Professional Documents
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Chapter 09
Chapter 09
Scheme Re-Opening Date – This is the date from which the investors can offer their units for re-
purchase to the scheme (at the re-purchase price); or buy new units of the scheme (at the sale price). The
AMC announces Sale and Re-purchase prices from the Scheme Re-Opening Date.
Close-ended Schemes have an NFO Open Date and NFO Close Date. But, they have no Scheme
Re-opening Date, because the scheme does not sell or re-purchase units. Investors will need to buy or sell
units from the stock exchange where the scheme is listed.
DIRECT REGULAR
Growth Dividend Growth Dividend
The individual investors eligible to invest as detailed above, can invest in any mutual fund scheme, unless
the mutual fund comes out with a specific scheme, or a plan within a scheme, that is not intended for any
category of investors.
The non-individual investors eligible to invest as detailed above, can invest in any mutual fund schemes.
However, in some schemes, only specific classes of non-individual investors are permitted.
7. Eligibility to Invest
Anyone can invest in Mutual Fund
Nomination
The applicant can make a nomination in favor of a maximum of three nominees and indicate the
percentage to each nominee. The nomination can be made at the time of application or subsequently at
any time.
Minimum Investment
The Scheme Information Document (SID) and Key Information Memorandum (KIM) provides
information on the minimum application amount
FATCA (Foreign Account Tax Compliance Act)
What is FATCA?
- FATCA stands for the Foreign Account Tax Compliance Act, a new set of US Tax Regulations
brought in by the US govt. and enacted through the Internal Revenue Service (IRS), which is
similar to Income Tax Department in India.
Notes:
a. FATCA is mandatory for all types of investor.
b. Without FATCA investor unable to initiate any financial transactions.
c. Even for the redemption also we required FATCA.
De-mat Account
1. Dematerialization:
- Transfer from physical to electronic mode
- Transfer of units from Mutual Fund to De-mat Account
- Transfer from OFFLINE to ONLINE
2. Re-materialization:
- Transfer from electronic to physical mode
- Transfer of units from De-mat Account to Mutual Fund
- Transfer from ONLINE to OFFLINE
1. Note: Investor has to visit personally for In Person Verification. If investor will sent request by
post/Courier request will get reject.
2. Note: If investor can’t visit AMC branch for KYC In Person Verification. There is 2 option for
KYC In Person verification
a. You can do KYC from KYD registered broker.
b. You can do In Person Verification from schedule commercial Banks
3. Note: Investor can also send the request by post/Courier post IPV (In Person Verification)
attestation from schedule commercial Banks.
Note: Normally it takes 3 to 4 days for KYC. But investor can do investment and KYC at the same
time.
2. e-KYC:
- E-KYC is an Online KYC process.
- E-KYC is completely based on Aadhaar verification.
- Under EKYC there is a limit of Rs. 50,000/- Per Financial Year Per Mutual Fund
3. Bio-metric KYC:
- Bio-metric is a completely paper less facility offered to Non-KYC compliant investors, who will
be able to complete the KYC process with the help of Bio-Metric machine based on Aadhar.
- On successful authentication and completion of this process the investor will be able to make
transaction instantly.
- There is no transaction amount limit.
Cash Payments Cash payment not allowed but as per SEBI invest upto Rs. 50,000/- Per FY Per MF
- The precision in setting cut-off timing makes sense only if there is a fool proof mechanism of
capturing the time at which the sale and re-purchase applications are received.
- This is ensured through the following: Mutual funds disclose Official Points of Acceptance
(OPoAs) and their addresses in the SID and their website.
- All transaction requests need to be submitted at the OPoAs.
- The time stamping on the transaction requests is done at the official points of acceptance.
As a convenience, the distributor may accept the transaction request from the investor, but this would
need to be sent to an OPoA at the earliest.
When the cut-off timing is applied, the time when it is submitted to the OPoA is relevant–not the
time when the investor submits the transaction request to the distributor.
Cut-off Time:
- Cut off time for purchase in ALL SCHEMES is 3:00 pm
- Only For Liquid and Overnight Fund cut-off time is 1:30 pm.
- (w.e.f. 1st Feb 2021…. NAV is applicable as per Fund Realization for all schemes.
- Business days are from Monday to Friday
- Saturday and Sunday are non-business day
- NAV declared at night 11:00 pm Monday to Friday
- Only for Liquid Plan & Overnight Fund NAV declares 365 days i.e. on Saturday and Sunday as
well.
Cut-off
Scheme Time NAV applicability
Equity
Before 3:00 pm Same business day NAV will be applicable
Debt 3:00 PM
Liquid/Money Market After 3:00 pm Next business day NAV will be applicable
Types of Transaction – FT/NFT
First time investment Change of email id and mobile number Change of address
Additional purchase
Link Your Aadhar De-mat Process
process
Investment on behalf of
FATCA Updation Change of Mode of Holding
minor process
Redemption process DOB and PAN Updation Change in Tax Status
Transmission (In case of death of
Switch process OTM Registration investor units get transfer to
nominee