Escolar Documentos
Profissional Documentos
Cultura Documentos
Offer of Units of Rs 10/- each for cash during the New Fund offer and continuous
offer for units at NAV based prices
Application No.
ARN - 25682
Distributor Code / ARN No. Sub-distributor Code / ARN No. Date of receipt Bank Sr. No.
Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors’ assessment of various factors including the service rendered by the distributor.
1. EXISTING UNIT HOLDER INFORMATION Folio No. Existing Investors: Please fill in the Sections 1, 9, 10,11, 12 and 14 only.
2. UNIT HOLDER INFORMATION (refer instruction A). New Investors: Please fill in all the Sections (2 to14).
Name of the first applicant / corporate investor Date of birth D D M M Y Y Y Y
Mr. / Ms. / M/s.
PAN1 (mandatory) Enclosed PAN Proof KYC Compliance. 3. STATUS OF FIRST APPLICANT
Name of the second applicant Resident Individuals Bank
Mr. / Ms. / M/s. HUF Proprietor
PAN1 (mandatory) Enclosed PAN Proof KYC Compliance. On Behalf of Minor Society
Name of the third applicant FII NRI - NRE
Mr. / Ms. / M/s. Partnership Firm NRI - NRO
6. CONTACT DETAILS OF FIRST / SOLE APPLICANT / CORPORATE 7. CONTACT & ADDRESS OF POWER OF ATTORNEY HOLDER
INVESTOR (P.O. Box Address may not be sufficient. Investors residing overseas, please (P.O. Box Address may not be sufficient. Investors residing overseas, please provide your
provide your Indian address.) Indian address.)
Address Address
9. BANK DETAILS (Please note that as per SEBI Regulations it is mandatory for investors to provide their bank account details. Please enclosed a copy of the cancelled cheque)
Name of bank Branch
City State Account No.
Account Type- Current Savings NRO NRE FCNR Others (specify) MICR code RTGS/ NEFT code
10. A. DEBIT MANDATE (For Standard Chartered Bank account holders only.) ACKNOWLEDGMENT SLIP
(To be filled in by the investor.) Application No.
To Branch Manager – Standard Chartered Bank Application No.
IDFC Mutual Fund
I/We (Name of the account holder)
authorise you to debit my/our Account no. for Scheme : IDFC Nifty Fund
12. AUTO TRIGGER FACILITY (ATF*) (Optional* - Instruction to Auto Switch to IDFC MMF-TP Plan A)
Auto Switch to IDFC MMF-TP Plan A - Growth Dividend (Please tick any one)
Exit Trigger Tranche 1 NAV Appreciation (% - minimum 10%) (Refer Note 2) Investment (% - minimum 50% & maximum 100%) (Refer Note 4)
Exit Trigger Tranche 2 NAV Appreciation (% - minimum 10%) (Refer Note 2) Investment (% - balance) (Refer Note 4)
Note: 1. In case investor opts for dividend option, by default it will be payout only. 2. Minimum NAV appreciation request has to be 10% & more (in multiples of 1%). 3. Minimum investment in
Auto Trigger Facility is Rs. 5,000/-. 4. Minimum Investment amount to be transferred / switched through ATF in first tranche is 50%or above and balance can be in second tranche. Switch through
ATF in first tranche can also be 100% of the investment amount.
13. DEMAT ACCOUNT DETAILS* (Please ensure that the sequence of names as mentioned in the application form matches with that of the account held with the Depository Participant).
* Incase of investor opting for units in Demat Account. Nomination provided in the Demat Account shall be considered.
Do you want Units of IDFC Nifty Fund in Demat Form (Please tick) Yes No If Yes, please provide the below details
National Securities Depository Limited (NSDL) Central Depository Services (India) Limited (CDSL)
Depository Depository
Participant Name Participant Name
DP ID No. Client ID No.
Beneficiary Account No.
First / Sole Applicant / Guardian Second Applicant Third Applicant Third Party Cheque Issuer POA Holder
The third party cheque signatory should sign in the signature box provided. Please refer to the attached Key Information Memorandum for details of the Scheme(s).
www.idfcmf.com
KEY INFORMATION MEMORANDUM
This Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing. For further details of the scheme/Mutual
Fund, due diligence certificate by the AMC, Key Personnel, investors’ rights & services, risk factors, penalties & pending litigations etc. investors should, before
investment, refer to the Scheme Information Document and Statement of Additional Information available free of cost at any of the Investor Service Centres or
distributors or from the website www.idfcmf.com.
