Specialized Investment Fund FAQ

SEBI (Securities and Exchange Board of India) introduced Specialized Investment Funds (SIFs) to meet the evolving needs of India’s financial ecosystem. In India, the concept of Specialized Investment Funds originated as part of the broader effort to promote newer investment alternatives that go beyond traditional mutual funds and combines the advantages of an AIF/PMS.

In order to protect unit holder interest from fraudulent encashment of cheques, the current SEBI Regulations has made it mandatory for investors to mention in their application/repurchase-redemption request, the bank name and account number of the unit holders. The AMC will not be responsible for any loss arising out of fraudulent encashment of cheques and or any delay /loss in transit. In the absence of these details, applications are liable for rejection.

Every unit holder of the Scheme will have an account number allotted to him and a statement of account of the units to the credit of his account will be issued.

For any investments made during the initial offer period the statements of account will be issued to all investors within 10 days after the closure of the offer. After the scheme reopens for subscription investors will be issued a statement of account detailing the number of units allotted. The Fund will endeavor to issue the statement of account within 5 business days after processing of the application. A fresh statement of account will be issued after every partial encashment / declaration of dividend / issue of bonus units / further purchase of units giving the total number of units standing to the investors’ credit. On every such operation the previous statement of account shall automatically stand cancelled.

In addition, each unit holder will also receive an annual account statement as soon as practicable after 31st March each year which will detail the investors opening unit balance as of 1st April of the prior year, all transactions that occurred during the preceding twelve months and the closing balance of units held as of 31st March.

No unit certificate will be issued under the scheme. However, in case of a specific request unit certificate may be issued within 6 weeks from the receipt of request from the investor at the appropriate authorized centre.

Allotment of units will be made after realisation of Cheque/DD for the amount invested depending upon the NAV of the units, subject to the prevailing load structure in fractional Units upto 3 decimals.

The NAV is the current market value of a SIF unit. It is calculated by taking the funds’ total investments, cash and any accrued earnings deducting liabilities, and dividing the remainder by the number of units outstanding.

Total Unit Cap. + Reserves + income (net of expenses & provisions) + (-) Appreciation/ (Depreciation) in investment

NAV = -----------------------------------------------------------------------------------------------------------------------------

No. of Units outstanding

Yes. Nominations may be made by individuals applying for or holding units on their own behalf, either singly or jointly. Those who cannot nominate are - Non-individuals including societies, trusts, corporate bodies, partnership firms, Kartas of Hindu undivided families, or holders of power of attorney.

The NAV shall be calculated everyday including holidays and declared on each business day in accordance with the SEBI guidelines on SIF from time to time and will be displayed / available at the Corporate office, Registrar’s office and other Authorized Centers such as the Area Offices. The NAV along with the sale and repurchase prices will also be published in at least 2 daily newspapers along with the sale and repurchase price on all business days’ accordance with SEBI guidelines, and made available on our website and AMFI website on a daily basis.

Investors may redeem their entire holdings either in full or in part. Investors have also the option to request the redemption:

a . of a Specified amount in Rupees

or

b. Of a Specified number of Units of the Scheme

Where the redemption request is for both a specified amount and for a specified number of units, the Specified Unit request is considered as definite. In case of a Specified request for an amount in rupees the number of units to be redeemed will be determined on the basis of the applicable repurchase price. Similarly where the request is for a specified number of Units for redemption, the redemption amount payable will be the number of units multiplied by the applicable repurchase price. Where the request for redemption exceeds the holdings of the Unit holders, the account of the Unit holder will be closed and the entire holding to the investor’s credit will be redeemed at the applicable repurchase price.

Repurchase/ redemption shall be effected on receipt of the repurchase/ redemption request along-with the duly discharged Statement of Account mentioning the number of units offered amount sought for repurchase/ redemption at the authorised centre where the Units were originally purchased. The new statement of account, mentioning the units outstanding to the credit of investor, if any, will be sent to the investor separately and upon its receipt all previous statements of account will automatically stand cancelled.

On complete redemption of the holdings the investor’s ceases to be a member of the Scheme and would not be entitled to any further benefits from the Scheme.

Repurchases / Redemptions By NRI’s / PIO’s will be in accordance with the conditions mentioned above subject to any procedures laid down by the RBI if any.

Payment to NRI’s / PIO’s will be subject to relevant laws / guidelines of the RBI as are applicable from time to time.

Subject to RBI approval, in case of NRI unitholders the amounts due on redemption / repurchases (subject to tax deduction at source) will be credited to the NRE / FCNR account of the investor where the original investment in the units was made on repatriation basis by an NRI either through inward remittance or debit to NRE/FCNR account.

