HDFC Mutual Fund - Key Information Memorandum Dated April 30, 2017
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The form can be used by investors who wish to enroll for SIP or
Micro SIP (PAN exempt investments) or Multiple SIP facility with
OTM Facility. Micro Systematic Investment Plans (Micro SIPs)
where aggregate of investments (Lumpsum plus SIP) in a rolling
12 month period or in a financial year i.e. April to March do not
exceed Rs. 50,000 shall be exempt from the requirement of PAN.
However, such investors shall be required to quote PAN Exempt
KYC Reference Number (PEKRN) details of which are given in PAN
Exempt Investments in point no. 15 below.
Multi SIP facility enables investors to start investments under SIP
of various Schemes for Monthly/ Quarterly Frequency using a
single application form and payment instruction.
• The maximum number of Schemes in which investments can
be made using a single Form shall be 3.
• Under this Facility, payment only in respect of the first
installment can be made using a cheque. The payment for all
the subsequent installments will have to be through NACH or
ECS (debit clearing)/Direct Debit facility / standing
instruction facility provided by the banks.
• The amount of investments in the Schemes through the
facility can be different subject to the requirement of
minimum amount of investment.
• Modification with respect to name of the scheme and scheme
wise installment, subject to total Multi SIP installment amount
remaining the same can be made only after completion of 6
months from date of 1st installment subject to compliance
with the requirements of minimum number of installments
under SIP by filing up Modification form. Modification Form
should be submitted atleast 30 days prior to the change to be
effected.
1. SIP (includes reference to Micro SIP/Multiple SIP) is available
to investors in the following Scheme(s) (including Direct Plan
thereunder) of HDFC Mutual Fund: HDFC Arbitrage Fund,
HDFC Balanced Fund, HDFC Banking and PSU Debt Fund,
HDFC Capital Builder Fund, HDFC Cash Management Fund -
Treasury Advantage Plan, HDFC Children’s Gift Fund, HDFC
Core & Satellite Fund, HDFC Corporate Debt Opportunities
Fund, HDFC Dynamic PE Ratio Fund of Funds, HDFC Equity
Fund, HDFC Equity Savings Fund, HDFC Floating Rate Income
Fund, HDFC Gilt Fund, HDFC Gold Fund**, HDFC Growth
Fund, HDFC High Interest Fund - Dynamic Plan, HDFC High
Interest Fund - Short Term Plan, HDFC Income Fund, HDFC
Index Fund, HDFC Infrastructure Fund, HDFC Large Cap Fund,
HDFC Long Term Advantage Fund*, HDFC Medium Term
Opportunities Fund, HDFC MF Monthly Income Plan (an
open-ended income scheme. Monthly income is not assured
and is subject to availability of distributable surplus), HDFC
Mid-Cap Opportunities Fund, HDFC Multiple Yield Fund - Plan
2005, HDFC Premier Multi-Cap Fund, HDFC Prudence Fund,
HDFC Regular Savings Fund, HDFC Retirement Savings
Fund***, HDFC Short Term Opportunities Fund, HDFC Small
Cap Fund, HDFC Tax Saver*, HDFC Top 200 Fund.
*an open-ended equity linked savings scheme with a lock-in
period of 3 years
** an open-ended fund of funds scheme investing in HDFC
Gold Exchange Traded Fund
***An open-ended notified tax savings cum pension scheme
with no assured returns. Units shall be subject to a lock-in of
5 years from the date of allotment.
The above list is subject to change from time to time.
Please contact the nearest Investor Service Centre (ISC) of
HDFC Mutual Fund for updated list.
Investors are requested to refer SID/KIM for product
labeling for easy understanding of the kind of
product/scheme they are investing in and its suitability to
them.
2. Enrolment Form should be completed in English and in Block
Letters only. Please tick (✓) in the appropriate box (£),
where boxes have been provided. Enrolment Form complete
in all respects, should be submitted at any of the Official
Points of Acceptance of HDFC Mutual Fund.
