum returns with low credit risk.
b) Investment Pattern:
Please refer to sub - section C ‘How will the Scheme Allocate its Assets?’ under the section II
‘INFORMATION ABOUT THE SCHEME’.
(iii) Terms of Issue
o Liquidity provisions such as listing, repurchase, redemption.
o Aggregate fees and expenses charged to the Scheme.
o Any safety net or guarantee provided.
In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustees shall ensure
that no change in the fundamental attributes of the Scheme and the Plan(s) / Option(s)
thereunder or the trust or fee and expenses payable or any other change which would modify
the Scheme and the Plan(s) / Option(s) thereunder and affect the interests of Unit holders is
carried out unless:
A written communication about the proposed change is sent to each Unit holder and an
advertisement is given in one English daily newspaper having nationwide circulation as well
as in a newspaper published in the language of the region where the Head Office of the
Mutual Fund is situated; and
The Unit holders are given an option for a period of 30 days to exit at the prevailing Net
Asset Value without any Exit Load.
G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE?
NIFTY Banking & PSU Debt Index
The Scheme intends to invest in a portfolio of instruments (debt and money market instruments
issued by Banks, PSU, PFIs etc.) which is best captured in NIFTY Banking PSU Debt Index. The
constituents and weights of the index as on September 2019 are as under: :
Constituents Weights (%)
NIFTY All Maturity CD Index 25%
NIFTY Banking & PSU Short Duration Bond
Index
40%
NIFTY Banking & PSU Medium Duration Bond
Index
15%
40 Axis Banking & PSU Debt Fund
NIFTY Banking & PSU Medium to Long
Duration Bond Index
20%
Total 100
Hence, NIFTY Banking PSU Debt Index being the most appropriate of the available
benchmarks, is being used as a benchmark for the Scheme.
The Trustee/AMC reserves the right to change the benchmark for the evaluation of the
performance of the Scheme from time to time, keeping in mind the investment objective of
the Scheme and the appropriateness of the benchmark, subject to SEBI guidelines and other
prevalent guidelines.
H. WHO MANAGES THE SCHEME?
Name of
Fund
Manager
Age and
Qualification
Experience of the Fund
Manager in the last 10
years
Names of other
schemes under his
management
Tenure as
Fund
Manager of
the Scheme
Mr. Aditya
Pagaria
34 years,
Bachelor in
Management
Studies, Post
Graduate
Diploma in
Business
Management
Axis Asset
Management
Company Ltd. (Fund
Manager - Fixed
Income) - (August 1,
2016 till date)
ICICI Prudential Asset
Management
Company Ltd. (Fund
Manager -Fixed
Income) - (Nov. 30,
2011 - July 26, 2016)
(Operations)- (May 03,
2007 - Nov. 29, 2011)
Axis Treasury
Advantage Fund
(along with Mr.
Devang Shah), Axis
Liquid Fund (along
with Mr. Devang
Shah), Axis Equity
Advantage Fund -
Series 1 and Series 2
(along with Mr.
Shreyash Devalkar),
Axis Banking & PSU
Debt Fund, Axis
Ultra Short Term
Fund, Axis
Overnight Fund
and Axis Money
Market Fund (along
with Mr. Devang
Shah).
3 years
I. WHAT ARE THE INVESTMENT RESTRICTIONS?
Pursuant to Regulations, specifically the Seventh Schedule and amendments thereto, the
following investment restrictions are currently applicable to the Scheme:
1. The Scheme shall not invest more than 10% of its NAV in debt instruments comprising money
market instruments and non-money market instruments issued by a single issuer, which are
rated not below investment grade by a credit rating agency authorized to carry out such
activity under the SEBI Act, 1992. Such investment limit may be extended to 12% of the NAV
of the Scheme with the prior approval of the Board of Trustee and the Board of Directors of
AMC.
Provided that such limit shall not be applicable for investment in Government Securities,
treasury bills and collateralized borrowing and lending obligations.
Provided further that investments within such limit can be made in the mortgaged backed
securitised debt, which are rated not below investment grade by a credit rating agency,
registered with SEBI.
41 Axis Banking & PSU Debt Fund
2. The Scheme shall not invest in unlisted debt instruments including commercial papers,
except Government Securities, money market instruments and derivative products such as
Interest Rate Swaps, Interest Rate Futures, etc. which are used by mutual fund for hedging.
Provided that the Scheme may invest in unlisted non-convertible debentures up to a
maximum of 10% of the debt portfolio of the Scheme subject to such conditions as may be
specified by the Board from time to time:
Provided further that the Scheme shall comply with the norms under this clause within the
time and in the manner as may be specified by the Board:
Provided further that the norms for investments by the Scheme in unrated debt instruments
shall be specified by the Board from time to time.
3. The investment by the Scheme in the following instruments shall not exceed 10% of the
debt portfolio of the scheme and the group exposure in such instruments shall not exceed
5% of the debt portfolio of the scheme:
a. Unsupported rating of debt instruments (i.e. without factoring-in credit enhancements)
is below investment grade and
b. Supported rating of debt instruments (i.e. after factoring-in credit enhancement) is
above investment grade.
These limits shall not be applicable on investments in securitized debt instruments, as
defined in SEBI (Public Offer and Listing of Securitized Debt Instruments) Regulations 2008.
The provisions shall be effective for all fresh investments with effect from January 1, 2020.
4. Investment in debt instruments, having credit enhancements backed by equity shares
directly or indirectly, shall have a minimum cover of 4 times considering the market value of
such shares.
The provisions shall be effective for all fresh investments with effect from January 1, 2020.
5. The Scheme may invest in other schemes of the Mutual Fund or any other mutual fund
without charging any fees, provided the aggregate inter-scheme investment made by all
the schemes under the same management or in schemes under the management of any
other asset management company shall not exceed 5% of the Net Asset Value of the Fund.
6. The Scheme shall not make any investment in :
any unlisted security of an associate or group company of the sponsor; or
any security issued by way of private placement by an associate or group company of
the sponsor; or
the listed securities of group companies of the sponsor which is in excess of 25% of the
net assets.
7. The Mutual Fund shall get the securities purchased transferred in the name of the Fund on
account of the concerned Scheme, wherever investments are intended to be of a long-
term nature.
8. Transfer of investments from one scheme to another scheme in the same Mutual Fund is
permitted provided:
a) such transfers are done at the prevailing market price for quoted instruments on spot
basis (spot basis shall have the same meaning as specified by a Stock Exchange for
spot transactions); and
b) the securities so transferred shall be in conformity with the investment objective of the
Scheme to which such transfer has been made.
9. The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases
of purchases, take delivery of relevant securities and in all cases of sale, deliver the
securities:
42 Axis Banking & PSU Debt Fund
Provided that the Mutual Fund may engage in Short Selling of securities in accordance with
the framework relating to Short Selling and securities lending and borrowing specified by
SEBI.
Provided further that the Mutual Fund may enter into Derivatives transactions in a
recognized stock exchange, subject to the framework specified by SEBI.
Provided further that sale of government security already contracted for purchase shall be
permitted in accordance with the guidelines issued by the RBI in this regard.
10. The Scheme shall not make any investment in any fund of funds scheme.
11. Pending deployment of the funds of the Scheme in securities in terms of the investment
objective of the Scheme, the AMC may park the funds of the Scheme in short term
deposits of scheduled commercial banks, subject to the guidelines issued by SEBI.
The Scheme will comply with the following guidelines/restrictions for parking of funds in short
term deposits:
i. “Short Term” for such parking of funds by the Scheme shall be treated as a period not
exceeding 91 days. Such short-term deposits shall be held in the name of the Scheme.
ii. The Scheme shall not park more than 15% of the net assets in short term deposit(s) of all
the scheduled commercial banks put together. However, such limit may be raised to
20% with prior approval of the Trustee.
iii. Parking of funds in short term deposits of associate and sponsor scheduled commercial
banks together shall not exceed 20% of total deployment by the Mutual Fund in short
term deposits.
iv. The Scheme shall not park more than 10% of the net assets in short term deposit(s), with
any one scheduled commercial bank including its subsidiaries.
v. The Scheme shall not park funds in short term deposit (STD) of a bank which has
invested in that Scheme. Further, Trustees/ AMCs shall also ensure that the bank in
which the Scheme has STD do not invest in the said scheme until the Scheme has STD
with such bank.
However, the above provisions will not apply to term deposits placed as margins for trading
in cash and derivatives market.
12. The Scheme shall not advance any loans.
13. The Scheme shall not borrow except to meet temporary liquidity needs of the Scheme for
the purpose of Repurchase/Redemption of Units or payment of interest and/or Dividend to
the Unit holders.
Provided that the Scheme shall not borrow more than 20% of the net assets of the
individual Scheme and the duration of the borrowing shall not exceed a period of 6 months.
14. The total exposure of the Scheme in a particular sector (excluding investments in Bank CDs,
CBLO, Government Securities, T-Bills, short term deposits of scheduled commercial banks
and AAA rated securities issued by Public Financial Institutions and Public Sector Banks)
shall not exceed 20% of the net assets of the Scheme.
Provided that an additional exposure to financial services sector (over and above the limit
of 20%) not exceeding 10% of the net assets of the Scheme shall be allowed by way of
increase in exposure to Housing Finance Companies (HFCs) only;
Provided further that the additional exposure to such securities issued by HFCs are rated AA
and above and these HFCs are registered with National Housing Bank (NHB) and the total
Investment/exposure in HFCs shall not exceed 20% of the net assets of the Scheme.
Further, an additional exposure of 5% of the net assets of the Scheme shall be allowed for
investments in securitized debt instruments based on retail housing loan portfolio and/or
affordable housing loan portfolio.
15. The total exposure in a particular group (excluding investments in securities issued by Public
Sector Units, Public Financial Institutions and Public Sector Banks) shall not exceed 20% of
43 Axis Banking & PSU Debt Fund
the net assets of the Scheme. Such investment limit may be extended to 25% of the net
assets of the Scheme with the prior approval of the Board of Trustees.
For this purpose, a group means a group as defined under regulation 2 (mm) of SEBI (MF)
Regulations and shall include an entity, its subsidiaries, fellow subsidiaries, its holding
company and its associates.
Further, limit for investment in debt and money market instruments of group companies of
both the sponsor and AMC shall not exceed 10% of the net assets of the Scheme. Such
investment limit can be extended to 15% with the prior approval of the Board of Trustees.
16. The Scheme shall participate in repos in corporate debt securities as per the guidelines
issued by SEBI and/ or RBI from time to time and the guidelines framed by the Board of
Directors of Trustee Company and the Asset Management Company, from time to time. At
present the following conditions and norms shall apply to repo in corporate debt securities:
(i) The gross exposure of the Scheme to repo transactions in corporate debt securities shall
not be more than 10% of the net assets of the Scheme.
(ii) The cumulative gross exposure through repo transactions in corporate debt securities
along with equity, debt and derivatives shall not exceed 100% of the net assets of the
Scheme.
(iii) The Scheme shall participate in repo transactions only in AA and above rated
corporate debt securities.
(iv) The Scheme shall borrow through repo transactions only if the tenor of the transaction
does not exceed a period of six months.
(v) The Trustee and the Asset Management Company have framed guidelines interalia
considering the following aspects:
i. Category of counterparty
ii. Credit rating of counterparty
iii. Tenor of collateral
iv. Applicable haircuts
(vi) Counterparty selection & credit rating
The counterparty must be an acceptable counterparty for debt transactions. The
Mutual Fund follows a counterparty empanelment process for fixed income
transactions and the same shall be used for selection of counterparties for corporate
bond repos. All repo transactions in corporate bonds will be governed by a repo
agreement as specified by FIMMDA and / or other specified authorities.
(vii) Collateral tenor & quality
The exposure limit/investment restrictions prescribed under the Seventh Schedule of the
Regulations and circulars issued there under (wherever applicable) shall be applicable
to repo transactions in corporate bonds. The Scheme shall further follow guidelines
framed by Trustee and the AMC from time to time.
(viii) Applicable haircuts
Currently mutual funds are permitted to carry out repo transactions in government
securities without any haircuts. The Reserve Bank of India has notified a minimum
haircut based on rating of the corporate bond and other securities. In addition, the
Fixed Income and Money Market Dealers Association (FIMMDA) would maintain a
rating-haircut matrix on an ongoing basis. The Scheme shall further follow guidelines
framed by Trustee and the AMC from time to time.
The haircuts seek to protect the lender of funds from the event of the counterparty
failing to honor the repurchase leg of the repo. In such a circumstance, the Fund would
suffer a loss if the value of the collateral depreciates by more than the haircut. The fall
in the value of the collateral could be on account of higher yields and/ or deterioration
of credit quality.
As the typical tenor of repos is short (typically overnight), the haircuts represent a
relatively high degree of safety in relation to the interest rate risk on the collateral. The
risk of collateral depreciation based on historical volatility is given in the table below:
44 Axis Banking & PSU Debt Fund
Bond Tenor (yrs) 1 3 5 10
Price Volatility (%) (annualized) 0.6 1.2 1.7 3.4
Repo Tenor Number of standard deviations needed to
lose 10%
1 day 258 136 94 48
7 days 98 52 36 18
In the above table, the price volatility of a 10-year bond is about 3.4% annualized. That
is a 10% price move represents nearly a 3-sigma event on an annualized basis. For
overnight tenors, this represents a 48-sigma event (for comparison a 6-sigma event
occurs about once in a million observations).
It is apparent that the haircuts stipulated by RBI are more than sufficient to mitigate
interest rate risk. Credit event risk remains (the collateral could default during the tenor
of the repo). This risk is to be mitigated by ensuring that the collateral is acceptable
from a credit point of view.
The exposure limit/ investment restrictions prescribed under the Seventh Schedule of the
Regulations and circulars issued there under (wherever applicable) shall be applicable
to repo transactions in corporate bonds.
The Scheme will comply with the other Regulations applicable to the investments of Mutual
Funds from time to time.
All the investment restrictions will be applicable at the time of making investments.
The AMC/Trustee may alter these above stated restrictions from time to time to the extent the
Regulations change, so as to permit the Scheme to make its investments in the full spectrum of
permitted investments for mutual funds to achieve its respective investment objective.
J. CREATION OF SEGREGATED PORTFOLIO
Creation of segregated portfolio shall be subject to guidelines specified by SEBI from time to
time and includes the following:
In this regard, the term ‘segregated portfolio’ shall mean a portfolio comprising of debt or
money market instrument affected by a credit event, that has been segregated in a mutual
fund scheme. The term ‘main portfolio’ shall mean the scheme portfolio excluding the
segregated portfolio. The term ‘total portfolio’ shall mean the scheme portfolio including the
securities affected by the credit event.
Credit Event
A) For rated debt or money market instruments
1) Segregated portfolio may be created, in case of a credit event at issuer level i.e.
downgrade in credit rating by a SEBI registered Credit Rating Agency (CRA), as under:
a. Downgrade of a debt or money market instrument to ‘below investment grade’, or
b. Subsequent downgrades of the said instruments from ‘below investment grade’, or
c. Similar such downgrades of a loan rating
2) In case of difference in rating by multiple CRAs, the most conservative rating shall be
considered. Creation of segregated portfolio shall be based on issuer level credit events as
mentioned above and implemented at the ISIN level.
3) Creation of segregated portfolio is optional and is at the discretion of Axis Asset
Management Company Ltd. (‘Axis AMC’/‘the AMC’)
45 Axis Banking & PSU Debt Fund
B) For unrated debt or money market instruments
Segregated portfolio of unrated debt or money market instruments may be created
only in case of actual default of either the interest or principal amount by the issuer.
Credit event in this case shall be ‘actual default’ by the issuer of such instruments and
shall be considered for creation of segregated portfolio.
Process for Creation of Segregated Portfolio
1) On the date of credit event, the AMC shall decide on creation of segregated portfolio.
Once AMC decides to segregate portfolio, it shall:
a. seek approval of trustees prior to creation of the segregated portfolio.
b. immediately issue a press release disclosing its intention to segregate such debt and
money market instrument and its impact on the investors. Axis Mutual Fund shall disclose
that the segregation shall be subject to Trustee approval. Additionally, the said press
release shall be prominently disclosed on the website of the AMC.
c. ensure that till the time the Trustee approval is received, which in no case shall exceed
1 business day from the day of credit event, the subscription and redemption in the
Scheme shall be suspended for processing with respect to creation of units and
payment on redemptions.
2) Once Trustee approval is received by the AMC:
a. Segregated portfolio shall be effective from the day of credit event
b. AMC shall issue a press release immediately with all relevant information pertaining to
the segregated portfolio. The said information will also be submitted to SEBI.
c. An e-mail or SMS shall be sent to all unit holders of the Scheme.
d. The NAV of both segregated and main portfolios shall be disclosed from the day of the
credit event.
e. All existing investors in the Scheme as on the day of the credit event shall be allotted
equal number of units in the segregated portfolio as held in the main portfolio.
f. No redemption and subscription shall be allowed in the segregated portfolio. AMC shall
enable listing of units of segregated portfolio on the recognized stock exchange within
10 working days of creation of segregated portfolio and also enable transfer of such
units on receipt of transfer requests
3) If the trustees do not approve the proposal to segregate portfolio, AMC will issue a press
release immediately informing investors of the same.
Valuation
Notwithstanding the decision to segregate the debt and money market instrument, the
valuation shall take into account the credit event and the portfolio shall be valued based on
the principles of fair valuation (i.e. realizable value of the assets) in terms of the relevant
provisions of SEBI (Mutual Funds) Regulations, 1996 and circular(s) issued thereunder.
Processing of Subscription and Redemption Proceeds
All subscription and redemption requests for which NAV of the day of credit event or
subsequent day is applicable will be processed as under:
i. Upon trustees’ approval to create a segregated portfolio -
Investors redeeming their units will get redemption proceeds based on the NAV of main
portfolio and will continue to hold the units of segregated portfolio.
Investors subscribing to the Scheme will be allotted units only in the main portfolio
based on its NAV.
ii. In case trustees do not approve the proposal of segregated portfolio, subscription and
redemption applications will be processed based on the NAV of total portfolio.
Disclosure
In order to enable the existing as well as the prospective investors to take informed decision,
the following shall be adhered to:
46 Axis Banking & PSU Debt Fund
a. A statement of holding indicating the units held by the investors in the segregated portfolio
along with the NAV of both segregated portfolio and main portfolio as on the day of the
credit event shall be communicated to the investors within 5 working days of creation of
the segregated portfolio.
b. Adequate disclosure of the segregated portfolio shall be made in all scheme related
documents, in monthly and half-yearly portfolio disclosures and in the annual report of the
mutual fund and the Scheme.
c. The Net Asset Value (NAV) of the segregated portfolio shall be declared on daily basis.
d. The information regarding number of segregated portfolios created in the Scheme shall
appear prominently under the name of the Scheme at all relevant places such as SID, KIM-
cum-Application Form, advertisement, AMC and AMFI websites, etc.
e. The Scheme performance required to be disclosed at various places shall include the
impact of creation of segregated portfolio. The Scheme performance should clearly reflect
the fall in NAV to the extent of the portfolio segregated due to the credit event and the
said fall in NAV along with recovery(ies), if any, shall be disclosed as a footnote to the
Scheme performance.
f. The disclosures at paragraph (d) and (e) above regarding the segregated portfolio shall be
carried out for a period of at least 3 years after the investments in segregated portfolio are
fully recovered/ written-off.
g. The investors of the segregated portfolio shall be duly informed of the recovery
proceedings of the investments of the segregated portfolio. Status update may be
provided to the investors at the time of recovery and also at the time of writing-off of the
segregated securities.
TER for the Segregated Portfolio
1) Axis AMC shall not charge investment and advisory fees on the segregated portfolio.
However, TER (excluding the investment and advisory fees) can be charged, on a pro-rata
basis only upon recovery of the investments in segregated portfolio.
2) The TER so levied shall not exceed the simple average of such expenses (excluding the
investment and advisory fees) charged on daily basis on the main portfolio (in % terms)
during the period for which the segregated portfolio was in existence.
3) The legal charges related to recovery of the investments of the segregated portfolio may
be charged to the segregated portfolio in proportion to the amount of recovery. However,
the same shall be within the maximum TER limit as applicable to the main portfolio. The
legal charges in excess of the TER limits, if any, shall be borne by the AMC.
4) The costs related to segregated portfolio shall in no case be charged to the main portfolio.
Monitoring by Trustees
In order to ensure timely recovery of investments of the segregated portfolio, Trustees shall
ensure that:
a. The AMC puts in sincere efforts to recover the investments of the segregated portfolio.
b. Upon recovery of money, whether partial or full, it shall be immediately distributed to the
investors in proportion to their holding in the segregated portfolio. Any recovery of amount
of the security in the segregated portfolio even after the write off shall be distributed to the
investors of the segregated portfolio.
c. The Trustees shall monitor the compliance of this circular and disclose in the half-yearly
trustee reports filed with SEBI, the compliance in respect of every segregated portfolio
created.
In order to avoid mis-use of segregated portfolio, Trustees shall ensure to have a mechanism in
place to negatively impact the performance incentives of Fund Managers, Chief Investment
Officers (CIOs), etc. involved in the investment process of securities under the segregated
portfolio, mirroring the existing mechanism for performance incentives of the AMC, including
claw back of such amount to the segregated portfolio of the Scheme.
Illustration of segregated portfolio
The below table shows how a rated security affected by a credit event will be segregated and
its impact on investors:
47 Axis Banking & PSU Debt Fund
Portfolio Date July 22, 2019
Downgrade
Event Date
July 22, 2019
Mr. X is holding 1,000 units of the scheme for an amount of Rs. 11,31,993.87 (1,000 *
1,131.9939)
Portfolio before downgrade event
Security Rating Type of the
security
Quantity Market
Price Per
Unit (Rs.)
Market Value
(Rs.)
% of
Net
Assets
9.60% A Ltd. CRISIL AAA NCD 5,000 103.2232 5,16,116.00 45.59%
8.80% B Ltd. CRISIL AA+ NCD 2,000 99.4678 1,98,935.60 17.57%
9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 10.43%
7.70% D Ltd. CRISIL AA+ NCD 2,000 99.0000 1,98,000.00 17.49%
8.80% E Ltd. CRISIL AA NCD 500 101.2211 50,610.55 4.47%
Cash & cash
equivalents
50,321.20 4.45%
Net Assets 11,31,993.87 100.00%
Unit capital (no
of units)
1000.000
NAV (In Rs.) 1131.9939
Security
downgraded
7.70% D Ltd. from AA+ to D
Valuation
Marked down by
75.00% Valuation agencies shall be providing the valuation price post
consideration of standard haircut matrix.
Total Portfolio as on July 22, 2019
Security Rating
Type of the
security
Quantity
Market
Price Per
Unit (Rs.)
Market Value
(Rs.)
% of
Net
Assets
9.60% A Ltd. CRISIL AAA NCD 5,000 103.2232 5,16,116.00 52.45%
8.80% B Ltd. CRISIL AA+ NCD 2,000 99.4678 1,98,935.60 20.22%
9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 11.99%
7.70% D Ltd. CRISIL D NCD 2,000 25.0000 50,000.00 5.08%
8.80% E Ltd. CRISIL AA NCD 500 101.2211 50,610.55 5.14%
Cash & cash
equivalents 50,321.20 5.11%
Net Assets 9,83,993.87 100.00%
Unit capital (no
of units) 1000.000
NAV (In Rs.) 983.9939
Main Portfolio as on July 22, 2019
Security Rating Type of the
security
Quantity Market
Price Per
Unit (Rs.)
Market Value
(Rs.)
% of
Net
Assets
9.60% A Ltd. CRISIL AAA NCD 5,000 103.2232 5,16,116.00 55.26%
8.80% B Ltd. CRISIL AA+ NCD 2,000 99.4678 1,98,935.60 21.30%
9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 12.64%
8.80% E Ltd. CRISIL AA NCD 500 101.2211 50,610.55 5.42%
Cash & cash
equivalents
50,321.20 5.39%
Net Assets 9,33,993.87 100.00%
Unit capital (no 1000.000
48 Axis Banking & PSU Debt Fund
of units)
NAV (In Rs.) 933.9939
Segregated Portfolio as on July 22, 2019
Security Rating
Type of the
security
Quantity
Market
Price Per
Unit (Rs.)
Market Value
(Rs.)
% of
Net
Assets
7.70% D Ltd. CRISIL D NCD 2,000 25.0000 50,000.00 100.00%
Net Assets 50,000.00 100.00%
Unit capital (no
of units) 1000.000
NAV (In Rs.) 50.0000
Net impact on value of holding of Mr. X after creation of segregation
portfolio
Main Portfolio
Segregated
Portfolio
Total
Value
No. of Units 1,000 1,000
NAV (in Rs.) 933.9939 50.0000
Total Value (in
Rs.) 9,33,993.87 50,000.00 9,83,993.87
K. HOW HAS THE SCHEME PERFORMED?
Performance of Axis Banking & PSU Debt Fund – Regular Plan - Growth Option as at October
31, 2019 is as follows:
Period Axis Banking & PSU Debt
Fund – Regular Plan -
Growth Option^
NIFTY Banking &
PSU Debt Index
1 year returns 12.64% 10.93%
3 year returns 8.61% 7.05%
5 year returns 8.56% 8.01%
Returns Since Inception (June 8, 2012) 8.73% 8.46%
Absolute returns for last 5 financial years
Performance of Axis Banking & PSU Debt Fund - Direct Plan - Growth option as at October 31,
2019 is as follows:
Period Axis Banking & PSU
Debt Fund - Direct Plan
- Growth option^
NIFTY Banking & PSU
Debt Index
1 year returns 12.95% 10.93%
3 year returns 8.87% 7.05%
5 year returns 8.79% 8.01%
Returns Since Inception
(January 1, 2013) 8.89% 8.27%
49 Axis Banking & PSU Debt Fund
Absolute returns for last 5 financial years
^Past performance may or may not be sustained in future. Returns greater than 1 year are
compounded annualized (CAGR). Since inception returns are calculated on Rs. 1000 invested
at inception. Calculations are based on Growth Option NAVs. Different plans have different
expense structure.
L. INVESTMENTS BY THE AMC
Subject to the Regulations, the AMC may invest either directly or indirectly, in the Scheme
during Ongoing Offer Period. However, the AMC shall not charge any investment
management fee on such investment in the Scheme.
M. ADDITIONAL SCHEME RELATED DISCLOSURES
a. Scheme’s portfolio holdings as on October 31, 2019:
(i) Top 10 holdings by Issuer:
Name of Issuer % of Net Assets
National Bank For Agriculture and Rural Development 10.79%
Small Industries Dev Bank of India 10.48%
REC Limited 7.68%
Power Finance Corporation Limited 7.39%
Food Corporation Of India 7.06%
National Highways Auth Of Ind 6.93%
Export Import Bank of India 6.52%
NTPC Limited 6.09%
LIC Housing Finance Limited 5.89%
Reliance Industries Limited 4.91%
(ii) Fund allocation towards various Sectors:
Sector % of Net Assets
FINANCIAL SERVICES 61.56%
ENERGY 18.03%
CONSTRUCTION 7.97%
CONSUMER GOODS 7.06%
OTHERS^ 2.22%
Cash & Cash Equivalent 1.91%
GOVERNMENT OF INDIA 1.19%
CEMENT & CEMENT PRODUCTS 0.06%
Total 100.0% ^ TREPS, REPO & Mutual Fund units.
Please visit www.axismf.com to obtain Scheme’s latest monthly portfolio holding statement.
b. Portfolio Turnover
50 Axis Banking & PSU Debt Fund
Portfolio turnover ratio : Not applicable
c. Aggregate investment in the Scheme of certain categories of persons:
Sr.
No.
Category of Persons Net Asset Value of Units held as
on October 31, 2019 (in Rs.)
i AMC’s Board of Directors 37,34,94,372.25
ii Concerned scheme’s Fund Manager(s) Nil
iii Other key managerial personnel 26,37,69,873.27
Note:
1. Investment of Managing Director & Chief Executive Officer of AMC, if any, is included in
investments of “Other key managerial personnel”.
2. Investment of Fund Manager of the Scheme is not included in investments of “Other key
managerial personnel”.
51 Axis Banking & PSU Debt Fund
III. UNITS AND OFFER
This section provides details you need to know for investing in the Scheme.
A. NEW FUND OFFER (NFO)
New Fund Offer
Period
This is the period
during which a new
Scheme sells its unit
to the Investors.
The New Fund Offer opened on May 30, 2012 and closed on June 7, 2012.
The units under the Scheme were allotted on June 8, 2012.
New Fund Offer
Price:
This is the price per
unit that the
Investors have to
pay to invest during
the NFO.
Not Applicable
Minimum Amount
for Application/
Switch in during the
NFO
Not Applicable
Minimum Target
amount
Not Applicable
Maximum Amount
to be raised (if any)
This is the maximum
amount which can
be collected during
the NFO period, as
decided by the
AMC.
Not Applicable
Plans / Options
offered
The Scheme offers the following plans:
Axis Banking & PSU Debt Fund – Regular Plan
Axis Banking & PSU Debt Fund - Direct Plan
Each Plan offers following Options:
• Growth option
• Dividend option
Options Sub-options Record date*
Growth Nil NA
Dividend Daily (Re-investment) Daily
Weekly (Payout and Re-
investment)
every Monday
Monthly (Payout and Re-
investment)
25th of every
month
*Next Business day if such day happens to be a non-business day.
The Trustee/AMC reserves the right to change the record date from time to
time.
If Dividend payable under Dividend Payout option (Weekly Option) is equal
to or less than Rs. 25,000/- then the Dividend would be compulsorily
reinvested in the option of the Scheme.
Where Dividend payable under Dividend Payout option (Monthly Option) is
equal to or less than Rs. 500/- then the Dividend would be compulsorily
52 Axis Banking & PSU Debt Fund
reinvested in the option of the Scheme.
The Investors should indicate option for which Subscription is made by
indicating the choice in the appropriate box provided for this purpose in the
application form. In case of valid application received without any choice
of option/facility, the following default option/facility will be considered;
Default Plan
Treatment of applications under Direct/ Regular Plans
Investors subscribing under Direct Plan of a Scheme will have to indicate
“Direct Plan” against the Scheme name in the application form e.g. “Axis
Banking & PSU Debt Fund – Direct Plan”. Investors should also indicate
“Direct” in the ARN column of the application form.
The investors may refer to the following table for applicability of Direct Plan/
Regular Plan under different scenario:-
Scen
ario
Broker Code mentioned
by the investor
Plan mentioned
by the investor
Default Plan to
be captured
1 Not mentioned Not mentioned Direct Plan
2 Not mentioned Direct Direct Plan
3 Not mentioned Regular Direct Plan
4 Mentioned Direct Direct Plan
5 Direct Not Mentioned Direct Plan
6 Direct Regular Direct Plan
7 Mentioned Regular Regular Plan
8 Mentioned Not Mentioned Regular Plan
In cases of wrong/ invalid/ incomplete ARN codes mentioned on the
application form, the application shall be processed under Regular Plan. The
AMC shall contact and obtain the correct ARN code within 30 calendar
days of the receipt of the application form from the investor/ distributor. In
case, the correct code is not received within 30 calendar days, the AMC
shall reprocess the transaction under Direct Plan from the date of
application without any exit load.
Default Option/Facility
The investor must clearly specify his choice of option/facility. In the absence
of such clear instruction, it will be assumed that the investor has opted for
‘default’ option / facility and the application will be processed accordingly.
