scheme information document axis bluechip fund an …

Axis Bluechip Fund 1

SCHEME INFORMATION DOCUMENT

AXIS BLUECHIP FUND An open-ended equity scheme predominantly investing in large cap stocks

Continuous offer for Units at NAV based prices This product is suitable for investors who are seeking*:

• capital appreciation over long term • investment in a diversified portfolio predominantly consisting of equity and equity related

instruments of large cap companies

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Name of Mutual Fund : Axis Mutual Fund Name of Asset Management Company : Axis Asset Management Company Ltd. Name of Trustee Company : Axis Mutual Fund Trustee Ltd. Addresses, Website of the entities : Axis House, 1st Floor, C-2, Wadia International Centre,

Pandurang Budhkar Marg, Worli, Mumbai - 400 025 www.axismf.com

Name of Sponsor : Axis Bank Ltd. The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations or the Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the Asset Management Company (AMC). The Units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document. The Scheme Information Document sets forth concisely the information about the Scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / Investor Service Centres / Website / Distributors or Brokers. The investors are advised to refer to the Statement of Additional Information (SAI) for details of Axis Mutual Fund, Tax and Legal issues and general information on www.axismf.com. SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website.

The Scheme Information Document should be read in conjunction with the SAI and not in isolation.

This Scheme Information Document is dated August 14, 2020.

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TABLE OF CONTENTS

HIGHLIGHTS/ SUMMARY OF THE SCHEME .................................................................................... 3 I. INTRODUCTION ................................................................................................................... 5 A. RISK FACTORS ........................................................................................................................... 5 B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME................................................ 10 C. SPECIAL CONSIDERATIONS, if any ...................................................................................... 11 D. DEFINITIONS ............................................................................................................................ 12 E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY ............................................. 16 II. INFORMATION ABOUT THE SCHEME ............................................................................... 17 A. TYPE OF THE SCHEME ............................................................................................................ 17 B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? ................................................. 17 C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? ............................................................... 17 D. WHERE WILL THE SCHEME INVEST? ...................................................................................... 29 E. WHAT ARE THE INVESTMENT STRATEGIES ............................................................................ 36 F. FUNDAMENTAL ATTRIBUTES .................................................................................................. 46 G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? .......................................... 47 H. WHO MANAGES THE SCHEME? ........................................................................................... 47 I. WHAT ARE THE INVESTMENT RESTRICTIONS? ..................................................................... 48 J. HOW HAS THE SCHEME PERFORMED? ............................................................................... 54 K. INVESTMENTS BY THE AMC ................................................................................................... 55 L. ADDITIONAL SCHEME RELATED DISCLOSURES .................................................................. 55 III. UNITS AND OFFER ............................................................................................................. 57 A. NEW FUND OFFER (NFO) ...................................................................................................... 57 B. ONGOING OFFER DETAILS ................................................................................................... 67 C. PERIODIC DISCLOSURES ..................................................................................................... 107 D. COMPUTATION OF NAV ..................................................................................................... 110 IV. FEES AND EXPENSES ....................................................................................................... 112 A. NEW FUND OFFER (NFO) EXPENSES .................................................................................. 112 B. ANNUAL SCHEME RECURRING EXPENSES ........................................................................ 112 C. LOAD STRUCTURE ................................................................................................................ 115 D. WAIVER OF LOAD FOR DIRECT APPLICATIONS .............................................................. 117 V. RIGHTS OF UNIT HOLDERS .............................................................................................. 118 VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY ................................................................................ 119


HIGHLIGHTS/ SUMMARY OF THE SCHEME Investment objective To achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities of large cap companies including derivatives. However, there can be no assurance that the investment objective of the Scheme will be achieved. Liquidity The Scheme offers Units for Subscription and Redemption at NAV based prices on all Business Days. Under normal circumstances, the AMC shall dispatch the redemption proceeds within 10 business days from the date of receipt of request from the Unit holder. Benchmark Nifty 50 TRI Transparency/ NAV Disclosure The AMC will calculate and disclose the NAVs on all Business Days. The AMC shall update the NAVs on its website (www.axismf.com) and of the Association of Mutual Funds in India - AMFI (www.amfiindia.com) before 11.00 p.m. on every Business Day. If the NAVs are not available before the commencement of Business Hours on the following day due to any reason, the Mutual Fund shall issue a press release giving reasons and explaining when the Mutual Fund would be able to publish the NAV. The AMC will disclose the portfolio of the Scheme (alongwith ISIN) as on the last day of the month/ half year on the website of the Mutual Fund and AMFI within 10 days from the close of each month/ half year (i.e. 31st March and 30th September) respectively in a user-friendly and downloadable spreadsheet format. Further, AMC shall publish an advertisement, in an all India edition of one national English daily newspaper and in one Hindi newspaper, every half year disclosing the hosting of the half-yearly statement of its schemes portfolio on the website of the Mutual Fund and AMFI and the modes through which unitholder can submit a request for a physical or electronic copy of the statement of scheme portfolios. The AMC will also provide a dashboard, in a comparable, downloadable (spreadsheet) and machine readable format, providing performance and key disclosures like Scheme’s AUM, investment objective, expense ratios, portfolio details, scheme’s past performance etc. on its website. The AMC will make available the Annual Report of the Scheme within four months of the end of the financial year on its website and on the website of AMFI along with a link. Minimum Application Amount Rs. 5,000 and in multiples of Re. 1/- thereafter Minimum Additional Purchase Amount Rs.100 and in multiples of Re. 1/- thereafter Minimum application amount is applicable at the time of creation of new folio and at the time of first investment in a plan. Plans and Options under the Plan(s) of the Scheme Plans Axis Bluechip Fund - Regular Plan Axis Bluechip Fund - Direct Plan


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Options under each plans Growth Dividend (Payout and Reinvestment Facility) Direct Plan Direct Plan is only for investors who purchase/ subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor. Eligible investors / modes for applying All categories of investors (whether existing or new Unitholders) as permitted under the Scheme Information Document of the Scheme are eligible to subscribe under Direct Plan. Investments under Direct Plan can be made through various modes offered by the Fund for investing directly with the Fund {except Platform(s) where investors’ applications for subscription of units are routed through Distributors}. All the plans will have common portfolio. Loads Entry Load: Not Applicable Exit Load: If redeemed / switched-out within 12 months from the date of allotment: For 10% of investments: NIL For remaining investments: 1% If redeemed / switched-out after 12 months from the date of allotment: NIL SEBI vide its circular no. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009 has decided that there shall be no entry load for all Mutual Fund schemes. For more details on Load Structure, please refer paragraph “Load Structure”.


I. INTRODUCTION A. RISK FACTORS i. Standard Risk Factors • Investment in mutual fund units involves investment risks such as trading volumes,

settlement risk, liquidity risk, default risk including the possible loss of principal. • As the price / value / interest rates of the securities in which the Scheme invests

fluctuates, the value of your investment in the Scheme may go up or down. • Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future

performance of the Scheme. • Axis Bluechip Fund is the name of the Scheme and does not in any manner indicate

either the quality of the Scheme or its future prospects and returns. • The sponsor is not responsible or liable for any loss resulting from the operation of the

Scheme beyond the initial contribution of Rs. 1 lakh made by it towards setting up the Fund.

• Axis Bluechip Fund is not a guaranteed or assured return scheme. Scheme Specific Risk Factors ii. Risks associated with investments in Equities • Equity and equity related securities are volatile and prone to price fluctuations on a daily

basis. The liquidity of investments made in the Scheme may be restricted by trading volumes and settlement periods. Settlement periods may be extended significantly by unforeseen circumstances. The inability of the Scheme to make intended securities purchases, due to settlement problems, could cause the Scheme to miss certain investment opportunities. Similarly, the inability to sell securities held in the Scheme portfolio would result at times, in potential losses to the Scheme, should there be a subsequent decline in the value of securities held in the Scheme portfolio. Also, the value of the Scheme investments may be affected by interest rates, currency exchange rates, changes in law/policies of the government, taxation laws and political, economic or other developments which may have an adverse bearing on individual Securities, a specific sector or all sectors.

• Investments in equity and equity related securities involve a degree of risk and investors should not invest in the equity Schemes unless they can afford to take the risk of losing their investment.

• Securities which are not quoted on the stock exchanges are inherently illiquid in nature and carry a larger liquidity risk in comparison with securities that are listed on the exchanges or offer other exit options to the investors, including put options.

Risks associated with investments in Fixed Income Securities Interest-Rate Risk: Fixed income securities such as government bonds, corporate bonds, and money market instruments and derivatives 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 depends upon the coupon and maturity of the security. It also depends upon the yield level at which the security is being traded. Re-investment Risk: Investments in fixed income securities carry re-investment risk as interest rates prevailing on the coupon payment or maturity dates may differ from the original coupon of the bond. Basis Risk: The underlying benchmark of a floating rate security or a swap might become less active or may cease to exist and thus may not be able to capture the exact interest rate movements, leading to loss of value of the portfolio.


Spread Risk: In a floating rate security the coupon is expressed in terms of a spread or mark up over the benchmark rate. In the life of the security this spread may move adversely leading to loss in value of the portfolio. The yield of the underlying benchmark might not change, but the spread of the security over the underlying benchmark might increase leading to loss in value of the security. Liquidity Risk: The liquidity of a bond may change, depending on market conditions leading to changes in the liquidity premium attached to the price of the bond. At the time of selling the security, the security can become illiquid, leading to loss in value of the portfolio. Credit Risk: This is the risk associated with the issuer of a debenture/bond or a money market instrument defaulting on coupon payments or in paying back the principal amount on maturity. Even when there is no default, the price of a security may change with expected changes in the credit rating of the issuer. It is to be noted here that a Government Security is a sovereign security and is the safest. Corporate bonds carry a higher amount of credit risk than Government securities. Within corporate bonds also there are different levels of safety and a bond rated higher by a particular rating agency is safer than a bond rated lower by the same rating agency. Liquidity Risk on account of unlisted securities: The liquidity and valuation of the Scheme investments due to their holdings of unlisted securities may be affected if they have to be sold prior to their target date of divestment. The unlisted security can go down in value before the divestment date and selling of these securities before the divestment date can lead to losses in the portfolio. Settlement Risk: Fixed income securities run the risk of settlement which can adversely affect the ability of the fund house to swiftly execute trading strategies which can lead to adverse movements in NAV Risk associated with Securitized Debt The Scheme may invest in domestic securitized debt such as Asset Backed Securities (ABS) or Mortgage Backed Securities (MBS). ABS are securitized debts where the underlying assets are receivables arising from various loans including automobile loans, personal loans, loans against consumer durables, etc. MBS are securitized debts where the underlying assets are receivables arising from loans backed by mortgage of residential / commercial properties. At present in Indian market, following types of loans are securitized: 1. Auto Loans (cars / commercial vehicles /two wheelers) 2. Residential Mortgages or Housing Loans 3. Consumer Durable Loans 4. Personal Loans 5. Corporate Loans In terms of specific risks attached to securitization, each asset class would have different underlying risks. Residential Mortgages generally have lower default rates than other asset classes, but repossession becomes difficult. On the other hand, repossession and subsequent recovery of commercial vehicles and other auto assets is fairly easier and better compared to mortgages. Asset classes like personal loans, credit card receivables are unsecured and in an economic downturn may witness higher default. A corporate loan/receivable, depend upon the nature of the underlying security for the loan or the nature of the receivable and the risks correspondingly fluctuate. The rating agencies define margins, over collateralisation and guarantees to bring risk in line with similar AAA rated securities. The factors typically analyzed for any pool are as follows:


a. Assets securitized and Size of the loan: This indicates the kind of assets financed with the loan and the average ticket size of the loan. A very low ticket size might mean more costs in originating and servicing of the assets.

b. Diversification: Diversification across geographical boundaries and ticket sizes might result in lower delinquency

c. Loan to Value Ratio: Indicates how much % value of the asset is financed by borrower’s own equity. The lower this value the better it is. This suggests that where the borrowers own contribution of the asset cost is high; the chances of default are lower.

d. Average seasoning of the pool: This indicates whether borrowers have already displayed repayment discipline. The higher the number, the more superior it is.

The other main risks pertaining to Securitised debt are as follows: Prepayment Risk: This arises when the borrower pays off the loan sooner than expected. When interest rates decline, borrowers tend to pay off high interest loans with money borrowed at a lower interest rate, which shortens the average maturity of ABS. However, there is some prepayment risk even if interest rates rise, such as when an owner pays off a mortgage when the house is sold or an auto loan is paid off when the car is sold. Reinvestment Risk: Since prepayment risk increases when interest rates decline, this also introduces reinvestment risk, which is the risk that the principal can only be reinvested at a lower rate.

Risks associated with investments in Derivatives • The Scheme may invest in derivative products in accordance with and to the extent

permitted under the Regulations and by RBI. Derivative products are specialized instruments that require investment techniques and risk analysis different from those associated with stocks and bonds. The use of a derivative requires an understanding not only of the underlying instrument but of the derivative itself. Trading in derivatives carries a high degree of risk although they are traded at a relatively small amount of margin which provides the possibility of great profit or loss in comparison with the principal investment amount. Thus, derivatives are highly leveraged instruments. Even a small price movement in the underlying security could have an impact on their value and consequently, on the NAV of the Units of the Scheme.

• The derivatives market in India is nascent and does not have the volumes that may be seen in other developed markets, which may result in volatility to the values.

• Investment in derivatives also requires the maintenance of adequate controls to monitor the transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and the ability to forecast price or interest rate movements correctly. Even a small price movement in the underlying security could have an impact on their value and consequently, on the NAV of the Units of the Scheme.

• The Scheme may face execution risk, whereby the rates seen on the screen may not be the rate at which the ultimate execution of the derivative transaction takes place.

• The Scheme may find it difficult or impossible to execute derivative transactions in certain circumstances. For example, when there are insufficient bids or suspension of trading due to price limit or circuit breakers, the Scheme may face a liquidity issue.

• The option buyer's risk is limited to the premium paid, while the risk of an options writer is unlimited. However, the gains of an options writer are limited to the premiums earned.

• The exchange may impose restrictions on exercise of options and may also restrict the exercise of options at certain times in specified circumstances and this could impact the value of the portfolio.

• The writer of a put option bears the risk of loss if the value of the underlying asset declines below the exercise price. The writer of a call option bears a risk of loss if the value of the underlying asset increases above the exercise price, as per extant regulations.

• Investments in index futures face the same risk as the investments in a portfolio of shares representing an index. The extent of loss is the same as in the underlying stocks.


• The Scheme bears a risk that it may not be able to correctly forecast future market trends or the value of assets, indices or other financial or economic factors in establishing derivative positions for the Scheme.

• The risk of loss in trading futures contracts can be substantial, because of the low margin deposits required, the extremely high degree of leverage involved in futures pricing and the potential high volatility of the futures markets.

• There is the possibility that a loss may be sustained by the portfolio as a result of the failure of another party (usually referred to as the "counter party") to comply with the terms of the derivatives contract. The counter party may default on a transaction before settlement and therefore, the Scheme is compelled to negotiate with another counterparty at the then prevailing (possibly unfavourable) market price.

• Derivatives also carry a market liquidity risk where the derivatives cannot be sold (unwound) at prices that reflect the underlying assets, rates and indices.

• Where derivatives are used for hedging, such use may involve a basis risk where the instrument used as a hedge does not match the movement in the instrument/underlying asset being hedged. The risk may be inter-related also e.g. interest rate movements can affect equity prices, which could influence specific issuer/industry assets.

• Other risks in using derivatives include the risk of mispricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly with underlying assets, rates and indices.

• Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor.

• Execution of investment strategies depends upon the ability of the fund manager(s) to identify such opportunities which may not be available at all times. Identification and execution of the strategies to be pursued by the fund manager(s) involve uncertainty and decision of fund manager(s) may not always be profitable. No assurance can be given that the fund manager(s) will be able to identify or execute such strategies.

• The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments.

The following are certain additional risks involved with use of fixed income derivatives: Interest rate risk: Derivatives carry the risk of adverse changes in the price due to change in interest rates. Liquidity risk: During the life of the derivative, the benchmark might become illiquid and might not be fully capturing the interest rate changes in the market, or the selling, unwinding prices might not reflect the underlying assets, rates and indices, leading to loss of value of the portfolio. Risks associated with Covered Call Strategy Writing call options are highly specialized activities and entail higher than ordinary investment risks. In such investment strategy, the profits from call option writing is capped at the option premium, however the downside depends upon the increase in value of the underlying equity shares. This downside risk is reduced by writing covered call options. The Scheme may write covered call option only in case it has adequate number of underlying equity shares as per regulatory requirement. This would lead to setting aside a portion of investment in underlying equity shares. If covered call options are sold to the maximum extent allowed by regulatory authority, the Scheme may not be able to sell the underlying equity shares immediately if the view changes to sell and exit the stock. The covered call options need to be unwound before the stock positions can be liquidated. This may lead to a loss of opportunity, or can cause exit issues if the strike price at which the call option contracts have been written become illiquid. Hence, the Scheme may not be able to sell the underlying equity shares, which can lead to temporary illiquidity of the underlying equity shares and result in loss of opportunity.


The writing of covered call option would lead to loss of opportunity due to appreciation in value of the underlying equity shares. Hence, when the appreciation in equity share price is more than the option premium received the Scheme would be at a loss. The total gross exposure related to option premium paid and received must not exceed the regulatory limits of the net assets of the Scheme. This may restrict the ability of Scheme to buy any options. Risks associated with investing in foreign securities/ overseas investments/ offshore securities • Subject to necessary approvals and within the investment objectives of the Scheme, the

Scheme may invest in overseas markets which carry risks related to fluctuations in the foreign exchange rates, the nature of the securities market of the country, repatriation of capital due to exchange controls and political circumstances.

• Since the Scheme would invest only partially in foreign securities, there may not be readily available and widely accepted benchmarks to measure performance of such Scheme. To manage risks associated with foreign currency and interest rate exposure, the Fund may use derivatives for efficient portfolio management and hedging and portfolio rebalancing and in accordance with conditions as may be stipulated under the Regulations and by RBI from time to time.

• Investment in Foreign Securities involves a currency risk. To the extent that the assets of the Scheme will be invested in securities denominated in foreign currencies, the Indian Rupee equivalent of the net assets, distributions and income may be adversely affected by changes in the value of certain foreign currencies relative to the Indian Rupee. The repatriation of capital to India may also be hampered by changes in regulations concerning exchange controls or political circumstances as well as the application to it of other restrictions on investment.

Risks associated with Repo transactions in Corporate Bonds The Scheme may be exposed to counter party risk in case of repo lending transactions in the event of the counterparty failing to honour the repurchase agreement. However, in repo transactions, the collateral may be sold and a loss is realized only if the sale price is less than the repo amount. The risk is further mitigated through over-collateralization (the value of the collateral being more than the repo amount). Risks associated with transaction in Units through stock exchange(s) In respect of transaction in Units of the Scheme through BSE and / or NSE, allotment and redemption of Units on any Business Day will depend upon the order processing / settlement by BSE and / or NSE and their respective clearing corporations on which the Fund has no control. Risks associated with Securities lending The risks in lending portfolio securities, as with other extensions of credit, consist of the failure of another party, to comply with the terms of agreement entered into between the lenders of securities i.e. any scheme and the approved intermediary/counterparty. Such failure to comply can result in the possible loss of rights in the collateral put up by the borrower of the securities, the inability of the approved intermediary/counterparty to return the securities deposited by the lender and the possible loss of any corporate benefits accruing to the lender from the securities deposited with the approved intermediary. The Scheme may not be able to sell such lent securities and this can lead to temporary illiquidity. Risk Factor associated with debt instruments having credit enhancement: The Scheme may invest in debt instruments having credit enhancement backed by equity shares/guarantees or other any assets as collateral. The profile of these issuers tend to be relatively weak and there may be a pledge of shares of a related party to enhance credit quality or guarantees provided or any other asset provided as security acceptable to lenders.


Where equity shares are provided as collateral there is the risk of sharp price volatility of underlying securities which may lead to erosion in value of collateral which may affect the ability of the fund to enforce collateral and recover capital and interest obligations. Also there is a possibility of guarantor going insolvent which also can impact the recovery value of exposure. In case of credit enhanced structures backed by equity share the liquidity of the underlying shares may be low leading to a lower recovery and a higher impact cost of liquidation. In case of other assets provided recovery value and enforce ability of asset can also be a risk factor which can lower the recovery value. Risks associated with Short Selling The Scheme may enter into short selling transactions, subject to SEBI and RBI Regulations. Short positions carry the risk of losing money and these losses may grow unlimited theoretically if the price of the stock increases without any limit. This may result in major loss to the Scheme. At times, the participants may not be able to cover their short positions, if the price increases substantially. If numbers of short sellers try to cover their position simultaneously, it may lead to disorderly trading in the stock and thereby can briskly escalate the price even further making it difficult or impossible to liquidate short position quickly at reasonable prices. In addition, short selling also carries the risk of inability to borrow the security by the participants thereby requiring the participants to purchase the securities sold short to cover the position even at unreasonable prices. Risk associated with Investments in REITs and InvITs • Price-Risk or Interest-Rate Risk: REITs & InvITs run price-risk or interest-rate risk. Generally,

when interest rates rise, prices of existing 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. REITs & InvITs are likely to have volatile cash flows as the repayment dates would not necessarily be pre scheduled.

• Liquidity or Marketability Risk: This refers to the ease with which a security can be sold at or near to its valuation yield-to-maturity (YTM). The primary measure of liquidity risk is the spread between the bid price and the offer price quoted by a dealer. As these products are new to the market they are likely to be exposed to liquidity risk.

• Reinvestment Risk: Investments in REITs & InvITs may carry reinvestment 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.

• Risk of lower than expected distributions: The distributions by the REIT or InvIT will be based on the net cash flows available for distribution. The amount of cash available for distribution principally depends upon the amount of cash that the REIT/ InvITs receives as dividends or the interest and principal payments from portfolio assets.

The above are some of the common risks associated with investments in REITs & InvITs. There can be no assurance that investment objectives will be achieved, or that there will be no loss of capital. Investment results may vary substantially on a monthly, quarterly or annual basis. B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME The Scheme shall have a minimum of 20 Investors and no single Investor shall account for more than 25% of the corpus of the Scheme. The aforesaid conditions should be complied with in each calendar quarter on an average basis. In case the Scheme does not have a minimum of 20 Investors on an ongoing basis for each calendar quarter, the provisions of Regulation 39(2)(c) of the SEBI (MF) Regulations would become applicable automatically without any reference from SEBI and accordingly the Scheme shall be wound up and the units would be redeemed at Applicable NAV. If there is a breach of the 25% limit by any Investor over the quarter, a rebalancing period of one month would be allowed and


thereafter the Investor who is in breach of the rule shall be given 15 days’ notice to redeem his exposure over the 25% limit. Failure on the part of the said investor to redeem his exposure over the 25% limit within the aforesaid 15 days would lead to automatic Redemption by the Mutual Fund at the Applicable NAV on the 15th day of the notice period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in this regard. C. SPECIAL CONSIDERATIONS, if any • Prospective investors should study this Scheme Information Document and Statement of

Additional Information carefully in its entirety and should not construe the contents hereof as advise relating to legal, taxation, financial, investment or any other matters and are advised to consult their legal, tax, financial and other professional advisors to determine possible legal, tax, financial or other considerations of subscribing to or redeeming Units, before making a decision to invest/redeem/hold Units.

• The Scheme related documents i.e. SID/ KIM/ SAI or the units of the Fund are not registered in any jurisdiction including the United States of America nor in any provincial/ territorial jurisdiction in Canada. The distribution of the Scheme related document in certain jurisdictions may be restricted or subject to registration requirements and, accordingly, persons who come into possession of the Scheme related documents are required to inform themselves about, and to observe any such restrictions. No persons receiving a copy of this Scheme related documents or any accompanying application form in such jurisdiction may treat these Scheme related documents or such application form as constituting an invitation to them to subscribe for units, nor should they in any event use any such application form, unless in the relevant jurisdiction such an invitation could lawfully be made to them and such application form could lawfully be used without compliance with any registration or other legal requirements. Accordingly the Scheme related documents do not constitute an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation as per applicable law.

• The AMC, Trustee or the Mutual Fund have not authorized any person to issue any advertisement or to give any information or to make any representations, either oral or written, other than that contained in this Scheme Information Document or the Statement of Additional Information or as is provided by the AMC in connection with this offering. Prospective investors are advised not to rely upon any information or representation not incorporated in the Scheme Information Document or Statement of Additional Information or provided by the AMC as having been authorized by the Mutual Fund, the AMC or the Trustee.

• Redemption due to change in the fundamental attributes of the Scheme or due to any other reasons may entail tax consequences. The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for any such tax consequences that may arise due to such redemptions.

• The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for any of the tax consequences that may arise, in the event that the Scheme is wound up for the reasons and in the manner provided in Statement of Additional Information.

• The tax benefits described in this Scheme Information Document and Statement of Additional Information are as available under the present taxation laws and are available subject to relevant conditions. The information given is included only for general purpose and is based on advise received by the AMC regarding the law and practice currently in force in India as on the date of this Scheme Information Document and the Unit holders should be aware that the relevant fiscal rules or their interpretation may change. As is the case with any investment, there can be no guarantee that the tax position or the proposed tax position prevailing at the time of an investment in the Scheme will endure indefinitely. In view of the individual nature of tax consequences, each Unit holder is advised to consult his / her own professional tax advisor.

• The Mutual Fund may disclose details of the investor’s account and transactions thereunder to those intermediaries whose stamp appears on the application form or who


have been designated as such by the investor. In addition, the Mutual Fund may disclose such details to the bankers, as may be necessary for the purpose of effecting payments to the investor. The Fund may also disclose such details to regulatory and statutory authorities/bodies as may be required or necessary.

• In case the AMC or its Sponsor or its Shareholders or their affiliates/associates or group companies make substantial investment, either directly or indirectly in the Scheme redemption of Units by these entities may have an adverse impact on the performance of the Scheme. This may also affect the ability of the other Unit holders to redeem their Units.

• As the liquidity of the Scheme investments may sometimes be restricted by trading volumes and settlement periods, the time taken by the Fund for Redemption of Units may be significant in the event of an inordinately large number of Redemption Requests or of a restructuring of the Scheme portfolio. In view of this, the AMC / Trustee has the right to limit redemptions under certain circumstances - please refer to the paragraph “Suspension/Restriction on Redemption of Units of the Scheme.”.

• Pursuant tothe provisions of Prevention of Money Laundering Act, 2002, if after due diligence, the AMC believes that any transaction is suspicious in nature as regards money laundering, on failure to provide required documentation, information, etc. by the Unit holder the AMC shall have absolute discretion to report such suspicious transactions to FIU-IND and / or to freeze the folios of the investor(s), reject any application(s) / allotment of Units.

D. DEFINITIONS "AMC" / "Asset Management Company" / "Investment Manager"

Axis Asset Management Company Ltd., incorporated under the provisions of the Companies Act, 1956 and approved by Securities and Exchange Board of India to act as the Asset Management Company for the scheme(s) of Axis Mutual Fund.

"Applicable NAV" The NAV applicable for purchase or redemption or switching of Units based on the time of the Business Day on which the application is time stamped.

“Book Closure” The time during which the Asset Management Company would temporarily suspend Sale, redemption and Switching of Units.

“Business Day” A day other than: (i) Saturday and Sunday; (ii) A day on which the banks in Mumbai and/or RBI are closed for

business /clearing; (iii) A day on which the National Stock Exchange of India Ltd. and / or

BSE Ltd., Mumbai are closed; (iv) A day which is a public and /or bank Holiday at an Investor Service

Centre/Official Point of Acceptance where the application is received;

(v) A day on which Sale / Redemption / Switching of Units is suspended by the AMC;

(vi) A day on which normal business cannot be transacted due to storms, floods, bandhs, strikes or such other events as the AMC may specify from time to time.

The AMC reserves the right to declare any day as a Business Day or otherwise at any or all Investor Service Centres/ Official Points of Acceptance.

"Business Hours" Presently 9.30 a.m. to 5.30 p.m. on any Business Day or such other time as may be applicable from time to time.

"Custodian" A person who has been granted a certificate of registration to carry on the business of custodian of securities under the Securities and


Exchange Board of India (Custodian of Securities) Regulations 1996, which for the time being is Deutsche Bank AG.

"Deed of Trust" The Deed of Trust dated June 27, 2009 made by and between Axis Bank Ltd. and Axis Mutual Fund Trustee Ltd. thereby establishing an irrevocable trust, called Axis Mutual Fund.

"Depository" Depository as defined in the Depositories Act, 1996 (22 of 1996). "Derivative" Derivative includes (i) a security derived from a debt instrument, share,

loan whether secured or unsecured, risk instrument or contract for differences or any other form of security; (ii) a contract which derives its value from the prices, or index of prices, or underlying securities.

"Dividend" Income distributed by the Mutual Fund on the Units. “Dividend Sweep option” / “DSO”

Facility given to the Unit holders to automatically invest the dividend by eligible source scheme into eligible target scheme of the Mutual Fund.

"Equity Related Instruments"

Includes convertible bonds and debentures, convertible preference shares, warrants carrying the right to obtain equity shares, equity derivatives and any other like instrument.

“Foreign Portfolio Investor” / “FPI”

A person who satisfies the eligibility criteria prescribed under regulation 4 of SEBI (Foreign Portfolio Investors) Regulations, 2014 and has been registered under Chapter II of these regulations, which shall be deemed to be an intermediary in terms of the provisions of the Act.

"Floating Rate Debt Instruments"

Floating rate debt instruments are debt securities issued by Central and / or State Government, corporates or PSUs with interest rates that are reset periodically. The periodicity of the interest reset could be daily, monthly, quarterly, half-yearly, annually or any other periodicity that may be mutually agreed with the issuer and the Fund. The interest on the instruments could also be in the nature of fixed basis points over the benchmark gilt yields.

“Foreign Securities”

ADRs / GDRs/ equity / debt securities of overseas companies listed on the recognized stock exchanges overseas or other securities as may be specified and permitted by SEBI and/or RBI from time to time.

"Gilts" / "Government Securities"

Securities created and issued by the Central Government and/or a State Government (including Treasury Bills) or Government Securities as defined in the Public Debt Act, 1944, as amended or re-enacted from time to time.

“GOI” Government of India “Holiday” Holiday means the day(s) on which the banks (including the Reserve

Bank of India) are closed for business or clearing in Mumbai or their functioning is affected due to a strike / bandh call made at any part of the country or due to any other reason.

"Investment Management Agreement"

The agreement dated June 27, 2009 entered into between Axis Mutual Fund Trustee Ltd. and Axis Asset Management Company Ltd., as amended from time to time.

“Infrastructure Investment Trust” / “InvIT”

InvIT shall have the meaning assigned in clause (za) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014.

"Investor Service Centres" / "ISCs"

Offices of Axis Asset Management Company or such other centres / offices as may be designated by the AMC from time to time.

“Large Cap Companies”

1st to 100th company in terms of full market capitalisation. The AMC would adopt the list of stocks prepared by AMFI in accordance with the methodology prescribed by SEBI (or as per any other methodology as may be prescribed by SEBI from time to time). The list of Large Cap companies would be updated every six months based on data as on end of June and December of each year or as


may be prescribed by SEBI. The data will be updated by AMC on being made available by AMFI. Subsequent to any updation in the list, the portfolios will be rebalanced (if required), within a period of one month.

"Load" In the case of Redemption / Switch out of a Unit, the sum of money deducted from the Applicable NAV on the Redemption / Switch out (Exit Load) and in the case of Sale / Switch in of a Unit, a sum of money to be paid by the prospective investor on the Sale / Switch in of a Unit (Entry Load) in addition to the Applicable NAV. Presently, entry load cannot be charged by mutual fund schemes.

"Money Market Instruments"

Includes commercial papers, commercial bills, treasury bills, Government securities having an unexpired maturity upto one year, call or notice money, certificate of deposit, usance bills and any other like instruments as specified by the Reserve Bank of India from time to time.

"Mutual Fund" / "the Fund"

Axis Mutual Fund, a trust set up under the provisions of the Indian Trusts Act, 1882.

"Net Asset Value" / "NAV"

Net Asset Value per Unit of the Scheme, calculated in the manner described in this Scheme Information Document or as may be prescribed by the SEBI (MF) Regulations from time to time.

"NRI" A Non-Resident Indian or a Person of Indian Origin residing outside India. "Official Points of Acceptance"

Places, as specified by AMC from time to time where application for Subscription / Redemption / Switch will be accepted on ongoing basis.

“Overseas Citizen of India” / “OCI”

Means a person registered as an Overseas Citizen of India Cardholder by the Central Government under section 7A of The Citizenship Act, 1955.

"Person of Indian Origin"

A citizen of any country other than Bangladesh or Pakistan, if (a) he at any time held an Indian passport; or (b) he or either of his parents or any of his grandparents was a citizen of India by virtue of Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian citizen or person referred to in sub-clause (a) or (b).

"Rating" Rating means an opinion regarding securities, expressed in the form of standard symbols or in any other standardized manner, assigned by a credit rating agency and used by the issuer of such securities, to comply with any requirement of the SEBI (Credit Rating Agencies) Regulations, 1999.

"RBI" Reserve Bank of India, established under the Reserve Bank of India Act, 1934, (2 of 1934)

“Real Estate Investment Trust” / “REIT”

REIT shall have the meaning assigned in clause (zm) of sub-regulation 1 of regulation 2 of the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014.

"Registrar and Transfer Agent" / “Registrar”

KFin Technologies Pvt. Ltd., Hyderabad, currently acting as registrar to the Scheme, or any other Registrar appointed by the AMC from time to time.

"Redemption” / “Repurchase"

Redemption of Units of the Scheme as permitted.

“Regulatory Agency”

GOI, SEBI, RBI or any other authority or agency entitled to issue or give any directions, instructions or guidelines to the Mutual Fund

“Repo” Sale/Purchase of Securities with simultaneous agreement to repurchase / resell them at a later date.

"Statement of Additional Information" / "SAI"

The document issued by Axis Mutual Fund containing details of Axis Mutual Fund, its constitution, and certain tax, legal and general information. SAI is legally a part of the Scheme Information Document.

"Sale” / Sale or allotment of Units to the Unit holder upon subscription by the


“Subscription" Investor / applicant under the Scheme. "Scheme" Axis Bluechip Fund “Scheme Information Document”

This document issued by Axis Mutual Fund, offering for Subscription of Units of Axis Bluechip Fund (including Options thereunder)

"SEBI" Securities and Exchange Board of India, established under the Securities and Exchange Board of India Act, 1992.

"SEBI (MF) Regulations" / "Regulations"

Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended from time to time.

"Short Selling" Short selling means selling a stock which the seller does not own at the time of trade.

"Sponsor" Axis Bank "Switch" Redemption of a Unit in any Scheme (including the Plans / options

therein) of the Mutual Fund against purchase of a Unit in another Scheme (including the Plans /options therein) of the Mutual Fund, subject to completion of Lock-in Period, if any.

"Stock Lending" Lending of securities to another person or entity for a fixed period of time, at a negotiated compensation in order to enhance returns of the portfolio.

“Systematic Investment Plan”/ “SIP”

A plan enabling investors to save and invest in the Scheme on a periodic basis submitting post-dated cheques / payment instructions.

“Systematic Transfer Plan” / “STP”

Facility given to the Unit holders to transfer sums on periodic basis from one scheme to another scheme launched by the Mutual Fund from time to time by giving a single instruction.

“Systematic Withdrawal Plan” / “SWP”

Facility given to the Unit holders to withdraw a specified sum of money monthly/quarterly/ half yearly/ annually from his investment in the Scheme.

“Tri Party Repo” Tri-party repo means a repo contract where a third entity (apart from the borrower and lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction.

“Trustee” / “Trustee Company”

Axis Mutual Fund Trustee Ltd., incorporated under the provisions of the Companies Act, 1956 and approved by SEBI to act as the trustee to the Scheme of the Mutual Fund.

"Unit" The interest of the Unit holder which consists of each Unit representing one undivided share in the assets of the Scheme.

"Unit holder" / "Investor"

A person holding Units in the Scheme.

INTERPRETATION For all purposes of this Scheme Information Document, except as otherwise expressly provided or unless the context otherwise requires: • all references to the masculine shall include the feminine and all references, to the

singular shall include the plural and vice-versa. • all references to "dollars" or "$" refer to United States Dollars and "Rs" refer to Indian

Rupees. A "crore" means "ten million" and a "lakh" means a "hundred thousand". • all references to timings relate to Indian Standard Time (IST). • references to a day are to a calendar day including a non-Business Day.


E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY It is confirmed that: (i) The Scheme Information Document forwarded to SEBI is in accordance with the SEBI

(Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time.

(ii) All legal requirements connected with the launching of the Scheme as also the guidelines, instructions, etc., issued by the Government and any other competent authority in this behalf, have been duly complied with.

(iii) The disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the Scheme.

(iv) The intermediaries named in the Scheme Information Document and Statement of Additional Information are registered with SEBI and their registration is valid, as on date.

Place: Mumbai Signed: Sd/- Date: August 14, 2020 Name: Darshan Kapadia Designation: Compliance Officer


II. INFORMATION ABOUT THE SCHEME A. TYPE OF THE SCHEME An open ended equity scheme predominantly investing in large cap stocks B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? To achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities of Large Cap companies including derivatives. However, there can be no assurance that the investment objective of the Scheme will be achieved. C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? Under normal circumstances, the asset allocation pattern will be:

Instruments Indicative allocations

(% of total assets) Risk Profile

Minimum Maximum High/ Medium/Low

Equity and Equity Related Instruments of Large Cap companies #

80 100 High

Equity and Equity Related Instruments of other companies#

0 20 High

Debt and Money Market Instruments*# 0 20 Low to Medium

Units issued by REITs & InvITs 0 10 Medium to High

#Including derivatives instruments to the extent of 100% of the Net Assets as permitted vide SEBI circular no. DNPD/Cir 29/2005 dated September 14, 2005, SEBI circular no. DNPD/Cir-30/2006 dated January 20, 2006, SEBI circular no. SEBI/DNPD/Cir-31/2006 dated September 22, 2006, SEBI circular no. Cir/ IMD/ DF/ 11/ 2010 dated August 18, 2010, SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2017/13 dated February 20, 2017, SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2017/109 dated September 27, 2017 and SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2019/17 dated January 16, 2019. The Scheme may use derivatives for such purposes as maybe permitted by the Regulations, including for the purpose of hedging and portfolio balancing, based on the opportunities available and subject to guidelines issued by SEBI from time to time. The Scheme may also use fixed income derivative instruments subject to the guidelines as maybe issued by SEBI and RBI and for such purposes as maybe permitted from time to time. *Investment in Securitized debt (excluding foreign securitized debt), if undertaken, would not exceed 20% of the net assets of the Scheme. The Scheme will invest predominantly in Equity and Equity Related Instruments of Large Cap companies. The cumulative gross exposure through equity, debt, units issued by REITs & InvITs and derivative position should not exceed 100% of the net assets of the Scheme in accordance with SEBI circular no. Cir/MD/DF/11/2010 dated August 18, 2010. Investment in Foreign Securities The Scheme may seek investment opportunities in foreign securities including ADRs / GDRs / Foreign equity and debt securities subject to SEBI (MF) Regulations. Such Investment shall not exceed 50% of the net assets of the Scheme.


Repo in Corporate debt securities The Scheme may undertake repo transactions in corporate debt securities in accordance with the directions issued by RBI and SEBI from time to time. Such investment shall be made subject to the guidelines which may be prescribed by the Board of Directors of the Asset Management Company and Trustee Company. Stock Lending by the Fund The Scheme shall adhere to the following limits should it engage in Stock Lending: 1. Not more than 25% of the net assets of the Scheme can generally be deployed in Stock

Lending. 2. Not more than 5% of the net assets of the Scheme can generally be deployed in Stock

Lending to any single counter party (as may be applicable). Short Selling by the Fund The Scheme may engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI. Investment in Short Term Deposits Pending deployment of the funds in securities in terms of investment objective of the Scheme, the AMC may park the funds of the Scheme in short term deposits of the Scheduled Commercial Banks, subject to the guidelines issued by SEBI from time to time. The Scheme retains the flexibility to invest across all the securities in the equity, debt and Money Markets Instruments and mutual fund units. The portfolio may hold cash depending on the market condition. Subject to the Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages stated above are only indicative and not absolute. These proportions can vary substantially depending upon the perception of the fund manager; the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short term and for defensive considerations only. In the event of deviations, the fund manager will endeavour to carry out rebalancing within 30 Business Days. Where the portfolio is not rebalanced within 30 Business Days, justification for the same shall be placed before the Investment Review Committee and reasons for the same shall be recorded in writing. The Investment Review committee shall then decide on the course of action. However, at all times the portfolio will adhere to the overall investment objectives of the Scheme. Axis Bluechip Fund, an open ended equity scheme predominantly investing in large cap stocks is a different scheme offered by Axis Mutual Fund and is not a minor modification of any other existing scheme/ product of Axis Mutual Fund.


Differentiation with existing open ended equity schemes of Axis Mutual Fund are as follows: Data as on July 31, 2020 (in INR crores)

Name of the existing

scheme

Asset Allocation Pattern (Under normal circumstances)

Primary Investment Objective & Investment Strategy

Differentiation AUM No. of Folios

Axis Long Term Equity Fund

Instruments

Indicative Allocation (% of net assets)

Risk Profile

Minimum

Maximum

Low/ Medium/ High

Equity and equity- related Securities

80% - 100% High

Debt and money market instruments

0% - 20% Low to Medium

Primary Investment Objective: The investment objective of the Scheme is to generate income and long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related Securities. However, there can be no assurance that the investment objective of the Scheme will be achieved.

Investment Strategy: The Scheme will invest in a diversified portfolio of strong growth companies with sustainable business models. Though the benchmark is S&P BSE-200, the investments will not be limited to the companies constituting the benchmark. The portfolios will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a fundamentals based research process to analyse the appreciation potential of each stock in its universe. The universe of stocks is carefully selected to include companies having robust business models and enjoying sustainable competitive advantages as compared to their competitors. The Fund will have the

An open ended equity linked saving scheme with a statutory lock in of 3 year and tax benefit

21,059.97 20,66,228


flexibility to invest across the market capitalization spectrum. The Scheme will endeavour to remain fully invested in equity and equity-related instruments at all times.

Axis Midcap Fund

Instruments

Indicative allocations (% of total

assets)

Risk Profile

Minimum

Maximum

High/Medium/ Low

Equity and Equity Related Instruments of Mid-cap companies

65%

100% High

Equity and Equity Related Instruments of non Mid-cap Companies

0% 35%

High

Debt and Money Market Instruments

0% 35%

Low to Medium

Units issued by REITs & InvITs

0 10 Medium to High

Primary Investment Objective: To achieve long term capital appreciation by investing predominantly in equity & equity related instruments of Mid Cap companies. Investment Strategy: Axis Midcap Fund endeavors to generate capital appreciation through an actively managed diversified portfolio of primarily larger mid-cap companies. The portfolio will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a ""Fair value"" based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include companies having a robust business models and enjoying sustainable competitive advantages as compared to their competitors. The Fund will, mainly, invest in mid-cap companies. Mid-cap

An open ended equity scheme predominantly investing in Mid Cap companies

5,869.04 4,62,843


companies, as they are in a stage of growth, may be valued higher than their fair value. However, the Fund intends to identify such strong growth companies & take advantage of their future appreciation. The Fund by utilising a holistic risk management strategy will endeavour to manage risks associated with investing in equity markets. The Fund has identified the following risks and designed risk management strategies, which are embedded in the investment process to manage these risks- i. Quality Risk - Risk of investing in unsustainable / weak companies. ii. Price Risk - Risk of overpaying for a company iii. Liquidity Risk - High Impact cost of entry and exit iv. Volatility Risk - Volatility in price due to company or portfolio specific factors v. Event Risk - Price risk due to a company / sector specific or market event

Axis Focused 25 Fund

Instruments


Risk Profile

Minimum Maximum

Low/ Medium/ High

Equity and Equity Related Instruments (of not

65 100 High

Primary Investment Objective: To generate long term capital appreciation by investing in a concentrated portfolio of equity & equity related instruments of up to 25 companies. Investment Strategy: The scheme aims to generate long term capital appreciation by investing in a concentrated portfolio of equity & equity related

An Open-ended Equity Scheme investing in maximum 25 stocks investing in large cap, mid cap and small cap companies

11,042.41 8,29,585


exceeding 25 companies) Debt and Money Market Instruments

0 35 Low to Medium


0 10 Medium to High

instruments of up to 25 companies. In order to have a concentrated portfolio, the scheme will follow a bottom up stock selection approach. The portfolio will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a ""Fair value"" based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include companies having a robust business models and enjoying sustainable competitive advantages as compared to their competitors.


Axis Bluechip Fund

Instruments


assets)

Risk Profile

Minimum Maximum

High/ Medium/

Low Equity and Equity Related Instruments of Large Cap companies

80 100 High

Equity and Equity Related Instruments of other companies

0 20 High


0 20 Low to Medium


0 10 Medium to High

Primary Investment Objective: To achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities of Large Cap companies including derivatives. However, there can be no assurance that the investment objective of the Scheme will be achieved. Investment Strategy: The Scheme will invest predominantly in Equity and Equity Related Instruments of Large Cap companies with strong growth and sustainable business models, whilst managing risk. The portfolios will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a “Fair value” based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include companies having robust business models and enjoying sustainable competitive advantages as compared to their competitors.

An open-ended equity scheme predominantly investing in large cap stocks

15,963.00 15,10,841

Axis Multicap Fund

Instruments Normal

allocations (% of total assets)

Risk Profile

Primary Investment Objective: To generate long term capital appreciation by investing in a diversified portfolio of equity and

An open ended equity scheme investing across large cap, mid

6,276.25 4,75,921


Minimum

Maximum

High/ Medium/ Low

Equity and Equity Related Instruments#$

80 100 High

Debt and Money Market Instruments*

0 20 Low to Medium


0 10 Medium to High

equity related instruments across market capitalization. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved Investment Strategy: The Scheme aims to generate capital appreciation by investing in a diversified portfolio of equity & equity related instruments across market capitalization. The Scheme will target undervalued companies that offer opportunities to generate superior capital gains from a medium-to-long term perspective. An indicative set of companies which can offer such potential include – companies whose growth potential is not fully priced by the market, quality companies that are going through near term challenges but with strong long term potential, companies trading at a steep discount to their fair value. The portfolio will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a ""Fair value"" based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include

cap, small cap stocks


companies having a robust business models and enjoying sustainable competitive advantages as compared to their competitors.

Axis Small Cap Fund

Instruments


assets)

Risk Profile

Min Max High/ Medium/Low

Equity and Equity related instruments of small cap companies

65

100

High

Equity and Equity Related Instruments of non-small cap Companies

0

35

High

Debt* & Money Market Instruments

0

35

Low to Mediu

m Units issued by REITs & InvITs

0 10 Medium to High

Primary Investment Objective: To generate long-term capital appreciation from a diversified portfolio of predominantly equity & equity related instruments of small cap companies. Investment Strategy: The scheme intends to generate long term capital appreciation from a diversified portfolio of predominantly equity & equity related instruments of small cap companies.

An open ended equity scheme predominantly investing in small cap stocks

2,471.15 1,96,944

Axis Growth Opportunities Fund

Instruments Normal


Risk Profile

Minimum

Maximum

High/ Medium/ Low

Equity & Equity Related Instruments of

35 65 High

Primary Investment Objective: To generate long term capital appreciation by investing in a diversified portfolio of Equity & Equity Related Instruments both in India as well as overseas. However, there can be no assurance that the investment objective of the Scheme will be achieved. Investment Strategy

A diversified equity portfolio of securities with current or potentially attractive opportunities from both Indian and overseas markets

1,261.61 74,782


Large Cap Stocks #^

Equity & Equity Related Instruments of Mid Cap Stocks #^

35 65 High

Other Equity & Equity Related Instruments

0 30 High

Debt and Money Market Instruments#

0 30 Low to Medium


0 10 Medium to High

^ Includes Foreign Equity & Equity related instruments up to 35% of the net assets of the fund. # including derivatives instruments to the extent of 70% of the Net Assets as permitted by the Regulations from time to time.

Equity portfolio will be run as a diversified portfolio with a balanced mix of large and mid cap stocks. The Scheme will look at the 3 pillars while constructing the portfolio:

- High quality portfolio - Sustainable growth across

market cycles - Low churn

Portfolio construction would be a combination of both top down and bottom up approach. The top down approach will be based on macro-economic analysis and will be used to arrive at the geographical market and sectors/themes while the bottom-up process will focus on appreciation potential of individual stocks from a fundamental perspective to arrive at the stock selection. The AMC employs a "Fair value" based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include companies having a robust business models and enjoying sustainable competitive advantages as compared to their competitors. Investment in Foreign Securities will be made to capture potential opportunities in equity markets of developed and/or emerging


markets across geographies. Investment could also be made in themes/brands/market leaders present in these specific markets that cannot be played through the domestic economy either because these are not present or the companies are not listed on an exchange in India. The portfolio will have an absolute return focus. That is the fund manager will not look at the market cycles but will try to generate returns while minimizing the potential for downside. Thus the Scheme will have the leeway to take a higher allocation to cash in case the fund manager is not able to find appropriate stocks at acceptable valuations at any time. The Scheme by utilising a holistic risk management strategy will endeavour to manage risks associated with investing in equity markets. The Scheme has identified the following risks and designed risk management strategies, which are embedded in the investment process to manage these risks i. Quality Risk - Risk of investing in unsustainable / weak companies. ii. Price Risk - Risk of overpaying for a company iii. Liquidity Risk - High Impact cost of entry and exit iv. Volatility Risk - Volatility in price due to company or portfolio specific factors


v. Event Risk - Price risk due to a company / sector specific or market event

Axis ESG Equity Fund

Instruments Normal


Risk Profile

Minimum

Maximum

High/ Medium/ Low

Equity and equity related instruments following Environmental, Social and Governance (ESG) criteria#

80 100

High

Other equities and equity related instruments

0 20

High

Debt & Money Market Instruments 0 20

Low to Medium

Units issued by REIT/InVIT 0 10

Medium to High

Primary Investment Objective: To generate long term capital appreciation by investing in a diversified portfolio of companies demonstrating sustainable practices across Environmental, Social and Governance (ESG) parameters. Investment Strategy ESG represents factors viz. Environmental (such as impact of business on natural resources), Social (such as business having social impact) and Governance (being the way in which the company is run). Quality companies with a competitive advantage, sustainable business model and visibility of earnings growth are the best avenues for long term wealth generation. ESG factors can complement traditional tools of evaluating and identifying quality businesses and thus improve the overall understanding of the company.

An Open ended equity scheme investing in companies following Environment, Social and Governance (ESG) theme

1,724.33 51,653


D. WHERE WILL THE SCHEME INVEST? The corpus of the Scheme will be invested in Equity & Equity Related Instruments, Debt Instruments, Money Market Instruments and other permitted securities which will include but not limited to: Equity and Equity Related Instruments 1. Equity share is a security that represents ownership interest in a company. 2. Equity Related Instruments are securities which give the holder of the security right to

receive Equity Shares on pre agreed terms. It includes convertible bonds, convertible debentures, equity warrants, convertible preference shares, etc.

3. Foreign Equity and Equity Related Instrument as may be permitted by SEBI/RBI from time to time.

4. Equity Derivatives are financial instruments, generally traded on an exchange, the price of which is directly dependent upon (i.e., “derived from”) the value of equity shares or equity indices. Derivatives involve the trading of rights or obligations based on the underlying, but do not directly transfer property.

Futures: Futures are exchange-traded contracts to sell or buy financial instruments for future delivery at an agreed price. There is an agreement to buy or sell a specified quantity of financial instrument on a designated future date at a price agreed upon by the buyer and seller at the time of entering into a contract. To make trading possible, the exchange specifies certain standardized features of the contract. A futures contract involves an obligation on both the parties to fulfill the terms of the contract. SEBI has permitted futures contracts on indices and individual stocks with maturity of 1 month, 2 months and 3 months on a rolling basis. The futures contracts are settled on last Thursday (or immediately preceding trading day if Thursday is a trading holiday) of each month. Currently, the futures are settled in cash. The final settlement price is the closing price of the underlying stock(s)/index. Options: Option is a contract which provides the buyer of the option (also called holder) the right, without the obligation, to buy or sell a specified asset at the agreed price on or upto a particular date. For acquiring this privilege, the buyer pays premium (fee) to the seller. The seller on the other hand has the obligation to buy or sell specified asset at the agreed price and for this obligation he receives premium. The premium is determined considering number of factors such as the market price of the underlying asset/security, number of days to expiry, risk free rate of return, strike price of the option and the volatility of the underlying asset. Option contracts are of two types viz: Call Option - The option that gives the buyer the right but not the obligation to buy specified quantity of the underlying asset at the strike price is a call option. The buyer of the call option (known as the holder of call option) can call upon the seller of the option (writer of the option) and buy from him the underlying asset at the agreed price at any time on or before the expiry of the option. The seller (writer of the option) on the other hand has the obligation to sell the underlying asset if the buyer of the call option decides to exercise his option to buy. Put Option – The option that gives the buyer the right but not the obligation to sell is called put option. A Put option gives the holder (buyer) the right to sell specified quantity of the underlying asset at the strike price.


There are two kind of options based on the date of exercise of right. The first is the European Option which can be exercised only on the maturity date. The second is the American Option which can be exercised on or before the maturity date. Debt Instruments & Money Market Instruments Certificate of Deposit Certificate of Deposit (CD) is a negotiable money market instrument issued by scheduled commercial banks and select all-India Financial Institutions that have been permitted by the RBI to raise short term resources. The maturity period of CDs issued by the Banks is between 7 days to one year, whereas, in case of FIs, maturity is one year to 3 years from the date of issue. Commercial Paper (CP) Commercial Paper is an unsecured negotiable money market instrument issued in the form of a promissory note, generally issued by the corporates, primary dealers and all India Financial Institutions as an alternative source of short term borrowings. CP is traded in secondary market and can be freely bought and sold before maturity. Treasury Bill (T-Bills) Treasury Bills are issued by the Government of India to meet their short term borrowing requirements. T-Bills are issued for maturities of 14 days, 91 days, 182 days and 364 days. The Scheme may also invest in Cash Management Bill (CMB) issued by the Government of India to meet their short term borrowing requirements. CMB are generally issued for maturities of less than 91 days. Commercial Usance Bills Bill (bills of exchange/promissory notes of public sector and private sector corporate entities) Rediscounting, usance bills and commercial bills. Repos Repo (Repurchase Agreement) or Reverse Repo is a transaction in which two parties agree to sell and purchase the same security with an agreement to purchase or sell the same security at a mutually decided future date and price. The transaction results in collateralized borrowing or lending of funds. Presently in India, corporate debt securities, Government Securities, State Government Securities and T-Bills are eligible for Repo/ Reverse Repo. Tri-party repo means a repo contract where a third entity (apart from the borrower and lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction. The Scheme may undertake repo or reverse repo transactions in accordance with the directions issued by RBI and SEBI from time to time. Such investment shall be made subject to the guidelines which may be prescribed by the Board of Directors of the Asset Management Company and Trustee Company. Securities created and issued by the Central and State Governments as may be permitted by RBI, securities guaranteed by the Central and State Governments (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills). State Government securities (popularly known as State Development Loans or SDLs) are issued by the respective State Government in co-ordination with the RBI. Non-Convertible Debentures and Bonds Non-convertible debentures as well as bonds are securities issued by companies / institutions promoted / owned by the Central or State Governments and statutory bodies which may or


may not carry a Central/State Government guarantee, Public and private sector banks, all India Financial Institutions and Private Sector Companies. These instruments may be secured or unsecured against the assets of the Company and generally issued to meet the short term and long term fund requirements. These instruments may have fixed or floating rate coupon. The Scheme may also invest in the non-convertible part of convertible debt securities. Real Estate Investment Trust (REITs) & Infrastructure Investment Trust (InvIT) REIT/ InvITs is a trust which holds real estate or infrastructure assets respectively which is managed by an investment manager. The unitholders in the trust have proportional interest in the underlying holdings of the trust. Securitized Assets Securitization is a structured finance process which involves pooling and repackaging of cashflow producing financial assets into securities that are then sold to investors. They are termed as Asset Backed Securities (ABS) or Mortgage Backed Securities (MBS). ABS are backed by other assets such as credit card, automobile or consumer loan receivables, retail installment loans or participations in pools of leases. Credit support for these securities may be based on the underlying assets and/or provided through credit enhancements by a third party. MBS is an asset backed security whose cash flows are backed by the principal and interest payments of a set of mortgage loans. Such Mortgage could be either residential or commercial properties. ABS/MBS instrument reflect the undivided interest in the underlying assets and do not represent the obligation of the issuer of ABS/MBS or the originator of underlying receivables. Securitization often utilizes the services of SPV. Pass through Certificate (PTC) Pay through or other Participation Certificates represents beneficial interest in an underlying pool of cash flows. These cash flows represent dues against single or multiple loans originated by the sellers of these loans. These loans are given by banks or financial institutions to corporates. PTCs may be backed, but not exclusively, by receivables of personal loans, car loans, two wheeler loans and other assets subject to applicable regulations. The following are certain additional disclosures w.r.t. investment in securitized debt: 1. How the risk profile of securitized debt fits into the risk appetite of the Scheme Securitized debt is a form of conversion of normally non-tradable loans to transferable securities. This is done by assigning the loans to a special purpose vehicle (a trust), which in turn issues Pass-Through-Certificates (PTCs). These PTCs are transferable securities with fixed income characteristics. The risk of investing in securitized debt is similar to investing in debt securities. However, it differs in two respects. Typically, the liquidity of securitized debt is less than similar debt securities. For certain types of securitized debt (backed by mortgages, personal loans, credit card debt, etc.), there is an additional pre-payment risk. Pre-payment risk refers to the possibility that loans are repaid before they are due, which may reduce returns if the re-investment rates are lower than initially envisaged. Because of these additional risks, securitized debt typically offers higher yields than debt securities of similar credit rating and maturity. If the fund manager judges that the additional risks are suitably compensated by the higher returns, he may invest in securitized debt up to the limits specified in the asset allocation table above. 2. Policy relating to originators based on nature of originator, track record, NPAs, losses in

earlier securitized debt, etc.


The originator is the person who has initially given the loan. The originator is also usually responsible for servicing the loan (i.e. collecting the interest and principal payments). An analysis of the originator is especially important in case of retail loans as this affects the credit quality and servicing of the PTC. The key risk is that of the underlying assets and not of the originator. For example, losses or performance of earlier issuances does not indicate quality of current series. However, such past performance may be used as a guide to evaluate the loan standards, servicing capability and performance of the originator. Originators may be: Banks, Non-Banking Finance Companies, Housing Finance Companies, etc. The fund manager / credit analyst evaluates originators based on the following parameters • Track record • Willingness to pay, through credit enhancement facilities etc. • Ability to pay • Business risk assessment, wherein following factors are considered:

- Outlook for the economy (domestic and global) - Outlook for the industry - Company specific factors

In addition, a detailed review and assessment of rating rationale is done including interactions with the originator as well as the credit rating agency. The following additional evaluation parameters are used as applicable for the originator / underlying issuer for pool loan and single loan securitization transactions: • Default track record/ frequent alteration of redemption conditions / covenants • High leverage ratios of the ultimate borrower (for single-sell downs) – both on a

standalone basis as well on a consolidated level/ group level • Higher proportion of reschedulement of underlying assets of the pool or loan, as the case

may be • Higher proportion of overdue assets of the pool or the underlying loan, as the case may

be • Poor reputation in market • Insufficient track record of servicing of the pool or the loan, as the case may be. 3. Risk mitigation strategies for investments with each kind of originator An analysis of the originator is especially important in case of retail loans as the size and reach affects the credit quality and servicing of the PTC. In addition, the quality of the collection process, infrastructure and follow-up mechanism; quality of MIS; and credit enhancement mechanism are key risk mitigants for the better originators / servicers. In case of securitization involving single loans or a small pool of loans, the credit risk of the underlying borrower is analyzed. In case of diversified pools of loans, the overall characteristic of the loans is analyzed to determine the credit risk. The credit analyst looks at ageing (i.e. how long the loan has been with the originator before securitization) as one way of evaluating the performance potential of the PTC. Securitization transactions may include some risk mitigants (to reduce credit risk). These may include interest subvention (difference in interest rates on the underlying loans and the PTC serving as margin against defaults), overcollateralization (issue of PTCs of lesser value than the underlying loans, thus even if some loans default, the PTC continues to remain protected), presence of an equity / subordinate tranche (issue of PTCs of differing seniority when it comes to repayment - the senior tranches get paid before the junior tranche) and / or guarantees. 4. The level of diversification with respect to the underlying assets, and risk mitigation

measures for less diversified investments


In case of securitization involving single loans or a small pool of loans, the credit risk of the borrower is analyzed. In case of diversified pools of loans, the overall characteristic of the loans is analyzed to determine the credit risk. The credit analyst looks at ageing (i.e. how long the loan has been with the originator before securitization) as one way of judging the performance potential of the PTC. Additional risk mitigants may include interest subvention, over collateralization, presence of an equity / subordinate tranche and / or guarantees. The credit analyst also uses analyses by credit rating agencies on the risk profile of the securitized debt. Currently, the following parameters are used while evaluating investment decision relating to a pool securitization transaction. The Investment Review Committee may revise the parameters from time to time. Characteristics/ Type of Pool

Mortgage Loan

Commercial Vehicle and Construction Equipment

CAR 2 wheelers

Micro Finance Pools *

Personal Loans *

Single Sell Downs

Others

Approximate Average maturity (in Months)

Up to 10 years

Up to 3 years Up to 3 years

Up to 3 years

NA NA Refer Note 1

Refer Note 2

Collateral margin (including cash guarantees, excess interest spread, subordinate tranche)

>10% >10% >10% >10% NA NA “ “

Average Loan to Value Ratio

<90% <80% <80% <80% NA NA “ “

Average seasoning of the Pool

>3 months

>3 months >3 months

>3 months

NA NA “ “

Maximum single exposure range

<1% <1% <1% <1% NA NA “ “

Average single exposure range %

<1% <1% <1% <1% NA NA “ “

* Currently, the Scheme will not invest in these types of securitized debt Note 1: In case of securitization involving single loans or a small pool of loans, the credit risk of the borrower is analyzed. The investment limits applicable to the underlying borrower are applied to the single loan sell-down. Note 2: Other investments will be decided on a case-to-case basis The credit analyst may consider the following risk mitigating measures in his analysis of the securitized debt: • Size of the loan • Average original maturity of the pool • Loan to Value Ratio • Average seasoning of the pool • Default rate distribution • Geographical Distribution • Credit enhancement facility • Liquid facility


• Structure of the pool 5. Minimum retention period of the debt by originator prior to securitization Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the "true sale" criteria including credit enhancement and liquidity enhancements. In addition, RBI has proposed minimum holding period of between nine and twelve months for assets before they can be securitized. The minimum holding period depends on the tenor of the securitization transaction. The Scheme will invest in securitized debts that are compliant with the laws and regulations. 6. Minimum retention percentage by originator of debts to be securitized Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the "true sale" criteria including credit enhancement and liquidity enhancements, including maximum exposure by the originator in the PTCs. In addition, RBI has proposed minimum retention requirement of between five and ten percent of the book value of the loans by the originator. The minimum retention requirement depends on the tenor and structure of the securitization transaction. The Fund will invest in securitized debts that are compliant with the laws and regulations. 7. The mechanism to tackle conflict of interest when the mutual fund invests in securitized

debt of an originator and the originator in turn makes investments in that particular scheme of the fund

The key risk is securitized debt relates to the underlying borrowers and not the originator. In a securitization transaction, the originator is the seller of the debt(s) and the fund is the buyer. However, the originator is also usually responsible for servicing the loan (i.e. collecting the interest and principal payments). As the originators may also invest in the scheme, the fund manager shall ensure that the investment decision is based on parameters as set by the Investment Review Committee (IRC) of the Asset Management Company and IRC shall review the same at regular interval. 8. The resources and mechanism of individual risk assessment with the AMC for monitoring

investment in securitized debt The fund management team including the credit analyst has the experience to analyze securitized debt. In addition, credit research agencies provide analysis of individual instruments and pools. On an on-going basis (typically monthly) the servicer provides reports regarding the performance of the pool. These reports would form the base for ongoing evaluation where applicable. In addition, rating reports indicating rating changes would be monitored for changes in rating agency opinion of the credit risk. Debt derivative instruments Interest Rate Swap An Interest Rate Swap (IRS) is a financial contract between two parties exchanging or swapping a stream of interest payments for a “notional principal” amount on multiple occasions during a specified period. Such contracts generally involve exchange of a “fixed to floating” or “floating to fixed rate” of interest. Accordingly, on each payment date that occurs during the swap period, cash payments based on fixed/ floating and floating rates are made by the parties to one another. Forward Rate Agreement A Forward Rate Agreement (FRA) is a financial contract between two parties to exchange interest payments for a ‘notional principal’ amount on settlement date, for a specified period from start date to maturity date. Accordingly, on the settlement date, cash payments based on contract (fixed) and the settlement rate, are made by the parties to one another.


The settlement rate is the agreed bench-mark/ reference rate prevailing on the settlement date. Interest Rate Futures: A futures contract is a standardized, legally binding agreement to buy or sell a commodity or a financial instrument in a designated future month at a market determined price (the futures price) by the buyer and seller. The contracts are traded on a futures exchange. An Interest Rate Future is a futures contract with an interest bearing instrument as the underlying asset. Characteristics of Interest Rate Futures 1. Obligation to buy or sell a bond at a future date 2. Standardized contract 3. Exchange traded 4. Physical settlement 5. Daily mark to market Foreign Securities The Scheme may also invest in suitable investment avenues in foreign securities in overseas financial markets for the purpose of diversification, commensurate with the Scheme objectives and subject to necessary stipulations by SEBI / RBI. Towards this end, the Mutual Fund may also appoint overseas investment advisors and other service providers, to the extent permissible under the Regulations. The Scheme may, with the approval of SEBI / RBI, where required invest in: • ADRs (American Depository Receipts)/ GDRs (Global Depository Receipts) issued by

Indian or foreign companies • Equity of overseas companies listed on recognized stock exchanges overseas • Initial and follow on public offerings for listing at recognized stock exchanges overseas • Foreign debt securities in the countries with fully convertible currencies, short term as well

as long term debt instruments with rating not below investment grade by accredited/registered credit rating agencies

• Money market instruments rated not below investment grade • Repos in the form of investment, where the counterparty is rated not below investment

grade; repos shall not however, involve any borrowing of funds by the mutual funds • Government securities where the countries are rated not below investment grade • Derivatives traded on recognized stock exchanges overseas only for hedging and

portfolio balancing with underlying as securities • Short term deposits with banks overseas where the issuer is rated not below investment

grade • Units/securities issued by overseas mutual funds or unit trusts registered with overseas

regulators and investing in (a) aforesaid securities, or (b) unlisted overseas securities (not exceeding 10% of their net assets).

Note: The Scheme will not invest in foreign securitized debt. As per SEBI circular no. SEBI/IMD/CIR No.7/104753/07 dated September 26, 2007, mutual funds can make overseas investments (other than overseas ETF) subject to a maximum of US $300 million and in overseas ETF subject to a maximum $50 million or such limits as may be prescribed by SEBI from time to time. Subject to the approval of RBI / SEBI and conditions as may be prescribed by them, the Mutual Fund may open one or more foreign currency accounts abroad either directly, or through the custodian/sub-custodian, to facilitate investments and to enter into/deal in forward currency contracts, currency futures, interest rate futures / swaps, currency options for the purpose of hedging the risks of assets of a


portfolio or for its efficient management. However, the use of such instruments shall be as permitted from time to time. All the requirement of the SEBI circular dated September 26, 2007, would be adhered to by the AMC for investment in foreign securities. Investment in overseas securities shall be made in accordance with the requirements stipulated by SEBI and RBI from time to time. Units of Mutual Fund schemes The Scheme may invest in other schemes managed by the AMC or in the schemes of any other mutual funds in conformity with the investment objective of the Scheme and in terms of the prevailing SEBI (MF) Regulations. Short Term Deposits Pending deployment of funds as per the investment objective of the Scheme, the funds may be parked in short term deposits of the Scheduled Commercial Banks, subject to guidelines and limits specified by SEBI. The securities / instruments mentioned above and such other securities the Scheme is permitted to invest in could be listed, unlisted, privately placed, secured, unsecured, rated or unrated and of any maturity. The securities may be acquired through initial public offering (IPOs), secondary market, private placement, rights offers, negotiated deals, etc. Further investments in debentures, bonds and other fixed income securities will be in instruments which have been assigned investment grade rating by the Credit Rating Agency. Investment in unrated debt instruments shall be subject to complying with the norms as specified by Board from time to time. For applicable regulatory investment limits please refer paragraph "Investment Restrictions”. Details of various derivative instruments along with derivative strategies have been provided under the paragraph “Derivatives Strategy”.

The Fund Manager may invest in any other security as may be permitted from time to time and which are in line with the investment objectives of the Scheme. E. WHAT ARE THE INVESTMENT STRATEGIES The Scheme will invest predominantly in Equity and Equity Related Instruments of Large Cap companies with strong growth and sustainable business models, whilst managing risk. The portfolios will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a “Fair value” based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include companies having robust business models and enjoying sustainable competitive advantages as compared to their competitors. The Schemes portfolio will be managed actively, with an objective to provide to the investor, a diversified portfolio of strong growth companies, reflecting our most attractive investment ideas, at all points in time. The Scheme by utilizing a holistic risk management strategy will endeavour to manage risks associated with investing in equity markets. The Scheme has identified the following risks and


designed risk management strategies, which are embedded in the investment process to manage these risks: i) Quality risk – Risk of investing in unsustainable/weak companies ii) Price risk - Risk of overpaying for a company iii) Liquidity risk- High impact cost of entry and exit iv) Volatility risk –Volatility in price due to company or portfolio specific factors v) Event risk - Price risk due to a company/sector specific or market event PORTFOLIO TURNOVER The Scheme is an open-ended scheme. It is expected that there would be a number of subscriptions and redemptions on a daily basis. Consequently, it is difficult to estimate with any reasonable measure of accuracy, the likely turnover in the portfolio. There may be an increase in transaction cost such as brokerage paid, if trading is done frequently. However, the cost would be negligible as compared to the total expenses of the Scheme. Frequent trading may increase the profits which will offset the increase in costs. The fund manager will endeavor to optimize portfolio turnover to maximize gains and minimize risks keeping in mind the cost associated with it. However, it is difficult to estimate with reasonable accuracy, the likely turnover in the portfolio of the Scheme. The Scheme has no specific target relating to portfolio turnover RISK CONTROL Risk is an inherent part of the investment function. Effective Risk Management is critical to Fund Management for achieving financial soundness. Investments by the Scheme shall be made as per the investment objectives of the Scheme and provisions of the Regulations. Risk control would include managing risk in order to keep it in line with the investment objective of the Scheme. The AMC has incorporated adequate safeguards to manage risk in the portfolio construction process. The risk control process involves identifying & measuring the risk through various Risk Measurement Tools. Further, the AMC has implemented the Bloomberg Portfolio Management System as Front Office System (FOS) for managing risk. The system has inbuilt feature which enables the Fund Manager to calculate various risk ratios and analyze the same. The AMC has experienced investment professionals to help limit investment universe to carefully selected high quality businesses. The fund manager would also consider hedging the portfolios in case of predictable events with uncertain outcomes. The Scheme would invest in a diversified portfolio of equity and equity related securities which would help alleviate the sector related concentration risk. DERIVATIVES STRATEGY The Scheme may invest in various derivative instruments which are permissible under the applicable regulations. Such investments shall be subject to the investment objective and strategy of the Scheme and the internal limits if any, as laid down from time to time. These include but are not limited to futures (both stock and index) and options (stock and index). Derivatives are financial contracts of pre-determined fixed duration, like stock futures/options and index futures and options, whose values are derived from the value of an underlying primary financial instrument such as: interest rates, exchange rates, commodities, and equities.


Derivatives can be either exchange traded or can be over the counter (OTC). Exchange traded derivatives are listed and traded on stock exchanges whereas OTC derivative transactions are generally structured between two counterparties. The objectives of the various strategies include earning option premium/ hedge stock / portfolio against market gyrations. The risks associated with derivatives are similar to those associated with underlying investments. The additional risks of using derivative strategies could be on account of: • Illiquidity; • Potential mis - pricing of the Futures/Options; • Lack of opportunity; • Inability of derivatives to correlate perfectly with the underlying (Indices, Assets,

Exchange Rates); • Cost of hedge can be higher than adverse impact of market movements; • An exposure to derivatives in excess of the hedging requirements can lead to losses; • An exposure to derivatives can also limit the profits from a genuine investment

transaction; • The prices which are seen on the screen need not be the same at which execution will

take place. • In case of option writing, the downside of the strategy could be more than the option

premium earned.

For detailed risks associated with use of derivatives, please refer paragraph “Scheme Specific Risk Factors”. Exchange traded derivatives Contracts in stocks and indices in India are currently cash settled at the time of maturity. Derivatives allowed for mutual funds are only exchange traded and not OTC. Concepts and Examples of derivatives which may be used by the fund manager: Futures Futures (Index & Stocks) are forward contracts traded on the exchanges & have been introduced both by BSE and NSE. Generally, futures of 1 month (near month), 2 months (next month) and 3 months (far month) are presently traded on these exchanges. These futures expire on the last working Thursday of the respective months. Illustration with Index Futures In case the Nifty 50 near month future contract is trading at say, Rs. 3,510, and the fund manager has a view that it will depreciate going forward; the Scheme can initiate a sale transaction of Nifty futures at Rs. 3,510 without holding a portfolio of equity stocks or any other underlying long equity position. Once the price falls to Rs. 3,400 after say, 20 days, the Scheme can initiate a square-up transaction by buying the said futures and book a profit of Rs. 110. Correspondingly, if the fund manager has a positive view he can initiate a long position in the index / stock futures without an underlying cash/ cash equivalent subject to the extant regulations. There are futures based on stock indices as mentioned above as also futures based on individual stocks. The profitability of index /stock future as compared to an individual security will inter-alia depends upon: • The carrying cost, • The interest available on surplus funds, and


• The transaction cost. Example of a typical future trade and the associated costs

Particulars Index Future

Actual Purchase of Stocks

Index at the beginning of the month 3500 3500 Price of 1 month future 3510 A. Execution cost: Carry and other index future costs 10 B. Brokerage cost: Assumed at 7.02 8.75 0.2% of Index Future 0.25% for spot Stocks C. Gains on surplus fund: (Assumed 8% p.a. return on 85% of the money left after paying 15% margin) (8%*3500*85%*30 days/ 365)

19.56 0

Total Cost (A+B-C) -2.54 8.75 Some strategies that employ stock /index futures and their objectives: (a) Arbitrage (1) Selling spot and buying future: In case the Scheme holds the stock of a company “A” at say Rs. 100 while in the futures market it trades at a discount to the spot price say at Rs. 98, then the Scheme may sell the stock and buy the futures. On the date of expiry of the stock future, the Scheme may reverse the transactions (i.e. buying at spot & selling futures) and earn a risk-free Rs. 2 (2% absolute) on its holdings without any dilution of the view of the fund manager on the underlying stock. Further, the Scheme can still benefit from any movement of the price in the upward direction, i.e. if on the date of expiry of the futures, the stock trades at Rs. 110 which would be the price of the futures too, the Scheme will have a benefit of Rs 10 whereby the Scheme gets the 10% upside movement together with the 2% benefit on the arbitrage and thus getting a total return of 12%. The corresponding return in case of holding the stock would have been 10%. Note: The same strategy can be replicated with a basket of Nifty- 50 stocks (Synthetic Nifty) and the Nifty future index. (2) Buying spot and selling future: Where the stock of a company “A” is trading in the spot market at Rs. 100 while it trades at Rs. 102 in the futures market, then the Scheme may buy the stock at spot and sell in the futures market thereby earning Rs. 2. Buying the stock in cash market and selling the futures results into a hedge where the Scheme has locked in a spread and is not affected by the price movement of cash market and futures market. The arbitrage position can be continued till expiry of the future contracts when there is a convergence between the cash market and the futures market. This convergence enables the Scheme to generate the arbitrage return locked in earlier. Risk: On the date of expiry, when the arbitrage is to be unwound, it is not necessary for the stock price and its future contract to coincide. There could be a discrepancy in their prices even a minute before the market closes. Thus, there is a possibility that the arbitrage strategy gets unwound at different prices. (b) Buying/ Selling Stock future:


When the Scheme wants to initiate a long position in a stock whose spot price is at say, Rs.100 and futures is at 98, then the Scheme may just buy the futures contract instead of the spot thereby benefiting from a lower cost. In case the Scheme has a bearish view on a stock which is trading in the spot market at Rs.98 and the futures market at say Rs. 100, the Scheme may subject to regulations, initiate a short position in the futures contract. In case the prices align with the view and the price depreciates to say Rs. 90, the Scheme can square up the short position thereby earning a profit of Rs.10 vis-a-vis a fall in stock price of Rs. 8. Risk: There is risk of not being able to correctly forecast future market trends or the value of assets, indices or other financial or economic factors in establishing derivative positions for the Scheme. The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments. The risk of loss in trading futures contracts can be substantial, because of the low margin deposits required, the extremely high degree of leverage involved in futures pricing and the potential high volatility of the futures markets. Investments in index futures face the same risk as the investments in a portfolio of shares representing an index. The extent of loss is the same as in the underlying stocks. (c) Hedging: The Scheme may use exchange-traded derivatives to hedge the equity portfolio. Both index and stock futures and options may be used to hedge the stocks in the portfolio. Risk: This may involve a basic risk where the instrument used as a hedge does not match the movement in the instrument/underlying asset being hedged. The risk may be inter-related also e.g. interest rate movements can affect equity prices, which could influence specific issuer/industry assets. (d) Alpha Strategy: The Scheme will seek to generate alpha by superior stock selection and removing market risks by selling appropriate index. For example, one can seek to generate positive alpha by buying a bank stock and selling Bank Nifty future. Risk: Execution of these strategies depends upon the ability of the fund manager to identify and execute based on such opportunities. These involve significant uncertainties and decision of fund manager may not always be profitable. No assurance can be given that the fund manager will be able to identify or execute such strategies. Option Contracts (Stock and Index) An Option gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed-upon price during a certain period of time or on a specific date. Options are used to manage risk or as an investment to generate income. The price at which underlying security is contracted to be purchased or sold is called the Strike Price. Options that can be exercised on or before the expiration date are called American Options while, Options that can be exercised only on the expiration date are called European Options. Options Risk / Return Pay-off Table

Stock / Index Options Buy Call Sell Call Buy Put Sell Put 1 View on underlying Positive Negative Negative Positive 2 Premium Pay Receive Pay Receive 3 Risk Potential Limited to

premium paid Unlimited Limited to

premium paid Unlimited


4 Return Potential Unlimited Premium Received

Unlimited Premium Received

Option contracts are of following two types - Call and Put: Call Option: A call option gives the buyer, the right to buy specified quantity of the underlying asset at the set strike price on or before expiration date and the seller (writer) of call option however, has the obligation to sell the underlying asset if the buyer of the call option decides to exercise the option to buy. Put Option: A put option gives the buyer the right to sell specified quantity of the underlying asset at the set strike price on or before expiration date and the seller (writer) of put option however, has the obligation to buy the underlying asset if the buyer of the put option decides to exercise his option to sell. Risk: The options buyer's risk is limited to the premium paid. However the gains of an options writer are limited to the premiums earned. The exchange may impose restrictions on exercise of options and may also restrict the exercise of options at certain times in specified circumstances and this could impact the value of the portfolio. The writer of a call option bears a risk of loss if the value of the underlying asset increases above the exercise price. The Scheme bears a risk that it may not be able to correctly forecast future market trends or the value of assets, indices or other financial or economic factors in establishing derivative positions for the Scheme. Index Options / Stock Options Index options / Stock options are termed to be an efficient way of buying / selling an index/stock compared to buying / selling a portfolio of physical shares representing an index for ease of execution and settlement. The participation can be done by buying / selling either Index futures or by buying a call/put option. The risk are also different when index /stock futures are bought/sold vis-a-vis index/ stocks options as in case of an index future there is a mark to market variation and the risk is much higher as compared to buying an option, where the risk is limited to the extent of premium paid. The illustration below explains how one can gain using Index call / put option. These same principles of profit / loss in an Index option apply in totality to that for a stock option. Call Option Suppose an investor buys a Call option on 1 lot of Nifty 50 (Lot Size: 50 units) • Nifty index (European option). • Nifty 1 Lot Size: 50 units • Spot Price (S): 3500 • Strike Price (x): 3550 (Out-of-Money Call Option) • Premium: 100 Total Amount paid by the investor as premium [50*100] = Rs. 5,000 There are two possibilities i.e. either the index moves up over the strike price or remains below the strike price. Case 1- The index goes up • An investor sells the Nifty Option described above before expiry: Suppose the Nifty 50 Index moves up to 3600 in the spot market and the premium has moved to Rs 200 and there are 15 days more left for the expiry. The investor decides to reverse his position in the market by selling his 1 Nifty call option as the option now is In the Money.


His gains are as follows: • Nifty Spot: 3600 • Current Premium: Rs.200 • Premium paid: Rs.100 • Net Gain: Rs.200- Rs.100 = Rs.100 per unit • Total gain on 1 lot of Nifty (50 units) = Rs.5,000 (50*100) In this case the premium of Rs.200 has an intrinsic value of Rs.50 per unit and the remaining Rs.150 is the time value of the option. • An investor exercises the Nifty Option at expiry Suppose the Nifty index moves up to 3700 in the spot market on the expiry day and the investor decides to reverse his position in the market by exercising the Nifty call option as the option now is In The Money. His gains are as follows: • Nifty Spot: 3700 • Premium paid: Rs.100 • Exercise Price: 3550 • Receivable on exercise: 3700-3550 = 150 • Total Gain: Rs.2500 {(150-100)*50} In this case the realised gain is only the intrinsic value, which is Rs.50, and there is no time value. Case 2 - The Nifty index moves to any level below 3550 Then the investor does not gain anything but on the other hand his loss is limited to the premium paid: Net Loss is Rs. 5,000 (Loss is capped to the extent of Premium Paid) (Rs. 100 Premium paid*Lot Size: 50 units). Put Option Suppose an investor buys a Put option on 1 lot of Nifty 50. • Nifty 1 Lot Size: 50 units • Spot Price (S): 3,500 • Strike Price (x): 3,s450 (Out-of-Money Put Option) • Premium: Rs. 30 • Total Amount paid by the investor as premium [50*30] = Rs. 1,500 There are two possibilities i.e. either the index moves over the strike price or moves below the strike price. Let us analyze these scenarios. Case 1 - The index goes down • An investor sells the Nifty Option before expiry: Suppose the Nifty 50 Index moves down to 3400 in the spot market and the premium has moved to Rs. 80 and there are 15 days more left for the expiry. The investor decides to reverse his position in the market by selling his 1 Nifty Put Option as the option now is In The Money. His gains are as follows: • Nifty Spot: 3,400 • Premium paid: Rs.30 • Net Gain: Rs.80 - Rs.30 = Rs.50 per unit • Total gain on 1 lot of Nifty (50 units) = Rs. 2,500 (50*50) In this case the premium of Rs.80 has an intrinsic value of Rs.50 per unit and the remaining Rs.30 is the time value of the option.


An investor exercises the Nifty Option at expiry (It is an European Option) Suppose the Nifty index moves down to 3400 in the spot market on the expiry day and the investor decides to reverse his position in the market by exercising the Nifty Put Option as the option now is In The Money. His gains are as follows: • Nifty Spot: 3400 • Premium paid: Rs.30 • Exercise Price: 3450 • Gain on exercise: 3450-3400 = 50 • Total Gain: Rs. 1,000 {(50-30)*50} In this case the realised amount is only the intrinsic value, which is Rs.50, and there is no time value in this case. Case 2 - If the Nifty 50 Index stays over the strike price which is 3450, in the spot market then the investor does not gain anything but on the other hand his loss is limited to the premium paid. • Nifty Spot: >3450 • Net Loss Rs. 1,500 (Loss is caped to the extent of Premium Paid) (Rs. 30 Premium paid*Lot Size: 50 units). Covered Call Strategy The covered call strategy is a strategy where a fund manager writes call options against an equivalent long position in an underlying stock thereby giving up a part of the upside from the long position. The strategy allows the fund manager to earn premium income from the option writing in addition being able to capture the remaining part of the upside. Assumptions: Current price of stock A: Rs. 27.87 per share 1 contract = 100 shares Total no of contracts: 10 Strike price: Rs. 30/- per share Premium: Rs. 0.35 per share Suppose, on October 6, 2018, the writer of the call owns 1,000 shares of Company A, which is currently trading at Rs. 27.87 per share. The writer of the call writes 10 call option contracts for company A with a strike price of Rs. 30 per share that expires in January 2019. The writer receives premium of 0.35 per share for the calls, which equals Rs. 35.00 per contract for a total of Rs. 350.00. Total premium = (Rs. 0.35 per share) * (100 shares per contract) * (10 contracts) = Rs. 350. The following can be the scenarios reflecting risks and benefits at the end of the option expiry: Case 1 - Stock falls below current price of Rs. 27.87 per share: The option expires worthless. Hence the loss from the stock position gets reduced to the extent of the premium income. Case 2 - Stock goes up above current price but remains below Rs. 30 per share (strike price): The option expires worthless. Hence the income from the gains in the stock price gets further boosted to the extent of the premium income.