The Scheme particulars have been prepared in accordance with Securities and Exchange Board of India (Mutual Funds) Regulations 1996, as amended till date,
and filed with Securities and Exchange Board of India (SEBI). The units being offered for public subscription have not been approved or disapproved by SEBI,
nor has SEBI certified the accuracy or adequacy of this KIM.
Investment Objective The investment objective of the scheme is to replicate the S&P CNX Nifty index by investing in securities of the S&P CNX Nifty Index in the
same proportion/weightage.
However, there is no assurance or guarantee that the objectives of the scheme will be realized and the scheme does not assure or guarantee
any returns.
Asset Allocation Pattern Types of Instruments Normal Allocation (% of Net Assets)
of the scheme (all Plans)
Securities (including derivatives) forming a part of the S&P CNX Nifty Index 90 - 100
Debt & Money Market instruments 0-10
The net assets of the scheme/Plan will be invested predominantly in stocks constituting the S&P CNX Nifty and / or in exchange traded
derivatives on the S&P CNX Nifty. This would be done by investing in almost all the stocks comprising the S&P CNX Nifty Index in
approximately the same weightage that they represent in the S&P CNX Nifty Index and / or investing in derivatives including futures contracts
and options contracts on the S&P CNX Nifty Index. A small portion of the net assets will be invested in money market instruments permitted
by SEBI / RBI including call money market or in alternative investment for the call money market as may be provided by the RBI, to meet the
liquidity requirements of the scheme/plan and for meeting margin money requirement for Nifty futures and/or futures of stocks forming part
of the Nifty Index. Further in case wherein the minimum lot size of the index scrip’s is not available, then the scheme shall invest in debt and
money market instruments. Further in case wherein the minimum lot size of the index scrip’s is not available, then the scheme shall invest in
debt and money market instruments.
Investments in Derivatives – upto 50% of the net assets of the scheme.
Investment strategy of Equity
the scheme
The Scheme will be managed passively with investments in stocks in a proportion that it is as close as possible to the weightages of these
stocks in the S&P CNX Nifty Index. The investment strategy would revolve around reducing the tracking error to the least possible through
rebalancing of the portfolio, taking into account the change in weights of stocks in the index as well as the incremental
collections/redemptions from the Scheme. It is proposed to manage the risks by placing limit orders for basket trades and other trades,
proactive follow-up with the service providers for daily change in weights in the S&P CNX Nifty Index as well as monitor daily inflows and
outflows to and from the Fund closely. While these measures are expected to mitigate the above risks to a large extent, there can be no
assurance that these risks would be completely eliminated
Debt
The domestic debt markets are maturing rapidly with liquidity emerging in various debt segments through the introduction of new
instruments and investors. The actual percentage of investment in various fixed income securities will be decided after considering the
prevailing political conditions, the economic environment (including interest rates and inflation), the performance of the corporate sector
and general liquidity and other considerations in economy and markets. The Fund has put in place detailed Investment Discretion Guidelines
defining the prudential and concentration limits for the portfolio limits. The investment management team is allowed full discretion to make
sale and purchase decisions within the limits established. The Fund Manager/(s) record a justification for investments made, on the deal slip /
instruction. Investment Management Committee (IMC) in its periodic meetings will track portfolio investment rationale, portfolio
composition, performance etc. Any modifications to the Investment Discretion Guidelines can be made by the IMC and will be ratified by the
Board. The performance of the fund will be monitored against its peer group in the industry and presented at every Board meeting along
with the portfolio of the Schemes. The Board of Director discusses the performance and portfolio composition of the scheme and queries
are responded to by the President & CEO.
Risk Profile of the Scheme Mutual Fund Units involve investment risks including the possible loss of principal. Please read the SID carefully for details on risk factors
before investment. Scheme specific Risk Factors are summarized below:
• The Scheme attempts to track the respective indices and it would primarily invest in the securities included in its Underlying indices
regardless of their investment merit. The Scheme may be affected by a general decline in the Indian markets.
• Performance of the S&P CNX Nifty Index will have a direct bearing on the performance of the scheme.
• Tracking errors are inherent in any index fund and such errors may cause the scheme to generate returns which are not in line with the
performance of the S&P CNX Nifty or one or more securities covered by / included in the S&P CNX Nifty.
• In case of investments in derivatives like index futures, the risk reward would be the same as investments in portfolio of shares
representing an index. However, there may be a cost attached to buying an index future. Further, there could be an element of
settlement risk, which could be different from the risk in settling physical shares and there is a risk attached to the liquidity and the depth
of the index futures market as it is relatively new market.