The default plan/ option / facility are:
Default Option - Growth
Default dividend frequency - Daily Option
Default between Payout & Reinvestment Option - Reinvestment
Existing Investments:
Investors wishing to transfer their accumulated unit balance held under
Regular Plan (through lumpsum / systematic investments made with or
without Distributor code) to Direct Plan will have to switch /redeem their
investments (subject to applicable Exit Load, if any) and apply under Direct
Plan.
Investors who have invested without Distributor code and have opted for
Dividend Reinvestment facility under Regular Plan may note that the
dividend will continue to be reinvested in the Regular Plan only.
Default Plan – Redemption application
53 Axis Banking & PSU Debt Fund
Where Units under a Scheme are held under both Plans and the redemption
/ Switch request pertains to the Direct Plan, the same must clearly be
mentioned on the request (along with the folio number), failing which the
request would be processed from Axis Banking & PSU Debt Fund – Regular
Plan. However, where Units under the requested Option are held only under
one Plan, the request would be processed under such Plan.
Growth option
Dividends will not be declared under this option. The income attributable to
Units under this option will continue to remain invested in the Scheme and
will be reflected in the NAV of Units under this option.
Dividend option
Under this option, Dividends will be declared (subject to deduction of tax at
source, if any) at specified frequencies at the discretion of the Trustee,
subject to availability of distributable surplus calculated in accordance with
SEBI (MF) Regulations. On payment of Dividend, the NAV of the Unit under
Dividend option will fall to the extent of the Dividend payout and applicable
statutory levies, if any.
It must be distinctly understood that the actual declaration of Dividend and
frequency thereof is at the sole discretion of the Trustee. There is no
assurance or guarantee to the Unit holders as to the rate of Dividend
distribution nor that will the Dividend be paid regularly. The Trustee reserves
the right to declare a Dividend at any other frequency in addition to the
frequencies mentioned above.
Dividend Payout Facility
Under this facility, Dividend declared, if any, will be paid (subject to
deduction of Dividend distribution tax and statutory levy, if any) to those Unit
holder, whose names appear in the register of Unit holders on the notified
record date.
Dividend Reinvestment Facility
Under this facility, the Dividend due and payable to the Unit holders will be
compulsorily and without any further act by the Unit holder, reinvested in the
respective Dividend option at a price based on the prevailing ex-Dividend
Net Asset Value per Unit. The amount of Dividend re-invested will be net of
tax deducted at source, wherever applicable. The Dividends so reinvested
shall constitute a constructive payment of Dividends to the Unit holders and
a constructive receipt of the same amount from each Unit holder for
reinvestment in Units.
On reinvestment of Dividends, the number of Units to the credit of Unit holder
will increase to the extent of the Dividend reinvested. There shall, however,
be no Load on the Dividend so reinvested.
Dividend Policy Under the Dividend option, the Trustee will endeavour to declare the
Dividend as per the specified frequencies, subject to availability of
distributable surplus calculated in accordance with SEBI Regulations. The
actual declaration of Dividend and frequency will inter-alia, depend on
availability of distributable 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 holder as to the rate of Dividend nor
that the Dividend will be paid regularly.
The AMC/Trustee reserves the right to change the frequency of declaration
of Dividend or may provide for additional frequency for declaration of
54 Axis Banking & PSU Debt Fund
Dividend.
Dividend Distribution Procedure
In accordance with SEBI circular no. SEBI/IMD/Cir No. 1/64057/06 dated April
4, 2006, the procedure for Dividend distribution would be as under:
1. Quantum of Dividend and the record date will be fixed by the Trustee.
Dividend so decided shall be paid, subject to availability of distributable
surplus.
2. Within one calendar day of decision by the Trustee, the AMC shall issue
notice to the public communicating the decision about the Dividend
including the record date, in one English daily newspaper having
nationwide circulation as well as in a newspaper published in the
language of the region where the head office of the Mutual Fund is
situated.
3. Record date shall be the date, which will be considered for the purpose
of determining the eligibility of Investors whose names appear on the
register of Unit holder for receiving Dividends. The Record Date will be 5
calendar days from the date of issue of notice.
4. The notice will, in font size 10, bold, categorically state that pursuant to
payment of Dividend, the NAV of the Scheme would fall to the extent of
payout and statutory levy (if applicable).
5. The NAV will be adjusted to the extent of Dividend distribution and
statutory levy, if any, at the close of Business Hours on record date.
6. Before the issue of such notice, no communication indicating the
probable date of Dividend declaration in any manner whatsoever will
be issued by Mutual Fund.
However, the requirement of giving notice shall not be applicable for
Dividend options having frequency up to one month.
Allotment Not Applicable
Refund Not Applicable
Who can invest
This is an indicative
list and you are
requested to
consult your
financial advisor to
ascertain whether
the Scheme is
suitable to your risk
profile.
The following persons (subject to, wherever relevant, purchase of unit of
mutual funds, being permitted under respective constitutions, and relevant
statutory regulations) are eligible and may apply for Subscription to the Unit
of the Scheme:
1. Resident adult individuals either singly or jointly (not exceeding three) or
on an Anyone or Survivor basis;
2. Hindu Undivided Family (HUF) through Karta;
3. Minor (as the first and the sole holder only) through a natural guardian
(i.e. father or mother, as the case may be) or a court appointed legal
guardian. There shall not be any joint holding with minor investments;
4. Partnership Firms;
5. Limited Liability Partnerships;
6. Proprietorship in the name of the sole proprietor;
7. Companies, Bodies Corporate, Public Sector Undertakings (PSUs.),
Association of Persons (AOP) or Bodies of Individuals (BOI) and societies
registered under the Societies Registration Act, 1860 (so long as the
purchase of Unit is permitted under the respective constitutions);
8. Banks (including Co-operative Banks and Regional Rural Banks) and
Financial Institutions;
9. Religious and Charitable Trusts, Wakfs or endowments of private trusts
(subject to receipt of necessary approvals as "Public Securities" as
required) and Private trusts authorised to invest in mutual fund schemes
under their trust deeds;
10. Non-Resident Indians (NRIs) / Persons of Indian origin (PIOs) / Overseas
Citizen of India (OCI) residing abroad on repatriation basis or on non-
repatriation basis;
55 Axis Banking & PSU Debt Fund
11. Foreign Portfolio Investor (FPI) registered with SEBI on repatriation basis.
These investments shall be subject to the conditions prescribed by SEBI,
RBI, Income Tax authorities and the AMC, from time to time;
12. Army, Air Force, Navy and other para-military units and bodies created
by such institutions;
13. Scientific and Industrial Research Organisations;
14. Multilateral Funding Agencies / Bodies Corporate incorporated outside
India with the permission of Government of India / RBI
15. Provident/ Pension/ Gratuity Fund to the extent they are permitted;
16. Other schemes of Axis Mutual Fund or any other mutual fund subject to
the conditions and limits prescribed by SEBI (MF) Regulations;
17. Schemes of Alternative Investment Funds;
18. Trustee, AMC or Sponsor or their associates may subscribe to Units under
the Scheme;
19. Such other category of person(s) permitted to make investments and as
may be specified by the AMC / Trustee from time to time.
Subject to SEBI (Mutual Funds) Regulations, 1996, any application for
subscription of units may be accepted or rejected in the sole and absolute
discretion of the AMC/ Trustee company. The AMC/ Trustee company may
also reject any application for subscription of units if the application is
invalid, incomplete, or if the AMC/ Trustee company for any other reason
does not believe that it would be in the interest of the scheme or its
unitholders to accept such an application.
Email ID & Mobile Number
Investors should provide their own email address and mobile number to
enable Axis AMC for speed and ease of communication in a convenient
and cost-effective manner, and to help prevent fraudulent transactions.
Ultimate Beneficial Ownership details:
SEBI vide its circular no. CIR/MIRSD/2/2013 dated January 24, 2013 further
read with AMFI best practices guidelines circular no. 62/2015-16 dated
September 18, 2015 and other applicable regulations has prescribed
guidelines, for identification of Beneficial Ownership to be followed by the
intermediaries. A ‘Beneficial owner’ is defined as a natural person or persons
who ultimately own, control or influence a client and/or persons on whose
behalf a transaction is being conducted, and includes a person who
exercises ultimate effective control over a legal person or arrangement. In
this regard, all categories of investors (including all new / existing investors /
unitholders) (except individuals, companies listed on a stock exchange or
majority-owned subsidiary of such companies) are mandatorily required to
provide beneficial ownership details for all investments. Failing which, fund
reserves the right to reject applications / subscription requests / additional
subscription requests (including switches) / restrict further investments or seek
additional information from investors who have not provided the requisite
information on beneficial ownership. In the event of change in beneficial
ownership, investors are requested to immediately update the details with
the Fund/Registrar.
Foreign Account Tax Compliance Act and Common Reporting Standards
requirements:
As a part of various ongoing tax and regulatory developments around the
globe [e.g. information exchange laws such as Foreign Account Tax
56 Axis Banking & PSU Debt Fund
Compliance Act (‘FATCA’) and Common Reporting Standard (‘CRS')],
financial institutions like Axis Mutual Fund (‘Axis MF’ or ‘the Fund’) are being
cast with additional investor and counterparty account related due
diligence requirements.
The Central Board of Direct Taxes (CBDT) has notified Rules 114F to 114H, as
part of the Income-tax Rules, 1962, which Rules require Indian financial
institutions such as the Banks, Mutual Funds, etc. to seek additional personal,
tax and beneficial owner information and certain certifications and
documentation from all our investors and counterparties. According to the
FATCA-CRS Rules, financial institutions in India are required to report tax
information about account holders that are tax resident of U.S. and other
foreign countries, to the CBDT/ Indian Government which will, in turn, relay
that information to the US Internal Revenue Service (IRS) and governments of
other foreign countries.
These developments have resulted in compliance and reporting obligations
on Financial Institutions like Axis MF. In relevant cases, information will have to
be reported to tax authorities/appointed agencies. Towards compliance,
the Fund may also be required to provide information to any institutions such
as withholding agents for the purpose of ensuring appropriate withholding
from the account or any proceeds in relation thereto. As may be required
by domestic or overseas regulators/ tax authorities, we may also be
constrained to withhold and pay out any sums from your account or close or
suspend your account(s). Axis MF may also have to comply with other similar
laws as and when applicable.
Prospective investors and Unit holders will therefore be required to comply
with the request of the Fund to furnish such information / documentation /
declarations as and when deemed necessary by the Investment Manager in
accordance with Applicable Laws. In case prospective investor / Unit holder
fails to furnish the relevant information / documentation / declarations in
accordance with Applicable Laws, the Fund reserves the right to reject the
application or redeem the Units held directly or beneficially and may also
require reporting of such accounts and/or levy of withholding tax on
payments made to the Unit holders / investor and/or take any other action/s
in accordance with Applicable Laws. FATCA-CRS provisions are relevant not
only at on-boarding stage of Unit holders but also throughout the life cycle
of investment with the Fund. Unit holders therefore should intimate to the
Fund/the Investment Manager, any change in their status with respect to
any FATCA-CRS related information / documentation / declarations
provided by them previously, including but not limited to any declarations
provided in respect of residency of the Unit holders for tax purposes
promptly, i.e. within 30 days. Further, if the Fund and/or the Investment
Manager is required by Applicable Laws, to provide information regarding
the Fund and/or the unit holders / investors to any regulatory authority
and/or the Fund Investments and/or income therefrom, and the Fund
and/or the Investment Manager complies with such request in good faith,
whether or not it was in fact enforceable, they shall not be liable to the Unit
holders / investors or to any other party as a result of such compliance or in
connection with such compliance.
Prospective investors / Unit holders should consult their own advisors to
understand the implications of FATCA-CRS provisions/requirements. Please
note that Axis MF will be unable to provide advice to any investor or
counterparty about their tax status or FATCA/CRS classification relevant to
their account. It is the responsibility of the investor or counterparty to ensure
57 Axis Banking & PSU Debt Fund
that they record their correct tax status / FATCA/ CRS classification. Investor/
counterparty may seek advice from their tax advisor in this regard. The onus
to provide accurate, adequate and timely inputs in this regard would be
that of the investor or counterparty. Any changes in earlier information
provided must be intimated within 30 days of such change.
Investors are requested to provide all the necessary information /
declarations to facilitate compliance, considering India’s commitment to
implement CRS and FATCA under the relevant international treaties.
Implementation of KYC requirements:
SEBI vide circular no. MIRSD/SE/Cir-21/2011 dated October 5, 2011 had
mandated (i) Standard KYC form with uniform KYC guidelines and
supporting documents to be used by SEBI registered intermediaries and (ii)
Centralized KYC registration through KYC Registration Agencies (KRAs)
registered with SEBI, w.e.f. January 1, 2012, to bring about uniform KYC
process in the securities market, based on SEBI prescribed norms and the
KYC details are shared with all SEBI registered intermediaries by the KRAs.
Subsequently, SEBI, vide its circular no. MIRSD/Cir-5/2012 dated April 13, 2012
advised various intermediaries to upload KYC data of its existing customers
into the KRA system. While uploading KYC data into the KRA system,
intermediaries were also required to highlight such ‘Missing/Not Available’
KYC information of a customer, which was either not required or not taken
previously, but was mandatory as per uniform KYC guidelines issued by SEBI.
In accordance with AMFI best practices guidelines circular no. 62/2015-16
dated September 18, 2015, it is mandatory for all new/existing investors to
provide additional KYC information such as Income details, Occupation,
association with politically exposed person, net worth etc. as mentioned in
the application form. Subscription requests, without providing these details,
are liable to be rejected. No subscriptions (whether fresh or additional) and
switches pertaining to ‘KYC on-hold’ cases are accepted, unless the investor
/ unitholder also submits relevant KYC missing / updated information, which
is appropriately updated on the KRA - KYC.
Further, it is mandatory for existing customers to complete In-Person
Verification process and provide the missing KYC information failing which
their applications / transaction requests for additional subscription (including
switches) is liable to be rejected.
Central KYC Process
Central Registry of Securitisation and Asset Reconstruction and Security
interest of India (‘CERSAI’) has been authorised by Government of India to
act as Central KYC Records Registry under Prevention of Money-Laundering
(Maintenance of Records) Rules, 2005 (‘PMLA Rules’).
SEBI vide its circular no. CIR/MIRSD/66/2016 dated July 21, 2016 and circular
no. CIR/MIRSD/120/2016 dated November 10, 2016 has prescribed that the
Mutual Fund/ AMC should capture KYC information for sharing with CKYCR
as per the KYC template prescribed by CERSAI.
In accordance with the aforesaid SEBI circulars and AMFI best practice
guidelines for implementation of CKYC:
a) Individual investors who have never done KYC process under KRA
regime i.e. a new investor who is new to KRA system and whose KYC is
58 Axis Banking & PSU Debt Fund
not registered or verified in the KRA system shall be required to provide
KYC details in the CKYC Form to the Mutual Fund/ AMC.
b) Individual investor who fills old KRA KYC Form, should provide additional /
missing information using Supplementary KYC Form or fill CKYC Form. The
said form is available on Axis Mutual Fund website www.axismf.com.
c) Details of investors shall be uploaded on the system of CKYCR and a 14
digit unique KYC Identification Number (‘KIN’) will be generated for such
customer.
d) New investors, who have completed CKYC process & have obtained KIN
may quote their KIN in the application form instead of submitting CKYC
Form/ Supplementary KYC Form.
e) AMC/ Mutual Fund shall use the KIN of the investor to download the KYC
information from CKYCR system and update its records.
f) If the PAN of investor is not updated on CKYCR system, the investor
should submit self-certified copy of PAN card to the Mutual Fund/ AMC.
The AMC reserves the right to reject transaction application in case the
investor(s) fails to submit information and/or documentation as mentioned
above. In the event of non-compliance of KYC requirements, the Trustee /
AMC reserves the right to freeze the folio of the investor(s).
Submission of Aadhar Number
Pursuant to requirement under Prevention of Money Laundering
(Maintenance of Records) Rules, 2005 as amended from time to time, proof
of possession of Aadhar can be accepted as a valid document for proof of
address or proof of identity of investors, provided the investor redact or
blackout his Aadhar number while submitting the applications for
investments.
The aforesaid guidelines will be subject to change as per the directives
issued by the concerned regulatory/ government authority from time to
time.
For further details refer to SAI.
Who cannot invest 1. Any individual who is a foreign national or any other entity that is not an
Indian resident under the Foreign Exchange Management Act, 1999
(FEMA Act) except where registered with SEBI as FPI or otherwise
explicitly permitted under FEMA Act/ by RBI/ by any other applicable
authority.
2. Pursuant to RBI A.P. (DIR Series) circular no. 14 dated September 16, 2003,
Overseas Corporate Bodies (OCBs) cannot invest in Mutual Funds.
3. NRIs residing in Non-Compliant Countries and Territories (NCCTs) as
determined by the Financial Action Task Force (FATF), from time to time.
4. U.S. Persons and Residents of Canada as defined under the applicable
laws of U.S. and Canada except the following:
a. subscriptions received by way of lump sum / switches /systematic
transactions received from Non-resident Indians (NRIs) / Persons of
Indian origin (PIO) / Overseas Citizen of India (OCI) who at the time
of such investment, are present in India and
b. FPIs
These investors need to submit a physical transaction request along with
such documents as may be prescribed by the AMC/ the Trustee/ the Fund
from time to time.
The AMC reserves the right to put the transaction requests on hold/reject the
59 Axis Banking & PSU Debt Fund
transaction request/reverse allotted units, as the case may be, as and when
identified by the AMC, which are not in compliance with the terms and
conditions notified in this regard.
The Trustee / the AMC /the Fund reserve the right to change/ modify the
above provisions at a later date
Such other persons as may be specified by AMC from time to time.
Where can you
submit the filled up
applications.
Not Applicable
How to Apply Please refer to the SAI and Application form for the instructions.
Listing The Scheme is an open ended Scheme under which sale and repurchase
will be made on a continuous basis and therefore listing on stock exchanges
is not envisaged. However, the Trustee reserves the right to list the units as
and when considered necessary in the interest of Unit holders of the Fund.
Special Products /
facilities available
during the NFO
Not Applicable
The policy
regarding reissue of
Repurchased units,
including the
maximum extent,
the manner of
reissue, the entity
(the Scheme or the
AMC) involved in
the same.
Units once redeemed will be extinguished and will not be reissued.
Restrictions, if any,
on the right to freely
retain or dispose of
units being offered.
Pledge of Units
The Units under the Scheme (subject to completion of lock in period, if any)
may be offered as security by way of a pledge / charge in favour of
scheduled banks, financial institutions, non-banking finance companies
(NBFCs), or any other person. The AMC and / or the ISC will note and record
such Pledged Units. The AMC shall mark a lien only upon receiving the duly
completed form and documents as it may require. Disbursement of such
loans will be at the entire discretion of the bank / financial institution / NBFC
or any other person concerned and the Mutual Fund assumes no
responsibility thereof.
The Pledger will not be able to redeem Units that are pledged until the entity
to which the Units are pledged provides written authorisation to the Mutual
Fund that the pledge / lien charge may be removed. As long as Units are
pledged, the Pledgee will have complete authority to redeem such Units.
Dividends declared on Units under lien will be paid / re-invested to the credit
of the Unit Holder and not the lien holder unless specified otherwise in the
lien letter.
Lien on Units
On an ongoing basis, when existing and new Investors make Subscriptions, a
lien on unit allotted will be created and such unit shall not be available for
redemption until the payment proceeds are realised by the Scheme. In case
a unit holder redeems unit soon after making purchases, the redemption
cheque will not be dispatched until sufficient time has elapsed to provide
reasonable assurance that cheques or drafts for unit purchased have been
cleared.
60 Axis Banking & PSU Debt Fund
In case the cheque / draft is dishonoured by the bank, the transaction shall
be reversed and the unit allotted earlier shall be cancelled, and a fresh
Account Statement / Confirmation slip shall be dispatched to the Unit
holder. For NRIs, the Scheme may mark a lien on unit in case documents
which need to be submitted are not given in addition to the application
form and before the submission of the redemption request. However, the
AMC reserves the right to change operational guidelines for lien on unit from
time to time.
Suspension/Restriction on Redemption of Units of the Scheme
Subject to the approval of the Boards of the AMC and of the Trustee and
subject also to necessary communication of the same to SEBI, the
redemption of / switch-out of Units of Scheme, may be temporarily
suspended/ restricted. In accordance with SEBI circular no.
SEBI/HO/IMD/DF2/CIR/P/2016/57 dated May 31, 2016 and subject to
prevailing regulations, restriction on/suspension of redemptions / switch-out
of Units of the Scheme, may be imposed when there are circumstances
leading to systemic crisis or event that severely constricts market liquidity or
the efficient functioning of markets such as:
a) Liquidity issues: when market at large becomes illiquid affecting almost
all securities rather than any issuer specific security;
b) Market failures, exchange closures: when markets are affected by
unexpected events which impact the functioning of exchanges or the
regular course of transactions. Such unexpected events could also be
related to political, economic, military, monetary or other emergencies;
c) Operational issues: when exceptional circumstances are caused by
force majeure, unpredictable operational problems and technical
failures (e.g. a black out).
Restriction on / suspension of redemption of Units of the Scheme may be
imposed for a specified period of time not exceeding 10 working days in any
90 days period.
When restriction on / suspension of redemption of Units of the Scheme is
imposed, the following procedure shall be applied
i. No redemption / switch-out requests upto Rs. 2 lakhs shall be subject to
such restriction.
ii. Where redemption / switch-out requests are above Rs. 2 lakhs, the
AMC shall redeem the first Rs. 2 lakhs without such restriction and
remaining part over and above Rs. 2 lakhs shall be subject to such
restriction.
In addition to the above, the AMC / Trustee may restrict / suspend
redemptions / switch-out of Units of the Scheme pursuant to direction/
approval of SEBI.
In case of any of the above eventualities, the general time limits for
processing requests for redemption of Units will not be applicable.
Also refer to the paragraph ‘Suspension of Purchase and Redemption of
Units’ in the Statement of Additional Information.
Third Party Payment
Avoidance and
additional
documents /
declaration
required
Please refer SAI for details.
61 Axis Banking & PSU Debt Fund
Cash Investments in
mutual funds
In order to help enhance the reach of mutual fund products amongst small
investors, who may not be tax payers and may not have PAN/bank
accounts, such as farmers, small traders /businessmen /workers, SEBI has
permitted receipt of cash transactions for fresh purchases/ additional
purchases to the extent of Rs. 50,000/- per investor, per mutual fund, per
financial year subject to:
i. compliance with Prevention of Money Laundering Act, 2002 and Rules
framed there under; the SEBI Circular(s) on Anti Money Laundering (AML)
and other applicable Anti Money Laundering Rules, Regulations and
Guidelines; and
ii. sufficient systems and procedures in place.
However, payment towards redemptions, dividend, etc. with respect to
aforementioned investments shall be paid only through banking channel.
The Fund/ AMC is currently in the process of setting up appropriate systems
and procedures for the said purpose. Appropriate notice shall be displayed
on its website viz. as well as at the Investor Service Centres, once the facility
is made available to the investors.
62 Axis Banking & PSU Debt Fund
B. ONGOING OFFER DETAILS
Default Plan/
Option
The investors may refer to the paragraph under New Fund offer Section for
applicability of Direct Plan/ Regular Plan under different scenario.
Ongoing Offer
Period
This is the date from
which the Scheme
will reopen for
Subscriptions/rede
mptions after the
closure of the NFO
period.
The Scheme has reopened for continuous subscription and redemption from
June 12, 2012.
Ongoing price for
Subscription
(purchase)/Switch-
in (from other
schemes/Plans of
the Mutual Fund) by
Investors.
This is the price you
need to pay for
purchase/Switch-in.
At the Applicable NAV.
SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009
has decided that there shall be no entry Load for all Mutual Fund Schemes.
Hence, no entry load is levied for subscription transactions by the Scheme.
Methodology of calculating subscription price:
Subscription Price = Applicable NAV*(1+Entry Load, if any)
Example: If the Applicable NAV is Rs. 10, Entry Load is NIL then the
subscription price will be:
= Rs. 10* (1+NIL)
= Rs. 10
Ongoing price for
redemption (sale)
/Switch outs (to
other
schemes/Plans of
the Mutual Fund) by
Investors.
This is the price you
will receive for
redemptions/Switch
outs.
At the Applicable NAV subject to prevailing Exit Load.
Ongoing price for redemption /Switch out (to other Schemes/Plans of the
Mutual Fund) is price which a Unit holder will receive for redemption/Switch-
outs. During the continuous offer of the Scheme, the Unit holder can redeem
the Units at Applicable NAV, subject to payment of Exit Load, if any. It will be
calculated as follows:
Methodology of calculating repurchase price:
Redemption Price = Applicable NAV*(1-Exit Load, if any)
Example: If the Applicable NAV is Rs. 10, Exit Load is 2% then redemption
price will be:
= Rs. 10* (1-0.02)
= Rs. 9.80
Investors/Unit holders should note that the AMC/Trustee has right to modify
existing Load structure and to introduce Loads subject to a maximum limits
prescribed under the SEBI Regulations.
Any change in Load structure will be effective on prospective basis and will
not affect the existing Unit holder in any manner.
However, the Mutual Fund will ensure that the Redemption Price will not be
lower than 93% of the Applicable NAV provided that the difference
between the Redemption Price and the Subscription /Purchase Price at any
point in time shall not exceed the permitted limit as prescribed by SEBI from
time to time, which is currently 7% calculated on the Subscription/ Purchase
Price. The Purchase Price shall be at applicable NAV.
Cut off timing for
Subscriptions/
redemptions/
Switches
Subscriptions/Purchases including Switch - ins:
The following cut-off timings shall be observed by the Mutual Fund in respect
of purchase of units of the Scheme and the following NAVs shall be applied
for such purchase:
63 Axis Banking & PSU Debt Fund
This is the time
before which your
application
(complete in all
respects) should
reach the Official
Points of
Acceptance.
1. where the application is received upto 3.00 pm with a local cheque or
demand draft payable at par at the place where it is received – closing
NAV of the day of receipt of application;
2. where the application is received after 3.00 pm with a local cheque or
demand draft payable at par at the place where it is received – closing
NAV of the next Business Day ; and
3. where the application is received with an outstation cheque or demand
draft which is not payable at par at the place where it is received –
closing NAV of day on which the cheque or demand draft is credited.
4. In respect of purchase of units with amount equal to or more than Rs. 2
lakhs, irrespective of the time of receipt of application, the closing NAV
of the day on which the funds are available for utilization shall be
applicable.
For allotment of units in respect of purchase in the Scheme under Pt. (4)
above, it shall be ensured that:
i. Application is received before the applicable cut-off time.
ii. Funds for the entire amount of subscription/purchase as per the
application are credited to the bank account of the Scheme before the
cut-off time.
iii. The funds are available for utilization before the cut-off time without
availing any credit facility whether intra-day or otherwise, by the
Scheme.
For allotment of units in respect of switch-in to the Scheme under Pt. (4)
above from other schemes, it shall be ensured that:
i. Application for switch-in is received before the applicable cut-off time.
ii. Funds for the entire amount of subscription/purchase as per the switch-in
request are credited to the bank account of the Scheme before the cut-
off time.
iii. The funds are available for utilization before the cut-off time without
availing any credit facility whether intra-day or otherwise, by the
Scheme.
Redemptions including Switch - outs:
The following cut-off timings shall be observed by the Mutual Fund in respect
of Repurchase of units:
a. where the application received upto 3.00 pm – closing NAV of the day
of receipt of application; and
b. an application received after 3.00 pm – closing NAV of the next Business
Day.
The above mentioned cut off timing shall also be applicable to transactions
through the online trading platform.
In case of Transaction through Stock Exchange Infrastructure, the Date of
Acceptance will be reckoned as per the date & time; the transaction is
entered in stock exchange’s infrastructure for which a system generated
confirmation slip will be issued to the investor.
Where can the Refer Back Cover Page
64 Axis Banking & PSU Debt Fund
applications for
purchase/redempti
on Switches be
submitted?
Minimum amount
for
purchase/Redempti
on/Switches
Minimum amount for purchase/Switch in
Rs. 5,000 and in multiples of Re. 1/- thereafter
Minimum Additional Purchase Amount
Rs. 1,000 and in multiples of Re. 1/- thereafter
Minimum Redemption Amount/Switch Out
There will be no minimum redemption criterion. The Redemption / Switch-out
would be permitted to the extent of credit balance in the Unit holder’s
account of the Plan(s) / Option(s) of the Scheme (subject to completion of
Lock-in period or release of pledge / lien or other encumbrances). The
Redemption / Switch-out request can be made by specifying the rupee
amount or by specifying the number of Units of the respective Plan(s) /
Option(s) to be redeemed. In case a Redemption / Switch-out request
received is for both, a specified rupee amount and a specified number of
Units of the respective Plan(s)/ Option(s), the specified number of Units will
be considered the definitive request. In case the value / number of
available units held in the Unit holder’s folio / account under the Plan /
Option of the Scheme is less than the amount / number of units specified in
the redemption / switch-out request, then the transaction shall be treated as
an all units redemption and the entire balance of available Units in the folio /
account of the Unit holder shall be redeemed.
In case of Units held in dematerialized mode, the Unit Holder can give a
request for Redemption only in number of Units which can be fractional units
also. Depository participants of registered Depositories can process only
redemption request of units held in demat mode.
The AMC/ Trustee reserves the right to change/ modify the terms of minimum
redemption amount/switch-out.
Minimum balance
to be maintained
and consequences
of non
maintenance.
Currently, there is no minimum balance requirement.
However, the AMC / Trustee may decide to introduce minimum balance
requirements later, if they so deem fit. In such case, in the event of non-
maintenance of minimum balance for any particular situations, the Unit may
be compulsorily redeemed.
In case balance in the account of the Unit holder does not cover the
amount of Redemption request, then the Mutual Fund is authorized to
redeem all the Unit in the folio and send the Redemption proceeds to the
Unit holder.
Special Products
available
SYSTEMATIC INVESTMENT PLAN (SIP)
Unit holder can enroll for the SIP facility by submitting duly completed
Enrolment Form at the Official Point(s) of Acceptance. An Investor shall have
the option of choosing any date of the Month as his SIP date other than 29th,
30th and 31st of a month. Minimum amount and minimum installments for
monthly and yearly frequency under SIP Facility is as follows:
Frequency
under SIP Facility
Minimum
Installments
Minimum SIP amount
Monthly 6 Installments Rs. 1,000/- and in multiple of
Re. 1/-
Yearly 3 Installments Rs. 12,000/- and in multiple of
65 Axis Banking & PSU Debt Fund
Re. 1/-
If the SIP period is not specified by the unit holder then the SIP enrolment will
be deemed to be for perpetuity and processed accordingly.
In case of SIP investments, where the entire installment amount is not
available in bank account, the SIP for that month would be rejected.
Allocation to a particular scheme or pro–rata allocation to schemes will not
be carried out.
i. SIP through post-dated cheques
The date of the first cheque shall be the same as the date of the
application while the remaining cheques shall be post dated cheques
which shall be dated uniformly. Investors can invest in SIP by providing
post-dated cheques to Official Point(s) of Acceptance. An Investor is
eligible to issue only one cheque for each month in the same SIP
enrolment form. All SIP cheques should be of the same amount and
same date option. Cheques should be drawn in favour of the Fund and
“A/c Payee only”. A Letter will be forwarded to the Investor on successful
registration of SIP. The Post Dated cheques will be presented on the
dates mentioned on the cheque and subject to realization of the
cheque.
ii. SIP through National Automated Clearing House (NACH) Platform //Direct
Debit facility
Investors / Unit holders may enroll for SIP Direct Debit Facility available
with specified Banks / Branches. In order to enroll for SIP Direct Debit
Facility, an Investor must fill-up the Application Form for SIP Direct Debit
facility.