Case 3 - Stock goes above Rs. 30 per share: Option position goes out of the money for the writer but the losses from the option position are matched by the gains from the underlying stock position above Rs. 30 per share. Hence the return from the position is equal to the return from stock upto the strike price of Rs. 30 per share and the premium income from the option. Benefits of using Covered Call Strategy in Mutual Funds: The covered call strategy can be followed by the Fund Manager in order to hedge risk thereby resulting in better risk adjusted returns of the Scheme. The strategy offers the following benefits:

a) Hedge against market risk - Since the fund manager sells a call option on a stock already owned by the mutual fund scheme, the downside from fall in the stock price would be lower to the extent of the premium earned from the call option.

b) Generating additional returns in the form of option premium in a range bound market. Thus, a covered call strategy involves gains for unit holders in case the strategy plays out in the right direction. Risk associated with covered calls The risk associated with covered calls is the loss of upside, i.e. if the shares are assigned (called away), the option seller forgoes any share price appreciation above the option strike price. Please refer risk factors section on detail derivatives risk factors. Fixed Income Derivative Instruments: The Scheme may use Derivative instruments like interest rate swaps like overnight indexed swaps (OIS), forward rate agreements, interest rate futures (as and when permitted) or such other Derivative instruments as may be permitted under the applicable regulations. Derivatives will be used for the purpose of hedging, and portfolio balancing or such other purpose as may be permitted under the regulations and guidelines from time to time. The Fund will be allowed to take exposure in interest rate swaps only on a non-leveraged basis. A swap will be undertaken only if there is an underlying asset in the portfolio. In terms of circular no. MFD.BC.191/07.01.279/1999-2000 and MPD.BC.187/07.01.279/1999- 2000 dated November 1, 1999 and July 7, 1999 respectively issued by RBI permitting participation by Mutual Funds in interest rate swaps and forward rate agreements, the Scheme will use Derivative instruments for the purpose of hedging and portfolio balancing. The Scheme may also use derivatives for such purposes as maybe permitted from time to time. Further, the guidelines issued by RBI from time to time for forward rate agreements and interest rate swaps and other derivative products would be adhered to by the Mutual Fund. IRS and FRAs do also have inherent credit and settlement risks. However, these risks are substantially reduced as they are limited to the interest streams and not the notional principal amounts. Investments in Derivatives will be in accordance with the extant SEBI Regulations / guidelines. Presently Derivatives shall be used for hedging and / or portfolio balancing purposes, as permitted under the Regulations. The circumstances under which such transactions would be entered into would be when, for example using the IRS route it is possible to generate better returns / meet the objective of the Scheme at a lower cost. e.g. if buying a 2 Yr MIBOR based instrument and receiving the 2 Yr swap rate yields better return than the 2 Yr AAA corporate, the Scheme would endeavor to do that. Alternatively, the Scheme would also


look to hedge existing fixed rate positions if the view on interest rates is that it would likely rise in the future. The following information provides a basic idea as to the nature of the Derivative instruments proposed to be used by the Scheme and the benefits and risks attached therewith. Please note that the examples have been given for illustration purposes only. Using Overnight Indexed Swaps In a rising interest rate scenario, the Scheme may enhance returns for the Investor by hedging the risk on its fixed interest paying assets by entering into an OIS contract where the Scheme agrees to pay a fixed interest rate on a specified notional amount, for a pre-determined tenor and receives floating interest rate payments on the same notional amount. The fixed returns from the Scheme assets and the fixed interest payments to be made by the Scheme on account of the OIS transaction offset each other and the Scheme benefits on the floating interest payments that it receives. The Scheme may enter into an opposite position in case of a falling interest rate scenario, i.e. to hedge the floating rate assets in its portfolio, the Scheme enters into an OIS transaction wherein it receives a fixed interest rate on a specified notional amount for a specified time period and pays a floating interest rate on the same notional amount. The floating interest payments that the Scheme receives on its floating rate securities and the floating interest payments that the Scheme has to pay on account of the OIS transaction offset each other and the Scheme benefits on the fixed interest payments that it receives in such a scenario. Swap Assume that the Scheme has a Rs. 20 crore floating rate investment linked to MIBOR (Mumbai Inter Bank Offered Rate). Hence, the Scheme is currently running an interest rate risk and stands to lose if the interest rate moves down. To hedge this interest rate risk, the Scheme can enter into a 6 month MIBOR swap. Through this swap, the Scheme will receive a fixed predetermined rate (assume 12%) and pays the “benchmark rate” (MIBOR), which is fixed by the NSE or any other agency such as Reuters. This swap would effectively lock-in the rate of 12% for the next 6 months, eliminating the daily interest rate risk. This transaction is usually routed through an intermediary who runs a book and matches deals between various counterparties. The steps will be as follows: Assuming the swap is for Rs. 20 Crores for June 1, 2009 to December 1, 2009. The Scheme is a fixed rate receiver at 12% and the counterparty is a floating rate receiver at the overnight rate on a compounded basis (say NSE MIBOR). On June 1, 2009 the Scheme and the counterparty will exchange only a contract of having entered this swap. This documentation would be as per International Swap Dealers Association (ISDA) norms. On a daily basis, the benchmark rate fixed by NSE will be tracked by them. On December 1, 2009 they will calculate the following: • The Scheme is entitled to receive interest on Rs. 20 Crores at 12% for 184 days i.e. Rs. 1.21

Crores, (this amount is known at the time the swap was concluded) and will pay the compounded benchmark rate.

• The counterparty is entitled to receive daily compounded call rate for 184 days & pay 12% fixed.

• On December 1, 2009, if the total interest on the daily overnight compounded benchmark rate is higher than Rs. 1.21 Crores, the Scheme will pay the difference to the


counterparty. If the daily compounded benchmark rate is lower, then the counterparty will pay the Scheme the difference.

• Effectively the Scheme earns interest at the rate of 12% p.a. for six months without lending money for 6 months fixed, while the counterparty pays interest @ 12% p.a. for 6 months on Rs. 20 Crores, without borrowing for 6 months fixed.

The above example illustrates the use of Derivatives for hedging and optimizing the investment portfolio. Swaps have their own drawbacks like credit risk, settlement risk. However, these risks are substantially reduced as the amount involved is interest streams and not principal. Forward Rate Agreement Assume that on June 30, 2009, the 30 day Commercial Paper (CP) rate is 4% and the Scheme has an investment in a CP of face value Rs. 50 Crores, which is going to mature on July 31, 2009. If the interest rates are likely to remain stable or decline after July 31, 2009, and if the fund manager, who wants to re-deploy the maturity proceeds for 1 more month does not want to take the risk of interest rates going down, he can then enter into a following Forward Rate Agreement (FRA) say as on June 30, 2009: He can receive 1 X 2 FRA on June 30, 2009 at 4.00% (FRA rate for 1 months lending in 1 months time) on the notional amount of Rs. 50 Crores, with a reference rate of 30 day CP benchmark. If the CP benchmark on the settlement date i.e. July 30, 2009 falls to 3.75%, then the Scheme receives the difference 4.00 – 3.75 i.e. 25 basis points on the notional amount Rs. 50 Crores. Interest Rate Futures Assume that the Scheme holds an Indian ten year benchmark and the fund manager has a view that the yields will go up in the near future leading to decrease in value of the investment and subsequent decrease in Net Asset Value of the Scheme. The fund manager decides to use Interest Rate Futures to mitigate the risk of decline of Net Asset Value of the Scheme. 12th October 2009 • The benchmark ten year paper 6.88 2009, is trading at INR 98.00 at a yield of 7.19%. • December 2009 futures contract on the ten year notional 7% coupon bearing

Government paper is trading at a yield of 7.29% at a price of INR 98.50. • The mutual fund decides to hedge the exposure by taking a short position in December

2009 interest rate futures contract. 25th November 2009 • As expected by the fund manager the yield of the benchmark ten year paper has

increased to 8% and the price has decreased to 92.70. • The December 2009 futures contract is trading at a price of INR 93.17 indicating a yield of

8.05% • The mutual fund unwinds the short position by buying the December 2009 futures

contract. The transaction results in profit from the futures position, against the corresponding loss from the Government of India security position.

For details of risk factors relating to use of Derivatives, the investors are advised to refer to Scheme Specific Risk Factors. F. FUNDAMENTAL ATTRIBUTES Following are the Fundamental Attributes of the Scheme, in terms of Regulation 18 (15A) of the SEBI (MF) Regulations:


(i) Type of a Scheme


(ii) Investment Objective Main Objective: To achieve long term capital appreciation by investing in a diversified

portfolio predominantly consisting of equity and equity related securities of large cap companies including derivatives.

However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.

Investment Pattern: Please refer to sub - section C ‘How will the Scheme Allocate its Assets?’ under the section II ‘INFORMATION ABOUT THE SCHEME’.

(iii) Terms of Issue o Liquidity provisions such as listing, Repurchase, Redemption. o Aggregate fees and expenses charged to the Scheme (please refer to section IV “FEES and EXPENSES”). o Any safety or guarantee net provided. – Not applicable for the Scheme

In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustee shall ensure that no change in the fundamental attributes of the Scheme and the Plan(s) / Option(s) thereunder or the trust or fee and expenses payable or any other change which would modify the Scheme and the Plan(s) / Option(s) thereunder and affect the interests of Unit holders is carried out unless: • A written communication about the proposed change is sent to each Unit holder and an

advertisement is given in one English daily newspaper having nationwide 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 for a period of 30 days to exit at the prevailing Net Asset Value without any exit load.

G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? The Scheme performance would be benchmarked against Nifty 50 TRI. The benchmark is a well diversified index accounting for 12 sectors of the economy. It is the most popular and widely followed benchmark to track the performance of the equity market in India. Being a diversified index, it is consistent with the investment objective of the Scheme.

It also covers majority of the sectors where the portfolio might be constructed by the fund manager. The Trustee may change the benchmark in future if a benchmark better suited to the investment objective of the Scheme is available. H. WHO MANAGES THE SCHEME? Name of Fund Manager

Age and Qualification

Experience of the Fund Manager

Names of other schemes under his management

Tenure as Fund Manager of the Scheme

Mr. Shreyash Devalkar

42 years

Bachelor in

• Fund Manager - Axis Asset Management Co. Ltd. (November 16,

Axis Midcap Fund, Axis Equity Advantage Fund

3 years


Chemical Engineering & Masters in Management Studies

2016 till date) • Fund Manager – BNP

Paribas Asset Management India Pvt. Ltd. (January 17, 2011 till November 15, 2016)

• Vice President – Research – IDFC Asset Management Company Ltd. (July 24, 2008 till January 14, 2011)

• Research Analyst – IDFC Securities Ltd. (September 07, 2005 till July 23, 2008)

– Series 1 (Along with Mr. Aditya Pagaria), Axis Equity Advantage Fund – Series 2 (Along with Mr. Aditya Pagaria), Axis Bluechip Fund, Axis Multicap Fund

The Fixed Income Fund Managers of the Mutual Fund will be involved in management of the Debt Component of the Scheme. Further, presently the Trustee/AMC has not designated a dedicated Fund Manager for investment in Foreign Securities. However, it shall be ensured that there is a dedicated fund manager for investment in foreign securities as and when the fund makes investment in foreign securities. I. WHAT ARE THE INVESTMENT RESTRICTIONS? Pursuant to Regulations, specifically the Seventh Schedule and amendments thereto, the following investment restrictions are currently applicable to the Scheme: 1. The Scheme shall not invest more than 10 per cent of its NAV in the equity shares or

equity related instruments of any company. 2. All investments by the Scheme in equity shares and equity related instruments shall only

be made provided such securities are listed or to be listed. 3. The Mutual Fund under all its Scheme(s) shall not own more than ten per cent of any

company’s paid up capital carrying voting rights. Provided, investment in the asset management company or the trustee company of a mutual fund shall be governed by clause (a), of sub-regulation (1), of regulation 7B.

4. The Scheme shall not invest more than 10% of its NAV in debt instruments comprising money market instruments and non-money market instruments issued by a single issuer, which are rated not below investment grade by a credit rating agency authorized to carry out such activity under the SEBI Act, 1992. Such investment limit may be extended to 12% of the NAV of the Scheme with the prior approval of the Trustee and the Board of Directors of AMC. Such limit shall not be applicable for investment in Government Securities, treasury bills and collateralized borrowing and lending obligations. Provided further that investments within such limit can be made in the mortgaged backed securitised debt, which are rated not below investment grade by a credit rating agency, registered with SEBI.

5. The Scheme shall not invest in unlisted debt instruments including commercial papers, except Government Securities, money market instruments and derivative products such as Interest Rate Swaps, Interest Rate Futures, etc. which are used by mutual fund for hedging.

Provided that the Scheme may invest in unlisted non-convertible debentures up to a maximum of 10% of the debt portfolio of the Scheme subject to such conditions as may be specified by the Board from time to time.


Provided further that the Scheme shall comply with the norms under this clause within the time and in the manner as may be specified by the Board. Further the investments by the Scheme shall be in compliance with SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2019/104 dated October 1, 2019 and as amended by SEBI from time to time.

6. Provided further that the norms for investments by the Scheme in unrated debt

instruments shall be specified by the Board from time to time. 7. The investment by the Scheme in the following instruments shall not exceed 10% of the

debt portfolio of the scheme and the group exposure in such instruments shall not exceed 5% of the debt portfolio of the scheme: a. Unsupported rating of debt instruments (i.e. without factoring-in credit

enhancements) is below investment grade and b. Supported rating of debt instruments (i.e. after factoring-in credit enhancement) is

above investment grade. These limits shall not be applicable on investments in securitized debt instruments, as defined in SEBI (Public Offer and Listing of Securitized Debt Instruments) Regulations 2008.

8. Investment in debt instruments, having credit enhancements backed by equity shares directly or indirectly, shall have a minimum cover of 4 times considering the market value of such shares.

9. The Scheme may invest in other schemes of the Mutual Fund or any other mutual fund without charging any fees, provided the aggregate inter-scheme investment made by all the schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the Net Asset Value of the Fund.

10. The Scheme shall not make any investment in: a) any unlisted security of an associate or group company of the sponsor; or b) any security issued by way of private placement by an associate or group company

of the sponsor; or c) the listed securities of group companies of the sponsor which is in excess of 25% of the

net assets. 11. The Mutual Fund shall get the securities purchased transferred in the name of the Fund

on account of the concerned Scheme, wherever investments are intended to be of a long-term nature.

12. Transfer of investments from one scheme to another scheme in the same Mutual Fund is permitted provided: a. such transfers are done at the prevailing market price for quoted instruments on spot

basis (spot basis shall have the same meaning as specified by a Stock Exchange for spot transactions); and

b. the securities so transferred shall be in conformity with the investment objective of the Scheme to which such transfer has been made.

13. The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relevant securities and in all cases of sale, deliver the securities: Provided that the Mutual Fund may engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI.


Provided further that the Mutual Fund may enter into derivatives transactions in a recognized stock exchange, subject to the framework specified by SEBI. Provided further that sale of government security already contracted for purchase shall be permitted in accordance with the guidelines issued by the Reserve Bank of India in this regard.

14. The Scheme shall not make any investment in any fund of funds scheme. 15. The Scheme will comply with the following restrictions for trading in exchange traded

derivatives, as specified by SEBI vide its circular no. DNPD/Cir-29/2005 dated September 14, 2005, circular no. DNPD/Cir-30/2006 dated January 20, 2006, circular no. DNPD/Cir-31/2006 dated September 22, 2006, circular no. Cir/ IMD/DF/11/2010 dated August 18, 2010, circular no. SEBI/HO/MRD/DP/CIR/P/2016/143 dated December 27, 2016, circular no. SEBI/HO/IMD/DF2/CIR/P/2017/13 dated February 20, 2017 and SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2017/109 dated September 27, 2017:

i. Position limit for the Mutual Fund in equity index options contracts a. The Mutual Fund position limit in all index options contracts on a particular underlying

index shall be Rs. 500 crores or 15% of the total open interest of the market in index options, whichever is higher, per stock exchange.

b. This limit would be applicable on open positions in all options contracts on a particular underlying index.

ii. Position limit for the Mutual Fund in equity index futures contracts: a. The Mutual Fund position limit in all index futures contracts on a particular underlying

index shall be Rs.500 crores or 15% of the total open interest of the market in index futures, whichever is higher, per stock exchange. This limit would be applicable on open positions in all futures contracts on a particular underlying index.

iii. Additional position limit for hedging In addition to the position limits at point (i) and (ii) above, the Mutual Fund may take exposure in equity index derivatives subject to the following limits: a. Short positions in index derivatives (short futures, short calls and long puts) shall not

exceed (in notional value) the Mutual Fund's holding of stocks. b. Long positions in index derivatives (long futures, long calls and short puts) shall not

exceed (in notional value) the Mutual Fund's holding of cash, government securities, Treasury Bills and similar instruments.

iv. Position limit for Mutual Fund for stock based derivative contracts The combined futures and options position limit shall be 20% of the applicable Market Wide Position Limit (MWPL).

v. Position limit for each scheme of a Mutual Fund The scheme-wise position limit / disclosure requirements shall be: a. For stock option and stock futures contracts, the gross open position across all

derivative contracts on a particular underlying stock of a scheme of a Mutual Fund shall not exceed the higher of 1% of the free float market capitalization (in terms of number of shares) or

5% of the open interest in the derivative contract on a particular underlying stock (in terms of number of contracts).

b. This position limits shall be applicable on the combined position in all derivative contracts on an underlying stock at a Stock Exchange.


c. For index based contracts, Mutual Funds shall disclose the total open interest held by its scheme or all schemes put together in a particular underlying index, if such open interest equals to or exceeds 15% of the open interest of all derivative contracts on that underlying index.

16. Pending deployment of the funds of the Scheme in securities in terms of the investment objective of the Scheme, the AMC may park the funds of the Scheme in short term deposits of scheduled commercial banks, subject to the guidelines issued by SEBI.

The Scheme will comply with the following guidelines/ restrictions for parking of funds in short term deposits: i. “Short Term” for such parking of funds by the Scheme shall be treated as a period not

exceeding 91 days. Such short-term deposits shall be held in the name of the Scheme. ii. The Scheme shall not park more than 15% of the net assets in short term deposit(s) of

all the scheduled commercial banks put together. However, such limit may be raised to 20% with prior approval of the Trustee.

iii. Parking of funds in short term deposits of associate and sponsor scheduled commercial banks together shall not exceed 20% of total deployment by the Mutual Fund in short term deposits.

iv. The Scheme shall not park more than 10% of the net assets in short term deposit(s), with any one scheduled commercial bank including its subsidiaries.

v. The Scheme shall not park funds in short term deposit (STD) of a bank which has invested in that Scheme. Further, Trustees/ AMCs shall also ensure that the bank in which the Scheme has STD do not invest in the said scheme until the Scheme has STD with such bank.

vi. The AMC will not charge any investment management and advisory fees for funds parked in short term deposits of scheduled commercial banks

However, the above provisions will not apply to term deposits placed as margins for trading in cash and derivatives market.

17. The Scheme shall not advance any loans. 18. The Scheme shall not borrow except to meet temporary liquidity needs of the Scheme

for the purpose of repurchase/redemption of Units or payment of interest and/or dividend to the Unit holders. Provided that the Scheme shall not borrow more than 20% of the net assets of the individual Scheme and the duration of the borrowing shall not exceed a period of 6 months.

19. SEBI vide its circular no. Cir/IMD/DF/11/2010 dated August 18, 2010 has prescribed the following investment restrictions w.r.t. investment in derivatives: 1 The cumulative gross exposure through equity, debt and derivative positions shall

not exceed 100% of the net assets of the Scheme. Cash or cash equivalents with residual maturity of less than 91 days shall be treated as not creating any exposure.

2 The Scheme shall not write options or purchase instruments with embedded written options except call options under a covered call strategy as specified in SEBI circular dated January 16, 2019 as amended from time to time.

3 The total exposure related to option premium paid shall not exceed 20% of the net assets of the Scheme.

4 Exposure due to hedging positions may not be included in the above mentioned limits subject to the following: a. Hedging positions are the derivative positions that reduce possible losses on

an existing position in securities and till the existing position remains. b. Hedging positions cannot be taken for existing derivative positions. Exposure

due to such positions shall have to be added and treated under limits


mentioned in Point 1. c. Any derivative instrument used to hedge has the same underlying security as

the existing position being hedged. d. The quantity of underlying associated with the derivative position taken for

hedging purposes does not exceed the quantity of the existing position against which hedge has been taken.

5 Exposure due to derivative positions taken for hedging purposes in excess of the underlying position against which the hedging position has been taken, shall be treated under the limits mentioned in point 1.

6 Each position taken in derivatives shall have an associated exposure as defined under. Exposure is the maximum possible loss that may occur on a position. However, certain derivative positions may theoretically have unlimited possible loss. Exposure in derivative positions shall be computed as follows:

Position Exposure Long Future Futures Price * Lot Size * Number of Contracts Short Future Futures Price * Lot Size * Number of Contracts Option bought Option Premium Paid * Lot Size * Number of Contracts.

7 The Scheme may enter into plain vanilla interest rate swaps for hedging purposes. The counter party in such transactions has to be an entity recognized as a market maker by RBI. Further, the value of the notional principal in such cases shall not exceed the value of respective existing assets being hedged by the Scheme. Exposure to a single counterparty in such transactions shall not exceed 10% of the net assets of the Scheme.

20. The Scheme may write call options only under a covered call strategy for constituent

stocks of NIFTY 50 and BSE SENSEX subject to the following: (i) The total notional value (taking into account strike price as well as premium value) of

call options written by a scheme shall not exceed 15% of the total market value of equity shares held in that scheme.

(ii) The total number of shares underlying the call options written shall not exceed 30% of the unencumbered shares of a particular company held in the scheme. The unencumbered shares in a scheme shall mean shares that are not part of Securities Lending and Borrowing Mechanism (SLBM), margin or any other kind of encumbrances.

(iii) At all points of time the Mutual Fund scheme shall comply with the provisions at paragraph (i) and (ii) above. In case of any passive breach of the requirement at paragraph (i), the respective scheme shall have 7 trading days to rebalance the portfolio. During the rebalancing period, no additional call options can be written in the said scheme.

(iv) In case the Scheme needs to sell securities on which a call option is written under a covered call strategy, it must ensure compliance with paragraphs (i) and (ii) above while selling the securities.

(v) In no case, the scheme shall write a call option without holding the underlying equity shares. A call option can be written only on shares which are not hedged using other derivative contracts.

(vi) The premium received shall be within the requirements prescribed in terms of paragraph 5 of SEBI circular dated August 18, 2010 i.e. the total gross exposure related to option premium paid and received must not exceed 20% of the net assets of the scheme.


(vii) The exposure on account of the call option written under the covered call strategy shall not be considered as exposure in terms of paragraph 3 of SEBI Circular no. Cir/IMD/DF/11/2010 dated August 18, 2010.

21. The mutual fund under all its schemes shall not own more than 10% of units issued by a single issuer of REIT and InvIT.

22. The Scheme shall not invest – a) more than 10% of its NAV in the units of REIT and InvIT; and b) more than 5% of its NAV in the units of REIT and InvIT issued by a single issuer.

23. The Scheme shall participate in repos in corporate debt securities as per the guidelines

issued by SEBI and/ or RBI from time to time and the guidelines framed by the Board of Directors of Trustee Company and the Asset Management Company, from time to time. At present the following conditions and norms shall apply to repo in corporate debt securities:

(i) The gross exposure of the Scheme to repo transactions in corporate debt securities shall not be more than 10 % of the net assets of the Scheme.

(ii) The cumulative gross exposure through repo transactions in corporate debt securities along with equity, debt and derivatives shall not exceed 100% of the net assets of the Scheme.

(iii) The Scheme shall participate in repo transactions only in AA and above rated corporate debt securities.

(iv) The Scheme shall borrow through repo transactions only if the tenor of the transaction does not exceed a period of six months.

(v) The Trustee and the Asset Management Company have framed guidelines interalia considering the following aspects: i. Category of counterparty ii. Credit rating of counterparty iii. Tenor of collateral iv. Applicable haircuts

(vi) Counterparty selection & credit rating The counterparty must be an acceptable counterparty for debt transactions. The Mutual Fund follows a counterparty empanelment process for fixed income transactions and the same shall be used for selection of counterparties for corporate bond repos. All repo transactions in corporate bonds will be governed by a repo agreement as specified by FIMMDA and / or other specified authorities.

(vii) Collateral tenor & quality The exposure limit/investment restrictions prescribed under the Seventh Schedule of the Regulations and circulars issued there under (wherever applicable) shall be applicable to repo transactions in corporate bonds. The Scheme shall further follow guidelines framed by Trustee and the AMC from time to time.

(viii) Applicable haircuts Currently mutual funds are permitted to carry out repo transactions in government securities without any haircuts. The Reserve Bank of India has notified a minimum haircut based on rating of the corporate bond and other securities. In addition, the Fixed Income and Money Market Dealers Association (FIMMDA) would maintain a rating-haircut matrix on an ongoing basis. The Scheme shall further follow guidelines framed by Trustee and the AMC from time to time.

The haircuts seek to protect the lender of funds from the event of the counterparty failing to honor the repurchase leg of the repo. In such a circumstance, the Fund would suffer a loss if the value of the collateral depreciates by more than the haircut.


The fall in the value of the collateral could be on account of higher yields and/ or deterioration of credit quality.

As the typical tenor of repos is short (typically overnight), the haircuts represent a relatively high degree of safety in relation to the interest rate risk on the collateral. The risk of collateral depreciation based on historical volatility is given in the table below:

Bond Tenor (yrs) 1 3 5 10 Price Volatility (%) (annualized)

0.6 1.2 1.7 3.4

Repo Tenor Number of standard deviations needed to lose 10% 1 day 258 136 94 48 7 days 98 52 36 18

In the above table, the price volatility of a 10-year bond is about 3.4% annualized. That is a 10% price move represents nearly a 3-sigma event on an annualized basis. For overnight tenors, this represents a 48-sigma event (for comparison a 6-sigma event occurs about once in a million observations).

It is apparent that the haircuts stipulated by RBI are more than sufficient to mitigate interest rate risk. Credit event risk remains (the collateral could default during the tenor of the repo). This risk is to be mitigated by ensuring that the collateral is acceptable from a credit point of view. The exposure limit/ investment restrictions prescribed under the Seventh Schedule of the Regulations and circulars issued there under (wherever applicable) shall be applicable to repo transactions in corporate bonds. The Scheme will comply with the other Regulations applicable to the investments of Mutual Funds from time to time.

All the investment restrictions will be applicable at the time of making investments. The AMC/Trustee may alter these above stated restrictions from time to time to the extent the Regulations change, so as to permit the Scheme to make its investments in the full spectrum of permitted investments for mutual funds to achieve its respective investment objective. J. HOW HAS THE SCHEME PERFORMED?

Performance of Axis Bluechip Fund – Regular Plan - Growth Option as at July 31, 2020 is as follows:

Period

Axis Bluechip Fund – Regular Plan - Growth

Option ^

Nifty 50 TRI

1 year returns 4.63% 0.68% 3 year returns 8.63% 4.46% 5 year returns 8.67% 6.66% Returns Since Inception (January 5, 2010) 11.03% 8.58%


Absolute Returns for each Financial Year for the last Five years

Performance of the Axis Bluechip Fund – Direct Plan - Growth option as at July 31, 2020 is as follows:

Period Axis Bluechip Fund - Direct Plan - Growth

Option ^ Nifty 50 TRI

1 year returns 5.88% 0.68% 3 year returns 10.05% 4.46% 5 year returns 9.98% 6.66% Returns Since Inception (January 1, 2013) 14.06% 9.89%

Absolute Returns for each Financial Year for the last Five years

^Past performance may or may not be sustained in future. Returns greater than 1 year are compounded annualized (CAGR). Calculations are based on Growth Option NAVs. The performance of Scheme is benchmarked to the Total Return Variant (TRI) of the Benchmark Index in terms of SEBI circular dated January 4, 2018. K. INVESTMENTS BY THE AMC Subject to the Regulations, the AMC may invest either directly or indirectly, in the Scheme during Ongoing Offer Period. However, the AMC shall not charge any investment management fee on such investment in the Scheme. L. ADDITIONAL SCHEME RELATED DISCLOSURES a. Scheme’s portfolio holdings as on July 31, 2020:


(i) Top 10 holdings by Issuer: Name of Issuer % of Net Assets

Infosys Limited 10.06% HDFC Bank Limited 9.12% Reliance Industries Limited 8.11% Tata Consultancy Services Limited 6.58% Bajaj Finance Limited 6.36% Kotak Mahindra Bank Limited 6.12% Bharti Airtel Limited 5.46% Hindustan Unilever Limited 4.61% Avenue Supermarts Limited 4.48% Nestle India Limited 4.04%

(ii) Fund allocation towards various Sectors:

Sector Classification % of Net Assets FINANCIAL SERVICES 31.87% CONSUMER GOODS 16.96% IT 16.64% OIL & GAS 8.11% PHARMA 7.41% OTHERS^ 6.99% TELECOM 5.46% AUTOMOBILE 2.24% CHEMICALS 1.91% CEMENT & CEMENT PRODUCTS 1.65% Cash & Cash Equivalent: 0.63% SERVICES 0.13% Grand Total 100%

^Tri Party Repos/REPO/Mutual Fund units Please visit www.axismf.com to obtain Scheme’s latest monthly portfolio holding statement.

b. Portfolio Turnover Portfolio turnover ratio for the one year period ended July 31, 2020: 1.00* *Based on Equity, Equity derivatives and Fixed Income securities transactions only. TREPS/Repo/FD/Margin FD/MFU/SLB are not considered. c. Aggregate investment in the Scheme of certain categories of persons:

Sr. No.

Category of Persons Net Asset Value of Units held as on July 31, 2020 (in Rs.)

i AMC’s Board of Directors 13,32,68,188.50 ii Concerned scheme’s Fund Manager(s) 16,96,089.63 iii Other key managerial personnel 2,98,89,080.08

Note: 1. Investment of Managing Director & Chief Executive Officer of AMC, if any, is included in

investments of “Other key managerial personnel”. 2. Investment of Fund Manager of the Scheme is not included in investments of “Other key managerial personnel”.


III. UNITS AND OFFER This section provides details you need to know for investing in the Scheme. A. NEW FUND OFFER (NFO) New Fund Offer Period This is the period during which a new scheme sells its Units to the investors.

The New Fund Offer opened on November 11, 2009 and closed on December 8, 2009. The units under the Scheme were allotted on January 5, 2010.

New Fund Offer Price: This is the price per Unit that the investors have to pay to invest during the NFO.

Not Applicable

Minimum Amount for Application / Switch in in the NFO

Not Applicable

Minimum Target amount

Not Applicable

Maximum amount to be raised (if any)

Not Applicable

Plans / Options offered

The Scheme offers the following plans: Axis Bluechip Fund – Regular Plan Axis Bluechip Fund – Direct Plan Each plan offers the following options: a) Growth Option b) Dividend Option.

1. Dividend Payout Facility 2. Dividend Reinvestment Facility

a) Growth Option Dividends will not be declared under this Option. The income attributable to Units under this Option will continue to remain invested in the Scheme and will be reflected in the Net Asset Value of Units under this Option. b) Dividend Option Under this Option, dividends will be declared at the discretion of the Trustee, subject to availability of distributable surplus calculated in accordance with SEBI (MF) Regulations. On payment of dividend, the NAV of the units under Dividend option will fall to the extent of the dividend payout and applicable statutory levies, if any. It must be distinctly understood that the actual declaration of dividend and frequency thereof is at the sole discretion of Board of Directors of the Trustee Company. There is no assurance or guarantee to the Unit holders as to the rate of dividend distribution nor that the dividend will be paid regularly.


Dividend Payout Facility Under this facility, dividend declared, if any, will be paid (subject to deduction of dividend distribution tax and statutory levy, if any) to those Unit holders, whose names appear in the register of Unit holders on the notified record date. Dividend Reinvestment Facility Under this facility, the dividend due and payable to the Unit holders will be compulsorily and without any further act by the Unit holder, reinvested in the Dividend option at a price based on the prevailing ex-dividend Net Asset Value per Unit. The amount of dividend re-invested will be net of tax deducted at source, wherever applicable. The dividends so reinvested shall constitute a constructive payment of dividends to the Unit holders and a constructive receipt of the same amount from each Unit holder for reinvestment in Units. On reinvestment of dividends, the number of Units to the credit of Unit holder will increase to the extent of the dividend reinvested divided by the Applicable NAV. There shall, however, be no Load on the dividend so reinvested. Default Plan The investor must clearly specify his choice of plan. Investors subscribing under Direct Plan of a Scheme will have to indicate “Direct Plan” against the Scheme name in the application form. Investors should also indicate “Direct” in the ARN column of the application form. The investors may refer to the following table for applicability of Direct Plan/ Regular Plan under different scenario:- Scenario Broker Code mentioned

by the investor Plan mentioned by the investor

Default Plan to be captured

1 Not mentioned Not mentioned Direct Plan 2 Not mentioned Direct Direct Plan 3 Not mentioned Regular Direct Plan 4 Mentioned Direct Direct Plan 5 Direct Not Mentioned Direct Plan 6 Direct Regular Direct Plan 7 Mentioned Regular Regular Plan 8 Mentioned Not Mentioned Regular Plan

In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application shall be processed under Regular Plan. The AMC shall contact and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 calendar days, the AMC shall reprocess the transaction under Direct Plan from the date of application without any exit load. Default Option/Facility The investor must clearly specify his choice of option/facility. In the absence of such clear instruction, it will be assumed that the investor has opted for ‘default’ option / facility and the application will be


processed accordingly. The default plan/ option / facility are: Default Option: Growth (between Growth and Dividend) Default Facility: Dividend Reinvestment facility (between Dividend Reinvestment and Dividend Payout facility) Existing Investments: Investors wishing to transfer their accumulated unit balance held under Regular Plan (through lumpsum / systematic investments made with or without Distributor code) to Direct Plan will have to switch /redeem their investments (subject to applicable Exit Load, if any) and apply under Direct Plan. Investors who have invested without Distributor code and have opted for Dividend Reinvestment facility under Regular Plan may note that the dividend will continue to be reinvested in the Regular Plan only. Default Plan – Redemption application Where Units under a Scheme are held under both Regular and Direct Plans and the redemption / Switch request pertains to the Direct Plan, the same must clearly be mentioned on the request (along with the folio number), failing which the request would be processed from the Regular Plan. However, where Units under the requested Option are held only under one Plan, the request would be processed under such Plan.

Dividend Policy Under the Dividend option, the Trustee will have the discretion to declare the dividend, subject to availability of distributable surplus calculated in accordance with the Regulations. The actual declaration of dividend and frequency will inter-alia, depend on availability of distributable surplus calculated in accordance with SEBI (MF) Regulations and the decisions of the Trustee shall be final in this regard. There is no assurance or guarantee to the Unit holders as to the rate of dividend nor that the dividend will be paid regularly. The AMC/Trustee reserves the right to change the frequency of declaration of dividend or may provide for additional frequency for declaration of dividend. Dividend Distribution Procedure In accordance with SEBI circular no. SEBI/IMD/Cir No. 1/64057/06 dated April 4, 2006, the procedure for Dividend distribution would be as under: 1. Quantum of dividend and the record date will be fixed by the

Trustee. Dividend so decided shall be paid, subject to availability of distributable surplus.

2. Within one calendar day of decision by the Trustee, the AMC shall issue notice to the public communicating the decision about the dividend including the record date, in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the head office of the Mutual Fund is situated.

3. Record date shall be the date, which will be considered for the purpose of determining the eligibility of investors whose names appear on the register of Unit holders for receiving dividends. The


Record Date will be 5 calendar days from the date of issue of notice.

4. The notice will, in font size 10, bold, categorically state that pursuant to payment of dividend, the NAV of the Scheme would fall to the extent of payout and statutory levy (if applicable).

5. The NAV will be adjusted to the extent of dividend distribution and statutory levy, if any, at the close of business hours on record date.

6. Before the issue of such notice, no communication indicating the probable date of dividend declaration in any manner whatsoever will be issued by Mutual Fund.

Allotment Not Applicable Refund Not Applicable Who can invest This is an indicative list and you are requested to consult your financial advisor to ascertain whether the scheme is suitable to your risk profile.

The following persons (subject to, wherever relevant, purchase of unit of mutual funds, being permitted under respective constitutions, and relevant statutory regulations) are eligible and may apply for Subscription to the Unit of the Scheme: 1. Resident adult individuals either singly or jointly (not exceeding

three) or on an Anyone or Survivor basis; 2. Hindu Undivided Family (HUF) through Karta; 3. Minor (as the first and the sole holder only) through a natural

guardian (i.e. father or mother, as the case may be) or a court appointed legal guardian. There shall not be any joint holding with minor investments;

4. Partnership Firms; 5. Limited Liability Partnerships; 6. Proprietorship in the name of the sole proprietor; 7. Companies, Bodies Corporate, Public Sector Undertakings (PSUs.),

Association of Persons (AOP) or Bodies of Individuals (BOI) and societies registered under the Societies Registration Act, 1860 (so long as the purchase of Unit is permitted under the respective constitutions);

8. Banks (including Co-operative Banks and Regional Rural Banks) and Financial Institutions;

9. Religious and Charitable Trusts, Wakfs or endowments of private trusts (subject to receipt of necessary approvals as "Public Securities" as required) and Private trusts authorised to invest in mutual fund schemes under their trust deeds;

10. Non-Resident Indians (NRIs) / Persons of Indian origin (PIOs)/ Overseas Citizens of India (OCI) residing abroad on repatriation basis or on non-repatriation basis;

11. Foreign Portfolio Investor (FPI) registered with SEBI on repatriation basis. These investments shall be subject to the conditions prescribed by SEBI, RBI, Income Tax authorities and the AMC, from time to time;

12. Army, Air Force, Navy and other para-military units and bodies created by such institutions;

13. Scientific and Industrial Research Organisations; 14. Multilateral Funding Agencies / Bodies Corporate incorporated

outside India with the permission of Government of India / RBI; 15. Provident/ Pension/ Gratuity Fund to the extent they are permitted; 16. Other schemes of Axis Mutual Fund or any other mutual fund

subject to the conditions and limits prescribed by SEBI (MF) Regulations;

17. Schemes of Alternative Investment Funds;


18. Trustee, AMC or Sponsor or their associates may subscribe to Units under the Scheme;

19. Such other category of person(s) permitted to make investments and as may be specified by the AMC / Trustee from time to time.

Subject to SEBI (Mutual Funds) Regulations, 1996, any application for subscription of units may be accepted or rejected in the sole and absolute discretion of the AMC/ Trustee company. The AMC/ Trustee company may also reject any application for subscription of units if the application is invalid, incomplete, or if the AMC/ Trustee company for any other reason does not believe that it would be in the interest of the scheme or its unitholders to accept such an application. Email ID & Mobile Number Investors should provide their own email address and mobile number to enable Axis AMC for speed and ease of communication in a convenient and cost-effective manner, and to help prevent fraudulent transactions. Ultimate Beneficial Ownership details: SEBI vide its circular no. CIR/MIRSD/2/2013 dated January 24, 2013 further read with AMFI Best practices guidelines circular no. 62/2015-16 dated September 18, 2015 and other applicable regulations has prescribed guidelines, for identification of Beneficial Ownership to be followed by the intermediaries. A ‘Beneficial owner’ is defined as a natural person or persons who ultimately own, control or influence a client and/or persons on whose behalf a transaction is being conducted, and includes a person who exercises ultimate effective control over a legal person or arrangement. In this regard, all categories of investors (including all new / existing investors / unitholders) (except individuals, companies listed on a stock exchange or majority-owned subsidiary of such companies) are mandatorily required to provide beneficial ownership details for all investments. Failing which, fund reserves the right to reject applications / subscription requests / additional subscription requests (including switches) / restrict further investments or seek additional information from investors who have not provided the requisite information on beneficial ownership. In the event of change in beneficial ownership, investors are requested to immediately update the details with the Fund/Registrar. Foreign Account Tax Compliance Act and Common Reporting Standards requirements As a part of various ongoing tax and regulatory developments around the globe [e.g. information exchange laws such as Foreign Account Tax Compliance Act (‘FATCA’) and Common Reporting Standard (‘CRS')], financial institutions like Axis Mutual Fund (‘Axis MF’ or ‘the Fund’) are being cast with additional investor and counterparty account related due diligence requirements. The Central Board of Direct Taxes (CBDT) has notified Rules 114F to 114H, as part of the Income-tax Rules, 1962, which Rules require Indian financial institutions such as the Banks, Mutual Funds, etc. to seek additional personal, tax and beneficial owner information and certain


certifications and documentation from all our investors and counterparties. According to the FATCA-CRS Rules, financial institutions in India are required to report tax information about account holders that are tax resident of U.S. and other foreign countries, to the CBDT/ Indian Government which will, in turn, relay that information to the US Internal Revenue Service (IRS) and governments of other foreign countries. These developments have resulted in compliance and reporting obligations on Financial Institutions like Axis MF. In relevant cases, information will have to be reported to tax authorities/appointed agencies. Towards compliance, the Fund may also be required to provide information to any institutions such as withholding agents for the purpose of ensuring appropriate withholding from the account or any proceeds in relation thereto. As may be required by domestic or overseas regulators/ tax authorities, we may also be constrained to withhold and pay out any sums from your account or close or suspend your account(s). Axis MF may also have to comply with other similar laws as and when applicable.

Prospective investors and Unit holders will therefore be required to comply with the request of the Fund to furnish such information / documentation / declarations as and when deemed necessary by the Investment Manager in accordance with Applicable Laws. In case prospective investor / Unit holder fails to furnish the relevant information / documentation / declarations in accordance with Applicable Laws, the Fund reserves the right to reject the application or redeem the Units held directly or beneficially and may also require reporting of such accounts and/or levy of withholding tax on payments made to the Unit holders / investor and/or take any other action/s in accordance with Applicable Laws. FATCA-CRS provisions are relevant not only at on-boarding stage of Unit holders but also throughout the life cycle of investment with the Fund. Unit holders therefore should intimate to the Fund/the Investment Manager, any change in their status with respect to any FATCA-CRS related information / documentation / declarations provided by them previously, including but not limited to any declarations provided in respect of residency of the Unit holders for tax purposes promptly, i.e. within 30 days. Further, if the Fund and/or the Investment Manager is required by Applicable Laws, to provide information regarding the Fund and/or the unit holders / investors to any regulatory authority and/or the Fund Investments and/or income therefrom, and the Fund and/or the Investment Manager complies with such request in good faith, whether or not it was in fact enforceable, they shall not be liable to the Unit holders / investors or to any other party as a result of such compliance or in connection with such compliance. Prospective investors / Unit holders should consult their own advisors to understand the implications of FATCA-CRS provisions/requirements. Please note that Axis MF will be unable to provide advice to any investor or counterparty about their tax status or FATCA/CRS classification relevant to their account. It is the responsibility of the investor or counterparty to ensure that they record their correct tax status / FATCA/ CRS classification. Investor/ counterparty may seek


advice from their tax advisor in this regard. The onus to provide accurate, adequate and timely inputs in this regard would be that of the investor or counterparty. Any changes in earlier information provided must be intimated within 30 days of such change. Investors are requested to provide all the necessary information / declarations to facilitate compliance, considering India’s commitment to implement CRS and FATCA under the relevant international treaties. Implementation of KYC requirements SEBI vide circular no. MIRSD/SE/Cir-21/2011 dated October 5, 2011 had mandated (i) Standard KYC form with uniform KYC guidelines and supporting documents to be used by SEBI registered intermediaries and (ii) Centralized KYC registration through KYC Registration Agencies (KRAs) registered with SEBI, w.e.f. January 1, 2012, to bring about uniform KYC process in the securities market, based on SEBI prescribed norms and the KYC details are shared with all SEBI registered intermediaries by the KRAs.

Subsequently, SEBI, vide its circular no. MIRSD/Cir-5/2012 dated April 13, 2012 advised various intermediaries to upload KYC data of its existing customers into the KRA system. While uploading KYC data into the KRA system, intermediaries were also required to highlight such ‘Missing/Not Available’ KYC information of a customer, which was either not required or not taken previously, but was mandatory as per uniform KYC guidelines issued by SEBI.

In accordance with AMFI best practices guidelines circular no. 62/2015-16 dated September 18, 2015, it is mandatory for all new/existing investors to provide additional KYC information such as Income details, Occupation, association with politically exposed person, net worth etc. as mentioned in the application form. Subscription requests, without providing these details, are liable to be rejected. No subscriptions (whether fresh or additional) and switches pertaining to ‘KYC on-hold’ cases are accepted, unless the investor / unitholder also submits relevant KYC missing / updated information, which is appropriately updated on the KRA - KYC.

Further, it is mandatory for existing customers to complete In-Person Verification process and provide the missing KYC information failing which their applications / transaction requests for additional subscription (including switches) is liable to be rejected. Central KYC Process Central Registry of Securitisation and Asset Reconstruction and Security interest of India (‘CERSAI’) has been authorised by Government of India to act as Central KYC Records Registry under Prevention of Money-Laundering (Maintenance of Records) Rules, 2005 (‘PMLA Rules’). SEBI vide its circular no. CIR/MIRSD/66/2016 dated July 21, 2016 and circular no. CIR/MIRSD/120/2016 dated November 10, 2016 has prescribed that the Mutual Fund/ AMC should capture KYC information for sharing with CKYCR as per the KYC template


prescribed by CERSAI for uniform and smooth implementation of CKYC norms for onboarding of new investors in Mutual Funds. In accordance with the aforesaid SEBI circulars and AMFI best practice guidelines for implementation of CKYC: a) Individual investors who have never done KYC process under KRA

regime i.e. a new investor who is new to KRA system and whose KYC is not registered or verified in the KRA system shall be required to provide KYC details in the CKYC Form to the Mutual Fund/ AMC.

b) Individual investor who fills old KRA KYC Form, should provide additional / missing information using Supplementary KYC Form or fill CKYC Form. The said form is available on Axis Mutual Fund website www.axismf.com.

c) Details of investors shall be uploaded on the system of CKYCR and a 14 digit unique KYC Identification Number (‘KIN’) will be generated for such customer.

d) New investors, who have completed CKYC process & have obtained KIN may quote their KIN in the application form instead of submitting CKYC Form/ Supplementary KYC Form.

e) AMC/ Mutual Fund shall use the KIN of the investor to download the KYC information from CKYCR system and update its records.

f) If the PAN of investor is not updated on CKYCR system, the investor should submit self-certified copy of PAN card to the Mutual Fund/ AMC.

The AMC reserves the right to reject transaction application in case the investor(s) fails to submit information and/or documentation as mentioned above. In the event of non-compliance of KYC requirements, the Trustee / AMC reserves the right to freeze the folio of the investor(s). Submission of Aadhar Number Pursuant to requirement under Prevention of Money Laundering (Maintenance of Records) Rules, 2005 as amended from time to time, proof of possession of Aadhar can be accepted as a valid document for proof of address or proof of identity of investors, provided the investor redact or blackout his Aadhar number while submitting the applications for investments. The aforesaid guidelines will be subject to change as per the directives issued by the concerned regulatory/ government authority from time to time. For further details refer to SAI.

Who cannot invest 1. Any individual who is a foreign national or any other entity that is not an Indian resident under the Foreign Exchange Management Act, 1999 (FEMA Act) except where registered with SEBI as a FPI or otherwise explicitly permitted under FEMA Act/ by RBI/ by any other applicable authority.

2. Pursuant to RBI A.P. (DIR Series) circular no. 14 dated September 16, 2003, Overseas Corporate Bodies (OCBs) cannot invest in Mutual Funds.

3. NRIs residing in Non-Compliant Countries and Territories (NCCTs) as determined by the Financial Action Task Force (FATF), from time to


time. 4. U.S. Persons and Residents of Canada as defined under the

applicable laws of U.S. and Canada except the following: a. subscriptions received by way of lump sum / switches

/systematic transactions received from Non-resident Indians (NRIs) / Persons of Indian origin (PIO) / Overseas Citizen of India (OCI) who at the time of such investment, are present in India and

b. FPIs

5. Such other persons as may be specified by AMC from time to time. These investors need to submit a physical transaction request along with such documents as may be prescribed by the AMC/ the Trustee/ the Fund from time to time.

The AMC reserves the right to put the transaction requests on hold/reject the transaction request/reverse allotted units, as the case may be, as and when identified by the AMC, which are not in compliance with the terms and conditions notified in this regard. The Trustee / the AMC /the Fund reserve the right to change/ modify the above provisions at a later date.

Where can you submit the filled up applications.

Not Applicable

How to Apply Please refer to the SAI and Application form for the instructions. Listing The Scheme is an open ended scheme under which Sale and

Repurchase will be made on a continuous basis and therefore listing on stock exchanges is not envisaged. However, the Trustee reserves the right to list the Units as and when considered necessary in the interest of Unit holders of the Fund.

Special Products / facilities available during the NFO

Not Applicable

The policy regarding reissue of repurchased Units, including the maximum extent, the manner of reissue, the entity (the scheme or the AMC) involved in the same.

Units once redeemed will be extinguished and will not be reissued.

Restrictions, if any, on the right to freely retain or dispose of Units being offered.

Pledge of Units The Unit under the Scheme (subject to completion of Lock in Period, if any) may be offered as security by way of a pledge / charge in favour of scheduled banks, financial institutions, non-banking finance companies (NBFCs), or any other person. The AMC and / or the ISC will note and record such Pledged Units. The AMC shall mark a lien only


upon receiving the duly completed form and documents as it may require. Disbursement of such loans will be at the entire discretion of the bank / financial institution / NBFC or any other person concerned and the Mutual Fund assumes no responsibility thereof. The Pledger will not be able to redeem Units that are pledged until the entity to which the Units are pledged provides written authorisation to the Mutual Fund that the pledge / lien charge may be removed. As long as Units are pledged, the Pledgee will have complete authority to redeem such Units. Dividends declared on Units under lien will be paid / re-invested to the credit of the Unit Holder and not the lien holder unless specified otherwise in the lien letter. Lien on Units On an ongoing basis, when existing and new Investors make Subscriptions, a lien on Units allotted will be created and such unit shall not be available for redemption until the payment proceeds are realised by the Scheme. In case a unit holder redeems units soon after making purchases, the redemption cheque will not be dispatched until sufficient time has elapsed to provide reasonable assurance that cheques or drafts for Units purchased have been cleared. In case the cheque / draft is dishonoured by the bank, the transaction shall be reversed and the Units allotted earlier shall be cancelled, and a fresh Account Statement / Confirmation slip shall be dispatched to the Unit holder. For NRIs, the Scheme may mark a lien on Units in case documents which need to be submitted are not given in addition to the application form and before the submission of the redemption request. However, the AMC reserves the right to change operational guidelines for lien on Units from time to time. Suspension/Restriction on Redemption of Units of the Scheme Subject to the approval of the Boards of the AMC and of the Trustee and subject also to necessary communication of the same to SEBI, the redemption of / switch-out of Units of Scheme, may be temporarily suspended/ restricted. In accordance with SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2016/57 dated May 31, 2016 and subject to prevailing regulations, restriction on/suspension of redemptions / switch-out of Units of the Scheme, may be imposed when there are circumstances leading to systemic crisis or event that severely constricts market liquidity or the efficient functioning of markets such as: a) Liquidity issues: when market at large becomes illiquid affecting

almost all securities rather than any issuer specific security; b) Market failures, exchange closures: when markets are affected by

unexpected events which impact the functioning of exchanges or the regular course of transactions. Such unexpected events could also be related to political, economic, military, monetary or other emergencies;

c) Operational issues: when exceptional circumstances are caused by force majeure, unpredictable operational problems and technical failures (e.g. a black out).

Restriction on / suspension of redemption of Units of the Scheme may


be imposed for a specified period of time not exceeding 10 working days in any 90 days period. When restriction on / suspension of redemption of Units of the Scheme is imposed, the following procedure shall be applied i. No redemption / switch-out requests upto Rs. 2 lakhs shall be

subject to such restriction. ii. Where redemption / switch-out requests are above Rs. 2 lakhs,

the AMC shall redeem the first Rs. 2 lakhs without such restriction and remaining part over and above Rs. 2 lakhs shall be subject to such restriction.

In addition to the above, the AMC / Trustee may restrict / suspend redemptions / switch-out of Units of the Scheme pursuant to direction/ approval of SEBI. In case of any of the above eventualities, the general time limits for processing requests for redemption of Units will not be applicable. Also refer to the paragraph ‘Suspension of Purchase and Redemption of Units’ in the Statement of Additional Information.

Third Party Payment Avoidance and additional documents / declaration required

Please refer SAI for details

Cash Investments in mutual funds

In order to help enhance the reach of mutual fund products amongst small investors, who may not be tax payers and may not have PAN/bank accounts, such as farmers, small traders/businessmen/workers, SEBI has permitted receipt of cash transactions for fresh purchases/ additional purchases to the extent of Rs. 50,000/- per investor, per mutual fund, per financial year subject to:

i. compliance with Prevention of Money Laundering Act, 2002 and Rules framed there under; the SEBI Circular(s) on Anti Money Laundering (AML) and other applicable Anti Money Laundering Rules, Regulations and Guidelines; and

ii. sufficient systems and procedures in place. However, payment towards redemptions, dividend, etc. with respect to aforementioned investments shall be paid only through banking channel. The Fund/ AMC is currently in the process of setting up appropriate systems and procedures for the said purpose. Appropriate notice shall be displayed on its website viz. as well as at the Investor Service Centres, once the facility is made available to the investors.

B. ONGOING OFFER DETAILS Default Plan/ Option

The investors may refer to the paragraph under New Fund offer Section for applicability of Direct Plan/ Regular Plan under different scenario.

Ongoing Offer Period

The Scheme has reopened for continuous subscription and redemption from January 7, 2010.


This is the date from which the scheme will reopen for subscriptions/redemptions after the closure of the NFO period. Ongoing price for subscription (purchase) /switch-in (from other schemes/plans of the mutual fund) by investors. This is the price you need to pay for purchase/switch-in.

At the Applicable NAV SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 has decided that there shall be no entry Load for all Mutual Fund Schemes. Hence, no entry load is levied for subscription transactions by the Scheme. Methodology of calculating subscription price: Subscription Price = Applicable NAV*(1+Entry Load, if any) Example: If the Applicable NAV is Rs. 10, Entry Load is NIL then the subscription price will be: = Rs. 10* (1+NIL) = Rs. 10

Ongoing price for redemption (sale) /switch outs (to other schemes/plans of the Mutual Fund) by investors. This is the price you will receive for redemptions/switch outs.

At the Applicable NAV subject to prevailing Exit Load. Ongoing price for redemption /Switch out (to other Schemes/Plans of the Mutual Fund) is price which a Unit holder will receive for redemption/Switch-outs. During the continuous offer of the Scheme, the Unit holder can redeem the Units at Applicable NAV, subject to payment of Exit Load, if any. It will be calculated as follows: Methodology of calculating repurchase price: Redemption Price = Applicable NAV*(1-Exit Load, if any) Example: If the Applicable NAV is Rs. 10, Exit Load is 2% then redemption price will be: =Rs. 10* (1-0.02) = Rs. 9.80 Investors/Unit holders should note that the AMC/Trustee has right to modify existing Load structure and to introduce Loads subject to a maximum limits prescribed under the SEBI Regulations. Any change in Load structure will be effective on prospective basis and will not affect the existing Unit holder in any manner. However, the Mutual Fund will ensure that the Redemption Price will not be lower than 93% of the Applicable NAV provided that the difference between the Redemption Price and the Subscription /Purchase Price at any point in time shall not exceed the permitted limit as prescribed by SEBI from time to time, which is currently 7% calculated on the Subscription/ Purchase Price. The Purchase Price shall be at applicable NAV.

Cut off timing for subscriptions/ redemptions/ switches

Subscriptions/Purchases including Switch - ins: The following cut-off timings shall be observed by the Mutual Fund in respect of purchase of units of the Scheme and the following NAVs shall be applied for such purchase:


This is the time before which your application (complete in all respects) should reach the official points of acceptance.

1. where the application is received upto 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 receipt of application;

2. 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;

3. where the application is received with an outstation cheque or demand draft which is not payable at par at the place where it is received – closing NAV of day on which the cheque or demand draft is credited;

4. In respect of purchase of units with amount equal to or more than Rs. 2 lakhs, irrespective of the time of receipt of application, the closing NAV of the day on which the funds are available for utilization shall be applicable.

For allotment of units in respect of purchase in the Scheme under Pt (4) above, it shall be ensured that: i. Application is received before the applicable cut-off time. ii. Funds for the entire amount of subscription/purchase as per the

application are credited to the bank account of the Scheme before the cut-off time.

iii. The funds are available for utilization before the cut-off time without availing any credit facility whether intra-day or otherwise, by the Scheme.

For allotment of units in respect of switch-in to the Scheme under Pt (4) above from other schemes, it shall be ensured that: i. Application for switch-in is received before the applicable cut-off

time. ii. Funds for the entire amount of subscription/purchase as per the

switch-in request are credited to the bank account of the Scheme before the cut-off time.

iii. The funds are available for utilization before the cut-off time without availing any credit facility whether intra-day or otherwise, by the Scheme.

Redemptions including Switch - outs: The following cut-off timings shall be observed by the Mutual Fund in respect of Repurchase of units: a. where the application received upto 3.00 pm – closing NAV of

the day of receipt of application; and b. an application received after 3.00 pm – closing NAV of the next

Business Day.

The above mentioned cut off timing shall also be applicable to transactions through the online trading platform. In case of Transaction through Stock Exchange Infrastructure, the Date of Acceptance will be reckoned as per the date & time; the transaction is entered in stock exchange’s infrastructure for which a system generated confirmation slip will be issued to the investor. Temporary Reduced cut-off timings for Subscriptions/switch-ins and Redemptions/ switch-outs:


Pursuant to revised trading hours of various markets regulated by RBI as per its press release dated April 3, 2020, as amended from time to time, and as communicated by SEBI, the aforesaid cut-off timing for subscription and redemption transactions are temporarily reduced as under: In case of Subscription: 01.00 p.m. In case of Redemption: 01:00 p.m. The reduced cut-off timings will be applicable till further notice by RBI on the truncated market hours. For further updates this regard, investors are advised to visit website www.axismf.com to view the notice / addendum issued by Axis Mutual Fund from time to time.

Where can the applications for purchase/redemption switches be submitted?

Refer Back Cover Page

Minimum amount for purchase/redemption/switches

Minimum amount for purchase/Switch in Rs. 5,000 and in multiples of Re 1/- thereafter Minimum Additional Purchase Amount Rs.100 and in multiples of Re. 1/- thereafter Minimum Redemption Amount/Switch Out There will be no minimum redemption criterion. The Redemption / Switch-out would be permitted to the extent of credit balance in the Unit holder’s account of the Plan(s) / Option(s) of the Scheme (subject to completion of Lock-in period or release of pledge / lien or other encumbrances). The Redemption / Switch-out request can be made by specifying the rupee amount or by specifying the number of Units of the respective Plan(s) / Option(s) to be redeemed. In case a Redemption / Switch-out request received is for both, a specified rupee amount and a specified number of Units of the respective Plan(s)/ Option(s), the specified number of Units will be considered the definitive request. In case the value / number of available units held in the Unit holder’s folio / account under the Plan / Option of the Scheme is less than the amount / number of units specified in the redemption / switch-out request, then the transaction shall be treated as an all units redemption and the entire balance of available Units in the folio / account of the Unit holder shall be redeemed. In case of Units held in dematerialized mode, the Unit Holder can give a request for Redemption only in number of Units which can be fractional units also. Depository participants of registered Depositories can process only redemption request of units held in demat mode. The AMC/ Trustee reserves the right to change/ modify the terms of minimum redemption amount.



Minimum balance to be maintained and consequences of non-maintenance.

Currently, tThere is no minimum balance requirement. However, the AMC / Trustee may decide to introduce minimum balance requirements later, if they so deem fit. In such case, in the event of non-maintenance of minimum balance for any particular situations, the Units may be compulsorily redeemed. In case balance in the account of the Unit holder does not cover the amount of Redemption request, then the Mutual Fund is authorized to redeem all the Units in the folio and send the Redemption proceeds to the Unit holder.

Special Products available

SYSTEMATIC INVESTMENT PLAN (SIP) Unit holder can enroll for the SIP facility by submitting duly completed Enrolment Form at the Official Point(s) of Acceptance. An Investor shall have the option of choosing any date of the Month as his SIP date other than 29th, 30th or 31st of a month. Minimum amount and minimum installments for monthly and yearly frequency under SIP Facility is as follows:

Frequency under SIP Facility

Minimum Installments

Minimum SIP amount

Monthly 6 Installments

Rs. 500/- and in multiple of Re. 1/-

Yearly 3 Installments

Rs. 12,000/- and in multiple of Re. 1/-

If the SIP period is not specified by the unit holder then the SIP enrolment will be deemed to be for perpetuity and processed accordingly. In case of SIP investments, where the entire installment amount is not available in bank account, the SIP for that month would be rejected. Allocation to a particular scheme or pro–rata allocation to schemes will not be carried out. i. SIP through post-dated cheques

The date of the first cheque shall be the same as the date of the application while the remaining cheques shall be post dated cheques which shall be dated uniformly. Investors can invest in SIP by providing post-dated cheques to Official Point(s) of Acceptance. An Investor is eligible to issue only one cheque for each month in the same SIP enrolment form. All SIP cheques should be of the same amount and same date option. Cheques should be drawn in favour of the Fund and “A/c Payee only”. A Letter will be forwarded to the Investor on successful registration of SIP. The Post Dated cheques will be presented on the dates mentioned on the cheque and subject to realization of the cheque.

ii. SIP through National Automated Clearing House (NACH)/Direct Debit facility

Investors / Unit holders may enroll for Direct Debit Facility available with specified Banks / Branches. In order to enroll for SIP Direct Debit Facility, an investor must fill-up the Application Form for SIP


Direct Debit facility.

In case of SIP with payment mode as Direct Debit/Standing Instructions, investors shall be required to submit a cancelled cheque or a photocopy of a cheque of the bank account for which the debit mandate is provided with first installment through cheque. The SIP facility will also be available through standing instructions/direct debit given by the investor (with all payment installments being made through standing instructions/direct debit). However, the SIP facility with direct debit will be available through selected Banks. The Asset Management Company reserves the right to add/modify/delete from the list of banks through whom such facility will be available to the investors.

The unit holders can also make payment of SIP instalments through NACH facility. NACH is a centralized system, launched by National Payments Corporation of India (NPCI) with an aim to consolidate multiple NACH mandates. This facility will enable the unit holders of the Fund to make SIP investments through NACH by filling up the SIP Registration cum mandate form. A Unique number will be allotted to every mandate registered under NACH called as Unique Mandate Reference Number (“UMRN”) which can be used for SIP transactions. The NACH facility shall be available subject to terms and conditions contained in the SIP registration Mandate Form and as prescribed by NPCI from time to time. All SIP cheques/payment instructions should be of the same amount and same date (excluding first cheque). However, there should be a gap of 30 days between first SIP Installment and the second installment in case of SIP started during ongoing offer. Investors will have the right to discontinue the SIP facility at any time by sending a written request to any of the Official Point(s) of Acceptance. Notice of such discontinuance should be received at least 30 days prior to the due date of the next debit. On receipt of such request, the SIP facility will be terminated. It is clarified that if the Fund fails to get the proceeds from three Installments out of a continuous series of Installments submitted at the time of initiating a SIP, the SIP is deemed as discontinued. Units will be allotted at the Applicable NAV of the respective dates on which the investments are sought to be made. In case the date falls on a Non-business day, the immediate next Business Day will be considered for this purpose An extension of an existing SIP will be treated as a new SIP on the date of such application, and all the above conditions need to be met with. The Load structure prevailing at the time of submission of the SIP application (whether fresh or extension) will apply for all the Installments indicated in such application. The AMC has the authority to make available SIP by way of a salary savings scheme for a group of employees through an arrangement


with their employers. For applicable Load on Purchases through SIP, please refer paragraph ‘Load Structure’ given in the document. The AMC reserves the right to change / modify Load structure and other terms and conditions under the SIP prospectively at a future date. Please refer to the SIP Enrolment Form for terms & conditions before enrolment. Systematic Investment Plan (SIP) Switch Facility Unit holders having registered SIP in the specified scheme(s) of the Fund can use SIP Switch Facility to terminate SIP in the existing scheme and initiate SIP in another specified scheme. SIP Switch Facility shall be available to unit holders under all open ended schemes of the Fund except for Axis Liquid Fund, Axis Overnight Fund, Axis Gold ETF, Axis Nifty ETF and Axis Children’s Gift Fund. The terms and conditions of SIP Switch Facility are as below: 1. SIP Switch Facility can be availed by unit holders only after

completion of minimum installments specified for SIP registration in the Switch-out (existing) scheme.

2. SIP Switch Facility will be considered as termination of SIP in Switch-out scheme and subscription of SIP in Switch-in scheme.

3. SIP in Switch-in scheme will be subject to the terms of offering specified in the SID of Switch-in scheme.

4. SIP registration end date should ensure compliance of minimum SIP installments prescribed in Switch-in scheme.

5. SIP Switch Facility is available for changing SIP investment mandate from one scheme to another specified scheme. The same is also available for switch between Plans / Options offered under same scheme. Further, the amount of installment, date and frequency of SIP and SIP end date of Switch-out scheme shall remain same as under Switch-in scheme.

6. The allotment of units of Switch-in scheme shall be in the same folio.

7. SIP Switch Facility is not available for SIP subscribed with post-dated cheques.

8. Investors will have the option of changing the distributor code from direct to regular/ regular to direct.

9. Unit holder must submit request for SIP Switch at least 21 days before the SIP due date.

Multiple SIPs Registration Mandate Unitholder can enroll multiple SIPs in different schemes by submitting one single application form/ payment instruction. All other terms and conditions applicable to SIP Facility shall be applicable for the facility. Systematic Investment Plan (SIP) Top-Up Facility The Facility enables unitholders to increase the SIP installment amount at pre-defined intervals by a fixed amount or anytime by a


specified amount as per the request (in case of ‘As & When frequency’). 1. The terms and conditions of the Facility are as follows 2. Top-Up Amount: The minimum amount of Top-Up shall be Rs.

500/- and in multiple of Re. 1/-. In case of discrepancy in the Top-Up amount, SIP will be registered without Top-Up Facility.

3. Top-Up facility is available for SIP registered with Monthly frequency only.

4. Top-Up Frequency: Top-Up frequency is available only on ‘Half Yearly’, ‘Yearly’ and ‘As & When frequency’. In case the Top-Up frequency is not specified / is not legible, the default frequency will be ‘Yearly’, provided Top-Up amount is mentioned clearly.

5. The Facility shall be available for SIP Investments through Electronic Debit arrangement/ NACH (National Automated Clearing House) or as may be specified by AMC.

6. The Facility can be availed by filling up prescribed form at time of SIP Facility enrolment. Existing SIPs cannot be converted into the Facility.

7. The application form for availing the Facility should be submitted 21 days before the first SIP installment date.

8. The gap between SIP registration and first Top-Up request under 'As & When' frequency and two instructions under ‘As & When’ frequency should be at least 3 months.

9. The Facility shall continue till the end date of the SIP. The Facility can be discontinued only by cancelling the SIP.

10. All other terms and conditions applicable to SIP Facility shall be applicable for the Facility.

SIP Pause facility: Investors shall have an option to temporarily pause the SIP installments for a specified period of time. Upon expiry of the specified period, the SIP installments would re-start automatically. The terms and conditions of SIP Pause facility are as follows: 1. Under this Facility, investor has an option to temporarily pause

their registered Monthly SIP facility for a period of three months by submitting prescribed application form at any of the Official Points of Acceptance of Axis Mutual Fund or by submitting application in other modes made available by AMC.

2. The SIP Pause facility can be availed by investor only two times during the entire tenure of SIP.

3. The valid application to avail the Facility should be submitted to AMC at least 10 calendar days prior to the next Monthly SIP installment date (i.e. excluding the request date and the next SIP installment date). Investor cannot cancel the SIP Pause facility once requested.

4. The SIP Pause facility is only available under Monthly frequency. SIP pause facility is available only for investors with instalment amounts equal to or greater than SIP’s greater than Rs. 1,000/-.

5. SIP Pause facility can only be availed by investors who has completed 6 valid SIP installments.

6. The SIP shall restart automatically from the immediate next eligible installment after the completion of specified pause


period. 7. This facility is not available for the SIPs sourced/registered through

MF Utilities India Pvt. Ltd. (“MFUI”), Stock Exchange Platforms of NSE & BSE and Channel partner platforms, as for such SIPs, the SIP mandates are registered by respective entities or for SIPs which are registered by investors as Standing Instructions with their Banks.

8. SIP Pause facility is not available for investors availing iPlus SIP Facility or Flex SIP facilities. For Top-up SIP facility, the top-up frequency would remain unchanged even if there is a pause in SIP instalment.

9. In case of multiple SIPs registered in a scheme, SIP Pause facility will be made applicable only for those SIP instalments whose SIP date, frequency, amount and Plan is specified clearly in the form.

10. AMC/Fund reserves the right to amend the terms and conditions of the SIP Pause facility and/or withdraw the said facility.

PURCHASE/ REDEMPTION OF UNITS THROUGH STOCK EXCHANGE INFRASTRUCTURE Investors can subscribe to the Units of Axis Mutual Fund through the mutual fund trading platforms of the Bombay Stock Exchange (“BSE”) and National Stock Exchange (“NSE”) – with NSDL and CDSL as depositories for such units of the mutual fund. NSE has introduced Mutual Fund Service System (MFSS) Platform and BSE has introduced BSE StAR MF Platform. The following are the salient features of the MFSS / BSE StAR MF Platform: 1. The facility i.e. purchase/redemption/SIP (Systematic Investment

Plan) is available for both existing and new investors. 2. The Investors will be eligible to purchase/redeem units of the

Scheme. 3. The facility can be availed by both, investors under Direct Plan

offered by the schemes and investors investing through Distributors under the Regular Plan offered by the schemes.

4. List of additional Official Point of Acceptance The following shall be the additional Official Point of Acceptance of Transactions for the Scheme: All trading members of BSE & NSE who are registered with AMFI as Mutual Fund Advisors and also registered with BSE &/ or NSE as Participants ("AMFI registered stock exchange brokers") will be eligible to offer this facility to investors and shall be treated as Official Point of Acceptance. Units of mutual fund schemes shall be permitted to be transacted through clearing members of the registered Stock Exchanges. Further, the Depository Participants of registered Depositories are permitted to process only redemption request of units held in demat form.

Clearing members and Depository participants will be considered


as Official Points of Acceptance of Axis Mutual Fund and conditions stipulated in SEBI circular no. SEBI/IMD/CIR No.11/ 183204/2009 dated November 13, 2009 for stock brokers viz. AMFI /NISM certification, code of conduct prescribed by SEBI for Intermediaries of Mutual Fund, shall be applicable for such Clearing members and Depository participants as well.

5. The units of the Scheme are not listed on BSE & NSE and the same cannot be traded on the Stock Exchange. The window for purchase/redemption of units on MFSS/ BSE StAR Platform will be available between 9 a.m. and 3 p.m. or such other timings as may be decided.

6. Transactions only in demat mode will be currently permitted through MFSS / BSE StAR MF Platform.

7. Investors will be able to purchase/redeem units in the scheme in the following manner:

(i) Investors shall receive redemption amount (if units are redeemed) and units (if units are purchased) through broker/ clearing member's pool account. Axis AMC/Axis Mutual Fund (the "Mutual Fund") shall pay proceeds to the broker/clearing member (in case of redemption) and broker/clearing member in turn to the respective investor and similarly units shall be credited by the AMC/ Mutual Fund into broker/clearing member's pool account (in case of purchase) and broker/clearing member in turn shall credit the units to the respective investor's demat account.

(ii) Payment of redemption proceeds to the broker/clearing members by AMC/Mutual Fund shall discharge AMC/Mutual Fund of its obligation of payment to individual investor. Similarly, in case of purchase of units, crediting units into broker/clearing member pool account shall discharge AMC/Mutual Fund of its obligation to allot units to individual investor.

8. Applications for purchase/redemption of units which are incomplete /invalid are liable to be rejected.

9. For all the transactions done through these platforms, separate Folio. No. shall be allotted to the existing and the new investors. The bank a/c number, address, nomination details etc. shall be the same as per the Demat account of the investor. In case of non-financial requests/applications such as change of address, change of bank details, etc. for units held in demat mode investors should approach the respective Depository Participant(s) and OPAT of AMC for units held in physical mode.

10. Investors will have to comply with Know Your Customer (KYC) norms as prescribed by BSE/NSE/CDSL/ NSDL and Axis Mutual Fund to participate in this facility.

11. Investors should get in touch with Investor Service Centres (ISCs) of Axis Mutual Fund for further details.

Transaction through Stock Exchange infrastructure using services of

Distributor/ SEBI Registered Investment Advisor: SEBI circular no. CIR/MRD/DSA/32/2013 dated October 4, 2013 and circular no. CIR/MRD/DSA/33/2014 dated December 9, 2014, has permitted Mutual Fund Distributors (“MF Distributors”) and SEBI circular no. SEBI/HO/MRD/DSA/CIR/P/2016/113 dated October 19,


2016 permitted SEBI Registered Investment Advisors (“RIAs”) to use recognized Stock Exchange infrastructure to purchase/redeem units directly from Mutual Fund/AMC on behalf of their clients. MF Distributor registered with AMFI or RIAs, will be eligible to use NMF-II platform of NSE (in addition to other intermediaries) and / or of BSE StAR MF platform of BSE to purchase and redeem units of schemes of the Fund. In addition to the guidelines specified for transacting through MFSS/BSE StAR MF Platform above, following guidelines shall be applicable for transactions executed through MF Distributors/ RIAs on NMF-II / BSE StAR MF Platform: 1. MF distributors/RIAs shall not handle pay out/pay in of funds as

well as units on behalf of investor. Pay in will be directly received by recognized clearing corporation and payout will be directly made to investor account. In the same manner, units shall be credited and debited directly from the demat account of investors.

2. Transactions only in physical (non-demat) transactions will be permitted through NMF-II / BSE StAR MF Platform.

The facility of transacting in mutual fund schemes through stock exchange infrastructure is available subject to such operating guidelines, terms and conditions as may be prescribed by the respective Stock Exchanges from time to time. SYSTEMATIC TRANSFER PLAN (STP) Investors can opt for the Systematic Transfer Plan by investing a lumpsum amount in one scheme of the Fund and providing a standing instruction to transfer sums at following intervals into any other scheme (as may be permitted by the Scheme Information Document of the respective schemes) of the Fund.

STP Frequency Cycle Date

Minimum Amount* (in Rs.)

Minimum Installment

Daily Monday To Friday 1,000/- 6 Weekly Monday To Friday 1,000/- 6

Fortnightly Alternate Wednesday 1,000/- 6 Monthly 1st, 7th, 10th, 15th or 25th 1,000/- 6

Quarterly 1st, 7th, 10th, 15th or 25th 3,000/- 2 In case Day of Transfer has not been indicated under Weekly frequency, Wednesday shall be treated as Default day. Further, in case of Monthly and Quarterly Frequency, if the STP date and Frequency has not been indicated, Monthly frequency shall be treated as Default frequency and 10th shall be treated as Default Date. In case none of the frequencies have been selected then Monthly frequency shall be treated as Default frequency and 10th shall be treated as Default Date. Investors could also opt for STP from an existing account by quoting


their account / folio number. A minimum period of 7 working days shall be required for registration under STP. Units will be allotted/ redeemed at the applicable NAV of the respective dates of the Scheme in which such investments/ withdrawals are sought from the Scheme. The requests for discontinuation of STP shall be subject to an advance notice of 15 days before the next due date for STP and it will terminate automatically if all Units are liquidated or withdrawn from the account or upon the Funds’ receipt of notification of death or incapacity of the Unit holder. The AMC reserves the right to introduce STPs at any other frequencies or on any other dates as the AMC may feel appropriate from time to time. In the event that such a day is a Holiday, the transfer would be affected on the next Business Day. Further, in case where the balance amount in a folio is less than the STP amount, the entire amount will be transferred to the transferee scheme. For further details/ clarifications investors may contact the distributor(s) or the ISCs of the AMC. CAPITAL APPRECIATION SYSTEMATIC TRANSFER PLAN (CAPSTP) Under this facility, the investors can opt for the Systematic Transfer Plan by investing a lump sum amount in one scheme of the Fund and providing a standing instruction to transfer capital appreciation at regular intervals - Weekly or Monthly or Quarterly into any other scheme (as maybe permitted by the Scheme Information Document of the respective schemes) of Axis Mutual Fund. The capital appreciation, if any, will be calculated from the enrolment date of the CapSTP under the folio, till the first transfer date. Subsequent capital appreciation, if any, will be the capital appreciation between the previous CapSTP date (where CapSTP has been processed and paid) and the next CapSTP date There are three options available under CapSTP viz. Weekly, Monthly and Quarterly option, the details of which are given below:

CapSTP Frequency Cycle Date

Minimum Amount* (in Rs.)

Minimum Installment

Weekly Monday To Friday 500/- 6 Monthly 1st, 7th, 10th, 15th or 25th 500/- 6

Quarterly 1st, 7th, 10th, 15th or 25th 1,000/- 2 The provision of ‘Minimum Redemption Amount’ as specified in the Scheme Information Document of the respective designated Transferor Schemes and ‘Minimum Application Amount’ specified in the Scheme Information Document of the respective designated Transferee Schemes will not be applicable for CapSTP.


Unit holders are required to fill in either the number of installments or the enrolment period in the enrolment Form, failing which the Form is liable to be rejected. In case, the Enrolment Period has been filled, but the CapSTP Date and/or Frequency (Monthly/ Quarterly) has not been indicated, Monthly frequency shall be treated as Default frequency and 10th shall be treated as Default Date. In case of weekly frequency, Wednesday shall be treated as Default day. In case none of the frequency is selected then Monthly frequency shall be treated as Default frequency and 10th shall be treated as Default Date. The application for CapSTP enrolment - Monthly & Quarterly frequency should be submitted at least 7 working days and not more than 90 days before the desired commencement date. In respect of CapSTP, the Load Structure prevalent at the time of enrolment shall govern the investors during the tenure of the CapSTP. A minimum period of 7 working days shall be required for registration under CapSTP. Units will be allotted/redeemed at the applicable NAV (of the respective date(s)) of the Scheme from/to which such withdrawals/investments are being made. The AMC reserves the right to introduce CapSTPs at any other frequencies or on any other dates as the AMC may feel appropriate from time to time. In the event that such a day is a Holiday, the transfer would be affected on the next Business Day. The requests for discontinuation of CapSTP shall be subject to an advance notice of 15 days before the next due date for CapSTP. CapSTP will terminate automatically if all Units are liquidated or withdrawn from the account or upon the Funds’ receipt of notification of death or incapacity of the Unit holder. Further, in case where the balance amount in a folio is less than the CapSTP amount, the entire amount will be transferred to the transferee scheme. FLEX - SYSTEMATIC INVESTMENT PLAN/ SYSTEMATIC TRANSFER PLAN ("Flex SIP/ Flex STP") Terms and conditions of Flex SIP/STP are as follows: 1. Flex SIP is a facility wherein an investor can opt to invest variable

amount linked to the value of his investments in any of the existing open ended scheme(s) of Axis Mutual Fund (“Investee scheme”), on pre-determined date. This facility allows investors to take advantage of market movements by investing higher when the markets are low and vice-versa.

2. Flex STP is a facility wherein an investor under any of the existing open ended scheme(s) of Axis Mutual Fund can opt to transfer variable amount linked to value of his investments, on predetermined date from designated open-ended Scheme(s) of


Axis Mutual Fund ("Transferor Scheme") to the Growth Option of designated open-ended Scheme(s) ("Transferee Scheme").

3. A single Flex SIP/STP Enrolment Form can be filled for investment/ transfer into one Scheme/Plan/Option only.

4. In case of valid enrolment forms received, indicating choice of option other than the growth option in the Investee / Transferee Scheme, it will be deemed as the growth option in the Investee / Transferee Scheme and processed accordingly.

5. In case of Flex STP, unit holders' details and mode of holding (single, jointly, anyone or survivor) in the Transferee Scheme will be as per the existing folio number of the Transferor Scheme. Units will be allotted under the same folio number. Unitholders' name should match with the details in the existing folio number, failing which the enrolment form is liable to be rejected.

6. The minimum number of installments for enrollment and Amount under Flex STP:

Frequency under Flex-STP Facility


Minimum Flex-STP amount (Rs.)

Monthly (1st, 7th,10th,15th or 25th)

6 Rs. 1,000/- and in multiple of Rs. 1/-

Quarterly (1st, 7th,10th,15th or 25th)

2 Rs. 3,000/- and in multiple of Rs. 1/-

7. The minimum number of installments for enrollment and Amount

under Flex SIP: Frequency

under Flex-SIP Facility


Minimum Flex-SIP amount (Rs.)

Monthly 12 Installments for all schemes

Rs. 500/- and in multiple of Rs. 1/-

Yearly 3 Installments for all schemes

Rs. 12,000/- and in multiple of Rs. 1/-

There is no maximum duration for Flex SIP/ STP enrolment.

8. Calculation of Flex STP

Under the Flex STP – (as per the Frequency) unit holders will be eligible to transfer fixed amount to be transferred per installment OR the amount as determined by the following formula whichever is higher: Fixed installment amount or (number of installments including the current installment X fixed amount to be transferred per installment) - market value of the investments through Flex STP in the Transferee Scheme on the date of transfer whichever is Higher In case of Flex STP, if the amount (as specified by the formula) to be transferred under STP is not available in the Transferor Scheme in the unit holder's account, the residual amount will be transferred to the Transferee Scheme and Flex STP will be closed.

Calculation of Flex SIP


Under the Flex SIP – (as per the Frequency) unit holders will be eligible to invest fixed amount to be invested per installment OR the amount as determined by the following formula whichever is higher: Fixed installment amount or (number of installments including the current installment X fixed amount to be invested per installment) - market value of the investments through Flex SIP* in the Investee Scheme whichever is Higher

*The installment value of FLEX SIP will be determined on the basis of NAV on 10th day (T-10) before the installment date. If T-10th day falls on a Non-Business day, then valuation will be done on T-11th day.

In case of Flex SIP, the required amount is not available in the designated bank account and the debit instruction fails then Flex SIP will be stopped.

9. If the NAV falls continuously throughout the Flex STP period, number of installments may be less than those mentioned on application form.

10. The first Flex SIP/STP instalment will be processed for the fixed instalment amount specified by the unit holder at the time of enrolment. From the second Flex SIP/STP instalment onwards, the investment/ transfer amount shall be computed as per formula stated above.

11. In case the date of investment/ transfer falls on a Non-Business Day, the immediate next Business Day will be considered for the purpose of determining the applicable NAV.

12. Once the Flex SIP/ STP have been stopped the unit holder needs to provide a new request to start Flex SIP/ STP.

13. The redemption/ switch-out of units allotted in the Investee/ Transferee Scheme shall be processed on First in First out (FIFO) basis. If there are other financial transaction (purchase, redemption or switch) processed in the Investee/ Transferee scheme during the tenure of Flex SIP/ STP, the Flex SIP / STP will be processed as normal SIP / STP for the rest of the installments for a fixed amount.

14. In respect of Flex SIP / STP enrollments made in any of the existing open ended Scheme(s), the Load Structure prevalent at the time of enrollment shall be applicable to the investors during the tenure of the Flex SIP / STP. Load structure for investments through Flex SIP / STP to the Schemes eligible for this facility: a. Exit Load of the Transferor Scheme(s) The amount transferred under the Flex STP from the Transferor Scheme to the Transferee Scheme shall be affected by switching units of Transferor Scheme at applicable NAV, after payment of exit load, if any, and subscribing to the units of the Transferee Scheme at Applicable NAV. b. Exit Load of the Investee /Transferee Scheme(s) Applicable Exit Load, if any, in the Investee / Transferee Schemes Plan /Option as on the date of enrollment will also be levied. For Scheme load structure please refer to SID/ KIM or contact the nearest Investor Service Centre (ISC) of Axis Mutual Fund or visit


our website www.axismf.com. 15. Flex STP will be automatically terminated if all units are liquidated

or withdrawn from the Transferor Scheme or pledged or upon receipt of intimation of death of the unit holder.

16. The provision of 'Minimum Redemption Amount' as specified in the Scheme Information Document of the respective designated Transferor Scheme(s) and 'Minimum Application Amount' specified in the Scheme Information Document of the respective designated Transferee Scheme(s) will not be applicable for Flex SIP/ STP.

17. The request for Flex SIP/ STP should be submitted at least 25 calendar days before the first SIP and at least 7 calendar days before STP date.

18. Unit holders have a right to discontinue the Flex SIP/ STP facility at any time by sending a written request to the ISC. On receipt of such request, the Flex SIP / STP facility will be terminated within 20 working days.

19. All other terms & conditions of Systematic Investment Plan and Systematic Transfer Plan are applicable to Flex SIP and STP respectively.

Illustration: Calculation of Flex STP Flex SIP/ STP that transfers Rs. 3,000/- every month from the Debt Fund to an Equity Fund.

Transferor Scheme: Axis Regular Saver Fund Transferee Scheme: Axis Bluechip Fund - Growth

Option Date & Frequency of Flex STP: 10th date - Monthly Interval Amount of Transfer per Installment Rs 3,000/- Number of Installments: 12 Enrolment Period: January - December 2013

Calculation of Flex STP instalment amount on the date of the fourth instalment i.e. April 10, 2013

i. Total units allotted up to the date of last installment i.e. March 10, 2013 is assumed as 822.73;

ii. NAV of Axis Bluechip Fund - Growth Option on April 10, 2013 is assumed as Rs. 9/- per unit;

iii. Hence the market value of the investment in the Investee / Transferee Scheme on the date of investment/ transfer is Rs. 7, 404.55 [822.73X 9].

The installment amount will be calculated as follows: a) Fixed amount specified at the time of enrolment:

Rs. 3,000/- Or

b) As determined by the formula: (3,000 X 4) – 7,404.55 = Rs. 4,595/-

a) or b) Whichever is Higher. Hence, on April 10, 2013, the installment amount to be transferred to the Transferee Scheme will be Rs. 4,595/- Illustration: Calculation of Flex SIP



Investee Scheme: Axis Bluechip Fund - Growth Option

Date & Frequency of Flex SIP: 10th date - Monthly Interval Amount per Installment Rs 3,000/- Number of Installments: 12 Enrolment Period: January - December 2013

Calculation of Flex SIP instalment amount for the 4th instalment i.e. April 10, 2013

i. Total units allotted up to the date of last installment i.e. March 10, 2013 is assumed as 822.73;

ii. NAV of Axis Bluechip Fund - Growth Option on T-10th day* is assumed as Rs. 9/- per unit;

iii. Hence the market value of the investment in the Investee Scheme on T-10th day is Rs. 7,404.55 [822.73X 9].