In all other cases the amounts due on redemption / repurchases (subject to tax deduction at source) will be paid by means of a rupee cheque payable at the NRO/NRSR account of the investor as applicable.

Sale /Repurchase prices will be Calculated as per the prevailing load structure as follows:

NAV

Sale Price = -----------------

1- Entry Load

NAV

Repurchase Price NAV = -----------------

1- Entry Load

Investors will have the opportunity to plan their further investments and withdrawals from the scheme via the SIP/SWP. They can invest or withdraw regularly, at a specific frequency (subject to the other provisions of the schemes) thus benefiting from the economics of average cost of purchase and sale. They can further invest a fixed sum of money, a minimum of Rs. 10,000 and multiples of Re. 1 thereafter. In qSIF, the first transaction has to be of minimum Rs. 10 lacs across all qSIF strategies after which a SIP of minimum Rs. 5 lacs can be initiated.

SWP is a facility given to the Unit holders to withdraw amounts from the Scheme on periodic basis by giving a single instruction. In a SWP the investors can redeem a fixed sum/ number of units subject to compliance with the minimum investment threshold of Rs. 10 lacs. An investor has to have a minimum balance of specified no. of units or specified amount at all times which is Rs. 10 lacs. The default SWP date will be 2nd of every month (in case it falls on a non-business day, the transaction will be effected on the next business day of the Scheme). The SWP frequency is monthly. The Load Structure prevailing at the time of submission of the SIP/STP/SWP application will apply for all the installments indicated in such application. In qSIF, the first transaction has to be of minimum Rs. 10 lacs across all qSIF strategies.

Unitholders under the scheme have a proportionate right in the beneficial ownership of the assets of the mutual fund under the scheme.

The unitholders have a right to ask the trustee company/board of trustees about any information which may have an adverse bearing on their investments, and the trustees shall be bound to disclose such information to the unitholders.

The appointment of the Asset Management Company in respect of this scheme may be terminated by a majority of Trustees or 75% of the unitholders.

Units of the scheme are generally non-transferable. However, transfer of units, in cases outlined under the heading Transferability/ Transmission of units and subject to conditions stated therein, shall be made within 30 days from the date of lodgment.

Warrants in respect of dividends, if declared, will be dispatched to the unitholders within 30 days of the declaration of dividend if any.

Redemption or repurchase warrants will be dispatched within 10 working days from the date of their receipt of request duly complete in all respects by the appropriate Office.

The Trustees may, from time to time, add to or otherwise amend or alter all or any of the terms of this scheme, for duly complying with the guidelines of Government, RBI/SEBI or any other regulatory body or in the interest or convenience of the Fund or the unit holders. and any modification of the fundamental attributes of the scheme, or the trust or the fees and expenses payable or any other modification by the Trustees shall be made bearing in mind that the interest of the unit holders is not affected and no change in any of the above shall be carried out unless:–

• A written communication about the change is sent to each unit holder and an advertisement is given in one English daily newspaper having nation-wide circulation as well as in a newspaper published in the language of the region where the Head office of the Mutual Fund is situated; and
• The unit holders are given an option to exit at prevailing NAV without any exit load.
• An Abridged scheme wise annual report shall be mailed to all unitholders not later than 6 months from the date of closure of the relevant accounting year and the full annual report shall be available for inspection at the corporate office of Mutual Fund and a copy shall be made available the unitholders on request on payment of nominal fees, if any.
  
  DOCUMENTS FOR INSPECTION:
  The following documents will be available for inspection to the unit holders at the corporate office of the Mutual Fund:
  1. The Trust Deed
  2. Deed of Modification
  3. Memorandum of Association of Asset Management Company
  4. Articles of Association of Asset Management Company
  5. Investment Management Agreement
  6. Custodial Agreement
  7. Registrars Agreement (as and when they are appointed)
  8. Audited Balance Sheet of the Mutual Fund
  9. The Securities & Exchange Board of India (Mutual Fund) Regulations, 1996
  10. Offer Document of the scheme.
  11. The Indian Trusts Act 1882 and the consent of the Auditors to act in that capacity.

The minimum investment required for SIFs is ₹10 lakhs, but this may not apply to the following accredited investors. For qSIF, the minimum amount for accredited investors is ₹1 lakh.

Accredited investors:
How to invest in quant Specialized Investment Fund? Individuals, HUFs and Family: Annual Income >= ₹2 crores OR Annual income > ₹1 crore + Net Worth > (Financial Assets >= ₹2.5 crores) OR Net Worth >= ₹7.5 crores (Financial Assets >= ₹3.75 crores)

Trusts other than Family Trusts:Net Worth >= ₹50 crores

Body Corporates: Net Worth >= ₹50 crores