In case of SIP with payment mode as Direct Debit/Standing Instructions,
Investors shall be required to submit a cancelled cheque or a
photocopy of a cheque of the bank account for which the debit
mandate is provided with first installment through cheque. The SIP facility
will also be available through standing instructions/direct debit given by
the investor (with all payment installments being made through standing
instructions/direct debit). However, the SIP facility with direct debit will be
available through selected Banks. The Asset Management Company
reserves the right to add/modify/delete from the list of banks through
whom such facility will be available to the investors.
The unit holders can also make payment of SIP instalments through NACH
facility. NACH is a centralized system, launched by National Payments
Corporation of India (NPCI) with an aim to consolidate multiple NACH
mandates. This facility will enable the unit holders of the Fund to make SIP
investments through NACH by filling up the SIP Registration cum mandate
form. A Unique number will be allotted to every mandate registered
under NACH called as Unique Mandate Reference Number (“UMRN”)
which can be used for SIP transactions. The NACH facility shall be
available subject to terms and conditions contained in the SIP registration
Mandate Form and as prescribed by NPCI from time to time.
All SIP cheques/payment instructions should be of the same amount and
same date (excluding first cheque). However, there should be a gap of 30
days between first SIP Installment and the second installment in case of SIP
started during ongoing offer.
Investors will have the right to discontinue the SIP facility at any time by
66 Axis Banking & PSU Debt Fund
sending a written request to any of the Official Point(s) of Acceptance.
Notice of such discontinuance should be received at least 20 days prior to
the due date of the next debit. On receipt of such request, the SIP facility will
be terminated. It is clarified that if the Fund fails to get the proceeds from
three Installments out of a continuous series of Installments submitted at the
time of initiating a SIP, the SIP is deemed as discontinued.
Units will be allotted at the Applicable NAV of the respective dates on which
the investments are sought to be made. In case the date falls on a Holiday
or falls during a Book Closure period, the immediate next Business Day will be
considered for this purpose.
An extension of an existing SIP will be treated as a new SIP on the date of
such application, and all the above conditions need to be met with.
The Load structure prevailing at the time of submission of the SIP application
(whether fresh or extension) will apply for all the Installments indicated in
such application.
The AMC has the authority to make available SIP by way of a salary savings
scheme for a group of employees through an arrangement with their
employers.
For applicable Load on Purchases through SIP, please refer paragraph ‘Load
Structure’ given in the document.
The AMC reserves the right to change / modify Load structure and other
terms and conditions under the SIP prospectively at a future date. Please
refer to the SIP Enrolment Form for terms & conditions before enrolment.
Systematic Investment Plan (SIP) Switch Facility:
Unit holders having registered SIP in the specified scheme(s) of the Fund can
use SIP Switch Facility to terminate SIP in the existing scheme and initiate SIP
in another specified scheme.
SIP Switch Facility shall be available to unit holders under all open ended
schemes of the Fund except for Axis Liquid Fund, Axis Overnight Fund, Axis
Gold ETF, Axis Nifty ETF and Axis Children’s Gift Fund.
The terms and conditions of SIP Switch Facility are as below:
1. SIP Switch Facility can be availed by unit holders only after completion of
minimum installments specified for SIP registration in the Switch-out
(existing) scheme.
2. SIP Switch Facility will be considered as termination of SIP in Switch-out
scheme and subscription of SIP in Switch-in scheme.
3. SIP in Switch-in scheme will be subject to the terms of offering specified in
the SID of Switch-in scheme.
4. SIP registration end date should ensure compliance of minimum SIP
installments prescribed in Switch-in scheme.
5. SIP Switch Facility is available for changing SIP investment mandate from
one scheme to another specified scheme. The same is also available for
switch between Plans / Options offered under same scheme. Further, the
amount of installment, date and frequency of SIP and SIP end date of
Switch-out scheme shall remain same as under Switch-in scheme.
6. The allotment of units of Switch-in scheme shall be in the same folio.
7. SIP Switch Facility is not available for SIP subscribed with post-dated
cheques.
67 Axis Banking & PSU Debt Fund
8. Investors will have the option of changing the distributor code from
direct to regular/ regular to direct.
9. Unit holder must submit request for SIP Switch at least 21 days before the
SIP due date.
Multiple SIPs Registration Mandate
Unitholder can enroll multiple SIPs in different schemes by submitting one
single application form/ payment instruction. All other terms and conditions
applicable to SIP Facility shall be applicable for the Facility.
Systematic Investment Plan (SIP) Top-Up Facility
The Facility enables unitholders to increase the SIP installment amount at pre-
defined intervals by a fixed amount or anytime by a specified amount as per
the request (in case of ‘As & When frequency’).
The terms and conditions of the Facility are as follows:
1. Top-Up Amount: The minimum amount of Top-Up shall be Rs. 500/- and in
multiple of Re. 1/- for all schemes. In case of discrepancy in the Top-Up
amount, SIP will be registered without Top-Up Facility.
2. Top-Up facility is available for SIP registered with Monthly frequency only.
3. Top-Up Frequency: Top-Up frequency is available only on ‘Half Yearly’,
‘Yearly’ and ‘As & When frequency’. In case the Top-Up frequency is not
specified / is not legible, the default frequency will be ‘Yearly’, provided
Top-Up amount is mentioned clearly.
4. The Facility shall be available for SIP Investments through Electronic Debit
arrangement/ NACH (National Automated Clearing House) or as may
be specified by AMC.
5. The Facility can be availed by filling up prescribed form at time of SIP
Facility enrolment. Existing SIPs cannot be converted into the Facility.
6. The application form for availing the Facility should be submitted 21 days
before the first SIP installment date.
7. The gap between SIP registration and first Top-Up request under 'As &
When' frequency and two instructions under ‘As & When’ frequency
should be at least 3 months.
8. The Facility shall continue till the end date of the SIP. The Facility can be
discontinued only by cancelling the SIP.
9. All other terms and conditions applicable to SIP Facility shall be
applicable for the Facility.
PURCHASE / REDEMPTION OF UNITS THROUGH STOCK EXCHANGE
INFRASTRUCTURE
Investors can subscribe to the Units of Axis Mutual Fund through the mutual
fund trading platforms of the Bombay Stock Exchange (“BSE”) and National
Stock Exchange (“NSE”) with NSDL and CDSL as depositories for such units of
the mutual fund.
NSE has introduced Mutual Fund Service System (“MFSS”) Platform and BSE
has introduced BSE StAR MF Platform.
The following are the salient features of the MFSS / BSE StAR MF Platform:
1. The facility i.e. purchase/redemption/SIP (Systematic Investment Plan) is
available for both existing and new investors.
2. The Investors will be eligible to purchase/redeem units of the Scheme.
3. Maximum subscription:
The investors can purchase units of the Scheme by using MFSS/ BSE StAR
Platform for transaction value less than Rs. 1 Crore.
4. List of additional Official Point of Acceptance
68 Axis Banking & PSU Debt Fund
The following shall be the additional Official Point of Acceptance of
Transactions for the Scheme:
All trading members of BSE & NSE who are registered with AMFI as Mutual
Fund Advisors and also registered with BSE &/or NSE as Participants ("AMFI
registered stock exchange brokers") will be eligible to offer this facility to
investors and shall be treated as Official Point of Acceptance.
Units of mutual fund schemes shall be permitted to be transacted through
clearing members of the registered Stock Exchanges. Further, the
Depository Participants of registered Depositories are permitted to process
only redemption request of units held in demat form.
Clearing members and Depository participants will be considered as
Official Points of Acceptance (OPA) of Axis Mutual Fund and conditions
stipulated in SEBI circular no. SEBI/IMD/CIR No.11/183204/2009 dated
November 13, 2009 for stock brokers viz. AMFI /NISM certification, code of
conduct prescribed by SEBI for Intermediaries of Mutual Fund, shall be
applicable for such Clearing members and Depository participants as
well.
5. The units of the Scheme are not listed on BSE & NSE and the same cannot
be traded on the Stock Exchange. The window for purchase/redemption
of units on MFSS / BSE StAR Platform will be available between 9 a.m. and
3 p.m. or such other timings as may be decided.
6. Transactions only in demat mode will be currently permitted through MFSS
/ BSE StAR MF Platform.
7. Investors will be able to purchase/redeem units in the Scheme in the
following manner:
(i) Investors shall receive redemption amount (if units are redeemed) and
units (if units are purchased) through broker/ clearing member's pool
account. Axis AMC/Axis Mutual Fund (the "Mutual Fund") shall pay
proceeds to the broker/clearing member (in case of redemption) and
broker/clearing member in turn to the respective investor and similarly
units shall be credited by the AMC/ Mutual Fund into broker/clearing
member's pool account (in case of purchase) and broker/clearing
member in turn shall credit the units to the respective investor's demat
account.
(ii) Payment of redemption proceeds to the broker/clearing members by
AMC/Mutual Fund shall discharge AMC/Mutual Fund of its obligation
of payment to individual investor. Similarly, in case of purchase of
units, crediting units into broker/clearing member pool account shall
discharge AMC/Mutual Fund of its obligation to allot units to individual
investor.
8. Applications for purchase/redemption of units which are incomplete
/invalid are liable to be rejected.
9. For all the transactions done through these platforms, separate Folio. No.
shall be allotted to the existing and the new investors. The bank a/c
number, address, nomination details etc. shall be the same as per the
Demat account of the investor. In case of non-financial
requests/applications such as change of address, change of bank details,
etc. for units held in demat mode investors should approach the
respective Depository Participant(s) and OPAT of AMC for units held in
physical mode.
10. Investors will have to comply with Know Your Customer (KYC) norms
as prescribed by BSE/NSE/CDSL/ NSDL and Axis Mutual Fund to participate
in this facility.
11. Investors should get in touch with Investor Service Centres (ISCs) of
69 Axis Banking & PSU Debt Fund
Axis Mutual Fund for further details.
1. Transaction through Stock Exchange infrastructure using services of
Distributor/ SEBI Registered Investment Advisor
SEBI circular no. CIR/MRD/DSA/32/2013 dated October 4, 2013 and circular
no. CIR/MRD/DSA/33/2014 dated December 9, 2014, has permitted Mutual
Fund Distributors (“MF Distributors”) and SEBI circular no.
SEBI/HO/MRD/DSA/CIR/P/2016/113 dated October 19, 2016 permitted SEBI
Registered Investment Advisors (“RIAs”) to use recognized Stock Exchange
infrastructure to purchase/redeem units directly from Mutual Fund/AMC on
behalf of their clients.
MF Distributor registered with AMFI or RIAs, will be eligible to use NMF-II
platform of NSE (in addition to other intermediaries) and / or of BSE StAR MF
platform of BSE to purchase and redeem units of schemes of the Fund.
In addition to the guidelines specified for transacting through MFSS/BSE StAR
MF Platform above, following guidelines shall be applicable for transactions
executed through MF Distributors/ RIAs on NMF-II / BSE StAR MF Platform:
1. MF distributors/RIAs shall not handle pay out/pay in of funds as well as
units on behalf of investor. Pay in will be directly received by recognized
clearing corporation and payout will be directly made to investor
account. In the same manner, units shall be credited and debited
directly from the demat account of investors.
2. Transactions only in physical (non-demat) transactions will be permitted
through NMF-II / BSE StAR MF Platform.
The facility of transacting in mutual fund schemes through stock exchange
infrastructure is available subject to such operating guidelines, terms and
conditions as may be prescribed by the respective Stock Exchanges from
time to time.
SYSTEMATIC TRANSFER PLAN (STP)
Investors can opt for Systematic Transfer Plan by investing a lumpsum
amount in one scheme of the Fund and providing a standing instruction to
transfer sums at following intervals into any other scheme (as may be
permitted by the Scheme Information Document of the respective schemes)
of the Fund.
STP
Frequency Cycle Date
Minimum
Amount* (in
Rs.)
Minimum
Installment
Daily Monday To Friday 1,000/- 6
Weekly Monday To Friday 1,000/- 6
Fortnightly Alternate Wednesday 1,000/- 6
Monthly 1st, 7th, 10th, 15th or 25th 1,000/- 6
Quarterly 1st, 7th, 10th, 15th or 25th 3,000/- 2
In case Day of Transfer has not been indicated under Weekly frequency,
Wednesday shall be treated as Default day. Further, in case of Monthly and
Quarterly Frequency, if the STP date and Frequency has not been indicated,
Monthly frequency shall be treated as Default frequency and 10th shall be
treated as Default Date.
In case none of the frequencies have been selected then Monthly
frequency shall be treated as Default frequency and 10th shall be treated as
70 Axis Banking & PSU Debt Fund
Default Date.
Investors could also opt for STP from an existing account by quoting their
account / folio number. A minimum period of 7 days shall be required for
registration under STP.
Units will be allotted/ redeemed at the applicable NAV of the respective
dates of the Scheme in which such investments/withdrawals are sought from
the Scheme.
The requests for discontinuation of STP shall be subject to an advance notice
of 15 days before the next due date for STP and it will terminate
automatically if all Units are liquidated or withdrawn from the account or
upon the Funds’ receipt of notification of death or incapacity of the Unit
holder.
The AMC reserves the right to introduce STPs at any other frequencies or on
any other dates as the AMC may feel appropriate from time to time. In the
event that such a day is a Holiday, the transfer would be affected on the
next Business Day.
Further, in case where the balance amount in folio is less than the STP
amount, the entire amount will be transferred to the transferee scheme.
For further details/clarifications investors may contact the distributor(s) or the
ISCs of the AMC.
Note:
(a) In case of Systematic Investment Plan (SIP) / Systematic Transfer Plan
(STP) etc. registered prior to January 1, 2013 without any distributor code
under the Axis Banking Debt Fund - Regular Plan, installments falling on
or after January 1, 2013 will automatically be processed under the
Direct Plan.
(b) Investors who had registered for Systematic Investment Plan facility prior
to January 1, 2013 with distributor code and wish to invest their future
installments into the Direct Plan, shall make a written request to the Fund
in this behalf. The Fund will take at least 15 days to process such
requests. Intervening installments will continue in the Axis Banking Debt
Fund (Regular Plan).
In case of (a) and (b) above, the terms and conditions of the existing
registered enrolment shall continue to apply.
In case of Systematic Transfer Facilities (registered with Distributor Code)
were registered under the Axis Banking & Debt Fund - Regular Plan prior to
January 1, 2013 the future installments shall continue under the Regular Plan.
In case such investors wish to invest under the Direct Plan through these
facilities, they would have to cancel their existing enrolments and register
afresh for such facilities.
CAPITAL APPRECIATION SYSTEMATIC TRANSFER PLAN (CAPSTP)
Under this facility, the investors can opt for the Systematic Transfer Plan by
investing a lump sum amount in one scheme of the Fund and providing a
standing instruction to transfer capital appreciation at regular intervals -
Weekly, Monthly and Quarterly into any other scheme (as may be permitted
by the Scheme Information Document of the respective schemes) of Axis
71 Axis Banking & PSU Debt Fund
Mutual Fund.
The capital appreciation, if any, will be calculated from the enrolment date
of the CapSTP under the folio, till the first transfer date. Subsequent capital
appreciation, if any, will be the capital appreciation between the previous
CapSTP date (where CapSTP has been processed and paid) and the next
CapSTP date.
There are three options available under CapSTP viz. Weekly, Monthly and
Quarterly option, the details of which are given below:
CapSTP
Frequency Cycle Date
Minimum
Amount* (in
Rs.)
Minimum
Installment
Weekly Monday To Friday 500/- 6
Monthly 1st, 7th, 10th, 15th or 25th 500/- 6
Quarterly 1st, 7th, 10th, 15th or 25th 1,000/- 2
The provision of ‘Minimum Redemption Amount’ as specified in the Scheme
Information Document of the respective designated Transferor Schemes and
‘Minimum Application Amount’ specified in the Scheme Information
Document of the respective designated Transferee Schemes will not be
applicable for CapSTP.
Unit holders are required to fill in either the number of installments or the
enrolment period in the enrolment form, failing which the form is liable to be
rejected.
In case, the enrolment period has been filled, but the CapSTP Date and/or
Frequency (Monthly/ Quarterly) has not been indicated, Monthly frequency
shall be treated as Default frequency and 10th shall be treated as Default
Date. In case of weekly frequency, Wednesday shall be treated as Default
day.
In case none of the frequency is selected then Monthly frequency shall be
treated as Default frequency and 10th shall be treated as Default Date.
The application for CapSTP enrolment - Monthly & Quarterly frequency
should be submitted at least 7 working days and not more than 90 days
before the desired commencement date.
In respect of CapSTP, the Load Structure prevalent at the time of enrolment
shall govern the investors during the tenure of the CapSTP.
A minimum period of 7 working days shall be required for registration under
CapSTP. Units will be allotted/redeemed at the applicable NAV (of the
respective date(s)) of the Scheme from/to which such
withdrawals/investments are being made.
The AMC reserves the right to introduce CapSTPs at any other frequencies or
on any other dates as the AMC may feel appropriate from time to time. In
the event that such a day is a Holiday, the transfer would be affected on
the next Business Day.
The requests for discontinuation of CapSTP shall be subject to an advance
notice of 15 days before the next due date for CapSTP.
72 Axis Banking & PSU Debt Fund
CapSTP will terminate automatically if all Units are liquidated or withdrawn
from the account or upon the Funds’ receipt of notification of death or
incapacity of the Unit holder. Further, in case where the balance amount in
a folio is less than the CapSTP amount, the entire amount will be transferred
to the transferee scheme.
FLEX - SYSTEMATIC INVESTMENT PLAN/ SYSTEMATIC TRANSFER PLAN ("Flex SIP/
Flex STP")
Terms and conditions of Flex SIP/STP are as follows:
1. Flex SIP is a facility wherein an investor can opt to invest variable amount
linked to the value of his investments in any of the existing open ended
scheme(s) of Axis Mutual Fund (“Investee scheme”), on pre-determined
date. This facility allows investors to take advantage of market
movements by investing higher when the markets are low and vice-
versa.
2. Flex STP is a facility wherein an investor under any of the existing open
ended scheme(s) of Axis Mutual Fund can opt to transfer variable
amount linked to value of his investments, on predetermined date from
designated open-ended Scheme(s) of Axis Mutual Fund ("Transferor
Scheme") to the Growth Option of designated open-ended Scheme(s)
("Transferee Scheme").
3. A single Flex SIP/STP Enrolment Form can be filled for investment/ transfer
into one Scheme/Plan/Option only.
4. In case of valid enrolment forms received, indicating choice of option
other than the growth option in the Investee / Transferee Scheme, it will
be deemed as the growth option in the Investee / Transferee Scheme
and processed accordingly.
5. In case of Flex STP, unit holders' details and mode of holding (single,
jointly, anyone or survivor) in the Transferee Scheme will be as per the
existing folio number of the Transferor Scheme. Units will be allotted
under the same folio number. Unitholders' name should match with the
details in the existing folio number, failing which the enrolment form is
liable to be rejected.
6. The minimum number of installments for enrollment and Amount under
Flex STP:
Frequency under Flex-STP
Facility
Minimum
Installments
Minimum Flex-STP
amount*
Monthly (1st, 7th,10th,15th
or 25th)
6 Rs. 1,000/- and in
multiple of Rs. 1/-
Quarterly (1st, 7th,10th,15th
or 25th)
2 Rs. 3,000/- and in
multiple of Rs. 1/-
7. The minimum number of installments for enrollment and Amount under
Flex SIP:
Frequency
under Flex-SIP
Facility
Minimum Installments Minimum Flex-SIP
amount
Monthly 12 Installments for all
schemes
Rs. 1,000/- and in multiple
of Rs. 1/-
Yearly 3 Installments for all
schemes
Rs. 12,000/- and in
multiple of Rs. 1/-
There is no maximum duration for Flex SIP/ STP enrolment.
8. Calculation of Flex STP
73 Axis Banking & PSU Debt Fund
Under the Flex STP – (as per the Frequency) unit holders will be eligible to
transfer fixed amount to be transferred per installment OR the amount as
determined by the following formula whichever is higher:
Fixed installment amount or (number of installments including the current
installment X fixed amount to be transferred per installment) - market
value of the investments through Flex STP in the Transferee Scheme on
the date of transfer whichever is Higher
In case of Flex STP, if the amount (as specified by the formula) to be
transferred under STP is not available in the Transferor Scheme in the unit
holder's account, the residual amount will be transferred to the
Transferee Scheme and Flex STP will be closed.
9. Calculation of Flex SIP
Under the Flex SIP – (as per the Frequency) unit holders will be eligible to
invest fixed amount to be invested per installment OR the amount as
determined by the following formula whichever is higher:
Fixed installment amount or (number of installments including the current
installment X fixed amount to be invested per installment) - market value
of the investments through Flex SIP* in the Investee Scheme whichever is
Higher
*The installment value of Flex SIP will be determined on the basis of NAV
on 10th day (T-10) before the installment date. If T-10th day falls on a Non-
Business day or falls during a book closure period, then valuation will be
done on T-11th day.
In case of Flex SIP, the required amount is not available in the
designated bank account and the debit instruction fails then Flex SIP will
be stopped.
10. If the NAV falls continuously throughout the Flex STP period, number of
installments may be less than those mentioned on application form.
11. The first Flex SIP/STP instalment will be processed for the fixed instalment
amount specified by the unit holder at the time of enrolment. From the
second Flex SIP/STP instalment onwards, the investment/ transfer amount
shall be computed as per formula stated above.
12. In case the date of investment/ transfer falls on a Non-Business Day or
falls during a book closure period, the immediate next Business Day will
be considered for the purpose of determining the applicable NAV.
13. Once the Flex SIP/ STP have been stopped the unit holder needs to
provide a new request to start Flex SIP/ STP.
14. The redemption/ switch-out of units allotted in the Investee/ Transferee
Scheme shall be processed on First in First out (FIFO) basis. If there are
other financial transaction (purchase, redemption or switch) processed
in the Investee/ Transferee scheme during the tenure of Flex SIP/ STP, the
Flex SIP / STP will be processed as normal SIP / STP for the rest of the
instalments for a fixed amount.
15. In respect of Flex SIP / STP enrollments made in any of the existing open
ended Scheme(s), the Load Structure prevalent at the time of enrollment
shall be applicable to the investors during the tenure of the Flex SIP / STP.
Load structure for investments through Flex SIP / STP to the Schemes
eligible for this facility:
a. Exit Load of the Transferor Scheme(s)
The amount transferred under the Flex STP from the Transferor
Scheme to the Transferee Scheme shall be affected by switching
74 Axis Banking & PSU Debt Fund
units of Transferor Scheme at applicable NAV, after payment of exit
load, if any, and subscribing to the units of the Transferee Scheme at
Applicable NAV.
b. Exit Load of the Investee /Transferee Scheme(s)
Applicable Exit Load, if any, in the Investee / Transferee Schemes
Plan /Option as on the date of enrollment will also be levied. For
Scheme load structure please refer to SID/ KIM or contact the
nearest Investor Service Centre (ISC) of Axis Mutual Fund or visit our
website www.axismf.com.
16. Flex STP will be automatically terminated if all units are liquidated or
withdrawn from the Transferor Scheme or pledged or upon receipt of
intimation of death of the unit holder.
17. The provision of 'Minimum Redemption Amount' as specified in the
Scheme Information Document of the respective designated Transferor
Scheme(s) and 'Minimum Application Amount' specified in the Scheme
Information Document of the respective designated Transferee
Scheme(s) will not be applicable for Flex SIP/ STP.
18. The request for Flex SIP/ STP should be submitted at least 25 calendar
days before the first SIP and at least 7 calendar days before STP date.
19. Unit holders have a right to discontinue the Flex SIP/ STP facility at any
time by sending a written request to the ISC. On receipt of such request,
the Flex SIP / STP facility will be terminated within 20 working days.
20. All other terms & conditions of Systematic Investment Plan and
Systematic Transfer Plan are applicable to Flex SIP and STP respectively.
Illustration: Calculation of Flex STP
Flex SIP/ STP that transfers Rs. 3,000/- every month from the Debt Fund to an
Equity Fund.
Transferor Scheme: Axis Credit Risk Fund
Transferee Scheme: Axis Bluechip Fund - Growth
Option
Date & Frequency of Flex STP: 10th date - Monthly Interval
Amount of Transfer per Installment Rs 3,000/-
Number of Installments: 12
Enrolment Period: January - December 2013
Calculation of Flex STP instalment amount on the date of the fourth
instalment i.e. April 10, 2013
i. Total units allotted up to the date of last installment i.e. March 10, 2013
is assumed as 822.73;
ii. NAV of Axis Bluechip Fund - Growth Option on April 10, 2013 is assumed
as Rs. 9/- per unit;
iii. Hence the market value of the investment in the Investee / Transferee
Scheme on the date of investment/ transfer is Rs. 7, 404.55[822.73X 9].
The installment amount will be calculated as follows:
a) Fixed amount specified at the time of enrolment: Rs.3,000/-
Or
b) As determined by the formula: (3,000 X
4) – 7,404.55 = Rs. 4,595/-
a) or b)Whichever is Higher.
Hence, on April 10, 2013, the installment amount to be transferred to the
Transferee Scheme will be Rs. 4,595/-.
Illustration: Calculation of Flex SIP
75 Axis Banking & PSU Debt Fund
Investee Scheme: Axis Bluechip Fund - Growth
Option
Date & Frequency of Flex SIP: 10th date - Monthly Interval
Amount per Installment Rs 3,000/-
Number of Installments: 12
Enrolment Period: January - December 2013
Calculation of Flex SIP instalment amount for the 4th instalment i.e. April 10,
2013
i. Total units allotted up to the date of last installment i.e. March 10, 2013
is assumed as 822.73;
ii. NAV of Axis Bluechip Fund - Growth Option on T-10th day* is assumed
as Rs. 9/- per unit;
iii. Hence the market value of the investment in the Investee Scheme on
T-10th day is Rs. 7,404.55[822.73X 9].
The installment amount will be calculated as follows:
a. Fixed amount specified at the time of enrolment: Rs.3,000/-
Or
b. As determined by the formula: (3,000 X
4) – 7,404.55 = Rs. 4,595/-
a) or b)Whichever is Higher.
Hence, on April 10, 2013, the installment amount to be invested to the
Investee Scheme will be Rs. 4,595/-.
*The installment value of Flex SIP will be determined on the basis of NAV on
10th day (T-10) before the installment date. In the above example T-10th day
will be 31st March 2013.
Investors are advised to read the SID/ KIM of the Transferee Scheme(s) and
Statement of Additional Information carefully before investing. The SID/ KIM
of the respective Scheme(s) are available with the ISCs of Axis Mutual Fund,
brokers/distributors and also displayed on the Axis Mutual Fund website i.e.
www.axismf.com
SYSTEMATIC WITHDRAWAL PLAN (SWP)
Existing Unitholders have the benefit of availing the choice of SWP on pre-
specified dates. The SWP allows the Unitholder to withdraw a specified sum
of money each month/ quarter from his investments in the Scheme.
The amount thus withdrawn by redemption will be converted into Units at
Applicable NAV based prices and the number of Units so arrived at will be
subtracted from the Units balance to the credit of that Unitholder.
Unitholders may start the facility/ change the amount of withdrawals or the
period of withdrawals by giving a 15 days written intimation/notice. The SWP
may be terminated by a Unitholder by giving 15 days written intimation/
notice and it will terminate automatically if all the Units are liquidated or
withdrawn from the account or the holdings fall below the SWP installment
amount.
There are four options available under SWP viz. Monthly option, quarterly
option, Half Yearly and Yearly option. The details of which are given below:
Monthly
Option
Quarterly
Option
Half Yearly
Option
Yearly
Option
76 Axis Banking & PSU Debt Fund
Minimum value of
SWP
Rs. 1,000/-
Additional
amount in
multiples of
Re.1
Dates of SWP
Installment
1/5/10/15/25*
Minimum No of
SWP
Six Four Four Two
* In the event that such a day is a non-business day, the withdrawals would
be affected on the next business day.
Exit Load, if any, is applicable to SWP.
The AMC reserves the right to accept SWP applications of different amounts,
dates and frequency.
Unitholders can enroll themselves for the facility by submitting the duly
completed Systematic Withdrawal enrolment Form at any of the Investor
Service Centres (ISCs)/Official Points of Acceptance (OPAs). The AMC /
Trustee reserve the right to change / modify the terms and conditions under
the SWP prospectively at a future date.
SWITCHING OPTIONS
(a) Inter - Scheme Switching option
Unit holders under the Scheme have the option to Switch part or all of their
Unit holdings in the Scheme to any other Scheme offered by the Mutual
Fund from time to time. The Mutual Fund also provides the Investors the
flexibility to Switch their investments from any other scheme(s) / plan (s)
offered by the Mutual Fund to this Scheme. This option will be useful to Unit
holders who wish to alter the allocation of their investment among the
scheme(s) / plan(s) of the Mutual Fund in order to meet their changed
investment needs.
The Switch will be effected by way of a Redemption of Units from the
Scheme at Applicable NAV, subject to Exit Load, if any and reinvestment of
the Redemption proceeds into another Scheme offered by the Mutual Fund
at Applicable NAV and accordingly the Switch must comply with the
Redemption rules of the Switch out Scheme and the Subscription rules of the
Switch in Scheme.
(b) Intra -Scheme Switching plan/option
Unit holders under the Scheme have the option to Switch their Units holding
from one plan/option to another plan/option (i.e. Axis Banking & PSU Debt
Fund – Regular Plan to Axis Banking & PSU Debt Fund – Direct Plan and
Growth to Dividend and vice-a-versa). The Switches would be done at the
Applicable NAV based prices and the difference between the NAVs of the
two options will be reflected in the number of Units allotted.
Switching shall be subject to the applicable “Cut off time and Applicable
NAV” stated elsewhere in the Scheme Information Document. In case of
“Switch” transactions from one scheme to another, the allocation shall be in
line with Redemption payouts.
TRANSACTION ON FAX
In order to facilitate quick processing of transaction and / or instruction of
77 Axis Banking & PSU Debt Fund
investment of investor the AMC/ Trustee/ Mutual Fund may (at its sole
discretion and without being obliged in any manner to do so and without
being responsible and/ or liable in any manner whatsoever) accept and
process any application, supporting documents and / or instructions
submitted by an investor / Unit holder by facsimile (Fax Submission) and the
investor / Unit holder voluntarily and with full knowledge takes and assumes
any and all risk associated therewith. The AMC / Trustee/ Mutual Fund shall
have no obligation to check or verify the authenticity or accuracy of Fax
Submission purporting to have been sent by the investor and may act
thereon as if same has been duly given by the investor. In all cases the
investor will have to immediately submit the original documents/ instruction
to AMC/ Mutual Fund.
ONLINE TRANSACTIONS
Axis Mutual Fund will allow Transactions including by way of Lumpsum
Purchase/ Redemption / Switch of Units by electronic mode through the
AMC web–site / Mobile Application. The Subscription proceeds, when
invested through this mode, are by way of direct debits to the designated
bank through payment gateway. The Redemption proceeds, (subject to
deduction of tax at source, if any) through this mode, are directly credited
to the bank account of the Investors who have an account at the
designated banks with whom the AMC has made arrangements from time
to time or through NEFT/RTGS or through cheque/Payorder/Demand draft
issuance. The AMC will have right to modify the procedure of transaction
processing without any prior intimation to the Investor.
