Rajen Gala

 Who Can Invest in Mutual Fund And What Are The Documents Required ? Documents Individual Company Societies Partnership POA Trusts NRIs Flls PIO Minor HUF Application Form  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔ Redemption Bank Proof  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔ Payment Proof  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔ Resolution / Authorisation to invest  ✔  ✔  ✔  ✔  ✔ List of authorized signatories with specimen signatures  ✔  ✔  ✔  ✔ Memorandum & Articles Of Association  ✔ Trust Deed  ✔ Byelaws  ✔ Partnership Deed  ✔ Overseas Audtior Certificate  ✔ Notarized POA  ✔ Proof Of Address  ✔  ✔  ✔ Copy of Pan Card/ PEKRN  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔ Kyc Compliance  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔  ✔ PIO Card  ✔  ✔  ✔ Foreign inward remittance Certificate  ✔  ✔  ✔  ✔ UBO  ✔  ✔  ✔  ✔  ✔  ✔ NPO  ✔  ✔ Huf Deed  ✔

Systematic Investment Plan Systematic investment Plan (SIP) is an investment route wherein one can invest a fixed amount in a Mutual Fund scheme at regular intervals – say such as once a month, once a quarter, weekly, fortnightly, or daily basis instead of making a lump-sum investment. Ways in which SIP can be requested. SIP with new folio: This is normal SIP with investment application, first investment cheque and SIP will start from subsequent months. SIP with lumpsum: In this transaction, investment cheque of lumpsum amount and SIP amount can be different. First transaction will be shown as purchase and subsequent transactions will be SIP. SIP with zero balance folio: In this transaction, there will not be any investment cheque. Instead, cancel cheque copy or passbook copy, or any bank proof will be provided. SIP will start from opted SIP start date post SIP mandate registration, and units will be allotted accordingly. SIP in existing folio: This can be with cheque or without cheque, it can be in same scheme or in different scheme, in same ARN or in different ARN. However, SIP in existing scheme does not require investment cheque. Types of SIPs SIP can be done through different modes: SIP with cheque for initial purchase (lump-sum) SIP with NACH (valid for specific scheme for which NACH was created, it is specific amount for which NACH was registered, cannot be used for any other transaction) SIP with OTM (OTM is valid for all schemes, can be used until limit is reached, UMRN (Unique Mandate Reference Number) can be used for any other transactions and is at folio level) SIP with E-NACH through MF Utility or RTAs applications (payment services that allow those with bank accounts to automate their recurring payments easily) I-SIP through our MF Utility or RTAs applications (internet-based SIP is a completely paperless way of setting up an SIP) Any date is allowed for monthly SIP. However, 29th, 30th,31st cannot be opted as SIP date for monthly SIP. One time bank mandate OTM can be used for multiple SIPs under a folio, it can also use for lumpsum purchase. Limit is applicable for per transaction and not per folio. KOTM (Kfintech OTM) can be used for SIP and purchase as well. This OTM is registered at RTA level and can be used for all schemes at PAN level. One folio can have one OTM only. Existing OTM will be replaced by new OTM in case the amount of new OTM is higher than existing one or the bank account is different of the new OTM submitted along with SIP. OTM gets registered at folio level. Investor can have different OTM in different folio/s. For example, SIP is of Rs.10,000/- is active in one folio and another SIP along with mandate of Rs.5,000/- is submitted, then old mandate of Rs.10,000/- will be retained and SIP will be registered with existing OTM. In case the amount of new OTM is higher or there is change of bank or bank account then the existing OTM will get replaced with new one. If investor wants to do additional SIP in existing folio using existing mandate, then UMRN must he mentioned on SIP form. else, transaction will be subject to rejection. Signature in the OTM must be as per mode of holding in investor\’s bank. Any kind of alteration/overwriting on the OTM is not allowed. Multi goal SIP Can invest any two or three schemes. SIP Top up is allowed in any of the scheme. SIP start and end date will be same for all schemes. Can be done through offline mode only. Existing OTM can be used and if not, then new OTM form is mandatory. OTM limit must be the total of all the schemes or more. Top-up Systematic Investment Plan (SIP) SIP Top-up is a facility wherein an investor who wishes to enrol for SIP, has an option to increase the amount of the SIP instalment by a fixed amount at pre-defined intervals i.e., half yearly and yearly. The SIP Top-up amount should be filled in the SIP Enrolment Form itself. The SIP Top-up amount should be in multiples of Rs.500/- only. The SIP Top-up option is only available for monthly SIP. In case the top-up frequency is not indicated under Monthly SIP, it will be considered as half yearly interval. SIP Top-up Facility is not available under Micro SIPs. SIP Pause Investor can Pause SIP at any time, by filling in the SIP Pause form. The facility can be availed by investor only twice during the entire tenure of Monthly SIP facility. To avail the facility a valid application should be submitted to AMC/Kfintech at least 10 calendar days prior to the next monthly SIP instalment date (i.e., excluding the request date and the next SIP instalment date). Investor cannot cancel the facility once requested. The facility is only available under monthly SIP frequency for investors with instalment amounts equal to or greater than 1,000/-. The facility can only be availed by investors who have completed 6 valid SIP instalments. The SIP shall restart automatically from the immediate next eligible instalment after the completion of specified pause period. This facility is not available for the SIPs sourced/registered through MF Utilities India Pvt. (\”MFUI\”). Further, this facility is also not available for SIP registered by investors as Standing Instructions with their respective Banks. This facility is not available for investors availing Multi-Goal SIP, Combo SIP, and Retirement Plan. In case of multiple SIPs registered in a scheme, the facility will be made applicable only for those SIP instalments whose SIP date, frequency, amount, and Plan is specified clearly in the form. If requisite information is not clearly filled, all SIPs in the scheme will be accepted for pause. SIP cancellation. Investor can request cancellation of an ongoing SIP by submitting SIP cancellation form. The cancellation of the facility should be submitted 30 days prior to the next SIP instalment date. Do\’s & Don\’ts Investors who have already submitted