The installment amount will be calculated as follows: a. Fixed amount specified at the time of enrolment:

Rs. 3,000/- Or

b. As determined by the formula: (3,000 X 4) – 7,404.55 = Rs. 4,595/-

a) or b) Whichever is Higher. Hence, on April 10, 2013, the installment amount to be invested to the Investee Scheme will be Rs. 4,595/- *The installment value of Flex SIP will be determined on the basis of NAV on 10th day (T-10) before the installment date. In the above example T-10th day will be 31st March 2013 Investors are advised to read the SID/KIM of the Transferee Scheme and Statement of Additional Information (SAI) carefully before investing. The SID/ KIM of the respective Scheme(s) are available with the ISCs of Axis Mutual Fund, brokers/distributors and also displayed on the Axis Mutual Fund website i.e. www.axismf.com SYSTEMATIC WITHDRAWAL PLAN (SWP) Existing Unitholders have the benefit of availing the choice of SWP on pre-specified dates. The SWP allows the Unitholder to withdraw a specified sum of money each month/quarter from his investments in the Scheme. The amount thus withdrawn by redemption will be converted into Units at Applicable NAV based prices and the number of Units so arrived at will be subtracted from the Units balance to the credit of that Unitholder. Unitholders may start the facility/change the amount of withdrawals or the period of withdrawals by giving a 15 days written intimation/notice. The SWP may be terminated by a Unitholder by giving 15 days written intimation/notice and it will terminate automatically if all the Units are liquidated or withdrawn from the account or the holdings fall below the SWP installment amount.


There are four options available under SWP viz. Monthly option, quarterly option, Half Yearly and Yearly option. The details of which are given below:

Monthly Option

Quarterly Option

Half Yearly Option

Yearly Option

Minimum value of SWP

Rs. 1,000/-

Additional amount in multiples of

Re.1

Dates of SWP Installment

1/5/10/15/25*

Minimum No of SWP Six Four Four Two * In the event that such a day is a holiday, the withdrawals would be affected on the next business day. Exit Load, if any, is applicable to SWP. The AMC reserves the right to accept SWP applications of different amounts, dates and frequency. Unitholders can enroll themselves for the facility by submitting the duly completed Systematic Withdrawal enrolment Form at any of the Investor Service Centres (ISCs)/Official Points of Acceptance (OPAs). The AMC / Trustee reserve the right to change / modify the terms and conditions under the SWP prospectively at a future date. Investments through systematic routes: (a) In case of Systematic Investment Plan (SIP) / Systematic Transfer

Plan (STP) etc. registered prior to the Effective Date without any distributor code under the Regular Plan, installments falling on or after the Effective Dates will automatically be processed under the Direct Plan.

(b) Investors who had registered for Systematic Investment Plan facility prior to the Effective Date with distributor code and wish to invest their future installments into the Direct Plan, shall make a written request to the Fund in this behalf. The Fund will take at least 15 days to process such requests. Intervening installments will continue in the Regular Plan. In case of (a) and (b) above, the terms and conditions of the existing registered enrolment shall continue to apply. In case of Systematic Transfer Facilities (registered with Distributor Code) were registered under the Regular Plan prior to the Effective Date the future installments shall continue under the Regular Plan.

In case such investors wish to invest under the Direct Plan through these facilities, they would have to cancel their existing enrolments and register afresh for such facilities.


SWITCHING OPTIONS (a) Inter - Scheme Switching option Unit holders under the Scheme have the option to Switch part or all of their Unit holdings in the Scheme to any other scheme offered by the Mutual Fund from time to time. The Mutual Fund also provides the Investors the flexibility to Switch their investments from any other scheme(s) / plan(s) offered by the Mutual Fund to this Scheme. This option will be useful to Unit holders who wish to alter the allocation of their investment among the scheme(s) / plan(s) of the Mutual Fund in order to meet their changed investment needs. The Switch will be effected by way of a Redemption of Units from the Scheme at Applicable NAV, subject to Exit Load, if any and reinvestment of the Redemption proceeds into another scheme offered by the Mutual Fund at Applicable NAV and accordingly the Switch must comply with the Redemption rules of switch out Scheme and the Subscription rules of the switch in scheme. However, no load will be charged for switches between equity schemes. (b) Intra -Scheme Switching option Unit holders under the Scheme have the option to Switch their Unit holdings from one option to another option (i.e. Growth to Dividend and vice-a-versa). The Switches would be done at the Applicable NAV based prices and the difference between the NAVs of the two options will be reflected in the number of Units allotted. Switching shall be subject to the applicable “Cut off time and Applicable NAV” stated elsewhere in the Scheme Information Document. In case of “Switch” transactions from one scheme to another, the allocation shall be in line with Redemption payouts. TRANSACTION ON FAX In order to facilitate quick processing of transaction and / or instruction of investment of Investor the AMC/ Trustee/ Mutual Fund may (at its sole discretion and without being obliged in any manner to do so and without being responsible and/ or liable in any manner whatsoever) accept and process any application, supporting documents and / or instructions submitted by an Investor / Unit holder by facsimile (Fax Submission) and the Investor / Unit holder voluntarily and with full knowledge takes and assumes any and all risk associated therewith. The AMC / Trustee/ Mutual Fund shall have no obligation to check or verify the authenticity or accuracy of Fax Submission purporting to have been sent by the Investor and may act thereon as if same has been duly given by the Investor. In all cases the Investor will have to immediately submit the original documents/ instruction to AMC/ Mutual Fund. ONLINE TRANSACTIONS Axis Mutual Fund will allow Transactions including by way of Lumpsum Purchase/ Redemption / Switch of Units by electronic mode through the AMC web –site/Mobile Application. The Subscription proceeds, when invested through this mode, are by way


of direct debits to the designated bank through payment gateway. The Redemption proceeds, (subject to deduction of tax at source, if any) through this mode, are directly credited to the bank account of the Investors who have an account at the designated banks with whom the AMC has made arrangements from time to time or through NEFT/RTGS or through cheque/Payorder/Demand draft issuance. The AMC will have right to modify the procedure of transaction processing without any prior intimation to the Investor. Investment amount through this facility may be restricted by the AMC from time to time in line with prudent risk management requirements and to protect the overall interest of the Investors. For details of the facility, investors are requested to refer to the website of the AMC. TRANSACTIONS THROUGH ELECTRONIC PLATFORM(S) OF KFIN TECHNOLOGIES PVT. LTD. Investors will be allowed to transact through https://mfs.kfintech.com/mfs/, an electronic platform provided by M/s. KFin Technologies Pvt. Ltd., Registrar & Transfer Agent, in Schemes of Axis Mutual Fund (‘Fund’) (except Axis Gold ETF and Axis Nifty ETF). The facility will also be available through mobile application of KFin Technologies Pvt. Ltd.. The uniform cut off time as prescribed under the SEBI (Mutual Funds) Regulations, 1996 and as mentioned in SID and KIM of the Scheme will be applicable for transactions received through the above electronic platform and the time of receipt of transaction recorded on the server(s) of KFin Technologies Pvt. Ltd. will be reckoned as the time for the purpose of determining applicability of NAV, subject to credit of funds to bank account of scheme, wherever applicable. The facility is subject to operating guidelines, terms and conditions as may be prescribed by KFin Technologies Pvt. Ltd. or as may be specified by Axis AMC from time to time. For operating guidelines and terms and conditions, investors are requested to visit https://mfs.kfintech.com/mfs/. Time of receipt of transaction recorded on the server(s) of KFin Technologies Pvt. Ltd. will continue to be reckoned for electronic transactions received through AMC website/ Distributor website/ applications etc subject to credit of funds to bank account of scheme, wherever applicable. ONLINE SCHEDULE TRANSACTION FACILITY (‘THE OST FACILITY’/ ‘THE FACILITY’): The OST facility shall enable Unitholders to schedule subscription / redemption / switch transaction(s) on specified date for specified amount/ units by giving online instruction. The terms and conditions of the OST facility shall be as under: 1. The Facility is available to the existing Unitholders of open ended

schemes of Axis Mutual Fund (except Axis Gold ETF and Axis Nifty


ETF), subject to completion of lock-in, if any. 2. The Facility is available only to Individual (including sole

proprietor) Unitholders for units held in / subscription in physical mode.

3. The Facility for subscription transaction would be available to unitholders after completion of OTM Mandate / Easycall mandate/ equivalent mandate registration process and as per limits specified therein.

4. Under the Facility the transaction can be scheduled to be executed on a specified date which shall be within 30 calendar days from the date of the instruction. Such specified date shall be a business day. In case the scheduled transaction date falls on a non-business day, the transaction will be executed on the immediately following business day.

5. The Facility shall be available on online transaction platform(s) viz website of Axis AMC i.e. www.axismf.com. Axis AMC may extend the Facility to other transaction platforms from time to time, at its discretion.

6. The scheduled transaction may be cancelled by giving suitable instruction atleast one calendar day prior to the scheduled transaction date.

7. The triggered transaction on the scheduled date shall be considered as time stamped and will be executed on the specified date at the applicable NAV of the relevant scheme. In case the specified date happens to be a non-business day in debt schemes but is a business day in equity schemes, switch-out from equity schemes will be processed on the specified date, while the switch-in to debt/liquid schemes will be processed on the next business day.

8. The scheduled transaction(s) shall be subjected to exit load, minimum subscription/additional subscription application and other terms and conditions of the relevant scheme as per SID applicable on the specified date.

9. The scheduled transaction shall be liable to be rejected if sufficient amount is not available for subscription or sufficient number of units / amount is not available for redemption.

10. Redemption transactions will not be executed in case units are pledged or where lien is marked on units, at the time of online instruction / on specified date.

11. Unitholders availing of this facility shall acquaint themselves with the features of the Scheme, including any modification / amendments carried out before the specified date.

The Facility is an additional facility provided to the Unitholders to plan their transactions in schemes using online platforms. Axis AMC / Trustee reserves the right to change/ modify the terms and conditions or to make operational rules for operation of the Facility from time to time. EASY CALL FACILITY All individual investors in the scheme applying on “Sole” or “Joint (Anyone or Survivor)” basis in their own capacity shall be eligible to avail of Easy Call facilities for permitted transactions inter alia on the



following terms and conditions (“Terms and Conditions” mean the terms and conditions set out below by which the Facility shall be used/availed by the Investor/s and shall include all modifications and supplements made by AMC thereto from time to time). Axis Mutual Fund will allow transactions including by way of Lumpsum Purchase/ Redemption / Switch of Units over phone. Initial Investment has to be through physical mode wherein he has to sign a one time debit mandate for bank accounts pertaining to designated banks with which the AMC may have an arrangement. This facility is extended to the bank with which the Fund would have an arrangement from time to time. Investment amount may be restricted by the AMC from time to time in line with prudent risk management requirements and to protect the overall interest of the Investors. Investor will be allowed transactions over phone after 30 days from the date of submission of one time mandate. Investor will not be permitted to avail the Easy call facility for Redemptions/Switch transactions if bank mandate is changed with in last 15 days. AMC will have right to modify the procedure of transaction processing without any prior intimation to the Investor. AMC retains the right to maintain call records of the communication with investors, for lawful purposes. The AMC has a right to ask such information (Key Information) from the available data of the Investor/s before allowing him access to avail the Facility. If for any reason, the AMC is not satisfied with the replies of the Investor/s, the AMC has at its sole discretion the right of refusing access without assigning any reasons to the Investor/s. It is clarified that the Facility is a service provided to the Investor/s and is offered at the sole discretion of the AMC. The AMC is not bound and/or obliged in any way to offer this Facility to Investor/s. The Investor/s shall check his/her account records carefully and promptly. If the Investor/s believes that there has been a mistake in any transaction using the Facility, or that unauthorized transaction has been effected, the Investor/s shall notify the AMC immediately. If the Investor/s defaults in intimating the discrepancies in the statement within a period of fifteen days of receipt of the statements, he waives all his rights to raise the same. By opting for the facility the Investor/s hereby irrevocably authorizes and instructs the AMC to act on his /her behalf and to do all such acts as AMC may find necessary to provide the Facility. The Investor/s shall at all times be bound by any modifications and/or variations made to these Terms and Conditions by the AMC at their sole discretion and without notice to them. The Investor/s agrees and confirms that the AMC has the right to ask the Investor/s for an oral or written confirmation of any transaction request using the Facility and/or any additional information regarding the Account of the Investor/s.


The Investor/s agrees and confirms that the AMC may at its sole discretion suspend the Facility in whole or in part at any time without prior notice. The Investor/s shall not assign any right or interest or delegate any obligation arising herein. The Investor/s shall take responsibility for all the transactions conducted by using the Facility and will abide by the record of transactions generated by the AMC. Further, the Investor/s confirms that such records generated by the AMC shall be conclusive proof and shall be binding for all purposes and may be used as evidence in any proceedings and that the investor(s) unconditionally waives all objections in this behalf. The Investor/s agree that use of the Facility will be deemed to be an acceptance of the Terms and Conditions and the Investor/s will unequivocally be bound by these Terms and Conditions. The Investor agrees that all calls received shall be eligible for applicable NAV subject to necessary formalities to be complied by the AMC in case of transaction through Easy Call Facility on or before the uniform cut off time. Requests like change in bank mandate, change of nomination, change in mode of holding, change of address or such other requests as the AMC may decide from time to time will not be permitted using the Easy Call facility. The investor agrees to indemnify and keep indemnified Axis AMC its Directors, employees, representatives and service providers of the AMC, Axis Mutual Fund and Trustees (indemnified parties) from and against all actions, claims, demands, liabilities, obligations, losses, damages, costs and expenses of whatever nature (whether actual or contingent) directly or indirectly suffered or incurred, by the indemnified parties whatsoever arising from or in connection with the Facility. The Investor/s shall not hold the AMC liable and shall keep it indemnified for the following: 1) For any transaction using the Facilities carried out in good faith

by the AMC on instructions of the Investor/s. 2) For any loss or damage incurred or suffered by the Investor/s due

to any error, defect, failure or interruption in the provision of the Facility.

3) For any negligence / mistake or misconduct by the Investor/s. 4) For any breach or non-compliance by the Investor/s of the

rules/terms and conditions stated in this Document. 5) For accepting instructions given by any one of the Investor/s in

case of joint account/s having mode of operations as ““Anyone or survivor”.

6) For not carrying out any such instructions where the AMC has reason to believe (which decision of the AMC the Investor/s shall not question or dispute) that the instructions given are not genuine or are otherwise improper, unclear, vague or raise a doubt.


7) For carrying out a transaction after such reasonable verification as the AMC may deem fit regarding the identity of the Investor/s

MISCELLANEOUS: 1) The Investor/s agrees and understands that while this Facility is

being introduced without any charges being levied; in case charges are to be levied on a future date he agrees to pay such charges and nonpayment in such an event can lead to termination of these services.

2) Any dispute arising out of or in connection with these Terms and Conditions, will be referred to the arbitration of a sole arbitrator to be appointed by the AMC, in accordance with the Arbitration & Conciliation Act, 1996.

3) These Terms and Conditions are subject to applicable SEBI (Mutual Funds) Regulations, 1996 as amended from time to time and includes Guidelines, Circular press release or Notification that may be issued.

EASY SMS FACILITY This facility is available for individual investors (registration process to be completed by the investor to avail this facility). For details of the registration process, please contact our Investor Service Centres/website of the AMC. All individual investors applying on “Sole” or “Joint (Anyone or Survivor)” basis in their own capacity shall be eligible to avail the facility for permitted transactions i.e. for lump sum purchase, redemption and switch transactions on the below mentioned terms and conditions: “Terms and Conditions” mean the terms and conditions set out below by which the Facility shall be used/availed by the Investors and shall include all modifications and supplements made by AMC thereto from time to time. Initial Investment has to be through the physical mode wherein the Investor has to sign a one time debit mandate for bank accounts pertaining to designated banks with which the AMC may have an arrangement. This facility is extended to the bank with which the Fund would have an arrangement from time to time. Transaction amount may be restricted by the AMC from time to time in line with prudent risk management requirements and to protect the overall interest of the Investors. Investor will be allowed transactions over SMS after 30 days from the date of submission of one time mandate. Investor will not be permitted to avail the facility for Redemptions/Switch transactions if bank mandate is changed within last 15 days. AMC will have right to modify the procedure of transaction processing without any prior intimation to the Investor. The AMC has a right to ask such information (Key Information) from the available data of the Investors before allowing him access to avail the Facility. If for any reason, the AMC is not satisfied with the replies of the Investors, the AMC has at its sole discretion the right of refusing access without assigning any reasons to the Investors. This facility can be availed only through the registered mobile


number of the Investor. It is clarified that the Facility is only with a view to accommodate /facilitate the Investors and offered at the sole discretion of the AMC. The AMC is not bound and/or obliged in any way to give access to Facility to Investors. The Investors shall check his/her account records carefully and promptly. If the Investors believe that there has been a mistake in any transaction using the Facility, or that unauthorized transaction has been effected, the Investors shall notify the AMC immediately. If the Investors defaults in intimating the discrepancies in the statement within a period of fifteen days of receipt of the statements, he waives all his rights to raise the same in favour of the AMC, unless the discrepancy /error is apparent on the face of it. By opting for the facility the Investors hereby irrevocably authorizes and instructs the AMC to act as his /her agent and to do all such acts as AMC may find necessary to provide the Facility. The Investors shall at all times be bound by any modifications and/or variations made to these Terms and Conditions by the AMC at their sole discretion and without notice to them. The Investor agrees and confirms that the AMC has the right to ask the Investor for an oral or written confirmation of any transaction request using the Facility and/or any additional information regarding the Account of the Investor. The Investor agrees and confirms that the AMC may at its sole discretion suspend the Facility in whole or in part at any time without prior notice. The Investor shall not assign any right or interest or delegate any obligation arising herein. The Investor shall take responsibility for all the transactions conducted by using the Facility and will abide by the record of transactions generated by the AMC. Further, the Investor confirms that such records generated by the AMC shall be conclusive proof and binding for all purposes and may be used as evidence in any proceedings and unconditionally waives all objections in this behalf. The Investor agrees that use of the Facility will be deemed acceptance of the Terms and Conditions and the Investor will unequivocally be bound by these Terms and Conditions. The Investor agrees that all transactions received shall be eligible for applicable NAV subject to necessary formalities to be complied by the AMC in case of transaction through the facility on or before the uniform cut off time. Requests like change in bank mandate, change of nomination, change in mode of holding, change of address or such other requests as the AMC may decide from time to time will not be permitted using the facility. Investors should SMS HELP PURCHASE/REDEMPTION/SWITCH to 9212010033 in order to avail the facility post registration. The procedure for availing the facility will be communicated to the investor. Alternatively, the investor can also get in touch with the Investor Service Centres of the AMC.


KFin Technologies Pvt. Ltd., Registrar & Transfer Agents to Axis Mutual Fund having its office at Unit: Axis Mutual Fund, Tower B, Plot number 31 & 32, Financial District, Gachibowli, Nanakramguda, Serilingampally Mandal, Hyderabad - 500032 will be the official point of acceptance for such transactions received for Axis Mutual Fund schemes. The investor agrees to indemnify and keep indemnified Axis AMC its Directors, employees, representatives of the AMC, Axis Mutual Fund and Trustees (indemnified parties) from and against all actions, claims, demands, liabilities, obligations, losses, damages, costs and expenses of whatever nature (whether actual or contingent) directly or indirectly suffered or incurred, against the indemnified parties whatsoever arising from or in connection with the Easy Call Facility. The Investor/s shall not hold the AMC liable and shall keep it indemnified for the following: 1) For any transaction using the Facilities carried out in good faith

by the AMC on instructions of the Investor/s. 2) For any loss or damage incurred or suffered by the Investor/s due

to any error, defect, failure or interruption in the provision of the Facility.

3) For any negligence / mistake or misconduct by the Investor/s. 4) For any breach or non-compliance by the Investor/s of the

rules/terms and conditions stated herein. 5) For accepting instructions given by any one of the Investor/s in

case of joint account/s having mode of operations as “anyone or survivor”.

6) For not carrying out any such instructions where the AMC has reason to believe (which decision of the AMC the Investor/s shall not question or dispute) that the instructions given are not genuine or are otherwise improper, unclear, vague or raise a doubt.

7) For carrying out a transaction after such reasonable verification as the AMC may deem fit regarding the identity of the Investor/s

MISCELLANEOUS: 1) The Investor/s agrees and understands that while this Facility is

being introduced without any charges being levied; in case charges are to be levied on a future date he agrees to pay such charges and nonpayment in such an event can lead to termination of these services.

2) Any dispute arising out of or in connection with these Terms and Conditions, will be referred to the arbitration of a sole arbitrator to be appointed by the AMC, in accordance with the Arbitration & Conciliation Act, 1996.

3) These Terms and Conditions are subject to applicable SEBI (Mutual Funds) Regulations, 1996 as amended from time to time and includes Guidelines, Circular press release or Notification that may be issued.

DIVIDEND SWEEP OPTION The terms and conditions of Dividend Sweep Option (DSO) are as follows: 1) DSO is a facility wherein unit holder(s) of eligible scheme(s)


[hereinafter referred to as "Source Scheme(s)"] of Axis Mutual Fund can opt to automatically invest the dividend (as reduced by the amount of applicable statutory levy) declared by the Source Scheme into other eligible Scheme(s) [hereinafter referred to as "Target Scheme(s)"] of Axis Mutual Fund.

2) The facility is available under all the open ended schemes of Axis Mutual Fund except Exchange Traded Funds (ETFs).

3) DSO facility is available to unit holder(s) only under the Dividend Plan / Option of the Source Scheme. However, the DSO facility will not be available to unit holder(s) under the Daily Dividend Option in the Source Scheme(s). Unit holder’s enrolment under the DSO facility will automatically override any previous instructions for 'Dividend Payout' or 'Dividend Reinvestment' facility in the Source Scheme.

4) The enrolment for DSO facility should be for all units under the respective Dividend Plan / Option of the Source Scheme. Instructions for part Dividend Transfer and part Dividend Payout / Reinvestment will not be accepted. The dividend amount will be invested in the Target Scheme under the same folio. Accordingly, the unit holder(s) details and mode of holding in the Target Scheme will be same as in the Source Scheme.

5) The enrolment to avail of DSO facility has to be specified for each Scheme/Plan/Option separately and not at the folio level.

6) Under DSO, dividend declared (as reduced by the amount of applicable statutory levy and deductions) in the Source scheme (subject to minimum of Rs.1,000/-) will be automatically invested into the Target Scheme, as opted by the unit holder, on the immediate next Business Day after the Record Date at the applicable NAV of the Target Scheme, subject to applicable load as specified under paragraph 9 below and accordingly equivalent units will be allotted in the Target Scheme, subject to the terms and conditions of the respective Target Scheme.

7) The provision for 'Minimum Application Amount' specified in the respective Target Scheme's Scheme Information Document (SID) will not be applicable under DSO. E.g. the minimum application amount for new investors in Axis Bluechip Fund - Growth Plan is Rs. 5,000/-. However in case of DSO, a Unit Holder can avail of the facility irrespective of the amount of dividend (subject to a minimum of Rs. 1,000/-).

8) The Minimum amount of dividend eligible for transfer under Dividend Sweep Option is Rs. 1,000/- (Rupees One Thousand Only). In case the dividend sweep is being less than eligible amount, then the dividend will be re-invested in source scheme/ payout as per the existing option.

9) Load Structure: The dividend amount to be invested under the DSO from the Source Scheme to the Target Scheme shall be invested by subscribing to the units of the Target Scheme at applicable NAV, subject to payment of Entry/Exit Load as under: Entry Load (Target Scheme) Direct Applications & Applications routed through any distributor/agent/broker: Nil Exit Load (Source Scheme): Nil


Exit Load (Target Scheme): As per the relevant SID The Trustee/AMC reserves the right to change the load structure under the DSO Facility at any time in future on a prospective basis.

10) The Account Statement will be issued by mail or by email (if opted by the unit holder) to the unit holder as per regulations. In case of specific request received from unitholders, the Mutual Fund shall endeavour to provide the account statement to the unitholders after every transaction of Dividend Transfer.

11) Unitholders who wish to enroll for DSO facility are required to fill DSO Enrolment Form available with the ISCs, distributors/agents and also displayed on the website www.axismf.com. The DSO Enrolment Form should be completed in English in Block Letters only. The DSO Enrolment Form complete in all aspects should be submitted at any of the Investor Services centre (ISCs) of Axis Mutual Fund.

12) The request for enrolment for DSO must be submitted at least 10 days prior to the Record Date for the dividend. In case of the condition not being met, the enrolment would be considered valid from the immediately succeeding Record Date of the dividend, provided the difference between the date of receipt of a valid application for enrolment under DSO and the next Record Date for dividend is not less than 10 days.

13) Unitholder(s) are advised to read the SID of Target Scheme(s) carefully before investing. The SID/KIM of the respective Scheme(s) are available with the ISCs of Axis Mutual Fund, brokers / distributors and also displayed on the Axis Mutual Fund website i.e. – www.axismf.com

14) Unit holders will have the right to discontinue the DSO facility at any time by sending a written request to the ISC. Notice of such discontinuance should be received at least 10 days prior to the Dividend Record Date. On receipt of such request, the DSO facility will be terminated. At the time of discontinuation of DSO facility, the Unit holders should indicate their choice of option i.e. dividend reinvestment or dividend payout. In the event the Unitholder does not indicate his choice of dividend option, the dividend, if any, will be reinvested (compulsory payout if dividend reinvestment option is not available) in the Source Scheme. Once the request for DSO is registered, then it shall remain in force unless it is terminated as aforesaid.

15) The Trustee/AMC reserves the right to change/modify the terms and conditions of the DSO.

16) The Trustee reserves the right to change/ modify the terms and conditions of the DSO at a later date on a prospective basis.

TRIGGER FACILITY: Trigger is an event on the happening of which, the Fund will automatically redeem / switch the units, as the case may be, on behalf of the investor, on the date of happening of the event. Accordingly, a trigger will activate a transaction when the event selected for has reached the trigger point. All redemptions/ switches etc. linked to triggers will always be at the applicable NAV based prices of the day on which the event occurs. The investors opting for


the Trigger facility will also have right to redeem/ switch their holdings before happening of the trigger event. Please note that the trigger is an additional facility provided to the unit holders to save time on completing the redemption/ switch formalities on happening of a particular predetermined event. Trigger is not an assurance on part of AMC / Fund to the investor that he / she will receive a particular amount of money / appreciation and / or a percentage on redemption or will get a particular amount of capital appreciation or will minimise the loss to investor to a particular amount or percentage. 1. Schemes for which the facility is available:

Transferor Scheme(s) Transferee Scheme(s) Axis Liquid Fund Axis Liquid Fund Axis Treasury Advantage Fund

Axis Treasury Advantage Fund

Axis Short Term Fund Axis Short Term Fund Axis Banking & PSU Debt Fund

Axis Banking & PSU Debt Fund

Axis Bluechip Fund Axis Bluechip Fund Axis Midcap Fund Axis Midcap Fund Axis Focused 25 Fund Axis Focused 25 Fund Axis Triple Advantage Fund Axis Triple Advantage Fund Axis Regular Saver Fund Axis Regular Saver Fund Axis Gold Fund Axis Gold Fund Axis Dynamic Bond Fund Axis Dynamic Bond Fund Axis Strategic Bond Fund Axis Strategic Bond Fund Axis Long Term Equity Fund Axis Long Term Equity Fund Axis Children's Gift Fund Axis Children's Gift Fund Axis Smallcap Fund Axis Smallcap Fund Axis Corporate Debt Fund Axis Corporate Debt Fund Axis Dynamic Equity Fund Axis Dynamic Equity Fund Axis Gilt Fund Axis Equity Hybrid Fund Axis Equity Hybrid Fund Axis Multicap Fund Axis Multicap Fund Axis Growth Opportunities Fund


Axis Ultra Short Term Fund Axis Ultra Short Term Fund Axis Overnight Fund Axis Overnight Fund Axis Nifty 100 Index Fund Axis Nifty 100 Index Fund

@ Investors who have completed the lock-in period specified in the Scheme Information Document may apply for trigger facility. 2. Under the Trigger facility, investors will have the following options

on the date of happening of the event: a) Full Redemption / Switch Out b) Redemption / Switch Out to the extent of capital appreciation

only c) Redemption / Switch Out to the extent of Principal amount only The trigger facility is available only for the options specified above and is not available for any adhoc amount that the investor may


specify. 3. The investors can select any one of the following trigger option(s)

under various plans / options of the scheme: i. Option to redeem / switch out in the event, Nifty Index reaches

or exceeds a specified level, at the end of any business day. Under this option, the investor can specify that if the index (NIFTY) reaches or exceeds a particular level at the close of any business day, then the amount specified by the investor will be either redeemed / switched to the selected transferee scheme. ii. Option to redeem / switch out in the event Nifty Index reaches or

goes below a specified level, at the end of any business day. Under this facility, the investor can specify that if the index (NIFTY) reaches a particular level or goes below that at the close of any business day, then the amount specified shall either be redeemed / switched to the selected transferee scheme. iii. Option to redeem / switch out in the event NAV reaches or

exceeds a specified level. Under this facility, the investor can specify the Net Asset Value (NAV) on reaching / exceeding which the amount specified will be redeemed / switched to the selected transferee scheme. iv. Option to redeem / switch out in the event NAV appreciates by

a specified percentage. Under this facility, the investor can choose a specific percentage, by which, if the scheme NAV appreciates, then the amount specified will be redeemed / switched to the selected transferee scheme. v. Option to redeem / switch out in the event NAV appreciates or

depreciates by a specified percentage. Under this facility, the investor can choose a specific percentage, by which, if the scheme NAV appreciates or depreciates, then the amount specified will be redeemed / switched to the selected transferee scheme. vi. Option to redeem / switch out in the event NAV depreciates by

a specified percentage Under this facility, the investor can choose a specific percentage, by which, if the scheme NAV depreciates, then the amount specified will be redeemed / switched to the selected transferee scheme. Notes: - A. For point no. iii above - The NAV level (in INR terms) specified by

the Unit holder must be in multiples of 5 paisa e.g. INR 10.50, INR.10.55, INR.10.60 etc.

B. For points no. iv, v and vi above - The NAV percentage level specified by the Unit holder must be in multiples of 1 %.

Terms & Conditions: 1. On the trigger date (the day of event occurrence), the

applicable amount will be redeemed /switched from the transferor scheme at the closing NAV of the day i.e. the trigger


date. 2. Switches can be made only where so permitted by the

respective Scheme Information Document of the Transferor/ Transferee schemes.

3. Once a trigger is activated and a transaction is processed, the same will not be reversed and it will be final and binding upon the Unit holder.

4. Trigger once activated would expire and would not be executed again.

5. Trigger facility shall be applicable subject to payment of exit load in the transferor scheme(s), if any.

6. The specified trigger will fail, if the investor(s) do not maintain sufficient balance in the scheme at the time of registration of trigger and on the trigger date.

7. Trigger will not get executed in case units are pledged or where lien is marked on units, at the time of receipt of request for trigger.

8. Day closing Nifty Index level would be considered in case of triggers linked to Nifty.

9. In case of partial or full switch/redemption, any trigger already registered for a particular transaction will be deactivated.

10. "Minimum Application Amount/ Minimum Additional Investment Amount" specified in the Scheme Information Document of the transferee schemes will not be applicable for Switches based on specified triggers limits being achieved.

11. NAV for switch /redemption: NAV of the trigger day will be considered for the purpose of Redemption/ switch. In case of non-business day in debt schemes but business day in case of equity schemes, switch-out from equity schemes will be processed on the trigger day and switch-in to Debt/ Liquid schemes will be processed on the next business day.

12. In case, if no plan / option is specified for switch transaction under trigger option, default plan / option, as specified in respective Scheme Information Document will be considered.

13. In case of any ambiguity or where the investor fails to specify whether the redemption / switch to be made is full or to the extent of capital appreciation or to the extent of Principal amount only, the transaction will not be processed.

14. All requests for registering or deactivating the trigger facility shall be subject to an advance notice of 10 (Ten) working days. Investors can deactivate the trigger facility by sending a written request to the Investor Service Centers.

APPLICATION VIA ELECTRONIC MODE: Subject to the Investor fulfilling certain terms and conditions stipulated by the AMC as under, Axis AMC , Axis Mutual Fund or any other agent or representative of the AMC, Mutual Fund, the Registrar & Transfer Agents may accept transactions through any electronic mode including fax/web/ electronic transactions as permitted by SEBI or other regulatory authorities: a) The acceptance of the fax/web/electronic transactions will be

solely at the risk of the transmitter of the fax/web/ electronic transactions and the Recipient shall not in any way be liable or responsible for any loss, damage caused to the transmitter


directly or indirectly, as a result of the transmitter sending or purporting to send such transactions.

b) The recipient will also not be liable in the case where the transaction sent or purported to be sent is not processed on account of the fact that it was not received by the Recipient.

c) The transmitter’s request to the Recipient to act on any fax/web/electronic transmission is for the transmitter’s convenience and the Recipient is not obliged or bound to act on the same.

d) The transmitter acknowledges that fax/web/electronic transactions is not a secure means of giving instructions/ transactions requests and that the transmitter is aware of the risks involved including those arising out of such transmission.

e) The transmitter authorizes the recipient to accept and act on any fax/web/ electronic transmission which the recipient believes in good faith to be given by the transmitter and the recipient shall be entitled to treat any such fax/web/ electronic transaction as if the same was given to the recipient under the transmitter’s original signature.

f) The transmitter agrees that security procedures adopted by the recipient may include signature verification, telephone call backs which may be recorded by tape recording device and the transmitter consents to such recording and agrees to cooperate with the recipient to enable confirmation of such fax/web/ electronic transaction requests.

g) The transmitter accepts that the fax/web/ electronic transactions, where applicable shall not be considered until time stamped as a valid transaction request in the Scheme in line with the Regulations.

In consideration of the recipient from time to time accepting and at its sole discretion acting on any fax/ web/electronic transaction request received / purporting to be received from the transmitter, the transmitter agrees to indemnify and keep indemnified the AMC, Directors, employees, agents, representatives of the AMC, Axis Mutual Fund and Trustee from and against all actions, claims, demands, liabilities, obligations, losses, damages, costs and expenses of whatever nature (whether actual or contingent) directly or indirectly suffered or incurred, sustained by or threatened against the indemnified parties whatsoever arising from or in connection with or any way relating to the indemnified parties in good faith accepting and acting on fax/web/ electronic transaction requests including relying upon such fax/ electronic transaction requests purporting to come from the Transmitter even though it may not come from the Transmitter. The AMC reserves the right to discontinue the facility at any point of time. Distributors offer goal based financial planning (facility) to their clients. In order to encourage Investors to plan for their investments based on life goals (e.g. child’s education, retirement, wealth creation, etc), the Asset Management Company would assist in providing such facilities.


Since such facilities are aimed at helping Investors achieving their financial goals, certain features offered by Axis Mutual Fund may not be offered/available under such goal based investment folios. Under a folio, no additional purchase, switch and part redemption would be allowed. Requests for changes in goals/goal details will not be accepted. Under normal circumstances, there is no restriction on the right of the investor to transact directly with the mutual fund.

Multiple goals based investments can be applied for under one application form and a single cheque in the name of ‘Axis Mutual Fund First Investor name’ or ‘Axis Mutual Fund Permanent Account Number’ would have to be provided by the Investor. Transaction charge would be charged at application form level.

In case there is a broker code change/the investor is desirous of being a direct investor with the mutual fund, the investment will cease to be a part of the facility. Investors may note that investments under such facilities would be based on advice from the distributor /Financial advisor and the Asset Management Company acts purely in capacity as a facilitator for such transactions. The distributor(s) may choose to modify/change or discontinue the above stated facility. In such a case the investors may continue their investment with the AMC/any other distributor.

For further details/clarifications investors may contact the distributor(s) or the ISCs of the AMC.

Accounts Statements

• On acceptance of the application for subscription, an allotment confirmation specifying the number of units allotted by way of e-mail and/or SMS within 5 business days from the date of receipt of transaction request/allotment will be sent to the Unit Holders registered e-mail address and/or mobile number.

• In case of Unit Holders holding units in the dematerialized mode, the Fund will not send the account statement to the Unit Holders. The statement provided by the Depository Participant will be equivalent to the account statement.

• For those Unit holders who have provided an e-mail address, the AMC will send the account statement by e-mail.

• Unit holders will be required to download and print the documents after receiving e-mail from the Mutual Fund. Should the Unit holder experience any difficulty in accessing the electronically delivered documents, the Unit holder shall promptly advise the Mutual Fund to enable the Mutual Fund to make the delivery through alternate means. It is deemed that the Unit holder is aware of all security risks including possible third party interception of the documents and contents of the documents becoming known to third parties.

• The Unit holder may request for a physical account statement by writing/calling the AMC/ISC/Registrar. In case of specific request received from the Unit Holders, the AMC/Fund will provide the Account Statement to the Investors within 5 business days from the receipt of such request.

• The AMC shall issue Unit certificates within 5 business days from the date of receipt of request where the applicant so desires.


CONSOLIDATED ACCOUNT STATEMENT (CAS) CAS is an account statement detailing all the transactions and holding at the end of the month including transaction charges paid to the distributor, across all schemes of all mutual funds. CAS issued to investors shall also provide the total purchase value/cost of investment in each scheme. Further, CAS issued for the half-year (September/ March) shall also provide a. The amount of actual commission paid by AMC/Mutual Fund to

distributors (in absolute terms) during the half-year period against the concerned investor’s total investments in each scheme.

b. The scheme’s average Total Expense Ratio (in percentage terms) along with the break up between Investment and Advisory fees, Commission paid to the distributor and Other expenses for the period for each scheme’s applicable plan (regular or direct or both) where the concerned investor has actually invested in.

The word transaction will include purchase, redemption, switch, dividend payout, dividend reinvestment, systematic investment plan, systematic withdrawal plan and systematic transfer plan. a) For Unitholders not holding Demat Account: CAS for each calendar month shall be issued, on or before tenth day of succeeding month by the AMC.

The AMC shall ensure that a CAS for every half yearly (September/ March) is issued, on or before tenth day of succeeding month, detailing holding at the end of the six month, across all schemes of all mutual funds, to all such investors in whose folios no transaction has taken place during that period. The AMC shall identify common investors across fund houses by their Permanent Account Number (PAN) for the purposes of sending CAS. In the event the account has more than one registered holder, the first named Unit Holder shall receive the Account Statement. The AMC will send statement of accounts by e-mail where the Investor has provided the e-mail id. Additionally, the AMC may at its discretion send Account Statements individually to the investors. b) For Unitholders holding Demat Account: SEBI vide its circular no. CIR/MRD/DP/31/2014 dated November 12, 2014, in order to enable a single consolidated view of all the investments of an investor in Mutual Fund and securities held in demat form with Depositories, has required Depositories to generate and dispatch a single CAS for investors having mutual fund investments and holding demat accounts. In view of the aforesaid requirement, for investors who hold demat account, for transactions in the schemes of Axis Mutual Fund on or after February 1, 2015, a CAS, based on PAN of the holders, will be sent by Depositories to investors holding demat account, for each calendar month within 10th day of the succeeding month to the


investors in whose folios transactions have taken place during that month. CAS will be sent by Depositories every half yearly (September/March), on or before 10th day of succeeding month, detailing holding at the end of the six month, to all such investors in whose folios and demat accounts there have been no transactions during that period. CAS sent by Depositories is a statement containing details relating to all financial transactions made by an investor across all mutual funds viz. purchase, redemption, switch, dividend payout, dividend reinvestment, systematic investment plan, systematic withdrawal plan, systematic transfer plan (including transaction charges paid to the distributor) and transaction in dematerialized securities across demat accounts of the investors and holding at the end of the month. In case of demat accounts with nil balance and no transactions in securities and in mutual fund folios, the depository shall send account statement in terms of regulations applicable to the depositories. Investors whose folio(s)/ demat account(s) are not updated with PAN shall not receive CAS. Consolidation of account statement is done on the basis of PAN. Investors are therefore requested to ensure that their folio(s)/ demat account(s) are updated with PAN. In case of multiple holding, it shall be PAN of the first holder and pattern of holding. For Unit Holders who have provided an e-mail address to the Mutual Fund or in KYC records, the CAS is sent by e-mail. However, where an investor does not wish to receive CAS through email, option is given to the investor to receive the CAS in physical form at the address registered in the Depository system. Investors who do not wish to receive CAS sent by depositories have an option to indicate their negative consent. Such investors may contact the depositories to opt out. Investors who do not hold demat account continue to receive CAS sent by RTA/AMC, based on the PAN, covering transactions across all mutual funds as per the current practice. In case an investor has multiple accounts across two depositories; the depository with whom the account has been opened earlier will be the default depository. The dispatches of CAS by the depositories constitute compliance by the AMC/ the Fund with the requirement under Regulation 36(4) of SEBI (Mutual Funds) Regulations. However, the AMC reserves the right to furnish the account statement in addition to the CAS, if deemed fit in the interest of investor(s). Investors whose folio(s)/demat account(s) are not updated with PAN shall not receive CAS. Investors are therefore requested to ensure


that their folio(s)/demat account(s) are updated with PAN. For folios not included in the CAS (due to non-availability of PAN), the AMC shall issue monthly account statement to such Unit holder(s), for any financial transaction undertaken during the month on or before 10th of succeeding month by mail or email. For folios not eligible to receive CAS (due to non-availability of PAN), the AMC shall issue an account statement detailing holding across all schemes at the end of every six months (i.e. September/March), on or before 10th day of succeeding month, to all such Unit holders in whose folios no transaction has taken place during that period shall be sent by mail/e-mail. OPTION TO HOLD UNITS IN DEMATERIALISED (DEMAT) FORM Investors shall have an option to receive allotment of Mutual Fund units in their demat account while subscribing to the Scheme in terms of the guidelines/ procedural requirements as laid by the Depositories (NSDL/CDSL) from time to time. Investors desirous of having the Units of the Scheme in dematerialized form should contact the ISCs of the AMC/Registrar. Where units are held by investor in dematerialized form, the demat statement issued by the Depository Participant would be deemed adequate compliance with the requirements in respect of dispatch of statements of account. In case investors desire to convert their existing physical units (represented by statement of account) into dematerialized form or vice versa, the request for conversion of units held in physical form into Demat (electronic) form or vice versa should be submitted alongwith a Demat/Remat Request Form to their Depository Participants. In case the units are desired to be held by investor in dematerialized form, the KYC performed by Depository Participant shall be considered compliance of the applicable SEBI norms. Further, demat option shall also be available for SIP transactions. Units will be allotted based on the applicable NAV as per Scheme Information Document and will be credited to investors Demat Account on weekly basis on realization of funds. Units held in Demat form are freely transferable in accordance with the provisions of SEBI (Depositories and Participants) Regulations, as may be amended from time to time. Transfer can be made only in favour of transferees who are capable of holding units and having a Demat Account. The delivery instructions for transfer of units will have to be lodged with the Depository Participant in requisite form as may be required from time to time and transfer will be affected in accordance with such rules / regulations as may be in force governing transfer of securities in dematerialized mode.


For details, Investors may contact any of the Investor Service Centres of the AMC.

Dividend The Dividend warrants/cheque/demand draft shall be dispatched to the Unit holders within 30 days of the date of declaration of the Dividend. The Dividend proceeds will be paid by way of EFT/NEFT/RTGS/Direct credits/ any other electronic manner if sufficient banking account details are available with Mutual Fund for Investor. In case of specific request for Dividend by warrants/cheques/demand drafts or unavailability of sufficient details with the Mutual Fund, the Dividend will be paid by warrant/cheques/demand drafts and payments will be made in favour of the Unit holder (registered holder of the Units or, if there are more than one registered holder, only to the first registered holder) with bank account number furnished to the Mutual Fund (please note that it is mandatory for the Unit holders to provide the Bank account details as per the directives of SEBI).

Redemption How to Redeem A Transaction Slip can be used by the Unit Holder to request for Redemption. The requisite details should be entered in the Transaction Slip and submitted at an ISC/Official Point of Acceptance. Transaction Slips can be obtained from any of the ISCs/Official Points of Acceptance. Investor can also place redemption through Telephone using Easy Call/ Easy SMS facility or may redeem Online through the AMC’s website subject to the terms and conditions as maybe stipulated from time to time.

Procedure for payment of redemption. 1. Resident Investors Redemption proceeds will be paid to the investor through Real Time Gross Settlement (RTGS), NEFT, Direct Credit, Cheque or Demand Draft. a) If investor had provided IFSC code in the application form, by

default redemption proceeds shall be credited to Investor’s account through RTGS/NEFT.

b) If Investor has neither provided RTGS code nor the NEFT code but have a bank account with Banks with whom the Fund would have an arrangement for Direct Credit from time to time, the proceeds will be paid through direct credit.

c) Incase if investor bank account does not fall in the above a to b categories, redemption proceeds will be paid by cheques/demand drafts, marked "Account Payee only" and drawn in the name of the sole holder / first-named holder (as determined by the records of the Registrar). The bank name and bank account number, as specified in the Registrar's records, will be mentioned in the cheque/demand draft. The cheque will be payable at par at all bank branch or specific cities. If the Unit Holder resides in any other city, he will be paid by a demand draft payable at the city of his residence and the demand draft charges shall be borne by the AMC (please refer SAI for details).


The redemption proceeds will be sent by courier or (if the addressee city is not serviced by the courier) by registered post/UCP. The dispatch for the purpose of delivery through the courier / postal department, as the case may be, shall be treated as delivery to the investor. The AMC / Registrar are not responsible for any delayed delivery or non-delivery or any consequences thereof, if the dispatch has been made correctly as stated in this paragraph.

The AMC reserves the right to change the sequence of payment from (a) to (c) without any prior notice

For Unit holders who have given specific request for Cheque/Demand Draft Redemption proceeds will be paid by cheque/demand drafts and payments will be made in favour of the Unit holder with bank account number furnished to the Mutual Fund. (Please note that it is mandatory for the Unit holders to provide the Bank account details as per the directives of SEBI). Redemption cheques will be sent to the Unit holder’s address. The Trustee, at its discretion at a later date, may choose to alter or add other modes of payment. 2. Non-Resident Investors/PIO/OCI For NRIs, Redemption proceeds will be remitted depending upon the source of investment as follows: (i) Repatriation basis When Units have been purchased through remittance in foreign exchange from abroad or by cheque / draft issued from proceeds of the Unit Holder's FCNR deposit or from funds held in the Unit Holder's Non Resident (External) account kept in India the proceeds can also be sent to his Indian address for crediting to his NRE / FCNR / non-resident (Ordinary) account, if desired by the Unit Holder. (ii) Non-Repatriation basis When Units have been purchased from funds held in the Unit Holder's non-resident (Ordinary) account, the proceeds will be sent to the Unit Holder's Indian address for crediting to the Unit Holder's non-resident (Ordinary) account. (iii) FPI For FPIs, the designated branch of the authorized dealer may allow remittance of net sale / maturity proceeds (after payment of taxes) or credit the amount to the Foreign Currency account or Non-resident Rupee account of the FPI maintained in accordance with the approval granted to it by the RBI. The Fund will not be liable for any delays or for any loss on account of any exchange fluctuations, while converting the rupee amount in foreign exchange in the case of transactions with NRIs/ FPIs. The Fund may make other arrangements for effecting payment of redemption proceeds in future.


Effect of Redemptions The number of Units held by the Unit Holder in his / her / its folio will stand reduced by the number of Units Redeemed. Units once redeemed will be extinguished and will not be re-issued. The normal processing time may not be applicable in situations where requisite details are not provided by investors/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. AMC reserves the right to provide the facility of redeeming Units of the Scheme through an alternative mechanism including but not limited to online transactions on the Internet, as may be decided by the AMC from time to time. The alternative mechanism may also include electronic means of communication such as redeeming Units online through the AMC Website or any other website etc. The alternative mechanisms would be applicable to only those investors who opt for the same in writing and/or subject to investor fulfilling such conditions as AMC may specify from time to time. Signature mismatches If the AMC / Registrar finds a signature mismatch, while processing the redemption/ switch out request, then the AMC/ Registrar reserves the right to process the redemption only on the basis of supporting documents confirming the identity of the investors. List of such documents would be notified by AMC from time to time on its website. Important Note: All applicants for Purchase of Units /Redemption of Units must provide a bank name, bank account number, branch address, and account type in the Application Form. Unclaimed Redemptions and Dividends As per circular no. MFD/CIR/9/120/2000, dated November 24, 2000 issued by SEBI, the unclaimed Redemption and dividend amounts shall be deployed by the Fund in money market instruments and such other instruments/securities as maybe permitted from time to time. The investment management fee charged by the AMC for managing such unclaimed amounts shall not exceed 50 basis points. The circular also specifies that investors who claim these amounts during a period of three years from the due date shall be paid at the prevailing NAV. Thus, after a period of three years, this amount can be transferred to a pool account and the investors can claim the said amounts at the NAV prevailing at the end of the third year. In terms of the circular, the onus is on the AMC to make a continuous effort to remind investors through letters to take their unclaimed amounts. The details of such unclaimed amounts shall be disclosed in the annual report sent to the Unit Holders. Further, according to circular no. SEBI/HO/IMD/DF2/CIR/P/2016/37 dated February 25, 2016 the unclaimed Redemption and dividend amounts may be deployed in separate plan of Liquid scheme/Money market mutual fund scheme floated by Mutual Funds specifically for deployment of the unclaimed Redemption and


dividend amounts. Delay in payment of redemption / repurchase proceeds

The AMC shall be liable to pay interest to the Unit holders at 15% or such other rate as may be prescribed by SEBI from time to time, in case the Redemption / Repurchase proceeds are not made within 10 Business Days of the date of Redemption / Repurchase. However, the AMC will not be liable to pay any interest or compensation or any amount otherwise, in case the AMC / Trustee is required to obtain from the Investor / Unit holders verification of identity or such other details relating to Subscription for Units under any applicable law or as may be requested by a Regulatory Agency or any government authority, which may result in delay in processing the application.

Facility to transact in units of the Schemes through MF Utility portal & MFUI Points of Services pursuant to appointment of MF Utilities India Pvt. Ltd.

AMC has entered into an Agreement with MF Utilities India Pvt. Ltd. (“MFUI”), a “Category II – Registrar to an Issue” under SEBI (Registrars to an Issue and Share Transfer Agents) Regulations, 1993, for usage of MF Utility (“MFU”) - a shared services initiative of various Asset Management Companies, which acts as a transaction aggregation portal for transacting in multiple Schemes of various Mutual Funds with a single form and a single payment instrument. Accordingly, investors are requested to note that in addition to the existing official points of acceptance (“OPA”) for accepting transactions in the units of the schemes of the Axis Mutual Fund as disclosed in the SID, www.mfuonline.com i.e. online transaction portal of MFU and the authorized Points of Service (“POS”) designated by MUFI shall also be the OPA with effect from the dates as may be specified by MFUI on its website/ AMC by issuance of necessary communication. All financial and non-financial transactions pertaining to Schemes of Axis Mutual Fund can be done through MFU either electronically on www.mfuonline.com or physically through the POS of MFUI with effect from the respective dates as published on MFUI website against the respective POS locations. The list of POS of MFUI is published on the website of MFUI at www.mfuindia.com. This will be updated from time to time. The uniform cut-off time as prescribed under SEBI (Mutual Funds) Regulations, 1996, circulars issued by SEBI and as mentioned in the SID / KIM of Scheme shall be applicable for applications received on the portal of MFUI i.e. www.mfuonline.com. However, investors should note that transactions on the MFUI portal shall be subject to the terms & conditions (including those relating to eligibility of investors) as stipulated by MFUI / Axis Mutual Fund / the AMC from time to time and in accordance to the laws applicable. MFUI will allot a Common Account Number (“CAN”), a single reference number for all investments in the Mutual Fund industry, for transacting in multiple Schemes of various Mutual Funds through MFU and to map existing folios, if any. Investors can create a CAN by submitting the CAN Registration Form (CRF) and necessary documents at the MFUI POS. The AMC and / or its Registrar and Transfer Agent (RTA) shall provide necessary details to MFUI as may be needed for providing the required services to investors /

http://www.mfuonline.com/


http://www.mfuindia.com/



distributors through MFU. C. PERIODIC DISCLOSURES Net Asset Value This is the value per Unit of the scheme on a particular day. You can ascertain the value of your investments by multiplying the NAV with your Unit balance.

The AMC will calculate and disclose the NAV of the Scheme on all the Business Days. The AMC shall update the NAVs on the website of the AMC (www.axismf.com) and of the Association of Mutual Funds in India - AMFI (www.amfiindia.com) before 11.00 p.m. on every Business Day. If the NAVs are not available before the commencement of Business Hours on the following day due to any reason, the Mutual Fund shall issue a press release giving reasons and explaining when the Mutual Fund would be able to publish the NAV. Information regarding NAV can be obtained by the Unit holders / Investors by calling or visiting the nearest ISC.

Monthly and Half yearly Disclosures: Portfolio / Financial Results This is a list of securities where the corpus of the scheme is currently invested. The market value of these investments is also stated in portfolio disclosures.

The AMC will disclose the portfolio of the Scheme (alongwith ISIN) as on the last day of the month / half year on the website of the Mutual Fund and AMFI within 10 days from the close of each month/ half year (i.e. 31st March and 30th September) respectively in a user-friendly and downloadable spreadsheet format. Further, AMC shall publish an advertisement in an all India edition of one national English daily newspaper and one Hindi newspaper, every half year, disclosing the hosting of the half-yearly statement of its schemes’ portfolio on the website of the Mutual Fund and AMFI and the modes through which unitholder(s) can submit a request for a physical or electronic copy of the statement of scheme portfolio. The AMC will also provide a dashboard, in a comparable, downloadable (spreadsheet) and machine readable format, providing performance and key disclosures like Scheme’s AUM, investment objective, expense ratios, portfolio details, scheme’s past performance etc. on website.

Half Yearly Results

The Mutual Fund shall within one month from the close of each half year, that is on 31st March and on 30th September, host a soft copy of its unaudited financial results on the website of the AMC and AMFI. The mutual fund shall publish an advertisement disclosing the hosting of such financial results on their website, in atleast one English daily newspaper having nationwide circulation and in a newspaper having wide circulation published in the language of the region where the Head Office of the Mutual Fund is situated. The unaudited financial results will also be displayed on the website of the AMC and AMFI.

Annual Report The Scheme wise annual report or an abridged summary thereof shall be mailed (emailed, where e mail id is provided unless otherwise required) to all Unit holders not later than four months (or such other period as may be specified by SEBI from time to time) from the date of closure of the relevant accounting year (i.e. 31st March each year) and full annual report shall be available for inspection at the Head Office of the Mutual Fund and a copy shall be made available to the Unit holders on request on payment of nominal fees, if any. Scheme wise annual report shall also be displayed on the website of the AMC


(www.axismf.com) and Association of Mutual Funds in India (www.amfiindia.com). Unitholders whose email addresses are not registered with the Mutual Fund may ‘opt-in’ to receive a physical copy of the annual report or an abridged summary thereof. Further, AMC shall provide a physical copy of the abridged summary of the Annual Report, without charging any cost, on a specific request received from a unitholder. AMC shall also publish an advertisement every year, in an all India edition of one national English daily newspaper and in one Hindi newspaper, disclosing the hosting of the scheme wise annual report on the website of the Mutual Fund and AMFI and the modes through which a unitholder can submit a request for a physical or electronic copy of the annual report or abridged summary thereof.

Associate Transactions

Please refer to Statement of Additional Information (SAI).

Taxation Rates applicable for the FY 20-21 The information is provided for general information only. However, in view of the individual nature of the implications, each investor is advised to consult his or her own tax advisors/authorised dealers with respect to the specific amount of tax and other implications arising out of his or her participation in the schemes.

Particulars

Taxability in the hands of Individuals / Non-corporates / Corporates

Resident Non-Resident

Tax on Dividend Taxed in the hands of unitholders at applicable rate under the provisions of the Income-tax Act, 1961 (Act)

Taxed in the hands of unitholders at the rate of 20% u/s 115A of the Act. (plus applicable surcharge and cess)

Long Term Capital Gains: (Held for a period of more than 12 Months)

10% (plus applicable surcharge and cess) without indexation (Refer Note 4)

10% (plus applicable surcharge and cess) without indexation (Refer Note 4)

Short Term Capital Gains (Held for a period of 12 months or less)

15% (plus applicable surcharge and cess)

15% (plus applicable surcharge and cess)



Notes – 2. Axis Mutual Fund is a Mutual Fund registered with the Securities &

Exchange Board of India and hence the entire income of the Mutual Fund will be exempt from income tax in accordance with the provisions of Section 10(23D) of the Act.

2. Surcharge at the following rate to be levied in case of individual /HUF /

non-corporate non-firm unit holders for equity oriented mutual fund:

Income individual /HUF / non-corporate non-firm unit holders*

Rs 50 lakh to 1 crore (including income under section 111A and 112A of the Act)

10%

Above Rs 1 crore upto Rs 2 crores (including income under section 111A and 112A of the Act)

15%

Above Rs 2 crores upto Rs 5 crores (excluding income under section 111A and 112A of the Act)

25%*

Above Rs 5 crores (excluding income under section 111A and 112A of the Act)

37%*

*For income earned under provisions of section 111A and section 112A of the Act surcharge rate shall be 15% where income exceeds Rs 2 crores.

3. Surcharge rates for Companies/ firm Total Income Rate of Surcharge

for Domestic companies

Rate of Surcharge for Foreign Companies

Above Rs 1 crore upto Rs 10 crores

7% 2%

Above Rs 10 crores 12% 5%

*Surcharge rate shall be 10% in case resident companies opting taxation under section 115BAA and section 115BAB of the Act on any income earned.

In case of firm with total income exceeding Rs 1 crore, surcharge rate shall be 12%.

4. With effect from 1 April 2018, as per section 112A of the Act, long-term

capital gains, exceeding INR 100,000, arising from transfer of equity oriented mutual funds, shall be chargeable at the rate of 10% (plus applicable surcharge and cess).

5. The Scheme will attract securities transaction tax (STT) at 0.001% on the

redemption value.

6. Withholding of Taxation by Mutual Fund will as per applicable withholding tax rate

For further details on taxation please refer to the clause on Taxation in the SAI.


Stamp Duty Pursuant to Notification No. S.O. 1226(E) and G.S.R. 226(E) dated March 30, 2020 issued by Department of Revenue, Ministry of Finance, Government of India, read with Part I of Chapter IV of Notification dated February 21, 2019 issued by Legislative Department, Ministry of Law and Justice, Government of India on the Finance Act, 2019, stamp duty @0.005% of the transaction value would be levied on applicable mutual fund transactions. Accordingly, pursuant to levy of stamp duty, the number of units allotted on purchase transactions (including dividend reinvestment) to the unitholders would be reduced to that extent.

Investor services Investors can lodge any service request or complaints or enquire about NAVs, Unit Holdings, Dividends, etc by calling the Investor line of the AMC at "1800 221 322 " (toll-free number) and additional contact number 8108622211 from 8.00 am to 8.00 pm (Monday to Friday) and 9.00 am to 6.00 pm (on Saturday and Sunday) or 4325 5100 (at local call rate for enquiring at AMC ISC’s) or email – [email protected]. The service representatives may require personal information of the Investor for verification of his / her identity in order to protect confidentiality of information. The AMC will at all times endeavour to handle transactions efficiently and to resolve any investor grievances promptly. Any complaints should be addressed to Mr. Milind Vengurlekar who has been appointed as the Investor Relations Officer and can be contacted at: Address: Axis Asset Management Company Ltd. Axis House, 1st Floor, C-2, Wadia International Centre, Pandurang Budhkar Marg, Worli, Mumbai – 400 025 Phone no.: 022 43254123 For any grievances with respect to transactions through BSE StAR and / or NSE MFSS, the investors / Unit Holders should approach either the stock broker or the investor grievance cell of the respective stock exchange.

D. COMPUTATION OF NAV The Net Asset Value (NAV) per Unit under the Scheme will be computed by dividing the net assets of the Scheme by the number of Units outstanding on the valuation day. The Mutual Fund will value its investments according to the valuation norms, as specified in Schedule VIII of the SEBI (MF) Regulations, or such norms as may be specified by SEBI from time to time. The Net Assets Value (NAV) of the Units under the Scheme shall be calculated as shown below:

NAV (Rs.) =

Market or Fair Value of Scheme’s Investments

+ Current Assets including Accrued Income

- Current Liabilities and Provisions

No. of Units outstanding under Scheme on the Valuation Day


The NAV shall be calculated up to two decimal places. However, the AMC reserves the right to declare the NAVs up to additional decimal places as it deems appropriate. Separate NAV will be calculated and disclosed for each Option. The NAVs of the Growth Option and the Dividend Option under each of the Plans will be different after the declaration of the first Dividend. The AMC will calculate and disclose the NAV of the Scheme on all the Business Days.


IV. FEES AND EXPENSES This section outlines the expenses that will be charged to the Scheme. A. NEW FUND OFFER (NFO) EXPENSES These expenses are incurred for the purpose of various activities related to the NFO like sales and distribution fees paid marketing and advertising, Registrar & Transfer Agent expenses, printing and stationary, bank charges etc.

In accordance with the provisions of SEBI circular no. SEBI/ IMD/CIR No. 1/64057/06 dated April 04, 2006 and SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009, the Scheme, being an open-ended scheme, the NFO expenses has been borne by the AMC/Sponsor. B. ANNUAL SCHEME RECURRING EXPENSES These are the fees and expenses for operating the Scheme. These expenses include Investment Management and Advisory Fee charged by the AMC, Registrar and Transfer Agents’ fee, marketing and selling costs etc. as given in the table below: The AMC has estimated that up to 2.25% of the daily net assets of the Scheme will be charged to the Scheme as expenses. For the actual current expenses being charged, the Investor should refer to the website of the AMC. Expense Head % of daily

Net Assets Investment Management and Advisory fees Upto 2.25% Trustee fees Audit fees Custodian fees RTA fees Marketing & Selling expense incl. agent commission Cost related to investor communications Cost of fund transfer from location to location Cost of providing account statements and dividend redemption cheques and warrants Costs of statutory Advertisements Cost towards investor education & awareness (at least 2 bps) Brokerage & transaction cost over and above 12 bps and 5 bps for cash and derivative market trades resp. Goods & Services Tax (GST) on expenses other than investment and advisory fees GST on brokerage and transaction cost Maximum total expense ratio (TER) permissible under Regulation 52(6)(c) Upto 2.25% Additional expenses under regulation 52 (6A) (c) Upto 0.05% Additional expenses for gross new inflows from specified cities under regulation 52(6A)(b)

Upto 0.30%

All fees and expenses charged in a Direct Plan (in percentage terms) under various heads including the investment and advisory fee shall not exceed the fees and expenses charged under such heads in Regular Plan. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc. and no commission for distribution of Units will be paid/ charged under Direct Plan.


Fungibility of expenses: The expenses towards Investment Management and Advisory Fees under Regulation 52(2) and the various sub-heads of recurring expenses mentioned under Regulation 52(4) of SEBI (MF) Regulations are fungible in nature. Thus, there shall be no internal sub-limits within the expense ratio for expense heads mentioned under Regulation 52 (2) and (4) respectively. Further, the additional expenses under Regulation 52(6A)(c) may be incurred either towards investment & advisory fees and/or towards other expense heads as stated above. These estimates have been made in good faith as per the information available to and estimates made by the Investment Manager and are subject to change inter-se or in total subject to prevailing Regulations. The recurring expenses of the Scheme (including the Investment Management and Advisory Fees) shall be as per the limits prescribed under the SEBI (MF) Regulations. These are as follows: Assets under management Slab (In Rs. crore) Total expense ratio limits On the first Rs. 500 crores of the daily net assets 2.25% On the next Rs. 250 crores of the daily net assets 2.00% On the next Rs. 1250 crores of the daily net assets 1.75% On the next Rs. 3000 crores of the daily net assets 1.60% On the next Rs. 5000 crores of the daily net assets 1.50% On the next Rs. 40,000 crores of the daily net assets

Total expense ratio reduction of 0.05% for every increase of Rs. 5,000 crores of daily net assets or part thereof.

On the balance of the assets 1.05% The total expenses of the Scheme including the investment management and advisory fee shall not exceed the limit stated in Regulation 52(6) of the SEBI (MF) Regulations and amendments thereto. Expenses charged to the Scheme: A. In addition to the limits as specified in Regulation 52(6) of SEBI (MF) Regulations or the

Total Recurring Expenses (Total Expense Limit) as specified above, the following costs or expenses may be charged to the Scheme namely- Additional expenses for gross new inflows from specified cities (a) expenses not exceeding of 0.30 per cent of daily net assets, if the new inflows from

such cities as specified by SEBI/AMFI from time to time are at least - (i) 30 per cent of gross new inflows in the Scheme, or; (ii) 15 per cent of the average assets under management (year to date) of the

Scheme, whichever is higher:

Provided that if inflows from such cities is less than the higher of sub-clause (i) or sub-clause (ii), such expenses on daily net assets of the Scheme shall be charged on proportionate basis. Provided further that, expenses charged under this clause shall be utilised for distribution expenses incurred for bringing inflows from such cities. Provided further that, amount incurred as expense on account of inflows from such cities shall be credited back to the Scheme, in case the said inflows are redeemed within a period of 1 year from the date of investment.


Provided further that, additional TER can be charged based on inflows only from retail investors from B30 cities in terms of SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2018/137 dated October 22, 2018 read with SEBI/HO/IMD/DF2/CIR/P/2019/42 dated March 25, 2019. For this purpose inflows of amount upto Rs 2,00,000/- per transaction, by individual investors shall be considered as inflows from “retail investor”

Additional expenses under Regulation 52(6A)(c)

(b) additional expenses, incurred towards different heads mentioned under Regulations 52(2) and 52(4), not exceeding 0.05 per cent of daily net assets of the Scheme;

(c) GST payable on investment and advisory service fees (‘AMC fees’) charged by Axis

Asset Management Company Ltd.;

Further, brokerage and transaction costs which are incurred for the purpose of execution of trade and is included in the cost of investment shall not exceed 0.12 per cent in case of cash market transactions and 0.05 per cent in case of derivatives transactions.

B. Within the Total Expense Limit chargeable to the Scheme, following will be charged to the Scheme: (a) GST on other than investment and advisory fees, if any, (including on brokerage and

transaction costs on execution of trades) shall be borne by the Scheme (b) Investor education and awareness initiative fees of at least 2 basis points on daily net

assets of the Scheme. C. AMC fees charged by Axis AMC to the Scheme will be within the Total Expense Limit as

prescribed by SEBI Regulations, as amended from time to time. Expenses over and above the prescribed limit shall be charged / borne in accordance with the Regulations prevailing from time to time. The mutual fund would update the current expense ratios on its website (www.axismf.com) atleast three working days prior to the effective date of the change. Investors can refer ‘Total Expense Ratio of Mutual Fund Schemes’ section on https://www.axismf.com/total-expense-ratio for Total Expense Ratio (TER) details. Illustration of impact of expense ratio on scheme’s returns. For any scheme, NAV is computed on a daily basis factoring in all the assets as well as liabilities of the Scheme (including expenses charged). Expenses charged to the Scheme bring down its NAV and hence the investor's net returns on a corresponding basis. Illustration:

https://www.axismf.com/total-expense-ratio



Particulars Amount (in Rs.) No of units NAV per unit

(in Rs.) Invested on March 31, 2016 (A) 10,000 1,000 10.00 Value of above investment as on March 31, 2017 (gross of all expenses) (B) 11,500 1,000 11.50

Total Expenses charged during the year @2% p.a. (assumed) ( C ) 200 0.20

Value of above investment as on March 31, 2017 (net of all expenses) (D) = (B-C) 11,300 1,000 11.30

Returns (%) (gross of all applicable expenses) (E) = ((B/A)-1) 15.0%

Returns (%) (net of all applicable expenses) (F) = ((D/A)-1) 13.0%

Please Note: • The purpose of the above illustration is purely to explain the impact of expense ratio

charged to the Scheme and should not be construed as providing any kind of investment advice or guarantee of returns on investments.

• It is assumed that the expenses charged are evenly distributed throughout the year. The expenses of the Direct Plan under the Scheme may vary with that of the Regular Plan under the Scheme.

• Calculations are based on assumed NAVs, and actual returns on your investment may be more, or less.

• Any tax impact has not been considered in the above example, in view of the individual nature of the tax implications. Each investor is advised to consult his or her own financial advisor.

C. LOAD STRUCTURE Load is an amount which is paid by the Investor to redeem the Units from the Scheme. This amount is used by the AMC to pay commission to the distributors and to take care of other marketing and selling expenses. Load amounts are variable and are subject to change from time to time. For the current applicable structure, investors may refer to the website of the AMC (www.axismf.com) or may call at 1800 221 322 (toll-free number) and additional contact number 8108622211 from 8.00 am to 8.00 pm (Monday to Friday) and 9.00 am to 6.00 pm (on Saturday and Sunday) or can contact his distributor. SEBI vide its circular no. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009 has decided that there shall be no entry Load for all Mutual Fund Schemes. Type of Load Load chargeable (as %age of NAV) Entry Load Not Applicable Exit Load If redeemed / switched-out within 12 months from the date of allotment,

- For 10% of investments: NIL - For remaining investments: 1% If redeemed / switched – out after 12 months from the date of allotment: NIL

No exit load will be charged for switch between Regular Plan and Direct Plan where transaction is not routed through Distributor in Regular Plan. If the transaction in Regular Plan is routed through Distributor, then applicable exit load will be charged for switch from Regular Plan to Direct Plan. The load structure will be equally applicable to all special


products offered under the Scheme such as SIP, STP, etc. In case of switches between the Growth and Dividend Option in the same plan, no load is being charged by the schemes. Also, units allotted on reinvestment of dividends shall not be subject to load. However, for switches between equity schemes, load will be charged by the AMC. The entire exit load (net of GST), charged, if any, shall be credited to the Scheme. The Investor is requested to check the prevailing Load structure of the Scheme before investing. For any change in Load structure AMC will issue an addendum and display it on the website/Investor Service Centres. Under the Scheme, the AMC/Trustee reserves the right to change / modify the Load structure if it so deems fit in the interest of smooth and efficient functioning of the Mutual Fund. The AMC/Trustee reserves the right to introduce / modify the Load depending upon the circumstances prevailing at that time subject to maximum limits as prescribed under the Regulations. The Redemption Price however, will not be lower than 93% of the NAV. Any imposition or enhancement of Load in future shall be applicable on prospective investments only. The difference between the Redemption price and Sale price at any point in time shall not exceed the permitted limit as prescribed by SEBI from time to time which is presently 7% calculated on the Sale Price. At the time of changing the Load Structure: 1. An Addendum detailing the changes will be attached to Scheme Information

Document and Key Information Memorandum. The addendum may be circulated to all the distributors / brokers so that the same can be attached to all Scheme Information Document and Key Information Memorandum already in stock.

2. The addendum will be displayed on the website of the AMC and arrangements will be made to display the addendum in the form of a notice in all the Investor Service Centres and distributors / brokers’ office.

3. The introduction of the Exit Load along with the details may be stamped in the acknowledgement slip issued to the Investors on submission of the application form and may also be disclosed in the statement of accounts issued after the introduction of such Load.

4. A public notice shall be given in respect of such changes in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of region where the Head Office of the Mutual Fund is situated.

5. Any other measure which the Mutual Fund may consider necessary. The Trustee/AMC reserves the right to change the load structure subject to the limits prescribed under the Regulations. Any change in load structure shall be only on a prospective basis i.e. any such changes would be chargeable only for Redemptions from prospective purchases (applying first in first out basis). Transaction Charges In terms of SEBI circular no. CIR/IMD/DF/13/2011 dated August 22, 2011, as amended from time to time, transaction charge per subscription of Rs. 10,000/– and above shall be charged from the investors and shall be payable to the distributors/ brokers (who have opted in for charging the transaction charge) in respect of applications routed through distributor/ broker relating to purchases / subscription / new inflows only (lump sum and SIP), subject to the following:


• For Existing / New investors: Rs.100 / Rs.150 as applicable per subscription of Rs. 10,000/– and above

• Transaction charge for SIP shall be applicable only if the total commitment through SIP amounts to Rs. 10,000/– and above. In such cases the transaction charge would be recovered in maximum 4 successful installments.

• There shall be no transaction charge on subscription below Rs. 10,000/-. • There shall be no transaction charges on direct investments. • There shall be no transaction charges for transaction other than purchases / subscriptions

relating to new inflows such as Switches, etc. • Transactions carried out through the Stock Exchange platforms for mutual funds shall not

be subject to transaction charges. The requirement of minimum application amount shall not be applicable if the investment amount falls below the minimum amount required due to deduction of transaction charges from the subscription amount. The Transaction Charge as mentioned above shall be deducted by the AMC from the subscription amount of the Unit Holder and paid to the distributor and the balance shall be invested in the Scheme. The statement of account shall clearly state that the net investment as gross subscription less transaction charge and give the number of units allotted against the net investment. D. WAIVER OF LOAD FOR DIRECT APPLICATIONS Not applicable


V. RIGHTS OF UNIT HOLDERS Please refer to SAI for details.


VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY This section shall contain the details of penalties, pending litigation, and action taken by SEBI and other regulatory and Govt. Agencies.

1. All disclosures regarding penalties and action(s) taken against foreign Sponsor(s) may be limited to the jurisdiction of the country where the principal activities (in terms of income / revenue) of the Sponsor(s) are carried out or where the headquarters of the Sponsor(s) is situated. Further, only top 10 monetary penalties during the last three years shall be disclosed. Not Applicable

2. In case of Indian Sponsor(s), details of all monetary penalties imposed and/ or action

taken during the last three years or pending with any financial regulatory body or governmental authority, against Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company; for irregularities or for violations in the financial services sector, or for defaults with respect to shareholders or debenture holders and depositors, or for economic offences, or for violation of securities law. Details of settlement, if any, arrived at with the aforesaid authorities during the last three years shall also be disclosed. a. A show-cause notice was issued to Axis Bank by RBI dated November 16, 2017

following a statutory inspection which revealed violations of various regulations of the RBI in relation to assessment of NPAs. After considering the response and oral submissions of Axis Bank, the RBI found that the charges of non-compliance were substantiated and imposed a monetary penalty of INR 3,00,00,000 (Rupees Three Crores Only) on March 5, 2018.

b. The RBI had issued Show Cause Notice vide its letter dated 27.7.2018 with respect to dispensation of two Children Bank Play Notes of Rs.500 each dispensed to two customers from ATM at Kidwai nagar branch, Kanpur in non-compliance to its Master Circular on Detection and Impounding of Counterfeit Notes dated July 20, 2017 and, the Circular on Sorting of Notes – Installation of Note Sorting Machines dated November 19, 2009 and the Bank submitted the response on 16.8.2018. The RBI vide its letter dated 30.1.2019 imposed a penalty of Rs.20 lakhs and the Bank paid the same on 5.2.2019.

c. The RBI had issued Show Cause Notice vide its letter dated 29.8.2018 for wrongfully collecting 105 DDs, each for the amount exceeding Rs.50,000, aggregating Rs.5.56 crores in the account of Satkar Co-operative Credit Society Ltd. in non-compliance to its Master Circular on ‘Collection of Account Payee Cheques - Prohibition on Crediting Proceeds to Third Party Account’ dated January 22, 2014 and for the delay in reporting of above fraud in non-compliance to Master Directions on ‘Frauds - Classification and Reporting by commercial banks and select FIs’ dated July 1, 2016. The Bank submitted the response on 17.9.2018. The RBI vide its letter dated 30.1.2019 imposed a penalty of Rs.2 Crore and the Bank has paid the same on 16.2.2019.

d. The RBI had issued Show cause notice vide its letter dated 23.8.2018 with respect to non-compliance to guidelines issued dated 20.2.2018 on ‘Time-bound implementation & Strengthening of SWIFT related operational controls and the Bank submitted the response on 5.9.2018. The RBI vide its letter dated 25.2.2019 cautioned the Bank stating that any deficiency in this regard will attract penal action in future.

3. Details of all enforcement actions taken by SEBI in the last three years and/ or pending

with SEBI for the violation of SEBI Act, 1992 and Rules and Regulations framed there under including debarment and/ or suspension and/ or cancellation and/ or imposition of monetary penalty/adjudication/enquiry proceedings, if any, to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the


directors and/ or key personnel (especially the fund managers) of the AMC and Trustee Company were/ are a party. The details of the violation shall also be disclosed. Nil

4. Any pending material civil or criminal litigation incidental to the business of the Mutual

Fund to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors and/ or key personnel are a party should also be disclosed separately. Nil

5. Any deficiency in the systems and operations of the Sponsor(s) and/ or the AMC and/ or

the Board of Trustees/Trustee Company which SEBI has specifically advised to be disclosed in the SID, or which has been notified by any other regulatory agency, shall be disclosed. Nil

The Scheme under this Scheme Information Document was approved by the Trustee Company by passing a circular resolution on September 05, 2009. The Trustee has ensured that the Scheme is a new product offered by Axis Mutual Fund and is not a minor modification of its existing schemes.

Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable. for and on behalf of Axis Asset Management Company Sd/- Chandresh Kumar Nigam Managing Director & Chief Executive Officer Date: August 14, 2020


OFFICIAL POINTS OF ACCEPTANCE FOR ONGOING TRANSACTION AHMEDABAD Axis Asset Management Company Limited ,Mithakali Law Garden Road, Ellisbridge, 3rd Floor, 302, Megha House, Opp. Kotak Bank,Ahmedabad - 380 006.. AGRA: Axis Asset Management Company Limited ,Shop No. G-7, Ground Floor, Block-19/4, Sanjay Place, Agra - 282 002. BANGALORE Axis Asset Management Co.Ltd. Ground Floor, G-03 & G-03A, Prestige Meridian-1, No. 29, M.G. Road, Bangalore - 560 001 BHOPAL Axis Asset Management Co FM-8 Mansarovar Complex , Khasra No. 27/1/2 , NH-12 , Bhopal , MP. BHUBANESHWAR Axis Asset Management Co Unit no.3 (Part) Ground Floor Nandighosh Arena Plot no. 1 Bapuji Nagar Bhubaneshwar Odisha. BORIVALI Axis Asset Management Co. Ltd, Office No. 201, 2 Floor, REIS Magos, Ramdas Sutrale Marg, Off. Chandavarkar Road, Borivali (West), Mumbai, Maharashtra - 400092. CHANDIGARH Axis Asset Management Co.Ltd. 2nd Floor, SCO No 2471, Sector 22C, Chandigarh - 160022. CHENNAI Axis Asset Management Co. Ltd. 1st Floor , Door no. 168 Anna Salai , Opp. To Spencer Plaza , Chennai , Tamil Nadu - 600 002., COIMBATORE Axis Asset Management Company Limited, 1st Floor, Shylaja Complex, 575 DB Road, R. S. Puram, Near Head Post Office, Coimbatore - 641 002. DEHRADUN Axis Asset Management Co. Ltd., 59/3 First Floor, Rajpur Road, Above IDBI Bank, Dehradun – 248001. FORT Axis Asset Management Company Limited , 112, 1st Floor, Yusuf Building, Plot No. 49, Veer Nariman Road, Hutatma Chowk, Fort, Mumbai - 400 001. GUWAHATI Axis Asset Management Co. ltd 2C 2nd Floor, “Dihang Arcade”, ABC, G.S. Road Opp Dona Planet Guwahati 781005. HYDERABAD Axis Asset Management Company Ltd, 2nd Floor, Nerella House, Panjagutta, Hyderabad - 500 082. INDORE Axis Asset Management Co. ltd office No. 211 2nd Floor Megapolis Square Block A 579, M.G Road .opp Treasure Island Mall Indore 452001 M.P JAIPUR Axis Asset Management Company Ltd, 305, 3 Floor, Green House, Near Ahinsa Circle, Ashok Marg, C Scheme, Jaipur - 302001.Rajasthan. JALANDHAR Axis Asset Management Co. Ltd , SCO 5-6, 1st Floor, Puda Complex, Opp Suvidha Center, Ladowali Road, Jalandhar - 144 001 KANPUR Axis Asset Management August Company Limited, 305-306, 3rd Floor, Civil Lines, Kan Chamber, Kanpur – 208001. KOCHI Axis Asset Management Company Limited,Door No.40/9336 ,2nd Floor ,Chackos Towers ,Padma Pullepady Road ,Kochi 682 035 Kerala. KOLKATA Axis Asset Management Company Ltd, Ground Floor, Kanak Building,41, Chowringhee Road Kolkata - 700071. LUCKNOW Axis Asset Management Co. Ltd, Unit No 5, 6 & 7, Halwasiya's Commerce House, 2nd Floor, Habibullah Estate, 11, M.G.Marg, Hazratganj, Lucknow - 226001. LUDHIANA Axis Asset Management Co. Ltd. SCO - 28, First Floor, Feroz Gandhi Market, Ludhiana - 141001. MUMBAI Axis Asset Management Company Limited Axis House, First Floor, C-2, Wadia International Centre, Pandurang Budhkar Marg, Worli, Mumbai - 400025. MUMBAI (Indiabulls) Axis Asset Management Company Ltd. Unit No. 902, 9th Floor, Indiabulls Finance Center, Tower 2, Senapati Bapat Marg, Mumbai - 400013. NAGPUR Axis Asset Management Company Ltd. 1st Floor, "The Edge", 12, Shankar Nagar, WHC Road, Nagpur-440010 NASIK Axis Asset Management Company Limited Shop No. G-7,GroundFloor, Rajvee Enclave, Old Pandit Colony, Nasik - 422 001, Maharashtra. NEW DELHI Axis Asset Management Company Ltd. 702-705, 7th Floor, Narain Manzil, Barakhamba Road, Connaught Place, New Delhi - 110001. PANAJI Axis Asset Management Company Limited Ground Floor, Shop No. G-7, Edcon Towers, Menezes Braganza Road, Panjim, Goa - 403001. PUNE Axis Asset Management Company Ltd. Unit No. 102 & 102-A/B, 1st Floor, Signature Building, Bhandarkar Road, CTS No. 853, Plot No. 195, Bhamburda, Shivajinagar, Pune - 411005.PATNA Axis Asset Management Company Ltd. D - 309/ 310, 3 Floor, Dumroan Palace, Frazer Road, Patna 800 001. RAIPUR Axis Asset Management Company Ltd ,Office No. T -10, 3rd Floor, Raheja Towers, Fafadih , Chowk Jail Road, Raipur, Chhattisgarh - 492001. RAJKOT Axis Asset Management Co. ltd 206, Metro Plaza Jansata Chowk Near Eagle Travels Moti Tanki Chowk , Rajkot - 360001. SURAT Axis Asset Management Company Limited,HG-2A, International Trade Centre(ITC), Majura Gate Crossing, Ring Road ,Surat Gujarat, India. Thane Axis Asset Management Company Ltd, Manjula Arcade, 2nd Floor, Gokhale Road, Naupada, Thane (West) - 400 602. Vadodara Axis Asset Management Company Limited 3rd Floor, 306, Emerald Complex, Race Course, Near Bird Circle, Old Padra Road, Vadodara -


390 007.Amritsar Axis Asset Management Co. Ltd SCO-25, First floor, District shopping Centre, B-Block, Ranjit Avenue, Amritsar – 143001. Varanasi Axis Asset Management Company Ltd. 7th Floor, Arihant Complex, D-64/127 C-H, Sigra, Varanasi, Uttar Pradesh - 221010. Visakhapatnam Axis Asset Management Company Limited, S3, 3rd Floor, Navaratna Jewel Square, Beside Jyothi, Book Depot, Dwarakanagar, Visakhapatnam - 530 016. KFIN TECHNOLOGIES PRIVATE LIMITED INVESTOR SERVICE CENTERS Adyar KFintech Private Ltd,New No 51, Gandhi Nagar,First Main Road, Adyar Chennai-600 020 Agartala, Jagannath Bari Road Bidur Karta Chowmuhani Agartala – 799001 • Agra House No. 17/2/4, 2nd Floor, Deepak Wasan Plaza, Behind Hotel Holiday INN, Sanjay Place, in the city of Agra – 282 002, Uttar Pradesh • Ahmedabad, Office No. 401, on 4 Floor, ABC-I, Off. C.G. Road, Ahmedabad-380009. Ajmer, 1-2, II Floor Ajmer Tower, Kutchary Road Ajmer - 305 001. Akola Shop No-30, Ground Floor, Yamuna Tarang Complex, N H No 06, Murtizapur Road, Akola 444004 • Alambagh KSM Tower,CP-1 Sinder Dump, Near Alambagh Bus Station, Alambagh, Lucknow 226 005• Aligarh Sebti Complex Centre Point, in the city of Aligarh – 202 001, Uttar Pradesh • Allahabad Meena Bazar" 2nd Floor, 10, S. P. Marg, Civil Lines, Subhash Chauraha, in the city of Allahabad – 211 001,Uttar Pradesh• Alleppy 3rd Floor, J.P.Tower, 17/1424(184), VCSB Road, Zilla Court Bridge Road, Mullackal, Alleppey – 688011, Kerala • Alwar Office Number 137, First Floor, Jai Complex Road No – 2, Alwar - 301001, Rajasthan,,,Alwar,301001,Rajasthan • Aliganj Hig-67, Sector E, Aliganj, Lucknow 226 024 • Amaravathi Shop No. 21, 2nd Floor, Gulshan Tower Near Panchsheel Talkies ,Jaistambh Square, Amravati(M.H.) Pincode 444601 Ambala 6349, 2nd Floor, Nicholson Road, Adjacent Kos Hospital Ambala Cant,Ambala,133001,Haryana. Amritsar 72-A, Taylor'S Road Aga Heritage Gandhi Ground Amritsar - 143 001 Anand 201 Sai Apartment , Behind New Bus Stand Anand Pin code 388001 • Andheri 6 & 7, Andheri Industrial Estate, Veera Desai Road, Andheri (West), Mumbai 400 053 • Ananthapur Plot No: 12-313, Balaji Towers, Suryanagar, Ananthapur Village, Pincode - 515001, Ananthapur Dist, Andhra Pradesh • Ankleshwar L/2, Keval Shopping Center Old National Highway Ankleshwar 393002 • Asansol 112/N, G. T. Road, Bhanga Panchil, Asansol 713 303, Paschim Bardhaman, West Bengal. • Aurangabad Shop no B 38, Motiwala Trade Centre,Nirala Bazar ,Aurangabad 431001,Maharastra•Azamgarh House No. 290, Ground Floor, Civil lines, Near Sahara Office, in the city of Azamgarh – 276 001, Uttar Pradesh • Balasore 1-B. 1st Floor, Kalinga Hotel Lane, Baleshwar, Baleshwar Sadar, PIN: 756001, ORISSA, Balasore • Bangalore Old No : 35 , New No - 59, 1 Floor Kamala Nivas, Puttanna Road, Basavanagudi, Bangalore 560004 • Bankura KFintech Pvt Ltd. Plot nos- 80/1/A, NATUNCHATI MAHALLA, 3rd floor, Ward no-24, Opposite P.C Chandra, Bankura town, Bankura 722101 • Bareilly 54-CIVIL LINES, Ayub Khan Chauraha,,Bareilly,243001,Uttar Pradesh • Barhampore (WB) Thakur Market Complex, 72, Naya Sarak Road,Gorabazar, PO. Berhampore DIST. Murshidabad Barhampore -742101 • Baroda 203 Corner Point , Jetalpur Road, Baroda Gujarat 390 007 • Begusarai KFin Technologies Private Limited, C/o Dr Hazari Prasad Sahu, Ward No 13, Behind Alka Cinema, Begusarai (Bihar), Pin Code - 851117 • Belgaum CTS No 3939/ A2 A1, Above Raymonds Show Room Club Road, Belgaum – 590001.• Bellary No 1 KHB Colony, Gandhinagar, Bellary 583101 • Behrampur Opp –Divya Nandan Kalyan Mandap 3rd Labe Dharam Nagar Near Lohiya Motor, Berhampur, Orissa 760001• Betul107, Hotel Utkarsh, Awasthi Complex, J H College Road, Civil Lines, Beetul 460001 • Bhagalpur 2nd Floor, Chandralok Complex, Near Ghanta Ghar, in the city of Bhagalpur, Bihar,812001 • Bharuch 123 Nexus business Hub ,Near Gangotri Hotel ,B/s Rajeshwari Petroleum ,Makampur Road ,Bharuch -392001 • Bhatinda second floor, MCB -2-3-01043 GONIANA ROAD OPP: NIPPON INDIA MF GT RODE, NEAR HANUMAN CHOWK BHATINDA 161001 • Bhavnagar KFintech Private Ltd ,303, Sterling Point, Waghawadi Road, Bhavnagar – 364001 • Bhilai Office No. 2, 1 Floor; Plot No. 9/6, Nehru Nagar [East], Bhilai, Durg, Pin - 490 020; Chhattisgarh. • Bhilwara 27-28, 1st Floor, HiraPanna Complex, Pur Road, Bhilwara 311001 • Bhopal Gurukripa Plaza, Plot No. 48A, Opposite City Hospital, zone-2, M P nagar, Bhopal,Madhya Pradesh - 462011 • Bhubaneswar A/181, SAHEED NAGAR; JANARDAN


HOUSE; ROOM #: 07; 3RD FLOOR; DT: BHUBANESWAR; PIN-751007; ORISSA, Odisha • Bikaner 2nd Floor, Plot No 70 & 71, Panchshati Circle, SardulGunj Scheme, Bikaner 334003 • Bilaspur ANANDAM PLAZA; Shop.No.306; 3rd Floor; Vyapar Vihar Main Road; Bilaspur, PIN: 495001; Chattisgarh • Bokaro CITY CENTRE, PLOT NO. HE-07; SECTOR-IV; BOKARO STEEL CITY; PIN: 827004; JHARKHAND. • Borivali Ground Floor Himanshu Bldg. Sodawala Lane, Lina Chandawarkar Road, Borivali, Mumbai - 400 091. • Burdwan KFintech Private Ltd., Anima Bhavan, 1 Floor, Holding No. 42, Sreepally, G. T. Road, Burdwan, West Bengal - 713103. • Calicut Second Floor, Manimuriyil Centre, Bank Road, Kasaba Village, Calicut, Pincode – 673001 • Chandigarh First floor, SCO 2469-70, Sec. 22-C, Chandigarh, Pincode- 160022 • Chandrapur Shop No 5, Office No 2, 1st Floor, Routs Raghuvanshi Complex, Beside Azad Garden, Main Road, Chandrapur 442402 • Chembur Shop No. 4, Ground Floor, Shram Saflya Bldg, N G Acharya Marg, Chembur, Mumbai 400 071 • Chennai (Egmore) Flat No F11,First Floor, Akshya Plaza,(Erstwhile Harris Road), Opp Chief City Metropolitan Court, # 108, AdhithanarSalai, Egmore, Chennai 600002 • Chennai (T Nagar) G1, Ground Floor No 22, Vijayaraghava Road, Swathi Court, T Nagar, Chennai - 600 017.• Chinsura 96, DOCTORS LANE; PO: CHINSURAH; DT: HOOGHLY; PIN: 712 101; WEST BENGAL • Cochin Building Nos.39 Ali Arcade ,1st floor, Near Atlantis Junction, Kizhvana Road, Panampili Nagar, Cochin-682 036 Ernakulum District Coimbatore 3rd Floor 1056/1057, Jaya Enclave, Avanashi Road, Coimbatore - 641018. • Cuttack SHOP NO-45,2ND FLOOR, NETAJI SUBAS BOSE ARCADE, (BIG BAZAR BUILDING), ADJACENT TO RELIANCE TRENDS,DARGHA BAZAR, CUTTACK • Darbhanga Jaya Complex 2nd Floor, above furniture planet, Donar chowk Darbanga-846 003 • Dalhousie 2Nd Floor, Room no-226 R N Mukherjee Road, Kolkata 700 001 • Davangere D.No 162/6 , 1st Floor, 3rd Main, P J Extension, Davangere taluk, Davangere Mandal,Davangere,577002,Karnataka •Dehradun Kaulagarh Road, Near Sirmaur Marg, Above Reliance Webworld, Dehradun 248001 • Deoria K. K. Plaza, Above Apurwa Sweets, Civil Lines Road, in the city of Deoria – 274 001, Uttar Pradesh • Dewas 27 Rmo House, Station Road, Dewas 455001• Dhanbad 208, New Market, 2nd Floor,Katras Road, Bank More, Dhanbad 826001 • Dharwad G7 & 8, Sri Banashankari Avenue Ramnagar, OppNttfpb Road Dharward 580001 • Dhule Ground Floor Ideal Laundry, Lane No 4 , Khol Galli, Near Muthoot Finance , Opp Bhavasar General Store, Dhule – 424001• Dindigul KFin Technologies Private Limited, NO 59B New Pensioner street ,Opp Gomathi Lodge, Palani Road, Dindigul, Pincode--624001 Dindigul District, Tamil NaduTirupur • Durgapur MWAV – 16 Bengal Ambuja 2nd Floor, City Centre Durgapur 713216 • Eluru- House no 22B-12-1/1, Ground Floor, Gade vari street, power peta, Eluru 2 ,Eluru-West Godavari-AP-534002 • Erode Address No 38/1,Sathy Road,(VCTV Main Road),Sorna Krishna Complex,Ground Floor,Erode -638003, Tamilnadu • Faridabad A-2B 2nd Floor, Neelam Bata Road Peerki Mazar , Nehru Ground nit, Faridabad-121001 • Ferozpur2nd Floor, Malwal Road, Opp H M School, Ferozpur City 152002• Gandhidham Office No. 203, Second Floor Bhagwati Chamber, Plot No. 8 Sector - 1/A, Kutch Kala Road, Gandhidham - 370 201 • Gandhinagar Plot No. - 945/2, Sector - 7/C, Gandhinagar - 382 007 • Gaya Hotel Skylark, Swaraipuri Road, Gaya- 823001, Bihar • Ghaziabad FF - 31, Konark Building, Rajnagar, Pin code: 201003,Ghaziabad, Uttar Pradesh • Ghazipur House No. 148/19, Mahua Bagh, in the city of Ghazipur – 233 001, Uttar Pradesh • Gonda House No. 782, Shiv Sadan, ITI Road, Near Raghukul Vidya Peeth, Civil Lines, Gonda - 271 001, Uttar Pradesh. • Gorakhpur Above V I P House Ajdacent A D Girls Inter College, Bank Road, Gorakpur 273001 • Gomti Nagar B-1/2, Vijay Khand, Near Union Bank of India, Gomti Nagar, Lucknow 226 010 • Gulbarga KFin Technologies Private Limited, H NO 2-231, KRISHNA COMPLEX 2ND FLOOR Opp. Municipal corporation Office, Jagat, Station Main Road, KALABURAGI, Pincode -585 105• Guntur KFin Technologies Private Limited, 2nd Shatter, 1st Floor. Hno. 6-14-48, 14/2 Lane, Arundal Pet, Guntur, Andhra Pradesh, Pin code-522002 • Gurgaon 2nd Floor, Vipul Agora, M. G. Road, in the city of Gurgaon, 122001,Haryana • Guwahati 54 Sagarika Bhawan R G Baruah Road, (AIDC Bus Stop) Guwahati 781024 • Gwalior City Centre, Near Axis Bank, in the city of Gwalior Madhya Pradesh - Gwalior-474011 • Haldwani Shop No. 5, KMVN Shopping Complex, Haldwani – 263139, Uttarakhand • Haridwar Shop No. - 17, Bhatia Complex, Near Jamuna Palace, Pin code - 249410 Haridwar,


Uttarakhand. • Hassan SAS No. 212, Ground Floor, Sampige Road, 1st Cross Near Hotel Southern Star, K. R. Puram, Hassan - 573 201 • Hissar Shop No. 20, Ground Floor, R D City Centre, Railway Road, in the city of Hissar - 125 001,Haryana • Hoshiarpur 1st Floor, The Mall Tower, Opp Kapila Hospital, Sutheri Road, Near Maharaj Palace, Hoshiarpur 146001 • Hubli 22 & 23 , 3rd Floor Eurecka Junction, T B Road Hubli – 580029 • Hyderabad Vamsee Estates, Opp Bigbazaar, Ameerpet, Hyderabad-16, Telangana-Hyderabad-500 016 • Indore 101, Diamond Trade centre, Indore, Madhya Pradesh - Indore-452001 •Jabalpur 43, Naya Bazar, Opposite Shyam Talkies, Jabalpur (MP) 482001 • Jaipur Office Number 101, 1st Floor, Okay Plus Tower, Next to Kalyan Jewellers, Government Hostel Circle , Ajmer road , Jaipur – 320 001, Rajasthan, Jaipur,302001,Rajasthan • Jalandhar Lower Ground Floor, Office No 3, Arora Prime Tower, Plot No 28, G T Road, Jalandhar 144004 • Jalgaon KFin Technologies Pvt. Ltd,3rd floor, 22 Yashodhan Ring Road Jalgaon 425201 • Jalpaiguri D B C Road, Opp Nirala Hotel,Jalpaiguri,735101,West Bengal • Jammu 5 A/D Second Extension, opposite Panama Chowk Petrol Pump Gandhi Nagar Jammu 180 012. Jamnagar KFin Technologies Private Limited, 1st Floor, Madhav Plaza , Opposite SBI Bank, Near LAL Bunglow, Jamnagar - 361001, Gujarat. • Jamshedpur Madhukunj, 3 Floor, No. 1 Q Road, Sakchi, Bistupur, East, Singhbhum; Jamshedpur -831001, Jharkhand • Jaunpur R. N. Complex, Opposite Pathak Honda, Above Oriental Bank of Commerce in the city of Jaunpur – 222 002, Uttar Pradesh • Jhansi 1st Floor, Puja Tower, Near 48 Chambers, ELITE Crossing, in the city of Jhansi – 284 001, Uttar Pradesh • Jodhpur Shop No. 6, GROUND FLOOR, GANG TOWER, OPPOSITE ARORA MOTER SERVICE CENTRE, NEAR BOMBAY MOTER CIRCLE, Jodhpur-342003 • Junagadh 124/125, Punit Shopping Center, Ranavat Chowk, Junagadh Gujarat 362001 • Kannur 2nd Floor, Prabhat Complex, Fort Road, Kannur 670001 • Kanpur 15/46, Opp Muir Mills, Civil Lines, Kanpur 208001 • Karaikudi No. 2,Gopi Arcade 100 Feet Road, Karaikudi 630001 • Karaikudi Gopi Arcade, 100 Feet Road, Karaikudi 630001 • Karimnagar 2 Shetter, HNo. 7-2-607 Sri Matha Complex, Mankammathota, Karimnagar, Telangana, 505001 • Karnal 18/369,Char Chaman Kunjpura road Karnal-132001 • Karur No 88/11 B B Plaza, NRMP street, K S Mess back side, Karur – 639002 • Kharagpur SBI BUILDING, Malancha Road, Holding No 254/220, Ward No.16, Pincode 721301, PO: Kharagpur, PS: Kharagpur, Dist: Paschim Medinipur, West Bengal • Kolhapur 605/1/4 E Ward, Near Sultane Chambers, Shahupuri 2nd Lane Kolhapur 416001• Kolkata Apeejay House ( Beside Park Hotel ) 15 Park Street, C Block,3rd Floor Kolkata-700016 , West Bengal • Kollam Ground Floor, Vigneshwara Bhavan, Below Reliance Web World, Kadapakkada Kollam 691008 • Kolkata 1 R N Mukerjee Road, 2nd Floor Room No.- 226, Kolkata - 700 001. • Kota SHRI RAM COMPLEX, OPPOSITE MULTI PURPOSE SCHOOL, GUMANPURA, KOTA – 324007,Rajasthan • Kottayam 1st Floor, CSIAscension Church Complex, Kottayam 686001 • Korba 1 Nidhi Biz Complex, Plot No 5, Near Patidar Bhawan, T. P. Nagar, in the city of Korba – 495 677, Chhattisgarh • Koramangala No.408, Ist Floor, CITA Bldg, Next to Vodafone Office, Koramangala, Bangalore 560 095 • Kurnool KFin Technologies Pvt Ltd, Shop No:47, 2nd Floor, S komda Shoping mall, Kurnool,518001 • Lucknow 1st Floor, A. A. Complex, Thaper House, 5 Park Road, Hazratganj, Lucknow – 226 001 • Ludhiana 2 Floor, SCO 122, Above HDFC Mutual Fund, Feroze, Gandhi Market, Ludhiana - 141001 • Malda RAM KRISHNA PALLY; GROUND FLOOR; ENGLISH BAZAR; MALDA PIN: 732101; WEST BENGAL; WEST BENGAL • Malleshwaram No.337, GF-3, Karuna Complex, Sampige Road, Opp. New Vegetable Market, Malleshwaram, Bangalore 560003• Madurai Rakesh Towers, 30-C, Bye Pass Road, 1st Floor, Opp Nagappa Motors, Madurai 625010 • Mangalore Ground Floor, Mahendra Arcade, Kodial Bail, Mangalore 575003 • Margao 2nd Floor,Dalal Commercial Complex, Opp Hari Mandir, Pajifond, Margao-Goa 403601 • Mathura Shop No. 9, Ground Floor, Vihari Lal Plaza, Opposite Brijwasi Centrum, Near New Bus Stand, in the city of Mathura – 281 001, Uttar Pradesh • Meerut H No 5, Purva Eran, Opp Syndicate Bank, Hapur Road, Meerut, 250001,Uttar Pradesh • Mehsana Ul-47, Appolo Enclave, Opp Simandhar Temple, Modhera Char Rasta Highway, Mehsana 384002 • Mirzapur House No. 404, Ward No. 8, Dankeenganj, Mirzapur , Pincode – 231 001, Uttar Pradesh • Moga Near Dharamshala Brat Ghar, Civil Line, Dutt Road, Moga 142001 • Moradabad Chadha Complex, G. M. D. Road, Near Tadi Khana, Chowk, in the city of Moradabad – 244 001, Uttar Pradesh • Morena House


No. HIG 959, Near Court, Front of Dr. Lal Lab, Old Housing Board Colony, Morena – 476 001, Madhya Pradesh. • Mumbai - Office number : 01/04, 24/B, Raja Bahadur Compound, Ambalal Doshi Marg, Behind Bombay Stock Exchange, Fort Mumbai – 400001 • Muzaffarpur First Floor Saroj Complex , Diwam Road, Near Kalyani Chowk,Muzaffarpur,Bihar,842001• Mysore L-350, Silver Tower, Clock Tower, Ashoka Road, Mysore 570001 • Nadiad KFin Technologies Private Limited, 311-3rd Floor City Center Near Paras Circle Nadiad Pincode - 387001 • Nanganallur KFintech Private Ltd, No.: 155/7, Ullagaram, Medavakkam Main Road , (Opp. to IDBI ATM) , Madipakkam, Chennai - 600 091. • Nagarcoil 45, East Car Street, 1st Floor, Nagercoil - 629 001• Nagpur Plot No. 2 , Survey No. 1032 and 1033 of GagdaKHARE TOWN , DHARAMPETH, NAGPUR • Namakkal 105/2, Arun Towers, Paramathi Street, Namakkal 637 001 • Nanded Shop No 4, First Floor, Opp Bank of India, Santkrupa Market, Gurudwara Road, Nanded 431602 • Nasik S-12, Second Floor, Suyojit Sankul, Sharanpur Road, Nasik 422002 • Navsari 103, 1st floor Landmark Mall,Near Sayaji Library, Navsari,Gujarat - 396445• New Delhi 305, 3rd Floor New Delhi House, Bara Khamba Road Connaught Place New Delhi-110 001• Nellore D No:16-5-66 Ramarao Complex No:2Shop No:305,3rd Floor Nagula Mitta Rode, Opp Bank of Baroda. Nellore, Andhra Pradesh, 524001 • Nizamabad H No: 5-6-430, First Floor, Above Bank of Baroda, Beside HDFC Bank , Ginza View, Hyderabad Road, Nizamabad-503003. • Noida F - 21, Sector - 18, in the city of Noida,201301,Uttar Pradesh • Palghat 12/310, (No.20 & 21), Metro Complex, Head Post Office Road, Sultanpet, Palghat 678001 • Panipat 3rd Floor preet Tower, Behind Akash Institute, GT Road-Panipat, Pincode-132103 • Panjim KFintech Private Ltd Flat No.1-A, H. No. 13/70 Timotio Bldg Heliodoro Salgado Road, Next to Navhind Bhavan (Market Area) Panaji Goa – 403001 • Patiala Sco 27 D,Chhoti Baradari Patiala 147001 • Patna 3A, 3rd Floor, Anand Tower, Beside Chankya Cinema Hall, Exhibition Road, Patna 800001 • Pathankot 2nd Floor, Sahni Arcade Complex, Adj. Indra Colony Gate Railway Road, City Pathankot- 145001 • Pollachi KFin Technologies Pvt Ltd,1st floor, MKG complex, Opp to Gowri Shankar Hotel, Pollachi -642001 • Pondicherry First Floor No.7, Thiayagaraja Street Pondicherry 605001 • Pudukottai Sundaram Masilamani Towers, TS No 5476-5479, PM Road, Old Tirumayam Salai, Near Anna Statue, Jublie Arts, Pudukottai 622001 •Pune Office no 207-210, 2nd Floor, Kamla Arcade, Jangli Maharaj Road, Opposite Balgandharva, Shivaji Nagar, Pune 411005 • Raipur Office No. S-13, Second Floor,Raheja Tower, Fafadih Chowk, Jail Road, Raipur - 492 001.• Rajahmundry Dr No 61-4, First Floor, Rangachary Street, T Nagar, Rajahmundry 533101 • Rajapalayam Sri Ganpathy Complex 14B/5/18, T P Mills Road Rajapalayam 626117 •Rajkot 302, Metro Plaza, Near Moti Tanki Chowk , Rajkot, Gujarat - 360 001 •Ranchi Room No. 307, 3 rd Floor, Commerce Towers, Beside Mahabir Towers Main Road Ranchi - 834 001• Ratlam 1 Nagpal Bhavan, Freeganj Road, Tobatti, Ratlam 457001 • Renukoot C/o Mallick Medical Store,Bangali Katra Main Road, Renukoot, Dist. Sonebhadra (U.P.), Pincode - 231217 • Rewa 1st Floor, Angoori Building, Besides Allahabad Bank,Trans University Road, Civil Lines, Rewa 485001 • Rohtak Shop No 14, Ground Floor, Ashoka Plaza, Delhi Road, in the city of Rohtak – 124 001, Haryana • Roorkee Shree Ashadeep Complex, 16 Civil Lines, Near Income Tax Office, Roorkee, Uttaranchal 247667 • Rourkela 2nd Floor, Main Road, UDIT NAGAR, ROURKELA; SUNDARGARH; PIN: 769012; ORISSA • Sagar 1st floor satyam complex,infront of cantt shopping mall5 civil lines Sagar (MP)470002. • Saharanpur 18 Mission Market, Court Road, Saharanpur 247001 Uttar Pradesh • Salem No. 3/250 "F" Brindavan Road, 6th Cross , Perumal Kovil Back side, Fair Land's Salem - 636016, Tamil Nadu. • Sambalpur SAHEJ PLAZA; First Floor; Shop No. 219; Golebazar; Sambalpur; PIN: 768 001;ORISSA- Sambalpur-768001 • Satna Jainam Market, Purana Power House Chauraha, Panni Lal Chowk, in the city of Satna – 485 001, Madhya Pradesh, Satna,485001,Madhya Pradesh • Secunderabad C/o. KFin Technologies Pvt. Ltd. 1st Floor, Thirumala, Complex Paradise Circle, S.D. Road, Opp. Hotel Kamat, Secunderabad - 500 003 • Shaktinagar 1st/A-375, V V Colony Dist Sonebhadra Shaktinagar 231222 • Shivpuri Near Hotel Vanasthali, In Front of Sawarkar Park, A. B. Road, in the city of Shivpuri – 473 551, Madhya Pradesh, Shivpuri,473551,Madhya Pradesh • Shillong Mani Bhawan, Thana Road, Lower Police Bazar, Shillong 739001 • Shimla 1 Floor, Hills View Complex, Near Tara Hall, Shimla – 171 001, Himanchal Pradesh • Shimoga Uday Ravi


Complex, LLR Road, Durgi Gudi, Shimoga 577201 • Sikar 1st Floor, Super Towers Behind Ram Mandir, Station Road, Sikar 332001 • Silchar 1st Floor, Chowchakra Complex, N N Dutta Road, Premtala Silchar 788001 • Siliguri 2 Floor, Nanak Complex, Sevoke Road, Siliguri-734001 • Sitapur 12/12, Surya Complex, Station Road, Sitapur, Pin code – 261 001, Uttar Pradesh. • Sivakasi 363, Thiruthangal Road, Opp TNEB,Sivakasi 626 123 • Solan Disha Complex, 1St Floor, Above Axis Bank, Rajgarh Road, in the city of Solan – 173 212, Himanchal Pradesh • Solapur Siddeshwar Secrurities, No 6, Vaman Road, Vijaypur Road, Vaman Nagar,Solapur 413004 • Surat Office No: 516, 5th Floor, Empire State Building, Near Parag House, UdhnaDarwaja, Ring Road, Surat 395002 • Sonepat 2nd floor, DP Tower, Model Town, Near Subhash chowk, Sonepat, 131001,Haryana • Sri Ganganagar Address Shop No. 5, Opposite Bihani Petrol Pump, near Baba Ramdev Mandir, NH - 15,,,Sri Ganganagar,335001,Rajasthan • Srikakulam 4-1-28/1, Venkateshwara Colony Day & Night Junction, Srikakulam 532001 • Sultanpur 1st Floor, Ramashanker Market, Civil Line, in the city of Sultanpur – 228 001, Uttar Pradesh • Thanjavur No 1, Underground,Nallaiyah Complex, Srinivasam pillai road, Thanjavur -613001 • Thane Room No. 302, 3rd Floor, Ganga Prasad Near RBL Bank Ltd, Ram Maruti Cross Road, Naupada , Thane West , Mumbai - 400 602 • T Nagar G1, Ground Floor, No 22, Vijayaraghava Road Swathi Court, KFin Technologies Private Limited, No 23 | Cathedral Garden Road, Nungambakkam | Chennai - 600034• Thodupuzha First Floor, Pulimoottil Pioneer Pala Road, Thodupuzha 685584 • Tirunelveli Jeney Building, 55/18, S N Road, Near Arvind Eye Hospital, Tirunelveli 627001•Tirupur No 669A,Kamaraj Road,Near old collector office,Tirupur, Pincode- 641604 • Tirupathi H.No:12-3-330 2nd Floor , Tilak Road Near Four Piller Mandapam Tirupathi : 517501 • Tiruvalla 2nd Floor, Erinjery Complex, Near Kotak Securites, Ramanchira Tiruvalla 689107 • Trichur 2nd Floor, Brother's Complex, Near DhanaLaxmi Bank Head Office, Naikkanal Junction, Trichur 680001 • Trichy No 23C/1 E V R road, Near Vekkaliamman Kalyana Mandapam, Putthur, Trichy – 6200017 • Trivandrum 2nd Floor, Akshaya Towers, Above Jetairways, Sasthamangalam, Trivandrum 695010 • Tuticorin No 4B/A-10Mani Nagar, Mangal Mall, Palayamkottai road,Tuticorin - 628003 • Udaipur Shop No. 202, 2nd Floor business centre, 1C Madhuvan, Opp G P O Chetak Circle,Udaipur – 313001 • Ujjain Heritage Shop No. 227 , 87 Vishvavidhyalaya Marg,Station Road, Near ICICI bank Above Vishal Megha Mart,Ujjain (M.P) -456001 • Valsad 406 Dreamland Arcade , Opp Jade Blue , Tithal Road , Valsad -396001 , Gujarat • Vapi Shop No 5, Phikhaji Residency, Opp DCB Bank,Vapi Silvassa Road, Vapi 396195 • Varanasi D-64/132, 2nd Floor , KA, Mauza, Shivpurwa, Settlement Plot No 478, Pargana : Dehat Amanat, Mohalla Sigra,Varanashi,221010,Uttar Pradesh • Vashi C, Wing Flat NO. 324 1st Floor ,Vashi Plaza, Sector 17 Vashi, Navi Mumbai, Pincode 400 703 . • Vellore No 1, M N R Arcade, Officer's Line, Krishna Nagar, Vellore 632001 • Vijayawada Address-1StFloor, HNo26-23-Sundarammastreet,GandhiNagar,Vijayawada,Krishna AP,520003 • Vile Parle KFin Technologies Pvt Ltd, Shop No.1 Ground Floor,Dipti Jyothi Co-operative Housing Society,Near MTNL office P M Road,Vile Parle East, Mumbai 400 056 •Visakhapatnam Ground Floor, 48-10-40, Sri Nagar Colony, Visakhapatnam, AP-530016 •Vijayanagaram D No : 20-20-29, 1st Floor, Surya Nagar, Kalavapuvvu Meda, Near Ayodhya Stadium, Dharmapuri Road, Vizianagaram – 535002, Andhra Pradesh • Warangal Shop No22 , Ground Floor Warangal City Center,15-1-237, Mulugu Road Junction, Warangal Pin-506002, Telangana. • Yamuna Nagar B-V, 185/A, 2nd Floor, Jagadri Road, Near DAV Girls College, (UCO Bank Building) Pyara Chowk, Yamunanagar, Pincode -135 001, Haryana KFin Technologies Pvt. Ltd., Registrar & Transfer Agents of Axis Mutual Fund having its office at Unit: Axis Mutual Fund, Tower B, Plot number 31 & 32, Financial District, Gachibowli, Nanakramguda, Serilingampally Mandal, Hyderabad – 500032 is the collection centre of transactions / request for electronic transactions received from specified banks, financial institutions, distribution channel etc. (mobilized on behalf of their clients) with whom the AMC has entered or may enter into specific arrangements for purchase/ sale/switch of units.


In the wake of Covid-19 pandemic, transactions in schemes of Axis Mutual Fund can be submitted at Official Points of Acceptance (OPA) listed on website (www.axismf.com) during specified business hours till further notice. Investors are requested to visit website www.axismf.com and website of Registrar i.e. https://mfs.kfintech.com/mfs/ for changes in the list of OPA from time to time Website of the AMC (www.axismf.com) shall be official point of acceptance for existing investors. In addition to the existing Official Points of Acceptance for accepting transactions in the units of the schemes of the Axis Mutual Fund as disclosed in the SID, http://www.mfuindia.com/MFUPOS i.e. online transaction portal of MFU and the authorized Points of Service (“POS”) designated by MUFI shall also be the OPA. Axis Asset Management Company Limited (Investment Manager to Axis Mutual Fund) Axis House, 1st Floor, C-2 Wadia International, Pandurang Budhkar Marg, Worli, Mumbai - 400025, India. Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC) Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

https://mfs.kfintech.com/mfs/


Axis Triple Advantage Fund 1

S C H E M E I N F O R M A T I O N D O C U M E N T

AXIS TRIPLE ADVANTAGE FUND

An open ended scheme investing in equity, debt and gold

Continuous offer for Units at NAV based prices

This product is suitable for investors who are seeking*:

• capital appreciation & generating income over long term.

• Investment in a diversified portfolio of equity and equity related instruments, fixed income

instruments & gold exchange traded funds.

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Name of Mutual Fund : Axis Mutual Fund

Name of Asset Management Company : Axis Asset Management Company Ltd.

Name of Trustee Company : Axis Mutual Fund Trustee Ltd.

Addresses, Website of the entities : Axis House, 1st Floor, C-2, Wadia International Centre,

Pandurang Budhkar Marg, Worli, Mumbai – 400 025

www.axismf.com

Name of Sponsor : Axis Bank Ltd.

The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board

of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations or the

Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the Asset

Management Company (AMC). The Units being offered for public subscription have not been approved or

recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information

Document.

The Scheme Information Document sets forth concisely the information about the Scheme that a

prospective investor ought to know before investing. Before investing, investors should also ascertain about

any further changes to this Scheme Information Document after the date of this Document from the Mutual

Fund / Investor Service Centres / Website / Distributors or Brokers.

The investors are advised to refer to the Statement of Additional Information (SAI) for details of Axis Mutual

Fund, Tax and Legal issues and general information on www.axismf.com.

SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of

the current SAI, please contact your nearest Investor Service Centre or log on to our website.


This Scheme Information Document is dated November 29, 2019




TABLE OF CONTENTS

HIGHLIGHTS/SUMMARY OF THE SCHEME.................................................................................. 3

I. INTRODUCTION .............................................................................................................. 5

A. RISK FACTORS ........................................................................................................................... 5

B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME ............................................... 11

C. SPECIAL CONSIDERATIONS, if any ...................................................................................... 11

D. DEFINITIONS ............................................................................................................................ 12

E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY ............................................. 16

II. INFORMATION ABOUT THE SCHEME ............................................................................ 17

A. TYPE OF THE SCHEME ............................................................................................................ 17

B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? ................................................. 17

C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? ............................................................... 17

D. WHERE WILL THE SCHEME INVEST? ...................................................................................... 29

E. WHAT ARE THE INVESTMENT STRATEGIES ........................................................................... 36

F. FUNDAMENTAL ATTRIBUTES .................................................................................................. 49

G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE ? ......................................... 50

H. WHO MANAGES THE SCHEME? .......................................................................................... 50

I. WHAT ARE THE INVESTMENT RESTRICTIONS? ..................................................................... 52

J. CREATION OF SEGREGATED PORTFOLIO .......................................................................... 58

K. HOW HAS THE SCHEME PERFORMED? ............................................................................... 62

L. INVESTMENTS BY THE AMC ................................................................................................... 63

M. ADDITIONAL SCHEME RELATED DISCLOSURES ................................................................. 63

III. UNITS AND OFFER ........................................................................................................ 65

A. NEW FUND OFFER (NFO) .............................................................................................. 65

B. ONGOING OFFER DETAILS ........................................................................................... 74

C. PERIODIC DISCLOSURES .............................................................................................109

D. COMPUTATION OF NAV .............................................................................................112

IV. FEES AND EXPENSES ....................................................................................................113

A. NEW FUND OFFER (NFO) EXPENSES .................................................................................. 113

B. ANNUAL SCHEME RECURRING EXPENSES ....................................................................... 113

C. LOAD STRUCTURE ................................................................................................................ 115

D. WAIVER OF LOAD FOR DIRECT APPLICATIONS .............................................................. 117

V. RIGHTS OF UNIT HOLDERS ...........................................................................................118

VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR

INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF

BEING TAKEN BY ANY REGULATORY AUTHORITY ...................................................................119


HIGHLIGHTS/SUMMARY OF THE SCHEME

Investment objective

The Scheme seeks to generate long term capital appreciation by investing in a diversified

portfolio of equity and equity related instruments, fixed income instruments & gold

Exchange Traded Funds.

Investment Theme

The scheme seeks to benefit from the concept of asset allocation.

The aim of asset allocation is to improve risk adjusted returns through diversification across

various asset classes like equity, fixed income & gold which have low correlation with each

other.

Liquidity

The Scheme offers Units for Subscription and Redemption at NAV based prices on all

Business Days. Under normal circumstances, the AMC shall dispatch the redemption

proceeds within 10 business days from the date of receipt of request from the Unit holder.

Benchmark

The Scheme performance would be benchmarked against a customized composite

benchmark comprising of Nifty 50, Nifty Composite Debt Index and INR Price of Gold.

The Composition of the benchmark would be:

Asset Class/Instruments Benchmark Percentage

Equity and Equity Related Instruments Nifty 50 TRI 65

Debt and Money Market Instruments Nifty Composite Debt Index 20

Gold Exchange Traded Funds INR Price of Gold 15

Transparency/NAV Disclosure

The AMC will calculate and disclose the NAVs on all Business Days. The AMC shall update

the NAVs on its website (www.axismf.com) and of the Association of Mutual Funds in India -

AMFI (www.amfiindia.com) before 11.00 p.m. on every Business Day. If the NAVs are not

available before the commencement of Business Hours on the following day due to any

reason, the Mutual Fund shall issue a press release giving reasons and explaining when the

Mutual Fund would be able to publish the NAV.

The AMC will disclose the portfolio of the Scheme (alongwith ISIN) as on the last day of the

month/ half year on the website of the Mutual Fund and AMFI within 10 days from the close

of each month/ half year (i.e. 31st March and 30th September) respectively in a user-

friendly and downloadable spreadsheet format. Further, AMC shall publish an

advertisement, in an all India edition of one national English daily newspaper and in one

Hindi newspaper, every half year disclosing the hosting of the half-yearly statement of its

schemes portfolio on the website of the Mutual Fund and AMFI and the modes through

which unitholder can submit a request for a physical or electronic copy of the statement of

scheme portfolios.

The AMC will also provide a dashboard, in a comparable, downloadable (spreadsheet)

and machine readable format, providing performance and key disclosures like Scheme’s

AUM, investment objective, expense ratios, portfolio details, scheme’s past performance

etc. on its website.

The AMC will make available the Annual Report of the Scheme within four months of the

end of the financial year on its website and on the website of AMFI along with a link.

Plans and Options under the Plan(s) of the Scheme

Plans

Axis Triple Advantage Fund – Regular Plan

Axis Triple Advantage Fund – Direct Plan




Options under each plans

Growth

Dividend (Payout and Reinvestment Facility)

Direct Plan

Direct Plan is only for investors who purchase/ subscribe Units in a Scheme directly with the

Fund and is not available for investors who route their investments through a Distributor.

Eligible investors / modes for applying

All categories of investors (whether existing or new Unitholders) as permitted under the

Scheme Information Document of the Scheme are eligible to subscribe under Direct Plan.

Investments under Direct Plan can be made through various modes offered by the Fund for

investing directly with the Fund {except Platform(s) where investors’ applications for

subscription of units are routed through Distributors}.

All the plans will have common portfolio.

Minimum application amount

Rs. 5,000 and in multiples of Re. 1/- thereafter

Minimum Additional Purchase Amount

Rs.100 and in multiples of Re. 1/- thereafter

Minimum application amount is applicable at the time of creation of new folio and at the

time of first investment in a plan.

Loads

Entry Load: Not Applicable

Exit Load:

If redeemed/switch out within 12 months from the date of allotment:

- For 10% of investment: Nil

- For remaining investment: 1%

If redeemed/switch out after 12 months from the date of allotment: Nil

SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 has decided

that there shall be no entry load for all Mutual Fund schemes. 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.

For more details on Load Structure, please refer paragraph “Load Structure”.


I. INTRODUCTION

A. RISK FACTORS

i. Standard Risk Factors:

Investment in mutual fund units involves investment risks such as trading volumes,

settlement risk, liquidity risk, default risk including the possible loss of principal.

As the price / value / interest rates of the securities in which the Scheme invests

fluctuates, the value of your investment in the Scheme may go up or down.

Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future

performance of the Scheme.

Axis Triple Advantage Fund is the name of the Scheme and does not in any manner

indicate either the quality of the Scheme or its future prospects and returns.

The sponsor is not responsible or liable for any loss resulting from the operation of the

Scheme beyond the initial contribution of Rs. 1 lakh made by it towards setting up the

Fund.

Axis Triple Advantage Fund is not a guaranteed or assured return scheme.

ii. Scheme Specific Risk Factors

Risks associated with investments in Equities

Equity and equity related securities are volatile and prone to price fluctuations on a

daily basis. The liquidity of investments made in the Scheme may be restricted by

trading volumes and settlement periods. Settlement periods may be extended

significantly by unforeseen circumstances. The inability of the Scheme to make

intended securities purchases, due to settlement problems, could cause the Scheme to

miss certain investment opportunities. Similarly, the inability to sell securities held in the

Scheme portfolio would result at times, in potential losses to the Scheme, should there

be a subsequent decline in the value of securities held in the Scheme portfolio. Also, the

value of the Scheme investments may be affected by interest rates, currency

exchange rates, changes in law/policies of the government, taxation laws and political,

economic or other developments which may have an adverse bearing on individual

Securities, a specific sector or all sectors.

Investments in equity and equity related securities involve a degree of risk and investors

should not invest in the equity Schemes unless they can afford to take the risk of losing

their investment.

Securities which are not quoted on the stock exchanges are inherently illiquid in nature

and carry a larger liquidity risk in comparison with securities that are listed on the

exchanges or offer other exit options to the investors, including put options. The AMC

may choose to invest in unlisted securities that offer attractive yields within the

regulatory limit. This may however increase the risk of the portfolio. Additionally, the

liquidity and valuation of the Scheme investments due to its holdings of unlisted

securities may be affected if they have to be sold prior to the target date of

disinvestment.

Risks associated with investments in Fixed Income Securities

Interest-Rate Risk: Fixed income securities such as government bonds, corporate bonds,

and money market instruments and derivatives 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 depends upon the coupon

and maturity of the security. It also depends upon the yield level at which the security is

being traded.

Re-investment Risk: Investments in fixed income securities carry re-investment risk as interest

rates prevailing on the coupon payment or maturity dates may differ from the original

coupon of the bond.

Basis Risk: The underlying benchmark of a floating rate security or a swap might become

less active or may cease to exist and thus may not be able to capture the exact interest

rate movements, leading to loss of value of the portfolio.

Spread Risk: In a floating rate security the coupon is expressed in terms of a spread or mark

up over the benchmark rate. In the life of the security this spread may move adversely

leading to loss in value of the portfolio. The yield of the underlying benchmark might not


change, but the spread of the security over the underlying benchmark might increase

leading to loss in value of the security.

Liquidity Risk: The liquidity of a bond may change, depending on market conditions leading

to changes in the liquidity premium attached to the price of the bond. At the time of selling

the security, the security can become illiquid, leading to loss in value of the portfolio.

Credit Risk: This is the risk associated with the issuer of a debenture/bond or a money

market instrument defaulting on coupon payments or in paying back the principal amount

on maturity. Even when there is no default, the price of a security may change with

expected changes in the credit rating of the issuer. It is to be noted here that a

Government Security is a sovereign security and is the safest. Corporate bonds carry a

higher amount of credit risk than Government securities. Within corporate bonds also there

are different levels of safety and a bond rated higher by a particular rating agency is safer

than a bond rated lower by the same rating agency.

Liquidity Risk on account of unlisted securities: The liquidity and valuation of the Scheme

investments due to their holdings of unlisted securities may be affected if they have to be

sold prior to their target date of divestment. The unlisted security can go down in value

before the divestment date and selling of these securities before the divestment date can

lead to losses in the portfolio.

Settlement Risk: Fixed income securities run the risk of settlement which can adversely affect

the ability of the fund house to swiftly execute trading strategies which can lead to adverse

movements in NAV

Risk associated with Securitized Debt

The Scheme may invest in domestic securitized debt such as Asset Backed Securities (ABS)

or Mortgage Backed Securities (MBS). ABS are securitized debts where the underlying assets

are receivables arising from various loans including automobile loans, personal loans, loans

against consumer durables, etc. MBS are securitized debts where the underlying assets are

receivables arising from loans backed by mortgage of residential / commercial properties.

At present in Indian market, following types of loans are securitized:

1. Auto Loans (cars / commercial vehicles /two wheelers)

2. Residential Mortgages or Housing Loans

3. Consumer Durable Loans

4. Personal Loans

5. Corporate Loans

In terms of specific risks attached to securitization, each asset class would have different

underlying risks. Residential Mortgages generally have lower default rates than other asset

classes, but repossession becomes difficult. On the other hand, repossession and

subsequent recovery of commercial vehicles and other auto assets is fairly easier and

better compared to mortgages. Asset classes like personal loans, credit card receivables

are unsecured and in an economic downturn may witness higher default. A corporate

loan/receivable, depend upon the nature of the underlying security for the loan or the

nature of the receivable and the risks correspondingly fluctuate.

The rating agencies define margins, over collateralisation and guarantees to bring risk in

line with similar AAA rated securities. The factors typically analyzed for any pool are as

follows:

a. Assets securitized and Size of the loan: This indicates the kind of assets financed with the

loan and the average ticket size of the loan. A very low ticket size might mean more costs

in originating and servicing of the assets.

b. Diversification: Diversification across geographical boundaries and ticket sizes might

result in lower delinquency

c. Loan to Value Ratio: Indicates how much % value of the asset is financed by borrower’s

own equity. The lower this value the better it is. This suggests that where the borrowers own

contribution of the asset cost is high; the chances of default are lower.


d. Average seasoning of the pool: This indicates whether borrowers have already displayed

repayment discipline. The higher the number, the more superior it is.

The other main risks pertaining to Securitised debt are as follows:

Prepayment Risk: This arises when the borrower pays off the loan sooner than expected.

When interest rates decline, borrowers tend to pay off high interest loans with money

borrowed at a lower interest rate, which shortens the average maturity of ABS. However,

there is some prepayment risk even if interest rates rise, such as when an owner pays off a

mortgage when the house is sold or an auto loan is paid off when the car is sold.

Reinvestment Risk: Since prepayment risk increases when interest rates decline, this also

introduces reinvestment risk, which is the risk that the principal can only be reinvested at a

lower rate.

Risks associated with investments in Derivatives

The Scheme may invest in derivative products in accordance with and to the extent

permitted under the Regulations and by RBI. Derivative products are specialized

instruments that require investment techniques and risk analysis different from those

associated with stocks and bonds. The use of a derivative requires an understanding not

only of the underlying instrument but of the derivative itself. Trading in derivatives carries

a high degree of risk although they are traded at a relatively small amount of margin

which provides the possibility of great profit or loss in comparison with the principal

investment amount. Thus, derivatives are highly leveraged instruments. Even a small

price movement in the underlying security could have an impact on their value and

consequently, on the NAV of the Units of the Scheme.

The derivatives market in India is nascent and does not have the volumes that may be

seen in other developed markets, which may result in volatility to the values.

Investment in derivatives also requires the maintenance of adequate controls to

monitor the transactions entered into, the ability to assess the risk that a derivative adds

to the portfolio and the ability to forecast price or interest rate movements correctly.

Even a small price movement in the underlying security could have an impact on their

value and consequently, on the NAV of the Units of the Scheme.

The Scheme may face execution risk, whereby the rates seen on the screen may not be

the rate at which the ultimate execution of the derivative transaction takes place.

The Scheme may find it difficult or impossible to execute derivative transactions in

certain circumstances. For example, when there are insufficient bids or suspension of

trading due to price limit or circuit breakers, the Scheme may face a liquidity issue.

The option buyer's risk is limited to the premium paid, while the risk of an options writer is

unlimited. However, the gains of an options writer are limited to the premiums earned.

The exchange may impose restrictions on exercise of options and may also restrict the

exercise of options at certain times in specified circumstances and this could impact

the value of the portfolio.

The writer of a put option bears the risk of loss if the value of the underlying asset

declines below the exercise price. The writer of a call option bears a risk of loss if the

value of the underlying asset increases above the exercise price.

Investments in index futures face the same risk as the investments in a portfolio of shares

representing an index. The extent of loss is the same as in the underlying stocks.

The Scheme bears a risk that it may not be able to correctly forecast future market

trends or the value of assets, indices or other financial or economic factors in

establishing derivative positions for the Scheme.

The risk of loss in trading futures contracts can be substantial, because of the low margin

deposits required, the extremely high degree of leverage involved in futures pricing and

the potential high volatility of the futures markets.

There is the possibility that a loss may be sustained by the portfolio as a result of the

failure of another party (usually referred to as the "counter party") to comply with the

terms of the derivatives contract. The counter party may default on a transaction

before settlement and therefore, the Scheme is compelled to negotiate with another

counterparty at the then prevailing (possibly unfavorable) market price.

Derivatives also carry a market liquidity risk where the derivatives cannot be sold

(unwound) at prices that reflect the underlying assets, rates and indices.

Where derivatives are used for hedging, such use may involve a basis risk where the

instrument used as a hedge does not match the movement in the


instrument/underlying asset being hedged. The risk may be inter-related also e.g.

interest rate movements can affect equity prices, which could influence specific

issuer/industry assets.

Other risks in using derivatives include the risk of mispricing or improper valuation of

derivatives and the inability of derivatives to correlate perfectly with underlying assets,

rates and indices.

Derivative products are leveraged instruments and can provide disproportionate gains

as well as disproportionate losses to the investor.

Execution of investment strategies depends upon the ability of the fund manager(s) to

identify such opportunities which may not be available at all times. Identification and

execution of the strategies to be pursued by the fund manager(s) involve uncertainty

and decision of fund manager(s) may not always be profitable. No assurance can be

given that the fund manager(s) will be able to identify or execute such strategies.

The risks associated with the use of derivatives are different from or possibly greater

than, the risks associated with investing directly in securities and other traditional

investments.

The following are certain additional risks involved with use of fixed income derivatives:

Interest rate risk: Derivatives carry the risk of adverse changes in the price due to change in

interest rates.

Liquidity risk: During the life of the derivative, the benchmark might become illiquid and

might not be fully capturing the interest rate changes in the market, or the selling,

unwinding prices might not reflect the underlying assets, rates and indices, leading to loss of

value of the portfolio.

Risks associated with Covered Call Strategy

Writing call options are highly specialized activities and entail higher than ordinary

investment risks. In such investment strategy, the profits from call option writing is capped at

the option premium, however the downside depends upon the increase in value of the

underlying equity shares. This downside risk is reduced by writing covered call options.

The Scheme may write covered call option only in case it has adequate number of

underlying equity shares as per regulatory requirement. This would lead to setting aside a

portion of investment in underlying equity shares. If covered call options are sold to the

maximum extent allowed by regulatory authority, the scheme may not be able to sell the

underlying equity shares immediately if the view changes to sell and exit the stock. The

covered call options need to be unwound before the stock positions can be liquidated. This

may lead to a loss of opportunity, or can cause exit issues if the strike price at which the call

option contracts have been written become illiquid. Hence, the scheme may not be able

to sell the underlying equity shares, which can lead to temporary illiquidity of the underlying

equity shares and result in loss of opportunity.

The writing of covered call option would lead to loss of opportunity due to appreciation in

value of the underlying equity shares. Hence, when the appreciation in equity share price is

more than the option premium received the scheme would be at a loss.

The total gross exposure related to option premium paid and received must not exceed the

regulatory limits of the net assets of the scheme. This may restrict the ability of Scheme to

buy any options.

Risks associated with investing in foreign securities/overseas investments/offshore securities

Subject to necessary approvals and within the investment objectives of the Scheme,

the Scheme may invest in overseas markets which carry risks related to fluctuations in

the foreign exchange rates, the nature of the securities market of the country,

repatriation of capital due to exchange controls and political circumstances.

Since the Scheme would invest only partially in foreign securities, there may not be

readily available and widely accepted benchmarks to measure performance of such

Scheme. To manage risks associated with foreign currency and interest rate exposure,

the Fund may use derivatives for efficient portfolio management and hedging and

portfolio rebalancing and in accordance with conditions as may be stipulated under

the Regulations and by RBI from time to time.


Investment in Foreign Securities involves a currency risk. To the extent that the assets of

the Scheme will be invested in securities denominated in foreign currencies, the Indian

Rupee equivalent of the net assets, distributions and income may be adversely

affected by changes in the value of certain foreign currencies relative to the Indian

Rupee. The repatriation of capital to India may also be hampered by changes in

regulations concerning exchange controls or political circumstances as well as the

application to it of other restrictions on investment.

Risks associated with Repo transactions in Corporate Bonds

The Scheme may be exposed to counter party risk in case of repo lending transactions in

the event of the counterparty failing to honour the repurchase agreement. However in

repo transactions, the collateral may be sold and a loss is realized only if the sale price is less

than the repo amount. The risk is further mitigated through over-collateralization (the value

of the collateral being more than the repo amount).

Risks associated with Creation of Segregated portfolio

1. Investor holding units of segregated portfolio may not able to liquidate their holding till

the time recovery of money from the issuer.

2. Security comprises of segregated portfolio may not realise any value.

3. Listing of units of segregated portfolio on recognised stock exchange does not

necessarily guarantee their liquidity. There may not be active trading of units in the

stock market. Further trading price of units on the stock market may be significantly

lower than the prevailing NAV.

Risk Factor associated with debt instruments having credit enhancement:

The Scheme may invest in debt instruments having credit enhancement backed by equity

shares/guarantees or other any assets as collateral. The profile of these issuers tend to be

relatively weak and there may be a pledge of shares of a related party to enhance credit

quality or guarantees provided or any other asset provided as security acceptable to

lenders.

Where equity shares are provided as collateral there is the risk of sharp price volatility of

underlying securities which may lead to erosion in value of collateral which may affect the

ability of the fund to enforce collateral and recover capital and interest obligations. Also

there is a possibility of guarantor going insolvent which also can impact the recovery value

of exposure. In case of credit enhanced structures backed by equity share the liquidity of

the underlying shares may be low leading to a lower recovery and a higher impact cost of

liquidation. In case of other assets provided recovery value and enforce ability of asset can

also be a risk factor which can lower the recovery value.

Risks associated with Securities lending

The risks in lending portfolio securities, as with other extensions of credit, consist of the failure

of another party, to comply with the terms of agreement entered into between the lenders

of securities i.e. any scheme and the approved intermediary/counterparty. Such failure to

comply can result in the possible loss of rights in the collateral put up by the borrower of the

securities, the inability of the approved intermediary/counterparty to return the securities

deposited by the lender and the possible loss of any corporate benefits accruing to the

lender from the securities deposited with the approved intermediary. The Scheme may not

be able to sell such lent securities and this can lead to temporary illiquidity.

Risks associated with Short Selling

The Scheme may enter into short selling transactions, subject to SEBI and RBI Regulations.

Short positions carry the risk of losing money and these losses may grow unlimited

theoretically if the price of the stock increases without any limit. This may result in major loss

to the Scheme. At times, the participants may not be able to cover their short positions, if

the price increases substantially. If numbers of short sellers try to cover their position

simultaneously, it may lead to disorderly trading in the stock and thereby can briskly

escalate the price even further making it difficult or impossible to liquidate short position

quickly at reasonable prices. In addition, short selling also carries the risk of inability to

borrow the security by the participants thereby requiring the participants to purchase the

securities sold short to cover the position even at unreasonable prices.


Risks associated with Investment in Gold Exchange Traded Funds

Market Risk

The NAV of gold ETFs is closely related to the value of gold held by the scheme. The value

(price) of gold may fluctuate for several reasons and all such fluctuations will result in

changes in the NAV of gold ETFs. The factors that may effect the price of gold, among

other things, include demand and supply for gold in India and in the global market, Indian

and foreign exchange rates, interest rates, inflation trends, trading in gold as commodity,

legal restrictions on the movement/trade of gold that may be imposed by RBI, Government

of India or countries that supply or purchase gold to/from India, trends and restrictions on

import/export of gold jewellery in and out of India, etc.

Counter party Risk

India does not have an Exchange for trading physical gold. Therefore, the underlying gold

ETF may have to buy or sell gold from the open market, which may lead to counter party

risks for trading and settlement.

Liquidity Risk

The underlying gold ETF has to sell gold only to bullion bankers/traders who are authorized

to buy gold. Though there are adequate number of players (commercial or bullion bankers)

to whom the underlying gold ETF can sell gold, it may have to resort to distress sale of gold if

there is no or low demand for gold to meet its cash needs of redemption or expenses.

Risks associated with Physical gold

There is a risk that part or all of the underlying scheme’s gold could be lost, damaged or

stolen. Access to it could also be restricted by natural events or human actions. Any of

these actions may have adverse impact on the operations of the gold ETF and

consequently on the investment of the scheme.

Indirect taxation

For the valuation of gold by the underlying scheme, indirect taxes like customs duty, VAT

etc. would also be considered. Hence any change in the rates of indirect taxation would

affect the valuation of the gold ETF.

A significant portion of the aggregate world gold holdings is owned by governments,

central banks and related institutions. If one or more of these institutions decides to sell in

amounts large enough to cause a decline in world gold prices, the NAV of the gold ETF(s)

will be adversely affected.

Risks associated with transaction in Units through stock exchange(s)

In respect of transaction in Units of the Scheme through BSE and / or NSE, allotment and

redemption of Units on any Business Day will depend upon the order processing /

settlement by BSE and / or NSE and their respective clearing corporations on which the

Fund has no control.

Risk Factors Associated with Investments in REITs and InvITS:

Price-Risk or Interest-Rate Risk: REITs & InvITs run price-risk or interest-rate risk. Generally,

when interest rates rise, prices of existing 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. REITs & InvITs are likely to have volatile cash flows as the

repayment dates would not necessarily be pre scheduled.

Liquidity or Marketability Risk: This refers to the ease with which a security can be sold at

or near to its valuation yield-to-maturity (YTM). The primary measure of liquidity risk is the

spread between the bid price and the offer price quoted by a dealer. As these

products are new to the market they are likely to be exposed to liquidity risk.

Reinvestment Risk: Investments in REITs & InvITs may carry reinvestment 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.

Risk of lower than expected distributions: The distributions by the REIT or InvIT will be

based on the net cash flows available for distribution. The amount of cash available for


distribution principally depends upon the amount of cash that the REIT/ InvITs receives

as dividends or the interest and principal payments from portfolio assets.

The above are some of the common risks associated with investments in REITs & InvITs. There

can be no assurance that investment objectives will be achieved, or that there will be no

loss of capital. Investment results may vary substantially on a monthly, quarterly or annual

basis.

B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME

The Scheme shall have a minimum of 20 Investors and no single Investor shall account for

more than 25% of the corpus of the Scheme. The aforesaid conditions should be complied

with in each calendar quarter on an average basis. In case the Scheme does not have a

minimum of 20 Investors on an ongoing basis for each calendar quarter, the provisions of

Regulation 39(2)(c) of the SEBI (MF) Regulations would become applicable automatically

without any reference from SEBI and accordingly the Scheme shall be wound up and the

units would be redeemed at Applicable NAV. If there is a breach of the 25% limit by any

Investor over the quarter, a rebalancing period of one month would be allowed and

thereafter the Investor who is in breach of the rule shall be given 15 days’ notice to redeem

his exposure over the 25% limit. Failure on the part of the said investor to redeem his

exposure over the 25% limit within the aforesaid 15 days would lead to automatic

Redemption by the Mutual Fund at the Applicable NAV on the 15th day of the notice

period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in

this regard.

C. SPECIAL CONSIDERATIONS, if any

Prospective investors should study this Scheme Information Document and Statement

of Additional Information carefully in its entirety and should not construe the contents

hereof as advise relating to legal, taxation, financial, investment or any other matters

and are advised to consult their legal, tax, financial and other professional

advisors to determine possible legal, tax, financial or other considerations of subscribing

to or redeeming Units, before making a decision to invest/redeem/hold Units.

The Scheme related documents i.e. SID/ KIM/ SAI or the units of the Fund are not

registered in any jurisdiction including the United States of America nor in any

provincial/ territorial jurisdiction in Canada. The distribution of the Scheme related

document in certain jurisdictions may be restricted or subject to registration

requirements and, accordingly, persons who come into possession of the Scheme

related documents are required to inform themselves about, and to observe any such

restrictions. No persons receiving a copy of this Scheme related documents or any

accompanying application form in such jurisdiction may treat these Scheme related

documents or such application form as constituting an invitation to them to subscribe

for units, nor should they in any event use any such application form, unless in the

relevant jurisdiction such an invitation could lawfully be made to them and such

application form could lawfully be used without compliance with any registration or

other legal requirements. Accordingly the Scheme related documents do not constitute

an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is

not lawful or in which the person making such offer or solicitation is not qualified to do

so or to anyone to whom it is unlawful to make such offer or solicitation as per

applicable law. The AMC, Trustee or the Mutual Fund have not authorized any person

to issue any advertisement or to give any information or to make any representations,

either oral or written, other than that contained in this Scheme Information

Document or the Statement of Additional Information or as is provided by the AMC

in connection with this offering. Prospective investors are advised not to rely upon

any information or representation not incorporated in the Scheme Information

Document or Statement of Additional Information or provided by the AMC as having

been authorized by the Mutual Fund, the AMC or the Trustee.

Redemption due to change in the fundamental attributes of the Scheme or due

to any other reasons may entail tax consequences. The Trustee, AMC, Mutual Fund,

their directors or their employees shall not be liable for any such tax consequences that

may arise due to such redemptions.

The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable

for any of the tax consequences that may arise, in the event that the Scheme is


wound up for the reasons and in the manner provided in Statement of Additional

Information.

The tax benefits described in this Scheme Information Document and Statement of

Additional Information are as available under the present taxation laws and are

available subject to relevant conditions. The information given is included only for

general purpose and is based on advise received by the AMC regarding the law and

practice currently in force in India as on the date of this Scheme Information

Document and the Unit holders should be aware that the relevant fiscal rules or their

interpretation may change. As is the case with any investment, there can be no

guarantee that the tax position or the proposed tax position prevailing at the time of an

investment in the Scheme will endure indefinitely. In view of the individual nature of

tax consequences, each Unit holder is advised to consult his / her own professional tax

advisor.

The Mutual Fund may disclose details of the investor’s account and transactions

thereunder to those intermediaries whose stamp appears on the application form or

who have been designated as such by the investor. In addition, the Mutual Fund may

disclose such details to the bankers, as may be necessary for the purpose of

effecting payments to the investor. The Fund may also disclose such details to

regulatory and statutory authorities/bodies as may be required or necessary.

In case the AMC or its Sponsor or its Shareholders or their affiliates/associates or group

companies make substantial investment, either directly or indirectly in the Scheme

redemption of Units by these entities may have an adverse impact on the performance

of the Scheme. This may also affect the ability of the other Unit holders to redeem their

Units.

As the liquidity of the Scheme investments may sometimes be restricted by trading

volumes and settlement periods, the time taken by the Fund for Redemption of Units

may be significant in the event of an inordinately large number of Redemption Requests

or of a restructuring of the Scheme portfolio. In view of this, the Trustee has the right,

in its sole discretion, to limit redemptions under certain circumstances - please refer

to the paragraph “Suspension/Restriction on Redemption of Units of the Scheme”.

Pursuant tothe provisions of Prevention of Money Laundering Act, 2002, if after due

diligence, the AMC believes that any transaction is suspicious in nature as regards

money laundering, on failure to provide required documentation, information, etc. by

the Unit holder the AMC shall have absolute discretion to report such suspicious

transactions to FIU-IND and / or to freeze the folios of the investor(s), reject any

application(s) / allotment of Units.

D. DEFINITIONS

"AMC" / "Asset

Management

Company" /

"Investment

Manager"

Axis Asset Management Company Ltd., incorporated under the

provisions of the Companies Act, 1956 and approved by

Securities and Exchange Board of India to act as the Asset

Management Company for the scheme(s) of Axis Mutual Fund.

"Applicable NAV" The NAV applicable for purchase or redemption or switching of

Units based on the time of the Business Day on which the

application is time stamped.

“Book Closure” The time during which the Asset Management Company would

temporarily suspend Sale, redemption and Switching of Units.

“Business Day” A day other than:

(i) Saturday and Sunday;

(ii) A day on which the banks in Mumbai and/or RBI are closed

for business /clearing;

(iii) A day on which the National Stock Exchange of India Ltd.

and / or BSE Ltd., Mumbai are closed;

(iv) A day which is a public and /or bank Holiday at an Investor

Service Centre/Official Point of Acceptance where the

application is received;

(v) A day on which Sale / Redemption / Switching of Units is

suspended by the AMC;

(vi) A day on which normal business cannot be transacted due to

storms, floods, bandhs, strikes or such other events as the AMC


may specify from time to time.

The AMC reserves the right to declare any day as a Business Day

or otherwise at any or all Investor Service Centres/Official Points of

Acceptance.

"Business Hours" Presently 9.30 a.m. to 5.30 p.m. on any Business Day or such other

time as may be applicable from time to time.

"Custodian" A person who has been granted a certificate of registration to

carry on the business of custodian of securities under the

Securities and Exchange Board of India (Custodian of Securities)

Regulations 1996, which for the time being is Deutsche Bank AG.

"Depository" Depository as defined in the Depositories Act, 1996 (22 of 1996).

"Derivative" Derivative includes (i) a security derived from a debt instrument,

share, loan whether secured or unsecured, risk instrument or

contract for differences or any other form of security; (ii) a

contract which derives its value from the prices, or index of prices,

or underlying securities.

"Dividend" Income distributed by the Mutual Fund on the Units.

“Dividend Sweep

option” / “DSO”

Facility given to the Unit holders to automatically invest the

dividend by eligible source scheme into eligible target scheme of

the Mutual Fund.

"Equity Related

Instruments"

Includes convertible bonds and debentures, convertible

preference shares, warrants carrying the right to obtain equity

shares, equity derivatives and any other like instrument.

“Foreign Portfolio

Investor” / “FPI”

A person who satisfies the eligibility criteria prescribed under

regulation 4 of SEBI (Foreign Portfolio Investors) Regulations, 2014

and has been registered under Chapter II of these regulations,

which shall be deemed to be an intermediary in terms of the

provisions of the Act.

"Floating Rate Debt

Instruments"

Floating rate debt instruments are debt securities issued by

Central and / or State Government, corporates or PSUs with

interest rates that are reset periodically. The periodicity of the

interest reset could be daily, monthly, quarterly, half-yearly,

annually or any other periodicity that may be mutually agreed

with the issuer and the Fund. The interest on the instruments could

also be in the nature of fixed basis points over the benchmark gilt

yields.

“Foreign Securities” ADRs / GDRs/ equity / debt securities of overseas companies

listed on the recognized stock exchanges overseas or other

securities as may be specified and permitted by SEBI and/or RBI

from time to time.

"Gilts" / "Government

Securities"

Securities created and issued by the Central Government and/or

a State Government (including Treasury Bills) or Government

Securities as defined in the Public Debt Act, 1944, as amended or

re-enacted from time to time.

“GOI” Government of India

“Holiday” Holiday means the day(s) on which the banks (including the

Reserve Bank of India) are closed for business or clearing in

Mumbai or their functioning is affected due to a strike / bandh

call made at any part of the country or due to any other reason.

Infrastructure

Investment Trust” /

“InvIT

InvIT shall have the meaning assigned in clause (za) of sub-

regulation (1) of regulation 2 of the Securities and Exchange

Board of India (Infrastructure Investment Trusts) Regulations, 2014.

"Investment

Management

Agreement"

The agreement dated June 27, 2009 entered into between Axis

Mutual Fund Trustee Ltd. and Axis Asset Management Company

Ltd., as amended from time to time.

"Investor Service

Centres" / "ISCs"

Offices of Axis Asset Management Company Ltd. or such other

centres / offices as may be designated by the AMC from time to

time.

"Load" In the case of Redemption / Switch out of a Unit, the sum of


money deducted from the Applicable NAV on the Redemption /

Switch out (Exit Load) and in the case of Sale / Switch in of a Unit,

a sum of money to be paid by the prospective investor on the

Sale / Switch in of a Unit(Entry Load) in addition to the Applicable

NAV.

Presently, entry load cannot be charged by mutual fund

schemes.

Micro SIP Systematic Investment Plans (SIPs) where aggregate of

installments in a financial year i.e. April to March does not exceed

Rs. 50,000/- (per financial year per investor).

"Money Market

Instruments"

Includes commercial papers, commercial bills, treasury bills,

Government securities having an unexpired maturity upto one

year, call or notice money, certificate of deposit, usance bills and

any other like instruments as specified by the Reserve Bank of

India from time to time.

"Mutual Fund" / "the

Fund"

Axis Mutual Fund, a trust set up under the provisions of the Indian

Trusts Act, 1882.

"Net Asset Value" /

"NAV"

Net Asset Value per Unit of the Scheme, calculated in the

manner described in this Scheme Information Document or as

may be prescribed by the SEBI (MF) Regulations from time to time.

"NRI" A Non-Resident Indian or a Person of Indian Origin residing

outside India.

"Official Points of

Acceptance"

Places, as specified by AMC from time to time where application

for Subscription / Redemption / Switch will be accepted on

ongoing basis.

“Overseas Citizen of

India” / “OCI”

A person registered as an Overseas Citizen of India Cardholder

by the Central Government under section 7A of The Citizenship

Act, 1955.

"Person of Indian

Origin"

A citizen of any country other than Bangladesh or Pakistan, if (a)

he at any time held an Indian passport; or (b) he or either of his

parents or any of his grandparents was a citizen of India by virtue

of Constitution of India or the Citizenship Act, 1955 (57 of 1955); or

(c) the person is a spouse of an Indian citizen or person referred

to in sub-clause (a) or (b).

"Rating" Rating means an opinion regarding securities, expressed in the

form of standard symbols or in any other standardized manner,

assigned by a credit rating agency and used by the issuer of such

securities, to comply with any requirement of the

SEBI (Credit Rating Agencies) Regulations, 1999.

"RBI" Reserve Bank of India, established under the Reserve Bank of

India Act, 1934, (2 of 1934)

Real Estate

Investment Trust” /

“REIT”

REIT shall have the meaning assigned in clause (zm) of sub-

regulation 1 of regulation 2 of the Securities and Exchange Board

of India (Real Estate Investment Trusts) Regulations, 2014.

"Registrar and

Transfer Agent" /

“Registrar”

Karvy Fintech Pvt. Ltd., Hyderabad, currently acting as registrar to

the Scheme, or any other Registrar appointed by the AMC from

time to time.

"Redemption /

Repurchase"


“Regulatory

Agency”

GOI, SEBI, RBI or any other authority or agency entitled to issue or

give any directions, instructions or guidelines to the Mutual Fund

“Repo” Sale/Purchase of Securities with simultaneous agreement to

repurchase / resell them at a later date.

"Statement of

Additional

Information" / "SAI"

The document issued by Axis Mutual Fund containing details of

Axis Mutual Fund, its constitution, and certain tax, legal and

general information. SAI is legally a part of the Scheme

Information Document.

"Sale / Subscription" Sale or allotment of Units to the Unit holder upon subscription by

the Investor / applicant under the Scheme.

"Scheme" Axis Triple Advantage Fund


“Scheme

Information

Document”

This document issued by Axis Mutual Fund, offering for

Subscription of Units of Axis Triple Advantage Fund (including

Plans and Options there under)

"SEBI" Securities and Exchange Board of India, established under the

Securities and Exchange Board of India Act, 1992.

"SEBI (MF)

Regulations" /

"Regulations"

Securities and Exchange Board of India (Mutual Funds)

Regulations, 1996, as amended from time to time.

"Short Selling" Short selling means selling a stock which the seller does not own

at the time of trade.

"Sponsor" Axis Bank Ltd.

"Switch" Redemption of a Unit in any Scheme (including the Plans /

options therein) of the Mutual Fund against purchase of a Unit in

another Scheme (including the Plans /options therein) of the

Mutual Fund, subject to completion of Lock-in Period, if any.

"Stock Lending" Lending of securities to another person or entity for a fixed period

of time, at a negotiated compensation in order to enhance

returns of the portfolio.

“Systematic

Investment Plan”/

“SIP”

A plan enabling investors to save and invest in the Scheme on a

periodic basis submitting post dated cheques / payment

instructions.

“Systematic Transfer

Plan” / “STP”

Facility given to the Unit holders to transfer sums on periodic basis

from one scheme to another schemes launched by the Mutual

Fund from time to time by giving a single instruction.

“Systematic

Withdrawal Plan” /

“SWP”

Facility given to the Unit holders to withdraw a specified sum of

money monthly/quarterly/ half yearly/ annually from his

investment in the Scheme.

“Tri Party Repos” Tri-party repo means a repo contract where a third entity (apart

from the borrower and lender), called a Tri-Party Agent, acts as

an intermediary between the two parties to the repo to facilitate

services like collateral selection, payment and settlement,

custody and management during the life of the transaction.

"Trust Deed" The Trust Deed dated June 27, 2009 made by and between Axis

Bank Ltd. and Axis Mutual Fund Trustee Ltd. thereby establishing

an irrevocable trust, called Axis Mutual Fund.

“Trustee” / “Trustee

Company”

Axis Mutual Fund Trustee Ltd., incorporated under the provisions

of the Companies Act, 1956 and approved by SEBI to act as

the trustee to the Scheme of the Mutual Fund.

"Unit" The interest of the Unit holder which consists of each Unit

representing one undivided share in the assets of the Scheme.

"Unit holder" /

"Investor"


INTERPRETATION

For all purposes of this Scheme Information Document, except as otherwise expressly

provided or unless the context otherwise requires:

all references to the masculine shall include the feminine and all references, to the

singular shall include the plural and vice-versa.

all references to "dollars" or "$" refer to United States Dollars and "Rs" refer to Indian

Rupees. A "crore" means "ten million" and a "lakh" means a "hundred thousand".

all references to timings relate to Indian Standard Time (IST).

References to a day are to a calendar day including a non Business Day.


E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY

It is confirmed that:

(i) The Scheme Information Document forwarded to SEBI is in accordance with the SEBI

(Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from

time to time.

(ii) All legal requirements connected with the launching of the Scheme as also the

guidelines, instructions, etc., issued by the Government and any other competent

authority in this behalf, have been duly complied with.

(iii) The disclosures made in the Scheme Information Document are true, fair and adequate

to enable the investors to make a well informed decision regarding investment in the

Scheme.

(iv) The intermediaries named in the Scheme Information Document and Statement of

Additional Information are registered with SEBI and their registration is valid, as on date.

Place: Mumbai Signed : Sd/-

Date: November 29, 2019 Name : Darshan Kapadia

Designation: Compliance Officer


II. INFORMATION ABOUT THE SCHEME

A. TYPE OF THE SCHEME

An open ended scheme investing in equity, debt and gold

B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME?


portfolio of equity and equity related instruments, fixed income instruments & gold

exchange traded funds.

C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS?

Under normal circumstances, the asset allocation pattern will be:

Instruments

Indicative allocations

(% of total assets)

Risk Profile

Minimum Maximum High/Medium/Low

Equity and Equity Related Instruments# 65 80 High

Debt* and Money Market Instruments# 10 30 Low to Medium

Gold Exchange Traded Funds 10 30 Medium


#Including derivatives instruments to the extent of 80% of the Net Assets of the scheme. The

Scheme may also use fixed income derivative instruments subject to the guidelines as may

be issued by SEBI and RBI and for such purposes as may be permitted from time to time. The

Scheme may also use equity derivatives as permitted vide SEBI circular no. DNPD/Cir

29/2005 dated September 14, 2005, SEBI circular no. DNPD/Cir-30/2006 dated January 20,

2006, SEBI circular no. SEBI/DNPD/Cir-31/2006 dated September 22, 2006, SEBI circular no.

Cir/IMD/DF/11/2010 dated August 18, 2010, SEBI circular no. SEBI/HO/IMD/DF2/CIR/

P/2017/109 dated September 27, 2017 and SEBI circular no.

SEBI/HO/IMD/DF2/CIR/P/2019/17 dated January 16, 2019. The Scheme may use derivatives

for such purposes as may be permitted by the Regulations, including for the purpose of

hedging and portfolio balancing and such other purposes as may be permitted, based on

the opportunities available and subject to guidelines issued by SEBI from time to time.

Derivative instruments include Interest Rate Swaps, Interest Rate Forwards, Interest Rate

Futures, Forward Rate Agreements, stock options, Index options, Stock & Index futures/stock

futures and any such other derivative instruments permitted by SEBI/RBI from time to time.

*Investment in Securitized debt (excluding foreign securitized debt), if undertaken, would

not exceed 30% of the net assets of the Scheme.

The cumulative gross exposure through equity, debt, units of gold exchange traded funds,

units issued by REITs & InvITs and derivative positions should not exceed 100% of the net

assets of the Scheme in accordance with SEBI circular no. Cir/IMD/DF/11/2010 dated

August 18, 2010.

Investment in Foreign Securities

The Scheme may seek investment opportunities in foreign securities including ADRs / GDRs

/ Foreign equity and debt securities subject to SEBI (MF) Regulations. Such Investment shall


Repo in Corporate debt securities

The Scheme may undertake repo transactions in corporate debt securities in accordance

with the directions issued by RBI and SEBI from time to time. Such investment shall be made

subject to the guidelines which may be prescribed by the Board of Directors of the Asset

Management Company and Trustee Company.

Stock Lending by the Fund

The Scheme shall adhere to the following limits should it engage in Stock Lending.

1. Not more than 25% of the net assets of the Scheme can generally be deployed in Stock

Lending.


2. Not more than 5% of the net assets of the Scheme can generally be deployed in Stock

Lending to any single counter party (as may be applicable).

Short Selling by the Fund

The Fund may engage in short selling of securities in accordance with the framework

relating to short selling and securities lending and borrowing specified by SEBI.

Investment in Short Term Deposits and mutual fund units

Pending deployment of the funds in securities in terms of investment objective of the

Scheme, the AMC may park the funds of the Scheme in short term deposits of the

Scheduled Commercial Banks, subject to the guidelines issued by SEBI vide its circular

dated April 16, 2007, as may be amended from time to time. Pending deployment, such

funds may also be invested in units of debt and liquid mutual fund schemes.

The Scheme retains the flexibility to invest across all the securities in the equity, debt and

Money Markets Instruments and mutual fund units. The portfolio may hold cash depending

on the market condition.

Subject to the Regulations, the asset allocation pattern indicated above may change from

time to time, keeping in view market conditions, market opportunities, applicable

regulations and political and economic factors. It must be clearly understood that the

percentages stated above are only indicative and not absolute. These proportions can

vary substantially depending upon the perception of the fund manager; the intention

being at all times to seek to protect the interests of the Unit holders. Such changes in the

investment pattern will be for short term and for defensive considerations only. In the event

of deviations, the fund manager will endeavour to carry out rebalancing within one month.

Where the portfolio is not rebalanced within one month, justification for the same shall be

placed before the Investment Review Committee and reasons for the same shall be

recorded in writing. The Investment Review committee shall then decide on the course of

action. However, at all times the portfolio will adhere to the overall investment objectives

of the Scheme.

Axis Triple Advantage Fund, an open ended scheme investing in equity, debt and gold

fund is a different scheme offered by Axis Mutual Fund and is not a minor modification of

any other existing scheme/product of Axis Mutual Fund. Further, the existing products of Axis

Mutual Fund are either debt, liquid or equity funds and hence the 'hybrid fund' under

consideration cannot be compared with any other existing schemes.


Data as on October 31, 2019 (in INR crores)

Name of the

existing

scheme

Asset Allocation Pattern

(Under normal circumstances)

Primary Investment Objective & Investment

Strategy

Differentiatio

n AUM

No. of

Folios

Axis

Dynamic

Equity Fund

Instruments Normal

Allocation

(% of net

assets)

Risk

Profil

e

Primary Investment Objective

To generate capital appreciation by investing

in a portfolio of equity or equity linked securities

while secondary objective is to generate

income through investments in debt and

money market instruments. It also aims to

manage risk through active asset allocation.

However, there is no assurance or guarantee

that the investment objective of the Scheme

will be achieved. The Scheme does not assure

or guarantee any returns.

Investment Strategy:

The scheme has a dual objective of generating

capital appreciation by investing in equity and

equity related securities as well as generating

income by investing in debt and money market

securities, while attempting to manage risk from

the market through active asset allocation. In

order to achieve this process, the scheme will

follow a top-down and bottom-up strategy. The

top-down process will lead to the active

ongoing asset allocation decision between

equity and debt and the bottom up process

would lead to construction of the portfolio using

specific securities.

The AMC has built a proprietary in-house

quantitative model to determine the top-down

dynamic asset allocation for the fund. The AMC

has built a proprietary in-house quantitative

An open

ended

dynamic

asset

allocation

fund

2,146.74 87,209

Min Max

Equity and Equity

related securities

65 100 High

Equity Derivatives 0 45 High

Debt & Money

Market

Instruments

including cash &

cash equivalent

0 35 Low

to

Medi

um

Units issued by

REITs & InvITs

0 10 Medi

um

to

High


approach to guide the asset allocation

decision. The quantitative approach looks at

equity markets across three parameters –

momentum, volatility and valuations – to

decide the appropriate allocation to the same.

The allocation to debt is the residual number

that is arrived at after deciding the equity

allocation. The asset allocation decision is

reviewed on an ongoing basis and is

dynamically linked to movements in market

variables.

Axis

Arbitrage

Fund

Instruments Normal

Allocation

(% of net

assets)

Risk

Profil

e

Primary Investment Objective:

To generate income through low volatility

absolute return strategies that take advantage

of opportunities in the cash and the derivative

segments of the equity markets including the

arbitrage opportunities available within the

derivative segment, by using other derivative

based strategies and by investing the balance

in debt and money market instruments.

However, there is no assurance or guarantee

that the investment objective of the Scheme

will be achieved. The Scheme does not assure

or guarantee any returns.


The Scheme will seek to achieve its investment

objective primarily by employing various

strategies which seek to exploit absolute returns

opportunities in equity and derivative markets.

In case such opportunities are not available,

the scheme will invest the corpus in debt and

money market instruments.

The equity and derivative markets have

An open

ended

scheme

investing in

arbitrage

opportunities

2,541.64 59,613

Min Max

Equities, equity

related

instruments

(unhedged)

0 10 High

Equities, equity

related

instruments and

derivatives

including index

futures, stock

futures, index

options, & stock

options, etc. as

part of hedged /

arbitrage

exposure

65 90 Medi

um

to

High

Debt and Money

market

instruments

10 35 Low

to

medi


(including

investments in

securitized debt)

um experienced enormous growth in India in the

last few years. The market provides the investor

the ability to derive returns from the various

strategies enumerated below. The market is not

always efficient to the extent of mispricing in

the derivative market and the underlying cash

market. These techniques differ in that each

method attempts to exploit a different form of

imperfection in the underlying equity, debt and

derivatives market and thus expose the investor

to different forms of risk.

The strategies the Fund may adopt could be as

under. The list is not exhaustive and the Fund

could use similar strategies and any other

strategies as available in the markets.

Axis Equity

Saver Fund

Instruments Normal

Allocation

(% of net

assets)

Risk

Profil

e


The investment objective of the scheme is to

provide capital appreciation and income

distribution to the investors by using equity and

equity related instruments, arbitrage

opportunities, and investments in debt and

money market instruments. However, there is no

assurance or guarantee that the investment

objective of the Scheme will be achieved. The

Scheme does not assure or guarantee any

returns.


The Scheme has a dual objective of providing

capital appreciation and income distribution to

the investors by using equity and equity related

instruments, arbitrage opportunities, and

investments in debt and money market

instruments.

An Open

Ended

Scheme

investing in

equity,

arbitrage

and debt

801.59 26,617

Min Max

Equity and Equity

related securities

Of which

65 80 High

i) Equities &

equity related

instruments

(unhedged)

20 45 High

ii) Equities,

equity related

instruments and

derivatives

including index

futures, stock

futures, index

20 60 Medi

um

to

High


options, & stock

options, etc. as

part of hedged /

arbitrage

exposure

The scheme seeks to benefit from the concept

of asset allocation. The aim of asset allocation is

to provide superior risk adjusted returns through

diversification across various asset classes like

equity, fixed income & arbitrage which have

historically had low correlation with each other.

Debt & Money

Market

Instruments

20 35 Low

to

Medi

um

Units issued by

REITs & InvITs

0 10 Medi

um

to

High

Axis Triple

Advantage

Fund

Instruments Normal

Allocation

(% of net

assets)

Risk

Profil

e


The Scheme seeks to generate long term

capital appreciation by investing in a diversified

portfolio of equity and equity related

instruments, fixed income instruments & gold

Exchange Traded Funds.


The Scheme seeks to generate long term

capital appreciation by investing in a diversified

portfolio of equity, fixed income & gold

exchange traded funds.

The scheme seeks to benefit from the concept

of asset allocation. The aim of asset allocation is

to provide superior risk adjusted returns through

diversification across various asset classes like

equity, fixed income & gold which have

An Open-

ended

hybrid fund

239.88 33,531

Min Max

Equity and Equity

Related

Instruments

65 80 High

Debt and Money

Market

Instruments

10 30 Low

to

Medi

um

Gold Exchange

Traded Funds

10 30 Medi

um

Units issued by

REITs & InvITs

0 10 Medi

um

to

High


historically had low correlation with each other.

Equity and Equity Related Instruments:

The equity allocation will be managed actively.

The focus would be to build a diversified

portfolio of strong growth companies, reflecting

our most attractive investment ideas, at all

points of time.

The portfolio will be built utilising a bottom-up

stock selection process, focusing on

appreciation potential of individual stocks from

a fundamental perspective. The AMC employs

a "Fair value" based research process to

analyse the appreciation potential of each

stock in its universe (Fair value is a measure of

the intrinsic worth of a company). The universe

of stocks is carefully selected to include

companies having a robust business models

and enjoying sustainable competitive

advantages as compared to their competitors.

The Fund will have the flexibility to invest across

the market capitalization spectrum.

The Fund by utilizing a holistic risk management

strategy will endeavor to manage risks

associated with investing in equity markets. The

Fund has identified the following risks and

designed risk management strategies, which

are embedded in the investment process to

manage these risks

i) Quality Risk - Risk of investing in unsustainable

/ weak companies.

ii) Price Risk - Risk of overpaying for a company

iii) Liquidity Risk - High Impact cost of entry and


exit

iv) Volatility Risk - Volatility in price due to

company or portfolio specific factors

v) Event Risk - Price risk due to a company /

sector specific or market event.

Fixed Income:

The Scheme proposes to invest in a diversified

portfolio of high quality debt and money

market instruments to generate regular income.

The fund manager will allocate the assets of the

scheme taking into consideration the prevailing

interest rate scenario & the liquidity of the

different instruments.

The portfolio duration and credit exposures will

be decided based on a thorough research of

the general macroeconomic condition,

political and fiscal environment, systemic

liquidity, inflationary expectations, corporate

performance and other economic

considerations. The fund manager will keep in

mind the yield structure of different asset

classes (e.g. the sovereign yield curve and the

corporate bond yield curve) as well as the kinks

within a particular yield curve (e.g. the different

points of the sovereign yield curve) while

making investment decisions.

Gold Exchange Traded Funds:

The Scheme will also invest in gold ETFs as gold,

historically, has shown a low correlation with

other asset classes like equity and debt making

it a good asset for diversifying the overall

portfolio.


Axis Regular

Saver Fund

Instruments Normal

Allocation

(% of net

assets)

Risk

Profil

e


The Scheme seeks to generate regular income

through investments in debt & money market

instruments, along with capital appreciation

through limited exposure to equity and equity

related instruments.


The Scheme seeks to generate regular income

through investments in debt & money market

instruments, along with capital appreciation

through equity and equity related instruments.

Within equities and fixed income, the portfolio

would be actively managed to optimize returns

within the respective asset class.

Fixed Income Strategy:

The Scheme proposes to invest in a diversified

portfolio of high quality debt and money

market instruments to generate regular income.

The fund manager will allocate the assets of the

scheme taking into consideration the prevailing

interest rate scenario & the liquidity of the

different instruments.




political and fiscal environment, systemic





classes (e.g. the sovereign yield curve and the

corporate bond yield curve) as well as the kinks

within a particular yield curve (e.g. the different

An open

ended

hybrid

scheme

investing

predominantl

y in debt

instruments

214.80 12,695

Min Max

Debt* and

Money Market

Instruments#

75 90 Low

to

Medi

um

Equity and Equity

related

instruments#

10 25 High

Units issued by

REITs & InvITs

0 10 Medi

um

to

High


points of the sovereign yield curve) while

making investment decisions.

Equity related Strategy:





points of time.

The portfolios will be built utilising a bottom-up

stock selection process, focusing on

appreciation potential of individual stocks from

a fundamental perspective. The AMC employs

a "Fair value" based research process to

analyse the appreciation potential of each







The Scheme will have the flexibility to invest

across the market capitalisation spectrum.