In case SIP/ Micro SIP investments are made through
‘Third Party Payments’ i.e. payment made through an
instrument issued from a bank account other than that of
the first named applicant/ investor mentioned in the
application form, Investors are required to additionally fill
up & submit the ‘Third Party Payment Declaration Form’
(available at any of our ISCs or on our website
www.hdfcfund.com) along with the SIP Enrolment Form.
3. a. Investment through Distributors
Distributors / Agents are not entitled to distribute units
of mutual funds unless they are registered with
Association of Mutual Funds in India (AMFI). Every
employee/ relationship manager/ sales person of the
distributor of mutual fund products to quote the
Employee Unique Identification Number (EUIN)
obtained by him/her from AMFI in the Application Form..
Individual ARN holders including senior citizens
distributing mutual fund products are also required to
obtain and quote EUIN in the Application Form. Hence, if
your investments are routed through a distributor,
please ensure that the EUIN is correctly filled up in the
Application Form However, in case of any exceptional
cases where there is no interaction by the employee/
sales person/relationship manager of the
distributor/sub broker with respect to the transaction
and EUIN box is left blank, you are required to provide
the duly signed declaration to the effect as given in the
form. For further details on EUIN you may kindly refer to
the instructions of the Scheme Application Form or
Statement of Additional Information.
These requirements do not apply to Overseas
Distributors.
New cadre distributors: New cadre distributors are
permitted to sell eligible schemes of the Fund
(details of eligible scheme is available on
www.hdfcfund.com)They also hold an EUIN which
must be quoted in the application form. In case your
application through such distributor is not for an eligible
scheme, it is liable to be rejected.
Direct Investments
Investors applying under Direct Plan must mention
“Direct” in ARN column. In case Distributor code is
mentioned in the application form, but “Direct Plan” is
indicated against the Scheme name, the Distributor
code will be ignored and the application will be
processed under Direct Plan.
b. Existing unitholders in Scheme(s) of HDFC Mutual Fund
are required to submit only the Enrolment Form. Existing
unitholders should provide their Folio Number.
Unitholders’ details and mode of holding (single, joint,
anyone or survivor) will be as per the existing folio
number and would prevail over any conflicting
information furnished in this form. Unitholders name
should match with the details in the existing folio
number, failing which the application form is liable to be
rejected.
c. Signature(s) should be as it appears on the Application
Form / existing Folio and in the same order. In case the
mode of holding is joint, all unit holders are required to
sign.
4. a. New investors who wish to enroll are required to fill the
(i) OTM Mandate Form (ii) SIP Application Form (iii) the
respective Scheme Application Form (included in the
Key Information Memorandum) along with / without the
initial investment instrument. Investors are advised to
read and understand and agree to abide by the Scheme
Information Document(s) / Key Information
Memorandum(s) and Statement of Additional
information available with the ISCs of HDFC Mutual
Fund, brokers/distributors and also displayed at the
HDFC Mutual Fund website i.e. www.hdfcfund.com
b. New investors can apply for SIP into respective
Scheme/ Plans/ Options without any existing
investment / folio.
The provision for ‘Minimum Application Amount’
specified in the respective Scheme Information
Document will not be applicable for SIP investments.
e.g. the minimum application amount for new investors
in HDFC Equity Fund - Growth Option is Rs. 5,000/-.
However, in case of SIP investments, an investor can
enter the Scheme with minimum amount of Rs. 500/-.
5. The facility is offered to investors the following three Plans
(Frequency):
i) Daily Systematic Investment Plan (D-SIP)
ii) Monthly Systematic Investment Plan (MSIP)
iii) Quarterly Systematic Investment Plan (QSIP)
6. (i) The details of minimum amount per installment,
minimum number of installments, maximum duration,
entry load, exit load, etc. under DSIP, MSIP and QSIP are
given below:
Schemes other than HDFC HDFC TaxSaver* and
TaxSaver* and HDFC Long HDFC Long Term
Term Advantage Fund* Advantage Fund*
i) Minimum Amount per Installments
DSIP Rs. 500/- and in Rs. 500/- and in
multiples of Rs. 100/- multiples of Rs. 500/-
MSIP Rs. 500/- and in Rs. 500/- and in
multiples of Rs. 100/- multiples of Rs. 500/-
QSIP Rs. 1,500/- and in Rs. 1,500/- and in
multiples of Rs. 100/- multiples of Rs. 500/-
ii) Total Minimum Number of Installments
MSIP • In respect of each SIP 6 Installments
Installment less than
Rs. 1,000/- in value:
12 Cheques
• In respect of each SIP
Installment equal to or
greater than Rs. 1,000/ -
in value: 6 Cheques
QSIP • In respect of each SIP 2 Installments
Installment less than
Rs. 3,000/ - in value:
4 Cheques
• In respect of each SIP
Installment equal to or
greater than Rs. 3,000/ -
in value: 2 Cheques
*open-ended equity linked savings scheme with a lock-in
period of 3 years
(ii) There is no maximum duration for enrolment.