Investment amount through this facility may be restricted by the AMC from
time to time in line with prudent risk management requirements and to
protect the overall interest of the Investors.
For details of the facility, investors are requested to refer to the website of
the AMC.
TRANSACTIONS THROUGH ELECTRONIC PLATFORM(S) OF KARVY FINTECH PVT.
LTD.
Investors will be allowed to transact through www.karvymfs.com, an
electronic platform provided by M/s. Karvy Fintech Pvt. Ltd. (‘Karvy’),
Registrar & Transfer Agent, in Schemes of Axis Mutual Fund (‘Fund’) (except
Axis Gold ETF and Axis Nifty ETF). The facility will also be available through
mobile application of Karvy.
The uniform cut off time as prescribed under the SEBI (Mutual Funds)
Regulations, 1996 and as mentioned in SID and KIM of the Scheme will be
applicable for transactions received through the above electronic platform
and the time of receipt of transaction recorded on the server(s) of Karvy will
be reckoned as the time for the purpose of determining applicability of
NAV, subject to credit of funds to bank account of scheme, wherever
applicable.
The facility is subject to operating guidelines, terms and conditions as may
be prescribed by Karvy or as may be specified by Axis AMC from time to
time. For operating guidelines and terms and conditions , investors are
requested to visit www.karvymfs.com.
Time of receipt of transaction recorded on the server(s) of Karvy will
continue to be reckoned for electronic transactions received through AMC
website/ Distributor website/ applications etc subject to credit of funds to
78 Axis Banking & PSU Debt Fund
bank account of scheme, wherever applicable.
ONLINE SCHEDULE TRANSACTION FACILITY (‘THE OST FACILITY’/ ‘THE FACILITY’):
The OST facility shall enable Unitholders to schedule subscription /
redemption / switch transaction(s) on specified date for specified amount/
units by giving online instruction.
The terms and conditions of the OST facility shall be as under:
1. The Facility is available to the existing Unitholders of open ended
schemes of Axis Mutual Fund (except Axis Gold ETF and Axis Nifty ETF),
subject to completion of lock-in, if any.
2. The Facility is available only to Individual (including sole proprietor)
Unitholders for units held in / subscription in physical mode.
3. The Facility for subscription transaction would be available to unitholders
after completion of OTM Mandate / Easycall mandate/ equivalent
mandate registration process and as per limits specified therein.
4. Under the Facility the transaction can be scheduled to be executed on
a specified date which shall be within 30 calendar days from the date of
the instruction. Such specified date shall be a business day. In case the
scheduled transaction date falls on a non-business day, the transaction
will be executed on the immediately following business day.
5. The Facility shall be available on online transaction platform(s) viz
website of Axis AMC i.e. www.axismf.com. Axis AMC may extend the
Facility to other transaction platforms from time to time, at its discretion.
6. The scheduled transaction may be cancelled by giving suitable
instruction atleast one calendar day prior to the scheduled transaction
date.
7. The triggered transaction on the scheduled date shall be considered as
time stamped and will be executed on the specified date at the
applicable NAV of the relevant scheme. In case the specified date
happens to be a non-business day in debt schemes but is a business day
in equity schemes, switch-out from equity schemes will be processed on
the specified date, while the switch-in to debt/liquid schemes will be
processed on the next business day.
8. The scheduled transaction(s) shall be subjected to exit load, minimum
subscription/additional subscription application and other terms and
conditions of the relevant scheme as per SID applicable on the specified
date.
9. The scheduled transaction shall be liable to be rejected if sufficient
amount is not available for subscription or sufficient number of units /
amount is not available for redemption.
10. Redemption transactions will not be executed in case units are pledged
or where lien is marked on units, at the time of online instruction / on
specified date.
11. Unitholders availing of this facility shall acquaint themselves with the
features of the Scheme, including any modification / amendments
carried out before the specified date.
The Facility is an additional facility provided to the Unitholders to plan their
transactions in schemes using online platforms.
Axis AMC / Trustee reserves the right to change/ modify the terms and
conditions or to make operational rules for operation of the Facility from time
to time.
EASY CALL FACILITY
All individual investors in the scheme applying on “Sole” or “Joint (Anyone or
79 Axis Banking & PSU Debt Fund
Survivor)” basis in their own capacity shall be eligible to avail of Easy Call
facilities for permitted transactions inter alia on the following terms and
conditions (“Terms and Conditions” mean the terms and conditions set out
below by which the Facility shall be used/availed by the Investor/s and shall
include all modifications and supplements made by AMC thereto from time
to time).
Axis Mutual Fund will allow transactions including by way of Lumpsum
Purchase/ Redemption / Switch of Units over phone. Initial Investment has to
be through physical mode wherein he has to sign a one time debit mandate
for bank accounts pertaining to designated banks with which the AMC may
have an arrangement. This facility is extended to the bank with which the
Fund would have an arrangement from time to time. Investment amount
may be restricted by the AMC from time to time in line with prudent risk
management requirements and to protect the overall interest of the
Investors.
Investor will be allowed transactions over phone after 30 days from the date
of submission of one time mandate. Investor will not be permitted to avail
the Easy call facility for Redemptions/Switch transactions if bank mandate is
changed with in last 15 days. AMC will have right to modify the procedure of
transaction processing without any prior intimation to the Investor. AMC
retains the right to maintain call records of the communication with
investors, for lawful purposes.
The AMC has a right to ask such information (Key Information) from the
available data of the Investor/s before allowing him access to avail the
Facility. If for any reason, the AMC is not satisfied with the replies of the
Investor/s, the AMC has at its sole discretion the right of refusing access
without assigning any reasons to the Investor/s.
It is clarified that the Facility is a service provided to the Investor/s and is
offered at the sole discretion of the AMC. The AMC is not bound and/or
obliged in any way to offer this Facility to Investor/s.
The Investor/s shall check his/her account records carefully and promptly. If
the Investor/s believes that there has been a mistake in any transaction
using the Facility, or that unauthorized transaction has been effected, the
Investor/s shall notify the AMC immediately. If the Investor/s defaults in
intimating the discrepancies in the statement within a period of fifteen days
of receipt of the statements, he waives all his rights to raise the same. By
opting for the facility the Investor/s hereby irrevocably authorizes and
instructs the AMC to act on his /her behalf and to do all such acts as AMC
may find necessary to provide the Facility.
The Investor/s shall at all times be bound by any modifications and/or
variations made to these Terms and Conditions by the AMC at their sole
discretion and without notice to them.
The Investor/s agrees and confirms that the AMC has the right to ask the
Investor/s for an oral or written confirmation of any transaction request using
the Facility and/or any additional information regarding the Account of the
Investor/s.
The Investor/s agrees and confirms that the AMC may at its sole discretion
suspend the Facility in whole or in part at any time without prior notice.
80 Axis Banking & PSU Debt Fund
The Investor/s shall not assign any right or interest or delegate any obligation
arising herein.
The Investor/s shall take responsibility for all the transactions conducted by
using the Facility and will abide by the record of transactions generated by
the AMC. Further, the Investor/s confirms that such records generated by the
AMC shall be conclusive proof and shall be binding for all purposes and may
be used as evidence in any proceedings and that the investor(s)
unconditionally waives all objections in this behalf.
The Investor/s agree that use of the Facility will be deemed to be an
acceptance of the Terms and Conditions and the Investor/s will
unequivocally be bound by these Terms and Conditions. The Investor agrees
that all calls received shall be eligible for applicable NAV subject to
necessary formalities to be complied by the AMC in case of transaction
through Easy Call Facility on or before the uniform cut off time.
Requests like change in bank mandate, change of nomination, change in
mode of holding, change of address or such other requests as the AMC may
decide from time to time will not be permitted using the Easy Call facility.
The investor agrees to indemnify and keep indemnified Axis AMC its
Directors, employees, representatives and service providers of the AMC, Axis
Mutual Fund and Trustees (indemnified parties) from and against all actions,
claims, demands, liabilities, obligations, losses, damages, costs and expenses
of whatever nature (whether actual or contingent) directly or indirectly
suffered or incurred, by the indemnified parties whatsoever arising from or in
connection with the Facility. The Investor/s shall not hold the AMC liable and
shall keep it indemnified for the following:
1) For any transaction using the Facilities carried out in good faith by the
AMC on instructions of the Investor/s.
2) For any loss or damage incurred or suffered by the Investor/s due to any
error, defect, failure or interruption in the provision of the Facility.
3) For any negligence / mistake or misconduct by the Investor/s.
4) For any breach or non-compliance by the Investor/s of the rules/terms
and conditions stated in this Document.
5) For accepting instructions given by any one of the Investor/s in case of
joint account/s having mode of operations as ““Anyone or survivor”.
6) For not carrying out any such instructions where the AMC has reason to
believe (which decision of the AMC the Investor/s shall not question or
dispute) that the instructions given are not genuine or are otherwise
improper, unclear, vague or raise a doubt.
7) For carrying out a transaction after such reasonable verification as the
AMC may deem fit regarding the identity of the Investor/s
MISCELLANEOUS:
1) The Investor/s agrees and understands that while this Facility is being
introduced without any charges being levied; in case charges are to be
levied on a future date he agrees to pay such charges and
nonpayment in such an event can lead to termination of these services.
2) Any dispute arising out of or in connection with these Terms and
Conditions, will be referred to the arbitration of a sole arbitrator to be
appointed by the AMC, in accordance with the Arbitration &
Conciliation Act, 1996.
3) These Terms and Conditions are subject to applicable SEBI (Mutual
Funds) Regulations, 1996 as amended from time to time and includes
Guidelines, Circular press release or Notification that may be issued.
81 Axis Banking & PSU Debt Fund
EASY SMS FACILITY
This facility is available for individual investors (registration process to be
completed by the investor to avail this facility). For details of the registration
process, please contact our Investor Service Centres/website of the AMC.
All individual investors applying on “Sole” or “Joint (Anyone or Survivor)” basis
in their own capacity shall be eligible to avail the facility for permitted
transactions i.e. for lump sum purchase, redemption and switch transactions
on the below mentioned terms and conditions: “Terms and Conditions”
mean the terms and conditions set out below by which the Facility shall be
used/availed by the Investors and shall include all modifications and
supplements made by AMC thereto from time to time.
Initial Investment has to be through the physical mode wherein the Investor
has to sign a one time debit mandate for bank accounts pertaining to
designated banks with which the AMC may have an arrangement. This
facility is extended to the bank with which the Fund would have an
arrangement from time to time. Transaction amount may be restricted by
the AMC from time to time in line with prudent risk management
requirements and to protect the overall interest of the Investors. Investor will
be allowed transactions over SMS after 30 days from the date of submission
of one time mandate. Investor will not be permitted to avail the facility for
Redemptions/Switch transactions if bank mandate is changed within last 15
days. AMC will have right to modify the procedure of transaction processing
without any prior intimation to the Investor.
The AMC has a right to ask such information (Key Information) from the
available data of the Investors before allowing him access to avail the
Facility. If for any reason, the AMC is not satisfied with the replies of the
Investors, the AMC has at its sole discretion the right of refusing access
without assigning any reasons to the Investors.
This facility can be availed only through the registered mobile number of the
Investor.
It is clarified that the Facility is only with a view to accommodate /facilitate
the Investors and offered at the sole discretion of the AMC. The AMC is not
bound and/or obliged in any way to give access to Facility to Investors. The
Investors shall check his/her account records carefully and promptly. If the
Investors believe that there has been a mistake in any transaction using the
Facility, or that unauthorized transaction has been effected, the Investors
shall notify the AMC immediately. If the Investors defaults in intimating the
discrepancies in the statement within a period of fifteen days of receipt of
the statements, he waives all his rights to raise the same in favour of the
AMC, unless the discrepancy /error is apparent on the face of it. By opting
for the facility the Investors hereby irrevocably authorizes and instructs the
AMC to act as his /her agent and to do all such acts as AMC may find
necessary to provide the Facility.
The Investors shall at all times be bound by any modifications and/or
variations made to these Terms and Conditions by the AMC at their sole
discretion and without notice to them.
The Investor agrees and confirms that the AMC has the right to ask the
Investor for an oral or written confirmation of any transaction request using
the Facility and/or any additional information regarding the Account of the
82 Axis Banking & PSU Debt Fund
Investor. The Investor agrees and confirms that the AMC may at its sole
discretion suspend the Facility in whole or in part at any time without prior
notice. The Investor shall not assign any right or interest or delegate any
obligation arising herein. The Investor shall take responsibility for all the
transactions conducted by using the Facility and will abide by the record of
transactions generated by the AMC. Further, the Investor confirms that such
records generated by the AMC shall be conclusive proof and binding for all
purposes and may be used as evidence in any proceedings and
unconditionally waives all objections in this behalf.
The Investor agrees that use of the Facility will be deemed acceptance of
the Terms and Conditions and the Investor will unequivocally be bound by
these Terms and Conditions. The Investor agrees that all transactions
received shall be eligible for applicable NAV subject to necessary formalities
to be complied by the AMC in case of transaction through the facility on or
before the uniform cut off time.
Requests like change in bank mandate, change of nomination, change in
mode of holding, change of address or such other requests as the AMC may
decide from time to time will not be permitted using the facility.
Investors should SMS HELP PURCHASE/REDEMPTION/SWITCH to 9212010033 in
order to avail the facility post registration. The procedure for availing the
facility will be communicated to the investor. Alternatively, the investor can
also get in touch with the Investor Service Centres of the AMC.
Karvy, Registrar & Transfer Agents to Axis Mutual Fund having its office at
Unit: Axis Mutual Fund, Karvy Selenium, Tower B, Plot number 31 & 32,
Financial District, Gachibowli, Hyderabad - 500008 will be the official point of
acceptance for such transactions received for Axis Mutual Fund schemes.
The investor agrees to indemnify and keep indemnified Axis AMC its
Directors, employees, representatives of the AMC, Axis Mutual Fund and
Trustees (indemnified parties) from and against all actions, claims, demands,
liabilities, obligations, losses, damages, costs and expenses of whatever
nature (whether actual or contingent) directly or indirectly suffered or
incurred, against the indemnified parties whatsoever arising from or in
connection with the Easy Call Facility. The Investor/s shall not hold the AMC
liable and shall keep it indemnified for the following:
1. For any transaction using the Facilities carried out in good faith by the
AMC on instructions of the Investor/s.
2. For any loss or damage incurred or suffered by the Investor/s due to any
error, defect, failure or interruption in the provision of the Facility.
3. For any negligence / mistake or misconduct by the Investor/s.
4. For any breach or non-compliance by the Investor/s of the rules/terms
and conditions stated herein.
5. For accepting instructions given by any one of the Investor/s in case of
joint account/s having mode of operations as “anyone or survivor”.
6. For not carrying out any such instructions where the AMC has reason to
believe (which decision of the AMC the Investor/s shall not question or
dispute) that the instructions given are not genuine or are otherwise
improper, unclear, vague or raise a doubt.
7. For carrying out a transaction after such reasonable verification as the
AMC may deem fit regarding the identity of the Investor/s
MISCELLANEOUS:
1) The Investor/s agrees and understands that while this Facility is being
83 Axis Banking & PSU Debt Fund
introduced without any charges being levied; in case charges are to be
levied on a future date he agrees to pay such charges and
nonpayment in such an event can lead to termination of these services.
2) Any dispute arising out of or in connection with these Terms and
Conditions, will be referred to the arbitration of a sole arbitrator to be
appointed by the AMC, in accordance with the Arbitration &
Conciliation Act, 1996.
3) These Terms and Conditions are subject to applicable SEBI (Mutual
Funds) Regulations, 1996 as amended from time to time and includes
Guidelines, Circular press release or Notification that may be issued.
DIVIDEND SWEEP OPTION (DSO)
The terms and conditions of Dividend Sweep Option (DSO) are as follows:
1) Dividend Sweep Option (DSO) is a facility wherein unit holder(s) of
eligible scheme(s) [hereinafter referred to as "Source Scheme(s)"] of Axis
Mutual Fund can opt to automatically invest the dividend (as reduced
by the amount of applicable statutory levy) declared by the eligible
Source Scheme(s) into other eligible Scheme(s) [hereinafter referred to
as "Target Scheme(s)"] of Axis Mutual Fund.
2) The facility is available under all the open ended schemes of Axis Mutual
Fund except Exchange Traded Funds (ETFs).
3) DSO facility is available to unit holder(s) only under the Dividend Plan /
Option of the Source Scheme(s). However, the DSO facility will not be
available to unit holder(s) under the Daily Dividend Option in the Source
Scheme(s). Unit holder’s enrolment under the DSO facility will
automatically override any previous instructions for 'Dividend Payout' or
'Dividend Reinvestment' facility in the Source Scheme.
4) The enrolment for DSO facility should be for all units under the respective
Dividend Plan / Option of the Source Scheme. Instructions for part
Dividend Transfer and part Dividend Payout / Reinvestment will not be
accepted. The dividend amount will be invested in the Target Scheme
under the same folio. Accordingly, the unit holder(s) details and mode of
holding in the Target Scheme will be same as in the Source Scheme.
5) The enrolment to avail of DSO facility has to be specified for each
Scheme/Plan/Option separately and not at the folio level.
6) Under DSO, dividend declared (as reduced by the amount of
applicable statutory levy and deductions) in the Source scheme (subject
to minimum of Rs. 1,000/-) will be automatically invested into the Target
Scheme, as opted by the unit holder, on the immediate next Business
Day after the Record Date at the applicable NAV of the Target Scheme,
subject to applicable load as specified under paragraph 9 below and
accordingly equivalent units will be allotted in the Target Scheme,
subject to the terms and conditions of the respective Target Scheme.
7) The provision for 'Minimum Application Amount' specified in the
respective Target Scheme's Scheme Information Document (SID) will not
be applicable under DSO. E.g. the minimum application amount for new
investors in Axis Bluechip Fund - Growth Plan is 5,000/-. However in case
of DSO, a Unit Holder can avail of the facility irrespective of the amount
of dividend (subject to a minimum of 1,000/-).
8) The Minimum amount of dividend eligible for transfer under Dividend
Sweep Option is 1,000/- (Rupees One Thousand Only). In case the
dividend sweep is being less than eligible amount, then the dividend will
be re-invested in source scheme/ payout as per the existing option.
9) Load Structure:
The dividend amount to be invested under the DSO from the Source
Scheme to the Target Scheme shall be invested by subscribing to the
units of the Target Scheme at applicable NAV, subject to payment of
84 Axis Banking & PSU Debt Fund
Entry/Exit Load as under:
Entry Load (Target Scheme)
Direct Applications & Applications routed through any
distributor/agent/broker: Nil
Exit Load (Source Scheme): Nil
Exit Load (Target Scheme): As per the relevant SID(s)
The Trustee/AMC reserves the right to change the load structure under
the DSO Facility at any time in future on a prospective basis.
10) The Account Statement will be issued by mail or by email (if opted by the
unit holder) to the unit holder as per regulations. In case of specific
request received from unitholders, the Mutual Fund shall endeavour to
provide the account statement to the unitholders after every transaction
of Dividend Transfer.
11) Unitholders who wish to enroll for DSO facility are required to fill DSO
Enrolment Form available with the ISCs, distributors/agents and also
displayed on the website www.axismf.com. The DSO Enrolment Form
should be completed in English in Block Letters only. The DSO Enrolment
Form complete in all aspects should be submitted at any of the Investor
Services centre (ISCs) of Axis Mutual Fund.
12) The request for enrolment for DSO must be submitted at least 10 days
prior to the Record Date for the dividend. In case of the condition not
being met, the enrolment would be considered valid from the
immediately succeeding Record Date of the dividend, provided the
difference between the date of receipt of a valid application for
enrolment under DSO and the next Record Date for dividend is not less
than 10 days.
13) Unitholder(s) are advised to read the SID of Target Scheme(s) carefully
before investing. The SID / KIM of the Scheme(s) are available with the
ISCs of Axis Mutual Fund, brokers / distributors and also displayed on the
Axis Mutual Fund website i.e. – www.axismf.com
14) Unit holders will have the right to discontinue the DSO facility at any time
by sending a written request to the ISC. Notice of such discontinuance
should be received at least 10 days prior to the Dividend Record Date.
On receipt of such request, the DSO facility will be terminated. At the
time of discontinuation of DSO facility, the Unit holders should indicate
their choice of option i.e. dividend reinvestment or dividend payout. In
the event the Unitholder does not indicate his choice of dividend option,
the dividend, if any, will be reinvested (compulsory payout if dividend
reinvestment option is not available) in the Source Scheme. Once the
request for DSO is registered, then it shall remain in force unless it is
terminated as aforesaid.
15) The Trustee/AMC reserves the right to change/modify the terms and
conditions of the DSO.
The Trustee reserves the right to change/ modify the terms and conditions of
the DSO at a later date on a prospective basis.
TRIGGER FACILITY
Trigger is an event on the happening of which, the Fund will automatically
redeem / switch the units, as the case may be, on behalf of the investor, on
the date of happening of the event. Accordingly, a trigger will activate a
transaction when the event selected for has reached the trigger point. All
redemptions/ switches etc. linked to triggers will always be at the applicable
NAV based prices of the day on which the event occurs. The investors
opting for the Trigger facility will also have right to redeem/ switch their
holdings before happening of the trigger event. Please note that the trigger
85 Axis Banking & PSU Debt Fund
is an additional facility provided to the unit holders to save time on
completing the redemption/ switch formalities on happening of a particular
predetermined event. Trigger is not an assurance on part of AMC / Fund to
the investor that he / she will receive a particular amount of money /
appreciation and / or a percentage on redemption or will get a particular
amount of capital appreciation or will minimise the loss to
investor to a particular amount or percentage.
1. Schemes for which the facility is available:
Transferor Scheme(s) Transferee Scheme(s)
Axis Liquid Fund Axis Liquid Fund
Axis Treasury Advantage
Fund Axis Treasury Advantage Fund
Axis Short Term Fund Axis Short Term Fund
Axis Banking & PSU Debt
Fund Axis Banking & PSU Debt Fund
Axis Bluechip Fund Axis Bluechip Fund
Axis Midcap Fund Axis Midcap Fund
Axis Focused 25 Fund Axis Focused 25 Fund
Axis Triple Advantage Fund Axis Triple Advantage Fund
Axis Regular Saver Fund Axis Regular Saver Fund
Axis Gold Fund Axis Gold Fund
Axis Dynamic Bond Fund Axis Dynamic Bond Fund
Axis Strategic Bond Fund Axis Strategic Bond Fund
Axis Long Term Equity Fund Axis Long Term Equity Fund
Axis Children's Gift Fund Axis Children's Gift Fund
Axis Smallcap Fund Axis Smallcap Fund
Axis Corporate Debt Fund Axis Corporate Debt Fund
Axis Dynamic Equity Fund Axis Dynamic Equity Fund
Axis Gilt Fund
Axis Equity Hybrid Fund Axis Equity Hybrid Fund
Axis Multicap Fund Axis Multicap Fund
Axis Growth Opportunities
Fund
Axis Growth Opportunities Fund
Axis Ultra Short Term Fund Axis Ultra Short Term Fund
Axis Overnight Fund Axis Overnight Fund
Axis Nifty 100 Index Fund Axis Nifty 100 Index Fund
@ Investors who have completed the lock-in period specified in the Scheme
Information Document may apply for trigger facility.
2. Under the Trigger facility, investors will have the following options on the
date of happening of the event:
a) Full Redemption / Switch Out
b) Redemption / Switch Out to the extent of capital appreciation only
c) Redemption / Switch Out to the extent of Principal amount only
The trigger facility is available only for the options specified above and is not
available for any ad-hoc amount that the investor may specify.
3. The investors can select any one of the following trigger option(s) under
various plans / options of the Scheme:
i. Option to redeem / switch out in the event, Nifty Index reaches or
exceeds a specified level, at the end of any business day.
Under this option, the investor can specify that if the index (NIFTY)
86 Axis Banking & PSU Debt Fund
reaches or exceeds a particular level at the close of any business day,
then the amount specified by the investor will be either redeemed /
switched to the selected transferee scheme.
ii. Option to redeem / switch out in the event Nifty Index reaches or goes
below a specified level, at the end of any business day.
Under this facility, the investor can specify that if the index (NIFTY)
reaches a particular level or goes below that at the close of any business
day, then the amount specified shall either be redeemed / switched to
the selected transferee scheme.
iii. Option to redeem / switch out in the event NAV reaches or exceeds a
specified level.
Under this facility, the investor can specify the Net Asset Value (NAV) on
reaching / exceeding which the amount specified will be redeemed /
switched to the selected transferee scheme.
iv. Option to redeem / switch out in the event NAV appreciates by a
specified percentage.
Under this facility, the investor can choose a specific percentage, by
which, if the scheme NAV appreciates, then the amount specified will
be redeemed / switched to the selected transferee scheme.
v. Option to redeem / switch out in the event NAV appreciates or
depreciates by a specified percentage.
Under this facility, the investor can choose a specific percentage, by
which, if the scheme NAV appreciates or depreciates, then the amount
specified will be redeemed / switched to the selected transferee
scheme.
vi. Option to redeem / switch out in the event NAV depreciates by a
specified percentage
Under this facility, the investor can choose a specific percentage, by
which, if the scheme NAV depreciates, then the amount specified will be
redeemed / switched to the selected transferee scheme.
Notes:
A. For point no. iii above - The NAV level (in INR terms) specified by the Unit
holder must be in multiples of 5 paisa e.g. INR 10.50, INR.10.55, INR.10.60
etc.
B. For points no. iv, v and vi above - The NAV percentage level specified by
the Unit holder must be in multiples of 1%.
Terms & Conditions:
1. On the trigger date (the day of event occurrence), the applicable
amount will be redeemed /switched from the transferor scheme at the
closing NAV of the day i.e. the trigger date.
2. Switches can be made only where so permitted by the respective
Scheme Information Document of the Transferor/ Transferee schemes.
3. Once a trigger is activated and a transaction is processed, the same will
not be reversed and it will be final and binding upon the Unit holder.
4. Trigger once activated would expire and would not be executed again.
5. Trigger facility shall be applicable subject to payment of exit load in the
transferor scheme(s), if any.
6. The specified trigger will fail, if the investor(s) do not maintain sufficient
balance in the scheme at the time of registration of trigger and on the
trigger date.
87 Axis Banking & PSU Debt Fund
7. Trigger will not get executed in case units are pledged or where lien is
marked on units, at the time of receipt of request for trigger.
8. Day closing Nifty Index level would be considered in case of triggers
linked to Nifty.
9. In case of partial or full switch/redemption, any trigger already registered
for a particular transaction will be deactivated.
10. "Minimum Application Amount/ Minimum Additional Investment Amount"
specified in the Scheme Information Document of the transferee
schemes will not be applicable for Switches based on specified triggers
limits being achieved.
11. NAV for switch /redemption: NAV of the trigger day will be considered
for the purpose of Redemption/ switch. In case of non-business day in
debt schemes but business day in case of equity schemes, switch-out
from equity schemes will be processed on the trigger day and switch-in
to Debt/ Liquid schemes will be processed on the next business day.
12. In case, if no plan / option is specified for switch transaction under trigger
option, default plan / option, as specified in respective Scheme
Information Document will be considered.
13. In case of any ambiguity or where the investor fails to specify whether
the redemption / switch to be made is full or to the extent of capital
appreciation or to the extent of Principal amount only, the transaction
will not be processed.
14. All requests for registering or deactivating the trigger facility shall be
subject to an advance notice of 10 (Ten) working days. Investors can
deactivate the trigger facility by sending a written request to the Investor
Service Centers.
APPLICATION VIA ELECTRONIC MODE
Subject to the Investor fulfilling certain terms and conditions stipulated by the
AMC as under, Axis AMC, Axis Mutual Fund or any other agent or
representative of the AMC, Mutual Fund, the Registrar & Transfer Agents may
accept transactions through any electronic mode including fax/web/
electronic transactions as permitted by SEBI or other regulatory authorities :
a) The acceptance of the fax/web/electronic transactions will be solely at
the risk of the transmitter of the fax/web/ electronic transactions and the
Recipient shall not in any way be liable or responsible for any loss,
damage caused to the transmitter directly or indirectly, as a result of the
transmitter sending or purporting to send such transactions.
b) The recipient will also not be liable in the case where the transaction sent
or purported to be sent is not processed on account of the fact that it
was not received by the Recipient.
c) The transmitter’s request to the Recipient to act on any
fax/web/electronic transmission is for the transmitter’s convenience and
the Recipient is not obliged or bound to act on the same.
d) The transmitter acknowledges that fax/web/electronic transactions is not
a secure means of giving instructions/ transactions requests and that the
transmitter is aware of the risks involved including those arising out of
such transmission.
e) The transmitter authorizes the recipient to accept and act on any
fax/web/ electronic transmission which the recipient believes in good
faith to be given by the transmitter and the recipient shall be entitled to
treat any such fax/web/ electronic transaction as if the same was given
to the recipient under the transmitter’s original signature.
f) The transmitter agrees that security procedures adopted by the recipient
may include signature verification, telephone call backs which may be
recorded by tape recording device and the transmitter consents to such
recording and agrees to cooperate with the recipient to enable
88 Axis Banking & PSU Debt Fund
confirmation of such fax/web/ electronic transaction requests.
g) The transmitter accepts that the fax/web/ electronic transactions, where
applicable shall not be considered until time stamped as a valid
transaction request in the Scheme in line with the Regulations.
In consideration of the recipient from time to time accepting and at its sole
discretion acting on any fax/ web/electronic transaction request received /
purporting to be received from the transmitter, the transmitter agrees to
indemnify and keep indemnified the AMC, Directors, employees, agents,
representatives of the AMC, Axis Mutual Fund and Trustee from and against
all actions, claims, demands, liabilities, obligations, losses, damages, costs
and expenses of whatever nature (whether actual or contingent) directly or
indirectly suffered or incurred, sustained by or threatened against the
indemnified parties whatsoever arising from or in connection with or any way
relating to the indemnified parties in good faith accepting and acting on
fax/web/ electronic transaction requests including relying upon such fax/
electronic transaction requests purporting to come from the Transmitter
even though it may not come from the Transmitter.
The AMC reserves the right to discontinue the facility (ies) at any point of
time.
Distributors offer goal based financial planning (facility) to their clients. In
order to encourage Investors to plan for their investments based on life goals
(e.g. child’s education, retirement, wealth creation, etc), the Asset
Management Company would assist in providing such facilities.
Since such facilities are aimed at helping Investors achieving their financial
goals, certain features offered by Axis Mutual Fund may not be
offered/available under such goal based investment folios. Under a folio, no
additional purchase, switch and part redemption would be allowed.
Requests for changes in goals/goal details will not be accepted. Under
normal circumstances, there is no restriction on the right of the investor to
transact directly with the mutual fund.
Multiple goals based investments can be applied for under one application
form and a single cheque in the name of ‘Axis Mutual Fund First Investor
name’ or ‘Axis Mutual Fund Permanent Account Number’ would have to be
provided by the Investor. Transaction charge would be charged at
application form level.
In case there is a broker code change/the investor is desirous of being a
direct investor with the mutual fund, the investment will cease to be a part of
the facility. Investors may note that investments under such facilities would
be based on advice from the distributor /Financial advisor and the Asset
Management Company acts purely in capacity as a facilitator for such
transactions. The distributor(s) may choose to modify/change or discontinue
the above stated facility. In such a case the investors may continue their
investment with the AMC/any other distributor.
For further details/clarifications investors may contact the distributor(s) or the
ISCs of the AMC.