To the extent the scheme invests in debt/money market instruments, the following risks are likely to be affected:
Price-Risk or Interest-Rate Risk: Fixed income securities such as bonds, debentures and money market instruments 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 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. Even where no default occurs, the price of a security may go down
because the credit rating of an issuer goes down. It must, however, be noted that where the Scheme has invested in Government Securities,
there is no credit risk to that extent. Different types of securities in which the scheme would invest as given in the scheme information
document carry different levels and types of risk. Accordingly the scheme’s risk may increase or decrease depending upon its investment
pattern. E.g. corporate bonds carry a higher amount of risk than Government securities. Further even among corporate bonds, bonds which
are AAA rated are comparatively less risky than bonds which are AA rated.
Re-investment Risk: Investments in fixed income securities may carry re-investment 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.
Basis Risk: During the life of floating rate security or a swap the underlying benchmark index may become less active and may not capture
the actual movement in the interest rates or at times the benchmark may cease to exist. These types of events may result in loss of value in
the portfolio. Where swaps are used to hedge an underlying fixed income security, basis risk could arise when the fixed income yield curve
moves differently from that of the swap benchmark curve.
Spread Risk: In a floating rate security the coupon is expressed in terms of a spread or mark up over the benchmark rate. However
depending upon the market conditions the spreads may move adversely or favourably leading to fluctuation in NAV.
Liquidity Risk: The corporate debt market is relatively illiquid vis-a- vis the government securities market. There could therefore be
difficulties in exiting from corporate bonds in times of uncertainties. Liquidity in a scheme therefore may suffer. Even though the
Government Securities market is more liquid compared to that of other debt instruments, on occasions, there could be difficulties in
transacting in the market due to extreme volatility or unusual constriction in market volumes or on occasions when an unusually large
transaction has to be put through. In view of this, redemption may be limited or suspended after approval from the Boards of Directors of the
AMC and the Trustee, under certain circumstances as described in the Statement of Additional Information (SAI).
Risk management strategies The Fund is an index fund and by utilizing a holistic risk management strategy will endeavor to give investors a close tracking to the S&P CNX
Nifty Index. The risk control process involves identifying & measuring the risk through various risk measurement tools.
The Fund has identified following risks of investing in equities and designed risk management strategies, which are embedded in the
investment process to manage such risks.
Risk & Description specific to this scheme Risk Mitigants / Management strategy
Price risk
Risk of overpaying for a company The scheme will passively invest its cash in proportion of the index
constituents at all times and will not take an active call on the
valuation of a particular stock
Concentration risk
The scheme will passively track the index in terms of stock and
sector weights
Liquidity risk
High impact costs The scheme will track the CNX Nifty, which is one of the most
widely used index in the Indian equity market and hence has one
of the lowest impact costs.
Volatility
Price volatility due to company or portfolio specific factors Being a passive scheme, the impact of price volatility of an
individual stock will be in line with the index
Basis risk
risk that the return of the scheme are lower than the index the scheme will seek to minimize tracking error by avoiding
excessive cash allocations and also rebalancing as per index
modifications.
Sub Plans and Options Sub Plans: Nil Option: Dividend & Growth
Applicable NAV for repurchase Where the application is received up to 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 application shall be applicable.
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 after the day of application shall be applicable.
Where the application is received with an outstation cheque or demand draft, which is not payable on par at the place where it is received
closing NAV of day on which the cheque or demand draft is credited shall be applicable.
In case of 'switch' transactions, the allocation shall be in line with redemption payouts.
Applicable NAV for sales Where the application received is up to 3:00 pm closing NAV of the day of application shall be applicable. An application received after
3:00 pm closing NAV of the next business day after the day of application shall be applicable.
Minimum Application Rs. 500/- and in multiple of Re. 1 thereafter
Amount/ Number of Units
Despatch of Repurchase Within 10 working days of the receipt of the redemption request at the authorised centre of IDFC Mutual Fund.
(Redemption) Request
Benchmark Index S&P CNX Nifty Index
Dividend Policy Dividend declaration and distribution shall be in accordance with SEBI Regulations as applicable from time to time. The AMC reserves
the right to declared dividend from time to time, depending on availability of distributable surplus.
Name of the Fund Manager Mr. Tridib Pathak
Name of the Trustee Company IDFC AMC Trustee Company Limited
Performance of the scheme The scheme does not have any performance track record
Expenses of the scheme NEW FUND OFFER EXPENSES:
New Fund offer expenses will be borne by the AMC.
(i) Load Structure
There is no Entry & exit load in the scheme.
Switches into IDFC Nifty Fund shall attract load as applicable to the scheme.
The Trustee / AMC reserves the right to change the Load structure as deem fit .
(ii) Recurring Expenses
As per SEBI (MF) Regulations, 1996, recurring expenses will not exceed 1.5% of weekly average net assets:
Recurring expenses incurred in excess of the aforesaid limits will be borne by the AMC.