An investor has an option to choose the ‘End Date’ of the
SIP by filling the date or by selecting the Default Date
i.e. December 2036.
However, SIPs will be registered in a folio held by a
minor only till the date of the minor attaining majority,
even though the instructions may be for a period
beyond that date. The facility will automatically stand
terminated upon the Unit Holder attaining 18 years of
age.
(iii) In respect of enrollments, the Load Structure prevalent
at the time of enrollment shall govern the investors
during the tenure.
The Load Structure for investments through SIP is as
follows:
(a) Entry Load: Not Applicable. 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.
(b) Exit Load: Applicable Exit Load, if any, in the
Scheme/ Plan/ Option as on the date of enrollment
of the SIP will be levied.
For Scheme load structure please refer to Key
Information Memorandum or contact the nearest
Investor Service Centre (ISC) of HDFC Mutual Fund or
visit our website www.hdfcfund.com
(iv) In case the frequency of debit/installment (Daily/
Monthly/ Quarterly) and date is not indicated, Monthly
frequency shall be treated as the Default Frequency and
10th shall be treated as the Default date.
(v) DSIP shall be triggered and processed only on all
Business Days.
7. Investors can choose any preferred date of the month as SIP
debit date. In case the chosen date falls on a non-business
day or on a date which is not available in a particular month,
the SIP will be processed on the immediate next business
day. In case the SIP debit date is not indicated, 10th shall be
treated as the default date. In case the investor(s) choose all
the days of the month, the SIP will be treated as Daily SIP
and processed accordingly. Where an investor has chosen
multiple debit dates for SIP, Cancellation of any SIP date
means cancellation of SIP on all multiple dates chosen. All
installments under DSIP, MSIP and QSIP should be of the
same amount and same date. For example, if an investor is
enrolling for the period July- December for total amount of
Rs. 30,000/-, there shall be a minimum of six installments
(except for first cheque which could be of any date) and same
amount. The first cheque should be drawn on the same bank
account which is to be registered for NACH/ ECS (Debit
Clearing) / Direct Debit / Standing Instruction. Alternatively,
the cheque may be drawn on any bank, but investor should
provide a photocopy of the cheque of the bank / branch for
which ECS (Debit Clearing) / Direct Debit / Standing
Instruction is to be registered. However, investors need not
submit the First Cheque for enrollment provided the
Enrolment Form is attested by the Bank from which
installment will be debited or copy of the cancelled cheque or
photocopy of the cheque of bank account from which the
installment will be debited is attached to the form.
a. First Cheque and subsequent Installments via NACH/
ECS (Debit Clearing)/ Direct Debit/ Standing Instruction
should be of the same amount.
b. The Enrolment Form should be submitted atleast 30
days before the first date^ for NACH/ECS (Debit
Clearing)/ Direct Debit / Standing Instruction.
If the start period is not mentioned, the chosen/Default
date falling 30 days from submission date will be
considered as the start date and will be registered from
that date (eg. If the application is submitted on June 1
without indicating the start period then the SIP start date
would be July 1).
In cases where D-SIP application is accompanied
with fresh OTM mandates, the start date for D-SIP
shall be 10 days after receipt of confirmation for
registration of OTM from destination banks.
Investors enrolling for D-SIP should select “As &
when presented” as payment frequency in the OTM.
[Investors enrolling for D-SIP should select “As &
when presented” as payment frequency in the OTM.