In case such investors wish to invest under the Direct Plan through these
facilities, they would have to cancel their existing enrolments and register
afresh for such facilities.
Accounts
Statements
On acceptance of the application for subscription, an allotment
confirmation specifying the number of units allotted by way of e-mail
89 Axis Banking & PSU Debt Fund
and/or SMS within 5 business days from the date of receipt of transaction
request/allotment will be sent to the Unit Holders registered e-mail address
and/or mobile number.
In case of Unit Holders holding units in the dematerialized mode, the Fund
will not send the account statement to the Unit Holders. The statement
provided by the Depository Participant will be equivalent to the account
statement.
For those Unit holders who have provided an e-mail address, the AMC will
send the account statement by e-mail.
Unit holders will be required to download and print the documents after
receiving e-mail from the Mutual Fund. Should the Unit holder experience
any difficulty in accessing the electronically delivered documents, the
Unit holder shall promptly advise the Mutual Fund to enable the Mutual
Fund to make the delivery through alternate means. It is deemed that the
Unit holder is aware of all security risks including possible third party
interception of the documents and contents of the documents becoming
known to third parties.
The Unit holder may request for a physical account statement by
writing/calling the AMC/ISC/Registrar. In case of specific request received
from the Unit Holders, the AMC/Fund will provide the Account Statement
to the Investors within 5 business days from the receipt of such request.
The AMC shall issue Unit certificates within 5 business days from the date
of receipt of request where the applicant so desires.
CONSOLIDATED ACCOUNT STATEMENT (CAS)
CAS is an account statement detailing all the transactions and holding at
the end of the month including transaction charges paid to the distributor,
across all schemes of all mutual funds. CAS issued to investors shall also
provide the total purchase value/cost of investment in each scheme.
Further, CAS issued for the half-year (September/ March) shall also provide
a. The amount of actual commission paid by AMC/Mutual Fund to
distributors (in absolute terms) during the half-year period against the
concerned investor’s total investments in each scheme.
b. The scheme’s average Total Expense Ratio (in percentage terms) along
with the break up between Investment and Advisory fees, Commission
paid to the distributor and Other expenses for the period for each
scheme’s applicable plan (regular or direct or both) where the
concerned investor has actually invested in.
The word transaction will include purchase, redemption, switch, dividend
payout, dividend reinvestment, systematic investment plan, systematic
withdrawal plan and systematic transfer plan.
a) For Unitholders not holding Demat Account:
CAS for each calendar month shall be issued, on or before tenth day of
succeeding month by the AMC.
The AMC shall ensure that a CAS for every half yearly (September/ March) is
issued, on or before tenth day of succeeding month, detailing holding at the
end of the six month, across all schemes of all mutual funds, to all such
investors in whose folios no transaction has taken place during that period.
The AMC shall identify common investors across fund houses by their
Permanent Account Number (PAN) for the purposes of sending CAS. In the
event the account has more than one registered holder, the first named Unit
Holder shall receive the Account Statement.
90 Axis Banking & PSU Debt Fund
The AMC will send statement of accounts by e-mail where the Investor has
provided the e-mail id. Additionally, the AMC may at its discretion send
Account Statements individually to the investors.
b) For Unitholders holding Demat Account:
SEBI vide its circular no. CIR/MRD/DP/31/2014 dated November 12, 2014, in
order to enable a single consolidated view of all the investments of an
investor in Mutual Fund and securities held in demat form with Depositories,
has required Depositories to generate and dispatch a single CAS for
investors having mutual fund investments and holding demat accounts.
In view of the aforesaid requirement, for investors who hold demat account,
for transactions in the schemes of Axis Mutual Fund on or after February 1,
2015, a CAS, based on PAN of the holders, will be sent by Depositories to
investors holding demat account, for each calendar month within 10th day
of the succeeding month to the investors in whose folios transactions have
taken place during that month.
CAS will be sent by Depositories every half yearly (September/March), on or
before 10th day of succeeding month, detailing holding at the end of the six
month, to all such investors in whose folios and demat accounts there have
been no transactions during that period.
CAS sent by Depositories is a statement containing details relating to all
financial transactions made by an investor across all mutual funds viz.
purchase, redemption, switch, dividend payout, dividend reinvestment,
systematic investment plan, systematic withdrawal plan, systematic transfer
plan (including transaction charges paid to the distributor) and transaction
in dematerialized securities across demat accounts of the investors and
holding at the end of the month.
In case of demat accounts with nil balance and no transactions in securities
and in mutual fund folios, the depository shall send account statement in
terms of regulations applicable to the depositories. Investors whose folio(s)/
demat account(s) are not updated with PAN shall not receive CAS.
Consolidation of account statement is done on the basis of PAN. Investors
are therefore requested to ensure that their folio(s)/ demat account(s) are
updated with PAN. In case of multiple holding, it shall be PAN of the first
holder and pattern of holding.
For Unit Holders who have provided an e-mail address to the Mutual Fund or
in KYC records, the CAS is sent by e-mail. However, where an investor does
not wish to receive CAS through email, option is given to the investor to
receive the CAS in physical form at the address registered in the Depository
system.
Investors who do not wish to receive CAS sent by depositories have an
option to indicate their negative consent. Such investors may contact the
depositories to opt out. Investors who do not hold demat account continue
to receive CAS sent by RTA/AMC, based on the PAN, covering transactions
across all mutual funds as per the current practice.
In case an investor has multiple accounts across two depositories; the
depository with whom the account has been opened earlier will be the
default depository.
91 Axis Banking & PSU Debt Fund
The dispatches of CAS by the depositories constitute compliance by the
AMC/ the Fund with the requirement under Regulation 36(4) of SEBI (Mutual
Funds) Regulations. However, the AMC reserves the right to furnish the
account statement in addition to the CAS, if deemed fit in the interest of
investor(s).
Investors whose folio(s)/demat account(s) are not updated with PAN shall
not receive CAS. Investors are therefore requested to ensure that their
folio(s)/demat account(s) are updated with PAN.
For folios not included in the CAS (due to non-availability of PAN), the AMC
shall issue monthly account statement to such Unit holder(s), for any
financial transaction undertaken during the month on or before 10th of
succeeding month by mail or email.
For folios not eligible to receive CAS (due to non-availability of PAN), the
AMC shall issue an account statement detailing holding across all schemes
at the end of every six months (i.e. September/March), on or before 10th day
of succeeding month, to all such Unit holders in whose folios no transaction
has taken place during that period shall be sent by mail/e-mail.
OPTION TO HOLD UNITS IN DEMATERIALIZED (DEMAT) FORM
Investors shall have an option to receive allotment of Mutual Fund units in
their demat account while subscribing to the Units of the Scheme in terms of
the guidelines/ procedural requirements as laid by the Depositories
(NSDL/CDSL) from time to time.
Investors desirous of having the Units of the Scheme in dematerialized form
should contact the ISCs of the AMC/Registrar.
Where units are held by investor in dematerialized form, the demat
statement issued by the Depository Participant would be deemed adequate
compliance with the requirements in respect of dispatch of statements of
account.
In case investors desire to convert their existing physical units (represented
by statement of account) into dematerialized form or vice versa, the request
for conversion of units held in physical form into Demat (electronic) form or
vice versa should be submitted along with a Demat/Remat Request Form to
their Depository Participants. In case the units are desired to be held by
investor in dematerialized form, the KYC performed by Depository
Participant shall be considered compliance of the applicable SEBI norms.
The demat option is provided to all schemes and options of Axis Mutual Fund
except for all daily and weekly dividend options under all debt and liquid
schemes. Further, demat option shall also be available for SIP transactions.
Units will be allotted based on the applicable NAV as per Scheme
Information Document and will be credited to investors Demat Account on
weekly basis on realization of funds.
Units held in Demat form are freely transferable in accordance with the
provisions of SEBI (Depositories and Participants) Regulations, as may be
amended from time to time. Transfer can be made only in favour of
transferees who are capable of holding units and having a Demat Account.
The delivery instructions for transfer of units will have to be lodged with the
Depository Participant in requisite form as may be required from time to time
92 Axis Banking & PSU Debt Fund
and transfer will be affected in accordance with such rules / regulations as
may be in force governing transfer of securities in dematerialized mode.
For details, Investors may contact any of the Investor Service Centres of the
AMC.
Dividend The Dividend warrants/cheque/demand draft shall be dispatched to the
Unit holders within 30 days of the date of declaration of the Dividend.
The Dividend proceeds will be paid by way of EFT / NEFT / RTGS / Direct
credits/ any other electronic manner if sufficient banking details are
available with the Mutual Fund for the Investor.
In case of specific request for Dividend by warrants/cheques/demand drafts
or unavailability of sufficient details with the Mutual Fund, the Dividend will
be paid by warrant/cheques/demand drafts and payments will be made in
favour of the Unit holder (registered holder of the Units or, if there are more
than one registered holder, only to the first registered holder) with bank
account number furnished to the Mutual Fund (please note that it is
mandatory for the Unit holders to provide the Bank account details as per
the directives of SEBI).
Redemption How to Redeem
A Transaction Slip can be used by the Unit Holder to request for Redemption.
The requisite details should be entered in the Transaction Slip and submitted
at an ISC/Official Point of Acceptance. Transaction Slips can be obtained
from any of the ISCs/Official Points of Acceptance. Investor can also place
redemption through Telephone using Easy Call/Easy SMS facility or may
redeem Online through the AMC’s website subject to the terms and
conditions as maybe stipulated from time to time.
Procedure for payment of redemption.
1. Resident Investors
Redemption proceeds will be paid to the investor through Real Time Gross
Settlement (RTGS), NEFT, Direct Credit, Cheque or Demand Draft.
a) If investor has provided IFSC code in the application form, by default
redemption proceeds shall be credited to Investor’s account through
RTGS/NEFT.
b) If Investor has neither provided IFSC code nor the NEFT code but have a
bank account with Banks with whom the Fund has an arrangement for
Direct Credit from time to time, the proceeds will be paid through direct
credit.
c) Incase if investor bank account does not fall in the above a to b
categories, redemption proceeds will be paid by cheques/demand
drafts, marked "Account Payee only" and drawn in the name of the sole
holder / first-named holder (as determined by the records of the
Registrar).
The bank name and bank account number, as specified in the Registrar's
records, will be mentioned in the cheque/demand draft. The cheque will
be payable at par at all bank branch of specific cities. If the Unit Holder
resides in any other city, he will be paid by a demand draft payable at
the city of his residence and the demand draft charges shall be borne
by the AMC (please refer SAI for details).
The redemption proceeds will be sent by courier or (if the addressee city
is not serviced by the courier) by registered post/UCP. The dispatch for
the purpose of delivery through the courier / postal department, as the
93 Axis Banking & PSU Debt Fund
case may be, shall be treated as delivery to the investor. The AMC /
Registrar are not responsible for any delayed delivery or non-delivery or
any consequences thereof, if the dispatch has been made correctly as
stated in this paragraph.
The AMC reserves the right to change the sequence of payment from
(a) to (c) without any prior notice
For Unit holders who have given specific request for Cheque/Demand Draft
Redemption proceeds will be paid by cheque/demand drafts and
payments will be made in favour of the Unit holder with bank account
number furnished to the Mutual Fund
(Please note that it is mandatory for the Unit holders to provide the Bank
account details as per the directives of SEBI). Redemption cheques will be
sent to the Unit holder’s address.
The Trustee, at its discretion at a later date, may choose to alter or add other
modes of payment.
2. Non-Resident Investors PIO/OCI
For NRIs, Redemption proceeds will be remitted depending upon the source
of investment as follows:
(i) Repatriation basis
When Units have been purchased through remittance in foreign exchange
from abroad or by cheque / draft issued from proceeds of the Unit Holder's
FCNR deposit or from funds held in the Unit Holder's Non Resident (External)
account kept in India, the proceeds can also be sent to his Indian address
for crediting to his NRE / FCNR / non-resident (Ordinary) account, if desired
by the Unit Holder.
(ii) Non-Repatriation basis
When Units have been purchased from funds held in the Unit Holder's non-
resident (Ordinary) account, the proceeds will be sent to the Unit Holder's
Indian address for crediting to the Unit Holder's non-resident (Ordinary)
account.
(iii) FPIs
For FPIs, the designated branch of the authorized dealer may allow
remittance of net sale / maturity proceeds (after payment of taxes) or credit
the amount to the Foreign Currency account or Non-resident Rupee
account of the FPIs maintained in accordance with the approval granted to
it by the RBI.
The Fund will not be liable for any delays or for any loss on account of any
exchange fluctuations, while converting the rupee amount in foreign
exchange in the case of transactions with NRIs/FPIs. The Fund may make
other arrangements for effecting payment of redemption proceeds in
future.
Effect of Redemptions
The number of Units held by the Unit Holder in his / her / its folio will stand
reduced by the number of Units Redeemed. Units once redeemed will be
extinguished and will not be re-issued.
94 Axis Banking & PSU Debt Fund
The normal processing time may not be applicable in situations where
requisite details are not provided by investors/Unit holders. The AMC will not
be responsible for any loss arising out of fraudulent encashment of cheques
and/or any delay/loss in transit.
AMC reserves the right to provide the facility of redeeming Units of the
Scheme through an alternative mechanism including but not limited to
online transactions on the Internet, as may be decided by the AMC from
time to time. The alternative mechanism may also include electronic means
of communication such as redeeming Units online through the AMC Website
or any other website etc. The alternative mechanisms would be applicable
to only those investors who opt for the same in writing and/or subject to
investor fulfilling such conditions as AMC may specify from time to time.
Signature mismatches
If the AMC / Registrar finds a signature mismatch, while processing the
redemption/ switch out request, then the AMC/ Registrar reserves the right to
process the redemption only on the basis of supporting documents
confirming the identity of the investors. List of such documents would be
notified by AMC from time to time.
Important Note: All applicants for Purchase of Units /Redemption of Units
must provide a bank name, bank account number, branch address, and
account type in the Application Form.
Unclaimed Redemptions and Dividends
As per circular no. MFD/CIR/9/120/2000, dated November 24, 2000 issued by
SEBI, the unclaimed Redemption and Dividend amounts shall be deployed
by the Fund in money market instruments and such other
instruments/securities as maybe permitted from time to time. The investment
management fee charged by the AMC for managing such unclaimed
amounts shall not exceed 50 basis points. The circular also specifies that
investors who claim these amounts during a period of three years from the
due date shall be paid at the prevailing NAV. Thus, after a period of three
years, this amount can be transferred to a pool account and the investors
can claim the said amounts at the NAV prevailing at the end of the third
year. In terms of the circular, the onus is on the AMC to make a continuous
effort to remind investors through letters to take their unclaimed amounts.
The details of such unclaimed amounts shall be disclosed in the annual
report sent to the Unit Holders.
Further, according to circular no. SEBI/HO/IMD/DF2/CIR/P/2016/37 dated
February 25, 2016 the unclaimed Redemption and dividend amounts may
be deployed in separate plan of Liquid scheme/Money market mutual fund
scheme floated by Mutual Funds specifically for deployment of the
unclaimed Redemption and dividend amounts.
Delay in payment
of Redemption /
Repurchase
proceeds
The AMC shall be liable to pay interest to the Unit holders at 15% or such
other rate as may be prescribed by SEBI from time to time, in case the
Redemption / Repurchase proceeds are not made within 10 Business Days
of the date of Redemption / Repurchase. However, the AMC will not be
liable to pay any interest or compensation or any amount otherwise, in case
the AMC / Trustee is required to obtain from the Investor / Unit holders
verification of identity or such other details relating to Subscription for Units
under any applicable law or as may be requested by a Regulatory Agency
or any government authority, which may result in delay in processing the
application.
Facility to transact AMC has entered into an Agreement with MF Utilities India Private Ltd.
95 Axis Banking & PSU Debt Fund
in units of the
Schemes through
MF Utility portal &
MFUI Points of
Services pursuant to
appointment of MF
Utilities India Pvt.
Ltd.
(“MFUI”), a “Category II – Registrar to an Issue” under SEBI (Registrars to an
Issue and Share Transfer Agents) Regulations, 1993, for usage of MF Utility
(“MFU”) - a shared services initiative of various Asset Management
Companies, which acts as a transaction aggregation portal for transacting
in multiple Schemes of various Mutual Funds with a single form and a single
payment instrument.
Accordingly, investors are requested to note that in addition to the existing
Official Points of Acceptance for accepting transactions in the units of the
schemes of the Axis Mutual Fund as disclosed in the SID,
www.mfuonline.com i.e. online transaction portal of MFU and the authorized
Points of Service (“POS”) designated by MUFI shall also be the OPA with
effect from the dates as may be specified by MFUI on its website/AMC by
issuance of necessary communication.
All financial and non-financial transactions pertaining to Schemes of Axis
Mutual Fund can be done through MFU either electronically on
www.mfuonline.com or physically through the POS of MFUI with effect from
the respective dates as published on MFUI website against the respective
POS locations. The list of POS of MFUI is published on the website of MFUI at
www.mfuindia.com. This will be updated from time to time.
The uniform cut-off time as prescribed under SEBI (Mutual Funds) Regulations,
1996, circulars issued by SEBI and as mentioned in the SID / KIM of the
Scheme shall be applicable for applications received on the portal of MFUI
i.e. www.mfuonline.com. However, investors should note that transactions on
the MFUI portal shall be subject to the terms & conditions (including those
relating to eligibility of investors) as stipulated by MFUI / Axis Mutual Fund /
the AMC from time to time and in accordance to the laws applicable.
MFUI will allot a Common Account Number (“CAN”), a single reference
number for all investments in the Mutual Fund industry, for transacting in
multiple Schemes of various Mutual Funds through MFU and to map existing
folios, if any. Investors can create a CAN by submitting the CAN Registration
Form (CRF) and necessary documents at the MFUI POS. The AMC and / or its
Registrar and Transfer Agent (RTA) shall provide necessary details to MFUI as
may be needed for providing the required services to investors / distributors
through MFU.
C. PERIODIC DISCLOSURES
Net Asset Value
This is the value per
unit of the scheme
on a particular
day. You can
ascertain the value
of your investments
by multiplying the
NAV with your unit
balance.
NAVs will be calculated and disclosed on all the Business Days. The AMC shall
update the NAVs on the website of the AMC (www.axismf.com) and of the
Association of Mutual Funds in India - AMFI (www.amfiindia.com) before
11.00 p.m. on every Business Day. If the NAVs are not available before the
commencement of Business Hours on the following day due to any reason,
the Mutual Fund shall issue a press release giving reasons and explaining
when the Mutual Fund would be able to publish the NAV.
Information regarding NAV can be obtained by the Unit holders / Investors
by calling or visiting the nearest ISC.
Monthly and Half
yearly Disclosures:
Portfolio / Financial
Results
This is a list of
The AMC will disclose the portfolio of the Scheme (alongwith ISIN) as on the
last day of the month / half year on the website of the Mutual Fund and AMFI
within 10 days from the close of each month/ half year (i.e. 31st March and
30th September) respectively in a user-friendly and downloadable
spreadsheet format. Further, AMC shall publish an advertisement in an all
India edition of one national English daily newspaper and one Hindi
96 Axis Banking & PSU Debt Fund
securities where the
corpus of the
scheme is currently
invested. The
market value of
these investments is
also stated in
portfolio
disclosures.
newspaper, every half year, disclosing the hosting of the half-yearly
statement of its schemes’ portfolio on the website of the Mutual Fund and
AMFI and the modes through which unitholder(s) can submit a request for a
physical or electronic copy of the statement of scheme portfolio.
The AMC will also provide a dashboard, in a comparable, downloadable
(spreadsheet) and machine readable format, providing performance and
key disclosures like Scheme’s AUM, investment objective, expense ratios,
portfolio details, scheme’s past performance etc. on website.
Half Yearly Results
The Mutual Fund shall within one month from the close of each half year, that
is on 31st March and on 30th September, host a soft copy of its unaudited
financial results on the website of the AMC and AMFI.
The mutual fund shall publish an advertisement disclosing the hosting of such
financial results on their website, in atleast one English daily newspaper
having nationwide circulation and in a newspaper having wide circulation
published in the language of the region where the Head Office of the
Mutual Fund is situated.
The unaudited financial results will also be displayed on the website of the
AMC and AMFI.
Annual Report The Scheme wise annual report or an abridged summary thereof shall be
mailed (emailed, where e-mail id is provided unless otherwise required) to all
Unit holders not later than four months (or such other period as may be
specified by SEBI from time to time) from the date of closure of the relevant
accounting year (i.e. 31st March each year) and full annual report shall be
available for inspection at the Head Office of the Mutual Fund and a copy
shall be made available to the Unit holders on request on payment of
nominal fees, if any. Scheme wise annual report shall also be displayed on
the website of the Mutual Fund (www.axismf.com) and Association of Mutual
Funds in India (www.amfiindia.com).
Unitholders whose email addresses are not registered with the Mutual Fund
may ‘opt-in’ to receive a physical copy of the annual report or an abridged
summary thereof.
Further, AMC shall provide a physical copy of the abridged summary of the
Annual Report, without charging any cost, on a specific request received
from a unitholder.
AMC shall also publish an advertisement every year, in an all India edition of
one national English daily newspaper and in one Hindi newspaper, disclosing
the hosting of the scheme wise annual report on the website of the Mutual
Fund and AMFI and the modes through which a unitholder can submit a
request for a physical or electronic copy of the annual report or abridged
summary thereof.
Associate
Transactions
Please refer to Statement of Additional Information (SAI).
Taxation
Rates applicable
Resident
Investors
Non
Resident
Investors
Mutual Fund
97 Axis Banking & PSU Debt Fund
for the FY 19-20.
The information is
provided for
general information
only. However, in
view of the
individual nature of
the implications,
each investor is
advised to consult
his or her own tax
advisors/authorised
dealers with
respect to the
specific amount of
tax and other
implications arising
out of his or her
participation in the
schemes.
Tax on
Dividend
Nil Nil Dividend Distribution Tax (DDT):
Individual / HUF – 29.12%
(25%+12% Surcharge+4% Cess)
Domestic Company – 34.944%
(30%+12% Surcharge+4% Cess)
NRI – 29.12%
(25%+12% Surcharge+4% Cess
Capital Gains:
Capital Gains*:
Long Term
(Held for a
period of more
than 36
Months)
-Listed other
than equity
oriented
20% with
indexation
20% with
indexation
Nil
-Unlisted other
than equity
oriented
20% with
indexation
10%
(Indexation
benefit not
available)
Nil
Short Term 30%^ 30%^ Short Term
a. Axis Mutual Fund is a Mutual Fund registered with the Securities &
Exchange Board of India and hence the entire income of the Mutual
Fund will be exempt from income tax in accordance with the provisions
of Section 10(23D) of the Income-tax Act, 1961 (the Act).
b. On Income Distribution, if any, made by the Mutual Fund, additional
income-tax is payable under section 115R of the Act, in the case of its
schemes (other than equity-oriented funds and a money market mutual
fund or a liquid fund). The additional income-tax on distribution of
income to an individual / Hindu Undivided family (HUF) shall be payable
by the Mutual fund at the rate of 29.12% and at the rate of 34.944% on
distribution of income to any other investor.
c. For dividends declared after 1 October 2014, the mode of calculation of
distributed income u/s 115R has been modified which shall result in
higher effective rate of DDT.
d. Surcharge at the rate to be levied in case of individual /HUF unit holders
is as follow:
Total Income
Rate of
Surcharge
Exceeding 50 Lac but not
exceeding 1 Crores 10%
Exceeding 1 Crores but not
exceeding 2 Crores 15%
Exceeding 2 Crores but not
exceeding 5 Crores 25%
Exceeding 5 Crores 37%
^ Assuming investor falls in to highest tax bracket
For further details on taxation please refer to the clause on Taxation in the
SAI.
98 Axis Banking & PSU Debt Fund
Investor services Investors can lodge any service request or complaints or enquire about
NAVs, Unit Holdings, Dividends, etc by calling the Investor line of the AMC at
"1800 221322" (toll-free number) and additional contact number
8108622211(Chargeable) from 8.00 am to 8.00 pm (Monday to Friday) and
9.00 am to 6.00 pm (on Saturday and Sunday) or 4325 5100 (at local call rate
for enquiring at AMC ISC’s) or email – [email protected]. The
service representatives may require personal information of the Investor for
verification of his / her identity in order to protect confidentiality of
information. The AMC will at all times endeavour to handle transactions
efficiently and to resolve any investor grievances promptly.
Any complaints should be addressed to Mr. Milind Vengurlekar who has
been appointed as the Investor Relations Officer and can be contacted at:
Address :
Axis House, 1st Floor, C-2, Wadia International Centre, Pandurang Budhkar
Marg, Worli, Mumbai – 400 025
Phone no.: 022 43254123
For any grievances with respect to transactions through BSE StAR and / or
NSE MFSS, the investors / Unit Holders should approach either the stock broker
or the investor grievance cell of the respective stock exchange.
D. COMPUTATION OF NAV
The Net Asset Value (NAV) per Unit under the Scheme will be computed by dividing the net
assets of the Scheme by the number of Units outstanding on the valuation day. The Mutual
Fund will value its investments according to the valuation norms, as specified in Schedule VIII of
the SEBI (MF) Regulations, or such norms as may be specified by SEBI from time to time.
The Net Assets Value (NAV) of the Units under the Scheme shall be calculated as shown below:
NAV (Rs.) =
Market or FairValue
of Scheme’s
Investments
+ Current Assets including
AccruedIncome
- Current Liabilities
and Provisions
No. of Units outstanding under Scheme on the Valuation Day
The NAV shall be calculated up to four decimal places. However the AMC reserves the right to
declare the NAVs up to additional decimal places as it deems appropriate. Separate NAV will
be calculated and disclosed for each Option. The NAVs of the Growth Option and the
Dividend Option will be different after the declaration of the first Dividend.
NAVs will be calculated and disclosed on all the Business Days.
99 Axis Banking & PSU Debt Fund
IV. FEES AND EXPENSES
This section outlines the expenses that will be charged to the Scheme.
A. NEW FUND OFFER (NFO) EXPENSES
These expenses are incurred for the purpose of various activities related to the NFO like sales
and distribution fees paid marketing and advertising, Registrar & Transfer Agents expenses,
printing and stationary, bank charges etc.
In accordance with the provisions of SEBI circular no. SEBI/IMD/CIR No. 1/64057/06 dated April
04, 2006 and SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, the NFO expenses has been
borne by the AMC/Sponsor.
B. ANNUAL SCHEME RECURRING EXPENSES
These are the fees and expenses for operating the Scheme. These expenses include
Investment Management and Advisory Fee charged by the AMC, Registrar and Transfer
Agents’ fee, marketing and selling costs etc. as given in the table below.
The AMC has estimated that upto 2.00% of the daily net assets of the Scheme will be charged
to the Scheme as expenses. For the actual current expenses being charged, the investor
should refer to the website of the AMC.
Expense Head % of daily
Net Assets
Investment Management and Advisory fees Upto 2.00%
Trustee fees
Audit fees
Custodian fees
RTA fees
Marketing & selling expense incl. agent commission
Cost related to investor communications
Cost of fund transfer from location to location
Cost of providing account statements and dividend redemption cheques and
warrants
Costs of statutory advertisements
Cost towards investor education & awareness (at least 2 bps)
Brokerage & transaction cost over and above 12 bps and 5 bps for cash and
derivative market trades resp.
Goods & Service tax (GST) on expenses other than investment and advisory fees
GST on brokerage and transaction cost
Maximum total expense ratio (TER) permissible under Regulation 52(6)(c) Upto 2.00%
Additional expenses under Regulation 52(6A)(c)^ Upto 0.05%
Additional expenses for gross new inflows from specified cities under Regulation
52(6A)(b)
Upto 0.30%
^The AMC shall not charge additional expenses under Regulation 52(6A)(c) in case exit load is
not levied/ not applicable.
All fees and expenses charged in a Direct Plan (in percentage terms) under various heads
including the investment and advisory fee shall not exceed the fees and expenses charged
under such heads in other than Direct Plan.
Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc.
and no commission for distribution of Units will be paid/ charged under Direct Plan.
Fungibility of expenses: The expenses towards Investment Management and Advisory Fees
under Regulation 52(2) and the various sub-heads of recurring expenses mentioned under
100 Axis Banking & PSU Debt Fund
Regulation 52(4) of SEBI (MF) Regulations are fungible in nature. Thus, there shall be no internal
sub-limits within the expense ratio for expense heads mentioned under Regulation 52(2) and (4)
respectively. Further, the additional expenses under Regulation 52(6A)(c) may be incurred
either towards investment & advisory fees and/or towards other expense heads as stated
above.
These estimates have been made in good faith as per the information available to the
Investment Manager and are subject to change inter-se or in total subject to prevailing
Regulations.
The recurring expenses of the Scheme (including the Investment Management and Advisory
Fees) shall be as per the limits prescribed under the SEBI (MF) Regulations. These are as follows:
Assets under management Slab (In Rs. crore) % of daily net assets
On the first Rs. 500 crores of the daily net assets 2.00%
On the next Rs. 250 crores of the daily net assets 1.75%
On the next Rs. 1250 crores of the daily net assets 1.50%
On the next Rs. 3000 crores of the daily net assets 1.35%
On the next Rs. 5000 crores of the daily net assets 1.25%
On the next Rs. 40,000 crores of the daily net assets Total expense ratio reduction of 0.05% for
every increase of Rs. 5,000 crores of daily
net assets or part thereof.
On the balance of the assets 0.80%
The total expenses of the Scheme including the investment management and advisory fee
shall not exceed the limit stated in Regulation 52(6) of the SEBI (MF) Regulations and
amendments thereto.
Expenses charged to the Scheme:
A. In addition to the limits as specified in Regulation 52(6) of SEBI (Mutual Funds) Regulations
1996 or the Total Recurring Expenses (Total Expense Limit) as specified above, the following
costs or expenses may be charged to the Scheme namely-
Additional expenses for gross new inflows from specified cities
(a) expenses not exceeding of 0.30 per cent of daily net assets, if the new inflows from such
cities as specified by SEBI/AMFI from time to time are at least -
i. 30 per cent of gross new inflows in the Scheme, or
ii. 15 per cent of the average assets under management (year to date) of the Scheme,
whichever is higher:
Provided that if inflows from such cities is less than the higher of sub-clause (i) or sub- clause
(ii), such expenses on daily net assets of the Scheme shall be charged on proportionate
basis.
Provided further that, expenses charged under this clause shall be utilised for distribution
expenses incurred for bringing inflows from such cities.
Provided further that amount incurred as expense on account of inflows from such cities
shall be credited back to the Scheme in case the said inflows are redeemed within a
period of one year from the date of investment.
Provided further that, additional TER can be charged based on inflows only from retail
investors in terms of SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2018/137 dated October 22,
2018 and SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2019/42 dated March 25, 2019. For this
purpose inflows of amount upto Rs 2,00,000/- per transaction, by individual investors shall be
considered as inflows from “retail investor”.
101 Axis Banking & PSU Debt Fund
Additional expenses under Regulation 52(6A)(c)
(b) additional expenses, incurred towards different heads mentioned under Regulations 52(2)
and 52(4), not exceeding 0.05 per cent of daily net assets of the Scheme;
(c) GST payable on investment and advisory service fees (‘AMC fees’) charged by Axis Asset
Management Company Ltd.
Further, brokerage and transaction costs which are incurred for the purpose of execution of
trade and is included in the cost of investment shall not exceed 0.12 per cent in case of
cash market transactions and 0.05 per cent in case of derivatives transactions.