Axis Equity

Hybrid Fund

Instruments Normal

Allocation

(% of net

assets)

Risk

Profil

e


To generate long term capital appreciation

along with current income by investing in a mix

of Equity and Equity related instruments, debt

instruments and money market instruments.


The scheme aims to generate long term capital

appreciation along with current income by

investing in a mix of Equity and Equity related

securities, debt securities and money market

An open

ended

hybrid

scheme

investing

predominantl

y in equity

and equity

related

instruments

1,824.91 67,638

Min Max

Equity and Equity

related

instruments#

65 80 High

Debt* and

Money Market

Instruments#

20 35 Low

to

Medi


um instruments.

Fixed Income Strategy:

The scheme proposes to invest in a diversified

portfolio of debt & money market instruments to

generate income.




political and fiscal environment, systematic





classes as well as the kinks within a particular

yield curve while making investment decisions.

Equity and Equity Related Strategy:





points of time. The portfolio will be built utilizing

a bottom-up stock selection process, focusing

on appreciation potential of individual stocks

from a fundamental perspective. The AMC

employs a ""Fair value"" based research process

to analyze the appreciation potential of each







The scheme by utilizing a holistic risk

Units issued by

REITs & InvITs

0 10 Medi

um

to

High


management strategy will endeavor to

manage risks associated with investing in equity

markets. The scheme has identified the

following risks and designed risk management

strategies, which are embedded in the

investment process to manage these risks:

i. Quality Risk - Risk of investing in unsustainable

/ weak companies.

ii. Price Risk - Risk of overpaying for a company

iii. Liquidity Risk - High Impact cost of entry and

exit

iv. Concentration risk - Invest across the market

capitalization spectrum and industries/ sectors

v. Volatility Risk - Volatility in price due to

company or portfolio specific factors

vi. Event Risk - Price risk due to a company /

sector specific or market event


D. WHERE WILL THE SCHEME INVEST?

The corpus of the Scheme will be invested in Equity & Equity Related Instruments, Debt

Instruments, Money Market Instruments, units of Gold Exchange Traded Funds and other

permitted securities which will include but not limited to:


1. Equity share is a security that represents ownership interest in a company.

2. Equity Related Instruments are securities which give the holder of the security right to

receive Equity Shares on pre agreed terms. It includes convertible bonds, convertible

debentures, equity warrants, convertible preference shares, etc.

3. Foreign Equity and Equity Related Instrument as may be permitted by SEBI/RBI from time

to time.

4. Equity Derivatives are financial instruments, generally traded on an exchange, the price

of which is directly dependent upon (i.e., “derived from”) the value of equity shares or

equity indices. Derivatives involve the trading of rights or obligations based on the

underlying, but do not directly transfer property.

Futures:

Futures are exchange-traded contracts to sell or buy financial instruments for future delivery

at an agreed price. There is an agreement to buy or sell a specified quantity of financial

instrument on a designated future date at a price agreed upon by the buyer and seller at

the time of entering into a contract. To make trading possible, the exchange specifies

certain standardized features of the contract. A futures contract involves an obligation on

both the parties to fulfill the terms of the contract.

SEBI has permitted futures contracts on indices and individual stocks with maturity of 1

month, 2 months and 3 months on a rolling basis. The futures contracts are settled on last

Thursday (or immediately preceding trading day if Thursday is a trading holiday) of each

month. Currently, the futures are settled in cash. The final settlement price is the closing

price of the underlying stock(s)/index.

Options:

Option is a contract which provides the buyer of the option (also called holder) the right,

without the obligation, to buy or sell a specified asset at the agreed price on or upto a

particular date. For acquiring this privilege, the buyer pays premium (fee) to the seller. The

seller on the other hand has the obligation to buy or sell specified asset at the agreed price

and for this obligation he receives premium. The premium is determined considering

number of factors such as the market price of the underlying asset/security, number of days

to expiry, risk free rate of return, strike price of the option and the volatility of the underlying

asset.

Option contracts are of two types viz:

Call Option - The option that gives the buyer the right but not the obligation to buy

specified quantity of the underlying asset at the strike price is a call option. The buyer of the

call option (known as the holder of call option) can call upon the seller of the option (writer

of the option) and buy from him the underlying asset at the agreed price at any time on or

before the expiry of the option.

The seller (writer of the option) on the other hand has the obligation to sell the underlying

asset if the buyer of the call option decides to exercise his option to buy.

Put Option – The option that gives the buyer the right but not the obligation to sell is called

put option. A Put option gives the holder (buyer) the right to sell specified quantity of the

underlying asset at the strike price. The seller of the put option (one who is short Put)

however, has the obligation to buy the underlying asset at the strike price if the buyer

decides to exercise his option to sell.

There are two kind of options based on the date of exercise of right. The first is the European

Option which can be exercised only on the maturity date. The second is the American

Option which can be exercised on or before the maturity date.


Debt Instruments & Money Market Instruments:

Certificate of Deposit Certificate of Deposit (CD) is a negotiable money market instrument

issued by scheduled commercial banks and select all-India Financial Institutions that have

been permitted by the RBI to raise short term resources. The maturity period of CDs issued

by the Banks is between 7 days to one year, whereas, in case of FIs, maturity is one year to 3

years from the date of issue.

Commercial Paper

Commercial Paper (CP) is an unsecured negotiable money market instrument issued in the

form of a promissory note, generally issued by the corporates, primary dealers and all India

Financial Institutions as an alternative source of short term borrowings. CP is traded in

secondary market and can be freely bought and sold before maturity.

Treasury Bill

Treasury Bills (T-Bills) are issued by the Government of India to meet their short term

borrowing requirements. T-Bills are issued for maturities of 14 days, 91 days, 182 days and 364

days. The Scheme may also invest in Cash Management Bill (CMB) issued by the

Government of India to meet their short term borrowing requirements. CMB are generally

issued for maturities of less than 91 days.

Commercial Usance Bills

Bill (bills of exchange/promissory notes of public sector and private sector corporate

entities) Rediscounting, usance bills and commercial bills.

Repos

Repo (Repurchase Agreement) or Reverse Repo is a transaction in which two parties agree

to sell and purchase the same security with an agreement to purchase or sell the same

security at a mutually decided future date and price. The transaction results in

collateralized borrowing or lending of funds. Presently in India, corporate debt securities,

Government Securities, State Government Securities and T-Bills are eligible for Repo/

Reverse Repo.

Tri-party repo means a repo contract where a third entity (apart from the borrower and

lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the

repo to facilitate services like collateral selection, payment and settlement, custody and

management during the life of the transaction.

The Scheme may undertake repo or reverse repo transactions in accordance with the

directions issued by RBI and SEBI from time to time. Such investment shall be made subject

to the guidelines which may be prescribed by the Board of Directors of the Asset


Securities created and issued by the Central and State Governments as may be permitted

by RBI, securities guaranteed by the Central and State Governments (including but not

limited to coupon bearing bonds, zero coupon bonds and treasury bills). State Government

securities (popularly known as State Development Loans or SDLs) are issued by the

respective State Government in co-ordination with the RBI.

Non Convertible Debentures and Bonds

Non convertible debentures as well as bonds are securities issued by companies /

institutions promoted / owned by the Central or State Governments and statutory bodies

which may or may not carry a Central/State Government guarantee, Public and private

sector banks, all India Financial Institutions and Private Sector Companies. These instruments

may be secured or unsecured against the assets of the Company and generally issued to

meet the short term and long term fund requirements. These instruments may have fixed or

floating rate coupon.

The Scheme may also invest in the non convertible part of convertible debt securities.


Real Estate Investment Trust (REITs) & Infrastructure Investment Trust (InvIT):

REIT/ InvITs is a trust which holds real estate or infrastructure assets respectively which is

managed by an investment manager. The unitholders in the trust have proportional interest

in the underlying holdings of the trust.

Securitized Assets:

Securitization is a structured finance process which involves pooling and repackaging of

cashflow producing financial assets into securities that are then sold to investors. They are

termed as Asset Backed Securities (ABS) or Mortgage Backed Securities (MBS). ABS are

backed by other assets such as credit card, automobile or consumer loan receivables,

retail installment loans or participations in pools of leases. Credit support for these securities

may be based on the underlying assets and/or provided through credit enhancements by

a third party. MBS is an asset backed security whose cash flows are backed by the principal

and interest payments of a set of mortgage loans. Such Mortgage could be either

residential or commercial properties. ABS/MBS instrument reflect the undivided interest in

the underlying assets and do not represent the obligation of the issuer of ABS/MBS or the

originator of underlying receivables. Securitization often utilizes the services of SPV.

Pass through Certificate (PTC)

Pay through or other Participation Certificates represents beneficial interest in an underlying

pool of cash flows. These cash flows represent dues against single or multiple loans

originated by the sellers of these loans. These loans are given by banks or financial

institutions to corporates. PTCs may be backed, but not exclusively, by receivables of

personal loans, car loans, two wheeler loans and other assets subject to applicable

regulations.

The following are certain additional disclosures w.r.t. investment in securitized debt:

1. How the risk profile of securitized debt fits into the risk appetite of the Scheme

Securitized debt is a form of conversion of normally non-tradable loans to transferable

securities. This is done by assigning the loans to a special purpose vehicle (a trust), which in

turn issues Pass-Through-Certificates (PTCs). These PTCs are transferable securities with fixed

income characteristics. The risk of investing in securitized debt is similar to investing in debt

securities. However it differs in two respects.

Typically the liquidity of securitized debt is less than similar debt securities. For certain types

of securitized debt (backed by mortgages, personal loans, credit card debt, etc.), there is

an additional pre-payment risk. Pre-payment risk refers to the possibility that loans are

repaid before they are due, which may reduce returns if the re-investment rates are lower

than initially envisaged.

Because of these additional risks, securitized debt typically offers higher yields than debt

securities of similar credit rating and maturity. If the fund manager judges that the

additional risks are suitably compensated by the higher returns, he may invest in securitized

debt up to the limits specified in the asset allocation table above.

2. Policy relating to originators based on nature of originator, track record, NPAs, losses in


The originator is the person who has initially given the loan. The originator is also usually

responsible for servicing the loan (i.e. collecting the interest and principal payments). An

analysis of the originator is especially important in case of retail loans as this affects the

credit quality and servicing of the PTC. The key risk is that of the underlying assets and not of

the originator. For example, losses or performance of earlier issuances does not indicate

quality of current series. However such past performance may be used as a guide to

evaluate the loan standards, servicing capability and performance of the originator.

Originators may be: Banks, Non-Banking Finance Companies, Housing Finance Companies,

etc. The fund manager / credit analyst evaluates originators based on the following

parameters

Track record

Willingness to pay, through credit enhancement facilities etc.

Ability to pay


Business risk assessment, wherein following factors are considered:

- Outlook for the economy (domestic and global)

- Outlook for the industry

- Company specific factors

In addition, a detailed review and assessment of rating rationale is done including

interactions with the originator as well as the credit rating agency.

The following additional evaluation parameters are used as applicable for the originator /

underlying issuer for pool loan and single loan securitization transactions:

Default track record/ frequent alteration of redemption conditions / covenants

High leverage ratios of the ultimate borrower (for single-sell downs) – both on a

standalone basis as well on a consolidated level/ group level

Higher proportion of reschedulement of underlying assets of the pool or loan, as the

case may be

Higher proportion of overdue assets of the pool or the underlying loan, as the case may

be

Poor reputation in market

Insufficient track record of servicing of the pool or the loan, as the case may be.

3. Risk mitigation strategies for investments with each kind of originator

An analysis of the originator is especially important in case of retail loans as the size and

reach affects the credit quality and servicing of the PTC. In addition, the quality of the

collection process, infrastructure and follow-up mechanism; quality of MIS; and credit

enhancement mechanism are key risk mitigants for the better originators / servicers.

In case of securitization involving single loans or a small pool of loans, the credit risk of the

underlying borrower is analyzed. In case of diversified pools of loans, the overall

characteristic of the loans is analyzed to determine the credit risk. The credit analyst looks at

ageing (i.e. how long the loan has been with the originator before securitization) as one

way of evaluating the performance potential of the PTC. Securitization transactions may

include some risk mitigants (to reduce credit risk). These may include interest subvention

(difference in interest rates on the underlying loans and the PTC serving as margin against

defaults), overcollateralization (issue of PTCs of lesser value than the underlying loans, thus

even if some loans default, the PTC continues to remain protected), presence of an equity

/ subordinate tranche (issue of PTCs of differing seniority when it comes to repayment - the

senior tranches get paid before the junior tranche) and / or guarantees.

4. The level of diversification with respect to the underlying assets, and risk mitigation



borrower is analyzed. In case of diversified pools of loans, the overall characteristic of the

loans is analyzed to determine the credit risk.

The credit analyst looks at ageing (i.e. how long the loan has been with the originator

before securitization) as one way of judging the performance potential of the PTC.

Additional risk mitigants may include interest subvention, over collateralization, presence of

an equity / subordinate tranche and / or guarantees. The credit analyst also uses analyses

by credit rating agencies on the risk profile of the securitized debt.

Currently, the following parameters are used while evaluating investment decision relating

to a pool securitization transaction. The Investment Review Committee may revise the

parameters from time to time.

Characteristics/T

ype of Pool

Mortg

age

Loan

Commercial

Vehicle and

Construction

Equipment

CAR 2

wheele

rs

Micro

Financ

e

Pools *

Person

al

Loans

*

Singl

e Sell

Dow

ns

Othe

rs

Approximate

Average

maturity (in

Up to

10

years

Up to 3

years

Up to

3

years

Up to 3

years

NA NA Refer

Note

1

Refer

Note

2


Characteristics/T

ype of Pool

Mortg

age

Loan

Commercial

Vehicle and

Construction

Equipment

CAR 2

wheele

rs

Micro

Financ

e

Pools *

Person

al

Loans

*

Singl

e Sell

Dow

ns

Othe

rs

Months)

Collateral margin

(including cash,

guarantees,

excess interest

spread,

subordinate

tranche)

>10% >10% >10% >10% NA NA “ “

Average Loan to

Value Ratio

<90% <80% <80% <80% NA NA “ “

Average

seasoning of the

Pool

>3

mont

hs

>3 months >3

mont

hs

>3

months

NA NA “ “

Maximum single

exposure range

<1% <1% <1% <1% NA NA “ “

Average single

exposure range

%

<1% <1% <1% <1% NA NA “ “

* Currently, the Scheme will not invest in these types of securitized debt

Note 1: In case of securitization involving single loans or a small pool of loans, the credit risk

of the borrower is analyzed. The investment limits applicable to the underlying borrower are

applied to the single loan sell-down.

Note 2: Other investments will be decided on a case-to-case basis

The credit analyst may consider the following risk mitigating measures in his analysis of the

securitized debt:

Size of the loan

Average original maturity of the pool

Loan to Value Ratio

Average seasoning of the pool

Default rate distribution

Geographical Distribution

Credit enhancement facility

Liquid facility

Structure of the pool

5. Minimum retention period of the debt by originator prior to securitization

Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the

"true sale" criteria including credit enhancement and liquidity enhancements. In addition,

RBI has proposed minimum holding period of between nine and twelve months for assets

before they can be securitized. The minimum holding period depends on the tenor of the

securitization transaction. The Scheme will invest in securitized debts that are compliant with

the laws and regulations.

6. Minimum retention percentage by originator of debts to be securitized


"true sale" criteria including credit enhancement and liquidity enhancements, including

maximum exposure by the originator in the PTCs. In addition, RBI has proposed minimum

retention requirement of between five and ten percent of the book value of the loans by

the originator. The minimum retention requirement depends on the tenor and structure of

the securitization transaction. The Fund will invest in securitized debts that are compliant

with the laws and regulations.


7. The mechanism to tackle conflict of interest when the mutual fund invests in securitized

debt of an originator and the originator in turn makes investments in that particular

scheme of the fund

The key risk is securitized debt relates to the underlying borrowers and not the originator. In

a securitization transaction, the originator is the seller of the debt(s) and the fund is the

buyer. However, the originator is also usually responsible for servicing the loan (i.e.

collecting the interest and principal payments). As the originators may also invest in the

scheme, the fund manager shall ensure that the investment decision is based on

parameters as set by the Investment Review Committee (IRC) of the Asset Management

Company and IRC shall review the same at regular interval.

8. The resources and mechanism of individual risk assessment with the AMC for monitoring

investment in securitized debt

The fund management team including the credit analyst has the experience to analyze

securitized debt. In addition, credit research agencies provide analysis of individual

instruments and pools. On an on-going basis (typically monthly) the servicer provides reports

regarding the performance of the pool. These reports would form the base for ongoing

evaluation where applicable. In addition, rating reports indicating rating changes would be

monitored for changes in rating agency opinion of the credit risk.

Debt derivative instruments

Interest Rate Swap

An Interest Rate Swap (IRS) is a financial contract between two parties exchanging or

swapping a stream of interest payments for a “notional principal” amount on multiple

occasions during a specified period. Such contracts generally involve exchange of a “fixed

to floating” or “floating to fixed rate” of interest. Accordingly, on each payment date that

occurs during the swap period, cash payments based on fixed/ floating and floating rates

are made by the parties to one another.

Forward Rate Agreement

A Forward Rate Agreement (FRA) is a financial contract between two parties to exchange

interest payments for a ‘notional principal’ amount on settlement date, for a specified

period from start date to maturity date. Accordingly, on the settlement date, cash

payments based on contract (fixed) and the settlement rate, are made by the parties to

one another. The settlement rate is the agreed bench-mark/ reference rate prevailing on

the settlement date.

Interest Rate Futures:

A futures contract is a standardized, legally binding agreement to buy or sell a commodity

or a financial instrument in a designated future month at a market determined price (the

futures price) by the buyer and seller. The contracts are traded on a futures exchange. An

Interest Rate Future is a futures contract with an interest bearing instrument as the

underlying asset.

Characteristics of Interest Rate Futures

1. Obligation to buy or sell a bond at a future date

2. Standardized contract.

3. Exchange traded

4. Physical settlement

5. Daily mark to market

Investment in Gold Exchange Traded Funds (Gold ETFs)

Gold Exchange Traded Funds are open ended scheme(s) that invest primarily in gold or

gold related instruments. As per the current SEBI MF Regulations, Gold ETFs are allowed to

invest in gold. Further the Gold ETFs can invest in gold related instruments only after such

instruments are specified by SEBI. The units of ETFs are listed on the stock exchange(s).

Further, authorized participants and large investors can subscribe and redeem the units of

Gold ETFs in creation unit size as specified by respective scheme(s).

Foreign Securities

The Scheme may also invest in suitable investment avenues in foreign securities in overseas

financial markets for the purpose of diversification, commensurate with the Scheme


objectives and subject to necessary stipulations by SEBI / RBI. Towards this end, the Mutual

Fund may also appoint overseas investment advisors and other service providers, to the

extent permissible under the Regulations.

The Scheme may, with the approval of SEBI / RBI, where required invest in:

ADRs (American Depository Receipts)/ GDRs (Global Depository Receipts) issued by

Indian or foreign companies

Equity of overseas companies listed on recognized stock exchanges overseas

Initial and follow on public offerings for listing at recognized stock exchanges overseas

Foreign debt securities in the countries with fully convertible currencies, short term as

well as long term debt instruments with rating not below investment grade by

accredited/registered credit rating agencies

Money market instruments rated not below investment grade

Repos in the form of investment, where the counterparty is rated not below investment

grade; repos shall not however, involve any borrowing of funds by the mutual funds

Government securities where the countries are rated not below investment grade

Derivatives traded on recognized stock exchanges overseas only for hedging and

portfolio balancing with underlying as securities

Short term deposits with banks overseas where the issuer is rated not below investment

grade

Units/securities issued by overseas mutual funds or unit trusts registered with overseas

regulators and investing in (a) aforesaid securities, or (b) unlisted overseas securities (not

exceeding 10% of their net assets).

Note: The Scheme will not invest in foreign securitized debt.

As per SEBI circular no. SEBI/IMD/CIR No.7/104753/07 dated September 26, 2007, mutual

funds can make overseas investments subject to a maximum of US $300 million or such limits

as may be prescribed by SEBI from time to time. Subject to the approval of RBI / SEBI and

conditions as may be prescribed by them, the Mutual Fund may open one or more foreign

currency accounts abroad either directly, or through the custodian/sub-custodian, to

facilitate investments and to enter into/deal in forward currency contracts,

currency futures, interest rate futures / swaps, currency options for the purpose of hedging

the risks of assets of a portfolio or for its efficient management. However, the use of such

instruments shall be as permitted from time to time. All the requirement of the SEBI circular

dated September 26, 2007, would be adhered to by the AMC for investment in foreign

securities.

Investment in overseas securities shall be made in accordance with the requirements

stipulated by SEBI and RBI from time to time.

Units of Mutual Fund schemes

The Scheme may invest in other schemes managed by the AMC or in the schemes of any

other mutual funds in conformity with the investment objective of the Scheme and in terms

of the prevailing SEBI (MF) Regulations.

Short Term Deposits

Pending deployment of funds as per the investment objective of the Scheme, the funds

may be parked in short term deposits of the Scheduled Commercial Banks, subject to

guidelines and limits specified by SEBI. The funds may also be parked in units of debt and

liquid mutual fund schemes.

The securities / instruments mentioned above and such other securities the Scheme is

permitted to invest in could be listed, unlisted, privately placed, secured, unsecured, rated

or unrated and of any maturity.

The securities may be acquired through initial public offering (IPOs), secondary market,

private placement, rights offers, negotiated deals, etc. Further investments in debentures,

bonds and other fixed income securities will be in instruments which have been assigned

investment grade rating by the Credit Rating Agency.


Investment in unrated debt instruments shall be subject to complying with the norms as

specified by Board from time to time.

For applicable regulatory investment limits please refer paragraph "Investment Restrictions”.

Details of various derivative instruments along with derivative strategies have been

provided under the paragraph “Derivatives Strategy”.

The Fund Manager may invest in any other security as may be permitted from time to time

and which are in line with the investment objectives of the Scheme.

E. WHAT ARE THE INVESTMENT STRATEGIES


portfolio of equity, fixed income & gold exchange traded funds.

The scheme seeks to benefit from the concept of asset allocation. The aim of asset

allocation is to provide superior risk adjusted returns through diversification across various

asset classes like equity, fixed income & gold which have historically had low correlation

with each other.


The equity allocation will be managed actively. The focus would be to build a diversified

portfolio of strong growth companies, reflecting our most attractive investment ideas, at all

points of time.

The portfolio will be built utilising a bottom-up stock selection process, focusing on

appreciation potential of individual stocks from a fundamental perspective. The AMC

employs a "Fair value" based research process to analyse the appreciation potential of

each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The

universe of stocks is carefully selected to include companies having a robust business

models and enjoying sustainable competitive advantages as compared to their

competitors. The Fund will have the flexibility to invest across the market capitalization

spectrum.

The Fund by utilizing a holistic risk management strategy will endeavor to manage risks

associated with investing in equity markets. The Fund has identified the following risks and

designed risk management strategies, which are embedded in the investment process to

manage these risks

i) Quality Risk - Risk of investing in unsustainable / weak companies.

ii) Price Risk - Risk of overpaying for a company

iii) Liquidity Risk - High Impact cost of entry and exit

iv) Volatility Risk - Volatility in price due to company or portfolio specific factors

v) Event Risk - Price risk due to a company / sector specific or market event

Fixed Income:

The Scheme proposes to invest in a diversified portfolio of high quality debt and money

market instruments to generate regular income. The fund manager will allocate the assets

of the scheme taking into consideration the prevailing interest rate scenario & the liquidity

of the different instruments.

The portfolio duration and credit exposures will be decided based on a thorough research

of the general macroeconomic condition, political and fiscal environment, systemic

liquidity, inflationary expectations, corporate performance and other economic

considerations. The fund manager will keep in mind the yield structure of different asset

classes (e.g. the sovereign yield curve and the corporate bond yield curve) as well as the

kinks within a particular yield curve (e.g. the different points of the sovereign yield curve)

while making investment decisions.

Gold Exchange Traded Funds:


The Scheme will also invest in gold ETFs as gold, historically, has shown a low correlation with

other asset classes like equity and debt making it a good asset for diversifying the overall

portfolio.

PORTFOLIO TURNOVER

The Scheme is an open-ended scheme. It is expected that there would be a number of

subscriptions and redemptions on a daily basis. Consequently, it is difficult to estimate with

any reasonable measure of accuracy, the likely turnover in the portfolio.

There may be an increase in transaction cost such as brokerage paid, if trading is done

frequently. However, the cost would be negligible as compared to the total expenses of

the Scheme. Frequent trading may increase the profits which will offset the increase in

costs. The fund manager will endeavor to optimize portfolio turnover to maximize gains and

minimize risks keeping in mind the cost associated with it. However, it is difficult to estimate

with reasonable accuracy, the likely turnover in the portfolio of the Scheme. The Scheme

has no specific target relating to portfolio turnover

Debt and Money Markets in India

The Indian debt market is today one of the largest in Asia and includes securities issued by

the Government (Central & State Governments), public sector undertakings, other

government bodies, financial institutions, banks and corporates. Government and public

sector enterprises are the predominant borrowers in the markets. The major players in the

Indian debt markets today are banks, financial institutions, mutual funds, insurance

companies, primary dealers, trusts, pension funds and corporates. The Indian debt market is

the largest segment of the Indian financial markets. The debt market comprises broadly two

segments, viz. Government Securities market or G-Sec market and corporate debt market.

The latter is further classified as market for PSU bonds and private sector bonds.

The Government Securities (G-Secs) market, consists of G-Sec outstanding of Rs.

58,19,997.04 cr as on Sep 03, 2019 (State Govt securities - Rs 24,02,242 cr, Source: CCIL), is

the oldest and the largest component (50% share in market cap) of the Indian debt market

in terms of market capitalization, outstanding securities and trading volumes. The G-Secs

market plays a vital role in the Indian economy as it provides the benchmark for

determining the level of interest rates in the country through the yields on the Government

Securities which are referred to as the risk-free rate of return in any economy. Over the

years, there have been new products introduced by the RBI like zero coupon bonds,

floating rate bonds, inflation indexed bonds, etc.

The corporate bond market, in the sense of private corporate sector raising debt through

public issuance in capital market, is only an insignificant part of the Indian Debt Market. The

market capitalization of corporate debt market as on March 31,2016 is Rs. 4,35,743.204 Cr

(Source: NSE). A large part of the issuance in the non-Government debt market is currently

on private placement basis.

The money markets in India essentially consist of the call money market (i.e. market for

overnight and term money between banks and institutions), repo transactions (temporary

sale with an agreement to buy back the securities at a future date at a specified price),

commercial papers (CPs, short term unsecured promissory notes, generally issued by

corporates), certificate of deposits (CDs, issued by banks) and Treasury Bills (issued by RBI).

In a predominantly institutional market, the key money market players are banks, financial

institutions, insurance companies, mutual funds, primary dealers and corporates. In money

market, activity levels of the Government and nongovernment debt vary from time to time.

Instruments that comprise a major portion of money market activity include but not limited

to:

• Overnight Call

• Tri Party Repo

• Repo/Reverse Repo Agreement

• Treasury Bills

• Government securities with a residual maturity of < 1 year.

• Commercial Paper

• Certificate of Deposit


Apart from these, there are some other options available for short tenure investments that

include MIBOR linked debentures with periodic exit options and other such instruments.

Though not strictly classified as Money Market Instruments, PSU / DFI / Corporate paper with

a residual maturity of < 1 year, are actively traded and offer a viable investment option.

The market has evolved in past 2-3 years in terms of risk premia attached to different class

of issuers. Bank CDs have clearly emerged as popular asset class with increased

acceptability in secondary market. PSU banks trade the tightest on the back of comfort

from majority government holding. Highly rated manufacturing companies also command

premium on account of limited supply. However, there has been increased activity in

papers issued by private/foreign banks/NBFCs/companies in high-growth sector due to

higher yields offered by them. Even though companies across these sectors might have

been rated on a same scale, the difference in the yield on the papers for similar maturities

reflects the perception of their respective credit profiles.

The following table gives approximate yields prevailing on November 1, 2019 on some of

the instruments and further illustrates this point.

Instrument Current Yield range (%)

Tri-party Repo 4.90%-5.10%

Repo 4.90%-5.10%

3M T-bill 5.04%-5.10%

1Y T-bill 5.25%-5.30%

10Y G-sec 6.40%-6.45%

3m PSU Bank CD 5.10%-5.15%

3m Manufacturing co. CP 5.20%-5.30%

1Y PSU Bank CD 5.55%-5.60%

1Y NBFC CP 6.50%-6.65%

1Y Manufacturing co. CP 6.00%-6.10%

5Y AAA Institutional Bond 6.80%-6.85%


Source: Bloomberg

These yields are indicative and do not indicate yields that may be obtained in future as

interest rates keep changing consequent to changes in macro-economic conditions and

RBI policy. The price and yield on various debt instruments fluctuate from time to time

depending upon the macro economic situation, inflation rate, overall liquidity position,

foreign exchange scenario etc. Also, the price and yield vary according to maturity profile,

credit risk etc.

RISK CONTROL

Risk management is going to be an integral part of the investment process. Effective risk

management is critical to fund management for achieving financial soundness.

Investments by the Scheme shall be made as per the investment objectives of the Scheme

and provisions of the Regulations.

The investment team of the AMC will carry out rigorous in depth credit evaluation of the

money market and debt instruments (other than GSecs) proposed to be invested in. The

credit evaluation will essentially be a bottom up approach and include a study of the

operating environment of the issuer, the past track record as well as the future prospects of

the issuer and the short term / long term financial health of the issuer.

With respect to the equity component, the scheme would invest in a diversified portfolio of

equity and equity related securities which would help alleviate the sector/market

capitalization related concentration risk.

For portfolio diversification, the scheme will also invest in gold ETFs as gold, historically, has

shown a low correlation to other asset classes like equity & debt.

The AMC has experienced investment professionals to help limit the investment universe to

carefully selected high quality businesses.


The AMC would incorporate adequate safeguards for controlling risks in the portfolio

construction process, which would be periodically evaluated. The scheme will also use

derivatives and other hedging instruments, as may be permitted by SEBI and RBI, from time

to time, in order to protect the value of the portfolio. The fund manager would also

consider hedging the portfolios in case of predictable events with uncertain outcomes.

The risk control process involves identifying & measuring the risk through various Risk

Measurement Tools.

The AMC has implemented the Bloomberg Portfolio Order Management System as Front

Office System (FOS). The system has incorporated all the investment restrictions as per SEBI

guidelines and “soft” warning alerts at appropriate levels for preemptive monitoring. The

system enables identifying & measuring the risk through various risk measurement tools like

various risk ratios, average duration and analyzes the same so as to act in a preventive

manner.

DERIVATIVES STRATEGY

The Scheme may invest in various derivative instruments which are permissible under the

applicable regulations. Such investments shall be subject to the investment objective and

strategy of the Scheme and the internal limits if any, as laid down from time to time. These

include but are not limited to futures (both stock and index) and options (stock and index).

Derivatives are financial contracts of pre-determined fixed duration, like stock

futures/options and index futures and options, whose values are derived from the value of

an underlying primary financial instrument such as: interest rates, exchange rates,

commodities, and equities.

Derivatives can be either exchange traded or can be over the counter (OTC). Exchange

traded derivatives are listed and traded on stock exchanges whereas OTC derivative

transactions are generally structured between two counterparties.

The objectives of the various strategies include earning option premium/ hedge stock /

portfolio against market gyrations.

The risks associated with derivatives are similar to those associated with underlying

investments. The additional risks of using derivative strategies could be on account of:

Illiquidity;

Potential mis - pricing of the Futures/Options;

Lack of opportunity;

Inability of derivatives to correlate perfectly with the underlying (Indices, Assets,

Exchange Rates);

Cost of hedge can be higher than adverse impact of market movements;

An exposure to derivatives in excess of the hedging requirements can lead to losses;

An exposure to derivatives can also limit the profits from a genuine investment

transaction;

The prices which are seen on the screen need not be the same at which execution will

take place.

In case of option writing, the downside of the strategy could be more than the option

premium earned.

For detailed risks associated with use of derivatives, please refer paragraph “Scheme

Specific Risk Factors”. Exchange traded derivatives Contracts in stocks and indices in India

are currently cash settled at the time of maturity.

Derivatives allowed for mutual funds are only exchange traded and not OTC.

Concepts and Examples of derivatives which may be used by the fund manager:

Futures

Futures (Index & Stocks) are forward contracts traded on the exchanges & have been

introduced both by BSE and NSE. Generally futures of 1 month (near month), 2 months (next


month) and 3 months (far month) are presently traded on these exchanges. These futures

expire on the last working Thursday of the respective months.

Illustration with Index Futures

In case the Nifty 50 near month future contract is trading at say, Rs. 3,510, and the fund

manager has a view that it will depreciate going forward; the Scheme can initiate a sale

transaction of Nifty futures at Rs. 3,510 without holding a portfolio of equity stocks or any

other underlying long equity position. Once the price falls to Rs. 3,400 after say, 20 days,

the Scheme can initiate a square-up transaction by buying the said futures and book a

profit of Rs. 110.

Correspondingly, if the fund manager has a positive view he can initiate a long position in

the index / stock futures without an underlying cash/ cash equivalent subject to the extant

regulations.

There are futures based on stock indices as mentioned above as also futures based on

individual stocks. The profitability of index /stock future as compared to an individual

security will inter-alia depends upon:

The carrying cost,

The interest available on surplus funds, and

The transaction cost.

Example of a typical future trade and the associated costs

Particulars Index

Future

Actual Purchase

of Stocks

Index at the beginning of the month 3500 3500

Price of 1 month future 3510

A. Execution cost: Carry and other index future costs 10

B. Brokerage cost: Assumed at 7.02 8.75

0.2% of Index Future

0.25% for spot Stocks

C. Gains on surplus fund: (Assumed 8% p.a. return on 85%

of the money left after paying 15% margin)

(8%*3500*85%*30 days/365)

19.56 0

Total Cost (A+B-C) -2.54 8.75

Some strategies that employ stock /index futures and their objectives:

(a) Arbitrage

(1) Selling spot and buying future: In case the Scheme holds the stock of a company “A” at

say Rs. 100 while in the futures market it trades at a discount to the spot price say at Rs. 98,

then the Scheme may sell the stock and buy the futures.

On the date of expiry of the stock future, the Scheme may reverse the transactions (i.e.

buying at spot & selling futures) and earn a risk-free Rs. 2 (2% absolute) on its holdings

without any dilution of the view of the fund manager on the underlying stock.

Further, the Scheme can still benefit from any movement of the price in the upward

direction, i.e. if on the date of expiry of the futures, the stock trades at Rs. 110 which would

be the price of the futures too, the Scheme will have a benefit of Rs 10 whereby the

Scheme gets the 10% upside movement together with the 2% benefit on the arbitrage and

thus getting a total return of 12%.The corresponding return in case of holding the stock

would have been 10%.

Note: The same strategy can be replicated with a basket of Nifty- 50 stocks (Synthetic Nifty)

and the Nifty future index.

(2) Buying spot and selling future: Where the stock of a company “A” is trading in the spot

market at Rs. 100 while it trades at Rs. 102 in the futures market, then the Scheme may buy

the stock at spot and sell in the futures market thereby earning Rs. 2.

Buying the stock in cash market and selling the futures results into a hedge where the

Scheme has locked in a spread and is not affected by the price movement of cash market


and futures market. The arbitrage position can be continued till expiry of the future

contracts when there is a convergence between the cash market and the futures market.

This convergence enables the Scheme to generate the arbitrage return locked in earlier.

(b) Buying/ Selling Stock future:

When the Scheme wants to initiate a long position in a stock whose spot price is at say,

Rs.100 and futures is at 98, then the Scheme may just buy the futures contract instead of the

spot thereby benefiting from a lower cost.

In case the Scheme has a bearish view on a stock which is trading in the spot market at

Rs.98 and the futures market at say Rs. 100, the Scheme may subject to regulations, initiate

a short position in the futures contract. In case the prices align with the view and the price

depreciates to say Rs. 90, the Scheme can square up the short position thereby earning a

profit of Rs.10 vis-a-vis a fall in stock price of Rs 8.

(c) Hedging:

The Scheme may use exchange-traded derivatives to hedge the equity portfolio. Both

index and stock futures and options may be used to hedge the stocks in the portfolio.

(d) Alpha Strategy:

The Scheme will seek to generate alpha by superior stock selection and removing market

risks by selling appropriate index. For example, one can seek to generate positive alpha by

buying a bank stock and selling Bank Nifty future.

Execution of these strategies depends upon the ability of the fund manager to identify and

execute based on such opportunities. These involve significant uncertainties and decision

of fund manager may not always be profitable. No assurance can be given that the fund

manager will be able to identify or execute such strategies.

Option Contracts (Stock and Index)

An Option gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock

at an agreed-upon price during a certain period of time or on a specific date.

Options are used to manage risk or as an investment to generate income. The price at

which underlying security is contracted to be purchased or sold is called the Strike Price.

Options that can be exercised on or before the expiration date are called American

Options while, Options that can be exercised only on the expiration date are called

European Options.

Options Risk / Return Pay-off Table

Stock / Index Options Buy Call Sell Call Buy Put Sell Put

1 View on underlying Positive Negative Negative Positive

2 Premium Pay Receive Pay Receive

3 Risk Potential Limited to

premium

paid

Unlimited Limited to

premium

paid

Unlimited

4 Return Potential Unlimited Premium

Received

Unlimited Premium

Received

Option contracts are of following two types - Call and Put.

Call Option: A call option gives the buyer, the right to buy specified quantity of the

underlying asset at the set strike price on or before expiration date and the seller (writer) of

call option however, has the obligation to sell the underlying asset if the buyer of the call

option decides to exercise the option to buy.

Put Option: A put option gives the buyer the right to sell specified quantity of the underlying

asset at the set strike price on or before expiration date and the seller (writer) of put option

however, has the obligation to buy the underlying asset if the buyer of the put option

decides to exercise his option to sell.


Index Options / Stock Options

Index options / Stock options are termed to be an efficient way of buying / selling an

index/stock compared to buying / selling a portfolio of physical shares representing an

index for ease of execution and settlement. The participation can be done by buying /

selling either Index futures or by buying a call/put option.

The risk are also different when index /stock futures are bought/sold vis-a-vis index/ stocks

options as in case of an index future there is a mark to market variation and the risk is much

higher as compared to buying an option, where the risk is limited to the extent of premium

paid.

The illustration below explains how one can gain using Index call / put option. These same

principles of profit / loss in an Index option apply in totality to that for a stock option.

Call Option

Suppose an investor buys a Call option on 1 lot of Nifty 50 (Lot Size: 50 units)

• Nifty index (European option).

• Nifty 1 Lot Size: 50 units

• Spot Price (S): 3500

• Strike Price (x): 3550 (Out-of-Money Call Option)

• Premium: 100

Total Amount paid by the investor as premium [50*100] = Rs. 5,000

There are two possibilities i.e. either the index moves up over the strike price or remains

below the strike price.

Case 1- The index goes up

• An investor sells the Nifty Option described above before expiry:

Suppose the Nifty 50 Index moves up to 3600 in the spot market and the premium has

moved to Rs 200 and there are 15 days more left for the expiry. The investor decides to

reverse his position in the market by selling his 1 Nifty call option as the option now is In the

Money.

His gains are as follows:

• Nifty Spot: 3600

• Current Premium: Rs.200

• Premium paid: Rs.100

• Net Gain: Rs.200- Rs.100 = Rs.100 per unit

• Total gain on 1 lot of Nifty (50 units) = Rs.5,000 (50*100)

In this case the premium of Rs.200 has an intrinsic value of Rs.50 per unit and the remaining

Rs.150 is the time value of the option.

• An investor exercises the Nifty Option at expiry

Suppose the Nifty index moves up to 3700 in the spot market on the expiry day and the

investor decides to reverse his position in the market by exercising the Nifty call option as

the option now is In The Money.




• Exercise Price: 3550

• Receivable on exercise: 3700-3550 = 150

• Total Gain: Rs.2500 {(150-100)*50}

In this case the realised gain is only the intrinsic value, which is Rs.50, and there is no time

value.

Case 2 - The Nifty index moves to any level below 3550

Then the investor does not gain anything but on the other hand his loss is limited to the

premium paid:

Net Loss is Rs.5,000 (Loss is capped to the extent of Premium Paid)

(Rs 100 Premium paid*Lot Size: 50 units).

Put Option

Suppose an investor buys a Put option on 1 lot of Nifty 50.


• Nifty 1 Lot Size: 50 units

• Spot Price (S): 3500

• Strike Price (x): 3450 (Out-of-Money Put Option)

• Premium: Rs. 30

• Total Amount paid by the investor as premium [50*30] = Rs. 1,500

There are two possibilities i.e. either the index moves over the strike price or moves below

the strike price.

Let us analyze these scenarios.

Case 1 - The index goes down

• An investor sells the Nifty Option before expiry:

Suppose the Nifty 50 Index moves down to 3400 in the spot market and the premium has

moved to Rs. 80 and there are 15 days more left for the expiry. The investor decides to

reverse his position in the market by selling his 1 Nifty Put Option as the option now is In The

Money. His gains are as follows:



• Net Gain: Rs.80 - Rs.30 = Rs.50 per unit

• Total gain on 1 lot of Nifty (50 units) = Rs.2,500 (50*50)

In this case the premium of Rs.80 has an intrinsic value of Rs.50 per unit and the remaining

Rs.30 is the time value of the option.

An investor exercises the Nifty Option at expiry (It is an European Option)

Suppose the Nifty index moves down to 3400 in the spot market on the expiry day and the

investor decides to reverse his position in the market by exercising the Nifty Put Option as

the option now is In The Money.


• Nifty Spot: 3,400


• Exercise Price: 3450

• Gain on exercise: 3450-3400 = 50

• Total Gain: Rs.1,000 {(50-30)*50}

In this case the realised amount is only the intrinsic value, which is Rs.50, and there is no time

value in this case.

Case 2 - If the Nifty 50 Index stays over the strike price which is 3450, in the spot market then

the investor does not gain anything but on the other hand his loss is limited to the premium

paid.

• Nifty Spot: >3450

• Net Loss Rs.1,500 (Loss is caped to the extent of Premium Paid)

(Rs 30 Premium paid*Lot Size: 50 units).

Covered Call Strategy

The covered call strategy is a strategy where a fund manager writes call options against an

equivalent long position in an underlying stock thereby giving up a part of the upside from

the long position. The strategy allows the fund manager to earn premium income from the

option writing in addition being able to capture the remaining part of the upside.

Assumptions:

Current price of stock A: Rs. 27.87 per share

1 contract = 100 shares

Total no of contracts: 10

Strike price: Rs. 30/- per share

Premium: Rs. 0.35 per share

Suppose, on October 6, 2018, the writer of the call owns 1,000 shares of Company A, which

is currently trading at Rs. 27.87 per share. The writer of the call writes 10 call option contracts

for company A with a strike price of Rs. 30 per share that expires in January 2019. The writer


receives premium of 0.35 per share for the calls, which equals Rs. 35.00 per contract for a

total of Rs. 350.00.

Total premium = (Rs. 0.35 per share) * (100 shares per contract) * (10 contracts) = Rs. 350.

The following can be the scenarios reflecting risks and benefits at the end of the option

expiry:

Case 1 - Stock falls below current price of Rs. 27.87 per share: The option expires worthless.

Hence the loss from the stock position gets reduced to the extent of the premium income.

Case 2 - Stock goes up above current price but remains below Rs. 30 per share (strike

price): The option expires worthless. Hence the income from the gains in the stock price

gets further boosted to the extent of the premium income.

Case 3 - Stock goes above Rs. 30 per share: Option position goes out of the money for the

writer but the losses from the option position are matched by the gains from the underlying

stock position above Rs. 30 per share. Hence the return from the position is equal to the

return from stock upto the strike price of Rs. 30 per share and the premium income from the

option.

Benefits of using Covered Call Strategy in Mutual Funds:

The covered call strategy can be followed by the Fund Manager in order to hedge risk

thereby resulting in better risk adjusted returns of the Scheme. The strategy offers the

following benefits:

a) Hedge against market risk - Since the fund manager sells a call option on a stock already

owned by the mutual fund scheme, the downside from fall in the stock price would be

lower to the extent of the premium earned from the call option.

b) Generating additional returns in the form of option premium in a range bound market.

Thus, a covered call strategy involves gains for unit holders in case the strategy plays out in

the right direction.

Fixed Income Derivative Instruments:

The Scheme may use Derivative instruments like interest rate swaps like overnight indexed

swaps (OIS), forward rate agreements, interest rate futures or such other Derivative

instruments as may be permitted under the applicable regulations. Derivatives will be used

for the purpose of hedging, and portfolio balancing or such other purpose as may be

permitted under the regulations and guidelines from time to time.

The Fund will be allowed to take exposure in interest rate swaps only on a non-leveraged

basis. A swap will be undertaken only if there is an underlying asset in the portfolio. In terms

of circular no. MFD.BC.191/07.01.279/1999-2000 and MPD.BC.187/07.01.279/1999- 2000

dated November 1, 1999 and July 7, 1999 respectively issued by RBI permitting participation

by Mutual Funds in interest rate swaps and forward rate agreements, the Scheme will use

Derivative instruments for the purpose of hedging and portfolio balancing. The Scheme

may also use derivatives for such purposes as maybe permitted from time to time. Further,

the guidelines issued by RBI from time to time for forward rate agreements and interest rate

swaps and other derivative products would be adhered to by the Mutual Fund.

IRS and FRAs do also have inherent credit and settlement risks. However, these risks are

substantially reduced as they are limited to the interest streams and not the notional

principal amounts.

Investments in Derivatives will be in accordance with the extant SEBI Regulations /

guidelines. Presently Derivatives shall be used for hedging and / or portfolio balancing

purposes, as permitted under the Regulations. The circumstances under which such

transactions would be entered into would be when, for example using the IRS route it is

possible to generate better returns / meet the objective of the Scheme at a lower cost. e.g.

if buying a 2 Yr MIBOR based instrument and receiving the 2 Yr swap rate yields better return

than the 2 Yr AAA corporate, the Scheme would endeavor to do that. Alternatively, the


Scheme would also look to hedge existing fixed rate positions if the view on interest rates is

that it would likely rise in the future.

The following information provides a basic idea as to the nature of the Derivative

instruments proposed to be used by the Scheme and the benefits and risks attached

therewith. Please note that the examples have been given for illustration purposes only.

Using Overnight Indexed Swaps

In a rising interest rate scenario, the Scheme may enhance returns for the Investor by

hedging the risk on its fixed interest paying assets by entering into an OIS contract where

the Scheme agrees to pay a fixed interest rate on a specified notional amount, for a pre-

determined tenor and receives floating interest rate payments on the same notional

amount. The fixed returns from the Scheme assets and the fixed interest payments to be

made by the Scheme on account of the OIS transaction offset each other and the Scheme

benefits on the floating interest payments that it receives. The Scheme may enter into an

opposite position in case of a falling interest rate scenario, i.e. to hedge the floating rate

assets in its portfolio the Scheme enters into an OIS transaction wherein it receives a fixed

interest rate on a specified notional amount for a specified time period and pays a floating

interest rate on the same notional amount. The floating interest payments that the Scheme

receives on its floating rate securities and the floating interest payments that the Scheme

has to pay on account of the OIS transaction offset each other and the Scheme benefits

on the fixed interest payments that it receives in such a scenario.

Swap

Assume that the Scheme has a Rs. 20 crore floating rate investment linked to MIBOR

(Mumbai Inter Bank Offered Rate). Hence, the Scheme is currently running an interest rate

risk and stands to lose if the interest rate moves down. To hedge this interest rate risk, the

Scheme can enter into a 6 month MIBOR swap. Through this swap, the Scheme will receive

a fixed predetermined rate (assume 12%) and pays the “benchmark rate” (MIBOR), which is

fixed by the NSE or any other agency such as Reuters. This swap would effectively lock-in

the rate of 12% for the next 6 months, eliminating the daily interest rate risk. This transaction

is usually routed through an intermediary who runs a book and matches deals between

various counterparties.

The steps will be as follows:

Assuming the swap is for Rs. 20 Crores for June 1, 2009 to December 1, 2009. The Scheme is

a fixed rate receiver at 12% and the counterparty is a floating rate receiver at the overnight

rate on a compounded basis (say NSE MIBOR).

On June 1, 2009 the Scheme and the counterparty will exchange only a contract of having

entered this swap. This documentation would be as per International Swap Dealers

Association (ISDA) norms.

On a daily basis, the benchmark rate fixed by NSE will be tracked by them.

On December 1, 2009 they will calculate the following:

The Scheme is entitled to receive interest on Rs. 20 Crores at 12% for 184 days i.e. Rs. 1.21

Crores, (this amount is known at the time the swap was concluded) and will pay the

compounded benchmark rate.

The counterparty is entitled to receive daily compounded call rate for 184 days & pay

12% fixed.

On December 1, 2009, if the total interest on the daily overnight compounded

benchmark rate is higher than Rs. 1.21 Crores, the Scheme will pay the difference to the

counterparty. If the daily compounded benchmark rate is lower, then the counterparty

will pay the Scheme the difference.

Effectively the Scheme earns interest at the rate of 12% p.a. for six months without

lending money for 6 months fixed, while the counterparty pays interest @ 12% p.a. for 6

months on Rs. 20 Crores, without borrowing for 6 months fixed.

The above example illustrates the use of Derivatives for hedging and optimizing the

investment portfolio. Swaps have their own drawbacks like credit risk, settlement risk.


However, these risks are substantially reduced as the amount involved is interest streams

and not principal.


Assume that on June 30, 2009, the 30 day Commercial Paper (CP) rate is 4% and the

Scheme has an investment in a CP of face value Rs. 50 Crores, which is going to mature on

July 31, 2009. If the interest rates are likely to remain stable or decline after July 31, 2009,

and if the fund manager, who wants to re-deploy the maturity proceeds for 1 more month

does not want to take the risk of interest rates going down, he can then enter into a

following Forward Rate Agreement (FRA) say as on June 30, 2009:

He can receive 1 X 2 FRA on June 30, 2009 at 4.00% (FRA rate for 1 months lending in 1

months time) on the notional amount of Rs. 50 Crores, with a reference rate of 30 day CP

benchmark. If the CP benchmark on the settlement date i.e. July 30, 2009 falls to 3.75%,

then the Scheme receives the difference 4.00 – 3.75 i.e. 25 basis points on the notional

amount Rs. 50 Crores.

Interest Rate Futures

Assume that the Scheme holds an Indian ten year benchmark and the fund manager has a

view that the yields will go up in the near future leading to decrease in value of the

investment and subsequent decrease in Net Asset Value of the Scheme. The fund manager

decides to use Interest Rate Futures to mitigate the risk of decline of Net Asset Value of the

Scheme.

12th October 2009

The benchmark ten year paper 6.88 2009, is trading at INR 98.00 at a yield of 7.19%.

December 2009 futures contract on the ten year notional 7% coupon bearing

Government paper is trading at a yield of 7.29% at a price of INR 98.50.

The mutual fund decides to hedge the exposure by taking a short position in December

2009 interest rate futures contract.

25th November 2009

As expected by the fund manager the yield of the benchmark ten year paper has

increased to 8% and the price has decreased to 92.70.

The December 2009 futures contract is trading at a price of INR 93.17 indicating a yield

of 8.05%

The mutual fund unwinds the short position by buying the December 2009 futures

contract. The transaction results in profit from the futures position, against the

corresponding loss from the Government of India security position.

Directional Trading

As there is an inverse relationship between interest rate movement and underlying bond

prices, the futures price also moves in tandem with the underlying bond prices. If one has a

strong view that interest rates will rise in the near future and wants to benefit from rise in

interest rates; one can do so by taking short position in IRF contracts.

Example: A trader expects long-term interest rate to rise. He decides to sell Interest Rate

Futures contracts as he shall benefit from falling future prices.

Expectation Position

Interest Rates going up Short Futures

Interest Rates going

down

Long Futures

Trade Date - 1st December 2015

Futures Delivery date - 1st January 2016

Current Futures Price - Rs. 97.50

Futures Bond Yield - 8.21%

Trader sell 250 contracts of the January 2016- 10 Year futures contract on NSE on 1st

December 2015 at Rs. 97.50


Assuming the price moves to Rs. 97.15 on December 9, 2015, net MTM gain would be Rs.

1,75,000

(250*2000*97.50-97.15) (I)

Closing out the Position

10th December 2015 - Futures market Price - Rs. 96.70

Trader buys 250 contracts of January 2016 at Rs. 96.70 and squares off his position

Therefore total profit for trader 250*2000*(97.15-96.70) is Rs.2,25,000 (II)

Total Profit on the trade = INR 4,00,000 (I & II)

Hedging

Holders of the GOI securities are exposed to the risk of rising interest rates, which in turn

results in the reduction in the value of their portfolio. So in order to protect against a fall in

the value of their portfolio due to falling bond prices, they can take short position in IRF

contracts.

Example:

Date: 01-December 2015

Spot price of GOI Security: Rs 105.05

Futures price of IRF Contract: Rs 105.12

On 01-December 2015 XYZ bought 2000 GOI securities from spot market at Rs 105.07. He

anticipates that the interest rate will rise in near future. Therefore to hedge the exposure in

underlying market he may sell January 2016 Interest Rate Futures contracts at Rs 105.12

On 16-January 2016 due to increase in interest rate:

Spot price of GOI Security: Rs 104.24

Futures Price of IRF Contract: Rs 104.28

Loss in underlying market will be (104.24 - 105.05)*2000 = Rs 1620

Profit in the Futures market will be (104.28 - 105.12)*2000 = Rs 1680

Imperfect Hedging

The Scheme may use Interst Rate Future for imperfect hedging in accordance with the SEBI

(Mutual Funds) Regulations, 1996 as amended from time to time. In such cases, the

Underlying being hedged and the IRF contract has a 90-day correlation of closing prices of

more than 90%. In case of correlation breaking at any time the derivative position would be

counted as an exposure. SEBI allows maximum of 20% imperfect hedging.

For example, assume a portfolio comprising the following structure:

Security Amount (crs) Price (Rs)

IGB 7.17% 2028 100 97.5

IGB 6.79% 2027 50 94.07

IGB 8.33% 2026 25 103.05

Cash 25

Total 200

Assuming the fund manager intends to hedge the portfolio using IRF and uses contracts on

IGB 6.79% 2027 as it is most liquid.

Maximum imperfect hedging allowed, based on SEBI limit of 20% for the above fund is

200*20% = 40 crs

Maximum perfect hedging using 6.79% 2027 is 100 crs (as amount of 6.79% 2027 in the fund

is 100 crs)

Total hedge the fund can do = 100 crs + 40 crs =140 crs

Assuming the 90-day historical correlation between the instruments in the portfolio are as

follows

90 day historical

correlation

IGB 7.17% 2028 IGB 6.79% 2027 IGB 8.33% 2026

IGB 7.17% 2028 1 0.95 0.80


IGB 6.79% 2027 0.95 1 0.75

IGB 8.33% 2026 0.80 0.75 1

Given that we are using IRF on 7,17% 2028, we can hedge 7.17% 2028 using IRFs as

correlation is more than 90% up to 40 crs (based on the 20% limit of imperfect hedging).

Since one contract of IRF has a notional of Rs. 2 lakhs, in this example the fund manager

sells Rs. 140 crores/2 lakhs = 7000 contracts, to hedge his position.

Hence after hedging the fund is as shown below:

Security Amount (crs) Price (Rs) Comments

IGB 7.17% 2028 100 97.5 100% hedged -

Perfect hedging

IGB 6.79% 2027 50 94.07 40% hedged -

Imperfect hedging

IGB 8.33% 2026 25 103.05 Unhedged

Cash 25 Unhedged

IGB 7.17% 2028 140 97.45

Total 200

At maturity of the Interest Rate Futures

Case 1: bonds close higher than at the time the hedge was entered into

Security Amount (crs) Price before

hedging (Rs)

Price on

maturity of

hedge (Rs)

Gain Net Gain

(Lakhs)

IGB 7.17%

2028

100 97.5 97.6 0.1 10.00

IGB 6.79%

2027

50 94.07 94.22 0.15 7.50

IGB 8.33%

2026

25 103.05 103.10 0.05 1.25

Cash 25 -

Without IRF 18.75

IGB 7.17%

2028

140 97.45 100.6 -0.15 (21.00)

Total with IRF 200 (2.25)

Case 2: bonds close lower than at the time the hedge was entered into

Security Amount (crs) Price before

hedging (Rs)

Price on

maturity of

hedge (Rs)

Gain Net Gain

(Lakhs)

IGB 7.17% 2028 100 97.5 97.4 -0.1 (10.00)

IGB 6.79% 2027 50 94.07 93.95 -0.12 (6.00)

IGB 8.33% 2026 25 103.05 103.00 -0.05 (1.25)

Cash 25 -

Without IRF (17.25)

IGB 7.17% 2028 140 97.45 97.4 0.05 (7.00)

Total with IRF 200 (10.25)

As can be seen in the cases above, in case yields move higher, IRFs help in reducing the

loss to the fund.

Arbitrage

Arbitrage is the price difference between the bonds prices in underlying bond market and

IRF contract without any view about the interest rate movement. One can earn the risk-less

profit from realizing arbitrage opportunity and entering into the IRF contract.


Example:

On 18th December 2015 buy 6.35% GOI ’20 at the current market price of Rs. 97.2485

Step 1 - Short the futures at the current futures price of Rs. 100.00 (9.00% Yield)

Step 2 - Fund the bond by borrowing up to the delivery period (assuming borrowing rate is

8.00%)

Step 3 - On 10th January 2016, give a notice of delivery to the exchange

Assuming the futures settlement price of Rs. 100.00, the invoice price would be

= 100 * 0.9780

= Rs. 97.8000

Under the strategy, the trader has earned a return of

= (97.800 – 97.2485) / 97.2485 * 365 / 23

= 9.00 % (implied repo rate)

(Note: For simplicity accrued interest is not considered for calculation)

Against its funding cost of 8.00% (borrowing rate), thereby earning risk free arbitrage.

Risks aassociated with Interest Rate Futures

Although hedging with interest rate futures allows investors to reduce interest rate risk, it

generally cannot completely eliminate risk. All hedges generally contain some residual, or

basis, risk. Moreover, hedging also introduces some other risks. Some of those risks are credit

risk, marking to market risk, and managerial risk.

Basis risk:

The risk that remains after an investor hedges his portfolio is called basis risk. An investor who

hedges his portfolio with interest rate futures bears basis risk because, when interest rates

change, the change in the price of the futures contract does not perfectly offset the

change in the price of the asset being hedged. Fixed income asset prices can change for

reasons other than changes in interest rates. As a result, the basis risk in a hedge will be

relatively high when factors other than interest rates are an important source of the

changes in the price of the asset being hedged.

For example, an asset's price will fall if the issuer's credit rating falls or if the asset is relatively

illiquid and a large amount is sold. Since these factors would not affect the prices of interest

rate futures, such as Treasury bond futures, interest rate futures cannot offset price changes

caused by such factors. In fact, that is why Treasury bond futures proved to be a less

effective hedging instrument for the corporate bond than for the Treasury bond portfolio.

Credit risk:

Individuals do not have to be concerned about the opposite party defaulting on a futures

contract because every futures exchange has a clearing organization that is a party to

every futures contract in order to guarantee the integrity of the contract. That is, the

clearing house is the seller in every contract bought and the buyer in every contract sold.

But the risk remains that an investor will end up with an un-hedged open futures position if

there is a default on the asset being hedged.

For example, suppose an investor in corporate bonds hedges his portfolio against changes

in interest rates by selling interest rate futures. If interest rates fall, the prices of the bond and

futures will rise. Since futures were sold, the investor would suffer losses on the futures, but

those losses would be offset by the gains on the bonds. If the bond issuer defaults, though,

the investor would have the losses on his futures position but no gains to offset the losses.

F. FUNDAMENTAL ATTRIBUTES

Following are the Fundamental Attributes of the Scheme, in terms of Regulation 18 (15A) of

the SEBI (MF) Regulations:


(ii) Investment Objective

(iii) Terms of Issue


o Liquidity provisions such as listing, Repurchase, Redemption.

o Aggregate fees and expenses charged to the Scheme.

o Any safety or guarantee net provided:

In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustee shall ensure

that no change in the fundamental attributes of the Scheme and the Plan(s) / Option(s)

thereunder or the trust or fee and expenses payable or any other change which would

modify the Scheme and the Plan(s) / Option(s) thereunder and affect the interests of Unit

holders is carried out unless:

A written communication about the proposed change is sent to each Unit holder and

an advertisement is given in one English daily newspaper having nationwide 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 for a period of 30 days to exit at the prevailing Net

Asset Value without any exit load.

G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE ?

The Scheme performance would be benchmarked against a customized composite

benchmark comprising of Nifty 50 TRI, Nifty Composite Debt Index and INR Price of Gold.

The Composition of the benchmark would be:

Asset Class/Instruments Benchmark Percentage

Equity and Equity Related Instruments Nifty 50 TRI 65

Debt and Money Market Instruments Nifty Composite Debt Index 20

Gold Exchange Traded Funds INR Price of Gold 15

As the Scheme intends to invest in a basket of equity, fixed income & gold ETFs, a

customized benchmark has been created to compare its performance.

Nifty 50 TRI, being a well-diversified index accounting for 12 sectors of the economy, is a

suitable benchmark for the equity part of the Scheme. Nifty Composite Debt Index is an

index which tracks the return on a composite portfolio of corporate bonds, commercial

papers, certificate of deposits, government securities & CBLO making it a suitable

benchmark for the debt portion of scheme. As Gold ETFs are primarily invested in physical

gold, the gold ETF component of the scheme will be benchmarked against the INR price of

gold.

The Trustee may change the benchmark in future if a benchmark better suited to the

investment objective of the Scheme is available.

H. WHO MANAGES THE SCHEME?

Name of

Fund

Manager

Ages and

Qualification

Experience of the Fund

Manager

Names of other

schemes under his

management

Tenure as

Fund

Manager of

the Scheme

Mr. R.

Sivakumar

44 years

Bachelor of

Technology,

IIT, Madras

PGDM, IIM,

Ahmedabad

Head – Fixed

Income & Products,

Axis Asset

Management

Company Ltd.

(September 02, 2010

– till date)

Fund Manager –

PMS, Axis Asset

Management Co.

Ltd. (August 2009 till

September 01 2010)

Chief Operating

Officer, Fortis

Investment

Management

Axis Dynamic Bond

Fund (Along with Mr.

Devang Shah), Axis

Capital Protection

Oriented Fund – Sr. 5

(Along with Mr. Ashish

Naik), Axis Children’s

Gift Fund (Along with

Mr. Ashish Naik), Axis

Triple Advantage


Ashish Naik), Axis

Dynamic Equity Fund

(Along with Mr.

Anupam Tiwari), Axis

Equity Saver Fund

9 years


Name of

Fund

Manager

Ages and

Qualification


Manager

Names of other

schemes under his

management

Tenure as

Fund

Manager of

the Scheme

(India) Pvt. Ltd. -

previously known as

ABN AMRO Asset

Management

(India) Pvt. Ltd.

(Last position held –

Chief Operating

Officer. Previous

roles included Fund

Manager – Fixed

Income, VP –

Product

Development and

Portfolio

Management and

Head – Structured

Products.) (April

2004 – July 2009)

Fund Manager –

Fixed Income,

Sundaram Asset

Management

Company Ltd.

(January 2001 –

March 2004)

Research Analyst,

Zurich Asset

Management

(India) Private Ltd.

(December 1999 –

December 2000

(Along with Mr.


Equity Hybrid Fund

(Along with Mr. Ashish

Naik)

Mr. Ashish

Naik

37 years

BE Computers

(Mumbai

University),

PGDBM (XLRI),

FRM (GARP)

Equity Analyst - Axis

Asset Management

Company Ltd.

(August 2009 to

June 21, 2016)

Business Analyst -

Goldman Sachs

India Securities Ltd.

(April 2007 to July

2009)

Software Engineer -

Hexaware

Technologies Ltd.

(August 2003 to May

2005)

Axis Triple Advantage


R. Sivakumar), Axis

Children’s Gift Fund

(along with Mr. R.

Sivakumar), Axis Nifty

ETF, Axis Capital

Builder Fund – Series 1

(Along with Mr.


Regular Saver Fund

(Along with Mr.

Devang Shah), Axis

Equity Hybrid Fund

(along with R.

Sivakumar), Axis

Capital Protection

Oriented Fund - Series

5 (along with R.

Sivakumar) Axis Hybrid

Fund - Series (along

with Mr. Devang

Shah)

3 years

Further, presently the Trustee/AMC has not designated a dedicated Fund Manager for

investment in Foreign Securities. However, it shall be ensured that there is a dedicated fund


manager for investment in foreign securities as and when the fund makes investment in

foreign securities.

I. WHAT ARE THE INVESTMENT RESTRICTIONS?

Pursuant to Regulations, specifically the Seventh Schedule and amendments thereto, the

following investment restrictions are currently applicable to the Scheme:

1. The Scheme shall not invest more than 10 per cent of its NAV in the equity shares or

equity related instruments of any company.

2. All investments by the Scheme in equity shares and equity related instruments shall only

be made provided such securities are listed or to be listed

3. The Mutual Fund under all its Scheme(s) shall not own more than ten per cent of any

company’s paid up capital carrying voting rights.

Provided, investment in the asset management company or the trustee company of a

mutual fund shall be governed by clause (a), of sub-regulation (1), of regulation 7B.

4. The Scheme shall not invest more than 10% of its NAV in debt instruments comprising

money market instruments and non-money market instruments issued by a single issuer,

which are rated not below investment grade by a credit rating agency authorized to

carry out such activity under the SEBI Act, 1992. Such investment limit may be extended

to 12% of the NAV of the Scheme with the prior approval of the Trustee and the Board

of Directors of AMC.

Such limit shall not be applicable for investment in Government Securities, treasury bills

and collateralized borrowing and lending obligations.

Provided further that, investments within such limit can be made in the mortgaged

backed securitised debt, which are rated not below investment grade by a credit

rating agency, registered with SEBI.

5. The Scheme shall not invest in unlisted debt instruments including commercial papers,

except Government Securities, money market instruments and derivative products such

as Interest Rate Swaps, Interest Rate Futures, etc. which are used by mutual fund for

hedging.

Provided that the Scheme may invest in unlisted non-convertible debentures up to a

maximum of 10% of the debt portfolio of the Scheme subject to such conditions as may

be specified by the Board from time to time:

Provided further that the Scheme shall comply with the norms under this clause within

the time and in the manner as may be specified by the Board:

Provided further that the norms for investments by the Scheme in unrated debt

instruments shall be specified by the Board from time to time.

6. The investment by the Scheme in the following instruments shall not exceed 10% of the

debt portfolio of the scheme and the group exposure in such instruments shall not

exceed 5% of the debt portfolio of the scheme:

a. Unsupported rating of debt instruments (i.e. without factoring-in credit

enhancements) is below investment grade and

b. Supported rating of debt instruments (i.e. after factoring-in credit enhancement) is

above investment grade.

These limits shall not be applicable on investments in securitized debt instruments, as

defined in SEBI (Public Offer and Listing of Securitized Debt Instruments) Regulations 2008.

The provisions shall be effective for all fresh investments with effect from January 1, 2020.

7. Investment in debt instruments, having credit enhancements backed by equity shares

directly or indirectly, shall have a minimum cover of 4 times considering the market

value of such shares.



8. The Scheme may invest in other schemes of the Mutual Fund or any other mutual fund

without charging any fees, provided the aggregate inter-scheme investment made by

all the schemes under the same management or in schemes under the management

of any other asset management company shall not exceed 5% of the Net Asset Value

of the Fund.

9. The Scheme shall not make any investment in:

a) any unlisted security of an associate or group company of the sponsor; or`

b) any security issued by way of private placement by an associate or group

company of the sponsor; or

c) the listed securities of group companies of the sponsor which is in excess of 25% of

the net assets

10. The Mutual Fund shall get the securities purchased transferred in the name of the Fund

on account of the concerned Scheme, wherever investments are intended to be of a

long-term nature.

11. Transfer of investments from one scheme to another scheme in the same Mutual Fund is

permitted provided:

a. such transfers are done at the prevailing market price for quoted instruments on

spot basis (spot basis shall have the same meaning as specified by a Stock

Exchange for spot transactions); and

b. the securities so transferred shall be in conformity with the investment objective of the

scheme to which such transfer has been made.

12. The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all

cases of purchases, take delivery of relevant securities and in all cases of sale, deliver

the securities:

Provided that the Mutual Fund may engage in short selling of securities in accordance

with the framework relating to short selling and securities lending and borrowing

specified by SEBI.

Provided further that the Mutual Fund may enter into derivatives transactions in a

recognized stock exchange, subject to the framework specified by SEBI.

Provided further that sale of government security already contracted for purchase shall

be permitted in accordance with the guidelines issued by the Reserve Bank of India in

this regard.

13. The Scheme shall not make any investment in any fund of funds scheme.

14. The mutual fund under all its schemes shall not own more than 10% of units issued by a

single issuer of REIT and InvIT.

15. The Scheme shall not invest –

i. more than 10% of its NAV in the units of REIT and InvIT; and

ii. more than 5% of its NAV in the units of REIT and InvIT issued by a single issuer.

16. The Scheme will comply with the following restrictions for trading in exchange traded

derivatives, as specified by SEBI vide its circular no. DNPD/Cir-29/2005 dated September

14, 2005, circular no. DNPD/Cir-30/2006 dated January 20, 2006, circular no. DNPD/Cir-

31/2006 dated September 22, 2006, circular no. Cir/ IMD/DF/11/2010 dated August 18,

2010, circular no. SEBI/HO/MRD/DP/CIR/P/2016/143 dated December 27, 2016, circular

no. SEBI/HO/IMD/DF2/CIR/P/2017/13 dated February 20, 2017 and SEBI circular no.

SEBI/HO/IMD/DF2/CIR/P/2017/109 dated September 27, 2017:

i. Position limit for the Mutual Fund in equity index options contracts

a. The Mutual Fund position limit in all index options contracts on a particular

underlying index shall be Rs. 500 crores or 15% of the total open interest of the

market in index options, whichever is higher, per stock exchange.

b. This limit would be applicable on open positions in all options contracts on a

particular underlying index.

ii. Position limit for the Mutual Fund in equity index futures contracts:

a. The Mutual Fund position limit in all index futures contracts on a particular underlying

index shall be Rs.500 crores or 15% of the total open interest of the market in index

futures, whichever is higher, per stock exchange.

b. This limit would be applicable on open positions in all futures contracts on a

particular underlying index.

iii. Additional position limit for hedging

In addition to the position limits at point (i) and (ii) above, the Mutual Fund may take

exposure in equity index derivatives subject to the following limits:


a. Short positions in index derivatives (short futures, short calls and long puts) shall not

exceed (in notional value) the Mutual Fund's holding of stocks.

b. Long positions in index derivatives (long futures, long calls and short puts) shall not

exceed (in notional value) the Mutual Fund's holding of cash, government securities,

Treasury Bills and similar instruments.

iv. Position limit for Mutual Fund for stock based derivative contracts

The combined futures and options position limit shall be 20% of the applicable Market

Wide Position Limit (MWPL).

v. Position limit for each scheme of a Mutual Fund

The scheme-wise position limit / disclosure requirements shall be:

a. For stock option and stock futures contracts, the gross open position across all

derivative contracts on a particular underlying stock of a scheme of a Mutual Fund

shall not exceed the higher of 1% of the free float market capitalization (in terms of

number of shares)

or

5% of the open interest in the derivative contract on a particular underlying stock (in

terms of number of contracts).

b. This position limits shall be applicable on the combined position in all derivative

contracts on an underlying stock at a Stock Exchange.

c. For index based contracts, Mutual Funds shall disclose the total open interest held

by its scheme or all schemes put together in a particular underlying index, if such

open interest equals to or exceeds 15% of the open interest of all derivative

contracts on that underlying index.

17. Pending deployment of the funds of the Scheme in securities in terms of the investment

objective of the Scheme, the AMC may park the funds of the Scheme in short term

deposits of scheduled commercial banks, subject to the guidelines issued by SEBI.

The Scheme will comply with the following guidelines/restrictions for parking of funds in

short term deposits:

i. “Short Term” for such parking of funds by the Scheme shall be treated as a period

not exceeding 91 days. Such short-term deposits shall be held in the name of the

Scheme.

ii. The Scheme shall not park more than 15% of the net assets in short term deposit(s) of

all the scheduled commercial banks put together. However, such limit may be

raised to 20% with prior approval of the Trustee.

iii. Parking of funds in short term deposits of associate and sponsor scheduled

commercial banks together shall not exceed 20% of total deployment by the

Mutual Fund in short term deposits.

iv. The Scheme shall not park more than 10% of the net assets in short term deposit(s),

with any one scheduled commercial bank including its subsidiaries.

v. The Scheme shall not park funds in short term deposit (STD) of a bank which has

invested in that Scheme. Further, Trustees/ AMCs shall also ensure that the bank in

which the Scheme has STD do not invest in the said scheme until the Scheme has

STD with such bank.

However, the above provisions will not apply to term deposits placed as margins for

trading in cash and derivatives market.

18. The Scheme shall not advance any loans.

19. The Scheme shall not borrow except to meet temporary liquidity needs of the Scheme

for the purpose of repurchase/redemption of Units or payment of interest and/or

dividend to the Unit holders.

Provided that the Fund shall not borrow more than 20% of the net assets of the

individual Scheme and the duration of the borrowing shall not exceed a period of 6

month.

20. Further, SEBI vide its circular no. Cir/ IMD/ DF/ 11/ 2010 dated August 18, 2010 has

prescribed the following investment restrictions w.r.t. investment in derivatives:

S. Particulars


No.

1 The cumulative gross exposure through equity, debt and derivative positions

shall not exceed 100% of the net assets of the Scheme. Cash or cash

equivalents with residual maturity of less than 91 days shall be treated as not

creating any exposure.

2 The Scheme shall not write options or purchase instruments with embedded

written options except call options under a covered call strategy as specified

in SEBI circular dated January 16, 2019 as amended from time to time.

3 The total exposure related to option premium paid shall not exceed 20% of

the net assets of the Scheme.

4 Exposure due to hedging positions may not be included in the above

mentioned limits subject to the following:

a. Hedging positions are the derivative positions that reduce possible losses

on an existing position in securities and till the existing position remains.

b. Hedging positions cannot be taken for existing derivative positions.

Exposure due to such positions shall have to be added and treated under

limits mentioned in Point 1.

c. Any derivative instrument used to hedge has the same underlying security

as the existing position being hedged.

d. The quantity of underlying associated with the derivative position taken for

hedging purposes does not exceed the quantity of the existing position

against which hedge has been taken.

5 Exposure due to derivative positions taken for hedging purposes in excess of

the underlying position against which the hedging position has been taken,

shall be treated under the limits mentioned in point 1.

6 Each position taken in derivatives shall have an associated exposure as

defined under. Exposure is the maximum possible loss that may occur on a

position. However, certain derivative positions may theoretically have

unlimited possible loss. Exposure in derivative positions shall be computed as

follows:

Position Exposure

Long Future Futures Price * Lot Size * Number of Contracts

Short Future Futures Price * Lot Size * Number of Contracts

Option bought Option Premium Paid * Lot Size * Number of

Contracts.

7 The Scheme may enter into plain vanilla interest rate swaps for hedging

purposes. The counter party in such transactions has to be an entity

recognized as a market maker by RBI. Further, the value of the notional

principal in such cases shall not exceed the value of respective existing assets

being hedged by the Scheme. Exposure to a single counterparty in such

transactions shall not exceed 10% of the net assets of the Scheme.

8 To reduce interest rate risk in a debt portfolio, mutual funds may hedge the

portfolio or part of the portfolio (including one or more securities) on

weighted average modified duration basis by using Interest Rate Futures

(IRFs). The maximum extent of short position that may be taken in IRFs to

hedge interest rate risk of the portfolio or part of the portfolio, is as per the

formula given below:

(Portfolio Modified Duration*Market Value of the Portfolio)

(Futures Modified Duration*Futures Prices/PAR)

9 In case the IRF used for hedging the interest rate risk has different underlying

security(s) than the existing position being hedged, it would result in imperfect

hedging.

10 Imperfect hedging using IRFs may be considered to be exempted from the

gross exposure, upto maximum of 20% of the net assets of the scheme, subject

to the following:

a. Exposure to IRFs is created only for hedging the interest rate risk based on

the weighted average modified duration of the bond portfolio or part of

the portfolio.

b. Mutual Funds are permitted to resort to imperfect hedging, without it

being considered under the gross exposure limits, if and only if, the


correlation between the portfolio or part of the portfolio (excluding the

hedged portions, if any) and the IRF is atleast 0.9 at the time of initiation of

hedge. In case of any subsequent deviation from the correlation criteria,

the same may be rebalanced within 5 working days and if not

rebalanced within the timeline, the derivative positions created for

hedging shall be considered under the gross exposure computed in terms

of Para 3 of SEBI circular dated August 18, 2010. The correlation should be

calculated for a period of last 90 days.

Explanation: If the fund manager intends to do imperfect hedging upto

15% of the portfolio using IRFs on weighted average modified duration

basis, either of the following conditions need to be complied with:

i. The correlation for past 90 days between the portfolio and the IRF is at

least 0.9 or

ii. The correlation for past 90 days between the part of the portfolio

(excluding the hedged portions, if any) i.e. at least 15% of the net asset

of the scheme (including one or more securities) and the IRF is at least

0.9.

c. At no point of time, the net modified duration of part of the portfolio being

hedged should be negative.

d. The portion of imperfect hedging in excess of 20% of the net assets of the

scheme should be considered as creating exposure and shall be included

in the computation of gross exposure in terms of Para 3 of SEBI circular

dated August 18, 2010.

11 The basic characteristics of the scheme should not be affected by hedging

the portfolio or part of the portfolio (including one or more securities) based

on the weighted average modified duration.

Explanation: In case of long term bond fund, after hedging the portfolio

based on the modified duration of the portfolio, the net modified duration

should not be less than the minimum modified duration of the portfolio as

required to consider the fund as a long term bond fund.

12 The interest rate hedging of the portfolio should be in the interest of the

investors.

21. The Scheme may write call options only under a covered call strategy for constituent

stocks of NIFTY 50 and BSE SENSEX subject to the following:

(i) The total notional value (taking into account strike price as well as premium value) of

call options written by a scheme shall not exceed 15% of the total market value of

equity shares held in that scheme.

(ii) The total number of shares underlying the call options written shall not exceed 30% of

the unencumbered shares of a particular company held in the scheme. The

unencumbered shares in a scheme shall mean shares that are not part of Securities

Lending and Borrowing Mechanism (SLBM), margin or any other kind of encumbrances.

(iii) At all points of time the Mutual Fund scheme shall comply with the provisions at

paragraph (i) and (ii) above. In case of any passive breach of the requirement at

paragraph (i), the respective scheme shall have 7 trading days to rebalance the

portfolio. During the rebalancing period, no additional call options can be written in the

said scheme.

(iv) In case the Scheme needs to sell securities on which a call option is written under a

covered call strategy, it must ensure compliance with paragraphs (i) and (ii) above

while selling the securities.

(v) In no case, the scheme shall write a call option without holding the underlying equity

shares. A call option can be written only on shares which are not hedged using other

derivative contracts.

(vi) The premium received shall be within the requirements prescribed in terms of

paragraph 5 of SEBI circular dated August 18, 2010 i.e. the total gross exposure related

to option premium paid and received must not exceed 20% of the net assets of the

scheme.


(vii) The exposure on account of the call option written under the covered call strategy shall

not be considered as exposure in terms of paragraph 3 of SEBI Circular no.

Cir/IMD/DF/11/2010 dated August 18, 2010.


issued by SEBI and/ or RBI from time to time and the guidelines framed by the Board of

Directors of Trustee Company and the Asset Management Company, from time to time.

At present the following conditions and norms shall apply to repo in corporate debt

securities:

(i) The gross exposure of the Scheme to repo transactions in corporate debt securities

shall not be more than 10 % of the net assets of the Scheme.

(ii) The cumulative gross exposure through repo transactions in corporate debt

securities along with equity, debt and derivatives shall not exceed 100% of the net

assets of the Scheme.

(iii) The Scheme shall participate in repo transactions only in AA and above rated

corporate debt securities.

(iv) ‘The Scheme shall borrow through repo transactions only if the tenor of the

transaction does not exceed a period of six months.

(v) The Trustee and the Asset Management Company have framed guidelines interalia

considering the following aspects:

i. Category of counterparty

ii. Credit rating of counterparty

iii. Tenor of collateral

iv. Applicable haircuts

(vi) Counterparty selection & credit rating

The counterparty must be an acceptable counterparty for debt transactions. The

Mutual Fund follows a counterparty empanelment process for fixed income

transactions and the same shall be used for selection of counterparties for

corporate bond repos. All repo transactions in corporate bonds will be governed by

a repo agreement as specified by FIMMDA and / or other specified authorities.

(vii) Collateral tenor & quality

The exposure limit/investment restrictions prescribed under the Seventh Schedule of

the Regulations and circulars issued there under (wherever applicable) shall be

applicable to repo transactions in corporate bonds. The Scheme shall further follow

guidelines framed by Trustee and the AMC from time to time.

(viii) Applicable haircuts

Currently mutual funds are permitted to carry out repo transactions in government

securities without any haircuts. The Reserve Bank of India has notified a minimum

haircut based on rating of the corporate bond and other securities. In addition, the

Fixed Income and Money Market Dealers Association (FIMMDA) would maintain a

rating-haircut matrix on an ongoing basis. The Scheme shall further follow guidelines

framed by Trustee and the AMC from time to time.

The haircuts seek to protect the lender of funds from the event of the counterparty

failing to honor the repurchase leg of the repo. In such a circumstance, the Fund

would suffer a loss if the value of the collateral depreciates by more than the

haircut. The fall in the value of the collateral could be on account of higher yields

and/ or deterioration of credit quality.

As the typical tenor of repos is short (typically overnight), the haircuts represent a

relatively high degree of safety in relation to the interest rate risk on the collateral.

The risk of collateral depreciation based on historical volatility is given in the table

below:

Bond Tenor (yrs) 1 3 5 10

Price Volatility (%) (annualized) 0.6 1.2 1.7 3.4

Repo Tenor Number of standard deviations needed to lose

10%

1 day 258 136 94 48

7 days 98 52 36 18


In the above table, the price volatility of a 10-year bond is about 3.4% annualized.

That is a 10% price move represents nearly a 3-sigma event on an annualized basis.

For overnight tenors, this represents a 48-sigma event (for comparison a 6-sigma

event occurs about once in a million observations).

It is apparent that the haircuts stipulated by RBI are more than sufficient to mitigate

interest rate risk. Credit event risk remains (the collateral could default during the

tenor of the repo). This risk is to be mitigated by ensuring that the collateral is

acceptable from a credit point of view.

The exposure limit/ investment restrictions prescribed under the Seventh Schedule of


applicable to repo transactions in corporate bonds.

The Scheme will comply with the other Regulations applicable to the investments of

Mutual Funds from time to time.

All the investment restrictions will be applicable at the time of making investments.

The AMC/Trustee may alter these above stated restrictions from time to time to the extent

the Regulations change, so as to permit the Scheme to make its investments in the full

spectrum of permitted investments for mutual funds to achieve its respective investment

objective.

J. CREATION OF SEGREGATED PORTFOLIO

Creation of segregated portfolio shall be subject to guidelines specified by SEBI from time to

time and includes the following:

In this regard, the term ‘segregated portfolio’ shall mean a portfolio comprising of debt or

money market instrument affected by a credit event, that has been segregated in a

mutual fund scheme. The term ‘main portfolio’ shall mean the scheme portfolio excluding

the segregated portfolio. The term ‘total portfolio’ shall mean the scheme portfolio

including the securities affected by the credit event.

Credit Event

A) For rated debt or money market instruments

1) Segregated portfolio may be created, in case of a credit event at issuer level i.e.

downgrade in credit rating by a SEBI registered Credit Rating Agency (CRA), as under:

a. Downgrade of a debt or money market instrument to ‘below investment grade’, or

b. Subsequent downgrades of the said instruments from ‘below investment grade’, or

c. Similar such downgrades of a loan rating

2) In case of difference in rating by multiple CRAs, the most conservative rating shall be

considered. Creation of segregated portfolio shall be based on issuer level credit events

as mentioned above and implemented at the ISIN level.

3) Creation of segregated portfolio is optional and is at the discretion of Axis Asset

Management Company Ltd. (‘Axis AMC’/‘the AMC’)

B) For unrated debt or money market instruments

Segregated portfolio of unrated debt or money market instruments may be created

only in case of actual default of either the interest or principal amount by the issuer.

Credit event in this case shall be ‘actual default’ by the issuer of such instruments

and shall be considered for creation of segregated portfolio.

Process for Creation of Segregated Portfolio

1) On the date of credit event, the AMC shall decide on creation of segregated portfolio.

Once AMC decides to segregate portfolio, it shall:

a. seek approval of trustees prior to creation of the segregated portfolio.


b. immediately issue a press release disclosing its intention to segregate such debt and

money market instrument and its impact on the investors. Axis Mutual Fund shall

disclose that the segregation shall be subject to Trustee approval. Additionally, the

said press release shall be prominently disclosed on the website of the AMC.

c. ensure that till the time the Trustee approval is received, which in no case shall

exceed 1 business day from the day of credit event, the subscription and

redemption in the Scheme shall be suspended for processing with respect to

creation of units and payment on redemptions.

2) Once Trustee approval is received by the AMC:

a. Segregated portfolio shall be effective from the day of credit event

b. AMC shall issue a press release immediately with all relevant information pertaining

to the segregated portfolio. The said information will also be submitted to SEBI.

c. An e-mail or SMS shall be sent to all unit holders of the Scheme.

d. The NAV of both segregated and main portfolios shall be disclosed from the day of

the credit event.

e. All existing investors in the Scheme as on the day of the credit event shall be allotted

equal number of units in the segregated portfolio as held in the main portfolio.

f. No redemption and subscription shall be allowed in the segregated portfolio. AMC

shall enable listing of units of segregated portfolio on the recognized stock

exchange within 10 working days of creation of segregated portfolio and also

enable transfer of such units on receipt of transfer requests

3) If the trustees do not approve the proposal to segregate portfolio, AMC will issue a press

release immediately informing investors of the same.