In case the D-SIP instalment is not debited on a
particular day on account of system constraints,
technical/operational issues/actions of other parties
or any other circumstances beyond the control of
HDFC AMC/Fund, such missed debits will not be re-
initiated.
^ In case the auto debit start date as mentioned in the
form does not satisfy this condition, the first date shall
be rolled over to begin from the immediately following
month (provided the roll over date does not exceed the
maximum time gap of 90 days between the SIP
submission date and first installment of SIP through
NACH/ECS (Debit Clearing) or Direct Debit/ Standing
Instruction) and the end date shall accordingly get
extended.
c. (i) SIP Top-up Facility:
• SIP Top-up Facility is not available under Micro
SIPs & Daily SIPs. In case the SIP amount
(including Top-up) exceeds the maximum amount
mentioned by the investor in the debit mandate,
the SIP Top-up request will stand rejected and the
SIP will continue to be processed with the last
Topped up SIP installment amount.
• For HDFC TaxSaver and HDFC Long Term
Advantage Fund, the SIP top-up in fixed amounts
and percentage shall be minimum Rs. 500 and in
multiples of Rs. 500/- thereafter.
Fixed Amount Top-up option:
1. 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 installment by a fixed
amount at pre-defined intervals. The SIP Top-up
amount should be filled in the SIP Enrolment Form
itself.
2. The SIP Top-up amount should be in multiples of
Rs. 100/- only.
3. Monthly SIP offers top-up frequency at half yearly
and yearly intervals. Quarterly SIP offers top-up
frequency at yearly intervals only. In case the
topup frequency is not indicated under Monthly
SIP, it will be considered as yearly interval.
Percentage Top-up option:
1. Investor can Top-up the SIP amount by a minimum
percentage viz. 10% and in multiples of 1%
thereafter, of the existing SIP installment.
2. SIP (including the Top-up) amount will be rounded
off to the nearest Rs. 10.
3. Percentage Top-up can be done at annual
frequency only.
(c) (ii) TOP-UP CAP
1. Top-up cap amount: Investor has an option to cap
the SIP Top-up amount once the SIP installment
(including Top-up amount) reaches a fixed pre-
defined amount. Thereafter the SIP installment
will remain constant till the end of SIP tenure. The
fixed pre-defined amount should be same as the
maximum amount mentioned by the investor in
the debit mandate. In case of difference between
the cap amount & the maximum amount
mentioned in debit mandate, then amount which
is lower of the two amounts shall be considered
as the default SIP cap amount.
2. Top-up cap month-year: Investor has an option to
provide an end date to the SIP Top-up amount. It is
the date from which Top-up to the SIP installment
amount will cease and the SIP installment will
remain constant till the end of SIP tenure. Investor
shall have flexibility to choose either top-up cap
amount or top-up cap month-year. In case of
multiple selections, top-up cap amount will be
considered as default selection.
d. In case, the name is not pre-printed on the cheque or
signature on the cheque does not match, then the first
named applicant/investor should submit any one of the
following documents i.e. a copy of the bank passbook
or a statement of bank account or a letter from the bank
on its letterhead certifying the investors bank account
details (Account Number, Type, Branch, MICR Code).
For other mode of payment and further details, please
refer to the section ‘Third Party Payments’ under the
Instructions in the Key Information Memorandum and
section ‘How to Apply’ under Statement of Additional
I n f o r m a t i o n a v a i l a b l e o n o u r w e b s i t e
www.hdfcfund.com
e. Any of the following payment modes may be used for
collection of SIP installments.
(i) Payment through Direct Debit Facility
Investors / Unit holders may enroll for Direct Debit
Facility available with the following banks /
branches:
Banks Branches
Allahabad Bank, Axis All Branches
Bank Limited, IDBI Bank
Limited, Kotak Mahindra
Bank Limited, IndusInd Bank
Limited, State Bank of India,
and Union Bank of India
Banks Branches
Bank of India, Bank of Select Branches
Baroda and Punjab
National Bank
SIP/ (DIRECT CLEARING) / DIRECT DEBIT FACILITY / STANDING INSTRUCTIONMULTIPLE SIP/ MICRO SIP TERMS & CONDITIONS FOR NACH/ECS