B. Within the Total Expense Limit chargeable to the Scheme, following will be charged to the
Scheme:
a) GST on other than investment and advisory fees, if any, (including on brokerage and
transaction costs on execution of trades) shall be borne by the Scheme;
b) Investor education and awareness initiative fees of at least 2 basis points on daily net assets
of Scheme.
C. AMC fees charged by Axis AMC to the Scheme will be within the Total Expense Limit as
prescribed by SEBI Regulations, as amended from time to time.
Expenses over and above the prescribed limit shall be charged / borne in accordance with
the Regulations prevailing from time to time.
The mutual fund would update the current expense ratios on its website (www.axismf.com)
atleast three working days prior to the effective date of the change. Investors can refer ‘Total
Expense Ratio of Mutual Fund Schemes’ section on https://www.axismf.com/total-expense-
ratio for Total Expense Ratio (TER) details.
Illustration of impact of expense ratio on scheme’s returns
For any scheme, NAV is computed on a daily basis factoring in all the assets as well as liabilities
of the Scheme (including expenses charged). Expenses charged to the Scheme bring down its
NAV and hence the investor's net returns on a corresponding basis.
Illustration:
Particulars Amount
(in Rs.)
No of
units
NAV per unit
(in Rs.)
Invested on March 31, 2016 (A) 10,000 1,000 10.00
Value of above investment as on March 31, 2017
(gross of all expenses) (B) 11,500 1,000 11.50
Total Expenses charged during the year @2% p.a.
(assumed) (C) 200 0.20
Value of above investment as on March 31, 2017 (net
of all expenses) (D) = (B-C) 11,300 1,000 11.30
Returns (%) (gross of all applicable expenses) (E) =
((B/A)-1) 15.0%
Returns (%) (net of all applicable expenses) (F) =
((D/A)-1) 13.0%
Please Note:
The purpose of the above illustration is purely to explain the impact of expense ratio
charged to the Scheme and should not be construed as providing any kind of investment
advice or guarantee of returns on investments.
It is assumed that the expenses charged are evenly distributed throughout the year. The
expenses of the Direct Plan under the Scheme may vary with that of the Regular Plan
under the Scheme.
102 Axis Banking & PSU Debt Fund
Calculations are based on assumed NAVs, and actual returns on your investment may be
more, or less.
Any tax impact has not been considered in the above example, in view of the individual
nature of the tax implications. Each investor is advised to consult his or her own financial
advisor.
D. LOAD STRUCTURE
Load is an amount which is paid by the investor to redeem the Units from the Scheme. This
amount is used by the AMC to pay commission to the distributors and to take care of other
marketing and selling expenses. Load amounts are variable and are subject to change from
time to time. For the current applicable structure, investors may refer to the website of the AMC
(www.axismf.com) or may call at 1800 221322 (toll-free number) and additional contact
number 8108622211(Chargeable) from 8.00 am to 8.00 pm (Monday to Friday) and 9.00 am to
6.00 pm (on Saturday and Sunday) or can contact his distributor.
SEBI vide its circular no. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009 has decided that
there shall be no entry Load for all Mutual Fund Schemes.
Type of Load Load chargeable (as %age of NAV)
Entry Load Not Applicable
Exit Load Nil
Units issued on reinvestment of Dividends shall not be subject to Load. No load shall be levied
on switches between options and sub-options of the Scheme.
The above mentioned load structure shall be equally applicable to the special products such
as SIP, STP, SWP, switches, etc. offered by the AMC.
No exit load will be charged for switch between Regular Plan and Direct Plan where
transaction is not routed through Distributor in Regular Plan. If the transaction in Regular Plan is
routed through Distributor, then applicable exit load will be charged for switch from Regular
Plan to Direct Plan.
Exit load charged to the investors will be credited back to the Scheme net of Goods & Service
Tax.
The Investor is requested to check the prevailing Load structure of the Scheme before
investing. For any change in Load structure AMC will issue an addendum and display it on the
website/ Investor Service Centres.
Under the Scheme, the AMC/ Trustee reserves the right to change / modify the Load structure if
it so deems fit in the interest of smooth and efficient functioning of the Mutual Fund. The
AMC/ Trustee reserves the right to introduce / modify the Load depending upon the
circumstances prevailing at that time subject to maximum limits as prescribed under the
Regulations.
The Redemption Price however, will not be lower than 93% of the NAV. Any imposition or
enhancement of Load in future shall be applicable on prospective investments only. The
difference between the Redemption price and Sale price at any point in time shall not exceed
the permitted limit as prescribed by SEBI from time to time which is presently 7% calculated on
the Sale Price.
At the time of changing the Load Structure:
1. An Addendum detailing the changes will be attached to Scheme Information Document
and Key Information Memorandum. The addendum may be circulated to all the
distributors / brokers so that the same can be attached to all Scheme Information
Document and Key Information Memorandum already in stock.
103 Axis Banking & PSU Debt Fund
2. The addendum will be displayed on the website of the AMC and arrangements will be
made to display the addendum in the form of a notice in all the Investor Service Centres
and distributors / brokers office.
3. The introduction of the Exit Load/ CDSC alongwith the details may be stamped in the
acknowledgement slip issued to the Investors on submission of the application form and
may also be disclosed in the statement of accounts issued after the introduction of such
Load/CDSC
4. A public notice shall be given in respect of such changes in one English daily newspaper
having nationwide circulation as well as in a newspaper published in the language of
region where the Head Office of the Mutual Fund is situated.
5. Any other measure which the Mutual Fund may consider necessary.
The Trustee/AMC reserves the right to change the load structure subject to the limits prescribed
under the Regulations. Any change in load structure shall be only on a prospective basis i.e.
any such changes would be chargeable only for Redemptions from prospective purchases
(applying first in first out basis).
Transaction Charges
In terms of SEBI circular no. CIR/IMD/DF/13/2011 dated August 22, 2011, as amended from time
to time, transaction charge per subscription of Rs.10,000/– and above shall be charged from
the investors and shall be payable to the distributors/ brokers (who have opted in for charging
the transaction charge) in respect of applications routed through distributor/ broker relating to
purchases / subscription / new inflows only (lump sum and SIP), subject to the following:
For Existing / New investors: Rs. 100/ Rs. 150 as applicable per subscription of 10,000/– and
above
Transaction charge for SIP shall be applicable only if the total commitment through SIP
amounts to Rs. 10,000/– and above. In such cases the transaction charge would be
recovered in maximum 4 successful installments.
There shall be no transaction charge on subscription below Rs. 10,000/-.
There shall be no transaction charges on direct investments.
The requirement of minimum application amount shall not be applicable if the investment
amount falls below the minimum amount required due to deduction of transaction charges
from the subscription amount.
E. WAIVER OF LOAD FOR DIRECT APPLICATIONS
Not applicable
105 Axis Banking & PSU Debt Fund
VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR
INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF
BEING TAKEN BY ANY REGULATORY AUTHORITY
This section shall contain the details of penalties, pending litigation, and action taken by
SEBI and other regulatory and Govt. Agencies.
1. All disclosures regarding penalties and action(s) taken against foreign Sponsor(s) may be
limited to the jurisdiction of the country where the principal activities (in terms of income /
revenue) of the Sponsor(s) are carried out or where the headquarters of the Sponsor(s) is
situated. Further, only top 10 monetary penalties during the last three years shall be
disclosed.
Not Applicable
2. In case of Indian Sponsor(s), details of all monetary penalties imposed and/ or action taken
during the last three years or pending with any financial regulatory body or governmental
authority, against Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee
Company; for irregularities or for violations in the financial services sector, or for defaults
with respect to share holders or debenture holders and depositors, or for economic
offences, or for violation of securities law. Details of settlement, if any, arrived at with the
aforesaid authorities during the last three years shall also be disclosed.
a. A show-cause notice was issued to Axis Bank by RBI dated November 16, 2017
following a statutory inspection which revealed violations of various regulations of
the RBI in relation to assessment of NPAs. After considering the response and oral
submissions of Axis Bank, the RBI found that the charges of non-compliance were
substantiated and imposed a monetary penalty of INR 3,00,00,000 (Rupees Three
Crores Only) on March 5, 2018.
b. The RBI had issued Show Cause Notice vide its letter dated 27.7.2018 with respect to
dispensation of two Children Bank Play Notes of Rs.500 each dispensed to two
customers from ATM at Kidwai nagar branch, Kanpur in non-compliance to its
Master Circular on Detection and Impounding of Counterfeit Notes dated July 20,
2017 and, the Circular on Sorting of Notes – Installation of Note Sorting Machines
dated November 19, 2009 and the Bank submitted the response on 16.8.2018. The
RBI vide its letter dated 30.1.2019 imposed a penalty of Rs.20 lakhs and the Bank
paid the same on 5.2.2019.
c. The RBI had issued Show Cause Notice vide its letter dated 29.8.2018 for wrongfully
collecting 105 DDs, each for the amount exceeding Rs.50,000, aggregating Rs.5.56
crores in the account of Satkar Co-operative Credit Society Ltd. in non-compliance
to its Master Circular on ‘Collection of Account Payee Cheques - Prohibition on
Crediting Proceeds to Third Party Account’ dated January 22, 2014 and for the
delay in reporting of above fraud in non-compliance to Master Directions on
‘Frauds - Classification and Reporting by commercial banks and select FIs’ dated
July 1, 2016. The Bank submitted the response on 17.9.2018. The RBI vide its letter
dated 30.1.2019 imposed a penalty of Rs.2 Crore and the Bank has paid the same
on 16.2.2019.
d. The RBI had issued Show cause notice vide its letter dated 23.8.2018 with respect to
non-compliance to guidelines issued dated 20.2.2018 on ‘Time-bound
implementation & Strengthening of SWIFT related operational controls and the Bank
submitted the response on 5.9.2018. The RBI vide its letter dated 25.2.2019
cautioned the Bank stating that any deficiency in this regard will attract penal
action in future.
3. Details of all enforcement actions taken by SEBI in the last three years and/ or pending with
SEBI for the violation of SEBI Act, 1992 and Rules and Regulations framed there under
including debarment and/ or suspension and/ or cancellation and/ or imposition of
monetary penalty/adjudication/enquiry proceedings, if any, to which the Sponsor(s) and/
or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors
106 Axis Banking & PSU Debt Fund
and/ or key personnel (especially the fund managers) of the AMC and Trustee Company
were/ are a party. The details of the violation shall also be disclosed.
Nil
4. Any pending material civil or criminal litigation incidental to the business of the Mutual Fund
to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company
and/ or any of the directors and/ or key personnel are a party should also be disclosed
separately.
Nil
5. Any deficiency in the systems and operations of the Sponsor(s) and/ or the AMC and/ or
the Board of Trustees/Trustee Company which SEBI has specifically advised to be disclosed
in the SID, or which has been notified by any other regulatory agency, shall be disclosed.
Nil
The Scheme under this Scheme Information Document was approved by the Trustee Company
on September 22, 2011. The Trustee has ensured that the Scheme is a new product offered by
Axis Mutual Fund and is not a minor modification of its existing schemes.
Notwithstanding anything contained in this Scheme Information Document, the provisions of
the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable.
for and on behalf of
Axis Asset Management Company Ltd.
Sd/-
Chandresh Kumar Nigam
Managing Director & Chief Executive Officer
Date: November 29, 2019
Place: Mumbai
107 Axis Banking & PSU Debt Fund
OFFICIAL POINTS OF ACCEPTANCE FOR ONGOING TRANSACTION
AXIS AMC OFFICE ADDRESSES
AHMEDABAD Axis Asset Management Company Limited ,Mithakali Law Garden Road,
Ellisbridge, 3rd Floor, 302, Megha House, Opp. Kotak Bank,Ahmedabad - 380 006.. AGRA: Axis
Asset Management Company Limited ,Shop No. G-7, Ground Floor, Block-19/4, Sanjay Place,
Agra - 282 002. BANGALORE Axis Asset Management Co.Ltd. Ground Floor, G-03 & G-03A,
Prestige Meridian-1, No. 29, M.G. Road, Bangalore - 560 001 BHOPAL Axis Asset Management
Co FM-8 Mansarovar Complex , Khasra No. 27/1/2 , NH-12 , Bhopal , MP. BHUBANESHWAR Axis
Asset Management Co Unit no.3 (Part) Ground Floor Nandighosh Arena Plot no. 1 Bapuji Nagar
Bhubaneshwar Odisha. BORIVALI Axis Asset Management Co. Ltd, Office No. 201, 2 Floor, REIS
Magos, Ramdas Sutrale Marg, Off. Chandavarkar Road, Borivali (West), Mumbai, Maharashtra
- 400092. CHANDIGARH Axis Asset Management Co.Ltd. 2nd Floor, SCO No 2471, Sector 22C,
Chandigarh - 160022. CHENNAI Axis Asset Management Co. Ltd. 1st Floor , Door no. 168 Anna
Salai , Opp. To Spencer Plaza , Chennai , Tamil Nadu - 600 002., COIMBATORE Axis Asset
Management Company Limited, 1st Floor, Shylaja Complex, 575 DB Road, R. S. Puram, Near
Head Post Office, Coimbatore - 641 002. DEHRADUN Axis Asset Management Co. Ltd., 59/3 First
Floor, Rajpur Road, Above IDBI Bank, Dehradun – 248001. FORT Axis Asset Management
Company Limited , 112, 1st Floor, Yusuf Building, Plot No. 49, Veer Nariman Road, Hutatma
Chowk, Fort, Mumbai - 400 001. GUWAHATI Axis Asset Management Co. ltd 2C 2nd Floor,
“Dihang Arcade”, ABC, G.S. Road Opp Dona Planet Guwahati 781005. HYDERABAD Axis Asset
Management Company Ltd, 2nd Floor, Nerella House, Panjagutta, Hyderabad - 500 082.
INDORE Axis Asset Management Co. ltd office No. 211 2nd Floor Megapolis Square Block A 579,
M.G Road .opp Treasure Island Mall Indore 452001 M.P JAIPUR Axis Asset Management
Company Ltd, 305, 3rd Floor, Ganpati Plaza, M. I. Road, Jaipur-302001.Rajasthan. JALANDHAR
Axis Asset Management Co. Ltd , SCO 5-6, 1st Floor, Puda Complex, Opp Suvidha Center,
Ladowali Road, Jalandhar - 144 001 KANPUR Axis Asset Management August Company
Limited, 305-306, 3rd Floor, Civil Lines, Kan Chamber, Kanpur – 208001. KOCHI Axis Asset
Management Company Limited,Door No.40/9336 ,2nd Floor ,Chackos Towers ,Padma
Pullepady Road ,Kochi 682 035 Kerala. KOLKATA Axis Asset Management Company Ltd,
Ground Floor, Kanak Building,41, Chowringhee Road Kolkata - 700071. LUCKNOW Axis Asset
Management Co. Ltd, Unit No 5, 6 & 7, Halwasiya's Commerce House, 2nd Floor, Habibullah
Estate, 11, M.G.Marg, Hazratganj, Lucknow - 226001. LUDHIANA Axis Asset Management Co.
Ltd. SCO - 28, First Floor, Feroz Gandhi Market, Ludhiana - 141001. MUMBAI Axis Asset
Management Company Limited Axis House, First Floor, C-2, Wadia International Centre,
Pandurang Budhkar Marg, Worli, Mumbai - 400025. MUMBAI (Indiabulls) Axis Asset
Management Company Ltd. Unit No. 902, 9th Floor, Indiabulls Finance Center, Tower 2,
Senapati Bapat Marg, Mumbai - 400013. NAGPUR Axis Asset Management Company Ltd. 1st
Floor, "The Edge", 12, Shankar Nagar, WHC Road, Nagpur-440010 NASIK Axis Asset
Management Company Limited Shop No. G-7,GroundFloor, Rajvee Enclave, Old Pandit
Colony, Nasik - 422 001, Maharashtra. NEW DELHI Axis Asset Management Company Ltd. 702-
705, 7th Floor, Narain Manzil, Barakhamba Road, Connaught Place, New Delhi - 110001.
PANAJI Axis Asset Management Company Limited Ground Floor, Shop No. G-7, Edcon Towers,
Menezes Braganza Road, Panjim, Goa - 403001. PUNE Axis Asset Management Company Ltd.
Unit No. 102 & 102-A/B, 1st Floor, Signature Building, Bhandarkar Road, CTS No. 853, Plot No. 195,
Bhamburda, Shivajinagar, Pune - 411005.PATNA Axis Asset Management Company Ltd. D - 309/
310, 3 Floor, Dumroan Palace, Frazer Road, Patna 800 001. RAIPUR Axis Asset Management
Company Ltd ,Office No. T -10, 3rd Floor, Raheja Towers, Fafadih , Chowk Jail Road, Raipur,
Chhattisgarh - 492001. RAJKOT Axis Asset Management Co. ltd 206, Metro Plaza Jansata
Chowk Near Eagle Travels Moti Tanki Chowk , Rajkot - 360001. SURAT Axis Asset Management
Company Limited,HG-2A, International Trade Centre(ITC), Majura Gate Crossing, Ring Road
,Surat Gujarat, India. Thane Axis Asset Management Company Ltd, Manjula Arcade, 2nd Floor,
Gokhale Road, Naupada, Thane (West) - 400 602. Vadodara Axis Asset Management
Company Limited 3rd Floor, 306, Emerald Complex, Race Course, Near Bird Circle, Old Padra
Road, Vadodara - 390 007.Amritsar Axis Asset Management Co. Ltd SCO-25, First floor, District
shopping Centre, B-Block, Ranjit Avenue, Amritsar – 143001. Varanasi Axis Asset Management
108 Axis Banking & PSU Debt Fund
Company Ltd. 7th Floor, Arihant Complex, D-64/127 C-H, Sigra, Varanasi, Uttar Pradesh -
221010. Visakhapatnam Axis Asset Management Company Limited, S3, 3rd Floor, Navaratna
Jewel Square, Beside Jyothi, Book Depot, Dwarakanagar, Visakhapatnam - 530 016.
KARVY FINTECH PRIVATE LIMITED INVESTOR SERVICE CENTERS
Adyar Karvy Fintech Private Limited,New No 51, Gandhi Nagar,First Main Road, Adyar Chennai-
600 020 Agartala, Jagannath Bari Road Bidur Karta Chowmuhani Agartala – 799001 • Agra
Deepak Wasan Plaza, Behind Holiday Inn, Opp Megdoot Furnitures, Sanjay Place, Agra -282002
(U.P) • Ahmedabad, 201,Shail Building, Opp : Madhusudhan House Nr. Navrangpura
Telephone Exchange; Navrangpura Ahmedabad - 380 006 Ajmer, 1-2, II Floor Ajmer Tower,
Kutchary Road Ajmer - 305 001. Akola Shop No-30, Ground Floor, Yamuna Tarang Complex, N
H No 06, Murtizapur Road, Akola 444004 • Alambagh KSM Tower,CP-1 Sinder Dump, Near
Alambagh Bus Station, Alambagh, Lucknow 226 005• Aligarh 1st Floor, Kumar Plaza, Aligarh
202001 Uttar Pradesh • Allahabad RSA Towers, 2nd Floor, Above Sony TV Showroom, 57, S P
Marg, Civil Lines, Allahabad 211001• Alleppey 3rd Floor, J.P.Tower, 17/1424(184), VCSB Road,
Zilla Court Bridge Road, Mullackal, Alleppey – 688011, Kerala • Alwar 101, 1st Floor, Saurabh
Towers, Opp. UTI, Road No # 2 Bhagat Singh Circle Alwar-301001. • Aliganj Hig-67, Sector E,
Aliganj, Lucknow 226 024 • Amaravathi Shop No. 21, 2nd Floor, Gulshan Tower Near
Panchsheel Talkies ,Jaistambh Square, Amravati(M.H.) Pincode 444601 Ambala 6349, Nicholson
Road, Adjacent Kos Hospital, AmbalaCantt, Ambala 133001 Amritsar 72-A, Taylor'S Road Aga
Heritage Gandhi Ground Amritsar - 143 001 Anand 201 Sai Apartment , Behind New Bus Stand
Anand Pin code 388001 • Andheri 6 & 7, Andheri Industrial Estate, Veera Desai Road, Andheri
(West), Mumbai 400 053 • Ananthapur # 15-149, 1st Floor, S R Towers, Opp. Lalithakala Parishat
Subash Road, Anantapur 515001 • Ankleshwar L/2, Keval Shopping Center Old National
Highway Ankleshwar 393002 • Asansol 114/N, G.T. Road, Bhanga Panchil, Near Nokia
Care,Asansol - 713303 • Aurangabad Ramkunj, Railway Station Road Near Osmanpura Circle
Aurangabad-431005 •Azamgarh 1st Floor Alkal Building, Opp. Nagaripalika Civil LIne,
Azamgarh-276 001 Below Central Bank of India, SadawartiChowk, Azamgarh 276001 • Balasore
M S Das Street, Gopalgaon, Balasore 756001 • Bangalore 59,Skanda Puttanna Road ,
Basavanagudi, Bangalore- 560004 • Bankura Karvy Fintech Pvt Ltd. Plot nos- 80/1/A,
NATUNCHATI MAHALLA, 3rd floor, Ward no-24, Opposite P.C Chandra, Bankura town, Bankura
722101 • Bareilly 1st Floor, 165, Civil Lines, Opposite Hotel Bareilly Palace, Near RlyStation Road,
Bareilly 243001 • Barhampore (WB) Thakur Market Complex, 72, Naya Sarak Road,Gorabazar,
PO. Berhampore DIST. Murshidabad Barhampore -742101 • Baroda 203 Corner Point , Jetalpur
Road, Baroda Gujarat 390 007 • Begusarai Hotel Diamond Surbhi Complex, Near I.O.C
Township Gate, Kapasiya Chowk, Begusarai 851117 • Belgaum CTS No 3939/ A2 A1, Above
Raymonds Show Room Club Road, Belgaum – 590001.• Bellary No 1 KHB Colony,
Gandhinagar, Bellary 583101 • Behrampur Opp –Divya Nandan Kalyan Mandap 3rd Labe
Dharam Nagar Near Lohiya Motor, Berhampur, Orissa 760001• Betul107, Hotel Utkarsh, Awasthi
Complex, J H College Road, Civil Lines, Beetul 460001 • Bhagalpur 2nd Floor, Chandralok
Complex, Ghantaghar, Radha Rani Sinha Road, Bhagalpur 812001 • Bharuch 147-148, Aditya
Complex Near Kasak Circle Bharuch - 392 002 • Bhatinda # 2047-A, 2nd Floor, Above Max
New York Life Insurance The Mall Road Bhatinda 151001 • Bhavnagar Karvy Fintech Private
Limited ,303, Sterling Point, Waghawadi Road, Bhavnagar – 364001 • Bhilai Shop No-1,First
Floor Plot NO-1, Old Sada Office Block Commercial Complex, Near HDFC Atm, Nehru Nagar-
East Post – BHILAI Pin – 490020 • Bhilwara 27-28, 1st Floor, HiraPanna Complex, Pur Road,
Bhilwara 311001 • Bhopal Kay KayBusniss Centre, 133 Zone, I M P Nagar, Bhopal 462021 •
Bhubaneswar 2nd & 3rd Floor, Janardan House, A 181, Saheed Nagar, Bhubaneswar - 751 007,
Odisha • Bikaner 2nd Floor, Plot No 70 & 71, Panchshati Circle, SardulGunj Scheme, Bikaner
334003 • BilaspurShop No 201/202, V RPlaza, Link Road, Bilaspur 495001 • Bokaro B-1, 1st Floor,
Near Sona Chandi Jewellers, City Centre, Sector 4, Bokaro Steel, City 827004 (Jharkhand). •
Borivali Ground Floor Himanshu Bldg. Sodawala Lane, Lina Chandawarkar Road, Borivali,
Mumbai - 400 091. • Burdwan Karvy Fintech Private Ltd., Anima Bhavan, 1 Floor, Holding No. 42,
Sreepally, G. T. Road, Burdwan, West Bengal - 713103. • Calicut First Floor, Savithri Building,
Opposite Fathima Hospital, Bank Road, Calicut - 673001, Kerala • Chandigarh Sco 2423-2424
Sector 22-C Chandigarh Pin code 160022 • Chandrapur Shop No 5, Office No 2, 1st Floor,
Routs Raghuvanshi Complex, Beside Azad Garden, Main Road, Chandrapur 442402 •
Chembur Shop No. 4, Ground Floor, Shram Saflya Bldg, N G Acharya Marg, Chembur, Mumbai
109 Axis Banking & PSU Debt Fund
400 071 • Chennai (Egmore) Flat No F11,First Floor, Akshya Plaza,(Erstwhile Harris Road), Opp
Chief City Metropolitan Court, # 108, AdhithanarSalai, Egmore, Chennai 600002 • Chennai (T
Nagar) G1, Ground Floor No 22, Vijayaraghava Road, Swathi Court, T Nagar, Chennai - 600
017.• Chinsura JC Ghosh Sarani Near Bus Stand Chinsura 712101 • Cochin Building Nos.39 Ali
Arcade ,1st floor, Near Atlantis Junction, Kizhvana Road, Panampili Nagar, Cochin-682 036
Ernakulum District Coimbatore 3rd Floor 1056/1057, Jaya Enclave, Avanashi Road, Coimbatore -
641018. • Cuttack Dargha Bazar, OppDargha Bazar Police Station, Buxibazar, Cuttack 753001
• Darbhanga Jaya Complex 2nd Floor, above furniture planet, Donar chowk Darbanga-846
003 • Dalhousie 2Nd Floor, Room no-226 R N Mukherjee Road, Kolkata 700 001 • Davangere #
15/9, Sobagu Complex, 1st Floor, 2nd Main Road, P J Extension, Davangere 577002 •Dehradun
Kaulagarh Road, Near Sirmaur Marg, Above Reliance Webworld, Dehradun 248001 • Deoria
1St Floor, Shanti Niketan Opp. Zila Panchayat, Civil Lines Deoria- 274001 • Dewas 27 Rmo
House, Station Road, Dewas 455001• Dhanbad 208, New Market, 2nd Floor,Katras Road, Bank
More, Dhanbad 826001 • Dharwad G7 & 8, Sri Banashankari Avenue Ramnagar, OppNttfpb
Road Dharward 580001 • Dhule Ground Floor Ideal Laundry, Lane No 4 , Khol Galli, Near
Muthoot Finance , Opp Bhavasar General Store, Dhule – 424001• Dindigul No 9, Old No 4/B,
New Agraharam, Palani Road, Dindigul 624001 • Durgapur MWAV – 16 Bengal Ambuja 2nd
Floor, City Centre Durgapur 713216 • Eluru- Karvy Fintech Private Limited., Dno-23a-7-72/73 ,K K
S Plaza, Munukutla Vari Street, Opp Andhra Hospitals,R R Peta, Eluru – 534002,West Godavari
Dist.,Andhra Pradesh• Erode No 4,KMY Salai, Veerappan Traders Complex, Opp Erode Bus
Stand,Sathy Road, Erode 638003 • Faridabad A-2B, 1st Floor, Nehru Ground, Neelam Bata
Road, Nit, Faridabad 121001 • Ferozpur2nd Floor, Malwal Road, Opp H M School, Ferozpur City
152002• Gandhidham Office No. 203, Second Floor Bhagwati Chamber, Plot No. 8 Sector - 1/A,
Kutch Kala Road, Gandhidham - 370 201 • Gandhinagar Plot No. - 945/2, Sector - 7/C,
Gandhinagar - 382 007 • Gaya 54 Lal Kothi Compound, Near Royal , Surya Hotel,Shree Krishna
Road, 2 Floor - North side, Gaya - 823 001 • Ghaziabad 1st Floor, C-7, Lohia Nagar, Ghaziabad
201001 • Ghazipur Shubhra Hotel Complex, 2nd Floor, Mahaubagh, Ghazipur 233001 • Gonda
Shree Markit Sahabgunj ,Near Nuramal Station Raod Gonda 271001 • Gorakhpur Above V I P
House Ajdacent A D Girls Inter College, Bank Road, Gorakpur 273001 • Gomti Nagar B-1/2,
Vijay Khand, Near Union Bank of India, Gomti Nagar, Lucknow 226 010 • Gulbarga CTS No.