Switching of funds means moving the investment from one scheme to another scheme. Investor can switch between two different schemes, plans, and option i.e., money is taken out of scheme / plan / option A (redemption) and invested in scheme / plan / option B (purchase). This way a switch, results in two transactions a purchase & redemption. Types of switches Full switch Partial switch Minimum amount For switch in scheme, minimum amount of investment of the in scheme is to be    considered. This is applicable if the investor is investing for the first time in the switch in scheme. TATS and Exit Load Switch Type TAT Transaction Exit load Growth to IDCW- Same Scheme Same Day Switch No exit load IDCW payout to IDCW reinvestment- Same scheme Same Day NCT No exit load One scheme to another Redemption TAT Switch Exit load applicable as per scheme norms Direct to Regular- same scheme Same Day Switch  No exit load Regular to Direct- same scheme Same Day Switch Exit load applicable as per scheme norms IDCW payout to IDCW sweep- Same scheme Same Day NCT No exit load   Cutoffs and NAV Inter scheme Switch Transaction Transaction Type Transaction received before cut-off timing Funds moved to target scheme before cut-off timing Applicable NAV Switch out Yes As per the payout TAT of switch out scheme Same Business Day for switch out transaction. For liquid and overnight closing NAV of the day immediately preceding the next business day shall be applicable Switch in N/A Yes Inter scheme (Scheme A to Scheme B) Payout TAT of out scheme. Intra scheme (Growth to IDCW)- Same Business Day Dos and Don’ts Scheme minimum amount criteria to be fulfilled for both in and out scheme. Check cutoff time before submitting request.

Redemption is a process wherein an investor sells the units back to the mutual fund. Types of redemption: Full redemption Partial redemption Redemption can be submitted along with change of bank; however, the payout will be processed with cooling period of 10 days. In case investors confirms the redemption has been submitted with change of bank by email or at call centre, we can release the payout as per the TAT (Turnaround Time) or whenever the confirmation is received. Redemption payments can be processed through following modes: RTGS NEFT Physical warrants (Cheques/Pay order) Cutoff & payout TAT All schemes have cut-off of 3.00 pm of any business days. Redemption- Equity funds Transaction Banks NAV Payout Before cutoff Holiday Same day As per TAT Before cutoff No Holiday Same day As per TAT   Redemption- Debt funds Transaction Banks NAV Payout Before cutoff Holiday Next business day As per TAT Before cutoff No Holiday Same day As per TAT**   **For liquid and Overnight funds: Redemptions received on a day followed by non-business day, the closing NAV of the day immediately preceding the next Business Day is applied. Example, for redemptions reported on Friday, NAV of Sunday is applied. In case Monday is also a holiday, then NAV of Monday will be applicable for the transaction and payout will be done on Tuesday. Payout TAT: Scheme category Payout TAT (business days) Debt Fund T+1 Liquid Fund T+1 Equity Fund T+2 Fund of Funds (Domestic – Bharat Bond FOFs) T+2 Fund of Funds investing overseas T+5 Dos and don\’ts Ensure folio number to be mentioned correctly. Check scheme name and cutoff time before submission of request. Signature should match with signature of initial purchase application. Check for applicable exit load if any. Grandfathering effect Applicable with effect from 31st January 2018 only for equity shares and equity oriented mutual funds. Purchase and sale before 31/01/2018: Exempt under Sec 10(38). Purchase before 31/01/2018 and Sale after 31/01/2018 but before 01/04/2018: Exempt under Sec 10(38). Purchase before 31/01/2018 but sale on or after 01/04/2018: LTCG taxable on gains accrued before 31/01/2018. Purchase after 31/01/2018 and Sale on or after 01/04/2018: LTCG taxable.  