Valuation

Notwithstanding the decision to segregate the debt and money market instrument, the

valuation shall take into account the credit event and the portfolio shall be valued based

on the principles of fair valuation (i.e. realizable value of the assets) in terms of the relevant

provisions of SEBI (Mutual Funds) Regulations, 1996 and circular(s) issued thereunder.

Processing of Subscription and Redemption Proceeds

All subscription and redemption requests for which NAV of the day of credit event or

subsequent day is applicable will be processed as under:

i. Upon trustees’ approval to create a segregated portfolio -

Investors redeeming their units will get redemption proceeds based on the NAV of

main portfolio and will continue to hold the units of segregated portfolio.

Investors subscribing to the Scheme will be allotted units only in the main portfolio

based on its NAV.

ii. In case trustees do not approve the proposal of segregated portfolio, subscription and

redemption applications will be processed based on the NAV of total portfolio.

Disclosure

In order to enable the existing as well as the prospective investors to take informed

decision, the following shall be adhered to:

a. A statement of holding indicating the units held by the investors in the segregated

portfolio along with the NAV of both segregated portfolio and main portfolio as on the

day of the credit event shall be communicated to the investors within 5 working days of

creation of the segregated portfolio.

b. Adequate disclosure of the segregated portfolio shall be made in all scheme related

documents, in monthly and half-yearly portfolio disclosures and in the annual report of

the mutual fund and the Scheme.

c. The Net Asset Value (NAV) of the segregated portfolio shall be declared on daily basis.

d. The information regarding number of segregated portfolios created in the Scheme shall

appear prominently under the name of the Scheme at all relevant places such as SID,

KIM-cum-Application Form, advertisement, AMC and AMFI websites, etc.

e. The Scheme performance required to be disclosed at various places shall include the

impact of creation of segregated portfolio. The Scheme performance should clearly

reflect the fall in NAV to the extent of the portfolio segregated due to the credit event

and the said fall in NAV along with recovery(ies), if any, shall be disclosed as a footnote

to the Scheme performance.


f. The disclosures at paragraph (d) and (e) above regarding the segregated portfolio shall

be carried out for a period of at least 3 years after the investments in segregated

portfolio are fully recovered/ written-off.

g. The investors of the segregated portfolio shall be duly informed of the recovery

proceedings of the investments of the segregated portfolio. Status update may be

provided to the investors at the time of recovery and also at the time of writing-off of

the segregated securities.

TER for the Segregated Portfolio

1) Axis AMC shall not charge investment and advisory fees on the segregated portfolio.

However, TER (excluding the investment and advisory fees) can be charged, on a pro-

rata basis only upon recovery of the investments in segregated portfolio.

2) The TER so levied shall not exceed the simple average of such expenses (excluding the

investment and advisory fees) charged on daily basis on the main portfolio (in % terms)

during the period for which the segregated portfolio was in existence.

3) The legal charges related to recovery of the investments of the segregated portfolio

may be charged to the segregated portfolio in proportion to the amount of recovery.

However, the same shall be within the maximum TER limit as applicable to the main

portfolio. The legal charges in excess of the TER limits, if any, shall be borne by the AMC.

4) The costs related to segregated portfolio shall in no case be charged to the main

portfolio.

Monitoring by Trustees

In order to ensure timely recovery of investments of the segregated portfolio, Trustees shall

ensure that:

a. The AMC puts in sincere efforts to recover the investments of the segregated portfolio.

b. Upon recovery of money, whether partial or full, it shall be immediately distributed to

the investors in proportion to their holding in the segregated portfolio. Any recovery of

amount of the security in the segregated portfolio even after the write off shall be

distributed to the investors of the segregated portfolio.

c. The Trustees shall monitor the compliance of this circular and disclose in the half-yearly

trustee reports filed with SEBI, the compliance in respect of every segregated portfolio

created.

In order to avoid mis-use of segregated portfolio, Trustees shall ensure to have a mechanism

in place to negatively impact the performance incentives of Fund Managers, Chief

Investment Officers (CIOs), etc. involved in the investment process of securities under the

segregated portfolio, mirroring the existing mechanism for performance incentives of the

AMC, including claw back of such amount to the segregated portfolio of the Scheme.

Risks associated with segregated portfolio








Illustration of segregated portfolio

The below table shows how a rated security affected by a credit event will be segregated

and its impact on investors:

Portfolio Date July 22, 2019

Downgrade

Event Date

July 22, 2019

Mr. X is holding 1,000 units of the scheme for an amount of Rs. 11,31,993.87 (1,000 *

1,131.9939)

Portfolio before downgrade event

Security Rating Type of the Quantity Market Market Value % of


security Price Per

Unit (Rs.)

(Rs.) Net

Assets

9.60% A Ltd. CRISIL AAA NCD 5,000 103.2232 5,16,116.00 45.59%

8.80% B Ltd. CRISIL AA+ NCD 2,000 99.4678 1,98,935.60 17.57%

9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 10.43%

7.70% D Ltd. CRISIL AA+ NCD 2,000 99.0000 1,98,000.00 17.49%

8.80% E Ltd. CRISIL AA NCD 500 101.2211 50,610.55 4.47%

Cash & cash

equivalents

50,321.20 4.45%

Net Assets 11,31,993.87 100.00%

Unit capital (no

of units)

1000.000

NAV (In Rs.) 1131.9939

Security

downgraded

7.70% D Ltd. from AA+ to D

Valuation

Marked down by

75.00% Valuation agencies shall be providing the valuation price post

consideration of standard haircut matrix.

Total Portfolio as on July 22, 2019

Security Rating

Type of the

security

Quantity

Market

Price Per

Unit (Rs.)

Market Value

(Rs.)

% of

Net

Assets



9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 11.99%

7.70% D Ltd. CRISIL D NCD 2,000 25.0000 50,000.00 5.08%


Cash & cash

equivalents 50,321.20 5.11%

Net Assets 9,83,993.87 100.00%

Unit capital (no

of units) 1000.000

NAV (In Rs.) 983.9939

Main Portfolio as on July 22, 2019

Security Rating Type of the

security

Quantity Market

Price Per

Unit (Rs.)

Market Value

(Rs.)

% of

Net

Assets



9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 12.64%


Cash & cash

equivalents

50,321.20 5.39%

Net Assets 9,33,993.87 100.00%

Unit capital (no

of units)

1000.000

NAV (In Rs.) 933.9939

Segregated Portfolio as on July 22, 2019

Security Rating

Type of the

security

Quantity

Market

Price Per

Unit (Rs.)

Market Value

(Rs.)

% of

Net

Assets

7.70% D Ltd. CRISIL D NCD 2,000 25.0000 50,000.00 100.00%

Net Assets 50,000.00 100.00%

Unit capital (no

of units) 1000.000

NAV (In Rs.) 50.0000

0.0000


Net impact on value of holding of Mr. X after creation of segregation

portfolio

Main Portfolio

Segregated

Portfolio

Total

Value

No. of Units 1,000 1,000

NAV (in Rs.) 933.9939 50.0000

Total Value (in

Rs.) 9,33,993.87 50,000.00 9,83,993.87

K. HOW HAS THE SCHEME PERFORMED?

Performance of Axis Triple Advantage Fund – Regular Plan – Growth Option as at October

31, 2019 is as follows:

Period


Fund - Regular Plan –

Growth Option#

Benchmark^

1 year returns 20.81% 16.27%

3 year returns 7.95% 11.15%


Returns Since Inception (August 23, 2010) 8.56% 9.69%

^65% Nifty 50 TRI + 20% Nifty Composite Debt Index +15% INR Price of Gold (Benchmark)

Absolute returns for the last 5 financial years

Performance of Axis Triple Advantage Fund – Direct Plan – Growth Option as at October 31,

2019 is as follows:

Period


Fund - Direct Plan –

Growth Option#

Benchmark^

1 year returns 22.14% 16.27%



Returns Since Inception (January 1, 2013) 9.02% 10.26%

^65% Nifty 50 TRI + 20% Nifty Composite Debt Index +15% INR Price of Gold (Benchmark)

Absolute returns for the last 5 financial years


#Past performance may or may not be sustained in future. Returns greater than 1 year are

compounded annualized (CAGR). Calculations are based on Growth Option NAVs.

Different plans have different expense structure.

L. INVESTMENTS BY THE AMC

Subject to the Regulations, the AMC may invest either directly or indirectly, in the Scheme

during the Ongoing Offer Period. However, the AMC shall not charge any investment

management fee on such investment in the Scheme.

M. ADDITIONAL SCHEME RELATED DISCLOSURES

a. Scheme’s portfolio holdings as on October 31, 2019:

(i) Top 10 holdings by Issuer:

Equity Instruments

Name of Issuer % of Net Assets

HDFC Bank Limited 6.21%

Bajaj Finance Limited 6.15%

Kotak Mahindra Bank Limited 5.36%

Tata Consultancy Services Limited 5.21%

Housing Development Finance Corporation Limited 3.86%

ICICI Bank Limited 3.55%

Divi's Laboratories Limited 2.91%

Bandhan Bank Limited 2.55%

Avenue Supermarts Limited 2.43%

Reliance Industries Limited 2.14%

Debt Instruments


Axis Mutual Fund (Axis Gold ETF) 14.03%

LIC Housing Finance Limited 3.60%

Punjab National Bank 1.76%

Power Finance Corporation Limited 1.34%

Clearing Corporation of India Ltd 1.20%

National Bank For Agriculture and Rural Development 1.13%

India Infrastructure Fin Co Ltd 0.96%

Union Bank of India 0.88%

REC Limited 0.37%

Hindalco Industries Limited 0.19%


Sector % of Net Assets

Financial services 39.74%

Others^ 15.23%


IT 8.83%

Consumer goods 8.26%

Automobile 5.49%

Pharma 3.96%

Chemicals 3.39%

Cash & cash equivalent 3.37%

Energy 2.51%

Construction 1.86%

Fertilisers & pesticides 1.79%

Textiles 1.63%

Cement & cement products 1.58%

Services 1.34%

Industrial manufacturing 0.75%

Metals 0.19%

Government of India 0.08%

Total 100%

^TREPS/Mutual Fund Units/Repo

Please visit www.axismf.com to obtain Scheme’s latest monthly portfolio holding statement.

b. Portfolio Turnover

Portfolio turnover ratio for the one year period ended October 31, 2019: 1.18 times*

(*Based on equity, equity derivatives and Fixed Income Securities transactions only.

CBLO/Repo/FD/Margin FD/MFU/SLB are not considered.)

c. Aggregate investment in the Scheme of certain categories of persons:

Sr.

No.

Category of Persons Net Asset Value of Units held as on

October 31, 2019 (in Rs.)

i AMC’s Board of Directors Nil

ii Concerned scheme’s Fund Manager(s) Nil

iii Other key managerial personnel 6,62,254.12

Note:

1. Investment of Managing Director & Chief Executive Officer of AMC, if any, is included in

investments of “Other key managerial personnel”.

2. Investment of Fund Manager of the Scheme is not included in investments of “Other key

managerial personnel”.


III. UNITS AND OFFER

This section provides details you need to know for investing in the Scheme.

A. NEW FUND OFFER (NFO)

New Fund Offer Period

This is the period during

which a new scheme

sells its Units to the

investors.

The New Fund Offer opened on June 30, 2010 and closed on July 29,

2010. The units under the Scheme were allotted on August 23, 2010.

New Fund Offer Price:

This is the price per Unit

that the investors have

to pay to invest during

the NFO.

Not Applicable

Minimum Amount for

Application /Switch in in

the NFO

Not Applicable

Minimum Target amount

Not Applicable

Maximum amount to be

raised (if any)

Not Applicable

Plans / Options offered The Scheme offers the following Plans:

1. Axis Triple Advantage Fund – Regular Plan

2. Axis Triple Advantage Fund – Direct Plan

Each Plan offers the following options:

a) Growth Option

b) Dividend Option.

1. Dividend Payout Facility

2. Dividend Reinvestment Facility

a) Growth Option

Dividends will not be declared under this Option. The income

attributable to Units under this Option will continue to remain invested

in the Scheme and will be reflected in the Net Asset Value of Units

under this Option.

b) Dividend Option

Under this Option, dividends will be declared at the discretion of the

Trustee, subject to availability of distributable surplus calculated in

accordance with SEBI (MF) Regulations. On payment of dividend, the

NAV of the units under Dividend option will fall to the extent of the

dividend payout and applicable statutory levies,

if any.

It must be distinctly understood that the actual declaration of

dividend and frequency thereof is at the sole discretion of Board of

Directors of the Trustee Company. There is no assurance or guarantee

to the Unit holders as to the rate of dividend distribution nor that the

dividend will be paid regularly.

Dividend Payout Facility

Under this facility, dividend declared, if any, will be paid (subject to

deduction of dividend distribution tax and statutory levy, if any) to


those Unit holders, whose names appear in the register of Unit holders

on the notified record date.

Dividend Reinvestment Facility

Under this facility, the dividend due and payable to the Unit holders

will be compulsorily and without any further act by the Unit holder,

reinvested in the Dividend option at a price based on the prevailing

ex-dividend Net Asset Value per Unit. The amount of dividend re-

invested will be net of tax deducted at source, wherever applicable.

The dividends so reinvested shall constitute a constructive payment of

dividends to the Unit holders and a constructive receipt of the same

amount from each Unit holder for reinvestment in Units.

On reinvestment of dividends, the number of Units to the credit of Unit

holder will increase to the extent of the dividend reinvested divided

by the Applicable NAV. There shall, however, be no Load on the

dividend so reinvested.

Default Plan

The investor must clearly specify his choice of plan. Investors

subscribing under Direct Plan of a Scheme will have to indicate

“Direct Plan” against the Scheme name in the application form.

Investors should also indicate “Direct” in the ARN column of the

application form. The investors may refer to the following table for

applicability of Direct Plan/ Regular Plan under different scenario :-

Scenario Broker Code mentioned

by the investor

Plan mentioned

by the investor

Default Plan to be

captured

1 Not mentioned Not mentioned Direct Plan

2 Not mentioned Direct Direct Plan

3 Not mentioned Regular Direct Plan

4 Mentioned Direct Direct Plan

5 Direct Not Mentioned Direct Plan

6 Direct Regular Direct Plan

7 Mentioned Regular Regular Plan

8 Mentioned Not Mentioned Regular Plan

In cases of wrong/ invalid/ incomplete ARN codes mentioned on the

application form, the application shall be processed under Regular

Plan. The AMC shall contact and obtain the correct ARN code within

30 calendar days of the receipt of the application form from the

investor/ distributor. In case, the correct code is not received within 30

calendar days, the AMC shall reprocess the transaction under Direct

Plan from the date of application without any exit load.

Default Option/Facility

The investor must clearly specify his choice of option/facility. In the

absence of such clear instruction, it will be assumed that the investor

has opted for ‘default’ option / facility and the application will be

processed accordingly. The default option / facility are:

Default Option: Growth (between Growth and Dividend)

Default Facility: Dividend Reinvestment facility (between Dividend

Reinvestment and Dividend Payout facility)

Default Plan – Redemption application -

Where Units under a Scheme are held under both Plans and the

redemption / Switch request pertains to the Direct Plan, the same

must clearly be mentioned on the request (along with the folio


number), failing which the request would be processed from Axis

Triple Advantage Fund – Regular Plan. However, where Units under

the requested Option are held only under one Plan, the request

would be processed under such Plan.

Dividend Policy Under the Dividend option, the Trustee will have the discretion to

declare the dividend, subject to availability of distributable surplus

calculated in accordance with the Regulations. The actual

declaration of dividend and frequency will inter-alia, depend on

availability of distributable surplus calculated in accordance with SEBI

(MF) Regulations and the decisions of the Trustee shall be final in this

regard. There is no assurance or guarantee to the Unit holders as to

the rate of dividend nor that the dividend will be paid regularly.

The AMC/Trustee reserves the right to change the frequency of

declaration of dividend or may provide for additional frequency for

declaration of dividend.

Dividend Distribution Procedure

In accordance with SEBI circular no. SEBI/ IMD/ Cir No. 1/ 64057/06

dated April 4, 2006, the procedure for Dividend distribution would be

as under:

1. Quantum of dividend and the record date will be fixed by the

Trustee. Dividend so decided shall be paid, subject to availability

of distributable surplus.

2. Within one calendar day of decision by the Trustee, the AMC shall

issue notice to the public communicating the decision about the

dividend including the record date, in one English daily

newspaper having nationwide circulation as well as in a

newspaper published in the language of the region where the

head office of the Mutual Fund is situated.

3. Record date shall be the date, which will be considered for the

purpose of determining the eligibility of investors whose names

appear on the register of Unit holders for receiving dividends. The

Record Date will be 5 calendar days from the date of issue of

notice.

4. The notice will, in font size 10, bold, categorically state that

pursuant to payment of dividend, the NAV of the Scheme would

fall to the extent of payout and statutory levy (if applicable).

5. The NAV will be adjusted to the extent of dividend distribution

and statutory levy, if any, at the close of business hours on record

date.

6. Before the issue of such notice, no communication indicating the

probable date of dividend declaration in any manner whatsoever

will be issued by Mutual Fund.

Allotment Not Applicable

Refund Not Applicable

Who can invest

This is an indicative list

and you are requested

to consult your financial

advisor to ascertain

whether the scheme is

suitable to your risk

profile.

The following persons (subject to, wherever relevant, purchase of unit

of mutual funds, being permitted under respective constitutions, and

relevant statutory regulations) are eligible and may apply for

Subscription to the Unit of the Scheme:

1. Resident adult individuals either singly or jointly (not exceeding

three) or on an Anyone or Survivor basis;

2. Hindu Undivided Family (HUF) through Karta;

3. Minor (as the first and the sole holder only) through a natural

guardian (i.e. father or mother, as the case may be) or a court

appointed legal guardian. There shall not be any joint holding with

minor investments;

4. Partnership Firms;

5. Limited Liability Partnerships;


6. Proprietorship in the name of the sole proprietor;

7. Companies, Bodies Corporate, Public Sector Undertakings (PSUs.),

Association of Persons (AOP) or Bodies of Individuals (BOI) and

societies registered under the Societies Registration Act, 1860 (so

long as the purchase of Unit is permitted under the respective

constitutions);

8. Banks (including Co-operative Banks and Regional Rural Banks)

and Financial Institutions;

9. Religious and Charitable Trusts, Wakfs or endowments of private

trusts (subject to receipt of necessary approvals as "Public

Securities" as required) and Private trusts authorised to invest in

mutual fund schemes under their trust deeds;

10. Non-Resident Indians (NRIs) / Persons of Indian origin (PIOs) /

Overseas Citizen of India (OCI) residing abroad on repatriation

basis or on non-repatriation basis;

11. Foreign Portfolio Investor (FPI) registered with SEBI on repatriation

basis. These investments shall be subject to the conditions

prescribed by SEBI, RBI, Income Tax authorities and the AMC, from

time to time;

12. Army, Air Force, Navy and other para-military units and bodies

created by such institutions;

13. Scientific and Industrial Research Organisations;

14. Multilateral Funding Agencies / Bodies Corporate incorporated

outside India with the permission of Government of India / RBI

15. Provident/ Pension/ Gratuity Fund to the extent they are

permitted;

16. Other schemes of Axis Mutual Fund or any other mutual fund

subject to the conditions and limits prescribed by SEBI (MF)

Regulations;


18. Trustee, AMC or Sponsor or their associates may subscribe to Units

under the Scheme(s);

19. Such other category of person(s) permitted to make investments

and as may be specified by the AMC / Trustee from time to time.

Subject to SEBI (Mutual Funds) Regulations, 1996, any application for

subscription of units may be accepted or rejected in the sole and

absolute discretion of the AMC/ Trustee company. The AMC/ Trustee

company may also reject any application for subscription of units if

the application is invalid, incomplete, or if the AMC/ Trustee company

for any other reason does not believe that it would be in the interest

of the scheme or its unitholders to accept such an application.

Email ID & Mobile Number

Investors should provide their own email address and mobile number

to enable Axis AMC for speed and ease of communication in a

convenient and cost-effective manner, and to help prevent

fraudulent transactions.

Ultimate Beneficial Ownership details:

SEBI vide its circular no. CIR/MIRSD/2/2013 dated January 24, 2013

further read with AMFI Best practices guidelines circular no. 62/2015-16

dated September 18, 2015 and other applicable regulations has

prescribed guidelines, for identification of Beneficial Ownership to be

followed by the intermediaries. A ‘Beneficial owner’ is defined as a

natural person or persons who ultimately own, control or influence a

client and/or persons on whose behalf a transaction is being

conducted, and includes a person who exercises ultimate effective

control over a legal person or arrangement. In this regard, all

categories of investors (including all new / existing investors /


unitholders) (except individuals, companies listed on a stock

exchange or majority-owned subsidiary of such companies) are

mandatorily required to provide beneficial ownership details for all

investments. Failing which, fund reserves the right to reject

applications / subscription requests / additional subscription requests

(including switches) / restrict further investments or seek additional

information from investors who have not provided the requisite

information on beneficial ownership. In the event of change in

beneficial ownership, investors are requested to immediately update

the details with the Fund/Registrar.

Foreign Account Tax Compliance Act and Common Reporting

Standards requirements

As a part of various ongoing tax and regulatory developments around

the globe [e.g. information exchange laws such as Foreign Account

Tax Compliance Act (‘FATCA’) and Common Reporting Standard

(‘CRS')], financial institutions like Axis Mutual Fund (‘Axis MF’ or ‘the

Fund’) are being cast with additional investor and counterparty

account related due diligence requirements.

The Central Board of Direct Taxes (CBDT) has notified Rules 114F to

114H, as part of the Income-tax Rules, 1962, which Rules require Indian

financial institutions such as the Banks, Mutual Funds, etc. to seek

additional personal, tax and beneficial owner information and certain

certifications and documentation from all our investors and

counterparties. According to the FATCA-CRS Rules, financial

institutions in India are required to report tax information about

account holders that are tax resident of U.S. and other foreign

countries, to the CBDT/ Indian Government which will, in turn, relay

that information to the US Internal Revenue Service (IRS) and

governments of other foreign countries.

These developments have resulted in compliance and reporting

obligations on Financial Institutions like Axis MF. In relevant cases,

information will have to be reported to tax authorities/appointed

agencies. Towards compliance, the Fund may also be required to

provide information to any institutions such as withholding agents for

the purpose of ensuring appropriate withholding from the account or

any proceeds in relation thereto. As may be required by domestic or

overseas regulators/ tax authorities, we may also be constrained to

withhold and pay out any sums from your account or close or

suspend your account(s). Axis MF may also have to comply with other

similar laws as and when applicable.

Prospective investors and Unit holders will therefore be required to

comply with the request of the Fund to furnish such information /

documentation / declarations as and when deemed necessary by

the Investment Manager in accordance with Applicable Laws. In

case prospective investor / Unit holder fails to furnish the relevant

information / documentation / declarations in accordance with

Applicable Laws, the Fund reserves the right to reject the application

or redeem the Units held directly or beneficially and may also require

reporting of such accounts and/or levy of withholding tax on

payments made to the Unit holders / investor and/or take any other

action/s in accordance with Applicable Laws. FATCA-CRS provisions

are relevant not only at on-boarding stage of Unit holders but also

throughout the life cycle of investment with the Fund. Unit holders

therefore should intimate to the Fund/the Investment Manager, any

change in their status with respect to any FATCA-CRS related

information / documentation / declarations provided by them

previously, including but not limited to any declarations provided in


respect of residency of the Unit holders for tax purposes promptly, i.e.

within 30 days. Further, if the Fund and/or the Investment Manager is

required by Applicable Laws, to provide information regarding the

Fund and/or the unit holders / investors to any regulatory authority

and/or the Fund Investments and/or income therefrom, and the Fund

and/or the Investment Manager complies with such request in good

faith, whether or not it was in fact enforceable, they shall not be liable

to the Unit holders / investors or to any other party as a result of such

compliance or in connection with such compliance.

Prospective investors / Unit holders should consult their own advisors to

understand the implications of FATCA-CRS provisions/requirements.

Please note that Axis MF will be unable to provide advice to any

investor or counterparty about their tax status or FATCA/CRS

classification relevant to their account. It is the responsibility of the

investor or counterparty to ensure that they record their correct tax

status / FATCA/ CRS classification. Investor/ counterparty may seek

advice from their tax advisor in this regard. The onus to provide

accurate, adequate and timely inputs in this regard would be that of

the investor or counterparty. Any changes in earlier information

provided must be intimated within 30 days of such change.

Investors are requested to provide all the necessary information /

declarations to facilitate compliance, considering India’s

commitment to implement CRS and FATCA under the relevant

international treaties.

Implementation of KYC requirements:

SEBI vide circular no. MIRSD/SE/Cir-21/2011 dated October 5, 2011

had mandated (i) Standard KYC form with uniform KYC guidelines

and supporting documents to be used by SEBI registered

intermediaries and (ii) Centralized KYC registration through KYC

Registration Agencies (KRAs) registered with SEBI, w.e.f. January 1,

2012, to bring about uniform KYC process in the securities market,

based on SEBI prescribed norms and the KYC details are shared with

all SEBI registered intermediaries by the KRAs.

Subsequently, SEBI, vide its circular no. MIRSD/Cir-5/2012 dated April

13, 2012 advised various intermediaries to upload KYC data of its

existing customers into the KRA system. While uploading KYC data into

the KRA system, intermediaries were also required to highlight such

‘Missing/Not Available’ KYC information of a customer, which was

either not required or not taken previously, but was mandatory as per

uniform KYC guidelines issued by SEBI.

In accordance with AMFI best practices guidelines circular no.

62/2015-16 dated September 18, 2015, it is mandatory for all

new/existing investors to provide additional KYC information such as

Income details, Occupation, association with politically exposed

person, net worth etc. as mentioned in the application form.

Subscription requests, without providing these details, are liable to be

rejected. No subscriptions (whether fresh or additional) and switches

pertaining to ‘KYC on-hold’ cases are accepted, unless the investor /

unitholder also submits relevant KYC missing / updated information,

which is appropriately updated on the KRA - KYC.

Further, it is mandatory for existing customers to complete In-Person

Verification process and provide the missing KYC information failing

which their applications / transaction requests for additional

subscription (including switches) is liable to be rejected.


Central KYC Process

Central Registry of Securitisation and Asset Reconstruction and

Security interest of India (‘CERSAI’) has been authorised by

Government of India to act as Central KYC Records Registry under

Prevention of Money-Laundering (Maintenance of Records) Rules,

2005 (‘PMLA Rules’).

SEBI vide its circular no. CIR/MIRSD/66/2016 dated July 21, 2016 and

circular no. CIR/MIRSD/120/2016 dated November 10, 2016 has

prescribed that the Mutual Fund/ AMC should capture KYC

information for sharing with CKYCR as per the KYC template

prescribed by CERSAI for uniform and smooth implementation of

CKYC norms for onboarding of new investors in Mutual Funds.

In accordance with the aforesaid SEBI circulars and AMFI best

practice guidelines for implementation of CKYC norms with effect

from February 1, 2017:

a) Individual investors who have never done KYC process under KRA

regime i.e. a new investor who is new to KRA system and whose

KYC is not registered or verified in the KRA system shall be required

to provide KYC details in the CKYC Form to the Mutual Fund/

AMC.

b) Individual investor who fills old KRA KYC Form, should provide

additional / missing information using Supplementary KYC Form or

fill CKYC Form. The said form is available on Axis Mutual Fund

website www.axismf.com.

c) Details of investors shall be uploaded on the system of CKYCR and

a 14 digit unique KYC Identification Number (‘KIN’) will be

generated for such customer.

d) New investors, who have completed CKYC process & have

obtained KIN may quote their KIN in the application form instead

of submitting CKYC Form/ Supplementary KYC Form.

e) AMC/ Mutual Fund shall use the KIN of the investor to download

the KYC information from CKYCR system and update its records.

f) If the PAN of investor is not updated on CKYCR system, the

investor should submit self-certified copy of PAN card to the

Mutual Fund/ AMC.

The AMC reserves the right to reject transaction application in case

the investor(s) fails to submit information and/or documentation as

mentioned above. In the event of non-compliance of KYC

requirements, the Trustee / AMC reserves the right to freeze the folio of

the investor(s).

Submission of Aadhar Number

Pursuant to requirement under Prevention of Money Laundering

(Maintenance of Records) Rules, 2005 as amended from time to time,

proof of possession of Aadhar can be accepted as a valid document

for proof of address or proof of identity of investors, provided the

investor redact or blackout his Aadhar number while submitting the

applications for investments.

The aforesaid guidelines will be subject to change as per the

directives issued by the concerned regulatory/ government authority

from time to time.

For further details refer to SAI.

Who cannot invest 1. Any individual who is a foreign national or any other entity that is

not an Indian resident under the Foreign Exchange Management

Act, 1999 (FEMA Act) except where registered with SEBI as a FPI or


otherwise explicitly permitted under FEMA Act/ by RBI/ by any

other applicable authority.

2. Pursuant to RBI A.P. (DIR Series) circular no. 14 dated September

16, 2003, Overseas Corporate Bodies (OCBs) cannot invest in

Mutual Funds.

3. NRIs residing in Non-Compliant Countries and Territories (NCCTs) as

determined by the Financial Action Task Force (FATF), from time to

time.

4. U.S. Persons and Residents of Canada as defined under the

applicable laws of U.S. and Canada except the following:

a. subscriptions received by way of lump sum / switches

/systematic transactions received from Non-resident Indians

(NRIs) / Persons of Indian origin (PIO) / Overseas Citizen of India

(OCI) who at the time of such investment, are present in India

and

b. FPIs

These investors need to submit a physical transaction request

along with such documents as may be prescribed by the AMC/

the Trustee/ the Fund from time to time.

The AMC reserves the right to put the transaction requests on

hold/reject the transaction request/reverse allotted units, as the

case may be, as and when identified by the AMC, which are not

in compliance with the terms and conditions notified in this

regard.

The Trustee / the AMC /the Fund reserve the right to change/

modify the above provisions at a later date.

5. Such other persons as may be specified by AMC from time to

time.

Where can you submit

the filled up

applications.

Not Applicable

How to Apply Please refer to the SAI and Application form for the instructions.

Listing The Scheme is an open ended scheme under which Sale and

Repurchase will be made on a continuous basis and therefore listing

on stock exchanges is not envisaged. However, the Trustee reserves

the right to list the Units as and when considered necessary in the

interest of Unit holders of the Fund.

Special Products /

facilities available during

the NFO

Not Applicable

The policy regarding

reissue of repurchased

Units, including the

maximum extent, the

manner of reissue, the

entity (the scheme or

the AMC) involved in the

same.


Restrictions, if any, on

the right to freely retain

or dispose of Units being

offered.

Pledge of Units

The Unit under the Scheme (subject to completion of Lock in Period, if

any) may be offered as security by way of a pledge / charge in

favour of scheduled banks, financial institutions, non-banking finance

companies (NBFCs), or any other person. The AMC and / or the ISC

will note and record such Pledged Units. The AMC shall mark a lien

only upon receiving the duly completed form and documents as it

may require. Disbursement of such loans will be at the entire discretion

of the bank / financial institution / NBFC or any other person

concerned and the Mutual Fund assumes no responsibility thereof.


The Pledger will not be able to redeem Units that are pledged until

the entity to which the Units are pledged provides written

authorisation to the Mutual Fund that the pledge / lien charge may

be removed. As long as Units are pledged, the Pledgee will have

complete authority to redeem such Units. Dividends declared on Units

under lien will be paid / re-invested to the credit of the Unit Holder

and not the lien holder unless specified otherwise in the lien letter.

Lien on Units

On an ongoing basis, when existing and new Investors make

Subscriptions, a lien on Units allotted will be created and such unit

shall not be available for redemption until the payment proceeds are

realised by the Scheme. In case a unit holder redeems units soon after

making purchases, the redemption cheque will not be dispatched

until sufficient time has elapsed to provide reasonable assurance that

cheques or drafts for Units purchased have been cleared.

In case the cheque / draft is dishonoured by the bank, the transaction

shall be reversed and the Units allotted earlier shall be cancelled, and

a fresh Account Statement / Confirmation slip shall be dispatched to

the Unit holder. For NRIs, the Scheme may mark a lien on Units in case

documents which need to be submitted are not given in addition to

the application form and before the submission of the redemption

request. However, the AMC reserves the right to change operational

guidelines for lien on Units from time to time.

Suspension/Restriction on Redemption of Units of the Scheme

Subject to the approval of the Boards of the AMC and of the Trustee

and subject also to necessary communication of the same to SEBI, the

redemption of / switch-out of Units of Scheme, may be temporarily

suspended/ restricted. In accordance with SEBI circular no.

SEBI/HO/IMD/DF2/CIR/P/2016/57 dated May 31, 2016 and subject to

prevailing regulations, restriction on/suspension of redemptions /

switch-out of Units of the Scheme, may be imposed when there are

circumstances leading to systemic crisis or event that severely

constricts market liquidity or the efficient functioning of markets such

as:

a) Liquidity issues: when market at large becomes illiquid affecting

almost all securities rather than any issuer specific security;

b) Market failures, exchange closures: when markets are affected by

unexpected events which impact the functioning of exchanges or

the regular course of transactions. Such unexpected events could

also be related to political, economic, military, monetary or other

emergencies;

c) Operational issues: when exceptional circumstances are caused

by force majeure, unpredictable operational problems and

technical failures (e.g. a black out).


be imposed for a specified period of time not exceeding 10 working

days in any 90 days period.

When restriction on / suspension of redemption of Units of the Scheme

is imposed, the following procedure shall be applied

i. No redemption / switch-out requests upto Rs. 2 lakhs shall be

subject to such restriction.

ii. Where redemption / switch-out requests are above Rs. 2 lakhs, the

AMC shall redeem the first Rs. 2 lakhs without such restriction and

remaining part over and above Rs. 2 lakhs shall be subject to such

restriction.


In addition to the above, the AMC / Trustee may restrict / suspend

redemptions / switch-out of Units of the Scheme pursuant to direction/

approval of SEBI.

In case of any of the above eventualities, the general time limits for

processing requests for redemption of Units will not be applicable.

Also refer to the paragraph ‘Suspension of Purchase and Redemption

of Units’ in the Statement of Additional Information.

Third Party Payment

Avoidance

and additional

documents /

declaration required

Please refer SAI for details.

Cash Investments in

mutual funds

In order to help enhance the reach of mutual fund products amongst

small investors, who may not be tax payers and may not have

PAN/bank accounts, such as farmers, small

traders/businessmen/workers, SEBI has permitted receipt of cash

transactions for fresh purchases/ additional purchases to the extent of

Rs. 50,000/- per investor, per mutual fund, per financial year subject to:

i. compliance with Prevention of Money Laundering Act, 2002 and

Rules framed there under; the SEBI Circular(s) on Anti Money

Laundering (AML) and other applicable Anti Money Laundering Rules,

Regulations and Guidelines; and

ii. sufficient systems and procedures in place.

However, payment towards redemptions, dividend, etc. with respect

to aforementioned investments shall be paid only through banking

channel.

The Fund/ AMC is currently in the process of setting up appropriate

systems and procedures for the said purpose. Appropriate notice shall

be displayed on its website viz. as well as at the Investor Service

Centres, once the facility is made available to the investors.

B. ONGOING OFFER DETAILS

Default Plan/ Option

The investors may refer to the paragraph under New Fund offer

Section for applicability of Direct Plan/ Regular Plan under different

scenario.


This is the date from

which the scheme will

reopen for

subscriptions/redemptio

ns after the closure of

the NFO period.

The Scheme has reopened for continuous subscription and

redemption from August 28, 2010.

Ongoing price for

subscription

(purchase)/switch-in

(from other

schemes/plans of the

mutual fund) by

investors.

This is the price you

need to pay for

purchase/switch-in.

At the Applicable NAV

SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30,

2009 has decided that there shall be no entry Load for all Mutual Fund

Schemes. Hence, no entry load is levied for subscription transactions

by the Scheme.

Methodology of calculating subscription price:

Subscription Price = Applicable NAV*(1+Entry Load, if any)

Example: If the Applicable NAV is Rs. 10, Entry Load is NIL then the

subscription price will be:

= Rs. 10* (1+NIL)

= Rs. 10

Ongoing price for At the Applicable NAV subject to prevailing Exit Load.


redemption (sale)

/switch outs (to other


Mutual Fund) by

investors.

This is the price you will

receive for

redemptions/switch

outs.

Ongoing price for redemption /Switch out (to other Schemes/Plans of

the Mutual Fund) is price which a Unit holder will receive for

redemption/Switch-outs. During the continuous offer of the Scheme,

the Unit holder can redeem the Units at Applicable NAV, subject to

payment of Exit Load, if any. It will be calculated as follows:

Methodology of calculating repurchase price:

Redemption Price = Applicable NAV*(1-Exit Load, if any)

Example: If the Applicable NAV is Rs. 10, Exit Load is 2% then

redemption price will be:

= Rs. 10* (1-0.02)

= Rs. 9.80

Investors/Unit holders should note that the AMC/Trustee has right to

modify existing Load structure and to introduce Loads subject to a

maximum limits prescribed under the SEBI Regulations.

Any change in Load structure will be effective on prospective basis

and will not affect the existing Unit holder in any manner.

However, the Mutual Fund will ensure that the Redemption Price will

not be lower than 93% of the Applicable NAV provided that the

difference between the Redemption Price and the Subscription

/Purchase Price at any point in time shall not exceed the permitted

limit as prescribed by SEBI from time to time, which is currently 7%

calculated on the Subscription/ Purchase Price. The Purchase Price

shall be at applicable NAV.

Cut off timing for

subscriptions/

redemptions/ switches

This is the time before

which your application

(complete in all

respects) should reach

the official points of

acceptance.

Subscriptions/Purchases including Switch - ins:

The following cut-off timings shall be observed by the Mutual Fund in

respect of purchase of units of the Scheme and the following NAVs

shall be applied for such purchase:

1. where the application is received upto 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 receipt of application;

2. 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;

3. where the application is received with an outstation cheque or

demand draft which is not payable at par at the place where it is

received – closing NAV of day on which the cheque or demand

draft is credited.

4. In respect of purchase of units with amount equal to or more than

Rs. 2 lakhs, irrespective of the time of receipt of application, the

closing NAV of the day on which the funds are available for

utilization shall be applicable.

For allotment of units in respect of purchase in the Scheme under Pt.

(4) above, it shall be ensured that:

i. Application is received before the applicable cut-off time

ii. Funds for the entire amount of subscription/purchase as per the

application are credited to the bank account of the Scheme

before the cut-off time.

iii. The funds are available for utilization before the cut-off time

without availing any credit facility whether intra-day or otherwise,

by the Scheme.

For allotment of units in respect of switch-in to the Scheme under Pt.

(4) above from other schemes, it shall be ensured that:

i. Application for switch-in is received before the applicable cut-off

time.



switch-in request are credited to the bank account of the Scheme


iii. The funds are available for utilization before the cut-off time

without availing any credit facility whether intra-day or otherwise,

by the Scheme.

Redemptions including Switch - outs:


respect of Repurchase of units:

a. where the application received upto 3.00 pm – closing NAV of the

day of receipt of application; and

b. an application received after 3.00 pm – closing NAV of the next

Business Day.

The above mentioned cut off timing shall also be applicable to

transactions through the online trading platform.

In case of Transaction through Stock Exchange Infrastructure, the

Date of Acceptance will be reckoned as per the date & time; the

transaction is entered in stock exchange’s infrastructure for which a

system generated confirmation slip will be issued to the investor.

Where can the

applications for

purchase/redemption

switches be submitted?


Minimum amount for

purchase/redemption/s

witches

Minimum amount for purchase/Switch in

Rs. 5,000 and in multiples of Re 1/- thereafter



Minimum Redemption Amount/Switch Out

There will be no minimum redemption criterion. The Redemption /

Switch-out would be permitted to the extent of credit balance in the

Unit holder’s account of the Plan(s) / Option(s) of the Scheme

(subject to completion of Lock-in period or release of pledge / lien or

other encumbrances). The Redemption / Switch-out request can be

made by specifying the rupee amount or by specifying the number of

Units of the respective Plan(s) / Option(s) to be redeemed. In case a

Redemption / Switch-out request received is for both, a specified

rupee amount and a specified number of Units of the respective

Plan(s)/ Option(s), the specified number of Units will be considered the

definitive request. In case the value / number of available units held in

the Unit holder’s folio / account under the Plan / Option of the

Scheme is less than the amount / number of units specified in the

redemption / switch-out request, then the transaction shall be treated

as an all units redemption and the entire balance of available Units in

the folio / account of the Unit holder shall be redeemed.

In case of Units held in dematerialized mode, the Unit Holder can give

a request for Redemption only in number of Units which can be

fractional units also. Depository participants of registered Depositories

can process only redemption request of units held in demat form.

The AMC/ Trustee reserves the right to change/ modify the terms of

minimum redemption amount/switch-out provision offered under the

Scheme of the Fund

Minimum balance to be Currently, there is no minimum balance requirement.


maintained and

consequences of non-

maintenance.

However, the AMC / Trustee may decide to introduce minimum

balance requirements later, if they so deem fit. In such case, in the

event of non-maintenance of minimum balance for any particular

situations, the Units may be compulsorily redeemed.

In case balance in the account of the Unit holder does not cover the

amount of Redemption request, then the Mutual Fund is authorized to

redeem all the Units in the folio and send the Redemption proceeds

to the Unit holder.

Special Products

available

SYSTEMATIC INVESTMENT Plan (SIP)

Unit holder can enroll for the SIP facility by submitting duly completed

Enrolment Form at the Official Point(s) of Acceptance. An Investor

shall have the option of choosing any date of the Month as his SIP

date other than 29th, 30th, or 31st of a month. Minimum amount and

minimum installments for monthly and yearly frequency under SIP

Facility is as follows:

Frequency

under SIP Facility

Minimum

Installments

Minimum SIP amount

Monthly

6 Installments Rs. 1,000/- and in

multiple of Re. 1/-

Yearly 3 Installments Rs. 12,000/- and in

multiple of Re. 1/-

If the SIP period is not specified by the unit holder then the SIP

enrolment will be deemed to be for perpetuity and processed

accordingly.

In case of SIP investments, where the entire installment amount is not

available, the SIP for that month would be rejected. Allocation to a

particular scheme or pro – rata allocation to schemes will not be

carried out.

i. SIP through post-dated cheques

The date of the first cheque shall be the same as the date of the

application while the remaining cheques shall be postdated

cheques which shall be dated uniformly. Investors can invest in SIP

by providing post-dated cheques to Official Point(s) of

Acceptance. An Investor is eligible to issue only one cheque for

each month in the same SIP enrolment form. All SIP cheques should

be of the same amount and same date option. Cheques should be

drawn in favour of the Fund and “A/c Payee only”. A Letter will be

forwarded to the Investor on successful registration of SIP. The Post

Dated cheques will be presented on the dates mentioned on the

cheque and subject to realization of the cheque.

ii. SIP through National Automated Clearing House (NACH)

Platform/Direct Debit facility

Investors / Unit holders may enroll for SIP Direct Debit Facility

available with specified Banks / Branches. In order to enroll for SIP

Direct Debit Facility, an investor must fill-up the Application Form for

SIP Direct Debit facility.

In case of SIP with payment mode as Direct Debit, Investors shall be

required to submit a cancelled cheque or a photocopy of a

cheque of the bank account for which the debit mandate is

provided with first installment through cheque. The SIP facility will

also be available through standing instructions/direct debit given

by the investor (with all payment installments being made through

standing instructions/direct debit). However, the SIP facility with

direct debit will be available through selected Banks. The Asset


Management Company reserves the right to add/modify/delete

from the list of banks through whom such facility will be available to

the investors.

The unit holders can also make payment of SIP instalments through

NACH facility. NACH is a centralized system, launched by National

Payments Corporation of India (NPCI) with an aim to consolidate

multiple NACH mandates. This facility will enable the unit holders of

the Fund to make SIP investments through NACH by filling up the SIP

Registration cum mandate form. A Unique number will be allotted

to every mandate registered under NACH called as Unique

Mandate Reference Number (“UMRN”) which can be used for SIP

transactions. The NACH facility shall be available subject to terms

and conditions contained in the SIP registration Mandate Form and

as prescribed by NPCI from time to time.

All SIP cheques/payment instructions should be of the same amount

and same date (excluding first cheque). However, there should be a

gap of 30 days between first SIP Installment and the second

installment in case of SIP started during ongoing offer.

Investors will have the right to discontinue the SIP facility at any time

by sending a written request to any of the Official Point(s) of

Acceptance. Notice of such discontinuance should be received at

least 20 days prior to the due date of the next debit. On receipt of

such request, the SIP facility will be terminated. It is clarified that if the

Fund fails to get the proceeds from three Installments out of a

continuous series of Installments submitted at the time of initiating a

SIP, the SIP is deemed as discontinued.

Units will be allotted at the Applicable NAV of the respective dates on

which the investments are sought to be made. In case the date falls

on a Holiday or falls during a Book Closure period, the immediate next

Business Day will be considered for this purpose

An extension of an existing SIP will be treated as a new SIP on the date

of such application, and all the above conditions need to be met

with.

The Load structure prevailing at the time of submission of the SIP

application (whether fresh or extension) will apply for all the

Installments indicated in such application.

The installment after the NFO period should be dated after the date

of declaration of first NAV. Any payments intended for the interim

period will not be processed and will be treated void.

The AMC has the authority to make available SIP by way of a salary

savings scheme for a group of employees through an arrangement

with their employers.

For applicable Load on Purchases through SIP, please refer paragraph

‘Load Structure’ given in the document.

The AMC reserves the right to change / modify Load structure and

other terms and conditions under the SIP prospectively at a future

date. Please refer to the SIP Enrolment Form for terms & conditions

before enrolment.

Systematic Investment Plan (SIP) Switch Facility:

Unit holders having registered SIP in the specified scheme(s) of the

Fund can use SIP Switch Facility to terminate SIP in the existing scheme


and initiate SIP in another specified scheme.

SIP Switch Facility shall be available to unit holders under all open

ended schemes of the Fund except for Axis Liquid Fund, Axis

Overnight Fund, Axis Gold ETF, Axis Nifty ETF and Axis Children’s Gift

Fund.

The terms and conditions of SIP Switch Facility are as below:

1. SIP Switch Facility can be availed by unit holders only after

completion of minimum installments specified for SIP registration in

the Switch-out (existing) scheme.

2. SIP Switch Facility will be considered as termination of SIP in Switch-

out scheme and subscription of SIP in Switch-in scheme.

3. SIP in Switch-in scheme will be subject to the terms of offering

specified in the SID of Switch-in scheme.

4. SIP registration end date should ensure compliance of minimum

SIP installments prescribed in Switch-in scheme.

5. SIP Switch Facility is available for changing SIP investment

mandate from one scheme to another specified scheme. The

same is also available for switch between Plans / Options offered

under same scheme. Further, the amount of installment, date and

frequency of SIP and SIP end date of Switch-out scheme shall

remain same as under Switch-in scheme.

6. The allotment of units of Switch-in scheme shall be in the same

folio.

7. SIP Switch Facility is not available for SIP subscribed with post-

dated cheques.

8. Investors will have the option of changing the distributor code

from direct to regular/ regular to direct.

9. Unit holder must submit request for SIP Switch at least 21 days

before the SIP due date.

Multiple SIPs Registration Mandate

Unitholder can enroll multiple SIPs in different schemes by submitting

one single application form/ payment instruction. All other terms and

conditions applicable to SIP Facility shall be applicable for the facility.

Systematic Investment Plan (SIP) Top-Up Facility

The Facility enables unitholders to increase the SIP installment amount

at pre-defined intervals by a fixed amount or anytime by a specified

amount as per the request (in case of ‘As & When frequency’).

The terms and conditions of the Facility are as follows:

1. Top-Up Amount: The minimum amount of Top-Up shall be Rs. 500/-

and in multiple of Re. 1/-. In case of discrepancy in the Top-Up

amount, SIP will be registered without Top-Up Facility.

2. Top-Up facility is available for SIP registered with Monthly

frequency only.

3. Top-Up Frequency: Top-Up frequency is available only on ‘Half

Yearly’, ‘Yearly’ and ‘As & When frequency’. In case the Top-Up

frequency is not specified / is not legible, the default frequency

will be ‘Yearly’, provided Top-Up amount is mentioned clearly.

4. The Facility shall be available for SIP Investments through

Electronic Debit arrangement/ NACH (National Automated

Clearing House) or as may be specified by AMC.

5. The Facility can be availed by filling up prescribed form at time of

SIP Facility enrolment. Existing SIPs cannot be converted into the

Facility.

6. The application form for availing the Facility should be submitted

21 days before the first SIP installment date.


7. The gap between SIP registration and first Top-Up request under

'As & When' frequency and two instructions under ‘As & When’

frequency should be at least 3 months.

8. The Facility shall continue till the end date of the SIP. The Facility

can be discontinued only by cancelling the SIP.

9. All other terms and conditions applicable to SIP Facility shall be

applicable for the Facility.

Micro Systematic Investment Plan

Systematic Investment Plans (SIPs) where aggregate of installments in

a financial year i.e. April to March does not exceed Rs. 50,000/- (per

financial year per investor).

The Unit holders will have the facility of Micro SIP under the current SIP

facility. The key features of the facility are as under:

1. Minimum amount per SIP installment is Rs. 100/- and in multiples of

Re. 1 thereafter.

2. The minimum redemption amount will be Rs. 300/-.

3. Where the Mutual Fund fails to get the proceeds from six

Installments out of a continuous series of Installments submitted at

the time of initiating a SIP (Subject to a minimum under SIP i.e. 30

months), the SIP may be discontinued by the AMC.

4. All other features / guidelines of Systematic Investment Plan with

reference to Standing Instruction / Direct Debit will be equally

applicable for a Micro SIP.

Investors with PAN are not eligible for simplified KYC procedure for

Micro SIP investments – details of which have been provided in the

Statement of Additional Information.

For details, investors are requested to refer to the Micro SIP application

form.

PURCHASE / REDEMPTION OF UNITS THROUGH STOCK EXCHANGE

INFRASTRUCTURE

Investors can subscribe to the Units of Axis Mutual Fund through the

mutual fund trading platforms of the Bombay Stock Exchange (“BSE”)

and National Stock Exchange (“NSE”) – with NSDL and CDSL as

depositories for such units of the mutual fund.

NSE has introduced Mutual Fund Service System (MFSS) Platform and

BSE has introduced BSE StAR MF Platform.

The following are the salient features of the MFSS / BSE StAR MF

Platform:

1. The facility i.e. purchase/redemption/SIP (Systematic Investment

Plan) is available for both existing and new investors.

2. The Investors will be eligible to purchase/redeem units of the

Scheme.

3. Maximum subscription:

The investors can purchase units of the Scheme by using NSE MFSS/

BSE StAR Platform for transaction value less than Rs. 1 Crore.

4. List of additional Official Point of Acceptance

The following shall be the additional Official Point of Acceptance

of Transactions for the Scheme:

All trading members of BSE & NSE who are registered with AMFI as

Mutual Fund Advisors and also registered with BSE & / or NSE as

Participants ("AMFI registered stock exchange brokers") will be

eligible to offer this facility to investors and shall be treated as

Official Point of Acceptance.


Units of mutual fund schemes shall be permitted to be transacted

through clearing members of the registered Stock Exchanges.

Further, the Depository Participants of registered Depositories are

permitted to process only redemption request of units held in

demat form.

Clearing members and Depository participants will be considered

as Official Points of Acceptance of Axis Mutual Fund and

conditions stipulated in SEBI circular no. SEBI/IMD/CIR

No.11/183204/2009 dated November 13, 2009 for stock brokers viz.

AMFI /NISM certification, code of conduct prescribed by SEBI for

Intermediaries of Mutual Fund, shall be applicable for such Clearing

members and Depository participants as well.

5. The units of the Scheme are not listed on BSE & NSE and the same

cannot be traded on the Stock Exchange. The window for

purchase/redemption of units on MFSS/ BSE StAR Platform will be

available between 9 a.m. and 3 p.m. or such other timings as may

be decided.

6. Transactions only in demat mode will be currently permitted

through MFSS / BSE StAR MF Platform

7. Investors will be able to purchase/redeem units in the scheme in

the following manner:

(i) Investors shall receive redemption amount (if units are

redeemed) and units (if units are purchased) through broker/

clearing member's pool account. Axis Asset Management

Company Ltd. (the "AMC")/Axis Mutual Fund (the "Mutual

Fund") shall pay proceeds to the broker/clearing member (in

case of redemption) and broker/clearing member in turn to the

respective investor and similarly units shall be credited by the

AMC/ Mutual Fund into broker/clearing member's pool

account (in case of purchase) and broker/clearing member in

turn shall credit the units to the respective investor's demat

account.

(ii) Payment of redemption proceeds to the broker/clearing

members by AMC/Mutual Fund shall discharge AMC/Mutual

Fund of its obligation of payment to individual investor. Similarly,

in case of purchase of units, crediting units into broker/clearing

member pool account shall discharge AMC/Mutual Fund of its

obligation to allot units to individual investor.

8. Applications for purchase/redemption of units which are

incomplete /invalid are liable to be rejected.

9. For all the transactions done through these platforms, separate

Folio. No. shall be allotted to the existing and the new investors. The

bank a/c number, address, nomination details etc. shall be the

same as per the Demat account of the investor. In case of non-

financial requests/applications such as change of address, change

of bank details, etc. for units held in demat mode investors should

approach the respective Depository Participant(s) and OPAT of

AMC for units held in physical mode.

10. Investors will have to comply with Know Your Customer (KYC)

norms as prescribed by BSE/NSE/CDSL/ NSDL and Axis Mutual Fund

to participate in this facility.

11. Investors should get in touch with Investor Service Centres

(ISCs) of Axis Mutual Fund for further details.

Transaction routed through Distributor/ SEBI Registered Investment

Advisor

SEBI circular no. CIR/MRD/DSA/32/2013 dated October 4, 2013 and

circular no. CIR/MRD/DSA/334 dated December 9, 2014, has

permitted Mutual Fund Distributors (“MF Distributors”) and SEBI circular


no. SEBI/HO/MRD/DSA/CIR/P/2016/113 dated October 19, 2016

permitted SEBI Registered Investment Advisors (“RIAs”) to use

recognized Stock Exchange infrastructure to purchase/redeem units

directly from Mutual Fund/AMC on behalf of their clients.

MF Distributor registered with AMFI or RIAs, will be eligible to use NMF-II

platform of NSE (in addition to other intermediaries) and / or of BSE

StAR MF platform of BSE to purchase and redeem units of schemes of

the Fund.

In addition to the guidelines specified for transacting through

MFSS/BSE StAR MF Platform above, following guidelines shall be

applicable for transactions executed through MF Distributors/ RIAs on

NMF-II / BSE StAR MF Platform:

1. MF distributors/RIAs shall not handle pay out/pay in of funds as

well as units on behalf of investor. Pay in will be directly received

by recognized clearing corporation and payout will be directly

made to investor account. In the same manner, units shall be

credited and debited directly from the demat account of

investors.

2. Transactions only in physical (non-demat) transactions will be

permitted through NMF-II / BSE StAR MF Platform.

The facility of transacting in mutual fund schemes through stock

exchange infrastructure is available subject to such operating

guidelines, terms and conditions as may be prescribed by the

respective Stock Exchanges from time to time.





SYSTEMATIC TRANSFER PLAN (STP)

Investors can opt for the Systematic Transfer Plan by investing a

lumpsum amount in one scheme of the Fund and providing a

standing instruction to transfer sums at following intervals into any

other scheme (as may be permitted by the Scheme Information

Document of the respective schemes) of the Fund.

STP

Frequency Cycle Date

Minimum

Amount* (in Rs.)

Minimum

Installment

Daily Monday To

Friday

1,000/- 6

Weekly Monday To

Friday

1,000/- 6

Fortnightly Alternate

Wednesday

1,000/- 6

Monthly 1st, 7th, 10th, 15th

or 25th

1,000/- 6

Quarterly 1st, 7th, 10th, 15th

or 25th

3,000/- 2

In case Day of Transfer has not been indicated under Weekly

frequency, Wednesday shall be treated as Default day. Further, in

case of Monthly and Quarterly Frequency, if the STP date and

Frequency has not been indicated, Monthly frequency shall be

treated as Default frequency and 10th shall be treated as Default

Date.

In case none of the frequencies have been selected then Monthly


frequency shall be treated as Default frequency and 10th shall be

treated as Default Date.

Investors could also opt for STP from an existing account by quoting

their account / folio number. A minimum period of 7 days shall be

required for registration under STP.

Units will be allotted/ redeemed at the applicable NAV of the

respective dates of the Scheme in which such

investments/withdrawals are sought from the Scheme.

The requests for discontinuation of STP shall be subject to an advance

notice of 15 days before the next due date for STP and it will terminate

automatically if all Units are liquidated or withdrawn from the account

or upon the Funds’ receipt of notification of death or incapacity of

the Unit holder.

The AMC reserves the right to introduce STPs at any other frequencies

or on any other dates as the AMC may feel appropriate from time to

time. In the event that such a day is a Holiday, the transfer would be

affected on the next Business Day.

The STP may be terminated on a written notice of 7 days by a Unit

holder of the Scheme and it will terminate automatically if all Units are

liquidated or withdrawn from the account or upon the Funds’ receipt

of notification of death or incapacity of the Unit holder.

Further, in case of a last STP, where the balance amount is less than

the STP amount, the entire amount will be transferred to the transferee

scheme.

For further details/ clarifications investors may contact the distributor(s)

or the ISCs of the AMC.

CAPITAL APPRECIATION SYSTEMATIC TRANSFER PLAN (CAPSTP)

Under this facility, the investors can opt for the Systematic Transfer

Plan by investing a lump sum amount in one scheme of the fund and

providing a standing instruction to transfer capital appreciation at

regular intervals - Weekly, Monthly or Quarterly into any other scheme

(as maybe permitted by the Scheme Information Document of the

respective schemes) of Axis Mutual Fund.

The capital appreciation, if any, will be calculated from the enrolment

date of the CapSTP under the folio, till the first transfer date.

Subsequent capital appreciation, if any, will be the capital

appreciation between the previous CapSTP date (where CapSTP has

been processed and paid) and the next CapSTP date

There are three options available under CapSTP viz. Weekly, Monthly

and Quarterly option, the details of which are given below:

CapSTP


Minimum

Amount* (in

Rs.)

Minimum

Installment

Weekly Monday To Friday 500/- 6

Monthly 1st, 7th, 10th, 15th or

25th

500/- 6

Quarterly 1st, 7th, 10th, 15th or

25th

1,000/- 2

The provision of ‘Minimum Redemption Amount’ as specified in the


Scheme Information Document of the respective designated

Transferor Schemes and ‘Minimum Application Amount’ specified in

the Scheme Information Document of the respective designated

Transferee Schemes will not be applicable for CapSTP.

Unit holders are required to fill in either the number of installments or

the enrolment period in the enrolment Form, failing which the Form is

liable to be rejected.

In case, the Enrolment Period has been filled, but the CapSTP Date

and/or Frequency (Monthly/ Quarterly) has not been indicated,

Monthly frequency shall be treated as Default frequency and 10th

shall be treated as Default Date. In case of weekly frequency,

Wednesday shall be treated as Default day.

In case none of the frequency is selected then Monthly frequency

shall be treated as Default frequency and 10th shall be treated as

Default Date.

The application for CapSTP enrolment - Monthly & Quarterly

frequency should be submitted at least 7 working days and not more

than 90 days before the desired commencement date.

In respect of CapSTP, the Load Structure prevalent at the time of

enrolment shall govern the investors during the tenure of the CapSTP.

A minimum period of 7 working days shall be required for registration

under CapSTP. Units will be allotted/redeemed at the applicable NAV

(of the respective date(s)) of the Scheme from/to which such

withdrawals/investments are being made.

The AMC reserves the right to introduce CapSTPs at any other

frequencies or on any other dates as the AMC may feel appropriate

from time to time. In the event that such a day is a Holiday, the

transfer would be affected on the next Business Day.

The requests for discontinuation of CapSTP shall be subject to an

advance notice of 15 days before the next due date for CapSTP.

CapSTP will terminate automatically if all Units are liquidated or

withdrawn from the account or upon the Funds’ receipt of notification

of death or incapacity of the Unit holder. Further, in case where the

balance amount in a folio is less than the CapSTP amount, the entire

amount will be transferred to the transferee scheme.

FLEX - SYSTEMATIC INVESTMENT PLAN/ SYSTEMATIC TRANSFER PLAN

("Flex SIP/ Flex STP")

Terms and conditions of Flex SIP/STP are as follows:

1. Flex SIP is a facility wherein an investor can opt to invest variable

amount linked to the value of his investments in any of the existing

open ended scheme(s) of Axis Mutual Fund (“Investee scheme”),

on pre-determined date. This facility allows investors to take

advantage of market movements by investing higher when the

markets are low and vice-versa.

2. Flex STP is a facility wherein an investor under any of the existing

open ended scheme(s) of Axis Mutual Fund can opt to transfer

variable amount linked to value of his investments, on

predetermined date from designated open-ended Scheme(s) of

Axis Mutual Fund ("Transferor Scheme") to the Growth Option of

designated open-ended Scheme(s) ("Transferee Scheme").

3. A single Flex SIP/STP Enrolment Form can be filled for investment/


transfer into one Scheme/Plan/Option only.

4. In case of valid enrolment forms received, indicating choice of

option other than the growth option in the Investee / Transferee

Scheme, it will be deemed as the growth option in the Investee /

Transferee Scheme and processed accordingly.

5. In case of Flex STP, unit holders' details and mode of holding

(single, jointly, anyone or survivor) in the Transferee Scheme will be

as per the existing folio number of the Transferor Scheme. Units will

be allotted under the same folio number. Unitholders' name

should match with the details in the existing folio number, failing

which the enrolment form is liable to be rejected.


under Flex STP:

Frequency under Flex-STP

Facility

Minimum

Installments

Minimum Flex-STP

amount

Monthly (1st,

7th,10th,15th or 25th)

6 Rs. 1,000/- and in

multiple of Rs. 1/-

Quarterly (1st,

7th,10th,15th or 25th)

2 Rs. 3,000/- and in

multiple of Rs. 1/-


under Flex SIP:

Frequency

under Flex-

SIP Facility

Minimum

Installments

Minimum Flex-SIP

amount

Monthly 12 Installments for

all schemes

Rs. 1,000/- and in

multiple of Rs. 1/-

Yearly 3 Installments for

all schemes

Rs. 12,000/- and in

multiple of Rs. 1/-



Under the Flex STP – (as per the Frequency) unit holders will be

eligible to transfer fixed amount to be transferred per installment

OR the amount as determined by the following formula whichever

is higher:

Fixed installment amount or (number of installments including the

current installment X fixed amount to be transferred per

installment) - market value of the investments through Flex STP in

the Transferee Scheme on the date of transfer whichever is Higher

In case of Flex STP, if the amount (as specified by the formula) to

be transferred under STP is not available in the Transferor Scheme

in the unit holder's account, the residual amount will be transferred

to the Transferee Scheme and Flex STP will be closed.


Under the Flex SIP – (as per the Frequency) unit holders will be

eligible to invest fixed amount to be invested per installment OR

the amount as determined by the following formula whichever is

higher:


current installment X fixed amount to be invested per installment) -

market value of the investments through Flex SIP* in the Investee

Scheme whichever is Higher


*The installment value of FLEX SIP will be determined on the basis

of NAV on 10th day (T-10) before the installment date. If T-10th day

falls on a Non-Business day or falls during a book closure period,

then valuation will be done on T-11th day.

In case of Flex SIP, the required amount is not available in the

designated bank account and the debit instruction fails then Flex

SIP will be stopped.

9. If the NAV falls continuously throughout the Flex STP period,

number of installments may be less than those mentioned on

application form.

10. The first Flex SIP/STP installment will be processed for the fixed

installment amount specified by the unit holder at the time of

enrolment. From the second Flex SIP/STP instalment onwards, the

investment/ transfer amount shall be computed as per formula

stated above.

11. In case the date of investment/ transfer falls on a Non-Business

Day or falls during a book closure period, the immediate next

Business Day will be considered for the purpose of determining the

applicable NAV.

12. Once the Flex SIP/ STP have been stopped the unit holder needs

to provide a new request to start Flex SIP/ STP.

13. The redemption/ switch-out of units allotted in the Investee/

Transferee Scheme shall be processed on First in First out (FIFO)

basis. If there are other financial transaction (purchase,

redemption or switch) processed in the Investee/ Transferee

scheme during the tenure of Flex SIP/ STP, the Flex SIP / STP will be

processed as normal SIP / STP for the rest of the installments for a

fixed amount.

14. In respect of Flex SIP / STP enrollments made in any of the existing

open ended Scheme(s), the Load Structure prevalent at the time

of enrollment shall be applicable to the investors during the tenure

of the Flex SIP / STP. Load structure for investments through Flex SIP

/ STP to the Schemes eligible for this facility:

a. Exit Load of the Transferor Scheme(s)

The amount transferred under the Flex STP from the Transferor

Scheme to the Transferee Scheme shall be affected by

switching units of Transferor Scheme at applicable NAV, after

payment of exit load, if any, and subscribing to the units of the

Transferee Scheme at Applicable NAV.

b. Exit Load of the Investee /Transferee Scheme(s)

Applicable Exit Load, if any, in the Investee / Transferee

Schemes Plan /Option as on the date of enrollment will also be

levied. For Scheme load structure please refer to SID/ KIM or

contact the nearest Investor Service Centre (ISC) of Axis

Mutual Fund or visit our website www.axismf.com.

15. Flex STP will be automatically terminated if all units are

liquidated or withdrawn from the Transferor Scheme or pledged or

upon receipt of intimation of death of the unit holder.

16. The provision of 'Minimum Redemption Amount' as specified in


Transferor Scheme(s) and 'Minimum Application Amount' specified

in the Scheme Information Document of the respective

designated Transferee Scheme(s) will not be applicable for Flex

SIP/ STP.

17. The request for Flex SIP/ STP should be submitted at least 25



calendar days before the first SIP and at least 7 calendar days

before STP date.

18. Unit holders have a right to discontinue the Flex SIP/ STP facility at

any time by sending a written request to the ISC. On receipt of

such request, the Flex SIP / STP facility will be terminated within 20

working days.

19. All other terms & conditions of Systematic Investment Plan and

Systematic Transfer Plan are applicable to Flex SIP and STP

respectively.

Illustration: Calculation of Flex STP

Flex SIP/ STP that transfers Rs. 3,000/- every month from the Debt Fund

to an Equity Fund.

Transferor Scheme: Axis Credit Risk

Transferee Scheme: Axis Bluechip Fund - Growth

Option

Date & Frequency of Flex STP: 10th date - Monthly Interval

Amount of Transfer per Installment Rs 3,000/-

Number of Installments: 12

Enrolment Period: January - December 2013

Calculation of Flex STP instalment amount on the date of the fourth

instalment i.e. April 10, 2013

i. Total units allotted up to the date of last installment i.e. March

10, 2013 is assumed as 822.73;

ii. NAV of AXIS Equity Fund - Growth Option on April 10, 2013 is

assumed as Rs. 9/- per unit;

iii. Hence the market value of the investment in the Investee /

Transferee Scheme on the date of investment/ transfer is Rs. 7,

404.55[822.73X 9].

The installment amount will be calculated as follows:

a) Fixed amount specified at the time of enrolment:

Rs.3,000/-

Or

b) As determined by the formula:

(3,000 X 4) – 7,404.55= Rs. 4,595/-

a) or b) Whichever is Higher.

Hence, on April 10, 2013, the installment amount to be transferred to

the Transferee Scheme will be Rs. 4,595/-

Illustration: Calculation of Flex SIP

Investee Scheme: Axis Bluechip Fund - Growth

Option

Date & Frequency of Flex SIP: 10th date - Monthly Interval

Amount per Installment Rs 3,000/-



Calculation of Flex SIP instalment amount for the 4th instalment i.e.

April 10, 2013

i. Total units allotted up to the date of last installment i.e. March

10, 2013 is assumed as 822.73;

ii. NAV of Axis Bluechip Fund - Growth Option on T-10th day* is


iii. Hence the market value of the investment in the Investee

Scheme on T-10th day is Rs. 7,404.55[822.73X 9].


a. Fixed amount specified at the time of enrolment:


Rs.3,000/-

Or

b. As determined by the formula:

(3,000 X 4) – 7,404.55= Rs. 4,595/-

a) or b) Whichever is Higher.

Hence, on April 10, 2013, the installment amount to be invested to the

Investee Scheme will be Rs. 4,595/-

*The installment value of Flex SIP will be determined on the basis of

NAV on 10th day (T-10) before the installment date. In the above

example T-10th day will be 31st March 2013

Investors are advised to read the SID/ KIM of the Transferee Scheme

and Statement of Additional Information carefully before investing.

The SID/ KIM of the respective Scheme(s) are available with the ISCs

of Axis Mutual Fund, brokers/distributors and also displayed on the Axis

Mutual Fund website i.e. www.axismf.com

SYSTEMATIC WITHDRAWAL PLAN (SWP)

Existing Unitholders have the benefit of availing the choice of SWP on

pre-specified dates. The SWP allows the Unitholder to withdraw a

specified sum of money each month/quarter from his investments in

the Scheme.

The amount thus withdrawn by redemption will be converted into

Units at Applicable NAV based prices and the number of Units so

arrived at will be subtracted from the Units balance to the credit of

that Unitholder.

Unitholders may start the facility/change the amount of withdrawals

or the period of withdrawals by giving a 15 days written

intimation/notice. The SWP may be terminated by a Unitholder by

giving 15 days written intimation/notice and it will terminate

automatically if all the Units are liquidated or withdrawn from the

account or the holdings fall below the SWP installment amount.

There are four options available under SWP viz. Monthly option,

quarterly option, Half Yearly and Yearly option. The details of which

are given below:

Monthly

Option

Quarterly

Option

Half

Yearly

Option

Yearly

Option

Minimum value of

SWP

Rs. 1,000/-

Additional

amount in

multiples of

Re.1

Dates of SWP

Installment

1/5/10/15/25*

Minimum No of

SWP

Six Four Four Two

* In the event that such a day is a holiday, the withdrawals would be

affected on the next business day.

Contingent Deferred Sales Charge (CDSC)/Exit Load, if any, is

applicable to SWP.

The AMC reserves the right to accept SWP applications of different

amounts, dates and frequency.

Unitholders can enroll themselves for the facility by submitting the duly


completed Systematic Withdrawal enrolment Form at any of the

Investor Service Centres(ISCs)/Official Points of Acceptance (OPAs).

The AMC / Trustee reserve the right to change / modify the terms and

conditions under the SWP prospectively at a future date.

Investments through systematic routes:

(a) In case of Systematic Investment Plan (SIP) / Systematic Transfer

Plan (STP) etc. registered prior to the Effective Date without any

distributor code under the Regular Plan, installments falling on or

after the Effective Dates will automatically be processed under

the Direct Plan.

(b) Investors who had registered for Systematic Investment Plan

facility prior to the Effective Date with distributor code and wish to

invest their future installments into the Direct Plan, shall make a

written request to the Fund in this behalf. The Fund will take at

least 15 days to process such requests. Intervening installments will

continue in the Regular Plan.

In case of (a) and (b) above, the terms and conditions of the

existing registered enrolment shall continue to apply.

In case of Systematic Transfer Facilities (registered with Distributor

Code) were registered under the Regular Plan prior to the

Effective Date the future installments shall continue under the

Regular Plan.

In case such investors wish to invest under the Direct Plan through

these facilities, they would have to cancel their existing enrolments

and register afresh for such facilities.

SWITCHING OPTIONS

(a) Inter - Scheme Switching option

Unit holders under the Scheme have the option to Switch part or all of

their Unit holdings in the Scheme to any other scheme offered by the

Mutual Fund from time to time. The Mutual Fund also provides the

Investors the flexibility to Switch their investments from any other

scheme(s) / plan (s) offered by the Mutual Fund to this Scheme. This

option will be useful to Unit holders who wish to alter the allocation of

their investment among the scheme(s) / plan(s) of the Mutual Fund in

order to meet their changed investment needs.

The Switch will be effected by way of a Redemption of Units from the

Scheme at Applicable NAV, subject to Exit Load, if any and

reinvestment of the Redemption proceeds into another scheme

offered by the Mutual Fund at Applicable NAV and accordingly the

Switch must comply with the Redemption rules of switch out Scheme

and the Subscription rules of the switch in scheme.

(b) Intra -Scheme Switching option

Unit holders under the Scheme have the option to Switch their Unit

holding from one plan/option to another plan/option (i.e. Axis Triple

Advantage Fund – Direct Plan and Growth to Dividend and vice-a-

versa). The Switches would be done at the Applicable NAV based

prices and the difference between the NAVs of the two options will

be reflected in the number of Unit allotted.

Switching shall be subject to the applicable “Cut off time and

Applicable NAV” stated elsewhere in the Scheme Information

Document. In case of “Switch” transactions from one scheme to

another, the allocation shall be in line with Redemption payouts.


TRANSACTION ON FAX

In order to facilitate quick processing of transaction and / or

instruction of investment of Investor the AMC/ Trustee/ Mutual Fund

may (at its sole discretion and without being obliged in any manner to

do so and without being responsible and/ or liable in any manner

whatsoever) accept and process any application, supporting

documents and / or instructions submitted by an Investor / Unit holder

by facsimile (Fax Submission) and the Investor / Unit holder voluntarily

and with full knowledge takes and assumes any and all risk associated

therewith. The AMC / Trustee/ Mutual Fund shall have no obligation to

check or verify the authenticity or accuracy of Fax Submission

purporting to have been sent by the Investor and may act thereon as

if same has been duly given by the Investor. In all cases the Investor

will have to immediately submit the original documents/ instruction to

AMC/ Mutual Fund.

ONLINE TRANSACTIONS

Axis Mutual Fund will allow Transactions including by way of Lumpsum

Purchase/ Redemption / Switch of Units by electronic mode through

the AMC web–site/Mobile application. The Subscription proceeds,

when invested through this mode, are by way of direct debits to the

designated bank through payment gateway. The Redemption

proceeds, (subject to deduction of tax at source, if any) through this

mode, are directly credited to the bank account of the Investors who

have an account at the designated banks with whom the AMC has

made arrangements from time to time or through NEFT/RTGS or

through cheque/Payorder/Demand draft issuance. The AMC will

have right to modify the procedure of transaction processing without

any prior intimation to the Investor.

Investment amount through this facility may be restricted by the AMC

from time to time in line with prudent risk management requirements

and to protect the overall interest of the Investors.

For details of the facility, investors are requested to refer to the

website of the AMC.

TRANSACTIONS THROUGH ELECTRONIC PLATFORM(S) OF KARVY

FINTECH PVT. LTD.

Investors will be allowed to transact through www.karvymfs.com, an

electronic platform provided by M/s. Karvy Fintech Pvt. Ltd. (‘Karvy’),

Registrar & Transfer Agent, in Schemes of Axis Mutual Fund (‘Fund’)

(except Axis Gold ETF and Axis Nifty ETF). The facility will also be

available through mobile application of Karvy.

The uniform cut off time as prescribed under the SEBI (Mutual Funds)

Regulations, 1996 and as mentioned in SID and KIM of the Scheme will

be applicable for transactions received through the above electronic

platform and the time of receipt of transaction recorded on the

server(s) of Karvy will be reckoned as the time for the purpose of

determining applicability of NAV, subject to credit of funds to bank

account of scheme, wherever applicable.

The facility is subject to operating guidelines, terms and conditions as

may be prescribed by Karvy or as may be specified by Axis Asset

Management Company Ltd. from time to time. For operating

guidelines and terms and conditions , investors are requested to visit

www.karvymfs.com.

Time of receipt of transaction recorded on the server(s) of Karvy will

continue to be reckoned for electronic transactions received through

http://www.karvymfs.com/


AMC website/ Distributor website/ applications etc subject to credit of

funds to bank account of scheme, wherever applicable.

ONLINE SCHEDULE TRANSACTION FACILITY (‘THE OST FACILITY’/ ‘THE

FACILITY’):

The OST facility shall enable Unitholders to schedule subscription /

redemption / switch transaction(s) on specified date for specified

amount/ units by giving online instruction.

The terms and conditions of the OST facility shall be as under:

1. The Facility is available to the existing Unitholders of open ended


ETF), subject to completion of lock-in, if any. The Facility is

available only to Individual (including sole proprietor) Unitholders

for units held in / subscription in physical mode.

2. The Facility for subscription transaction would be available to

unitholders after completion of OTM Mandate / Easycall

mandate/ equivalent mandate registration process and as per

limits specified therein.

3. Under the Facility the transaction can be scheduled to be

executed on a specified date which shall be within 30 calendar

days from the date of the instruction. Such specified date shall be

a business day. In case the scheduled transaction date falls on a

non-business day, the transaction will be executed on the

immediately following business day.

4. The Facility shall be available on online transaction platform(s) viz

website of Axis AMC i.e. www.axismf.com. Axis AMC may extend

the Facility to other transaction platforms from time to time, at its

discretion.

5. The scheduled transaction may be cancelled by giving suitable

instruction atleast one calendar day prior to the scheduled

transaction date.

6. The triggered transaction on the scheduled date shall be

considered as time stamped and will be executed on the

specified date at the applicable NAV of the relevant scheme. In

case the specified date happens to be a non-business day in

debt schemes but is a business day in equity schemes, switch-out

from equity schemes will be processed on the specified date,

while the switch-in to debt/liquid schemes will be processed on

the next business day.

7. The scheduled transaction(s) shall be subjected to exit load,

minimum subscription/additional subscription application and

other terms and conditions of the relevant scheme as per SID

applicable on the specified date.

8. The scheduled transaction shall be liable to be rejected if

sufficient amount is not available for subscription or sufficient

number of units / amount is not available for redemption.

9. Redemption transactions will not be executed in case units are

pledged or where lien is marked on units, at the time of online

instruction / on specified date.

10. Unitholders availing of this facility shall acquaint themselves with

the features of the Scheme, including any modification /

amendments carried out before the specified date.

The Facility is an additional facility provided to the Unitholders to plan

their transactions in schemes using online platforms.

Axis AMC / Trustee reserves the right to change/ modify the terms and

conditions or to make operational rules for operation of the Facility

from time to time.



EASY CALL FACILITY

All individual investors in the scheme applying on “Sole” or “Joint

(Anyone or Survivor)” basis in their own capacity shall be eligible to

avail of Easy Call facilities for permitted transactions inter alia on the

following terms and conditions (“Terms and Conditions” mean the

terms and conditions set out below by which the Facility shall be

used/availed by the Investor/s and shall include all modifications and

supplements made by AMC thereto from time to time).

Axis Mutual Fund will allow transactions including by way of Lumpsum

Purchase/ Redemption / Switch of Units over phone. Initial Investment

has to be through physical mode wherein he has to sign a one time

debit mandate for bank accounts pertaining to designated banks

with which the AMC may have an arrangement. This facility is

extended to the bank with which the Fund would have an

arrangement from time to time. Investment amount may be restricted

by the AMC from time to time in line with prudent risk management

requirements and to protect the overall interest of the Investors.

Investor will be allowed transactions over phone after 30 days from

the date of submission of one time mandate. Investor will not be

permitted to avail the Easy call facility for Redemptions/Switch

transactions if bank mandate is changed with in last 15 days. AMC will


any prior intimation to the Investor. AMC retains the right to maintain

call records of the communication with investors, for lawful purposes.

The AMC has a right to ask such information (Key Information) from

the available data of the Investor/s before allowing him access to

avail the Facility. If for any reason, the AMC is not satisfied with the

replies of the Investor/s, the AMC has at its sole discretion the right of

refusing access without assigning any reasons to the Investor/s.

It is clarified that the Facility is a service provided to the Investor/s and

is offered at the sole discretion of the AMC. The AMC is not bound

and/or obliged in any way to offer this Facility to Investor/s.

The Investor/s shall check his/her account records carefully and

promptly. If the Investor/s believes that there has been a mistake in

any transaction using the Facility, or that unauthorized transaction has

been effected, the Investor/s shall notify the AMC immediately. If the

Investor/s defaults in intimating the discrepancies in the statement

within a period of fifteen days of receipt of the statements, he waives

all his rights to raise the same. By opting for the facility the Investor/s

hereby irrevocably authorizes and instructs the AMC to act on his /her

behalf and to do all such acts as AMC may find necessary to provide

the Facility.

The Investor/s shall at all times be bound by any modifications and/or

variations made to these Terms and Conditions by the AMC at their

sole discretion and without notice to them.

The Investor/s agrees and confirms that the AMC has the right to ask

the Investor/s for an oral or written confirmation of any transaction

request using the Facility and/or any additional information regarding

the Account of the Investor/s.

The Investor/s agrees and confirms that the AMC may at its sole

discretion suspend the Facility in whole or in part at any time without

prior notice.


The Investor/s shall not assign any right or interest or delegate any

obligation arising herein.

The Investor/s shall take responsibility for all the transactions

conducted by using the Facility and will abide by the record of

transactions generated by the AMC. Further, the Investor/s confirms

that such records generated by the AMC shall be conclusive proof

and shall be binding for all purposes and may be used as evidence in

any proceedings and that the investor(s) unconditionally waives all

objections in this behalf.

The Investor/s agree that use of the Facility will be deemed to be an

acceptance of the Terms and Conditions and the Investor/s will

unequivocally be bound by these Terms and Conditions. The Investor

agrees that all calls received shall be eligible for applicable NAV

subject to necessary formalities to be complied by the AMC in case of

transaction through Easy Call Facility on or before the uniform cut off

time.

Requests like change in bank mandate, change of nomination,

change in mode of holding, change of address or such other requests

as the AMC may decide from time to time will not be permitted using

the Easy Call facility.

The investor agrees to indemnify and keep indemnified Axis AMC its

Directors, employees, representatives and service providers of the

AMC, Axis Mutual Fund and Trustees (indemnified parties) from and

against all actions, claims, demands, liabilities, obligations, losses,

damages, costs and expenses of whatever nature (whether actual or

contingent) directly or indirectly suffered or incurred, by the

indemnified parties whatsoever arising from or in connection with the

Facility. The Investor/s shall not hold the AMC liable and shall keep it

indemnified for the following:

1) For any transaction using the Facilities carried out in good faith by

the AMC on instructions of the Investor/s.

2) For any loss or damage incurred or suffered by the Investor/s due

to any error, defect, failure or interruption in the provision of the

Facility.

3) For any negligence / mistake or misconduct by the Investor/s.

4) For any breach or non-compliance by the Investor/s of the

rules/terms and conditions stated in this Document.

5) For accepting instructions given by any one of the Investor/s in

case of joint account/s having mode of operations as ““Anyone

or survivor”.

6) For not carrying out any such instructions where the AMC has

reason to believe (which decision of the AMC the Investor/s shall

not question or dispute) that the instructions given are not genuine

or are otherwise improper, unclear, vague or raise a doubt.

7) For carrying out a transaction after such reasonable verification as

the AMC may deem fit regarding the identity of the Investor/s

MISCELLANEOUS:

1) The Investor/s agrees and understands that while this Facility is

being introduced without any charges being levied; in case

charges are to be levied on a future date he agrees to pay such

charges and nonpayment in such an event can lead to

termination of these services.

2) Any dispute arising out of or in connection with these Terms and

Conditions, will be referred to the arbitration of a sole arbitrator to

be appointed by the AMC, in accordance with the Arbitration &

Conciliation Act, 1996.


3) These Terms and Conditions are subject to applicable SEBI (Mutual

Funds) Regulations, 1996 as amended from time to time and

includes Guidelines, Circular press release or Notification that may

be issued.

EASY SMS FACILITY

This facility is available for individual investors (registration process to

be completed by the investor to avail this facility). For details of the

registration process, please contact our Investor Service

Centres/website of the AMC.

All individual investors applying on “Sole” or “Joint (Anyone or

Survivor)” basis in their own capacity shall be eligible to avail the

facility for permitted transactions i.e. for lump sum purchase,

redemption and switch transactions on the below mentioned terms

and conditions: “Terms and Conditions” mean the terms and

conditions set out below by which the Facility shall be used/availed

by the Investors and shall include all modifications and supplements

made by AMC thereto from time to time.

Initial Investment has to be through the physical mode wherein the

Investor has to sign a one time debit mandate for bank accounts

pertaining to designated banks with which the AMC may have an

arrangement. This facility is extended to the bank with which the Fund

would have an arrangement from time to time. Transaction amount

may be restricted by the AMC from time to time in line with prudent

risk management requirements and to protect the overall interest of

the Investors. Investor will be allowed transactions over SMS after 30

days from the date of submission of one time mandate. Investor will

not be permitted to avail the facility for Redemptions/Switch

transactions if bank mandate is changed within last 15 days. AMC will


any prior intimation to the Investor.

The AMC has a right to ask such information (Key Information) from

the available data of the Investors before allowing him access to avail

the Facility. If for any reason, the AMC is not satisfied with the replies of

the Investors, the AMC has at its sole discretion the right of refusing

access without assigning any reasons to the Investors.

This facility can be availed only through the registered mobile number

of the Investor.

It is clarified that the Facility is only with a view to accommodate

/facilitate the Investors and offered at the sole discretion of the AMC.

The AMC is not bound and/or obliged in any way to give access to

Facility to Investors. The Investors shall check his/her account records

carefully and promptly. If the Investors believe that there has been a

mistake in any transaction using the Facility, or that unauthorized

transaction has been effected, the Investors shall notify the AMC

immediately. If the Investors defaults in intimating the discrepancies in

the statement within a period of fifteen days of receipt of the

statements, he waives all his rights to raise the same in favour of the

AMC, unless the discrepancy /error is apparent on the face of it. By

opting for the facility the Investors hereby irrevocably authorizes and

instructs the AMC to act as his /her agent and to do all such acts as

AMC may find necessary to provide the Facility.