2913, First Floor,Asian Tower Next To Hotel Aditya,Jagat Station Main Road Gulbarga 585105•
Guntur D. No 6-10-27 10/1 Sri Nilayam ,Arundelpet Guntur 522 002 • Gurgaon Shop No 18,
Ground Floor, Sector 14, Opp AKD Tower, Near Huda Office, Gurgaon 122001 • Guwahati 54
Sagarika Bhawan R G Baruah Road, (AIDC Bus Stop) Guwahati 781024 • Gwalior 2nd Floor
Rajeev Plaza Jayendra Ganj, Lashkar Gwalior 474009. • Haldwani Above Kapilaz Sweet House
Opp LIC Building Pilikothi Haldwani 263139 Uttarakhand • Haridwar 7, Govindpuri, Opposite 1-
india Mart, Above Raj Electricals, Ranipur More, Haridwar–249401 • Hassan SAS No. 212,
Ground Floor, Sampige Road, 1st Cross Near Hotel Southern Star, K. R. Puram, Hassan - 573 201
• Hissar Sco 71, 1st Floor, Red Square Market, Hissar 125001 • Hoshiarpur 1st Floor, The Mall
Tower, Opp Kapila Hospital, Sutheri Road, Near Maharaj Palace, Hoshiarpur 146001 • Hubli 22
& 23 , 3rd Floor Eurecka Junction, T B Road Hubli – 580029 • Hyderabad 8-2-596 Karvy
Plaza,Avenue 4, Street No 1, Banjara Hills, Hyderabad 500034 • Indore 2nd Floor , 203-205 Balaji
Corporates Above ICICI bank, 19/1 New Palasia Indore – 452001 •Jabalpur 43, Naya Bazar,
Opposite Shyam Talkies, Jabalpur (MP) 482001 • Jaipur S-16 A, 3rd Floor, Land Mark, Opposite
Jaipur Club, Mahavir Marg, C- Scheme, Jaipur 302001 • Jalandhar Lower Ground Floor, Office
No 3, Arora Prime Tower, Plot No 28, G T Road, Jalandhar 144004 • Jalgaon 269, Jaee Plaza, 1
st Floor | Baliram Peth| Above United bank of India| Near kishor Agencies , Jalgaon - 425001
• Jalpaiguri D B C Raod, Near Rupasree Cinema Hall, Beside Kalamandir, PO & Dist Jalapiguri
735101 • Jammu 5 A/D Second Extension, opposite Panama Chowk Petrol Pump Gandhi
Nagar Jammu 180 012. Jamnagar 108 Madhav Plaza, Opp SBI Bank, Near Lal Bangalow,
Jamnagar 361001 • Jamshedpur 2nd Floor, R R Square SB Shop Area, near Reliance Foot Print
& Hotel- BS Park Plaza Main Road, Bistupur Jamshedpur—831001 • Jaunpur 119,R N Complex,
2nd Floor, Near Jay Ceej Crossing, Ummarpur Jaunpur-222 002 • Jhansi 371/01, Narayan Plaza,
Gwalior Road, Near Jeevan Shah Chauraha, Jhansi 284001 • Jodhpur 203, Modi Arcade,
Chupasni Road, Jodhpur 342001 • Junagadh 124/125, Punit Shopping Center, Ranavat Chowk,
Junagadh Gujarat 362001 • Kannur 2nd Floor, Prabhat Complex, Fort Road, Kannur 670001 •
Kanpur 15/46, Opp Muir Mills, Civil Lines, Kanpur 208001 • Karaikudi No. 2,Gopi Arcade 100
Feet Road, Karaikudi 630001 • Karaikudi Gopi Arcade, 100 Feet Road, Karaikudi 630001 •
110 Axis Banking & PSU Debt Fund
Karimnagar SRI PROJECTS,Door no 2-10-1298, 2nd Floor,Rathnam Arcade, Jyothi
Nagar,KARIMNAGAR-505001 • Karnal 18/369,Char Chaman Kunjpura road Karnal-132001 •
Karur No 6, Old No 1304 Thiru-Vi-Ka Road, Near G R Kalyan Mahal Karur 639001 • Kharagpur
Malancha Road, Beside UTI Bank,Kharagpur 721304 • Kolhapur 605/1/4 E Ward, Near Sultane
Chambers, Shahupuri 2nd Lane Kolhapur 416001• Kolkata Apeejay House ( Beside Park Hotel )
15 Park Street, C Block,3rd Floor Kolkata-700016 , West Bengal • Kollam Ground Floor,
Vigneshwara Bhavan, Below Reliance Web World, Kadapakkada Kollam 691008 • Kolkata 1 R
N Mukerjee Road, 2nd Floor Room No.- 226, Kolkata - 700 001. • Kota H No 29, First Floor, Near
Lala Lajpat Rai Circle Shopping Centre, Kota, Rajasthan 324007 • Kottayam 1st Floor,
CSIAscension Church Complex, Kottayam 686001 • Korba 1st Floor, 35 Indira Complex, T P
Nagar, Korba (CG) 495677 • Koramangala No.408, Ist Floor, CITA Bldg, Next to Vodafone
Office, Koramangala, Bangalore 560 095 • Kurnool Shop No 43, 1st Floor S V Complex, Railway
Station Road, Kurnool 518004 • Lucknow 1st Floor, A. A. Complex, Thaper House, 5 Park Road,
Hazratganj, Lucknow – 226 001 • Ludhiana SCO - 136, First Floor, Above Airtel Show Room,
Feroze Gandhi Market, Ludhiana – 141 001. • Malda Sahistuli Under Ward No-6, English Bazar,
Municipality, No-1 Govt Colony, Malda 732101 • Malleshwaram No.337, GF-3, Karuna
Complex, Sampige Road, Opp. New Vegetable Market, Malleshwaram, Bangalore 560003•
Madurai Rakesh Towers, 30-C, Bye Pass Road, 1st Floor, Opp Nagappa Motors, Madurai 625010
• Mangalore Ground Floor, Mahendra Arcade, Kodial Bail, Mangalore 575003 • Margao 2nd
Floor,Dalal Commercial Complex, Opp Hari Mandir, Pajifond, Margao-Goa 403601 • Mathura
AMBEY Crown, IInd Floor In Front Of BSA College Gaushala Road Mathura – 281001 • Meerut
1st Floor, Medi Centre Complex, Opp ICICI Bank, Hapur Road, Meerut 250002 • Mehsana Ul-47,
Appolo Enclave, Opp Simandhar Temple, Modhera Char Rasta Highway, Mehsana 384002 •
Mirzapur Girja Sadan,Dankin Gunj Mirzapur 231001 • Moga Near Dharamshala Brat Ghar, Civil
Line, Dutt Road, Moga 142001 • Moradabad Om Arcade, Parker Road, Above Syndicate Bank,
TariKhana Chowk,Moradabad 244001 • Morena Moti Palace, Near Ramjan ki Mandir, Jiwaji
Ganj, Morena 476001 • Mumbai - Office number : 01/04, 24/B, Raja Bahadur Compound,
Ambalal Doshi Marg, Behind Bombay Stock Exchange, Fort Mumbai – 400001 • Muzaffarpur
First Floor, Shukla Complex, Near ICICI Bank, Civil Court Branch, Company Bagh,
Muzaffarpur,Bihar – 842001 • Mysore L-350, Silver Tower, Clock Tower, Ashoka Road, Mysore
570001 • Nadiad 105 GF City Point, Near Paras Cinema, Nadiad 387001 • Nanganallur Karvy
Fintech Private Limited, No.: 155/7, Ullagaram, Medavakkam Main Road , (Opp. to IDBI ATM) ,
Madipakkam, Chennai - 600 091. • Nagarcoil 45, East Car Street, 1st Floor, Nagercoil - 629 001•
Nagpur Plot No.2/1, House No. 102/1, Mangaldeep Apartment, Mata Mandir Road,
Opp. Khandelwal Jewellers, Dharampeth, Nagpur - 440 010 • Namakkal 105/2, Arun Towers,
Paramathi Street, Namakkal 637 001 • Nanded Shop No 4, First Floor, Opp Bank of India,
Santkrupa Market, Gurudwara Road, Nanded 431602 • Nasik S-12, Second Floor, Suyojit Sankul,
Sharanpur Road, Nasik 422002 • Navsari 103, 1st floor Landmark Mall,Near Sayaji Library,
Navsari,Gujarat - 396445• New Delhi 305, 3rd Floor New Delhi House, Bara Khamba Road
Connaught Place New Delhi-110 001• Nellore 16-2-158, 3rd Floor, Mogarala Complex, Sunday
Market Lane, Pogathota,Nellore - 524001, Andhra Pradesh.• Nizamabad H No: 5-6-430, First
Floor, Above Bank of Baroda, Beside HDFC Bank , Ginza View, Hyderabad Road, Nizamabad-
503003. • Noida 405 4th Floor , Vishal Chamber , Plot no. 1, Sector 18 Noida 201301 • Palghat
12/310, (No.20 & 21), Metro Complex, Head Post Office Road, Sultanpet, Palghat 678001 •
Panipat Java Complex , 1st Floor , above Vijaya Bank , G. T Road , Panipat-132103 Haryana. •
Panjim Karvy Fintech Private Limited Flat No.1-A, H. No. 13/70 Timotio Bldg Heliodoro Salgado
Road, Next to Navhind Bhavan (Market Area) Panaji Goa – 403001 • Patiala Sco 27 D,Chhoti
Baradari Patiala 147001 • Patna 3A, 3rd Floor, Anand Tower, Beside Chankya Cinema Hall,
Exhibition Road, Patna 800001 • Pathankot 2nd Floor, Sahni Arcade Complex, Adj. Indra Colony
Gate Railway Road, City Pathankot- 145001 • Pollachi S S Complex, New Scheme Road,
Pollachi 642002 • Pondicherry First Floor No.7, Thiayagaraja Street Pondicherry 605001 •
Pudukottai Sundaram Masilamani Towers, TS No 5476-5479, PM Road, Old Tirumayam Salai,
Near Anna Statue, Jublie Arts, Pudukottai 622001 •Pune Office # Mozaioc Building 3rd Floor CTS
No:1216/1FC Road, Opposite- FC Collage Main Gate Above Allahabad Bank, Shivaji Nagar
,Pune - 411004 • Raipur Office No. S-13, Second Floor,Raheja Tower, Fafadih Chowk, Jail Road,
Raipur - 492 001.• Rajahmundry Dr No 61-4, First Floor, Rangachary Street, T Nagar,
Rajahmundry 533101 • Rajapalayam Sri Ganpathy Complex 14B/5/18, T P Mills Road
Rajapalayam 626117 •Rajkot 302, Metro Plaza, Near Moti Tanki Chowk , Rajkot, Gujarat - 360
111 Axis Banking & PSU Debt Fund
001 •Ranchi Room No. 307, 3 rd Floor, Commerce Towers, Beside Mahabir Towers Main Road
Ranchi - 834 001• Ratlam 1 Nagpal Bhavan, Freeganj Road, Tobatti, Ratlam 457001 • Renukoot
Shop No 18, Near Complex Birla Market, Renukoot 231217 • Rewa 1st Floor, Angoori Building,
Besides Allahabad Bank,Trans University Road, Civil Lines, Rewa 485001 • Rohtak 1st Floor,
Ashoka Plaza, Delhi Road, Rohtak 124001 • Roorkee Shree Ashadeep Complex, 16 Civil Lines,
Near Income Tax Office, Roorkee, Uttaranchal 247667 • Rourkela 1st Floor, Sandhu Complex,
Kanchery Road, Udit Nagar, Rourkela 769012 • Sagar 1st floor satyam complex,infront of cantt
shopping mall5 civil lines Sagar (MP)470002. • Saharanpur 18 Mission Market, Court Road,
Saharanpur 247001 Uttar Pradesh • Salem No. 3/250 "F" Brindavan Road, 6th Cross , Perumal
Kovil Back side, Fair Land's Salem - 636016, Tamil Nadu. • Sambalpur Karvy Fintech Private
Limited Koshal Builder Complex, Near Goal Bazaar Petrol Pump, Sambalpur - 768 001. • Satna
1St Floor, Gopal Complex, Near Busstand Rewa Road Satna (M.P) -485 001 • Secunderabad C/o. Karvy Fin. Ser. Ltd. 1st Floor, Thirumala, Complex Paradise Circle, S.D. Road, Opp. Hotel Kamat, Secunderabad -
500 003 • Shaktinagar 1st/A-375, V V Colony Dist Sonebhadra Shaktinagar 231222 • Shivpuri 1st
Floor, M P R P Building, Near Bank of India, Shivpuri 473551 • Shillong Mani Bhawan, Thana
Road, Lower Police Bazar, Shillong 739001 • Shimla Triveni Building, By Pas Chowk, Khallini,
Shimla 171002 • Shimoga Uday Ravi Complex, LLR Road, Durgi Gudi, Shimoga 577201 • Sikar
1st Floor, Super Towers Behind Ram Mandir, Station Road, Sikar 332001 • Silchar 1st Floor,
Chowchakra Complex, N N Dutta Road, Premtala Silchar 788001 • Siliguri Nanak Complex,
Near Church Road, Sevoke Road, Siliguri 734001 • Sitapur 12/12-A Surya Complex, Arya Nagar,
Opp Mal Godam, Sitapur 261001 • Sivakasi 363, Thiruthangal Road, Opp TNEB,Sivakasi 626 123
• Solan Sahni Bhawan, Adjacent Anand Cinema Complex, The Mall Solan 173212, • Solapur
Siddeshwar Secrurities, No 6, Vaman Road, Vijaypur Road, Vaman Nagar,Solapur 413004 •
Surat Office No: 516, 5th Floor, Empire State Building, Near Parag House, UdhnaDarwaja, Ring
Road, Surat 395002 • Sonepat 205 R Model Town, Above Central Bank of India, Sonepat • Sri
Ganganagar 35-E-Block, Opp Sheetla Mata Vatika, Sri Ganga Nagar 335001 • Srikakulam 4-1-
28/1, Venkateshwara Colony Day & Night Junction, Srikakulam 532001 • Sultanpur Rama
Shankar Complex, Civil Lines, Faizabad Road, Sultanpur 228001 • Thanjavur Nalliah Complex,
No 70, Srinivasam Pillai Road, Thanjavur 613001 • Thane 101, Yashwant Building, Ram Ganesh
Godkari Path, Ram Maruti Road, Naupada, Thane - 400 602. • T Nagar G1, Ground Floor, No
22, Vijayaraghava Road Swathi Court, T Nagar Chennai 600 017• Thodupuzha First Floor,
Pulimoottil Pioneer Pala Road, Thodupuzha 685584 • Tirunelveli Jeney Building, 55/18, S N Road,
Near Arvind Eye Hospital, Tirunelveli 627001•Tirupur First Floor, 224 A, S Selvakumar
Departmental Stores, 1st Floor, Kamaraj Road,Opp To Cotton Market Complex, Tirupur 641604 •
Tirupathi H.No:12-3-330 2nd Floor , Tilak Road Near Four Piller Mandapam Tirupathi : 517501 •
Tiruvalla 2nd Floor, Erinjery Complex, Near Kotak Securites, Ramanchira Tiruvalla 689107 •
Trichur 2nd Floor, Brother's Complex, Near DhanaLaxmi Bank Head Office, Naikkanal Junction,
Trichur 680001 • Trichy Sri Krishna Arcade, 1st Floor, 60 Thennur High Road, Trichy 620017 •
Trivandrum 2nd Floor, Akshaya Towers, Above Jetairways, Sasthamangalam, Trivandrum 695010
• Tuticorin 4 B, A34, A37, Mangalmal, Mani Nagar,Opp Rajaji Park, Palayamkottai Road,
Tuticorin 628003 • Udaipur 201-202, Madhav Chambers, Opp G P O Chetak Circle, Madhuban,
Udaipur 313001 • Ujjain 101, Aastha Tower, 13/1,Dhanwantri Marg, Free Gunj Ujjain 456010 •
Valsad Shop No 2, Phiroza Corner Opp Next Showroom; Tithal Road Valsad 396001 • Vapi Shop
No 5, Phikhaji Residency, Opp DCB Bank,Vapi Silvassa Road, Vapi 396195 • Varanasi D-64/132,
KA 1st Floor, Anant Complex, Sigra, Varanasi 221010 • Vashi A Wing, Shop No 205, 1st Floor,
Vashi Plaza,Sector 17, Vashi, Navi Mumbai - 400 073 . • Vellore No 1, M N R Arcade, Officer's
Line, Krishna Nagar, Vellore 632001 • Vijayawada 39-10-7 Opp Municipal Water Tank, Labbipet,
Vijayawada 520010 • Vile Parle 104, Sangam Arcade, V P Road, Opp.Railway Station, Above
Axis Bank, Vile Parle (West), Mumbai 400 056 •Visakhapatnam 47-14-5/1 Eswar Paradise,
Dwaraka Nagar, Main Road, Visakhapatnam 530016 •Vijayanagaram Soubhagya, 19-6-13/1,
llnd Floor, Near SBI Fort Branch, Vizianagaram 535002 • Warangal Karvy Fintech Pvt.Ltd. H. No.
1-8-533, Beside: Suprabha Hotel, Nakkalagutta, Ward No.1, Hanamkonda, Waranagal - 506
001, Telangana. • Yamuna Nagar Jagdhari Road, Above UCO Bank, Near D A V Grils College,
Yamuna Nagar 135 001.
Karvy, Registrar & Transfer Agents of Axis Mutual Fund having its office at Unit: Axis Mutual Fund,
Karvy Selenium, Tower B, Plot number 31 & 32, Financial District, Gachibowli, Hyderabad 500
008 is the collection centre of transactions / request for electronic transactions received from
112 Axis Banking & PSU Debt Fund
specified banks, financial institutions, distribution channel etc. (mobilized on behalf of their
clients) with whom the AMC has entered or may enter into specific arrangements for
purchase/ sale/switch of units.
Website of the AMC (www.axismf.com) shall be official point of acceptance for existing
investors.
In addition to the existing official points of acceptance (“OPA”) for accepting transactions in
the units of the schemes of the Axis Mutual Fund as disclosed in the SID,
http://www.mfuindia.com/MFUPOS i.e. online transaction portal of MFU and the authorized
Points of Service (“POS”) designated by MUFI shall also be the OPA.
Axis Asset Management Company Limited (Investment Manager to Axis Mutual Fund) Axis
House, 1st Floor, C-2 Wadia International, Pandurang Budhkar Marg, Worli, Mumbai - 400025,
India.
TEL 022 4325 5100 FAX 022 4325 5199 TOLL FREE 1800 221322 and additional contact number
8108622211(Chargeable) EMAIL [email protected] WEB www.axismf.com
Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act,
1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund
Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC) Risk Factors: Axis
Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of
the scheme.
Mutual Fund Investments are subject to market risks, read all scheme related documents
carefully.
Axis Growth Opportunities Fund 1
SCHEME INFORMATION DOCUMENT AXIS GROWTH OPPORTUNITIES FUND
(An Open-ended Equity Scheme investing in both large cap and mid cap stocks) Continuous offer for Units at NAV based prices
This product is suitable for investors who are seeking*:
• capital appreciation over long term • investment in a diversified portfolio predominantly consisting of equity and equity related instruments
both in India as well as overseas
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Name of Mutual Fund : Axis Mutual Fund Name of Asset Management Company
: Axis Asset Management Company Ltd.
Name of Trustee Company : Axis Mutual Fund Trustee Ltd. Addresses, Website of the entities : Axis House, 1st Floor, C-2, Wadia International Centre,
Pandurang Budhkar Marg, Worli, Mumbai - 400 025 www.axismf.com
Name of Sponsor : Axis Bank Ltd. The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, (herein after referred to as SEBI (MF) Regulations or the Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the Asset Management Company (AMC). The Units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document. The Scheme Information Document sets forth concisely the information about the Scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / Investor Service Centres / Website / Distributors or Brokers. The investors are advised to refer to the Statement of Additional Information (SAI) for details of Axis Mutual Fund, Tax and Legal issues and general information on www.axismf.com. SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website. The Scheme Information Document should be read in conjunction with the SAI and not in isolation. This Scheme Information Document is dated August 14, 2020.
Axis Growth Opportunities Fund 2
TABLE OF CONTENTS
HIGHLIGHTS/ SUMMARY OF THE SCHEME ........................................................................................ 3 I. INTRODUCTION ........................................................................................................................ 5 A. RISK FACTORS ........................................................................................................................... 5 B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME ............................................... 10 C. SPECIAL CONSIDERATIONS, if any ...................................................................................... 10 D. DEFINITIONS ............................................................................................................................ 11 E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY ............................................ 16 II. INFORMATION ABOUT THE SCHEME ................................................................................... 17 A. TYPE OF THE SCHEME ............................................................................................................ 17 B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? ................................................. 17 C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? ............................................................... 17 D. WHERE WILL THE SCHEME INVEST? ...................................................................................... 29 E. WHAT ARE THE INVESTMENT STRATEGIES ........................................................................... 36 F. FUNDAMENTAL ATTRIBUTES .................................................................................................. 48 G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? .......................................... 49 H. WHO MANAGES THE SCHEME? .......................................................................................... 49 I. WHAT ARE THE INVESTMENT RESTRICTIONS? ..................................................................... 50 J. HOW HAS THE SCHEME PERFORMED? ............................................................................... 56 K. Investments by the AMC ..................................................................................................... 58 L. Additional Scheme Related Disclosures........................................................................... 58 III. UNITS AND OFFER .................................................................................................................. 60 A. NEW FUND OFFER (NFO) ...................................................................................................... 60 B. ONGOING OFFER DETAILS ................................................................................................... 70 C. PERIODIC DISCLOSURES ..................................................................................................... 108 D. COMPUTATION OF NAV ..................................................................................................... 112 IV. FEES AND EXPENSES ............................................................................................................ 114 A. NEW FUND OFFER (NFO) EXPENSES .................................................................................. 114 B. ANNUAL SCHEME RECURRING EXPENSES ....................................................................... 114 D. LOAD STRUCTURE ................................................................................................................ 117 E. WAIVER OF LOAD FOR DIRECT APPLICATIONS .............................................................. 119 V. RIGHTS OF UNIT HOLDERS................................................................................................... 120 VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY .................................................................................... 121
Axis Growth Opportunities Fund 3
HIGHLIGHTS/ SUMMARY OF THE SCHEME Investment objective To generate long term capital appreciation by investing in a diversified portfolio of Equity & Equity Related Instruments both in India as well as overseas. However, there can be no assurance that the investment objective of the Scheme will be achieved. Liquidity The Scheme offers Units for Subscription and Redemption at NAV based prices on all Business Days. Under normal circumstances the AMC shall dispatch the redemption proceeds within 10 business days from date of receipt of request from the Unit holder. Benchmark NIFTY LargeMidcap 250 Index TRI Minimum Application Amount Rs. 5,000 and in multiples of Re. 1/- thereafter Minimum Additional Purchase Amount Rs.100 and in multiples of Re. 1/- thereafter Minimum application amount is applicable at the time of creation of new folio and at the time of first investment in a plan. Plans and Options under the Scheme Plans Axis Growth Opportunities Fund - Regular Plan Axis Growth Opportunities Fund - Direct Plan Options under each Plans Growth Dividend (Payout and Reinvestment Facility) Regular Plan Regular Plan is available for investors who purchase /subscribe Units in a Scheme through a Distributor. Direct Plan Direct Plan is only for investors who purchase/ subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor. Eligible investors / modes for applying All categories of investors (whether existing or new Unitholders) as permitted under the Scheme Information Document of the Scheme are eligible to subscribe under Direct Plan. Investments under Direct Plan can be made through various modes offered by the Fund for investing directly with the Fund {except Platform(s) where investors’ applications for subscription of units are routed through Distributors}. All the plans will have common portfolio. Load Structure Entry Load: Not Applicable Exit Load: If redeemed / switched-out on or before 12 months from the date of allotment, For 10% of investments: Nil. For remaining investments: 1%.
Axis Growth Opportunities Fund 4
If redeemed / switched - out after 12 months from the date of allotment: NIL SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 has decided that there shall be no entry Load for all Mutual Fund schemes. For more details on Load Structure, please refer paragraph “Load Structure”. Transparency/ NAV Disclosure The AMC will calculate and disclose the NAVs on all Business Days. The AMC shall update the NAVs on its website (www.axismf.com) and of the Association of Mutual Funds in India - AMFI (www.amfiindia.com) before 11.00 p.m. on every Business Day. If the NAVs are not available before the commencement of Business Hours on the following day due to any reason, the Mutual Fund shall issue a press release giving reasons and explaining when the Mutual Fund would be able to publish the NAV. The AMC will disclose the portfolio of the Scheme (alongwith ISIN) as on the last day of the month/ half year on the website of the Mutual Fund and AMFI within 10 days from the close of each month/ half year (i.e. 31st March and 30th September) respectively in a user-friendly and downloadable spreadsheet format. Further, AMC shall publish an advertisement, in an all India edition of one national English daily newspaper and in one Hindi newspaper, every half year disclosing the hosting of the half-yearly statement of its schemes portfolio on the website of the Mutual Fund and AMFI and the modes through which unitholder can submit a request for a physical or electronic copy of the statement of scheme portfolios. The AMC will also provide a dashboard, in a comparable, downloadable (spreadsheet) and machine readable format, providing performance and key disclosures like Scheme’s AUM, investment objective, expense ratios, portfolio details, scheme’s past performance etc. on its website. The AMC will make available the Annual Report of the Scheme within four months of the end of the financial year on its website and on the website of AMFI along with a link.
Axis Growth Opportunities Fund 5
I. INTRODUCTION A. RISK FACTORS i. Standard Risk Factors • Investment in mutual fund units involves investment risks such as trading volumes, settlement
risk, liquidity risk, default risk including the possible loss of principal. • As the price / value / interest rates of the securities in which the Scheme invests fluctuates,
the value of your investment in the Scheme may go up or down. • Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future
performance of the Scheme. • Axis Growth Opportunities Fund is the name of the Scheme and does not in any manner
indicate either the quality of the Scheme or its future prospects and returns. • The sponsor is not responsible or liable for any loss resulting from the operation of the
Scheme beyond the initial contribution of Rs. 1 lakh made by it towards setting up the Fund. • Axis Growth Opportunities Fund is not a guaranteed or assured return scheme.
ii. Scheme Specific Risk Factors Risks associated with investments in Equity and Equity related securities
• Equity and equity related securities are volatile and prone to price fluctuations on a daily basis. The liquidity of investments made in the Scheme may be restricted by trading volumes and settlement periods. Settlement periods may be extended significantly by unforeseen circumstances. The inability of the Scheme to make intended securities purchases, due to settlement problems, could cause the Scheme to miss certain investment opportunities. Similarly, the inability to sell securities held in the Scheme portfolio would result at times, in potential losses to the Scheme, should there be a subsequent decline in the value of securities held in the Scheme portfolio. Also, the value of the Scheme investments may be affected by interest rates, currency exchange rates, changes in law/policies of the government, taxation laws and political, economic or other developments which may have an adverse bearing on individual Securities, a specific sector or all sectors.
• Investments in equity and equity related securities involve a degree of risk and investors should not invest in the equity Schemes unless they can afford to take the risk of losing their investment.
• Securities which are not quoted on the stock exchanges are inherently illiquid in nature and carry a larger liquidity risk in comparison with securities that are listed on the exchanges or offer other exit options to the investors, including put options.
Risks associated with investments in Fixed Income Securities Interest-Rate Risk: Fixed income securities such as government bonds, corporate bonds, and money market instruments and derivatives run price-risk or interest-rate risk. Generally, when interest rates rise, prices of existing fixed income securities fall and when interest rates drop, such prices increase. The extent of fall or rise in the prices depends upon the coupon and maturity of the security. It also depends upon the yield level at which the security is being traded. Re-investment Risk: Investments in fixed income securities carry re-investment risk as interest rates prevailing on the coupon payment or maturity dates may differ from the original coupon of the bond. Basis Risk: The underlying benchmark of a floating rate security or a swap might become less active or may cease to exist and thus may not be able to capture the exact interest rate movements, leading to loss of value of the portfolio. Spread Risk: In a floating rate security the coupon is expressed in terms of a spread or mark up over the benchmark rate. In the life of the security this spread may move adversely leading to loss in value of the portfolio. The yield of the underlying benchmark might not change, but the spread of the security over the underlying benchmark might increase leading to loss in value of the security.
Axis Growth Opportunities Fund 6
Liquidity Risk: The liquidity of a bond may change, depending on market conditions leading to changes in the liquidity premium attached to the price of the bond. At the time of selling the security, the security can become illiquid, leading to loss in value of the portfolio. Credit Risk: This is the risk associated with the issuer of a debenture/bond or a money market instrument defaulting on coupon payments or in paying back the principal amount on maturity. Even when there is no default, the price of a security may change with expected changes in the credit rating of the issuer. It is to be noted here that a Government Security is a sovereign security and is the safest. Corporate bonds carry a higher amount of credit risk than Government securities. Within corporate bonds also there are different levels of safety and a bond rated higher by a particular rating agency is safer than a bond rated lower by the same rating agency. Liquidity Risk on account of unlisted securities: The liquidity and valuation of the Scheme investments due to their holdings of unlisted securities may be affected if they have to be sold prior to their target date of divestment. The unlisted security can go down in value before the divestment date and selling of these securities before the divestment date can lead to losses in the portfolio. Settlement Risk: Fixed income securities run the risk of settlement which can adversely affect the ability of the fund house to swiftly execute trading strategies which can lead to adverse movements in NAV Risk associated with Securitized Debt The Scheme may invest in domestic securitized debt such as Asset Backed Securities (ABS) or Mortgage Backed Securities (MBS). ABS are securitized debts where the underlying assets are receivables arising from various loans including automobile loans, personal loans, loans against consumer durables, etc. MBS are securitized debts where the underlying assets are receivables arising from loans backed by mortgage of residential / commercial properties. At present in Indian market, following types of loans are securitized: 1. Auto Loans (cars / commercial vehicles /two wheelers) 2. Residential Mortgages or Housing Loans 3. Consumer Durable Loans 4. Personal Loans 5. Corporate Loans In terms of specific risks attached to securitization, each asset class would have different underlying risks. Residential Mortgages generally have lower default rates than other asset classes, but repossession becomes difficult. On the other hand, repossession and subsequent recovery of commercial vehicles and other auto assets is fairly easier and better compared to mortgages. Asset classes like personal loans, credit card receivables are unsecured and in an economic downturn may witness higher default. A corporate loan/receivable, depend upon the nature of the underlying security for the loan or the nature of the receivable and the risks correspondingly fluctuate. The rating agencies define margins, over collateralisation and guarantees to bring risk in line with similar AAA rated securities. The factors typically analyzed for any pool are as follows: a. Assets securitized and Size of the loan: This indicates the kind of assets financed with the
loan and the average ticket size of the loan. A very low ticket size might mean more costs in originating and servicing of the assets.
b. Diversification: Diversification across geographical boundaries and ticket sizes might result in lower delinquency
c. Loan to Value Ratio: Indicates how much % value of the asset is financed by borrower’s own equity. The lower this value the better it is. This suggests that where the borrowers own contribution of the asset cost is high; the chances of default are lower.
Axis Growth Opportunities Fund 7
d. Average seasoning of the pool: This indicates whether borrowers have already displayed repayment discipline. The higher the number, the more superior it is.
The other main risks pertaining to Securitised debt are as follows: Prepayment Risk: This arises when the borrower pays off the loan sooner than expected. When interest rates decline, borrowers tend to pay off high interest loans with money borrowed at a lower interest rate, which shortens the average maturity of ABS. However, there is some prepayment risk even if interest rates rise, such as when an owner pays off a mortgage when the house is sold or an auto loan is paid off when the car is sold. Reinvestment Risk: Since prepayment risk increases when interest rates decline, this also introduces reinvestment risk, which is the risk that the principal can only be reinvested at a lower rate.
Risks associated with investments in Derivatives • The Scheme may invest in derivative products in accordance with and to the extent
permitted under the Regulations and by RBI. Derivative products are specialized instruments that require investment techniques and risk analysis different from those associated with stocks and bonds. The use of a derivative requires an understanding not only of the underlying instrument but of the derivative itself. Trading in derivatives carries a high degree of risk although they are traded at a relatively small amount of margin which provides the possibility of great profit or loss in comparison with the principal investment amount. Thus, derivatives are highly leveraged instruments. Even a small price movement in the underlying security could have an impact on their value and consequently, on the NAV of the Units of the Scheme.
• The derivatives market in India is nascent and does not have the volumes that may be seen in other developed markets, which may result in volatility to the values.
• Investment in derivatives also requires the maintenance of adequate controls to monitor the transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and the ability to forecast price or interest rate movements correctly. Even a small price movement in the underlying security could have an impact on their value and consequently, on the NAV of the Units of the Scheme.
• The Scheme may face execution risk, whereby the rates seen on the screen may not be the rate at which the ultimate execution of the derivative transaction takes place.
• The Scheme may find it difficult or impossible to execute derivative transactions in certain circumstances. For example, when there are insufficient bids or suspension of trading due to price limit or circuit breakers, the Scheme may face a liquidity issue.
• The options buyer's risk is limited to the premium paid, while the risk of an options writer is unlimited. However the gains of an options writer are limited to the premiums earned.
• The exchange may impose restrictions on exercise of options and may also restrict the exercise of options at certain times in specified circumstances and this could impact the value of the portfolio.
• The writer of a put option bears the risk of loss if the value of the underlying asset declines below the exercise price. The writer of a call option bears a risk of loss if the value of the underlying asset increases above the exercise price, as per the extant Regulations.
• Investments in index futures face the same risk as the investments in a portfolio of shares representing an index. The extent of loss is the same as in the underlying stocks.
• The Scheme bears a risk that it may not be able to correctly forecast future market trends or the value of assets, indices or other financial or economic factors in establishing derivative positions for the Scheme.
• The risk of loss in trading futures contracts can be substantial, because of the low margin deposits required, the extremely high degree of leverage involved in futures pricing and the potential high volatility of the futures markets.
• There is the possibility that a loss may be sustained by the portfolio as a result of the failure of another party (usually referred to as the "counter party") to comply with the terms of the derivatives contract. The counter party may default on a transaction before settlement and therefore, the Scheme is compelled to negotiate with another counterparty at the then prevailing (possibly unfavourable) market price.
Axis Growth Opportunities Fund 8
• Derivatives also carry a market liquidity risk where the derivatives cannot be sold (unwound) at prices that reflect the underlying assets, rates and indices.
• Where derivatives are used for hedging, such use may involve a basis risk where the instrument used as a hedge does not match the movement in the instrument/underlying asset being hedged. The risk may be inter-related also e.g. interest rate movements can affect equity prices, which could influence specific issuer/industry assets.
• Other risks in using derivatives include the risk of mispricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly with underlying assets, rates and indices.
• Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor.