Types of purchase: Lumpsum: Investing lumpsum in mutual fund, it means investing a single, bulk amount into a one-time mutual fund investment. This is as opposed to spreading it out over time, like in SIP (Systematic Investment Plans) Additional purchase: It is simply a way to which you can add funds in your current mutual fund investment. Do’s and Don\’ts: Offline: Investment cheque: Investment amount should be from the bank account where the first holder in the folio is the one of the account holders at bank. Third party investments are not allowed. Cheque must be a CTS cheque. Non-CTS cheque will not be allowed. Account holder’s name must be in the bank account proof to validate third party investment. The date on cheque should not he older than three months or not later than application date. A cheque of post office is allowed provided it has all the necessary details like IFSC, MICR, account number, CTS etc. Investors should avoid any spelling error while issuing the investment cheque. In case of any spelling error, the bank will decide on the clearance of the cheque. There should not be any correction or over writing on cheque. NEFT/RTGS/Transfer letter: A copy of RTGS/NEFT/Transfer instruction issued to the bank should accompany the investment application form. In case of online UTR/NEFT/Transfer either the mail received from bank or UTR slip or anything which represents debit line and UTR details can be submitted with the investment application form. In such case, cheque copy/bank statement needs to be attached if payment bank is not same as payout bank. Online: Investors can invest via NEFT/RTGS and mention UTR while making payment for online transaction. Investors can make payment only through a registered bank account. Bank accounts are validated for third party check through penny drop testing mechanism. Demat transaction Details on application form must match with the depository participant (DP) details, else request for units in demat will be rejected, and units will be allotted in physical mode. No NCT or any other request except additional purchase to be accepted for DEMAT folio. For additional purchase under the same folio investor will need to submit Client Master List (CML) copy with every additional purchase request. Investors residing in US (NRIs, PIDs) For resident from USA, investor needs to be present in India at the time of investment and investment should be in physical mode. Immigration stamp of arrival is mandatory since it confirms arrival in the country, and it should not be more than 45 days from date of investment. In case the arrival date is more than 45 days and investor are still in India, an in-person verification (IPV) is required from AMC CXO (Chief Experience Officer). The IPV must be on the AMC prescribed declaration form signed by investor and AMC CXO. Investment through Power of Attorney is not allowed. Minor Minor can invest through a natural/legal/court appointed guardian. Investment amount can be from minors account or from the account of guardian registered in the folio. Guardian representing in the folio and   in bank account through   which investment/redemption is provided must be same. e.g., in folio, guardian is mother and in bank guardian is father: same is not allowed. Status for investment, will be as per guardian\’s status. E.g., guardian is an NRI as per KYC, the status will be captured as Minor- NRI. Minor PAN is not mandatory; however, guardian must mandatorily provide PAN and should be KYC complied. Investment bank can be either of minor OR guardian represented by minor OR guardian only. However, redemption payout bank must be of the minor. Change of guardian is allowed. Grandparents are not allowed to invest on behalf of minors. Cutoff Grid for transaction and NAV applicability  NAV applicability for other than Liquid and Overnight fund Transaction Funds NAV applicability Before cutoff Before cutoff Same day Before cutoff After cutoff Next Business Day After cutoff Before cutoff Next Business Day NAV applicability for Liquid and Overnight fund Transaction Funds NAV applicability Before cutoff Before cutoff Previous day Before cutoff After cutoff Same Business Day. In case the transaction day is followed by non-business day, then NAV of day preceding the next business day will he applicable After cutoff Before cutoff Day on which transaction is reported. In case the transaction day is followed by non-business day, then NAV of day preceding the next business day will be applicable Liquid and Overnight – Purchase Valid Applications received at the designated  official  point of acceptance  up to cutoff time of 1:30 m. and the entire subscription  amount credited to bank account of respective  Liquid scheme before the cut-off time of 1.30 p.m. i.e., the subscription  amount shall be available for utilisation  before cut-off time – The closing NAV of the day immediately preceding the day of receipt of the application shall be applicable IT-1 day NAV) Valid Applications received at the designated official point of acceptance post cut-off time of 1:30 m. and the entire subscription amount credited to the bank account of respective Liquid scheme on the day of receipt of application. The closing NAV of the day immediately preceding the next business day shall be applicable IT Day NAV} Irrespective of the time of receipt of valid application at the designated official point of acceptance and the entire subscription amount is not credited to respective Liquid scheme account. i.e., the subscription amount is not available for utilisation before the cut-off time – The closing NAV of the day immediately preceding the day on which the funds are available for utilization shall be applicable. Purchase non liquid fund. Where the application Is received up to 3.00 p.m. — the closing NAV of the day immediately preceding the next Business Day. Where the application is received after 3.00 p.m.— the closing NAV of the next Business Day. In respect of valid applications received up to 3.00 p.m. and where the funds for the entire amount are available for utilization before the cut-off time i.e., 110 p.m.