The Investors shall at all times be bound by any modifications and/or

variations made to these Terms and Conditions by the AMC at their

sole discretion and without notice to them.


The Investor agrees and confirms that the AMC has the right to ask the

Investor for an oral or written confirmation of any transaction request

using the Facility and/or any additional information regarding the

Account of the Investor. The Investor agrees and confirms that the

AMC may at its sole discretion suspend the Facility in whole or in part

at any time without prior notice. The Investor shall not assign any right

or interest or delegate any obligation arising herein. The Investor shall

take responsibility for all the transactions conducted by using the

Facility and will abide by the record of transactions generated by the

AMC. Further, the Investor confirms that such records generated by

the AMC shall be conclusive proof and binding for all purposes and

may be used as evidence in any proceedings and unconditionally

waives all objections in this behalf.

The Investor agrees that use of the Facility will be deemed

acceptance of the Terms and Conditions and the Investor will


agrees that all transactions received shall be eligible for applicable

NAV subject to necessary formalities to be complied by the AMC in

case of transaction through the facility on or before the uniform cut

off time.

Requests like change in bank mandate, change of nomination,

change in mode of holding, change of address or such other requests

as the AMC may decide from time to time will not be permitted using

the facility.

Investors should SMS HELP PURCHASE/REDEMPTION/SWITCH to

9212010033 in order to avail the facility post registration. The

procedure for availing the facility will be communicated to the

investor. Alternatively, the investor can also get in touch with the

Investor Service Centres of the AMC.

Karvy, Registrar & Transfer Agents to Axis Mutual Fund having its office

at Unit: Axis Mutual Fund, Karvy Selenium, Tower B, Plot number 31 &

32, Financial District, Gachibowli, Hyderabad - 500008 will be the

official point of acceptance for such transactions received for Axis

Mutual Fund schemes.


Directors, employees, representatives of the AMC, Axis Mutual Fund

and Trustees (indemnified parties) from and against all actions, claims,

demands, liabilities, obligations, losses, damages, costs and expenses

of whatever nature (whether actual or contingent) directly or

indirectly suffered or incurred, against the indemnified parties

whatsoever arising from or in connection with the Easy Call Facility.

The Investor/s shall not hold the AMC liable and shall keep it

indemnified for the following:



2) For any loss or damage incurred or suffered by the Investor/s due

to any error, defect, failure or interruption in the provision of the

Facility.



rules/terms and conditions stated herein.

5) For accepting instructions given by any one of the Investor/s in

case of joint account/s having mode of operations as “anyone or

survivor”.

6) For not carrying out any such instructions where the AMC has


reason to believe (which decision of the AMC the Investor/s shall

not question or dispute) that the instructions given are not genuine

or are otherwise improper, unclear, vague or raise a doubt.



MISCELLANEOUS:

1) The Investor/s agrees and understands that while this Facility is

being introduced without any charges being levied; in case

charges are to be levied on a future date he agrees to pay such

charges and nonpayment in such an event can lead to

termination of these services.








be issued.

DIVIDEND SWEEP OPTION

The terms and conditions of Dividend Sweep Option (DSO) are as

follows:

1) DSO is a facility wherein unit holder(s) of eligible scheme(s)

[hereinafter referred to as "Source Scheme(s)"] of Axis Mutual Fund

can opt to automatically invest the dividend (as reduced by the

amount of applicable statutory levy) declared by the Source

Scheme into other eligible Scheme(s) [hereinafter referred to as

"Target Scheme(s)"] of Axis Mutual Fund.

2) The facility is available under all the open ended schemes of Axis

Mutual Fund except Exchange Traded Funds (ETFs).

3) DSO facility is available to unit holder(s) only under the Dividend

Plan / Option of the Source Scheme(s). However, the DSO facility

will not be available to unit holder(s) under the Daily Dividend

Option in the Source Scheme(s). Unit holder’s enrolment under the

DSO facility will automatically override any previous instructions for

'Dividend Payout' or 'Dividend Reinvestment' facility in the Source

Scheme.

4) The enrolment for DSO facility should be for all units under the

respective Dividend Plan / Option of the Source Scheme.

Instructions for part Dividend Transfer and part Dividend Payout /

Reinvestment will not be accepted. The dividend amount will be

invested in the Target Scheme under the same folio. Accordingly,

the unit holder(s) details and mode of holding in the Target

Scheme will be same as in the Source Scheme.

5) The enrolment to avail of DSO facility has to be specified for each

Scheme/Plan/Option separately and not at the folio level.

6) Under DSO, dividend declared (as reduced by the amount of

applicable statutory levy and deductions) in the Source scheme

(subject to minimum of Rs. 1,000/-) will be automatically invested

into the Target Scheme, as opted by the unit holder, on the

immediate next Business Day after the Record Date at the

applicable NAV of the Target Scheme, subject to applicable load

as specified under paragraph 9 below and accordingly

equivalent units will be allotted in the Target Scheme, subject to

the terms and conditions of the respective Target Scheme.

7) The provision for 'Minimum Application Amount' specified in the

respective Target Scheme's Scheme Information Document (SID)

will not be applicable under DSO. E.g. the minimum application

amount for new investors in Axis Equity Fund - Growth Plan is


5,000/-. However in case of DSO, a Unit Holder can avail of the

facility irrespective of the amount of dividend (subject to a

minimum of 1,000/-).

8) The Minimum amount of dividend eligible for transfer under

Dividend Sweep Option is 1,000/- (Rupees One Thousand Only). In

case the dividend sweep is being less than eligible amount, then

the dividend will be re-invested in source scheme/ payout as per

the existing option.

9) Load Structure:

The dividend amount to be invested under the DSO from the

Source Scheme to the Target Scheme shall be invested by

subscribing to the units of the Target Scheme at applicable NAV,

subject to payment of Entry/Exit Load as under:

Entry Load (Target Scheme)

Direct Applications & Applications routed through any

distributor/agent/broker: Nil

Exit Load (Source Scheme): Nil

Exit Load (Target Scheme): As per the relevant SID(s)

The Trustee/AMC reserves the right to change the load structure

under the DSO Facility at any time in future on a prospective basis.

10) The Account Statement will be issued by mail or by email (if opted

by the unit holder) to the unit holder as per regulations. In case of

specific request received from unitholders, the Mutual Fund shall

endeavour to provide the account statement to the unitholders

after every transaction of Dividend Transfer.

11) Unitholders who wish to enroll for DSO facility are required to fill

DSO Enrolment Form available with the ISCs, distributors/agents

and also displayed on the website www.axismf.com. The DSO

Enrolment Form should be completed in English in Block Letters

only. The DSO Enrolment Form complete in all aspects should be

submitted at any of the Investor Services centre (ISCs) of Axis

Mutual Fund.

12) The request for enrolment for DSO must be submitted at least 10

days prior to the Record Date for the dividend. In case of the

condition not being met, the enrolment would be considered

valid from the immediately succeeding Record Date of the

dividend, provided the difference between the date of receipt of

a valid application for enrolment under DSO and the next Record

Date for dividend is not less than 10 days.

13) Unitholder(s) are advised to read the SID of Target Scheme(s)

carefully before investing. The SID / KIM of the respective

Scheme(s) are available with the ISCs of Axis Mutual Fund, brokers

/ distributors and also displayed on the Axis Mutual Fund website

i.e. – www.axismf.com

14) Unit holders will have the right to discontinue the DSO facility at

any time by sending a written request to the ISC. Notice of such

discontinuance should be received at least 10 days prior to the

Dividend Record Date. On receipt of such request, the DSO

facility will be terminated. At the time of discontinuation of DSO

facility, the Unit holders should indicate their choice of option i.e.

dividend reinvestment or dividend payout. In the event the

Unitholder does not indicate his choice of dividend option, the

dividend, if any, will be reinvested (compulsory payout if dividend

reinvestment option is not available) in the Source Scheme. Once

the request for DSO is registered, then it shall remain in force unless

it is terminated as aforesaid.

15) The Trustee/AMC reserves the right to change/modify the terms

and conditions of the DSO.

The Trustee reserves the right to change/ modify the terms and

conditions of the DSO at a later date on a prospective basis.


TRIGGER FACILITY

Trigger is an event on the happening of which, the Fund will

automatically redeem / switch the units, as the case may be, on

behalf of the investor, on the date of happening of the event.

Accordingly, a trigger will activate a transaction when the event

selected for has reached the trigger point. All redemptions/ switches

etc. linked to triggers will always be at the applicable NAV based

prices of the day on which the event occurs. The investors opting for

the Trigger facility will also have right to redeem/ switch their holdings

before happening of the trigger event. Please note that the trigger is

an additional facility provided to the unit holders to save time on

completing the redemption/ switch formalities on happening of a

particular predetermined event. Trigger is not an assurance on part of

AMC / Fund to the investor that he / she will receive a particular

amount of money / appreciation and / or a percentage on

redemption or will get a particular amount of capital appreciation or

will minimise the loss to investor to a particular amount or percentage.

1. Schemes for which the facility is available:

Transferor Scheme(s) Transferee Scheme(s)

Axis Liquid Fund Axis Liquid Fund

Axis Treasury Advantage

Fund


Fund

Axis Short Term Fund Axis Short Term Fund

Axis Banking & PSU Debt

Fund


Fund

Axis Bluechip Fund Axis Bluechip Fund

Axis Midcap Fund Axis Midcap Fund

Axis Focused 25 Fund Axis Focused 25 Fund

Axis Triple Advantage Fund Axis Triple Advantage Fund

Axis Regular Saver Fund Axis Regular Saver Fund

Axis Gold Fund Axis Gold Fund

Axis Dynamic Bond Fund Axis Dynamic Bond Fund

Axis Strategic Bond Fund Axis Strategic Bond Fund

Axis Long Term Equity Fund Axis Long Term Equity Fund

Axis Children's Gift Fund Axis Children's Gift Fund

Axis Smallcap Fund Axis Smallcap Fund

Axis Corporate Debt Fund Axis Corporate Debt Fund

Axis Dynamic Equity Fund Axis Dynamic Equity Fund

Axis Gilt Fund

Axis Equity Hybrid Fund Axis Equity Hybrid Fund

Axis Multicap Fund Axis Multicap Fund

Axis Growth Opportunities

Fund


Fund

Axis Ultra Short Term Fund Axis Ultra Short Term Fund

Axis Overnight Fund Axis Overnight Fund

Axis Nifty 100 Index Fund Axis Nifty 100 Index Fund

@ Investors who have completed the lock-in period specified in the

Scheme Information Document may apply for trigger facility.

3. Under the Trigger facility, investors will have the following options on

the date of happening of the event:

a) Full Redemption / Switch Out

b) Redemption / Switch Out to the extent of capital appreciation only

c) Redemption / Switch Out to the extent of Principal amount only

The trigger facility is available only for the options specified above


and is not available for any adhoc amount that the investor may

specify.

4. The investors can select any one of the following trigger option(s)

under various plans / options of the scheme:

i. Option to redeem / switch out in the event, Nifty Index reaches or

exceeds a specified level, at the end of any business day.

Under this option, the investor can specify that if the index (NIFTY)

reaches or exceeds a particular level at the close of any business day,

then the amount specified by the investor will be either redeemed /

switched to the selected transferee scheme.

ii. Option to redeem / switch out in the event Nifty Index reaches or

goes below a specified level, at the end of any business day.

Under this facility, the investor can specify that if the index (NIFTY)

reaches a particular level or goes below that at the close of any

business day, then the amount specified shall either be redeemed /


iii. Option to redeem / switch out in the event NAV reaches or

exceeds a specified level.

Under this facility, the investor can specify the Net Asset Value (NAV)

on reaching / exceeding which the amount specified will be

redeemed / switched to the selected transferee scheme.

iv. Option to redeem / switch out in the event NAV appreciates by a

specified percentage.

Under this facility, the investor can choose a specific percentage, by

which, if the scheme NAV appreciates, then the amount specified will

be redeemed / switched to the selected transferee scheme.

v. Option to redeem / switch out in the event NAV appreciates or

depreciates by a specified percentage.


which, if the scheme NAV appreciates or depreciates, then the

amount specified will be redeemed / switched to the selected

transferee scheme.

vi. Option to redeem / switch out in the event NAV depreciates by a

specified percentage


which, if the scheme NAV depreciates, then the amount specified will


Notes: -

A. For point no. iii above - The NAV level (in INR terms) specified by the

Unit holder must be in multiples of 5 paisa e.g. INR 10.50, INR.10.55,

INR.10.60 etc.

B. For points no. iv, v and vi above - The NAV percentage level

specified by the Unit holder must be in multiples of 1 %.

Terms & Conditions:

1. On the trigger date (the day of event occurrence), the applicable

amount will be redeemed /switched from the transferor scheme at

the closing NAV of the day i.e. the trigger date.

2. Switches can be made only where so permitted by the respective

Scheme Information Document of the Transferor/ Transferee schemes.

3. Once a trigger is activated and a transaction is processed, the

same will not be reversed and it will be final and binding upon the Unit

holder.


4. Trigger once activated would expire and would not be executed

again.

5. Trigger facility shall be applicable subject to payment of exit load in

the transferor scheme(s), if any.

6. The specified trigger will fail, if the investor(s) do not maintain

sufficient balance in the scheme at the time of registration of trigger

and on the trigger date.

7. Trigger will not get executed in case units are pledged or where lien

is marked on units, at the time of receipt of request for trigger.

8. Day closing Nifty Index level would be considered in case of triggers

linked to Nifty.

9. In case of partial or full switch/redemption, any trigger already

registered for a particular transaction will be deactivated.

10."Minimum Application Amount/ Minimum Additional Investment

Amount" specified in the Scheme Information Document of the

transferee schemes will not be applicable for Switches based on

specified triggers limits being achieved.

11.NAV for switch /redemption: NAV of the trigger day will be

considered for the purpose of Redemption/ switch. In case of non-

business day in debt schemes but business day in case of equity

schemes, switch-out from equity schemes will be processed on the

trigger day and switch-in to Debt/ Liquid schemes will be processed

on the next business day.

12.In case, if no plan / option is specified for switch transaction under

trigger option, default plan / option, as specified in respective

Scheme Information Document will be considered.

13. In case of any ambiguity or where the investor fails to specify

whether the redemption / switch to be made is full or to the extent of

capital appreciation or to the extent of Principal amount only, the

transaction will not be processed.

14.All requests for registering or deactivating the trigger facility shall

be subject to an advance notice of 10 (Ten) working days. Investors

can deactivate the trigger facility by sending a written request to the

Investor Service Centers.

APPLICATION VIA ELECTRONIC MODE

Subject to the Investor fulfilling certain terms and conditions stipulated

by the AMC as under, Axis Asset Management Company Ltd., Axis

Mutual Fund or any other agent or representative of the AMC, Mutual

Fund, the Registrar & Transfer Agents may accept transactions

through any electronic mode including fax/web/ electronic

transactions as permitted by SEBI or other regulatory authorities :

i. The acceptance of the fax/web/electronic transactions will be

solely at the risk of the transmitter of the fax/web/ electronic

transactions and the Recipient shall not in any way be liable or

responsible for any loss, damage caused to the transmitter

directly or indirectly, as a result of the transmitter sending or

purporting to send such transactions.

ii. The recipient will also not be liable in the case where the

transaction sent or purported to be sent is not processed on

account of the fact that it was not received by the Recipient.

iii. The transmitter’s request to the Recipient to act on any

fax/web/electronic transmission is for the transmitter’s

convenience and the Recipient is not obliged or bound to act

on the same.

iv. The transmitter acknowledges that fax/web/electronic

transactions is not a secure means of giving instructions/

transactions requests and that the transmitter is aware of the risks

involved including those arising out of such transmission.

v. The transmitter authorizes the recipient to accept and act on


any fax/web/ electronic transmission which the recipient

believes in good faith to be given by the transmitter and the

recipient shall be entitled to treat any such fax/web/ electronic

transaction as if the same was given to the recipient under the

transmitter’s original signature.

vi. The transmitter agrees that security procedures adopted by the

recipient may include signature verification, telephone call

backs which may be recorded by tape recording device and

the transmitter consents to such recording and agrees to

cooperate with the recipient to enable confirmation of such

fax/web/ electronic transaction requests.

vii. The transmitter accepts that the fax/web/ electronic

transactions, where applicable shall not be considered until time

stamped as a valid transaction request in the Scheme in line with

the Regulations.

In consideration of the recipient from time to time accepting and at

its sole discretion acting on any fax/ web/electronic transaction

request received / purporting to be received from the transmitter, the

transmitter agrees to indemnify and keep indemnified the AMC,

Directors, employees, agents, representatives of the AMC, Axis Mutual

Fund and Trustee from and against all actions, claims, demands,

liabilities, obligations, losses, damages, costs and expenses of

whatever nature (whether actual or contingent) directly or indirectly

suffered or incurred, sustained by or threatened against the

indemnified parties whatsoever arising from or in connection with or

any way relating to the indemnified parties in good faith accepting

and acting on fax/web/ electronic transaction requests including

relying upon such fax/ electronic transaction requests purporting to

come from the Transmitter even though it may not come from the

Transmitter.

The AMC reserves the right to discontinue the facility at any point of

time.

Distributors offer goal based financial planning (facility) to their clients.

In order to encourage Investors to plan for their investments based on

life goals (e.g. child’s education, retirement, wealth creation, etc), the

Asset Management Company would assist in providing such facilities.

Since such facilities are aimed at helping Investors achieving their

financial goals, certain features offered by Axis Mutual Fund may not

be offered/available under such goal based investment folios. Under

a folio, no additional purchase, switch and part redemption would be

allowed. Requests for changes in goals/goal details will not be

accepted. Under normal circumstances, there is no restriction on the

right of the investor to transact directly with the mutual fund.

Multiple goals based investments can be applied for under one

application form and a single cheque in the name of ‘Axis Mutual

Fund First Investor name’ or ‘Axis Mutual Fund Permanent Account

Number’ would have to be provided by the Investor. Transaction

charge would be charged at application form level.

In case there is a broker code change/the investor is desirous of being

a direct investor with the mutual fund, the investment will cease to be

a part of the facility. Investors may note that investments under such

facilities would be based on advice from the distributor /Financial

advisor and the Asset Management Company acts purely in capacity

as a facilitator for such transactions. The distributor(s) may choose to


modify/change or discontinue the above stated facility. In such a

case the investors may continue their investment with the AMC/any

other distributor.

For further details/clarifications investors may contact the distributor(s)


AUTOMATIC ENCASHMENT PLAN FACILITY (‘AEP facility’)

AEP facility enables unitholders to redeem fixed percentage of

investment amount at a fixed frequency i.e. monthly frequency.

The terms and conditions of AEP facility are as under:

1. Investors investing in specified schemes can avail AEP facility by

providing standing instruction to redeem fixed percentage of

investment amount at a fixed frequency i.e. monthly frequency.

2. AEP facility is available to Unitholders under Growth Option of the

Scheme. Unitholders have option to select fixed percentage i.e.

0.7% of investment amount for redemption at the fixed frequency.

3. The fixed percentage of investment amount under AEP facility will

be calculated based on investment amount. The units equal to

the said amount will be redeemed on 25th of each month (or next

business day if that day is not a business day) subject to

applicable exit load and taxes; if any.

4. AEP facility is available only for subscription transaction by way of

lump sum investment or switch in to the specified scheme(s).

Investment transactions in the Scheme(s) through SIP or STP (in)

facilities will not be eligible for AEP facility.

5. No Special Products viz STP (out), SWP, etc will be registered for

investments under AEP facility.

6. AEP facility is available for only un encumbered units held in

physical mode (non-demat mode).

7. Redemption of units received under the Scheme(s) will be done

on First-in-First out basis.

8. If redemption payable under AEP facility is less than Rs. 500/- then

no redemption will be effected and the amount shall remain

invested in the Scheme(s). Consequently, no pay out will be made

for the said month.

9. Units under AEP facility offered under aforesaid Scheme(s) will be

allotted in a separate folio for existing investors under the

Scheme(s).

10. AEP facility will not be available for existing investments under the

Scheme(s).

11. AEP facility shall be activated/ deactivated subject to an

advance notice of 10 business day. No modification is allowed

after registration of request for AEP facility.

AMC/Trustee reserves the right to change / modify the terms &

conditions at any point of time.

Accounts Statements

On acceptance of the application for subscription, an allotment

confirmation specifying the number of units allotted by way of e-

mail and/or SMS within 5 business days from the date of receipt of

transaction request/allotment will be sent to the Unit Holders

registered e-mail address and/or mobile number.

In case of Unit Holders holding units in the dematerialized mode, the

Fund will not send the account statement to the Unit Holders. The

statement provided by the Depository Participant will be equivalent

to the account statement.

For those unit holders who have provided an e-mail address, the

AMC will send the account statement by e-mail.

Unit holders will be required to download and print the documents


after receiving e-mail from the Mutual Fund. Should the Unit holder

experience any difficulty in accessing the electronically delivered

documents, the Unit holder shall promptly advise the Mutual Fund

to enable the Mutual Fund to make the delivery through alternate

means. It is deemed that the Unit holder is aware of all security risks

including possible third party interception of the documents and

contents of the documents becoming known to third parties.

The Unit holder may request for a physical account statement by

writing/calling the AMC/ISC/R&T. In case of specific request

received from the Unit Holders, the AMC/Fund will provide the

Account Statement to the Investors within 5 business days from the

receipt of such request.

The AMC shall issue Unit certificates within 5 business days from the

date of receipt of request where the applicant so desires.

CONSOLIDATED ACCOUNT STATEMENT (CAS)

I. For Unitholders not holding Demat Account:

CAS is an account statement detailing all the transactions and

holding at the end of the month including transaction charges paid

to the distributor, across all schemes of all mutual funds. CAS issued to

investors shall also provide the total purchase value/cost of

investment in each scheme.

Further, CAS issued for the half-year (September/ March) shall also

provide

a. The amount of actual commission paid by AMC/Mutual Fund to

distributors (in absolute terms) during the half-year period against

the concerned investor’s total investments in each scheme.

b. The scheme’s average Total Expense Ratio (in percentage terms)

along with the break up between Investment and Advisory fees,

Commission paid to the distributor and Other expenses for the

period for each scheme’s applicable plan (regular or direct or

both) where the concerned investor has actually invested in.

The word transaction will include purchase, redemption, switch,

dividend payout, dividend reinvestment, systematic investment plan,

systematic withdrawal plan and systematic transfer plan.

a) For Unitholders not holding Demat Account:

CAS for each calendar month shall be issued, on or before tenth day

of succeeding month by the AMC.

The AMC shall ensure that a CAS for every half yearly (September/

March) is issued, on or before tenth day of succeeding month,

detailing holding at the end of the six month, across all schemes of all

mutual funds, to all such investors in whose folios no transaction has

taken place during that period.

The AMC shall identify common investors across fund houses by their

Permanent Account Number (PAN) for the purposes of sending CAS.

In the event the account has more than one registered holder, the

first named Unit Holder shall receive the Account Statement.

The AMC will send statement of accounts by e-mail where the

Investor has provided the e-mail id. Additionally, the AMC may at its

discretion send Account Statements individually to the investors.

b) For Unitholders holding Demat Account:

SEBI vide its circular no. CIR/MRD/DP/31/2014 dated November 12,

2014, in order to enable a single consolidated view of all the

investments of an investor in Mutual Fund and securities held in demat


form with Depositories, has required Depositories to generate and

dispatch a single CAS for investors having mutual fund investments

and holding demat accounts.

In view of the aforesaid requirement, for investors who hold demat

account, for transactions in the schemes of Axis Mutual Fund on or

after February 1, 2015, a CAS, based on PAN of the holders, will be

sent by Depositories to investors holding demat account, for each

calendar month within 10th day of the succeeding month to the

investors in whose folios transactions have taken place during that

month.

CAS will be sent by Depositories every half yearly (September/March),

on or before 10th day of succeeding month, detailing holding at the

end of the six month, to all such investors in whose folios and demat

accounts there have been no transactions during that period.

CAS sent by Depositories is a statement containing details relating to

all financial transactions made by an investor across all mutual funds

viz. purchase, redemption, switch, dividend payout, dividend

reinvestment, systematic investment plan, systematic withdrawal plan,

systematic transfer plan (including transaction charges paid to the

distributor) and transaction in dematerialized securities across demat

accounts of the investors and holding at the end of the month.

In case of demat accounts with nil balance and no transactions in

securities and in mutual fund folios, the depository shall send account

statement in terms of regulations applicable to the depositories.

Investors whose folio(s)/ demat account(s) are not updated with PAN

shall not receive CAS.

Consolidation of account statement is done on the basis of PAN.

Investors are therefore requested to ensure that their folio(s)/ demat

account(s) are updated with PAN. In case of multiple holding, it shall

be PAN of the first holder and pattern of holding.

For Unit Holders who have provided an e-mail address to the Mutual

Fund or in KYC records, the CAS is sent by e-mail. However, where an

investor does not wish to receive CAS through email, option is given to

the investor to receive the CAS in physical form at the address

registered in the Depository system.

Investors who do not wish to receive CAS sent by depositories have an

option to indicate their negative consent. Such investors may contact

the depositories to opt out. Investors who do not hold demat account

continue to receive CAS sent by RTA/AMC, based on the PAN,

covering transactions across all mutual funds as per the current

practice.

In case an investor has multiple accounts across two depositories; the

depository with whom the account has been opened earlier will be

the default depository.

The dispatches of CAS by the depositories constitute compliance by

the AMC/ the Fund with the requirement under Regulation 36(4) of

SEBI (Mutual Funds) Regulations. However, the AMC reserves the right

to furnish the account statement in addition to the CAS, if deemed fit

in the interest of investor(s).

Investors whose folio(s)/demat account(s) are not updated with PAN

shall not receive CAS. Investors are therefore requested to ensure that


their folio(s)/demat account(s) are updated with PAN.

For folios not included in the CAS (due to non-availability of PAN), the

AMC shall issue monthly account statement to such Unit holder(s), for

any financial transaction undertaken during the month on or before

10th of succeeding month by mail or email.

For folios not eligible to receive CAS (due to non-availability of PAN),

the

AMC shall issue an account statement detailing holding across all

schemes at the end of every six months (i.e. September/March), on or

before 10th day of succeeding month, to all such Unit holders in whose

folios no transaction has taken place during that period shall be sent

by

mail/e-mail.

OPTION TO HOLD UNITS IN DEMATERIALISED (DEMAT) FORM

Investors shall have an option to receive allotment of Mutual Fund

units in their demat account while subscribing to the Scheme in terms

of the guidelines/ procedural requirements as laid by the Depositories

(NSDL/CDSL) from time to time.

Investors desirous of having the Units of the Scheme in dematerialized

form should contact the ISCs of the AMC/Registrar.

Where units are held by investor in dematerialized form, the demat

statement issued by the Depository Participant would be deemed

adequate compliance with the requirements in respect of dispatch of

statements of account.

In case investors desire to convert their existing physical units

(represented by statement of account) into dematerialized form or

vice versa, the request for conversion of units held in physical form into

Demat (electronic) form or vice versa should be submitted alongwith

a Demat/Remat Request Form to their Depository Participants. In case

the units are desired to be held by investor in dematerialized form, the

KYC performed by Depository Participant shall be considered

compliance of the applicable SEBI norms.

Units held in Demat form are freely transferable in accordance with

the provisions of SEBI (Depositories and Participants) Regulations, as

may be amended from time to time. Transfer can be made only in

favour of transferees who are capable of holding units and having a

Demat Account. The delivery instructions for transfer of units will have

to be lodged with the Depository Participant in requisite form as may

be required from time to time and transfer will be affected in

accordance with such rules / regulations as may be in force

governing transfer of securities in dematerialized mode.

The demat option is provided to all schemes and options of Axis

Mutual Fund except for all daily and weekly dividend options under all

debt and liquid schemes. Further, demat option shall also be

available for SIP transactions. Units will be allotted based on the

applicable NAV as per Scheme Information Document and will be

credited to investors Demat Account on weekly basis on realization of

funds.

For details, Investors may contact any of the Investor Service Centres

of the AMC.

Dividend The Dividend warrants/cheque/demand draft shall be dispatched to

the Unit holders within 30 days of the date of declaration of the


Dividend.

If the payment is not made within the period stipulated in the

Regulations, the Unit Holder shall be paid interest @15% p.a. or as

specified by SEBI for the delayed period and the interest shall be

borne by the AMC.

The Dividend proceeds will be paid by way of EFT/NEFT/RTGS/ Direct

credits/ any other electronic manner if sufficient banking account

details are available with Mutual Fund for Investor.

In case of specific request for Dividend by

warrants/cheques/demand drafts or unavailability of sufficient details

with the Mutual Fund, the Dividend will be paid by

warrant/cheques/demand drafts and payments will be made in

favour of the Unit holder (registered holder of the Units or, if there are

more than one registered holder, only to the first registered holder)

with bank account number furnished to the Mutual Fund (please note

that it is mandatory for the Unit holders to provide the Bank account

details as per the directives of SEBI).

Redemption How to Redeem

A Transaction Slip can be used by the Unit Holder to request for

Redemption. The requisite details should be entered in the Transaction

Slip and submitted at an ISC/Official Point of Acceptance.

Transaction Slips can be obtained from any of the ISCs/Official Points

of Acceptance. Investor can also place redemption through

Telephone using Easy Call/Easy SMS facility or may redeem Online

through the AMC’s website subject to the terms and conditions as

maybe stipulated from time to time.

Procedure for payment of redemption.

1. Resident Investors

Redemption proceeds will be paid to the investor through Real Time

Gross Settlement (RTGS), NEFT, Direct Credit, Cheque or Demand

Draft.

a) If investor had provided IFSC code in the application form, by

default redemption proceeds shall be credited to Investor’s

account through RTGS/NEFT.

b) If Investor has neither provided RTGS code nor the NEFT code but

have a bank account with Banks with whom the Fund would has

an arrangement for Direct Credit from time to time, the proceeds

will be paid through direct credit.

c) Incase if investor bank account does not fall in the above a to b

categories, redemption proceeds will be paid by

cheques/demand drafts, marked "Account Payee only" and

drawn in the name of the sole holder / first-named holder (as

determined by the records of the Registrar).

The bank name and bank account number, as specified in the

Registrar's records, will be mentioned in the cheque/demand

draft. The cheque will be payable at par at all bank branch or

specific cities. If the Unit Holder resides in any other city, he will be

paid by a demand draft payable at the city of his residence and

the demand draft charges shall be borne by the AMC (please

refer SAI for details).

The redemption proceeds will be sent by courier or (if the

addressee city is not serviced by the courier) by registered

post/UCP. The dispatch for the purpose of delivery through the

courier / postal department, as the case may be, shall be treated


as delivery to the investor. The AMC / Registrar are not responsible

for any delayed delivery or non-delivery or any consequences

thereof, if the dispatch has been made correctly as stated in this

paragraph.

The AMC reserves the right to change the sequence of payment

from (a) to (c) without any prior notice

For Unit holders who have given specific request for Cheque/Demand

Draft Redemption proceeds will be paid by cheque/demand drafts

and payments will be made in favour of the Unit holder with bank

account number furnished to the Mutual Fund

(Please note that it is mandatory for the Unit holders to provide the

Bank account details as per the directives of SEBI). Redemption

cheques will be sent to the Unit holder’s address.

The Trustee, at its discretion at a later date, may choose to alter or

add other modes of payment.

2. Non-Resident Investors/PIO/OCI

For NRIs, Redemption proceeds will be remitted depending upon the

source of investment as follows:

(i) Repatriation basis

When Units have been purchased through remittance in foreign

exchange from abroad or by cheque / draft issued from proceeds of

the Unit Holder's FCNR deposit or from funds held in the Unit Holder's

Non Resident (External) account kept in India the proceeds can also

be sent to his Indian address for crediting to his NRE / FCNR / non-

resident (Ordinary) account, if desired by the Unit Holder.

(ii) Non-Repatriation basis

When Units have been purchased from funds held in the Unit Holder's

non-resident (Ordinary) account, the proceeds will be sent to the Unit

Holder's Indian address for crediting to the Unit Holder's non-resident

(Ordinary) account.

(iii) FPI

For FPIs, the designated branch of the authorized dealer may allow

remittance of net sale / maturity proceeds (after payment of taxes) or

credit the amount to the Foreign Currency account or Non-resident

Rupee account of the FPI maintained in accordance with the

approval granted to it by the RBI. The Fund will not be liable for any

delays or for any loss on account of any exchange fluctuations, while

converting the rupee amount in foreign exchange in the case of

transactions with NRIs/ FPIs. The Fund may make other arrangements

for effecting payment of redemption proceeds in future.

Effect of Redemptions

The number of Units held by the Unit Holder in his / her / its folio will

stand reduced by the number of Units Redeemed. Units once

redeemed will be extinguished and will not be re-issued.

The normal processing time may not be applicable in situations where

such details are not provided by investors/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.


AMC reserves the right to provide the facility of redeeming Units of the

Scheme through an alternative mechanism including but not limited

to online transactions on the Internet, as may be decided by the AMC

from time to time. The alternative mechanism may also include

electronic means of communication such as redeeming Units online

through the AMC Website or any other website etc. The alternative

mechanisms would be applicable to only those investors who opt for

the same in writing and/or subject to investor fulfilling such conditions

as AMC may specify from time to time.

Signature mismatches

If the AMC / Registrar finds a signature mismatch, while processing the

redemption/ switch out request, then the AMC/ Registrar reserves the

right to process the redemption only on the basis of supporting

documents confirming the identity of the investors. List of such

documents would be notified by AMC from time to time on its

website.

Important Note: All applicants for Purchase of Units /Redemption of

Units must provide a bank name, bank account number, branch

address, and account type in the Application Form.

Unclaimed Redemptions and Dividends

As per circular no. MFD/CIR/ 9/120/2000, dated November 24, 2000

issued by SEBI, the unclaimed Redemption and dividend amounts

shall be deployed by the Fund in money market instruments and such

other instruments/securities as maybe permitted from time to time. The

investment management fee charged by the AMC for managing

such unclaimed amounts shall not exceed 50 basis points. The circular

also specifies that investors who claim these amounts during a period

of three years from the due date shall be paid at the prevailing NAV.

Thus, after a period of three years, this amount can be transferred to a

pool account and the investors can claim the said amounts at the

NAV prevailing at the end of the third year. In terms of the circular, the

onus is on the AMC to make a continuous effort to remind investors

through letters to take their unclaimed amounts. The details of such

unclaimed amounts shall be disclosed in the annual report sent to the

Unit Holders.

Further, according to circular no. SEBI/HO/IMD/DF2/CIR/P/ 2016/37

dated February 25, 2016 the unclaimed Redemption and dividend

amounts may be deployed in separate plan of Liquid scheme/Money

market mutual fund scheme floated by Mutual Funds specifically for

deployment of the unclaimed Redemption and dividend amounts.

Delay in payment of

redemption /

repurchase proceeds

The AMC shall be liable to pay interest to the Unit holders at 15% or

such other rate as may be prescribed by SEBI from time to time, in

case the Redemption / Repurchase proceeds are not made within 10

Business Days of the date of Redemption / Repurchase. However, the

AMC will not be liable to pay any interest or compensation or any

amount otherwise, in case the AMC / Trustee is required to obtain

from the Investor / Unit holders verification of identity or such other

details relating to Subscription for Units under any applicable law or as

may be requested by a Regulatory Agency or any government

authority, which may result in delay in processing the application.

Facility to transact in

units of the Schemes

through MF Utility portal

& MFUI Points of Services

pursuant to

appointment of MF

Utilities India Pvt. Ltd.

AMC has entered into an Agreement with MF Utilities India Private Ltd.

(“MFUI”), a “Category II – Registrar to an Issue” under SEBI (Registrars

to an Issue and Share Transfer Agents) Regulations, 1993, for usage of

MF Utility (“MFU”) - a shared services initiative of various Asset

Management Companies, which acts as a transaction aggregation

portal for transacting in multiple Schemes of various Mutual Funds with

a single form and a single payment instrument.


Accordingly, investors are requested to note that in addition to the

existing official points of acceptance (“OPA”) for accepting

transactions in the units of the schemes of the Axis Mutual Fund as

disclosed in the SID, www.mfuonline.com i.e. online transaction portal

of MFU and the authorized Points of Service (“POS”) designated by

MUFI shall also be the OPA with effect from the dates as may be

specified by MFUI on its website/ AMC by issuance of necessary

communication.

All financial and non-financial transactions pertaining to Schemes of

Axis Mutual Fund can be done through MFU either electronically on

www.mfuonline.com or physically through the POS of MFUI with effect

from the respective dates as published on MFUI website against the

respective POS locations. The list of POS of MFUI is published on the

website of MFUI at www.mfuindia.com. This will be updated from time

to time.

The uniform cut-off time as prescribed SEBI (Mutual Funds) Regulations,

1996, circulars issued by SEBI and as mentioned in the SID / KIM of

Scheme shall be applicable for applications received on the portal of

MFUI i.e. www.mfuonline.com. However, investors should note that

transactions on the MFUI portal shall be subject to the terms &

conditions (including those relating to eligibility of investors) as

stipulated by MFUI / Axis Mutual Fund / the AMC from time to time

and in accordance to the laws applicable.

MFUI will allot a Common Account Number (“CAN”), a single

reference number for all investments in the Mutual Fund industry, for

transacting in multiple Schemes of various Mutual Funds through MFU

and to map existing folios, if any. Investors can create a CAN by

submitting the CAN Registration Form (CRF) and necessary

documents at the MFUI POS. The AMC and / or its Registrar and

Transfer Agent (RTA) shall provide necessary details to MFUI as may be

needed for providing the required services to investors / distributors

through MFU.

C. PERIODIC DISCLOSURES

Net Asset Value

This is the value per Unit

of the scheme on a

particular day. You can

ascertain the value of

your investments by

multiplying the NAV

with your Unit balance.

The AMC will calculate and disclose the NAV of the Scheme on all the

Business Days. The AMC shall update the NAVs on the website of the

AMC (www.axismf.com) and of the Association of Mutual Funds in

India - AMFI (www.amfiindia.com) before 11.00 p.m. on every Business

Day. If the NAVs are not available before the commencement of

Business Hours on the following day due to any reason, the Mutual Fund

shall issue a press release giving reasons and explaining when the


Information regarding NAV can be obtained by the Unit holders /

Investors by calling or visiting the nearest ISC.

Monthly and Half yearly

Disclosures: Portfolio /

Financial Results

This is a list of securities

where the corpus of

the scheme is currently

invested. The market

value of these

investments is also

stated in portfolio

The AMC will disclose the portfolio of the Scheme (alongwith ISIN) as on

the last day of the month / half year on the website of the Mutual Fund

and AMFI within 10 days from the close of each month/ half year (i.e.

31st March and 30th September) respectively in a user-friendly and

downloadable spreadsheet format. Further, AMC shall publish an

advertisement in an all India edition of one national English daily

newspaper and one Hindi newspaper, every half year, disclosing the

hosting of the half-yearly statement of its schemes’ portfolio on the

website of the Mutual Fund and AMFI and the modes through which

unitholder(s) can submit a request for a physical or electronic copy of

the statement of scheme portfolio.






disclosures.

The AMC will also provide a dashboard, in a comparable,

downloadable (spreadsheet) and machine readable format, providing

performance and key disclosures like Scheme’s AUM, investment

objective, expense ratios, portfolio details, scheme’s past performance

etc. on website.

Half Yearly Results

The Mutual Fund shall within one month from the close of each half

year, that is on 31st March and on 30th September, host a soft copy of

its unaudited financial results on the website of the AMC and AMFI.

The mutual fund shall publish an advertisement disclosing the hosting of

such financial results on their website, in atleast one English daily

newspaper having nationwide circulation and in a newspaper having

wide circulation published in the language of the region where the

Head Office of the Mutual Fund is situated.

The unaudited financial results will also be displayed on the website of

the AMC and AMFI.

Annual Report The Scheme wise annual report or an abridged summary thereof shall

be mailed (emailed, where e mail id is provided unless otherwise

required) to all Unit holders not later than four months (or such other

period as may be specified by SEBI from time to time) from the date of

closure of the relevant accounting year (i.e. 31st March each year)

and full annual report shall be available for inspection at the Head

Office of the Mutual Fund and a copy shall be made available to the

Unit holders on request on payment of nominal fees, if any. Scheme

wise annual report shall also be displayed on the website of the AMC

(www.axismf.com) and Association of Mutual Funds in India

(www.amfiindia.com).

Unitholders whose email addresses are not registered with the Mutual

Fund may ‘opt-in’ to receive a physical copy of the annual report or an

abridged summary thereof.

Further, AMC shall provide a physical copy of the abridged summary of

the Annual Report, without charging any cost, on a specific request

received from a unitholder.

AMC shall also publish an advertisement every year, in an all India

edition of one national English daily newspaper and in one Hindi

newspaper, disclosing the hosting of the scheme wise annual report on

the website of the Mutual Fund and AMFI and the modes through

which a unitholder can submit a request for a physical or electronic

copy of the annual report or abridged summary thereof.

Associate Transactions Please refer to Statement of Additional Information (SAI).

Taxation

(Equity Oriented)

Rates applicable for

the FY 19-20.

The information is

provided for general

information only.

However, in view of the

individual nature of the

implications, each

investor is advised to

consult his or her own

Resident

Investors

Mutual Fund

Tax on Dividend Nil Dividend Distribution Tax

(DDT)

11.648% (10%+12%

Surcharge+4%cess)

Capital Gains:

Long Term

(Held for a period

of more than 12

Months)

10%(plus

applicable

surcharge and

cess) without

indexation (refer

note 5 below)

Nil



tax advisors/authorised

dealers with respect to

the specific amount of

tax and other

implications arising out

of his or her

participation in the

schemes.

Short Term

(Held for a period

of 12 months or

less)

15% (plus

applicable

surcharge and

cess)

Nil

1. Axis Mutual Fund is a Mutual Fund registered with the Securities &

Exchange Board of India and hence the entire income of the

Mutual Fund will be exempt from income tax in accordance with

the provisions of Section 10(23D) of the Income-tax Act, 1961 (the

Act).

2. Surcharge at the following rate to be levied in case of individual

/HUF unit holders for equity oriented mutual fund:

Total Income

Rate of

Surcharge

Exceeding 50 Lac but not exceeding 1

Crores 10%

Exceeding 1 Crores 15%

3. For income distributed after 1 October 2014, the mode of

calculation of distributed income u/s 115R for the purpose of

determining the amount of tax thereon has been modified which

shall result in higher effective rate of tax on such income distribution

by the Mutual Fund.

4. The Scheme will attract securities transaction tax (STT) at 0.001% on

the redemption value.

5. With effect from 1 April 2018, as per section 112A of the Act, long-

term capital gains, exceeding INR 100,000, arising from transfer of

equity oriented mutual funds, shall be chargeable at the rate of

10% (plus applicable surcharge and cess).

For further details on taxation please refer to the clause on Taxation in

the SAI

Investor services Investors can lodge any service request or complaints or enquire about

NAVs, Unit Holdings, Dividends, etc by calling the Investor line of the

AMC at "1800 221322" (toll-free number) and additional contact

number 8108622211 from 8.00 am to 8.00 pm (Monday to Friday) and

9.00 am to 6.00 pm (on Saturday and Sunday) or 4325 5100 (at local

call rate for enquiring at AMC ISC’s) or email –

[email protected]. The service representatives may require

personal information of the Investor for verification of his / her identity in

order to protect confidentiality of information. The AMC will at all times

endeavour to handle transactions efficiently and to resolve any

investor grievances promptly.

The service representatives may require personal information of the

Investor for verification of his / her identity in order to protect

confidentiality of information. The AMC will at all times endeavour to

handle transactions efficiently and to resolve any Investor grievances

promptly.

Any complaints should be addressed to Mr. Milind Vengurlekar who has

been appointed as the Investor Relations Officer and can be

contacted at:

Address : Axis Asset Management Company Ltd.

Axis House, 1st Floor, C-2, Wadia International Centre,

Pandurang Budhkar Marg, Worli,

Mumbai – 400 025

Phone no.: 022 43254123


For any grievances with respect to transactions through BSE StAR and /

or NSE MFSS, the investors / Unit Holders should approach either the

stock broker or the investor grievance cell of the respective stock

exchange.

D. COMPUTATION OF NAV

The Net Asset Value (NAV) per Unit under the Scheme will be computed by dividing the net

assets of the Scheme by the number of Units outstanding on the valuation day. The Mutual

Fund will value its investments according to the valuation norms, as specified in Schedule

VIII of the SEBI (MF) Regulations, or such norms as may be specified by SEBI from time to time.

The Net Assets Value (NAV) of the Units under the Scheme shall be calculated as shown

below:

NAV (Rs.) =

Market or Fair

Value of Scheme’s

Investments

+ Current Assets including

Accrued Income

- Current Liabilities

and Provisions


The NAV shall be calculated up to two decimal places. However the AMC reserves the right

to declare the NAVs up to additional decimal places as it deems appropriate. Separate

NAV will be calculated and disclosed for each Option. The NAVs of the Growth Option and

the Dividend Option will be different after the declaration of the first Dividend.

The AMC will calculate and disclose the NAV of the Scheme on all the Business Days.


IV. FEES AND EXPENSES

This section outlines the expenses that will be charged to the Scheme.

A. NEW FUND OFFER (NFO) EXPENSES

These expenses are incurred for the purpose of various activities related to the NFO like

sales and distribution fees paid marketing and advertising, registrar expenses, printing and

stationary, bank charges etc.

In accordance with the provisions of SEBI circular no. SEBI/ IMD/CIR No. 1/64057/06 dated

April 04, 2006 and SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009, the Scheme, being

an open-ended scheme, the NFO expenses has been borne by the AMC/Sponsor.

B. ANNUAL SCHEME RECURRING EXPENSES

These are the fees and expenses for operating the Scheme. These expenses include

Investment Management and Advisory Fee charged by the AMC, Registrar and Transfer

Agents’ fee, marketing and selling costs etc. as given in the table below:

The AMC has estimated that up to 2.25% of the daily net assets of the Scheme will be

charged to the Scheme as expenses. For the actual current expenses being charged, the

Investor should refer to the website of the AMC.

Expense Head % of daily Net

Assets

Investment Management and Advisory fees Upto 2.25%

Trustee fees

Audit fees

Custodian fees

RTA fees

Marketing & Selling expense incl. agent commission

Cost related to investor communications

Cost of fund transfer from location to location

Cost of providing account statements and dividend redemption

cheques and warrants

Costs of statutory Advertisements

Cost towards investor education & awareness (at least 2 bps)

Brokerage & transaction cost over and above 12 bps and 5 bps for

cash and derivative market trades resp.

Goods & Services Tax (GST) on expenses other than investment and

advisory fees

GST on brokerage and transaction cost

Maximum total expense ratio (TER) permissible under Regulation

52(6)(c)

Upto 2.25%

Additional expenses under regulation 52(6A)(c) Upto 0.05%

Additional expenses for gross new inflows from specified cities under

regulation 52(6A)(b)

Upto 0.30%

Direct Plan shall have a lower expense ratio excluding distribution expenses, commission,

etc. and no commission for distribution of Units will be paid/ charged under Direct Plan.

All fees and expenses charged in a Direct Plan (in percentage terms) under various heads

including the investment and advisory fee shall not exceed the fees and expenses charged

under such heads in other than Direct Plan.

Fungibility of expenses: The expenses towards Investment Management and Advisory Fees

under Regulation 52(2) and the various sub-heads of recurring expenses mentioned under

Regulation 52(4) of SEBI (MF) Regulations are fungible in nature. Thus, there shall be no

internal sub-limits within the expense ratio for expense heads mentioned under Regulation

52 (2) and (4) respectively. Further, the additional expenses under Regulation 52(6A)(c)

may be incurred either towards investment & advisory fees and/or towards other expense

heads as stated above.


These estimates have been made in good faith as per the information available to the

Investment Manager and are subject to change inter-se or in total subject to prevailing

Regulations.

The recurring expenses of the Scheme (including the Investment Management and

Advisory Fees) shall be as per the limits prescribed under the SEBI (MF) Regulations. These

are as follows:

Assets under management Slab (In Rs. crore) Total expense ratio limits

On the first Rs. 500 crores of the daily net assets 2.25%

On the next Rs. 250 crores of the daily net assets 2.00%




On the next Rs. 40,000 crores of the daily net

assets

Total expense ratio reduction of 0.05%

for every increase of Rs. 5,000 crores of

daily net assets or part thereof.

On the balance of the assets 1.05%

Expenses charged to the Scheme:

A. In addition to the limits as specified in Regulation 52(6) of SEBI (MF) Regulations or the

Total Recurring Expenses (Total Expense Limit) as specified above, the following costs or

expenses may be charged to the Scheme namely-

Additional expenses for gross new inflows from specified cities

(a) expenses not exceeding of 0.30 per cent of daily net assets, if the new inflows from such

cities as specified by SEBI/AMFI from time to time are at least -

(i) 30 per cent of gross new inflows in the Scheme, or;

(ii) 15 per cent of the average assets under management (year to date) of the Scheme,

whichever is higher:

Provided that if inflows from such cities is less than the higher of sub-clause (i) or sub-

clause (ii), such expenses on daily net assets of the Scheme shall be charged on

proportionate basis.

Provided further that, expenses charged under this clause shall be utilised for distribution

expenses incurred for bringing inflows from such cities.

Provided further that, amount incurred as expense on account of inflows from such

cities shall be credited back to the Scheme in case the said inflows are redeemed

within a period of one year from the date of investment.

Provided further that, additional TER can be charged based on inflows only from retail

investors in terms of SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2018/137 dated October

22, 2018 and SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2019/42 dated March 25, 2019.

For this purpose inflows of amount upto Rs 2,00,000/- per transaction, by individual

investors shall be considered as inflows from “retail investor”.

Additional expenses under regulation 52(6A)(c)

(b) additional expenses, incurred towards different heads mentioned under Regulations

52(2) and 52(4), not exceeding 0.05 per cent of daily net assets of the Scheme;


Asset Management Company Ltd.

Further, brokerage and transaction costs which are incurred for the purpose of execution of

trade and is included in the cost of investment shall not exceed 0.12 per cent in case of

cash market transactions and 0.05 per cent in case of derivatives transactions.


B. Within the Total Expense Limit chargeable to the Scheme, following will be charged to

the Scheme:

(a) GST on other than investment and advisory fees, if any, (including on brokerage and

transaction costs on execution of trades) shall be borne by the Scheme

(b) Investor education and awareness initiative fees of at least 2 basis points on daily net


C. AMC fees charged by Axis AMC to the Scheme will be within the Total Expense Limit as

prescribed by SEBI Regulations, as amended from time to time.

Expenses over and above the prescribed limit shall be charged / borne in accordance with

the Regulations prevailing from time to time.

The mutual fund would update the current expense ratios on its website (www.axismf.com)

atleast three working days prior to the effective date of the change. Investors can refer

‘Total Expense Ratio of Mutual Fund Schemes’ section on https://www.axismf.com/total-

expense-ratio for Total Expense Ratio (TER) details.

Illustration of impact of expense ratio on scheme’s returns.

For any scheme, NAV is computed on a daily basis factoring in all the assets as well as

liabilities of the Scheme (including expenses charged). Expenses charged to the Scheme

bring down its NAV and hence the investor's net returns on a corresponding basis.

Illustration:

Particulars Amount

(in Rs.) No of units

NAV per unit

(in Rs.)

Invested on March 31, 2016 (A) 10,000 1,000 10.00

Value of above investment as on March 31, 2017 (gross

of all expenses) (B) 11,500 1,000 11.50

Total Expenses charged during the year @2% p.a.

(assumed) ( C ) 200 0.20

Value of above investment as on March 31, 2017 (net of

all expenses) (D) = (B-C) 11,300 1,000 11.30

Returns (%) (gross of all applicable expenses) (E) =

((B/A)-1) 15.0%

Returns (%) (net of all applicable expenses) (F) = ((D/A)-

1) 13.0%

Please Note:

The purpose of the above illustration is purely to explain the impact of expense ratio

charged to the Scheme and should not be construed as providing any kind of

investment advice or guarantee of returns on investments.

It is assumed that the expenses charged are evenly distributed throughout the year. The

expenses of the Direct Plan under the Scheme may vary with that of the Regular Plan

under the Scheme.

Calculations are based on assumed NAVs, and actual returns on your investment may

be more, or less.

Any tax impact has not been considered in the above example, in view of the

individual nature of the tax implications. Each investor is advised to consult his or her

own financial advisor.

C. LOAD STRUCTURE

Load is an amount which is paid by the Investor to redeem the Units from the Scheme. This

amount is used by the AMC to pay commission to the distributors and to take care of other

marketing and selling expenses. Load amounts are variable and are subject to change

from time to time. For the current applicable structure, investors may refer to the website of

the AMC (www.axismf.com) or may call at 1800 221 322 and additional contact number

8108622211 from 8.00 am to 8.00 pm (Monday to Friday) and 9.00 am to 6.00 pm (on

Saturday and Sunday) or can contact his distributor.





that there shall be no entry Load for all Mutual Fund Schemes.

Type of

Load

Load chargeable (as %age of NAV)

Entry Load Not Applicable

Exit Load If redeemed/switch out within 12 months from the date of allotment:

- For 10% of investment: Nil

- For remaining investment: 1 %

If redeemed/switch out after 12 months from the date of allotment: Nil

Units issued on reinvestment of Dividends shall not be subject to Load. No load shall be

levied on switches between options of the Scheme.

No exit load will be charged for switch between Axis Triple Advantage Fund - Regular Plan

and Axis Triple Advantage Fund - Direct Plan where transaction is not routed through

Distributor in Axis Triple Advantage Fund - Regular Plan. If the transaction in Regular Plan is

routed through Distributor, then applicable exit load will be charged for switch from Regular

Plan to Direct Plan.

The above mentioned load structure shall be equally applicable to the special products

such as SIP, STP etc. offered by the AMC. Further, for switches between the Growth and

Dividend Option, no load will be charged by the scheme.

Exit load charged to the investors will be credited back to the scheme net of GST.

The Investor is requested to check the prevailing Load structure of the Scheme before

investing.

For any change in Load structure AMC will issue an addendum and display it on the

website/Investor Service Centres.

Under the Scheme, the AMC/Trustee reserves the right to change / modify the Load

structure if it so deems fit in the interest of smooth and efficient functioning of the Mutual

Fund. The AMC/Trustee reserves the right to introduce / modify the Load depending

upon the circumstances prevailing at that time subject to maximum limits as

prescribed under the Regulations.

The Redemption Price however, will not be lower than 93% of the NAV. Any imposition or

enhancement of Load in future shall be applicable on prospective investments only. The

difference between the Redemption price and Sale price at any point in time shall not

exceed the permitted limit as prescribed by SEBI from time to time which is presently 7%

calculated on the Sale Price.

At the time of changing the Load Structure:

1. An Addendum detailing the changes will be attached to Scheme Information

Document and Key Information Memorandum. The addendum may be circulated to all

the distributors / brokers so that the same can be attached to all Scheme Information

Document and Key Information Memorandum already in stock.

2. The addendum will be displayed on the website of the AMC and arrangements will be

made to display the addendum in the form of a notice in all the Investor Service

Centres and distributors / brokers’ office.

3. The introduction of the Exit Load/ CDSC along with the details may be stamped in the

acknowledgement slip issued to the Investors on submission of the application form and

may also be disclosed in the statement of accounts issued after the introduction of such

Load/CDSC.

4. A public notice shall be given in respect of such changes in one English daily

newspaper having nationwide circulation as well as in a newspaper published in the

language of region where the Head Office of the Mutual Fund is situated.

5. Any other measure which the Mutual Fund may consider necessary.


The Trustee/AMC reserves the right to change the load structure subject to the limits

prescribed under the Regulations. Any change in load structure shall be only on a

prospective basis i.e. any such changes would be chargeable only for Redemptions from

prospective purchases (applying first in first out basis).

Transaction Charges

In terms of SEBI circular no. CIR/IMD/DF/13/2011 dated August 22, 2011, as amended from

time to time, Transaction Charge per subscription of Rs. 10,000/– and above shall be

charged from the investors and shall be payable to the distributors/ brokers (who have

opted in for charging the transaction charge) in respect of applications routed through

distributor/ broker relating to Purchases / subscription / new inflows only (lump sum and SIP),

subject to the following:

For Existing / New investors: Rs.100 / Rs.150 as applicable per subscription of Rs. 10,000/–

and above

Transaction charge for SIP shall be applicable only if the total commitment through SIP

amounts to Rs. 10,000/– and above. In such cases the transaction charge would be

recovered in maximum 4 successful installments.

There shall be no transaction charge on subscription below Rs. 10,000/-.

There shall be no transaction charges on direct investments.

The requirement of minimum application amount shall not be applicable if the investment

amount falls below the minimum amount required due to deduction of transaction charges

from the subscription amount.

The Transaction Charge as mentioned above shall be deducted by the AMC from the

subscription amount of the Unit Holder and paid to the distributor and the balance shall be

invested in the Scheme. The statement of account shall clearly state that the net

investment as gross subscription less transaction charge and give the number of units

allotted against the net investment.’

D. WAIVER OF LOAD FOR DIRECT APPLICATIONS

Not applicable


V. RIGHTS OF UNIT HOLDERS

Please refer to SAI for details.




BEING TAKEN BY ANY REGULATORY AUTHORITY

This section shall contain the details of penalties, pending litigation, and action taken by

SEBI and other regulatory and Govt. Agencies.

1. All disclosures regarding penalties and action(s) taken against foreign Sponsor(s) may

be limited to the jurisdiction of the country where the principal activities (in terms of

income / revenue) of the Sponsor(s) are carried out or where the headquarters of the

Sponsor(s) is situated. Further, only top 10 monetary penalties during the last three years

shall be disclosed.

Not Applicable


taken during the last three years or pending with any financial regulatory body or

governmental authority, against Sponsor(s) and/ or the AMC and/ or the Board of

Trustees /Trustee Company; for irregularities or for violations in the financial services

sector, or for defaults with respect to share holders or debenture holders and depositors,

or for economic offences, or for violation of securities law. Details of settlement, if any,

arrived at with the aforesaid authorities during the last three years shall also be

disclosed.

a. A show-cause notice was issued to Axis Bank by RBI dated November 16, 2017

following a statutory inspection which revealed violations of various regulations

of the RBI in relation to assessment of NPAs. After considering the response and

oral submissions of Axis Bank, the RBI found that the charges of non-compliance

were substantiated and imposed a monetary penalty of INR 3,00,00,000 (Rupees

Three Crores Only) on March 5, 2018.

b. The RBI had issued Show Cause Notice vide its letter dated 27.7.2018 with

respect to dispensation of two Children Bank Play Notes of Rs.500 each

dispensed to two customers from ATM at Kidwai nagar branch, Kanpur in non-

compliance to its Master Circular on Detection and Impounding of Counterfeit

Notes dated July 20, 2017 and, the Circular on Sorting of Notes – Installation of

Note Sorting Machines dated November 19, 2009 and the Bank submitted the

response on 16.8.2018. The RBI vide its letter dated 30.1.2019 imposed a penalty

of Rs.20 lakhs and the Bank paid the same on 5.2.2019.

c. The RBI had issued Show Cause Notice vide its letter dated 29.8.2018 for

wrongfully collecting 105 DDs, each for the amount exceeding Rs.50,000,

aggregating Rs.5.56 crores in the account of Satkar Co-operative Credit Society

Ltd. in non-compliance to its Master Circular on ‘Collection of Account Payee

Cheques - Prohibition on Crediting Proceeds to Third Party Account’ dated

January 22, 2014 and for the delay in reporting of above fraud in non-

compliance to Master Directions on ‘Frauds - Classification and Reporting by

commercial banks and select FIs’ dated July 1, 2016. The Bank submitted the


of Rs.2 Crore and the Bank has paid the same on 16.2.2019.

d. The RBI had issued Show cause notice vide its letter dated 23.8.2018 with respect

to non-compliance to guidelines issued dated 20.2.2018 on ‘Time-bound

implementation & Strengthening of SWIFT related operational controls and the

Bank submitted the response on 5.9.2018. The RBI vide its letter dated 25.2.2019

cautioned the Bank stating that any deficiency in this regard will attract penal

action in future.


with SEBI for the violation of SEBI Act, 1992 and Rules and Regulations framed there

under including debarment and/ or suspension and/ or cancellation and/ or imposition

of monetary penalty/adjudication/enquiry proceedings, if any, to which the Sponsor(s)

and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the

directors and/ or key personnel (especially the fund managers) of the AMC and Trustee

Company were/ are a party. The details of the violation shall also be disclosed.

Nil



Fund to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee

Company and/ or any of the directors and/ or key personnel are a party should also be

disclosed separately.

Nil

5. Any deficiency in the systems and operations of the Sponsor(s) and/ or the AMC and/

or the Board of Trustees/Trustee Company which SEBI has specifically advised to be

disclosed in the SID, or which has been notified by any other regulatory agency, shall be

disclosed.

Nil

The Scheme under this Scheme Information Document was approved by the Trustee

Company on January 29, 2010. The Trustee has ensured that the Scheme is a new product

offered by Axis Mutual Fund and is not a minor modification of its existing schemes.

Notwithstanding anything contained in this Scheme Information Document, the provisions of

the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be

applicable.

for and on behalf of

Axis Asset Management Company Ltd.

(Investment Manager to Axis Mutual Fund)

Sd/-

Chandresh Kumar Nigam

Managing Director &

Chief Executive Officer

Date: November 29, 2019


OFFICIAL POINTS OF ACCEPTANCE FOR ONGOING TRANSACTION

AXIS AMC OFFICE ADDRESSES

AHMEDABAD Axis Asset Management Company Limited ,Mithakali Law Garden Road,

Ellisbridge, 3rd Floor, 302, Megha House, Opp. Kotak Bank,Ahmedabad - 380 006.. AGRA:

Axis Asset Management Company Limited ,Shop No. G-7, Ground Floor, Block-19/4, Sanjay

Place, Agra - 282 002. BANGALORE Axis Asset Management Co.Ltd. Ground Floor, G-03 &

G-03A, Prestige Meridian-1, No. 29, M.G. Road, Bangalore - 560 001 BHOPAL Axis Asset

Management Co FM-8 Mansarovar Complex , Khasra No. 27/1/2 , NH-12 , Bhopal , MP.

BHUBANESHWAR Axis Asset Management Co Unit no.3 (Part) Ground Floor Nandighosh

Arena Plot no. 1 Bapuji Nagar Bhubaneshwar Odisha. BORIVALI Axis Asset Management Co.

Ltd, Office No. 201, 2 Floor, REIS Magos, Ramdas Sutrale Marg, Off. Chandavarkar Road,

Borivali (West), Mumbai, Maharashtra - 400092. CHANDIGARH Axis Asset Management

Co.Ltd. 2nd Floor, SCO No 2471, Sector 22C, Chandigarh - 160022. CHENNAI Axis Asset

Management Co. Ltd. 1st Floor , Door no. 168 Anna Salai , Opp. To Spencer Plaza , Chennai

, Tamil Nadu - 600 002., COIMBATORE Axis Asset Management Company Limited, 1st Floor,

Shylaja Complex, 575 DB Road, R. S. Puram, Near Head Post Office, Coimbatore - 641 002.

DEHRADUN Axis Asset Management Co. Ltd., 59/3 First Floor, Rajpur Road, Above IDBI Bank,

Dehradun – 248001. FORT Axis Asset Management Company Limited , 112, 1st Floor, Yusuf

Building, Plot No. 49, Veer Nariman Road, Hutatma Chowk, Fort, Mumbai - 400 001.

GUWAHATI Axis Asset Management Co. ltd 2C 2nd Floor, “Dihang Arcade”, ABC, G.S. Road

Opp Dona Planet Guwahati 781005. HYDERABAD Axis Asset Management Company Ltd,

2nd Floor, Nerella House, Panjagutta, Hyderabad - 500 082. INDORE Axis Asset Management

Co. ltd office No. 211 2nd Floor Megapolis Square Block A 579, M.G Road .opp Treasure

Island Mall Indore 452001 M.P JAIPUR Axis Asset Management Company Ltd, 305, 3rd Floor,

Ganpati Plaza, M. I. Road, Jaipur-302001.Rajasthan. JALANDHAR Axis Asset Management

Co. Ltd , SCO 5-6, 1st Floor, Puda Complex, Opp Suvidha Center, Ladowali Road, Jalandhar

- 144 001 KANPUR Axis Asset Management August Company Limited, 305-306, 3rd Floor, Civil

Lines, Kan Chamber, Kanpur – 208001. KOCHI Axis Asset Management Company

Limited,Door No.40/9336 ,2nd Floor ,Chackos Towers ,Padma Pullepady Road ,Kochi 682

035 Kerala. KOLKATA Axis Asset Management Company Ltd, Ground Floor, Kanak

Building,41, Chowringhee Road Kolkata - 700071. LUCKNOW Axis Asset Management Co.

Ltd, Unit No 5, 6 & 7, Halwasiya's Commerce House, 2nd Floor, Habibullah Estate, 11,

M.G.Marg, Hazratganj, Lucknow - 226001. LUDHIANA Axis Asset Management Co. Ltd. SCO -

28, First Floor, Feroz Gandhi Market, Ludhiana - 141001. MUMBAI Axis Asset Management

Company Limited Axis House, First Floor, C-2, Wadia International Centre, Pandurang

Budhkar Marg, Worli, Mumbai - 400025. MUMBAI (Indiabulls) Axis Asset Management

Company Ltd. Unit No. 902, 9th Floor, Indiabulls Finance Center, Tower 2, Senapati Bapat

Marg, Mumbai - 400013. NAGPUR Axis Asset Management Company Ltd. 1st Floor, "The

Edge", 12, Shankar Nagar, WHC Road, Nagpur-440010 NASIK Axis Asset Management

Company Limited Shop No. G-7,GroundFloor, Rajvee Enclave, Old Pandit Colony, Nasik -

422 001, Maharashtra. NEW DELHI Axis Asset Management Company Ltd. 702-705, 7th Floor,

Narain Manzil, Barakhamba Road, Connaught Place, New Delhi - 110001. PANAJI Axis Asset

Management Company Limited Ground Floor, Shop No. G-7, Edcon Towers, Menezes

Braganza Road, Panjim, Goa - 403001. PUNE Axis Asset Management Company Ltd. Unit

No. 102 & 102-A/B, 1st Floor, Signature Building, Bhandarkar Road, CTS No. 853, Plot No. 195,

Bhamburda, Shivajinagar, Pune - 411005.PATNA Axis Asset Management Company Ltd. D -

309/ 310, 3 Floor, Dumroan Palace, Frazer Road, Patna 800 001. RAIPUR Axis Asset

Management Company Ltd ,Office No. T -10, 3rd Floor, Raheja Towers, Fafadih , Chowk Jail

Road, Raipur, Chhattisgarh - 492001. RAJKOT Axis Asset Management Co. ltd 206, Metro

Plaza Jansata Chowk Near Eagle Travels Moti Tanki Chowk , Rajkot - 360001. SURAT Axis

Asset Management Company Limited,HG-2A, International Trade Centre(ITC), Majura Gate

Crossing, Ring Road ,Surat Gujarat, India. Thane Axis Asset Management Company Ltd,

Manjula Arcade, 2nd Floor, Gokhale Road, Naupada, Thane (West) - 400 602. Vadodara

Axis Asset Management Company Limited 3rd Floor, 306, Emerald Complex, Race Course,

Near Bird Circle, Old Padra Road, Vadodara - 390 007.Amritsar Axis Asset Management Co.

Ltd SCO-25, First floor, District shopping Centre, B-Block, Ranjit Avenue, Amritsar – 143001.

Varanasi Axis Asset Management Company Ltd. 7th Floor, Arihant Complex, D-64/127 C-H,

Sigra, Varanasi, Uttar Pradesh - 221010. Visakhapatnam Axis Asset Management Company

Limited, S3, 3rd Floor, Navaratna Jewel Square, Beside Jyothi, Book Depot, Dwarakanagar,

Visakhapatnam - 530 016.


KARVY FINTECH PRIVATE LIMITED INVESTOR SERVICE CENTERS

Adyar Karvy Fintech Private Limited,New No 51, Gandhi Nagar,First Main Road, Adyar

Chennai-600 020 Agartala, Jagannath Bari Road Bidur Karta Chowmuhani Agartala –

799001 • Agra Deepak Wasan Plaza, Behind Holiday Inn, Opp Megdoot Furnitures, Sanjay

Place, Agra -282002 (U.P) • Ahmedabad, 201,Shail Building, Opp : Madhusudhan House Nr.

Navrangpura Telephone Exchange; Navrangpura Ahmedabad - 380 006 Ajmer, 1-2, II Floor

Ajmer Tower, Kutchary Road Ajmer - 305 001. Akola Shop No-30, Ground Floor, Yamuna

Tarang Complex, N H No 06, Murtizapur Road, Akola 444004 • Alambagh KSM Tower,CP-1

Sinder Dump, Near Alambagh Bus Station, Alambagh, Lucknow 226 005• Aligarh 1st Floor,

Kumar Plaza, Aligarh 202001 Uttar Pradesh • Allahabad RSA Towers, 2nd Floor, Above Sony

TV Showroom, 57, S P Marg, Civil Lines, Allahabad 211001• Alleppey 3rd Floor, J.P.Tower,

17/1424(184), VCSB Road, Zilla Court Bridge Road, Mullackal, Alleppey – 688011, Kerala •

Alwar 101, 1st Floor, Saurabh Towers, Opp. UTI, Road No # 2 Bhagat Singh Circle Alwar-

301001. • Aliganj Hig-67, Sector E, Aliganj, Lucknow 226 024 • Amaravathi Shop No. 21, 2nd

Floor, Gulshan Tower Near Panchsheel Talkies ,Jaistambh Square, Amravati(M.H.) Pincode

444601 Ambala 6349, Nicholson Road, Adjacent Kos Hospital, AmbalaCantt, Ambala

133001 Amritsar 72-A, Taylor'S Road Aga Heritage Gandhi Ground Amritsar - 143 001 Anand

201 Sai Apartment , Behind New Bus Stand Anand Pin code 388001 • Andheri 6 & 7, Andheri

Industrial Estate, Veera Desai Road, Andheri (West), Mumbai 400 053 • Ananthapur # 15-

149, 1st Floor, S R Towers, Opp. Lalithakala Parishat Subash Road, Anantapur 515001 •

Ankleshwar L/2, Keval Shopping Center Old National Highway Ankleshwar 393002 •

Asansol 114/N, G.T. Road, Bhanga Panchil, Near Nokia Care,Asansol - 713303 •

Aurangabad Ramkunj, Railway Station Road Near Osmanpura Circle Aurangabad-431005

•Azamgarh 1st Floor Alkal Building, Opp. Nagaripalika Civil LIne, Azamgarh-276 001 Below

Central Bank of India, SadawartiChowk, Azamgarh 276001 • Balasore M S Das Street,

Gopalgaon, Balasore 756001 • Bangalore 59,Skanda Puttanna Road , Basavanagudi,

Bangalore- 560004 • Bankura Karvy Fintech Pvt Ltd. Plot nos- 80/1/A, NATUNCHATI

MAHALLA, 3rd floor, Ward no-24, Opposite P.C Chandra, Bankura town, Bankura 722101 •

Bareilly 1st Floor, 165, Civil Lines, Opposite Hotel Bareilly Palace, Near RlyStation Road,

Bareilly 243001 • Barhampore (WB) Thakur Market Complex, 72, Naya Sarak

Road,Gorabazar, PO. Berhampore DIST. Murshidabad Barhampore -742101 • Baroda 203

Corner Point , Jetalpur Road, Baroda Gujarat 390 007 • Begusarai Hotel Diamond Surbhi

Complex, Near I.O.C Township Gate, Kapasiya Chowk, Begusarai 851117 • Belgaum CTS No

3939/ A2 A1, Above Raymonds Show Room Club Road, Belgaum – 590001.• Bellary No 1

KHB Colony, Gandhinagar, Bellary 583101 • Behrampur Opp –Divya Nandan Kalyan

Mandap 3rd Labe Dharam Nagar Near Lohiya Motor, Berhampur, Orissa 760001• Betul107,

Hotel Utkarsh, Awasthi Complex, J H College Road, Civil Lines, Beetul 460001 • Bhagalpur

2nd Floor, Chandralok Complex, Ghantaghar, Radha Rani Sinha Road, Bhagalpur 812001 •

Bharuch 147-148, Aditya Complex Near Kasak Circle Bharuch - 392 002 • Bhatinda # 2047-

A, 2nd Floor, Above Max New York Life Insurance The Mall Road Bhatinda 151001 •

Bhavnagar Karvy Fintech Private Limited ,303, Sterling Point, Waghawadi Road, Bhavnagar

– 364001 • Bhilai Shop No-1,First Floor Plot NO-1, Old Sada Office Block Commercial

Complex, Near HDFC Atm, Nehru Nagar- East Post – BHILAI Pin – 490020 • Bhilwara 27-28, 1st

Floor, HiraPanna Complex, Pur Road, Bhilwara 311001 • Bhopal Kay KayBusniss Centre, 133

Zone, I M P Nagar, Bhopal 462021 • Bhubaneswar 2nd & 3rd Floor, Janardan House, A 181,

Saheed Nagar, Bhubaneswar - 751 007, Odisha • Bikaner 2nd Floor, Plot No 70 & 71,

Panchshati Circle, SardulGunj Scheme, Bikaner 334003 • BilaspurShop No 201/202, V RPlaza,

Link Road, Bilaspur 495001 • Bokaro B-1, 1st Floor, Near Sona Chandi Jewellers, City Centre,

Sector 4, Bokaro Steel, City 827004 (Jharkhand). • Borivali Ground Floor Himanshu Bldg.

Sodawala Lane, Lina Chandawarkar Road, Borivali, Mumbai - 400 091. • Burdwan Karvy

Fintech Private Ltd., Anima Bhavan, 1 Floor, Holding No. 42, Sreepally, G. T. Road, Burdwan,

West Bengal - 713103. • Calicut First Floor, Savithri Building, Opposite Fathima Hospital, Bank

Road, Calicut - 673001, Kerala • Chandigarh Sco 2423-2424 Sector 22-C Chandigarh Pin

code 160022 • Chandrapur Shop No 5, Office No 2, 1st Floor, Routs Raghuvanshi Complex,

Beside Azad Garden, Main Road, Chandrapur 442402 • Chembur Shop No. 4, Ground Floor,

Shram Saflya Bldg, N G Acharya Marg, Chembur, Mumbai 400 071 • Chennai (Egmore) Flat

No F11,First Floor, Akshya Plaza,(Erstwhile Harris Road), Opp Chief City Metropolitan Court, #

108, AdhithanarSalai, Egmore, Chennai 600002 • Chennai (T Nagar) G1, Ground Floor No

22, Vijayaraghava Road, Swathi Court, T Nagar, Chennai - 600 017.• Chinsura JC Ghosh

Sarani Near Bus Stand Chinsura 712101 • Cochin Building Nos.39 Ali Arcade ,1st floor, Near

Atlantis Junction, Kizhvana Road, Panampili Nagar, Cochin-682 036 Ernakulum District

Coimbatore 3rd Floor 1056/1057, Jaya Enclave, Avanashi Road, Coimbatore - 641018. •


Cuttack Dargha Bazar, OppDargha Bazar Police Station, Buxibazar, Cuttack 753001 •

Darbhanga Jaya Complex 2nd Floor, above furniture planet, Donar chowk Darbanga-846

003 • Dalhousie 2Nd Floor, Room no-226 R N Mukherjee Road, Kolkata 700 001 • Davangere

# 15/9, Sobagu Complex, 1st Floor, 2nd Main Road, P J Extension, Davangere 577002

•Dehradun Kaulagarh Road, Near Sirmaur Marg, Above Reliance Webworld, Dehradun

248001 • Deoria 1St Floor, Shanti Niketan Opp. Zila Panchayat, Civil Lines Deoria- 274001 •

Dewas 27 Rmo House, Station Road, Dewas 455001• Dhanbad 208, New Market, 2nd

Floor,Katras Road, Bank More, Dhanbad 826001 • Dharwad G7 & 8, Sri Banashankari

Avenue Ramnagar, OppNttfpb Road Dharward 580001 • Dhule Ground Floor Ideal

Laundry, Lane No 4 , Khol Galli, Near Muthoot Finance , Opp Bhavasar General Store, Dhule

– 424001• Dindigul No 9, Old No 4/B, New Agraharam, Palani Road, Dindigul 624001 •

Durgapur MWAV – 16 Bengal Ambuja 2nd Floor, City Centre Durgapur 713216 • Eluru- Karvy

Fintech Private Limited., Dno-23a-7-72/73 ,K K S Plaza, Munukutla Vari Street, Opp Andhra

Hospitals,R R Peta, Eluru – 534002,West Godavari Dist.,Andhra Pradesh• Erode No 4,KMY

Salai, Veerappan Traders Complex, Opp Erode Bus Stand,Sathy Road, Erode 638003 •

Faridabad A-2B, 1st Floor, Nehru Ground, Neelam Bata Road, Nit, Faridabad 121001 •

Ferozpur2nd Floor, Malwal Road, Opp H M School, Ferozpur City 152002• Gandhidham

Office No. 203, Second Floor Bhagwati Chamber, Plot No. 8 Sector - 1/A, Kutch Kala Road,

Gandhidham - 370 201 • Gandhinagar Plot No. - 945/2, Sector - 7/C, Gandhinagar - 382 007

• Gaya 54 Lal Kothi Compound, Near Royal , Surya Hotel,Shree Krishna Road, 2 Floor - North

side, Gaya - 823 001 • Ghaziabad 1st Floor, C-7, Lohia Nagar, Ghaziabad 201001 •

Ghazipur Shubhra Hotel Complex, 2nd Floor, Mahaubagh, Ghazipur 233001 • Gonda Shree

Markit Sahabgunj ,Near Nuramal Station Raod Gonda 271001 • Gorakhpur Above V I P

House Ajdacent A D Girls Inter College, Bank Road, Gorakpur 273001 • Gomti Nagar B-1/2,

Vijay Khand, Near Union Bank of India, Gomti Nagar, Lucknow 226 010 • Gulbarga CTS No.

2913, First Floor,Asian Tower Next To Hotel Aditya,Jagat Station Main Road Gulbarga

585105• Guntur D. No 6-10-27 10/1 Sri Nilayam ,Arundelpet Guntur 522 002 • Gurgaon Shop

No 18, Ground Floor, Sector 14, Opp AKD Tower, Near Huda Office, Gurgaon 122001 •

Guwahati 54 Sagarika Bhawan R G Baruah Road, (AIDC Bus Stop) Guwahati 781024 •

Gwalior 2nd Floor Rajeev Plaza Jayendra Ganj, Lashkar Gwalior 474009. • Haldwani Above

Kapilaz Sweet House Opp LIC Building Pilikothi Haldwani 263139 Uttarakhand • Haridwar 7,

Govindpuri, Opposite 1-india Mart, Above Raj Electricals, Ranipur More, Haridwar–249401 •

Hassan SAS No. 212, Ground Floor, Sampige Road, 1st Cross Near Hotel Southern Star, K. R.

Puram, Hassan - 573 201 • Hissar Sco 71, 1st Floor, Red Square Market, Hissar 125001 •

Hoshiarpur 1st Floor, The Mall Tower, Opp Kapila Hospital, Sutheri Road, Near Maharaj

Palace, Hoshiarpur 146001 • Hubli 22 & 23 , 3rd Floor Eurecka Junction, T B Road Hubli –

580029 • Hyderabad 8-2-596 Karvy Plaza,Avenue 4, Street No 1, Banjara Hills, Hyderabad

500034 • Indore 2nd Floor , 203-205 Balaji Corporates Above ICICI bank, 19/1 New Palasia

Indore – 452001 •Jabalpur 43, Naya Bazar, Opposite Shyam Talkies, Jabalpur (MP) 482001 •

Jaipur S-16 A, 3rd Floor, Land Mark, Opposite Jaipur Club, Mahavir Marg, C- Scheme, Jaipur

302001 • Jalandhar Lower Ground Floor, Office No 3, Arora Prime Tower, Plot No 28, G T

Road, Jalandhar 144004 • Jalgaon 269, Jaee Plaza, 1 st Floor | Baliram Peth| Above

United bank of India| Near kishor Agencies , Jalgaon - 425001 • Jalpaiguri D B C Raod,

Near Rupasree Cinema Hall, Beside Kalamandir, PO & Dist Jalapiguri 735101 • Jammu 5 A/D

Second Extension, opposite Panama Chowk Petrol Pump Gandhi Nagar Jammu 180 012.

Jamnagar 108 Madhav Plaza, Opp SBI Bank, Near Lal Bangalow, Jamnagar 361001 •

Jamshedpur 2nd Floor, R R Square SB Shop Area, near Reliance Foot Print & Hotel-

BS Park Plaza Main Road, Bistupur Jamshedpur—831001 • Jaunpur 119,R N Complex, 2nd

Floor, Near Jay Ceej Crossing, Ummarpur Jaunpur-222 002 • Jhansi 371/01, Narayan Plaza,

Gwalior Road, Near Jeevan Shah Chauraha, Jhansi 284001 • Jodhpur 203, Modi Arcade,

Chupasni Road, Jodhpur 342001 • Junagadh 124/125, Punit Shopping Center, Ranavat

Chowk, Junagadh Gujarat 362001 • Kannur 2nd Floor, Prabhat Complex, Fort Road, Kannur

670001 • Kanpur 15/46, Opp Muir Mills, Civil Lines, Kanpur 208001 • Karaikudi No. 2,Gopi

Arcade 100 Feet Road, Karaikudi 630001 • Karaikudi Gopi Arcade, 100 Feet Road,

Karaikudi 630001 • Karimnagar SRI PROJECTS,Door no 2-10-1298, 2nd Floor,Rathnam

Arcade, Jyothi Nagar,KARIMNAGAR-505001 • Karnal 18/369,Char Chaman Kunjpura road

Karnal-132001 • Karur No 6, Old No 1304 Thiru-Vi-Ka Road, Near G R Kalyan Mahal Karur

639001 • Kharagpur Malancha Road, Beside UTI Bank,Kharagpur 721304 • Kolhapur 605/1/4

E Ward, Near Sultane Chambers, Shahupuri 2nd Lane Kolhapur 416001• Kolkata Apeejay

House ( Beside Park Hotel ) 15 Park Street, C Block,3rd Floor Kolkata-700016 , West Bengal •

Kollam Ground Floor, Vigneshwara Bhavan, Below Reliance Web World, Kadapakkada

Kollam 691008 • Kolkata 1 R N Mukerjee Road, 2nd Floor Room No.- 226, Kolkata - 700 001. •


Kota H No 29, First Floor, Near Lala Lajpat Rai Circle Shopping Centre, Kota, Rajasthan

324007 • Kottayam 1st Floor, CSIAscension Church Complex, Kottayam 686001 • Korba 1st

Floor, 35 Indira Complex, T P Nagar, Korba (CG) 495677 • Koramangala No.408, Ist Floor,

CITA Bldg, Next to Vodafone Office, Koramangala, Bangalore 560 095 • Kurnool Shop No

43, 1st Floor S V Complex, Railway Station Road, Kurnool 518004 • Lucknow 1st Floor, A. A.