• Execution of investment strategies depends upon the ability of the fund manager(s) to identify such opportunities which may not be available at all times. Identification and execution of the strategies to be pursued by the fund manager(s) involve uncertainty and decision of fund manager(s) may not always be profitable. No assurance can be given that the fund manager(s) will be able to identify or execute such strategies.
• The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments.
The following are certain additional risks involved with use of fixed income derivatives: Interest rate risk: Derivatives carry the risk of adverse changes in the price due to change in interest rates. Liquidity risk: During the life of the derivative, the benchmark might become illiquid and might not be fully capturing the interest rate changes in the market, or the selling, unwinding prices might not reflect the underlying assets, rates and indices, leading to loss of value of the portfolio. Risks associated with Covered Call Strategy Writing call options are highly specialized activities and entail higher than ordinary investment risks. In such investment strategy, the profits from call option writing is capped at the option premium, however the downside depends upon the increase in value of the underlying equity shares. This downside risk is reduced by writing covered call options. The Scheme may write covered call option only in case it has adequate number of underlying equity shares as per regulatory requirement. This would lead to setting aside a portion of investment in underlying equity shares. If covered call options are sold to the maximum extent allowed by regulatory authority, the scheme may not be able to sell the underlying equity shares immediately if the view changes to sell and exit the stock. The covered call options need to be unwound before the stock positions can be liquidated. This may lead to a loss of opportunity, or can cause exit issues if the strike price at which the call option contracts have been written become illiquid. Hence, the scheme may not be able to sell the underlying equity shares, which can lead to temporary illiquidity of the underlying equity shares and result in loss of opportunity. The writing of covered call option would lead to loss of opportunity due to appreciation in value of the underlying equity shares. Hence, when the appreciation in equity share price is more than the option premium received the scheme would be at a loss. The total gross exposure related to option premium paid and received must not exceed the regulatory limits of the net assets of the scheme. This may restrict the ability of Scheme to buy any options. Risks associated with investing in foreign securities/ overseas investments/ offshore securities • Subject to necessary approvals and within the investment objectives of the Scheme, the
Scheme may invest in overseas markets which carry risks related to fluctuations in the
Axis Growth Opportunities Fund 9
foreign exchange rates, the nature of the securities market of the country, repatriation of capital due to exchange controls and political circumstances.
• Since the Scheme would invest only partially in foreign securities, there may not be readily available and widely accepted benchmarks to measure performance of such Scheme. To manage risks associated with foreign currency and interest rate exposure, the Fund may use derivatives for efficient portfolio management and hedging and portfolio rebalancing and in accordance with conditions as may be stipulated under the Regulations and by RBI from time to time.
• Investment in Foreign Securities involves a currency risk. To the extent that the assets of the Scheme will be invested in securities denominated in foreign currencies, the Indian Rupee equivalent of the net assets, distributions and income may be adversely affected by changes in the value of certain foreign currencies relative to the Indian Rupee. The repatriation of capital to India may also be hampered by changes in regulations concerning exchange controls or political circumstances as well as the application to it of other restrictions on investment.
Risks associated with Repo transactions in Corporate Bonds The Scheme may be exposed to counter party risk in case of repo lending transactions in the event of the counterparty failing to honour the repurchase agreement. However in repo transactions, the collateral may be sold and a loss is realized only if the sale price is less than the repo amount. The risk is further mitigated through over-collateralization (the value of the collateral being more than the repo amount). Risk associated with Investments in REITs and InvITs • Price-Risk or Interest-Rate Risk: REITs & InvITs run price-risk or interest-rate risk. Generally,
when interest rates rise, prices of existing securities fall and when interest rates drop, such prices increase. The extent of fall or rise in the prices is a function of the existing coupon, days to maturity and the increase or decrease in the level of interest rates.
• Credit Risk: In simple terms this risk means that the issuer of a debenture/ bond or a money market instrument may default on interest payment or even in paying back the principal amount on maturity. REITs & InvITs are likely to have volatile cash flows as the repayment dates would not necessarily be pre scheduled.
• Liquidity or Marketability Risk: This refers to the ease with which a security can be sold at or near to its valuation yield-to-maturity (YTM). The primary measure of liquidity risk is the spread between the bid price and the offer price quoted by a dealer. As these products are new to the market they are likely to be exposed to liquidity risk.
• Reinvestment Risk: Investments in REITs & InvITs may carry reinvestment risk as interest rates prevailing on the interest or maturity due dates may differ from the original coupon of the bond. Consequently, the proceeds may get invested at a lower rate.
• Risk of lower than expected distributions: The distributions by the REIT or InvIT will be based on the net cash flows available for distribution. The amount of cash available for distribution principally depends upon the amount of cash that the REIT/ InvITs receives as dividends or the interest and principal payments from portfolio assets.
The above are some of the common risks associated with investments in REITs & InvITs. There can be no assurance that investment objectives will be achieved, or that there will be no loss of capital. Investment results may vary substantially on a monthly, quarterly or annual basis. Risks associated with transaction in Units through stock exchange(s) In respect of transaction in Units of the Scheme through BSE and / or NSE, allotment and redemption of Units on any Business Day will depend upon the order processing / settlement by BSE and / or NSE and their respective clearing corporations on which the Fund has no control. Risk Factor associated with debt instruments having credit enhancement: The Scheme may invest in debt instruments having credit enhancement backed by equity shares/guarantees or other any assets as collateral. The profile of these issuers tend to be relatively weak and there may be a pledge of shares of a related party to enhance credit quality or guarantees provided or any other asset provided as security acceptable to lenders.
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Where equity shares are provided as collateral there is the risk of sharp price volatility of underlying securities which may lead to erosion in value of collateral which may affect the ability of the fund to enforce collateral and recover capital and interest obligations. Also there is a possibility of guarantor going insolvent which also can impact the recovery value of exposure. In case of credit enhanced structures backed by equity share the liquidity of the underlying shares may be low leading to a lower recovery and a higher impact cost of liquidation. In case of other assets provided recovery value and enforce ability of asset can also be a risk factor which can lower the recovery value. Risk associated with Short Selling & Securities Lending Securities Lending is lending of securities through an approved intermediary to a borrower under an agreement for a specified period with the condition that the borrower will return equivalent securities of the same type or class at the end of the specified period along with the corporate benefits accruing on the securities borrowed. There are risks inherent in securities lending, including the risk of failure of the other party, in this case the approved intermediary to comply with the terms of the agreement. Such failure can result in a possible loss of rights to the collateral, the inability of the approved intermediary to return the securities deposited by the lender and the possible loss of corporate benefits accruing thereon. Short-selling is the sale of shares or securities that the seller does not own at the time of trading. Instead, he borrows it from someone who already owns it. Later, the short seller buys back the stock/security he shorted and returns the stock/security to the lender to close out the loan. The inherent risks are Counterparty risk and liquidity risk of the stock/security being borrowed. The security being short sold might be illiquid or become illiquid and covering of the security might occur at a much higher price level than anticipated, leading to losses. B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME The Scheme shall have a minimum of 20 Investors and no single Investor shall account for more than 25% of the corpus of the Scheme.. . The aforesaid conditions should be complied with in each calendar quarter on an average basis. In case the Scheme does not have a minimum of 20 Investors on an ongoing basis for each calendar quarter, the provisions of Regulation 39(2)(c) of the SEBI (MF) Regulations would become applicable automatically without any reference from SEBI and accordingly the Scheme shall be wound up and the units would be redeemed at Applicable NAV. If there is a breach of the 25% limit by any Investor over the quarter, a rebalancing period of one month would be allowed and thereafter the Investor who is in breach of the rule shall be given 15 days’ notice to redeem his exposure over the 25% limit. Failure on the part of the said investor to redeem his exposure over the 25% limit within the aforesaid 15 days would lead to automatic Redemption by the Mutual Fund at the Applicable NAV on the 15th day of the notice period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in this regard. C. SPECIAL CONSIDERATIONS, if any • Prospective investors should study this Scheme Information Document and Statement of
Additional Information carefully in its entirety and should not construe the contents hereof as advise relating to legal, taxation, financial, investment or any other matters and are advised to consult their legal, tax, financial and other professional advisors to determine possible legal, tax, financial or other considerations of subscribing to or redeeming Units, before making a decision to invest/redeem/hold Units.
• The Scheme related documents i.e. SID/ KIM/ SAI or the units of the Fund are not registered in any jurisdiction including the United States of America nor in any provincial/ territorial jurisdiction in Canada. The distribution of the Scheme related document in certain jurisdictions may be restricted or subject to registration requirements and, accordingly, persons who come into possession of the Scheme related documents are required to inform themselves about, and to observe any such restrictions. No persons receiving a copy of this Scheme related documents or any accompanying application form in such jurisdiction may treat these Scheme related documents or such application form as constituting an invitation to them to subscribe for units, nor should they in any event use any
Axis Growth Opportunities Fund 11
such application form, unless in the relevant jurisdiction such an invitation could lawfully be made to them and such application form could lawfully be used without compliance with any registration or other legal requirements. Accordingly the Scheme related documents do not constitute an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation as per applicable law.
• The AMC, Trustee or the Mutual Fund have not authorized any person to issue any advertisement or to give any information or to make any representations, either oral or written, other than that contained in this Scheme Information Document or the Statement of Additional Information or as is provided by the AMC in connection with this offering. Prospective investors are advised not to rely upon any information or representation not incorporated in the Scheme Information Document or Statement of Additional Information or provided by the AMC as having been authorized by the Mutual Fund, the AMC or the Trustee.
• Redemption due to change in the fundamental attributes of the Scheme or due to any other reasons may entail tax consequences. The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for any such tax consequences that may arise due to such redemptions.
• The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for any of the tax consequences that may arise, in the event that the Scheme is wound up for the reasons and in the manner provided in Statement of Additional Information.
• The tax benefits described in this Scheme Information Document and Statement of Additional Information are as available under the present taxation laws and are available subject to relevant conditions. The information given is included only for general purpose and is based on advice received by the AMC regarding the law and practice currently in force in India as on the date of this Scheme Information Document and the Unit holders should be aware that the relevant fiscal rules or their interpretation may change. As is the case with any investment, there can be no guarantee that the tax position or the proposed tax position prevailing at the time of an investment in the Scheme will endure indefinitely. In view of the individual nature of tax consequences, each Unit holder is advised to consult his / her own professional tax advisor.
• The Mutual Fund may disclose details of the investor’s account and transactions thereunder to those intermediaries whose stamp appears on the application form or who have been designated as such by the investor. In addition, the Mutual Fund may disclose such details to the bankers, as may be necessary for the purpose of effecting payments to the investor. The Fund may also disclose such details to regulatory and statutory authorities/bodies as may be required or necessary.
• In case the AMC or its Sponsor or its Shareholders or their affiliates/associates or group companies make substantial investment, either directly or indirectly in the Scheme redemption of Units by these entities may have an adverse impact on the performance of the Scheme. This may also affect the ability of the other Unit holders to redeem their Units.
• As the liquidity of the Scheme investments may sometimes be restricted by trading volumes and settlement periods, the time taken by the Fund for Redemption of Units may be significant in the event of an inordinately large number of Redemption Requests or of a restructuring of the Scheme portfolio. In view of this, the AMC / Trustee has the right to limit redemptions under certain circumstances - please refer to the paragraph “Suspension/Restriction on redemption of units of the Scheme”.
• Pursuant tothe provisions of Prevention of Money Laundering Act, 2002, if after due diligence, the AMC believes that any transaction is suspicious in nature as regards money laundering, on failure to provide required documentation, information, etc. by the Unit holder the AMC shall have absolute discretion to report such suspicious transactions to FIU-IND and / or to freeze the folios of the investor(s), reject any application(s) / allotment of Units.
D. DEFINITIONS
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"AMC" / "Asset Management Company" / "Investment Manager"
Axis Asset Management Company Ltd., incorporated under the provisions of the Companies Act, 1956 and approved by Securities and Exchange Board of India to act as the Asset Management Company for the scheme(s) of Axis Mutual Fund.
"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 time stamped.
“Book Closure” The time during which the Asset Management Company would temporarily suspend Sale, redemption and Switching of Units.
“Business Day” A day other than: (i) Saturday and Sunday; (ii) A day on which the banks in Mumbai and/or RBI are closed for
business /clearing; (iii) A day on which the National Stock Exchange of India Ltd. and / or
the Stock Exchange, Mumbai are closed; (iv) A day which is a public and /or bank Holiday at an Investor Service
Centre/Official Point of Acceptance where the application is received;
(v) A day on which Sale / Redemption / Switching of Units is suspended by the AMC;
(vi) A day on which normal business cannot be transacted due to storms, floods, bandhs, strikes or such other events as the AMC may specify from time to time.
The AMC reserves the right to declare any day as a Business Day or otherwise at any or all Investor Service Centres/Official Points of Acceptance.
"Business Hours" Presently 9.30 a.m. to 5.30 p.m. on any Business Day or such other time as may be applicable from time to time.
"Custodian" A person who has been granted a certificate of registration to carry on the business of custodian of securities under the Securities and Exchange Board of India (Custodian of Securities) Regulations 1996, which for the time being is Deutsche Bank AG.
"Depository" Depository as defined in the Depositories Act, 1996 (22 of 1996). "Derivative" Derivative includes (i) a security derived from a debt instrument, share,
loan whether secured or unsecured, risk instrument or contract for differences or any other form of security; (ii) a contract which derives its value from the prices, or index of prices, or underlying securities.
"Dividend" Income distributed by the Mutual Fund on the Units. "Equity Related Instruments"
Includes convertible bonds and debentures, convertible preference shares, warrants carrying the right to obtain equity shares, equity derivatives and any other like instrument.
"FII" Foreign Institutional Investor, registered with SEBI under the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995, as amended from time to time.
“Foreign Portfolio Investor” / “FPI”
A person who satisfies the eligibility criteria prescribed under regulation 4 of Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014 and has been registered under Chapter II of these regulations, which shall be deemed to be an intermediary in terms of the provisions of the Act. It is to be noted that any foreign institutional investor or qualified foreign investor who holds a valid certificate of registration shall be deemed to be a foreign portfolio investor till the expiry of the block of three years for which fees have been paid as per the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995.
"Floating Rate Floating rate debt instruments are debt securities issued by Central and
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Debt Instruments" / or State Government, corporates or PSUs with interest rates that are reset periodically. The periodicity of the interest reset could be daily, monthly, quarterly, half-yearly, annually or any other periodicity that may be mutually agreed with the issuer and the Fund. The interest on the instruments could also be in the nature of fixed basis points over the benchmark gilt yields.
“Foreign Securities”
ADRs / GDRs/ equity / debt securities of overseas companies listed on the recognized stock exchanges overseas or other securities as may be specified and permitted by SEBI and/or RBI from time to time.
"Gilts" / "Government Securities"
Securities created and issued by the Central Government and/or a State Government (including Treasury Bills) or Government Securities as defined in the Public Debt Act, 1944, as amended or re-enacted from time to time.
“GOI” Government of India “Holiday” Holiday means the day(s) on which the banks (including the Reserve
Bank of India) are closed for business or clearing in Mumbai or their functioning is affected due to a strike / bandh call made at any part of the country or due to any other reason.
"Investment Management Agreement"
The agreement dated June 27, 2009 entered into between Axis Mutual Fund Trustee Ltd. and Axis Asset Management Company Ltd., as amended from time to time.
“Infrastructure Investment Trust” / “InvIT”
InvIT shall have the meaning assigned in clause (za) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014.
"Investor Service Centres" / "ISCs"
Offices of Axis Asset Management Company Ltd. or such other centres / offices as may be designated by the AMC from time to time.
“Large Cap Stocks”
1st to 100th company in terms of full market capitalisation. The AMC would adopt the list of stocks prepared by AMFI in accordance with methodology prescribed by SEBI (or as per any other methodology as may be prescribed by SEBI from time to time). The list of Large Cap companies would be updated every six months based on data as on end of June and December of each year or as may be prescribed by SEBI. The data will be updated by AMC on being made available by AMFI. Subsequent to any updation in the list, the portfolios will be rebalanced (if required), within a period of one month.
"Load" In the case of Redemption / Switch out of a Unit, the sum of money deducted from the Applicable NAV on the Redemption / Switch out (Exit Load) and in the case of Sale / Switch in of a Unit, a sum of money to be paid by the prospective investor on the Sale / Switch in of a Unit (Entry Load) in addition to the Applicable NAV. Presently, entry load cannot be charged by mutual fund schemes.
“Mid Cap Stocks” 101st - 250th company in terms of full market capitalization. The AMC would adopt the list of stocks prepared by AMFI in accordance with methodology prescribed by SEBI (or as per any other methodology as may be prescribed by SEBI from time to time). The list of Mid Cap companies would be updated every six months based on data as on end of June and December of each year or as may be prescribed by SEBI. The data will be updated by AMC on being made available by AMFI.
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Subsequent to any updation in the list, the portfolios will be rebalanced (if required), within a period of one month.
"Money Market Instruments"
Includes commercial papers, commercial bills, treasury bills, Government securities having an unexpired maturity upto one year, call or notice money, certificate of deposit, usance bills and any other like instruments as specified by the Reserve Bank of India from time to time.
"Mutual Fund" / "the Fund"
Axis Mutual Fund, a trust set up under the provisions of the Indian Trusts Act, 1882.
"Net Asset Value" / "NAV"
Net Asset Value per Unit of the Scheme, calculated in the manner described in this Scheme Information Document or as may be prescribed by the SEBI (MF) Regulations from time to time.
"NRI" A Non-Resident Indian or a Person of Indian Origin residing outside India. "Official Points of Acceptance"
Places, as specified by AMC from time to time where application for Subscription / Redemption / Switch will be accepted on ongoing basis.
"Person of Indian Origin"
A citizen of any country other than Bangladesh or Pakistan, if (a) he at any time held an Indian passport; or (b) he or either of his parents or any of his grandparents was a citizen of India by virtue of Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian citizen or person referred to in sub-clause (a) or (b).
"Rating" Rating means an opinion regarding securities, expressed in the form of standard symbols or in any other standardized manner, assigned by a credit rating agency and used by the issuer of such securities, to comply with any requirement of the SEBI (Credit Rating Agencies) Regulations, 1999.
"RBI" Reserve Bank of India, established under the Reserve Bank of India Act, 1934, (2 of 1934)
“Real Estate Investment Trust” / “REIT”
REIT shall have the meaning assigned in clause (zm) of sub-regulation 1 of regulation 2 of the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014.
"Registrar and Transfer Agent" / “Registrar”
KFin Technologies Pvt. Ltd., Hyderabad, currently acting as registrar to the Scheme, or any other Registrar appointed by the AMC from time to time.
"Redemption” / “Repurchase"
Redemption of Units of the Scheme as permitted.
“Regulatory Agency”
GOI, SEBI, RBI or any other authority or agency entitled to issue or give any directions, instructions or guidelines to the Mutual Fund
“Repo” Sale/Purchase of Securities with simultaneous agreement to repurchase / resell them at a later date.
"Statement of Additional Information" / "SAI"
The document issued by Axis Mutual Fund containing details of Axis Mutual Fund, its constitution, and certain tax, legal and general information. SAI is legally a part of the Scheme Information Document.
"Sale” / “Subscription"
Sale or allotment of Units to the Unit holder upon subscription by the Investor / applicant under the Scheme.
"Scheme" Axis Growth Opportunities Fund “Scheme Information Document”
This document issued by Axis Mutual Fund, offering for Subscription of Units of the Scheme (including Options thereunder)
"SEBI" Securities and Exchange Board of India, established under the Securities and Exchange Board of India Act, 1992.
"SEBI (MF) Regulations" / "Regulations"
Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended from time to time.
"Short Selling" Short selling means selling a stock which the seller does not own at the time of trade.
"Sponsor" Axis Bank Ltd. "Switch" Redemption of a Unit in any Scheme (including the Plans / options
therein) of the Mutual Fund against purchase of a Unit in another
Axis Growth Opportunities Fund 15
Scheme (including the Plans /options therein) of the Mutual Fund, subject to completion of Lock-in Period, if any.
"Stock Lending" Lending of securities to another person or entity for a fixed period of time, at a negotiated compensation in order to enhance returns of the portfolio.
“Systematic Investment Plan”/ “SIP”
A plan enabling investors to save and invest in the Scheme on a periodic basis submitting postdated cheques / payment instructions.
“Systematic Transfer Plan” / “STP”
Facility given to the Unit holders to transfer sums on periodic basis from one scheme to another schemes launched by the Mutual Fund from time to time by giving a single instruction.
“Systematic Withdrawal Plan” / “SWP”
Facility given to the Unit holders to withdraw a specified sum of money monthly/quarterly/half yearly/annually from his investment in the Scheme.
“Dividend Sweep option” / “DSO”
Facility given to the Unit holders to automatically invest the dividend by eligible source scheme into eligible target scheme of the Mutual Fund.
“Tri Party Repos” Tri-party repo means a repo contract where a third entity (apart from the borrower and lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction.
"Trust Deed" The Trust Deed dated June 27, 2009 made by and between Axis Bank Ltd. and Axis Mutual Fund Trustee Ltd. thereby establishing an irrevocable trust, called Axis Mutual Fund.
“Trustee” / “Trustee Company”
Axis Mutual Fund Trustee Ltd., incorporated under the provisions of the Companies Act, 1956 and approved by SEBI to act as the trustee to the Scheme of the Mutual Fund.
"Unit" The interest of the Unit holder which consists of each Unit representing one undivided share in the assets of the Scheme.
"Unit holder" / "Investor"
A person holding Units in Axis Growth Opportunities Fund.
INTERPRETATION For all purposes of this Scheme Information Document, except as otherwise expressly provided or unless the context otherwise requires: • all references to the masculine shall include the feminine and all references, to the singular
shall include the plural and vice-versa. • all references to "dollars" or "$" refer to United States Dollars and "Rs" refer to Indian Rupees.
A "crore" means "ten million" and a "lakh" means a "hundred thousand". • all references to timings relate to Indian Standard Time (IST). • References to a day are to a calendar day including a non-Business Day.
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E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY It is confirmed that: (i) The Scheme Information Document forwarded to SEBI is in accordance with the SEBI
(Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time.
(ii) All legal requirements connected with the launching of the Scheme as also the guidelines, instructions, etc., issued by the Government and any other competent authority in this behalf, have been duly complied with.
(iii) The disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the Scheme.
(iv) The intermediaries named in the Scheme Information Document and Statement of Additional Information are registered with SEBI and their registration is valid, as on date.
Place: Mumbai Signed : Sd/- Date: August 14, 2020 Name : Darshan Kapadia
Designation : Compliance Officer
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II. INFORMATION ABOUT THE SCHEME A. TYPE OF THE SCHEME An Open-ended Equity Scheme investing in both large and mid cap stocks. B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? To generate long term capital appreciation by investing in a diversified portfolio of Equity & Equity Related Instruments both in India as well as overseas. However, there can be no assurance that the investment objective of the Scheme will be achieved. C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? Under normal circumstances, the asset allocation pattern will be:
Instruments Indicative allocations
(% of total assets) Risk Profile
Minimum Maximum High/ Medium/Low
Equity & Equity Related Instruments of Large Cap Stocks #^
35 65 High
Equity & Equity Related Instruments of Mid Cap Stocks #^
35 65 High
Other Equity and Equity related instruments 0 30 High Debt and Money Market Instruments*# 0 30 Low to
Medium Units issued by REITs & InvITs 0 10 Medium to
High The cumulative gross exposure through equity, debt, units issued by REITs & InvITs and derivative positions shall not exceed 100% of the net assets of the Scheme. The Scheme may investment in foreign securities including ADRs / GDRs / other securities subject to SEBI (MF) Regulations. Such Investment shall not exceed 35% of the net assets of the Scheme. ^ Includes Foreign Equity & Equity related instruments up to 35% of the net assets of the fund. The market capitalization classification viz large cap/mid cap/small cap of such instruments will be determined based on the range of market capitalization of list of stocks provided by AMFI, in accordance with methodology prescribed by SEBI. # including derivatives instruments to the extent of 70% of the Net Assets as permitted by the Regulations from time to time. The Scheme may use derivatives for such purposes as maybe permitted by the Regulations, including for the purpose of hedging and portfolio balancing, based on the opportunities available and subject to guidelines issued by SEBI from time to time. The Scheme may also use fixed income derivative instruments subject to the guidelines as maybe issued by SEBI and RBI and for such purposes as maybe permitted from time to time. *Investment in Securitized debt (excluding foreign securitized debt), if undertaken, would not exceed 30% of the net assets of the Scheme. The Scheme shall not invest in foreign securitized debt and Credit default Swaps The Scheme may undertake repo transactions in corporate debt securities in accordance with the directions issued by RBI and SEBI from time to time. Such investment shall be made subject to the guidelines which may be prescribed by the Board of Directors of the Asset Management Company and Trustee Company.
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Pending deployment of the funds in securities in terms of investment objective of the Scheme, the AMC may park the funds of the Scheme in short term deposits of the Scheduled Commercial Banks, subject to the guidelines issued by SEBI from time to time. The Scheme retains the flexibility to invest across all the securities in the equity, debt and Money Markets Instruments and mutual fund units. The portfolio may hold cash depending on the market condition. The Scheme shall adhere to the following limits should it engage in Stock Lending. 1. Not more than 25% of the net assets of the Scheme can generally be deployed in Stock
Lending. 2. Not more than 5% of the net assets of the Scheme can generally be deployed in Stock
Lending to any single counter party (as may be applicable). The Scheme may engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI. Subject to the Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. These proportions can vary substantially depending upon the perception of the fund manager; the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short term and for defensive considerations only. In the event of deviations, the fund manager will endeavour to carry out rebalancing within 30 Business Days. Where the portfolio is not rebalanced within 30 Business Days, justification for the same shall be placed before the Investment Review Committee and reasons for the same shall be recorded in writing. The Investment Review committee shall then decide on the course of action. However, at all times the portfolio will adhere to the overall investment objectives of the Scheme. Axis Growth Opportunities Fund, An Open-ended Equity Scheme investing in both large cap and mid cap stocks is a new scheme offered by Axis Mutual Fund and is not a minor modification of any other existing scheme/product of Axis Mutual Fund. Differentiation is as follows:
Axis Growth Opportunities Fund 19
Differentiation with existing open ended equity schemes of Axis Mutual Fund are as follows: Data as on July 31, 2020 (in INR crores)
Name of the existing
scheme
Asset Allocation Pattern (Under normal circumstances)
Primary Investment Objective & Investment Strategy
Differentiation AUM No. of Folios
Axis Long Term Equity Fund
Instruments
Indicative Allocation (% of net assets)
Risk Profile
Minimum
Maximum
Low/ Medium/ High
Equity and equity- related Securities
80% - 100% High
Debt and money market instruments
0% - 20% Low to Medium
Primary Investment Objective: The investment objective of the Scheme is to generate income and long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related Securities. However, there can be no assurance that the investment objective of the Scheme will be achieved.
Investment Strategy: The Scheme will invest in a diversified portfolio of strong growth companies with sustainable business models. Though the benchmark is S&P BSE-200, the investments will not be limited to the companies constituting the benchmark. The portfolios will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a fundamentals based research process to analyse the appreciation potential of each stock in its universe. The universe of stocks is carefully selected to include companies having robust business models and enjoying sustainable competitive
An open ended equity linked saving scheme with a statutory lock in of 3 year and tax benefit
21,059.97 20,66,228
Axis Growth Opportunities Fund 20
advantages as compared to their competitors. The Fund will have the flexibility to invest across the market capitalization spectrum. The Scheme will endeavour to remain fully invested in equity and equity-related instruments at all times.
Axis Midcap Fund
Instruments
Indicative allocations (% of total
assets)
Risk Profile
Minimum
Maximum
High/Medium/ Low
Equity and Equity Related Instruments of Mid-cap companies
65%
100% High
Equity and Equity Related Instruments of non Mid-cap Companies
0% 35%
High
Debt and Money Market Instruments
0% 35%
Low to Medium
Units issued by REITs & InvITs
0 10 Medium to High
Primary Investment Objective: To achieve long term capital appreciation by investing predominantly in equity & equity related instruments of Mid Cap companies. Investment Strategy: Axis Midcap Fund endeavors to generate capital appreciation through an actively managed diversified portfolio of primarily larger mid-cap companies. The portfolio will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a ""Fair value"" based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include companies having a robust business models and enjoying sustainable competitive advantages as compared to their
An open ended equity scheme predominantly investing in Mid Cap companies
5,869.04 4,62,843
Axis Growth Opportunities Fund 21
competitors. The Fund will, mainly, invest in mid-cap companies. Mid-cap companies, as they are in a stage of growth, may be valued higher than their fair value. However, the Fund intends to identify such strong growth companies & take advantage of their future appreciation. The Fund by utilising a holistic risk management strategy will endeavour to manage risks associated with investing in equity markets. The Fund has identified the following risks and designed risk management strategies, which are embedded in the investment process to manage these risks- i. Quality Risk - Risk of investing in unsustainable / weak companies. ii. Price Risk - Risk of overpaying for a company iii. Liquidity Risk - High Impact cost of entry and exit iv. Volatility Risk - Volatility in price due to company or portfolio specific factors v. Event Risk - Price risk due to a company / sector specific or market event
Axis Focused 25 Fund
Instruments
Indicative Allocation (% of net assets)
Risk Profile
Minimum Maximum Low/
Medium/
Primary Investment Objective: To generate long term capital appreciation by investing in a concentrated portfolio of equity & equity related instruments of up to 25 companies.
An Open-ended Equity Scheme investing in maximum 25 stocks investing in large cap, mid
11,042.41 8,29,585
Axis Growth Opportunities Fund 22
High Equity and Equity Related Instruments (of not exceeding 25 companies)
65 100 High
Debt and Money Market Instruments
0 35 Low to Medium
Units issued by REITs & InvITs
0 10 Medium to High
Investment Strategy: The scheme aims to generate long term capital appreciation by investing in a concentrated portfolio of equity & equity related instruments of up to 25 companies. In order to have a concentrated portfolio, the scheme will follow a bottom up stock selection approach. The portfolio will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a ""Fair value"" based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include companies having a robust business models and enjoying sustainable competitive advantages as compared to their competitors.
cap and small cap companies
Axis Bluechip Fund
Instruments Indicative allocations (% of total
assets)
Risk Profile
Primary Investment Objective: To achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities of Large Cap
An open-ended equity scheme predominantly investing in large cap stocks
15,963.00 15,10,841
Axis Growth Opportunities Fund 23
Minimum Maximum
High/ Medium/
Low Equity and Equity Related Instruments of Large Cap companies
80 100 High
Equity and Equity Related Instruments of other companies
0 20 High
Debt and Money Market Instruments
0 20 Low to Medium
Units issued by REITs & InvITs
0 10 Medium to High
companies including derivatives. However, there can be no assurance that the investment objective of the Scheme will be achieved. Investment Strategy: The Scheme will invest predominantly in Equity and Equity Related Instruments of Large Cap companies with strong growth and sustainable business models, whilst managing risk. The portfolios will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a “Fair value” based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include companies having robust business models and enjoying sustainable competitive advantages as compared to their competitors.
Axis Multicap Fund
Instruments Normal
allocations (% of total assets)
Risk Profile
Minimum
Maximum
High/ Medium/ Low
Primary Investment Objective: To generate long term capital appreciation by investing in a diversified portfolio of equity and equity related instruments across market capitalization. However, there is no assurance or guarantee that the investment objective of
An open ended equity scheme investing across large cap, mid cap, small cap stocks
6,276.25 4,75,921