Tax treatment for the Investor will be advised to refer to the details in the Statement of Additional Information and also isndependently refer to his tax
Investors (Unitholders) advisor.
Comparison with the IDFC Nifty Fund is an index fund that will be passively replicate its benchmark index – S&P CNX Nifty. The role of the fund manager will be to
other existing schemes minimize the tracking error against the index. All other existing equity schemes of IDFC are actively managed against their benchmarks.
of IDFC Mutual Fund
Folios & AUM AUM and folio of other existing equity schemes of IDFC Mutual Fund ( as on February 28, 2010.)
Fund Name Number of folios Assets under Management (AUM)
IDFC Enterprise Equity Fund 1,52,820 Rs. 677.37 crores
IDFC Imperial Equity Fund 40,140 Rs. 544.85 crores
IDFC GDP Growth Fund 2,459 Rs. 49.11 crores
IDFC Classic Equity Fund 52,572 Rs. 285.53 crores
IDFC India Consumption Fund Nil Nil
IDFC Premier Equity Fund 74,454 Rs. 1390.12 crores
IDFC Small & Midcap Equity Fund 46,985 Rs. 496.53 crores
IDFC Strategic Sector 50:50 Equity Fund 3,963 Rs. 33.12 crores
IDFC Tax Advantage ELSS Fund 19,956 Rs. 51.54 crores
Daily Net Asset Value The NAV will be declared on a daily basis and will be published in 2 newspapers. NAV can also be viewed on www.idfcmf.com and
(NAV) Publication www.amfiindia.com. You can also contact us at 1-800-226622.
For Investor Grievances Name and Address of Registrar
please contact
Computer Age Management Services Private Limited
148, Old Mahabalipuram Road, Okkiyamthuraipakkam, Chennai - 96.
Investor relations officers of IDFC AMC Ltd.:
Name Region Address and Contact Number
Sunil Aryamane West 17/18, 3rd Floor, Vaswani Mansion, 120, Dinshaw Vachha Road, Opp. K. C. College,
Churchgate, Mumbai - 400 020. Tel.: 022-22841378. E-Mail ID : sunil.aryamane@idfcmf.com
Vijith Raghavan East Oswal Chambers, 1st Floor, 2 Church Lane, Kolkata - 700 001.
Tel.: 033-3024 9778 / 80 / 81. E-Mail ID : vijith.raghavan@idfcmf.com
Ms Jincy John North 4th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi - 110 001.
Tel.: 011-47311323. Fax: 011-23326669, 41524332. E-Mail ID : jincy.john@idfcmf.com
Shaji Perincheri South Maalavika Centre, Old No. 144/145, New No. 60, Kodambakkam Road, Chennai - 600 034.
Tel.: 91-44-25349340. E-mail ID : shaji.perincheri@idfcmf.com
Unitholders’ Information Account Statement (on transactions), shall be provided to investors by post or by e-mail if required. Annual Financial results shall be provided
to the investor by post. The Half Yearly portfolio shall be disclosed in 2 newspapers within 1 month of the close of the half year.
Notwithstanding anything contained in the Scheme Information Document (SID) / Statement of Additional Information (SAI)/ Key Information Memorandum (KIM) the
provisions of SEBI (Mutual Funds) Regulations 1996 and Guidelines thereunder shall be applicable. Further, investors may ascertain about any further changes from the Mutual
Fund/Investor Service Centres / distributors or brokers.
Sponsor Registrar
Infrastructure Development Finance Company Limited (IDFC) Computer Age Management Services Private Limited
Registered Office 148, Old Mahabalipuram Road, Okkiyam Thuraipakkam, Chennai - 600096.
ITC Centre, 3rd Floor,760, Anna Salai, Chennai - 600 002. Tel.: 044-24587266. Fax 044-24580980.
Registration No. INR 000002813
Trustee
IDFC AMC Trustee Company Limited (IDFC ATC) Custodian
One India Bulls Centre, 841, Jupiter Mills Compound, Deutsche Bank AG
Senapati Bapat Marg, Elphinstone Road (West), Mumbai - 400 013. Kodak House, 222 D N Road, Fort, Mumbai - 400 001
Investment Manager Auditors
IDFC Asset Management Company Ltd. (IDFC AMC) Deloitte Haskins and Sells.
Registered & Corporate Office 12, Dr. Annie Besant Road, Opp. Shiv Sagar Estate,
One India Bulls Centre, 841, Jupiter Mills Compound, Worli, Mumbai - 400 018.
Senapati Bapat Marg, Elphinstone Road (West), Mumbai - 400 013.
www.idfcmf.com