Offer Document: Unit Iv

AMFI Unit IV OFFER DOCUMENT Presented By:Ankit

Jain Pankaj Modi Priya Maru Mukul Yadav

Offer Document New fund offer The document containing the

detail of a NFO that the AMC or sponsor prepare and circulate to the prospective investor is call the offer document.

Importance for The Investor One of the most important source of

information from the perspective of the prospective investor. Investor must understand the fundamental attributes of the scheme. The operating documents and describes the products. The primary vehicle for the investment decision.

The contents  Details of the sponsor and the AMC  Description of the scheme and the

investment objective/strategy  Terms of issue  Historical statistics  Investors’ Rights and Services

SEBI Guidelines  Validity of offer document for new schemes.  Investors’ right to information on material

changes in schemes.  Periodic revisions required in the offered document.  Distribution of revised documents specified. 

A copy of changes has to be filed with SEBI

 Where

to documents.

obtain

the

updated

offer

The front page of the Offer Documents  Name of the Mutual Fund  Name of the Scheme     

Type of scheme Name of AMC Classes of units offered for sale price of guarantor in case of assured return scheme Opening, closing and earliest closing date for the offer.

The risk factors Standard risk Factor  Investment are subject to market risks.  NAV movement on basis of capita market movement.  Past performance is not indicative of the future performance of the scheme.  Name of scheme doesn’t indicate it’s quality.

Scheme

specific

risk

factors

 Scheme investment objective / strategy.  Risk arising from non- diversification.  Specific risk factors associated with  

investing in close ended scheme. Assured return scheme. AMC previous experience.

Legal and Regulatory compliance AMC need to appoint compliance officer. The draft offer document accordance with

SEBI regulations All legal requirements connected with launching Disclosures made in the offer document are true and fare. The intermediaries named in the offer document are registered with SEBI

Financial Information Expenses e.g.

sales load charge % of NAV, initial issue expenses, annual recurring expenses.

Condensed Financial Information of

schemes Information

about last 3 fiscal year, borrowing information of last year,

Constitution of the Mutual Fund Brief

Description of the Objectives of the Fund Functions and responsibilities of the its constituents: sponsor, AMC, trustees and custodian Activities of the sponsor and its financial performance for the last three fiscal years.

Conti………. Names and addresses of the

Board of trusties director’s Summary of trust provision Trusteeship fees

and deed

Investment objectives and policies Short description of the type

of securities. Asset allocation pattern Policy of diversification At least 65% invest in Scheme’s Implies name

Management of the Fund

Name and background of the…….. Fund Manager Key personnel Investor relations officer AMC and its Directors The custodian Registrar Transfer agent and the statutory auditor.

Offer related Information Minimum and Maximum amount required Circumstances for refund Calendar indicating In case of listing name of Stock Exchanges Option to convert close ended scheme into

open ended scheme Circumstance under which scheme will be wound up. Procedure for transfer and transmission of units

Other key information Associate/group companies transactions

SEBI restricts Borrowing policy not allow accept description of accounting Policies act (1996)

Tax Treatment of investments Describe

tax elements applicable to investor and fund itself

The Key Information Memorandum

Key Information Memorandum A. Investment objective B. Asset allocation pattern of

the scheme C. Plans and options D. Benchmark index and dividend policy E. Names of Fund Manager and Trustee Company

Cont…….. F. Compounded annualized returns over a one,

three or five year period G. Exp. Of Scheme with regard to Load structure and recurring exp. H. Source for obtaining daily NAV I. Investor grievance contact J. Information of accounting statement, annual financial result and half-yearly portfolio