Complex, Thaper House, 5 Park Road, Hazratganj, Lucknow – 226 001 • Ludhiana SCO - 136,

First Floor, Above Airtel Show Room, Feroze Gandhi Market, Ludhiana – 141 001. • Malda

Sahistuli Under Ward No-6, English Bazar, Municipality, No-1 Govt Colony, Malda 732101 •

Malleshwaram No.337, GF-3, Karuna Complex, Sampige Road, Opp. New Vegetable

Market, Malleshwaram, Bangalore 560003• Madurai Rakesh Towers, 30-C, Bye Pass Road,

1st Floor, Opp Nagappa Motors, Madurai 625010 • Mangalore Ground Floor, Mahendra

Arcade, Kodial Bail, Mangalore 575003 • Margao 2nd Floor,Dalal Commercial Complex,

Opp Hari Mandir, Pajifond, Margao-Goa 403601 • Mathura AMBEY Crown, IInd Floor In Front

Of BSA College Gaushala Road Mathura – 281001 • Meerut 1st Floor, Medi Centre

Complex, Opp ICICI Bank, Hapur Road, Meerut 250002 • Mehsana Ul-47, Appolo Enclave,

Opp Simandhar Temple, Modhera Char Rasta Highway, Mehsana 384002 • Mirzapur Girja

Sadan,Dankin Gunj Mirzapur 231001 • Moga Near Dharamshala Brat Ghar, Civil Line, Dutt

Road, Moga 142001 • Moradabad Om Arcade, Parker Road, Above Syndicate Bank,

TariKhana Chowk,Moradabad 244001 • Morena Moti Palace, Near Ramjan ki Mandir, Jiwaji

Ganj, Morena 476001 • Mumbai - Office number : 01/04, 24/B, Raja Bahadur Compound,

Ambalal Doshi Marg, Behind Bombay Stock Exchange, Fort Mumbai – 400001 • Muzaffarpur

First Floor, Shukla Complex, Near ICICI Bank, Civil Court Branch, Company Bagh,

Muzaffarpur,Bihar – 842001 • Mysore L-350, Silver Tower, Clock Tower, Ashoka Road, Mysore

570001 • Nadiad 105 GF City Point, Near Paras Cinema, Nadiad 387001 • Nanganallur

Karvy Fintech Private Limited, No.: 155/7, Ullagaram, Medavakkam Main Road , (Opp. to

IDBI ATM) , Madipakkam, Chennai - 600 091. • Nagarcoil 45, East Car Street, 1st Floor,

Nagercoil - 629 001• Nagpur Plot No.2/1, House No. 102/1, Mangaldeep Apartment,

Mata Mandir Road, Opp. Khandelwal Jewellers, Dharampeth, Nagpur - 440 010 •

Namakkal 105/2, Arun Towers, Paramathi Street, Namakkal 637 001 • Nanded Shop No 4,

First Floor, Opp Bank of India, Santkrupa Market, Gurudwara Road, Nanded 431602 • Nasik

S-12, Second Floor, Suyojit Sankul, Sharanpur Road, Nasik 422002 • Navsari 103, 1st floor

Landmark Mall,Near Sayaji Library, Navsari,Gujarat - 396445• New Delhi 305, 3rd Floor New

Delhi House, Bara Khamba Road Connaught Place New Delhi-110 001• Nellore 16-2-158,

3rd Floor, Mogarala Complex, Sunday Market Lane, Pogathota,Nellore - 524001, Andhra

Pradesh.• Nizamabad H No: 5-6-430, First Floor, Above Bank of Baroda, Beside HDFC Bank ,

Ginza View, Hyderabad Road, Nizamabad-503003. • Noida 405 4th Floor , Vishal Chamber ,

Plot no. 1, Sector 18 Noida 201301 • Palghat 12/310, (No.20 & 21), Metro Complex, Head

Post Office Road, Sultanpet, Palghat 678001 • Panipat Java Complex , 1st Floor , above

Vijaya Bank , G. T Road , Panipat-132103 Haryana. • Panjim Karvy Fintech Private Limited

Flat No.1-A, H. No. 13/70 Timotio Bldg Heliodoro Salgado Road, Next to Navhind Bhavan

(Market Area) Panaji Goa – 403001 • Patiala Sco 27 D,Chhoti Baradari Patiala 147001 •

Patna 3A, 3rd Floor, Anand Tower, Beside Chankya Cinema Hall, Exhibition Road, Patna

800001 • Pathankot 2nd Floor, Sahni Arcade Complex, Adj. Indra Colony Gate Railway

Road, City Pathankot- 145001 • Pollachi S S Complex, New Scheme Road, Pollachi 642002 •

Pondicherry First Floor No.7, Thiayagaraja Street Pondicherry 605001 • Pudukottai Sundaram

Masilamani Towers, TS No 5476-5479, PM Road, Old Tirumayam Salai, Near Anna Statue,

Jublie Arts, Pudukottai 622001 •Pune Office # Mozaioc Building 3rd Floor CTS No:1216/1FC

Road, Opposite- FC Collage Main Gate Above Allahabad Bank, Shivaji Nagar ,Pune -

411004 • Raipur Office No. S-13, Second Floor,Raheja Tower, Fafadih Chowk, Jail Road,

Raipur - 492 001.• Rajahmundry Dr No 61-4, First Floor, Rangachary Street, T Nagar,

Rajahmundry 533101 • Rajapalayam Sri Ganpathy Complex 14B/5/18, T P Mills Road

Rajapalayam 626117 •Rajkot 302, Metro Plaza, Near Moti Tanki Chowk , Rajkot, Gujarat -

360 001 •Ranchi Room No. 307, 3 rd Floor, Commerce Towers, Beside Mahabir Towers

Main Road Ranchi - 834 001• Ratlam 1 Nagpal Bhavan, Freeganj Road, Tobatti, Ratlam

457001 • Renukoot Shop No 18, Near Complex Birla Market, Renukoot 231217 • Rewa 1st

Floor, Angoori Building, Besides Allahabad Bank,Trans University Road, Civil Lines, Rewa

485001 • Rohtak 1st Floor, Ashoka Plaza, Delhi Road, Rohtak 124001 • Roorkee Shree

Ashadeep Complex, 16 Civil Lines, Near Income Tax Office, Roorkee, Uttaranchal 247667 •

Rourkela 1st Floor, Sandhu Complex, Kanchery Road, Udit Nagar, Rourkela 769012 • Sagar

1st floor satyam complex,infront of cantt shopping mall5 civil lines Sagar (MP)470002. •

Saharanpur 18 Mission Market, Court Road, Saharanpur 247001 Uttar Pradesh • Salem No.

3/250 "F" Brindavan Road, 6th Cross , Perumal Kovil Back side, Fair Land's Salem - 636016,


Tamil Nadu. • Sambalpur Karvy Fintech Private Limited Koshal Builder Complex, Near Goal

Bazaar Petrol Pump, Sambalpur - 768 001. • Satna 1St Floor, Gopal Complex, Near Busstand

Rewa Road Satna (M.P) -485 001 • Secunderabad C/o. Karvy Fin. Ser. Ltd. 1st Floor,

Thirumala, Complex Paradise Circle, S.D. Road, Opp. Hotel Kamat, Secunderabad - 500 003

• Shaktinagar 1st/A-375, V V Colony Dist Sonebhadra Shaktinagar 231222 • Shivpuri 1st

Floor, M P R P Building, Near Bank of India, Shivpuri 473551 • Shillong Mani Bhawan, Thana

Road, Lower Police Bazar, Shillong 739001 • Shimla Triveni Building, By Pas Chowk, Khallini,

Shimla 171002 • Shimoga Uday Ravi Complex, LLR Road, Durgi Gudi, Shimoga 577201 •

Sikar 1st Floor, Super Towers Behind Ram Mandir, Station Road, Sikar 332001 • Silchar 1st

Floor, Chowchakra Complex, N N Dutta Road, Premtala Silchar 788001 • Siliguri Nanak

Complex, Near Church Road, Sevoke Road, Siliguri 734001 • Sitapur 12/12-A Surya

Complex, Arya Nagar, Opp Mal Godam, Sitapur 261001 • Sivakasi 363, Thiruthangal Road,

Opp TNEB,Sivakasi 626 123 • Solan Sahni Bhawan, Adjacent Anand Cinema Complex, The

Mall Solan 173212, • Solapur Siddeshwar Secrurities, No 6, Vaman Road, Vijaypur Road,

Vaman Nagar,Solapur 413004 • Surat Office No: 516, 5th Floor, Empire State Building, Near

Parag House, UdhnaDarwaja, Ring Road, Surat 395002 • Sonepat 205 R Model Town, Above

Central Bank of India, Sonepat • Sri Ganganagar 35-E-Block, Opp Sheetla Mata Vatika, Sri

Ganga Nagar 335001 • Srikakulam 4-1-28/1, Venkateshwara Colony Day & Night Junction,

Srikakulam 532001 • Sultanpur Rama Shankar Complex, Civil Lines, Faizabad Road,

Sultanpur 228001 • Thanjavur Nalliah Complex, No 70, Srinivasam Pillai Road, Thanjavur

613001 • Thane 101, Yashwant Building, Ram Ganesh Godkari Path, Ram Maruti Road,

Naupada, Thane - 400 602. • T Nagar G1, Ground Floor, No 22, Vijayaraghava Road Swathi

Court, T Nagar Chennai 600 017• Thodupuzha First Floor, Pulimoottil Pioneer Pala Road,

Thodupuzha 685584 • Tirunelveli Jeney Building, 55/18, S N Road, Near Arvind Eye Hospital,

Tirunelveli 627001•Tirupur First Floor, 224 A, S Selvakumar Departmental Stores, 1st Floor,

Kamaraj Road,Opp To Cotton Market Complex, Tirupur 641604 • Tirupathi H.No:12-3-330

2nd Floor , Tilak Road Near Four Piller Mandapam Tirupathi : 517501 • Tiruvalla 2nd Floor,

Erinjery Complex, Near Kotak Securites, Ramanchira Tiruvalla 689107 • Trichur 2nd Floor,

Brother's Complex, Near DhanaLaxmi Bank Head Office, Naikkanal Junction, Trichur 680001

• Trichy Sri Krishna Arcade, 1st Floor, 60 Thennur High Road, Trichy 620017 • Trivandrum 2nd

Floor, Akshaya Towers, Above Jetairways, Sasthamangalam, Trivandrum 695010 • Tuticorin 4

B, A34, A37, Mangalmal, Mani Nagar,Opp Rajaji Park, Palayamkottai Road, Tuticorin 628003

• Udaipur 201-202, Madhav Chambers, Opp G P O Chetak Circle, Madhuban, Udaipur

313001 • Ujjain 101, Aastha Tower, 13/1,Dhanwantri Marg, Free Gunj Ujjain 456010 • Valsad

Shop No 2, Phiroza Corner Opp Next Showroom; Tithal Road Valsad 396001 • Vapi Shop No

5, Phikhaji Residency, Opp DCB Bank,Vapi Silvassa Road, Vapi 396195 • Varanasi D-64/132,

KA 1st Floor, Anant Complex, Sigra, Varanasi 221010 • Vashi A Wing, Shop No 205, 1st Floor,

Vashi Plaza,Sector 17, Vashi, Navi Mumbai - 400 073 . • Vellore No 1, M N R Arcade,

Officer's Line, Krishna Nagar, Vellore 632001 • Vijayawada 39-10-7 Opp Municipal Water

Tank, Labbipet, Vijayawada 520010 • Vile Parle 104, Sangam Arcade, V P Road,

Opp.Railway Station, Above Axis Bank, Vile Parle (West), Mumbai 400 056 •Visakhapatnam

47-14-5/1 Eswar Paradise, Dwaraka Nagar, Main Road, Visakhapatnam 530016

•Vijayanagaram Soubhagya, 19-6-13/1, llnd Floor, Near SBI Fort Branch, Vizianagaram

535002 • Warangal Karvy Fintech Pvt.Ltd. H. No. 1-8-533, Beside: Suprabha Hotel,

Nakkalagutta, Ward No.1, Hanamkonda, Waranagal - 506 001, Telangana. • Yamuna

Nagar Jagdhari Road, Above UCO Bank, Near D A V Grils College, Yamuna Nagar 135 001.

Karvy, Registrar & Transfer Agents of Axis Mutual Fund having its office at Unit: Axis Mutual

Fund, Karvy Selenium, Tower B, Plot number 31 & 32, Financial District, Gachibowli,

Hyderabad 500 008 is the collection centre of transactions / request for electronic

transactions received from specified banks, financial institutions, distribution channel etc.

(mobilized on behalf of their clients) with whom the AMC has entered or may enter into

specific arrangements for purchase/ sale/switch of units.

Website of the AMC (www.axismf.com) shall be official point of acceptance for existing

investors.

In addition to the existing official points of acceptance (“OPA”) for accepting transactions

in the units of the schemes of the Axis Mutual Fund as disclosed in the SID,

http://www.mfuindia.com/MFUPOS i.e. online transaction portal of MFU and the authorized

Points of Service (“POS”) designated by MUFI shall also be the OPA.



Axis Asset Management Company Limited (Investment Manager to Axis Mutual Fund) Axis

House, 1st Floor, C-2 Wadia International, Pandurang Budhkar Marg, Worli, Mumbai -

400025, India.

TEL 022 4325 5100 FAX 022 4325 5199 TOLL FREE 1800 221322 and additional contact number

8108622211(Chargeable) EMAIL [email protected] WEB www.axismf.com

Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts

Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual

Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC) Risk

Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the

operation of the scheme.

Mutual Fund Investments are subject to market risks, read all scheme related documents

carefully.


1 Axis Liquid Fund


AXIS LIQUID FUND

An Open ended Liquid Scheme

Continuous offer for units at NAV based prices


Regular income over short term

Investment in debt and money market instruments






Pandurang Budhkar Marg, Worli, Mumbai - 400 025

www.axismf.com





Management Company (AMC). The Units being offered for public Subscription have not been approved or


Document.


prospective Investor ought to know before investing. Before investing, Investors should also ascertain about



The Investors are advised to refer to the Statement of Additional Information (SAI) for details of Axis Mutual





This Scheme Information Document is dated November 27, 2020.


2 Axis Liquid Fund

TABLE OF CONTENTS

HIGHLIGHTS/SUMMARY OF THE SCHEME .............................................................................................. 3

I. INTRODUCTION ............................................................................................................................ 5

A. RISK FACTORS .............................................................................................................................. 5

B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME ..................................................... 8

C. SPECIAL CONSIDERATIONS, if any ............................................................................................ 8

D. DEFINITIONS .................................................................................................................................. 9

E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY ................................................ 13

II. INFORMATION ABOUT THE SCHEME ....................................................................................... 14

A. TYPE OF THE SCHEME ................................................................................................................ 14

B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? ..................................................... 14

C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? .................................................................. 14

D. WHERE WILL THE SCHEME INVEST? ......................................................................................... 32

E. WHAT ARE THE INVESTMENT STRATEGIES? ............................................................................. 37

F. FUNDAMENTAL ATTRIBUTES ...................................................................................................... 42

G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? .............................................. 43

H. WHO MANAGES THE SCHEME? .............................................................................................. 43

I. WHAT ARE THE INVESTMENT RESTRICTIONS? ......................................................................... 44

J. CREATION OF SEGREGATED PORTFOLIO .............................................................................. 48

K. HOW HAS THE SCHEME PERFORMED? ................................................................................... 52

L. Additional Scheme Related Disclosures .............................................................................. 54

III. UNITS AND OFFER ...................................................................................................................... 56

A. NEW FUND OFFER (NFO) .............................................................................................................. 56

B. ONGOING OFFER DETAILS ............................................................................................................ 66

C. PERIODIC DISCLOSURES ............................................................................................................... 94

D. COMPUTATION OF NAV ............................................................................................................... 97

IV. FEES AND EXPENSES .................................................................................................................. 98

A. NEW FUND OFFER (NFO) EXPENSES ........................................................................................ 98

B. ANNUAL SCHEME RECURRING EXPENSES ............................................................................. 98

C. LOAD STRUCTURE .................................................................................................................... 100

D. WAIVER OF LOAD FOR DIRECT APPLICATIONS .................................................................. 102

V. RIGHTS OF UNITHOLDERS ....................................................................................................... 103



BEING TAKEN BY ANY REGULATORY AUTHORITY ............................................................................. 104

3 Axis Liquid Fund



To provide a high level of liquidity with reasonable returns commensurating with low risk

through a portfolio of money market and debt securities. However, there can be no

assurance that the investment objective of the scheme will be achieved.

Liquidity


Business Days on an ongoing basis. Under normal circumstances the AMC shall dispatch the

Redemption proceeds within 10 Business Days from the date of receipt of request from the

Unit holder.

Benchmark

Nifty Liquid Index


The AMC will calculate the NAVs for all the Calendar Days. The Asset Management

Company (“AMC”) shall update the NAVs on its website (www.axismf.com) and of the

Association of Mutual Funds in India (“AMFI”) (www.amfiindia.com) before 11.00 p.m. every

Business Day. If the NAVs are not available before the commencement of Business Hours on

the following day due to any reason, the Mutual Fund shall issue a press release giving

reasons and explaining when the Mutual Fund would be able to publish the NAV.

The AMC will disclose the portfolio of the Scheme (alongwith ISIN) on fortnightly and half

yearly basis on the website of the Mutual Fund and AMFI within 5 days of every fortnight

and within 10 days from the close of each half year (i.e. 31st March and 30th September)

respectively in a user-friendly and downloadable spreadsheet format. Further, AMC shall

publish an advertisement, in an all India edition of one national English daily newspaper

and in one Hindi newspaper, every half year disclosing the hosting of the half-yearly

statement of its schemes portfolio on the website of the Mutual Fund and AMFI and the

modes through which unitholder can submit a request for a physical or electronic copy of

the statement of scheme portfolios.







Minimum Application Amount for purchase / swtich-in:

Growth Option: Rs. 500 and in multiples of Re. 1/- thereafter

All other options: Rs. 5,000 and in multiples of Re. 1/- thereafter

Minimum Additional Purchase for purchase / swtich-in:

Growth Option: Rs. 500 and in multiples of Re. 1/- thereafter

All other options: Rs.1000 and in multiples of Re. 1/- thereafter




Plans

Axis Liquid Fund – Regular Plan

Axis Liquid Fund – Direct Plan

Both plans will have a common portfolio.

Each Plan offers the following Options:


4 Axis Liquid Fund

• Growth option

• Dividend option

Options Sub-options

Growth Nil

Dividend Daily (reinvestment)

Weekly (payout and reinvestment)

Monthly (payout and reinvestment)

Direct Plan




All categories of investors (whether existing or new Unitholders) as permitted under the

Scheme Information Document of the Scheme are eligible to subscribe under Direct Plan.

Investments under Direct Plan can be made through various modes offered by the Fund for

investing directly with the Fund {except Platform(s) where investors’ applications for

subscription of units are routed through Distributors}.


Loads


Exit Load: w.e.f. October 20, 2019

Investor exit upon Subscription Exit load as a % of redemption proceeds

Day 1 0.0070%

Day 2 0.0065%

Day 3 0.0060%

Day 4 0.0055%

Day 5 0.0050%

Day 6 0.0045%

Day 7 onwards 0.0000%

The aforesaid exit load shall be applicable on a prospective basis to all fresh investments

made in the Scheme on or after the effective date including registered Systematic Transfer

Plans (STPs), Systematic Withdrawal Plans (SWPs) etc. falling due on or after the effective

date. SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 has

decided that there shall be no entry Load for all Mutual Fund Schemes.

For more details on Load Structure, refer to the paragraph ‘Load Structure’.

5 Axis Liquid Fund

I. INTRODUCTION

A. RISK FACTORS

i. Standard Risk Factors

Investment in Mutual Fund Units involves investment risks such as trading volumes,






Axis Liquid Fund is only the name of the Scheme and does not in any manner indicate

either the quality of the Scheme or its future prospects and returns.



Fund.

Axis Liquid Fund is not a guaranteed or assured return Scheme.




Money Market Instruments and Derivatives 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 depends upon the coupon and

maturity of the security. It also depends upon the yield level at which the security is being

traded.



coupon of the bond.












Credit Risk: This is the risk associated with the issuer of a debenture/bond or a Money Market

Instrument defaulting on coupon payments or in paying back the principal amount on

maturity. Even when there is no default, the price of a security may change with expected

changes in the credit rating of the issuer. It is to be noted here that a Government Security

is a sovereign security and is the safest. Corporate bonds carry a higher amount of credit

risk than Government Securities. Within corporate bonds also there are different levels of

safety and a bond rated higher by a particular rating agency is safer than a bond rated

lower by the same rating agency.

Liquidity Risk on account of unlisted securities: The liquidity and valuation of the Scheme

investments due to their holdings of unlisted securities may be affected if they have to be

sold prior to their target date of divestment. The unlisted security can go down in value

before the divestment date and selling of these securities before the divestment date can

lead to losses in the portfolio.



movements in NAV.

6 Axis Liquid Fund


The Scheme may invest in domestic securitized debt such as Asset Backed Securities

(“ABS”) or Mortgage Backed Securities (“MBS”). ABS are securitized debts where the

underlying assets are receivables arising from various loans including automobile loans,

personal loans, loans against consumer durables, etc. MBS are securitized debts where the

underlying assets are receivables arising from loans backed by mortgage of residential /

commercial properties.





4. Personal Loans

5. Corporate Loans



classes, but repossession becomes difficult. On the other hand, repossession and

subsequent recovery of commercial vehicles and other auto assets is fairly easier and

better compared to mortgages. Asset classes like personal loans, credit card receivables

are unsecured and in an economic downturn may witness higher default. A corporate

loan/receivable, depend upon the nature of the underlying security for the loan or the

nature of the receivable and the risks correspondingly fluctuate.

The rating agencies define margins, over collateralisation and guarantees to bring risk in

line with similar AAA rated securities. The factors typically analyzed for any pool are as

follows:


loan and the average ticket size of the loan. A very low ticket size might mean more

costs in originating and servicing of the assets.

b. Diversification: Diversification across geographical boundaries and ticket sizes might

result in lower delinquency.


own equity. The lower this value the better it is. This suggests that where the borrowers

own contribution of the asset cost is high; the chances of default are lower.




Prepayment Risk: This arises when the borrower pays off the loan sooner than expected.

When interest rates decline, borrowers tend to pay off high interest loans with money

borrowed at a lower interest rate, which shortens the average maturity of ABS. However,

there is some prepayment risk even if interest rates rise, such as when an owner pays off a

mortgage when the house is sold or an auto loan is paid off when the car is sold.



lower rate.

Risks associated with investments in Derivatives Transactions

Credit Risk: The credit risk is the risk that the counter party will default in its obligations and is

generally small as in a Derivative transaction there is generally no exchange of the principal

amount.


interest rates.

Basis Risk: When a bond is hedged using a Derivative, the change in price of the bond and

7 Axis Liquid Fund

the change in price of the Derivative may not be fully correlated leading to basis risk in the

portfolio.

Liquidity risk: During the life of the Derivative, the benchmark might become illiquid and

might not be fully capturing the interest rate changes in the market, or the selling,

unwinding prices might not reflect the underlying assets, rates and indices, leading to loss of

value of the portfolio.

Model Risk: The risk of mis–pricing or improper valuation of Derivatives.

Trade Execution: Risk where the final execution price is different from the screen price

leading to dilution in the spreads and hence impacting the profitability of the reverse

arbitrage strategy.

Systemic Risk: For Derivatives, especially OTC ones the failure of one Counter Party can put

the whole system at risk and the whole system can come to a halt.

Derivative products are leveraged instruments and can provide disproportionate gains as

well as disproportionate losses to the investor. Execution of strategies depends upon the

ability of the fund manager to identify such opportunities. Identification and execution of

the strategies to be pursued by the fund manager involve uncertainty and decision of fund

manager may not always be profitable. No assurance can be given that the fund

manager will be able to identify or execute such strategies.

The risks associated with the use of Derivatives are different from or possibly greater than,

the risks associated with investing directly in securities and other traditional investments.

Risk associated with Short Selling & Securities Lending

Securities Lending is a lending of securities through an approved intermediary to a borrower

under an agreement for a specified period with the condition that the borrower will return

equivalent securities of the same type or class at the end of the specified period along with

the corporate benefits accruing on the securities borrowed. There are risks inherent in

securities lending, including the risk of failure of the other party, in this case the approved

intermediary to comply with the terms of the agreement. Such failure can result in a

possible loss of rights to the collateral, the inability of the approved intermediary to return

the securities deposited by the lender and the possible loss of corporate benefits accruing

thereon.

Short-selling is the sale of shares or securities that the seller does not own at the time of

trading. Instead, he borrows it from someone who already owns it. Later, the short seller

buys back the stock/security he shorted and returns the stock/security to the lender to close

out the loan. The inherent risks are Counterparty risk and liquidity risk of the stock/security

being borrowed. The security being short sold might be illiquid or become illiquid and

covering of the security might occur at a much higher price level than anticipated, leading

to losses.

Risk factors associated with repo transactions in Corporate Bonds














8 Axis Liquid Fund





Fund has no control.”

Risk Associated with investment in Foreign Securities

Subject to necessary approvals, the Scheme may also invest in overseas financial assets as

permitted under the applicable regulations. The value of an investment in a foreign issuer’s

securities may depend on general global economic factors or specific economic and

political factors relating to the country or countries in which the foreign issuer operates. To

the extent the assets of the Scheme are invested in overseas financial assets, there may be

risk associated with fluctuation in foreign exchange rates, restriction on repatriation of

capital and earnings under the exchange control regulations and transaction procedure in

overseas market. The repatriation of capital to India may also be hampered by changes in

regulations concerning exchange controls, political circumstances, bi-lateral conflicts or

prevalent tax laws. Since the Scheme would invest only partially in foreign securities, there

may not be readily available and widely accepted benchmarks to measure performance

of such Scheme. To manage risks associated with foreign currency and interest rate

exposure, the Scheme may use derivatives for efficient portfolio management and hedging

and portfolio rebalancing and in accordance with conditions as may be stipulated under

the Regulations and by RBI from time to time.

Investment in foreign securities carries currency risk. Currency risk is a form of risk that arises

from the change in price of one currency against other. The exchange risk associated with

a foreign denominated instrument is a key element in foreign investment. This risk flows from

differential monetary policy and growth in real productivity, which results in differential

inflation rates. The risk arises because currencies may move in relation to each other.



more than 25% of the corpus of the Schemes). The aforesaid conditions should be complied












this regard.


Prospective investors should study this Scheme Information Document and Statement of

Additional Information carefully in its entirety and should not construe the contents


and are advised to consult their legal, tax, financial and other professional advisors to

determine possible legal, tax, financial or other considerations of subscribing to or

redeeming Units, before making a decision to invest/redeem/hold Units.

The Scheme related documents i.e. SID/ KIM/ SAI or the units of the Fund are not









9 Axis Liquid Fund




other legal requirements. Accordingly the Scheme related documents do not constitute

an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is

not lawful or in which the person making such offer or solicitation is not qualified to do

so or to anyone to whom it is unlawful to make such offer or solicitation as per

applicable law.

The AMC, Trustee or the Mutual Fund have not authorized any person to issue any

advertisement or to give any information or to make any representations, either oral or

written, other than that contained in this Scheme Information Document or the

Statement of Additional Information or as is provided by the AMC in connection with

this offering. Prospective Investors are advised not to rely upon any information or

representation not incorporated in the Scheme Information Document or Statement of

Additional Information or as provided by the AMC as having been authorized by the

Mutual Fund, the AMC or the Trustee.

Redemption due to change in the fundamental attributes of the Scheme or due to any

other reasons may entail tax consequences. The Trustee, AMC, Mutual Fund, their

directors or their employees shall not be liable for any such tax consequences that may

arise due to such Redemptions.

The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for

any of the tax consequences that may arise, in the event that the Scheme is wound up

for the reasons and in the manner provided in Statement of Additional Information.





practice currently in force in India as on the date of this Scheme Information Document

and the Unit holders should be aware that the relevant fiscal rules or their

interpretation may change. As is the case with any investment, there can be no

guarantee that the tax position or the proposed tax position prevailing at the time of an

investment in the Scheme will endure indefinitely. In view of the individual nature of tax

consequences, each Unit holder is advised to consult his / her own professional tax

advisor.

The Mutual Fund may disclose details of the investor’s account and transactions there

under to those intermediaries whose stamp appears on the application form or who

have been designated as such by the investor. In addition, the Mutual Fund may

disclose such details to the bankers, as may be necessary for the purpose of effecting

payments to the investor. The Fund may also disclose such details to regulatory and

statutory authorities/bodies as may be required or necessary.


companies make substantial investment, either directly or indirectly in the Scheme.

Redemption of Units by these entities may have an adverse impact on the

performance of the Scheme. This may also affect the ability of the other Unit holders to

redeem their units.

As the liquidity of the Scheme investments may sometimes be restricted by trading

volumes and settlement periods, the time taken by the Fund for Redemption of Unit

may be significant in the event of an inordinately large number of Redemption

Requests or of a restructuring of the Scheme portfolio. In view of this, the AMC / Trustee

has the right to limit redemptions under certain circumstances - please refer to the

paragraph “Suspension/Restriction on Redemption of Units of the Scheme”.

Pursuant to the provisions of Prevention of Money Laundering Act, 2002, if after due



the Unit holder the AMC shall have absolute discretion to report such suspicious

transactions to FIU-IND (Financial Intelligence Unit – India) and / or to freeze the folios of

the investor(s), reject any application(s)/redemptions / allotment of Units.

D. DEFINITIONS

"AMC" or "Asset

Management


provisions of the Companies Act, 1956 and approved by Securities

10 Axis Liquid Fund

Company" or

"Investment

Manager"

and Exchange Board of India to act as the Asset Management

Company for the scheme(s) of Axis Mutual Fund.

"Applicable NAV" The NAV applicable for purchase or redemption or switching of Units

based on the time of the Business Day on which the application is

time stamped.



(ii) A day on which the banks in Mumbai and /or RBI are closed for

business /clearing;

(iii) A day on which the National Stock Exchange of India Ltd.

and/or BSE Ltd., Mumbai are closed;

(iv) A day which is a public and /or bank Holiday at an Investor

Service Centre/Official Point of Acceptance where the

application is received;

(v) A day on which Sale / Redemption / Switching of Units is


(vi) A day on which normal business cannot be transacted due to

storms, floods, bandhs, strikes or such other events as the AMC

may specify from time to time.

Further, the day(s) on which the money markets are closed / not

accessible, shall not be treated as Business Day(s).

The AMC reserves the right to declare any day as a Business Day or

otherwise at any or all Investor Service Centres/Official Points of

Acceptance.

"Business Hours" Presently 9.30 a.m. to 5.30 p.m. on any Business Day or such other

time as may be applicable from time to time.

"Custodian" A person who has been granted a certificate of registration to carry

on the business of custodian of securities under the Securities and

Exchange Board of India (Custodian of Securities) Regulations 1996,

which for the time being is Deutsche Bank AG.


"Deed of Trust" The Deed of Trust dated June 27, 2009 made by and between Axis

Bank Ltd. and Axis Mutual Fund Trustee Ltd. thereby establishing an

irrevocable trust, called Axis Mutual Fund.

"Derivative" Derivative includes (i) a security derived from a debt instrument,

share, loan whether secured or unsecured, risk instrument or

contract for differences or any other form of security; (ii) a contract

which derives its value from the prices, or index of prices, or

underlying securities.


“Dividend Sweep


Facility given to the Unit holders to automatically invest the dividend

by eligible source scheme into eligible target scheme of Mutual

Fund.


Investor” (FPI)

A person who satisfies the eligibility criteria prescribed under

regulation 4 of SEBI (Foreign Portfolio Investors) Regulations, 2014 and

has been registered under Chapter II of these regulations, which

shall be deemed to be an intermediary in terms of the provisions of

the Act.

"Floating Rate

Debt Instruments"

Floating rate debt instruments are debt securities issued by Central

and / or State Government, corporates or PSUs with interest rates

that are reset periodically. The periodicity of the interest reset could

be daily, monthly, quarterly, half-yearly, annually or any other

periodicity that may be mutually agreed with the issuer and the

Fund. The interest on the instruments could also be in the nature of

fixed basis points over the benchmark gilt yields.

“Foreign

Securities”

ADRs / GDRs/ equity / debt securities of overseas companies listed

on the recognized stock exchanges overseas or other securities as

may be specified and permitted by SEBI and/or RBI from time to

11 Axis Liquid Fund

time.

"Gilts" or

"Government

Securities"

Securities created and issued by the Central Government and/or a

State Government (including Treasury Bills) or Government Securities

as defined in the Public Debt Act, 1944, as amended or re-enacted

from time to time.


“Holiday” Holiday means the day(s) on which the banks (including the Reserve

Bank of India)are closed for business or clearing in Mumbai or their

functioning is affected due to a strike / bandh call made at any part

of the country or due to any other reason.

"Investment

Management

Agreement"

The agreement dated June 27, 2009 entered into between Axis

Mutual Fund Trustee Ltd. and Axis Asset Management Company Ltd.,

as amended from time to time.

"Investor Service

Centres" or "ISCs"

Offices of Axis Asset Management Company Ltd. or such other

centres / offices as may be designated by the AMC from time to

time.

"Load" In the case of Redemption / Switch out of a Unit, the sum of money

deducted from the Applicable NAV on the Redemption / Switch out

(Exit Load) and in the case of Sale / Switch in of a Unit, a sum of

money to be paid by the prospective investor on the Sale / Switch in

of a Unit (Entry Load) in addition to the Applicable NAV.

Presently, entry load cannot be charged by mutual fund schemes.

"Money Market

Instruments"


Government securities having an unexpired maturity upto one year,

call or notice money, certificate of deposit, usance bills and any

other like instruments as specified by the Reserve Bank of India from

time to time.

"Mutual Fund" or

"the Fund"

Axis Mutual Fund, a trust set up under the provisions of the Indian

Trusts Act, 1882.

"Net Asset Value"

or "NAV"

Net Asset Value per Unit of the Scheme, calculated in the manner

described in this Scheme Information Document or as may be

prescribed by the SEBI (MF) Regulations from time to time.

"NRI" A Non-Resident Indian or a Person of Indian Origin residing outside

India.

“Overseas Citizen

of India” / “OCI”

Means a person registered as an Overseas Citizen of India

Cardholder by the Central Government under section 7A of The

Citizenship Act, 1955.

"Official Points of

Acceptance"

Places, as specified by AMC from time to time where application for

Subscription / Redemption / Switch will be accepted on ongoing

basis.

"Person of Indian

Origin"

A citizen of any country other than Bangladesh or Pakistan, if (a) he

at any time held an Indian passport; or (b) he or either of his parents

or any of his grandparents was a citizen of India by virtue of

Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c)

the person is a spouse of an Indian citizen or person referred to in

sub-clause (a) or (b).

"Rating" Rating means an opinion regarding securities, expressed in the form

of standard symbols or in any other standardized manner, assigned

by a credit rating agency and used by the issuer of such securities,

to comply with any requirement of the

SEBI (Credit Rating Agencies) Regulations, 1999.

"RBI" Reserve Bank of India, established under the Reserve Bank of India

Act, 1934, (2 of 1934)

"Registrar and

Transfer Agent" or

Registrar

KFin Technologies Pvt. Ltd., Hyderabad, currently acting as registrar

to the Scheme, or any other Registrar appointed by the AMC from

time to time.

"Redemption” /

“Repurchase"


“Regulatory

Agency”

GOI, SEBI, RBI or any other authority or agency entitled to issue or

give any directions, instructions or guidelines to the Mutual Fund

12 Axis Liquid Fund



"Statement of

Additional

Information" or

"SAI"

The document issued by Axis Mutual Fund containing details of Axis

Mutual Fund, its constitution, and certain tax, legal and general

information. SAI is legally a part of the Scheme Information

Document.

"Sale” /

“Subscription"

Sale or allotment of Units to the Unit holder upon subscription by the

Investor / applicant under the Scheme.

"Scheme" Axis Liquid Fund

“Scheme

Information

Document”

This document issued by Axis Mutual Fund, offering for Subscription of

Units of Axis Liquid Fund (including Options there under)



"SEBI (MF)

Regulations" or

"Regulations"

Securities and Exchange Board of India (Mutual Funds) Regulations,

1996, as amended from time to time.

"Short Selling" Short selling means selling a stock which the seller does not own at

the time of trade.


"Switch" Redemption of a unit in any scheme (including the Plans / options

therein) of the Mutual Fund against purchase of a unit in another

scheme (including the Plans /options therein) of the Mutual Fund,

subject to completion of Lock-in Period, if any.

"Stock Lending" Lending of securities to another person or entity for a fixed period of

time, at a negotiated compensation in order to enhance returns of

the portfolio.

“Systematic

Transfer Plan” /

“STP”

Facility given to the Unit holders to transfer sums on periodic basis

from one scheme to another schemes launched by the Mutual Fund

from time to time by giving a single instruction.

“Tri Party Repos” Tri-party repo means a repo contract where a third entity (apart

from the borrower and lender), called a Tri-Party Agent, acts as an

intermediary between the two parties to the repo to facilitate

services like collateral selection, payment and settlement, custody

and management during the life of the transaction.

“Trustee” or

“Trustee

Company”

Axis Mutual Fund Trustee Ltd. incorporated under the provisions of

the Companies Act, 1956 and approved by SEBI to act as the Trustee

to the Scheme of the Mutual Fund.

"Unit" The interest of the Unit holder which consists of each Unit

representing one undivided share in the assets of the Scheme.

"Unit holder" or

"Investor"

A person holding Units in Axis Liquid Fund.

INTERPRETATION



all references to the masculine shall include the feminine and all references, to the


all references to "dollars" or "$" refer to United States Dollars and "Rs" refer to Indian



References to a day are to a calendar day including a Non Business Day.

13 Axis Liquid Fund





time to time.






Scheme.



Place: Mumbai Signed: Sd/-

Date: November 27, 2020 Name: Darshan Kapadia


14 Axis Liquid Fund



An Open-ended Liquid Scheme


To provide a high level of liquidity with reasonable returns commensurating with low risk

through a portfolio of money market and debt securities. However, there can be no

assurance that the investment objective of the Scheme will be achieved.


Under normal circumstances the asset allocation pattern will be:

Instruments

Indicative Allocation

(% of net assets) Risk Profile

Minimum Maximum Low/

Medium/ High

Money market instruments (including cash, repo,

CPs, CDs, Treasury Bills and Government

securities) with maturity/residual maturity up to

91 days

50 100 Low

Debt instruments (including floating rate debt

instruments and securitized debt)* with

maturity/residual maturity/ weighted average

maturity up to 91 days

0 50 Low to

medium

*securitized debt cumulative allocation not to exceed 30% of the net assets of the Scheme

(excluding foreign securitized debt).

Investment in Derivatives – up to 50% of the net assets of the Scheme. Investment in

derivatives shall be for hedging, portfolio balancing and such other purposes as maybe

permitted from time to time.

Pursuant to SEBI circular no. SEBI/IMD/CIR No. 13/150975/09 dated January 19, 2009, the

Scheme shall make investment in / purchase debt and money market securities with

maturity of up to 91 days only.

Explanation:

a. In case of securities where the principal is to be repaid in a single payout, the maturity

of the securities shall mean residual maturity. In case the principal is to be repaid in

more than one payout then the maturity of the securities shall be calculated on the

basis of weighted average maturity of the security.

b. In case of securities with put and call options (daily or otherwise) the residual maturity of

the securities shall not be greater than 91 days.

c. In case the maturity of the security falls on a Non Business Day, then settlement of

securities will take place on the next Business Day.

The Scheme retains the flexibility to invest across all the securities in the debt and Money

Market Instruments. The Scheme may also invest in units of debt and liquid mutual fund

schemes.

The total exposure in a particular sector (excluding investments in Bank CDs, CBLO,

Government Securities, T-Bills, short term deposits of scheduled commercial banks and AAA

rated securities issued by Public Financial Institutions and Public Sector Banks) shall not

exceed 20% of the net assets of the Scheme. Provided that an additional exposure to

financial services sector (over and above the limit of 20%) not exceeding 10% of the net

assets of the Scheme shall be allowed by way of increase in exposure to Housing Finance

Companies (HFCs) only. Provided further that the additional exposure to such securities

issued by HFCs are rated AA and above and these HFCs are registered with National

Housing Bank (NHB) and the total Investment/exposure in HFCs shall not exceed 20% of the

net assets of the Scheme. Further, an additional exposure of 5% of the net assets of the

15 Axis Liquid Fund

Scheme has been allowed for investments in securitized debt instruments based on retail

housing loan portfolio and/or affordable housing loan portfolio.

The Scheme can invest up to 50% of net assets in Foreign Securities. All investments in

foreign securities shall adhere to SEBI circular SEBI/IMD/CIR No.7/104753/07 dated

September 26, 2007 and amendments thereto.

The Scheme may engage in Short Selling of securities in accordance with the framework

relating to Short Selling and securities lending and borrowing specified by SEBI.

The Scheme may also engage in Securities Lending wherein the Scheme shall not deploy

more than 20% of its net assets in securities lending and not more than 5% of the net assets

of the Scheme will be deployed in securities lending to any single counterparty.

The portfolio duration will undergo a change according to the expected movement in

interest rates. Liquidity conditions and other macro-economic factors affecting interest

rates shall be taken into account for varying the portfolio duration. It is expected that the

average maturity for the fund will be in the range of 1-3 months depending on the interest

rate view. However, this can undergo a change in case the market conditions warrant and

according to the fund manager’s view.

The Scheme may review the above pattern of investments based on views on interest rates

and asset liability management needs. However, at all times the portfolio will adhere to the

overall investment objectives of the Scheme. Subject to the Regulations, the asset

allocation pattern indicated above may change from time to time, keeping in view market

conditions, market opportunities, applicable regulations and political and economic

factors. It must be clearly understood that the percentages stated above are only

indicative and not absolute. These proportions can vary substantially depending upon the

perception of the fund manager; the intention being at all times to seek to protect the

interests of the Unit holders. Such changes in the investment pattern will be for short term

and for defensive considerations only. In case of deviation, the portfolio would be

rebalanced within 3 months from the date of deviation. In case the same is not aligned to

the above asset allocation pattern within 3 months, justification shall be provided to the

Investment Review Committee and reasons for the same shall be recorded in writing. The

Investment Review committee shall then decide on the course of action.

Axis Liquid Fund, An Open ended Liquid Scheme, is a different scheme offered by the Fund

and is not a minor modification of any other existing scheme/product of the Fund.

Differentiation is as follows:

16 Axis Liquid Fund

Differentiation with existing open ended Debt schemes of Axis Mutual Fund are as follows:


Name of

the existing

scheme



Primary Investment Objective &

Investment Strategy Differentiation AUM

No. of

Folios

Axis Short

Term Fund

Instruments

Indicative

Allocation (% of net

assets)

Risk

Profile

(Low/

Medium/

High) Minimu

m

Maximu

m

Debt and

Money Market

instruments

0 100 Low to

Medium

Units issued by

REITs & InvITs 0 10

Medium

to high


The scheme will endeavor to

generate stable returns with a low

risk strategy while maintaining

liquidity through a portfolio

comprising of debt and money

market instruments.


The scheme proposes to invest in a

diversified portfolio of high quality

debt and money market securities to

generate stable risk adjusted returns

with a low risk strategy.

The Schemes portfolio construction

will seek to play out the shape of the

yield curve of different issuer classes.

The fund manager will seek to look

for investment opportunities at

different maturities of the same yield

curve (e.g. the government

securities yield curve) as well as look

at the differentiated levels of risk

premium offered by the market to

different class of issuers (e.g. 2 year

yields offered by a government

security, an NBFC and a

manufacturing corporate).

An open

ended short

term debt

scheme

investing in

instruments

such that the

Macaulay

duration of

the portfolio is

between 1

year to 3

years

12,286.10 56,988

17 Axis Liquid Fund

Axis

Treasury

Advantag

e Fund

Instruments


(% of net assets)

Risk

Profile

Minimum Maximu

m

Low/Me

dium/Hi

gh

Debt & Money

Market

Instruments

0 100 Low to

Mediu

m


The investment objective is to

provide optimal returns and liquidity

to the investors by investing primarily

in a mix of money market and short

term debt instruments which results in

a portfolio having marginally higher

maturity as compared to a liquid

fund at the same time maintaining a

balance between safety and

liquidity.

Investment Strategy

The risk-return profile of this fund

positions it in between a liquid fund

and short duration income fund. The

portfolio strategy seeks to increase

yield by having a marginally higher

maturity and moderately higher

credit risk as compared to a liquid



liquidity.

The Macaulay duration of the

portfolio of the Scheme will be

maintained between 6 months - 12

months depending on the interest

rate view. The Scheme stands to

expose to market risk which can get

captured partially by “mark to

market component” thereby

inducing a potential daily volatility.

Also, the Scheme will have a mix of

credits with a moderately higher


An open

ended low

duration debt

scheme

investing in

instruments

such that the

Macaulay

duration of

the portfolio is

between 6 to

12 months

8,817.19 42,347

18 Axis Liquid Fund

fund. The Scheme will always aim at

controlling risk by carrying a rigorous

credit evaluation of the instruments

proposed to be invested in. The

credit evaluation will be carried out

on the basis of the parameters

mentioned above.

Axis

Dynamic

Bond Fund

Instruments

Indicative

Allocation (% of

net assets)

Risk

Profile

Minimu

m

Maximu

m

Low/

Medium

/

High

Debt

instruments

including G-

Secs and

corporate debt

0% 100% Low to

Medium

Money market

instruments

0% 100% Low

Units issued by

REITs & InvITs

0 10 Medium

to High



generate optimal returns while

maintaining liquidity through active

management of a portfolio of debt

and money market instruments.

Investment Strategy

Interest rates have a cyclical

movement whereas yields fall, bond

prices rise, while the reverse is true in

the case when interest rates rise. The

investment objective of this scheme

is to maximize risk adjusted returns to

the investor through an active

management of the portfolio, by

elongating the duration of the

portfolio in a falling interest rate

scenario and reducing the duration

at a time when interest rates are

moving up.

With the discretion to take

aggressive interest rate/duration risk

calls, this could mean investing the

entire net assets in long dated

Government securities and debt

instruments (carrying relatively higher

interest rate risk/duration risk), or on

An open

ended

dynamic debt

scheme

investing

across

duration

1,183.47 12,413

19 Axis Liquid Fund

defensive considerations, entirely in


Accordingly, the interest rate

risk/duration risk of the scheme may

change substantially depending

upon the Fund’s call.

Axis Gilt

Fund

Instruments

Indicative

Allocation

(% of net

assets)

Risk Profile

(Low/

Medium/

High)

Government

Securities and

Treasury Bills

80-100 Sovereign

Debt & Money

market instruments 0-20

Low to

Medium


The Scheme will aim to generate

credit risk-free returns through

investments in sovereign securities

issued by the Central Government

and/or State Government.

Investment Strategy






The Scheme shall invest in

Government Securities, which

provide reasonable returns generally

construed to be without any Credit

Risk. The Scheme shall invest in

various State and Central

Government securities including

securities which are supported by

the ability to borrow from the

treasury or supported only by the

sovereign guarantee or of the state

government or supported by GOI

An open

ended debt

scheme

investing in

government

securities

across

maturity

153.24 5,280

20 Axis Liquid Fund

/state government in any other way

as may be permitted by SEBI. It may

also invest in repos/ reverse repos in

such securities, as and when

permitted by RBI.

The Scheme will also invest in money

market securities from time to time

upto the prescribed limit. Investment

views/decisions will be based on

analysis of macro-economic factors

to estimate the direction of interest

rates and level of liquidity and will be

taken on the basis of factors like,

prevailing interest rate scenario,

Government borrowing program,

level of liquidity in the banking

system, inflation level, returns offered

relative to alternative investments

opportunities, quality of the

security/instrument, maturity profile

of the instrument, liquidity of the

security and any other factor

considered relevant in the opinion of

the fund manager.

The Scheme may also use derivatives

instruments like Interest Rate Swaps,

Forward Rate Agreements or such

other derivative instruments as may

be introduced from time to time for

the purpose of hedging and portfolio

balancing within the limits permitted

by the Regulations from time to time.

21 Axis Liquid Fund

Axis

Strategic

Bond Fund

Instruments Normal Allocation

(% of net assets)

Risk

Profile

Minimu

m

Maximu

m

Debt and Money

Market instruments

0 100 Low to

Mediu

m

Units issued by

REITs & InvITs

0 10 Mediu

m to

High


The Scheme will endeavor to

generate optimal returns in the

medium term while maintaining

liquidity of the portfolio by investing

in debt and money market

instruments.


The Scheme proposes to invest in a

diversified portfolio of debt and

money market securities to generate

optimal risk adjusted returns in the

medium term.

The fund manager will try to allocate

assets of the scheme between

various fixed income securities taking

into consideration the prevailing

interest rate scenario, the liquidity of

the different instruments and

maintain a diversified portfolio with

the objective of achieving optimal

risk adjusted returns. While investing

the fund manager will keep in mind

the yield structure of different asset

classes (e.g. the sovereign yield

curve and the corporate bond yield

curve) as well as kinks within a

particular yield curve ( e.g. the

different points of the sovereign yield

curve).

An open

ended

medium term

debt scheme

investing in

instruments

such that the

Macaulay

duration of

the portfolio is

between 3

years to 4

years

942.33 9,259

Axis Credit

Risk Fund

Instruments Indicative

Allocation

Risk

Profile


To generate stable returns by

investing in debt & money market

instruments across the yield curve &

An open

ended debt

scheme

predominantly

556.71 8,066

22 Axis Liquid Fund

(% of net assets)

Minimu

m Maximum

High/

Mediu

m/Low

Corporate Debt

rated AA and

below

65% 100% Low to

Mediu

m

Other Debt &

Money Market

instruments

0% 35% Low to

Mediu

m

Units issued by

REITs & InvITs

0% 10% Mediu

m to

High

credit spectrum.


The Scheme to generate stable

returns by investing in debt & money

market instruments across the yield

curve & credit spectrum. However,

there is no assurance or guarantee

that the investment objective of the

Scheme will be achieved. The

Scheme does not assure or

guarantee any returns. The fund

manager will endeavour, through a

process of robust credit risk

assessment & research, to identify

optimum credit opportunities in the

market and invest in such instruments

offering higher yields at acceptable

levels of risk.



various fixed income instruments

taking into consideration the

prevailing interest rate scenario, the

liquidity of the different instruments

and maintain a diversified portfolio

with the objective of achieving

stable risk adjusted returns. While

investing the fund manager will keep

in mind the yield structure of different

asset classes (e.g. the sovereign yield



particular yield curve (e.g. the


investing in AA

and below

rated

corporate

bonds

(excluding

AA+ rated

corporate

bonds)

23 Axis Liquid Fund

curve).

After doing a thorough research on

the general macroeconomic

condition, political environment,

systemic liquidity, inflationary

expectations, corporate


considerations the portfolio duration

and credit exposures will be

decided.

Axis

Banking &

PSU Debt

Fund

Instruments



Minimum Maximum (Low/Medi

um /High)

Debt &

Money

Market

Instruments

issued by

Banks,

Public

Financial

Institutions

(PFIs) and

Public

Sector

Undertakin

gs (PSUs)

80 100 Low to

Medium

Debt

(including

governmen

t securities)

and Money

0 20 Low



investing predominantly in debt &

money market instruments issued by

Banks, Public Sector Units (PSUs) &

Public Financial Institutions (PFIs). The

Scheme shall endeavor to generate

optimum returns with low credit risk.


The Scheme aims to generate stable

returns by investing predominantly in

debt & money market instruments

issued by Banks, Public Financial

Institutions (PFIs) and Public Sector

Undertakings (PSUs). The Scheme

shall endeavor to generate optimum

returns with low credit risk.

Investment in debt & money market

instruments issued by Banks, PFIs,

PSUs, Treasury Bills & Government

Securities is primarily with the

intention of maintaining high credit

quality & liquidity. Atleast 70% of the

An open

ended debt

scheme

predominantly

investing in

debt

instruments of

banks, Public

Sector

Undertakings

& Public

Financial

Institutions.

18,601.66 57,600

24 Axis Liquid Fund

Market

Instruments

issued by

entities

other than

Banks, PFIs

and PSUs

net assets of the Scheme shall be

invested in securities rated

AAA/A1+/Sov and equivalent.

Balance may be invested in

securities rated below AAA/A1+/Sov

and equivalent.

The investment team of the AMC will

carry out rigorous in depth credit

evaluation of the Debt & Money

Market Instruments proposed to be

invested in. The credit evaluation will

essentially be a bottom up

approach and include a study of the

operating environment of the issuer,

the past track record as well as the

future prospects of the issuer and the

short term/ long term financial health

of the issuer.

Axis

Corporate

Debt Fund


(% of net assets)

Risk

Profile

Minimu

m

Maximu

m

Corporate Debt

rated AA and

above

80% 100% Low to

Mediu

m

Other Debt &

Money Market

Instruments

0% 20% Low

Units issued by

REITs & InvITs

0% 10% Mediu

m to

High


The Scheme seeks to provide steady

income and capital appreciation by

investing in corporate debt.


The investment objective of the

Scheme is to generate regular


investing in corporate debt across

maturities and ratings. The Scheme

may also invest in money market

instruments. There is no assurance or

guarantee that the objectives of the

Scheme will be realized.

The Scheme will predominantly invest

An open

ended debt

scheme

predominantly

investing in

AA+ and

above rated

corporate

bonds

2,399.37 8,857

25 Axis Liquid Fund

in securities issued by corporate

(both private sector and public

sectors) including banks and

financial institutions across maturities

/ yield curve and ratings. It will look

for opportunities from credit spreads

among the range of available

corporate debt instruments by

cautiously managing the excess risk

on its corporate investments.

The portfolio maturity will be

determined after analyzing the

macro-economic environment

including future course of system

liquidity, interest rates and inflation

along with other considerations in

the economy and markets.

Emphasis may be given to choosing

securities, which, in the opinion of

the Fund Manager, are less prone to

default risk, while bearing in mind the

liquidity needs arising out of the

open-ended nature of the Scheme.



evaluation of the money market and

debt instruments proposed to be







26 Axis Liquid Fund

short term / long term financial

health of the issuer.

Axis Liquid

Fund

Instruments

Indicative

Allocation (% of

net assets)

Risk

Profile

Minimu

m

Maximu

m

Low/

Medium

/ High

Money market

instruments

(including cash,

repo, CPs, CDs,

Treasury Bills and

Government

securities) with

maturity/residual

maturity up to 91

days

50 100 Low

Debt instruments

(including

floating rate

debt instruments

and securitized

debt) with

maturity /residual

maturity/

weighted

average

maturity up to 91

days

0 50 Low to

medium


To provide a high level of liquidity

with reasonable returns

commensurating with low risk

through a portfolio of money market

and debt securities.


The Fund shall be managed

according to the investment

objective - to generate reasonable

returns commensurate with low risk.

As this Scheme is positioned at the

lowest level of risk-return matrix, it is

usually aimed to meet the needs of

the Investors who want to deploy

their funds for a short period of time.

The composition of Indian debt

market (both primary and

secondary) at the front end of the

yield curve is dominated by money

market instruments. Accordingly, the

Scheme will invest predominantly in

money market securities with some

tactical allocation towards other

debt securities to enhance the

portfolio return. The portfolio will be

structured to incorporate asset-

liability management based on

seasonal/historic trends of liabilities.

Given the usually observed nature of

the profile of liabilities, the fund shall

seek to maintain high liquidity with

An Open

ended Liquid

Scheme

26,508.84 1,50,784

27 Axis Liquid Fund

the use of cash/cash equivalent

assets.

As yield curve has been observed to

be flat (overnight to 3 months) during

most of the times, attempt will be

made to space out the assets

uniformly across the maturity

buckets. However, any irregularity in

the shape of the curve

(steep/inverted) will be played out in

the portfolio construction after

analysing the macro-economic

environment including future course

of system liquidity, interest rates and

inflation along with other

considerations in the economy and

markets.













Axis Ultra

Short Term

Fund

Instruments Indicative Allocation

(% of net assets)

Risk Profile

Minimum Maximu High/





investing in a portfolio of short term

An open

ended ultra-

short term

debt scheme

investing in

4,205.76 48,151

28 Axis Liquid Fund

m Medium/

Low

Debt and

Money

Market

Instruments*

0% 100% Low to

Medium

debt and money market instruments

with relatively lower interest rate risk

such that Macaulay duration of the

portfolio is between 3 months and 6

months.







with relatively lower interest rate risk.

The Scheme will maintain the

Macaulay duration of the portfolio

between 3 months and 6 months.

The Scheme endeavors to maximize

return while maintaining higher

liquidity. The portfolio maturity will be







The Scheme is likely to have higher

maturity than a liquid fund. However,

the Macaulay Duration of the

portfolio for the Scheme will be

maintained between 3 months to 6


rate view. As a result, the Scheme

stands to expose to market risk which

instruments

such that the

Macaulay

duration of

the portfolio is

between 3

months and 6

months

29 Axis Liquid Fund

can get captured partially by mark

to market component thereby











mentioned above.













Axis

Overnight

Fund


(% of net assets)

Risk Profile

Minimum Maximu

m

High/

Medium/

Low

Overnight

securities

*@

0% 100% Low

Investment Objective


Scheme is to provide reasonable

returns commensurate with very low

interest rate risk and providing a high

level of liquidity, through investments

made primarily in overnight securities

having maturity/residual maturity of 1

An open

ended debt

scheme

investing in

instruments

with a

maturity of up

to 1 business

day.

3,889.92 6,060

30 Axis Liquid Fund

business day.



Scheme is to generate returns by

investing in debt and money market

instruments with overnight maturity.

The total assets of the Scheme will be

invested in debt securities and

money market instruments maturing

on or before next Business Day. In

case of securities with put and call

options (daily or otherwise) the

residual maturity (deemed or actual)

shall be on or before the next

Business Day. Investments under the

Scheme would be made

predominantly in Tri Party Repos,

overnight reverse repos and fixed

income securities/instruments with a

maturity of 1 business day.

The Scheme may also invest in units

of Overnight Schemes of other

mutual funds.

Axis Money

Market

Fund


(% of net assets)

Risk Profile

Minimum Maximu

m

High/

Medium/

Low

Money

Market

Instruments

0% 100% Low


To generate regular income through

investment in a portfolio comprising

of money market instruments.


The net assets of the scheme will be

invested in money market

instruments. The scheme will seek to

optimize the risk return proposition for

The Scheme

invests in

instruments

with a

maturity of

upto 1 year.

1,824.77 3,144

31 Axis Liquid Fund

the benefit of investors.

The investment process will focus on

macro-economic research, credit

risk and liquidity management. The

scheme will maintain a judicious mix

of short term and medium term

instruments based on the mandates

of the scheme. As part of credit risk

assessment, the scheme will also

apply its credit evaluation process

besides taking guidance from ratings

of rating agencies. In order to

maintain liquidity, the scheme will

maintain a reasonable proportion of

the Scheme's investments in

relatively liquid investments.

32 Axis Liquid Fund


The corpus of the Scheme will be invested in money market & debt instruments with

maturity/weighted average maturity/residual maturity not greater than 91 days which will

include but not limited to:


Certificate of Deposit (CD)

Certificate of Deposit is a negotiable money market instrument issued by scheduled

commercial banks and select all-India Financial Institutions that have been permitted by

the RBI to raise short term resources. The maturity period of CDs issued by the Banks is

between 7 days to one year, whereas, in case of FIs, maturity is one year to 3 years from the

date of issue.

Commercial Paper (CP)

Commercial Paper is an unsecured negotiable money market instrument issued in the form

of a promissory note, generally issued by the corporates, primary dealers and all India



Treasury Bill (T-Bills)

Treasury Bills are issued by the Government of India to meet their short term borrowing

requirements. T-Bills are issued for maturities of 14 days, 91 days, 182 days and 364 days.

The Scheme may also invest in Cash Management Bill (CMB) issued by the Government of

India to meet their short term borrowing requirements. CMB are generally issued for

maturities of less than 91 days.


Bill (bills of exchange/promissory notes of public sector and private sector corporate

entities) Rediscounting, usance bills and commercial bills.

Repo

Repo (Repurchase Agreement) or Reverse Repo is a transaction in which two parties agree

to sell and purchase the same security with an agreement to purchase or sell the same

security at a mutually decided future date and price. The transaction results in

collateralized borrowing or lending of funds. Presently in India, corporate debt securities,

Government Securities, State Government Securities and T-Bills are eligible for Repo/

Reverse Repo.

"Tri-party repo" means a repo contract where a third entity (apart from the borrower and

lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the

repo to facilitate services like collateral selection, payment and settlement, custody and


The Scheme may undertake repo transactions in corporate debt securities in accordance

with the directions issued by RBI and SEBI from time to time. Such investment shall be made

subject to the guidelines which may be prescribed by the Board of Directors of the Asset


Securities created and issued by the Central and State Governments as may be permitted

by RBI, securities guaranteed by the Central and State Governments (including but not

limited to coupon bearing bonds, zero coupon bonds and treasury bills). State Government

securities (popularly known as State Development Loans or SDLs) are issued by the

respective State Government in co-ordination with the RBI.

Non convertible Debentures and Bonds

Non convertible debentures as well as bonds are securities issued by companies /

institutions promoted / owned by the Central or State Governments and statutory bodies

which may or may not carry a Central/State Government guarantee, Public and private

33 Axis Liquid Fund

sector banks, all India Financial Institutions and Private Sector Companies. These instruments

may have fixed or floating rate coupon. These instruments may be secured or unsecured

against the assets of the Company and generally issued to meet the short term and long

term fund requirements.

The Scheme may also invest in the non-convertible part of convertible debt securities.

Securitized Assets



termed as Asset Backed Securities (“ABS”) or Mortgage Backed Securities (“MBS”). ABS are

backed by other assets such as credit card, automobile or consumer loan receivables,

retail installment loans or participations in pools of leases. Credit support for these securities

may be based on the underlying assets and/or provided through credit enhancements by

a third party. MBS is an asset backed security whose cash flows are backed by the principal

and interest payments of a set of mortgage loans. Such Mortgage could be either

residential or commercial properties. ABS/MBS instrument reflect the undivided interest in

the underlying assets and do not represent the obligation of the issuer of ABS/MBS or the

originator of underlying receivables. Securitization often utilizes the services of a special

purpose vehicle.


Pay through or other Participation Certificates) represents beneficial interest in an

underlying pool of cash flows. These cash flows represent dues against single or multiple

loans originated by the sellers of these loans. These loans are given by banks or financial

institutions to corporates. PTCs may be backed, but not exclusively, by receivables of

personal loans, car loans, two wheeler loans and other assets subject to applicable

regulations.


1. How the risk profile of securitized debt fits into the risk appetite of the Scheme


securities. This is done by assigning the loans to a special purpose vehicle (a trust), which in

turn issues Pass-Through-Certificates (PTCs). These PTCs are transferable securities with fixed

income characteristics. The risk of investing in securitized debt is similar to investing in debt

securities. However it differs in two respects.

Typically the liquidity of securitized debt is less than similar debt securities. For certain types

of securitized debt (backed by mortgages, personal loans, credit card debt, etc.), there is

an additional pre-payment risk. Pre-payment risk refers to the possibility that loans are

repaid before they are due, which may reduce returns if the re-investment rates are lower

than initially envisaged.


securities of similar credit rating and maturity. If the fund manager judges that the

additional risks are suitably compensated by the higher returns, he may invest in securitized

debt up to the limits specified in the asset allocation table above.





analysis of the originator is especially important in case of retail loans as this affects the

credit quality and servicing of the PTC. The key risk is that of the underlying assets and not of

the originator. For example, losses or performance of earlier issuances does not indicate

quality of current series. However such past performance may be used as a guide to

evaluate the loan standards, servicing capability and performance of the originator.

Originators may be: Banks, Non Banking Finance Companies, Housing Finance Companies,

etc. The fund manager / credit analyst evaluates originators based on the following

parameters

34 Axis Liquid Fund

Track record


Ability to pay





In addition a detailed review and assessment of rating rationale is done including

interactions with the originator as well as the credit rating agency.




High leverage ratios of the ultimate borrower (for single-sell downs) – both on a

standalone basis as well on a consolidated level/ group level

Higher proportion of reschedulement of underlying assets of the pool or loan, as the

case may be

Higher proportion of overdue assets of the pool or the underlying loan, as the case may

be




An analysis of the originator is especially important in case of retail loans as the size and

reach affects the credit quality and servicing of the PTC. In addition, the quality of the

collection process, infrastructure and follow-up mechanism; quality of MIS; and credit

enhancement mechanism are key risk mitigants for the better originators / servicers.


underlying borrower is analyzed. In case of diversified pools of loans, the overall

characteristic of the loans is analyzed to determine the credit risk. The credit analyst looks at

ageing (i.e. how long the loan has been with the originator before securitization) as one

way of evaluating the performance potential of the PTC. Securitization transactions may

include some risk mitigants (to reduce credit risk). These may include interest subvention

(difference in interest rates on the underlying loans and the PTC serving as margin against

defaults), overcollateralization (issue of PTCs of lesser value than the underlying loans, thus

even if some loans default, the PTC continues to remain protected), presence of an equity

/ subordinate tranche (issue of PTCs of differing seniority when it comes to repayment - the

senior tranches get paid before the junior tranche) and / or guarantees.




borrower is analyzed. In case of diversified pools of loans, the overall characteristic of the

loans is analyzed to determine the credit risk.

The credit analyst looks at ageing (i.e. how long the loan has been with the originator

before securitization) as one way of judging the performance potential of the PTC.

Additional risk mitigants may include interest subvention, over collateralization, presence of

an equity / subordinate tranche and / or guarantees. The credit analyst also uses analyses

by credit rating agencies on the risk profile of the securitized debt.

Currently, the following parameters are used while evaluating investment decision relating

to a pool securitization transaction. The Investment Review Committee may revise the

parameters from time to time.

Characteristics/Typ

e of Pool

Mort

gage

Loan

Commercial

Vehicle and

Construction

Equipment

CAR 2

whee

lers

Micro

Financ

e Pools

*

Perso

nal

Loans

*

Single

Sell

Downs

Others

35 Axis Liquid Fund

Approximate

Average maturity

(in Months)

Up to

10

years

Up to 3 years Up to

3

years

Up to

3

years

NA NA Refer

Note 1

Refer

Note 2

Collateral margin

(including cash,

guarantees, excess

interest spread,

subordinate

tranche)

>10% >10% >10% >10% NA NA “ “

Average Loan to

Value Ratio

<90% <80% <80% <80% NA NA “ “

Average

seasoning of the

Pool

>3

mont

hs

>3 months >3

mont

hs

>3

mont

hs

NA NA “ “

Maximum single

exposure range

<1% <1% <1% <1% NA NA “ “

Average single

exposure range %

<1% <1% <1% <1% NA NA “ “

* Currently, the Schemes will not invest in these types of securitized debt

Note 1: In case of securitization involving single loans or a small pool of loans, the credit risk

of the borrower is analyzed. The investment limits applicable to the underlying borrower are




securitized debt:

Size of the loan


Loan to Value Ratio





Liquid facility




"true sale" criteria including credit enhancement and liquidity enhancements. In addition,

RBI has proposed minimum holding period of between nine and twelve months for assets

before they can be securitized. The minimum holding period depends on the tenor of the

securitization transaction. The Fund will invest in securitized debts that are compliant with

the laws and regulations.



"true sale" criteria including credit enhancement and liquidity enhancements, including

maximum exposure by the originator in the PTCs. In addition, RBI has proposed minimum

retention requirement of between five and ten percent of the book value of the loans by

the originator. The minimum retention requirement depends on the tenor and structure of

the securitization transaction. The Fund will invest in securitized debts that are compliant

with the laws and regulations.


debt of an originator and the originator in turn makes investments in that particular

scheme of the fund

The key risk is securitized debt relates to the underlying borrowers and not the originator. In

a securitization transaction, the originator is the seller of the debt(s) and the fund is the

buyer. However, the originator is also usually responsible for servicing the loan (i.e.

collecting the interest and principal payments). As the originators may also invest in the

36 Axis Liquid Fund

scheme, the fund manager shall ensure that the investment decision is based on

parameters as set by the Investment Review Committee (IRC) of the Asset Management

Company and IRC shall review the same at regular interval.




securitized debt. In addition, credit research agencies provide analysis of individual

instruments and pools. On an on-going basis (typically monthly) the servicer provides reports

regarding the performance of the pool. These reports would form the base for ongoing

evaluation where applicable. In addition, rating reports indicating rating changes would be

monitored for changes in rating agency opinion of the credit risk.

Debt derivative instruments:

Interest Rate Swap - An Interest Rate Swap (“IRS”) is a financial contract between two

parties exchanging or swapping a stream of interest payments for a “notional principal”

amount on multiple occasions during a specified period. Such contracts generally involve

exchange of a “fixed to floating” or “floating to fixed” rate of interest. Accordingly, on

each payment date that occurs during the swap period, cash payments based on fixed/

floating and floating rates are made by the parties to one another.

Forward Rate Agreement - A Forward Rate Agreement (“FRA”) is a financial contract

between two parties to exchange interest payments for a ‘notional principal’ amount on

settlement date, for a specified period from start date to maturity date. Accordingly, on the

settlement date, cash payments based on contract (fixed) and the settlement rate, are

made by the parties to one another. The settlement rate is the agreed bench-mark/

reference rate prevailing on the settlement date.


A futures contract is a standardized, legally binding agreement to buy or sell a commodity

or a financial instrument in a designated future month at a market determined price (the

futures price) by the buyer and seller. The contracts are traded on a futures exchange. An

Interest Rate Future is a futures contract with an interest bearing instrument as the

underlying asset.




3. Exchange traded



Foreign Securities

The Scheme may also invest in suitable investment avenues in Foreign Securities in overseas

financial markets for the purpose of diversification, commensurate with the Scheme

objectives and subject to necessary stipulations by SEBI / RBI. Towards this end, the Mutual

Fund may also appoint overseas investment advisors and other service providers, as and

when permissible under the regulations.

The Scheme may, with the approval of SEBI / RBI invest in:


Foreign debt securities in the countries with fully convertible currencies, short term as

well as long term debt instruments with rating not below investment grade by


Money Market Instruments rated not below investment grade


grade, repos shall not however, involve any borrowing of funds by the mutual funds

Government Securities where the countries are rated not below investment grade

Derivatives traded on recognized stock exchanges overseas only for hedging and

portfolio balancing with underlying as securities

37 Axis Liquid Fund





As per SEBI circular no. SEBI/IMD/CIR No.7/104753/07 dated September 26, 2007 read with

SEBI circular SEBI/HO/IMD/DF3/CIR/P/2020/225 dated November 5, 2020, mutual funds can

make overseas investments subject to a maximum of US $600 million or such limits as may

be prescribed by SEBI from time to time. Subject to the approval of RBI / SEBI, where

required and conditions as may be prescribed by them, the Mutual Fund may open one or

more foreign currency accounts abroad either directly, or through the custodian/sub-

custodian, to facilitate investments and to enter into/deal in forward currency contracts,

currency futures, interest rate futures / swaps, currency options for the purpose of hedging

the risks of assets of a portfolio or for such purposes as maybe permitted from time to time.

However, the use of such instruments shall be as permitted from time to time. All the

requirement of the SEBI circular dated September 26, 2007, would be adhered to by the

AMC for investment in foreign securities.

Limits for investment in overseas securities: An investment headroom of 20% of the average

AUM in overseas securities / overseas ETFs of the previous three calendar months would be

available to the Mutual Fund for that month to invest in overseas securities / overseas ETFs

subject to maximum limits specified in SEBI circulars.



other mutual funds in conformity with the investment objective of the Scheme and in terms

of the prevailing SEBI (MF) Regulations.


permitted to invest in could be listed, unlisted, privately placed, secured, unsecured, rated

or unrated and of any maturity.

The securities may be acquired through initial public offering (IPOs), secondary market,

private placement, rights offers, negotiated deals, etc. Further investments in debentures,

bonds and other fixed income securities will be in instruments which have been assigned

investment grade rating by the Credit Rating Agency.




Details of various derivative strategies/examples of use of derivatives have been provided

under the section “Derivatives Strategy”.

The Fund Manager reserves the right to invest in such securities as maybe permitted from

time to time and which are in line with the investment objectives of the Scheme.

E. WHAT ARE THE INVESTMENT STRATEGIES?

The Fund shall be managed according to the investment objective - to generate

reasonable returns commensurate with low risk. As this Scheme is positioned at the lowest

level of risk-return matrix, it is usually aimed to meet the needs of the Investors who want to

deploy their funds for a short period of time.

The composition of Indian debt market (both primary and secondary) at the front end of

the yield curve is dominated by money market instruments. Accordingly the Scheme will

invest predominantly in money market securities with some tactical allocation towards

other debt securities to enhance the portfolio return. The portfolio will be structured to

incorporate asset-liability management based on seasonal/historic trends of liabilities.

Given the usually observed nature of the profile of liabilities, the fund shall seek to maintain

high liquidity with the use of cash/cash equivalent assets.

38 Axis Liquid Fund

As yield curve has been observed to be flat (overnight to 3 months) during most of the

times, attempt will be made to space out the assets uniformly across the maturity buckets.

However any irregularity in the shape of the curve (steep/inverted) will be played out in the

portfolio construction after analysing the macro-economic environment including future

course of system liquidity, interest rates and inflation along with other considerations in the

economy and markets.

The investment team of the AMC will carry out rigorous in depth credit evaluation of the

money market and debt instruments proposed to be invested in. The credit evaluation will

essentially be a bottom up approach and include a study of the operating environment of

the issuer, the past track record as well as the future prospects of the issuer and the short

term / long term financial health of the issuer.

Derivatives Strategy:

The Scheme may use Derivative instruments like interest rate swaps like Overnight Indexed

Swaps (“OIS”), forward rate agreements, interest rate futures or such other Derivative

instruments as may be permitted under the applicable regulations. Derivatives will be used

for the purpose of hedging, and portfolio balancing or such other purpose as may be

permitted under the regulations and guidelines from time to time.

The Scheme will be allowed to take exposure in interest rate swaps only on a non-

leveraged basis. A swap will be undertaken only if there is an underlying asset in the

portfolio. In terms of circular no. MFD.BC.191/07.01.279/1999-2000 and

MPD.BC.187/07.01.279/1999- 2000 dated November 1, 1999 and July 7, 1999 respectively

issued by RBI permitting participation by Mutual Funds in interest rate swaps and forward

rate agreements, the Scheme will use Derivative instruments for the purpose of hedging

and portfolio balancing. The Scheme may also use derivatives for such purposes as maybe

permitted from time to time. Further, the guidelines issued by RBI from time to time for

forward rate agreements and interest rate swaps and other derivative products would be

adhered to by the Mutual Fund.

IRS and FRA do also have inherent credit and settlement risks. However, these risks are

substantially reduced as they are limited to the interest streams and not the notional

principal amounts.

Investments in Derivatives will be in accordance with the extant Regulations / guidelines.

Presently Derivatives shall be used for hedging and / or portfolio balancing purposes, as

permitted under the Regulations. The circumstances under which such transactions would

be entered into would be when, for example using the IRS route it is possible to generate

better returns / meet the objective of the Scheme at a lower cost. e.g. if buying a 2 Yr Mibor

based instrument and receiving the 2 Yr swap rate yields better return than the 2 Yr AAA

corporate, the Scheme would endeavor to do that. Alternatively, the Scheme would also

look to hedge existing fixed rate positions if the view on interest rates is that it would likely

rise in the future.

The following information provides a basic idea as to the nature of the Derivative

instruments proposed to be used by the Fund and the benefits and risks attached therewith.

Please note that the examples have been given for illustration purposes only.


In a rising interest rate scenario, the Scheme may enhance returns for the Investor by

hedging the risk on its fixed interest paying assets by entering into an OIS contract where

the Scheme agrees to pay a fixed interest rate on a specified notional amount, for a pre

determined tenor and receives floating interest rate payments on the same notional

amount. The fixed returns from the Scheme assets and the fixed interest payments to be

made by the Scheme on account of the OIS transaction offset each other and the Scheme

benefits on the floating interest payments that it receives. The Scheme may enter into an

opposite position in case of a falling interest rate scenario, i.e. to hedge the floating rate

assets in its portfolio the Scheme enters into an OIS transaction wherein it receives a fixed

interest rate on a specified notional amount for a specified time period and pays a floating

interest rate on the same notional amount. The floating interest payments that the Scheme

39 Axis Liquid Fund

receives on its floating rate securities and the floating interest payments that the Scheme

has to pay on account of the OIS transaction offset each other and the Scheme benefits

on the fixed interest payments that it receives in such a scenario.

Swap

Assume that the Scheme has a Rs. 20 crore floating rate investment linked to MIBOR

(Mumbai Inter Bank Offered Rate). Hence, the Scheme is currently running an interest rate

risk and stands to lose if the interest rate moves down. To hedge this interest rate risk, the

Scheme can enter into a 6 month MIBOR swap. Through this swap, the Scheme will receive

a fixed predetermined rate (assume 12%) and pays the “benchmark rate” (MIBOR), which is

fixed by the NSE (“National Stock Exchange of India Ltd.”) or any other agency such as

Reuters. This swap would effectively lock-in the rate of 12% for the next 6 months, eliminating

the daily interest rate risk. This transaction is usually routed through an intermediary who runs

a book and matches deals between various counterparties. The steps will be as follows:

Assuming the swap is for Rs. 20 Crores for June 1, 2009 to December 1, 2009. The Scheme is

a fixed rate receiver at 12% and the counterparty is a floating rate receiver at the overnight

rate on a compounded basis (say NSE MIBOR).


entered this swap. This documentation would be as per International Swap Dealers

Association (“ISDA”) norms.






The counterparty is entitled to receive daily compounded call rate for 184 days & pay

12% fixed.

On December 1, 2009, if the total interest on the daily overnight compounded

benchmark rate is higher than Rs. 1.21 Crores, the Scheme will pay the difference to the

counterparty. If the daily compounded benchmark rate is lower, then the counterparty

will pay the Scheme the difference.

Effectively the Scheme earns interest at the rate of 12% p.a. for six months without

lending money for 6 months fixed, while the counterparty pays interest @ 12% p.a. for 6

months on Rs. 20 Crores, without borrowing for 6 months fixed.

The above example illustrates the use of Derivatives for hedging and optimizing the

investment portfolio. Swaps have their own drawbacks like credit risk, settlement risk.

However, these risks are substantially reduced as the amount involved is interest streams

and not principal.


Assume that on June 30, 2009, the 30 day commercial paper (CP) rate is 4% and the

Scheme has an investment in a CP of face value Rs. 50 Crores, which is going to mature on

July 31, 2009. If the interest rates are likely to remain stable or decline after July 31, 2009,

and if the fund manager, who wants to re-deploy the maturity proceeds for 1 more month

does not want to take the risk of interest rates going down, he can then enter into a

following Forward Rate Agreement (FRA) say as on June 30, 2009:

He can receive 1 X 2 FRA on June 30, 2009 at 4.00% (FRA rate for 1 months lending in 1

months time) on the notional amount of Rs. 50 Crores, with a reference rate of 30 day CP

benchmark. If the CP benchmark on the settlement date i.e. July 30, 2009 falls to 3.75%,

then the Scheme receives the difference 4.00 – 3.75 i.e. 25 basis points on the notional

amount Rs. 50 Crores.


Assume that the Fund holds an Indian ten year benchmark and the fund manager has a

view that the yields will go up in the near future leading to decrease in value of the

investment and subsequent decrease in Net Asset Value (NAV) of the fund. The fund house

40 Axis Liquid Fund

decides to use Interest Rate Futures to mitigate the risk of decline of Net Asset Value (NAV)

of the fund.

12th October 2009


December 2009 futures contract on the ten year notional 7% coupon bearing

Government paper is trading at a yield of 7.29% at a price of INR 98.50.



25th November 2009



The December 2009 futures contract is trading at a price of INR 93.17 indicating a yield

of 8.05%

The mutual fund unwinds the short position by buying the December 2009 futures

contract. The transaction results in profit from the futures position, against the

corresponding loss from the Government of India security position.

Certain risks are inherent to Derivative strategies viz. lack of opportunities, inability of

Derivatives to correlate perfectly with the underlying and execution risks, whereby the rate

seen on the screen may not be the rate at which the transaction is executed. For details of

risk factors relating to use of Derivatives, the investors are advised to refer to Scheme

Specific Risk Factors.

Portfolio Turnover:

The Scheme being an open-ended Scheme, it is expected that there would be a number

of Subscriptions and Redemptions on a daily basis. Further, in the debt market, trading

opportunities may arise due to changes in system liquidity, interest rate policy announced

by RBI, shifts in the yield curve, credit rating changes or any other factors. In the opinion of

the fund manager these opportunities can be played out to enhance the total return of the

portfolio, which will result in increase in portfolio turnover. There may be an increase in

transaction cost such as brokerage paid, if trading is done frequently. However, the cost

would be negligible as compared to the total expenses of the Scheme. Frequent trading

may increase the profits which will offset the increase in costs. The fund manager will

endeavour to optimize portfolio turnover to maximize gains and minimize risks keeping in

mind the cost associated with it. However, it is difficult to estimate with reasonable measure

accuracy, the likely turnover in the portfolio of the Scheme. The Scheme has no specific

target relating to portfolio turnover.

Investment in overseas financial assets (foreign fixed income securities):

RBI vide its letter no. EC.CO.OID.MF/ 19.19.463/2001-2002 dated May 31, 2002 has given

approval to mutual funds to invest in such securities subject to the conditions stated therein.

SEBI through its Circular dated September 26, 2007 read with circular dated November 5,

2020 & such other circulars as issued by SEBI from time to time has permitted Mutual Funds

to invest in Foreign Securities including foreign debt securities within the overall limit of US$ 7

billion, subject to a maximum of US$ 600 million per Mutual Fund. Further, the Mutual Funds

can also invest in Exchange Traded Funds within an overall limit of US$ I billion, subject to a

maximum of US$ 200mn per Mutual Fund.

It is the Investment Manager’s belief that overseas securities offer new investment and

portfolio diversification opportunities into multi-market and multi-currency products.

However, such investments also entail additional risks. Such investment opportunities may

be pursued by the Investment Manager provided they are considered appropriate in terms

of the overall investment objectives of the Scheme. Since the Scheme would invest only

partially in overseas securities, there may not be readily available and widely accepted

benchmarks to measure the performance of the Scheme. To manage risks associated with

foreign currency and interest rate exposure, the Fund may use Derivatives for efficient

portfolio management and hedging as maybe permitted from time to time and in

accordance with conditions as may be stipulated by SEBI/RBI from time to time.

41 Axis Liquid Fund

Offshore investments will be made subject to any/all approvals/ conditions thereof as may

be stipulated by SEBI/ RBI/ other Regulatory Agency. The Fund may, where necessary,

appoint other intermediaries of repute as advisors, sub-custodians, etc. for managing and

administering such investments. The appointment of such intermediaries shall be in

accordance with the applicable requirements of SEBI and within the permissible ceilings of

expenses. The fees and expenses would illustratively include, besides the investment

management fees, custody fees and costs, fees of appointed advisors and sub-managers,

transaction costs, and overseas regulatory costs.

Under normal circumstances, the Scheme may invest maximum 50% of its net assets in

foreign securities. However, the AMC with a view to protecting the interests of investors may

alter the exposure in Foreign Securities as deemed fit from time to time.


The Indian debt market is today one of the largest in Asia and includes securities issued by

the Government (Central & State Governments), public sector undertakings, other

government bodies, financial institutions, banks and corporates. Government and public

sector enterprises are the predominant borrowers in the markets. The major players in the

Indian debt markets today are banks, financial institutions, mutual funds, insurance

companies, primary dealers, trusts, pension funds and corporates. The Indian debt market is

the largest segment of the Indian financial markets. The debt market comprises broadly two

segments, viz. Government Securities market or G-Sec market and corporate debt market.

The latter is further classified as market for PSU bonds and private sector bonds.

The Government Securities (G-Secs) market, consists of G-Sec outstanding of Rs.

67,44,406.238 cr as on Oct 27, 2020 (State Govt securities - Rs 34,44,380.1300 cr, (as on Jul

20) Source: CCIL), is the oldest and the largest component (50% share in market cap) of the

Indian debt market in terms of market capitalization, outstanding securities and trading

volumes. The G-Secs market plays a vital role in the Indian economy as it provides the

benchmark for determining the level of interest rates in the country through the yields on

the Government Securities which are referred to as the risk-free rate of return in any

economy. Over the years, there have been new products introduced by the RBI like zero

coupon bonds, floating rate bonds, inflation indexed bonds, etc.


public issuance in capital market, is only an insignificant part of the Indian Debt Market. A

large part of the issuance in the non-Government debt market is currently on private

placement basis.


overnight and term money between banks and institutions), repo transactions (temporary

sale with an agreement to buy back the securities at a future date at a specified price),


corporates), certificate of deposits (CDs, issued by banks) and Treasury Bills (issued by RBI).

In a predominantly institutional market, the key money market players are banks, financial



Instruments that comprise a major portion of money market activity include but not limited

to:

• Overnight Call

• Tri Party Repo


• Treasury Bills





include MIBOR linked debentures with periodic exit options and other such instruments.

Though not strictly classified as Money Market Instruments, PSU / DFI / Corporate paper with

a residual maturity of < 1 year, are actively traded and offer a viable investment option.

42 Axis Liquid Fund

The market has evolved in past 2-3 years in terms of risk premia attached to different class

of issuers. Bank CDs have clearly emerged as popular asset class with increased

acceptability in secondary market. PSU banks trade the tightest on the back of comfort

from majority government holding. Highly rated manufacturing companies also command

premium on account of limited supply. However, there has been increased activity in

papers issued by private/foreign banks/NBFCs/companies in high-growth sector due to

higher yields offered by them. Even though companies across these sectors might have

been rated on a same scale, the difference in the yield on the papers for similar maturities

reflects the perception of their respective credit profiles.

The following table gives approximate yields prevailing on November 13, 2020 on some of

the instruments and further illustrates this point.

Instrument Current Yield range (%) Tri-party Repo 3.05%-3.10% Repo 3.05%-3.10% 3M T-bill 3.15%-3.20% 1Y T-bill 3.40%-3.45% 10Y G-sec 5.85%-5.90% 3m PSU Bank CD 3.20%-3.25% 3m Manufacturing co. CP 3.25%-3.30% 1Y PSU Bank CD 3.75%-3.80% 1Y NBFC CP 4.10%-4.20% 1Y Manufacturing co. CP 3.95%-4.00% 5Y AAA Institutional Bond 5.40%-5.45% 10Y AAA Institutional Bond 6.50%-6.55%

Source: Bloomberg

These yields are indicative and do not indicate yields that may be obtained in future as

interest rates keep changing consequent to changes in macro-economic conditions and

RBI policy. The price and yield on various debt instruments fluctuate from time to time

depending upon the macro economic situation, inflation rate, overall liquidity position,

foreign exchange scenario etc. Also, the price and yield vary according to maturity profile,

credit risk etc.

Risk Control:

Risk is an inherent part of the investment function. Effective risk management is critical to

fund management for achieving financial soundness. Since investing requires disciplined risk

management, the AMC would incorporate adequate safeguards for controlling risks in the

portfolio construction process. The risk control process involves reducing risks through

portfolio diversification; The AMC believes that this diversification would help achieve the

desired level of consistency in returns. The AMC aims to identify securities, which offer

superior levels of yield at lower levels of risks. With the aim of controlling risks, rigorous in-

depth credit evaluation of the securities proposed to be invested in will be carried out by

the investment team of the AMC. Risk control would involve managing risk in order to keep

it in line with the investment objective of the Scheme. AMC has implemented the

Bloomberg Portfolio Order Management System as Front Office System (FOS) for this

purpose the system has incorporated all the investment restrictions as per SEBI guidelines

and “soft” warning alerts at appropriate levels for preemptive monitoring. The system

enables identifying & measuring the risk through various risk measurement tools like various

risk ratios, average duration and analyzes the same and acts in a preventive manner.

INVESTMENT BY THE AMC IN THE SCHEME


during the Ongoing Offer Period. However, the AMC shall not charge any investment



43 Axis Liquid Fund

Following are the Fundamental Attributes of the Scheme, in terms of Regulation 18 (15A) of

the SEBI (MF) Regulations:




o Liquidity provisions such as listing, Repurchase, Redemption.

o Aggregate fees and expenses charged to the scheme.

o Any safety net or guarantee provided.

In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustee shall ensure

that no change in the fundamental attributes of the Scheme(s) and the Plan(s) / Option(s)

thereunder or the trust or fee and expenses payable or any other change which would

modify the Scheme(s) and the Plan(s) / Option(s) thereunder and affect the interests of Unit

holders is carried out unless:

A written communication about the proposed change is sent to each Unit holder and

an advertisement is given in one English daily newspaper having nationwide 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



G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE?

NIFTY Liquid Index

The Scheme intends to invest in a portfolio of instruments which is best captured by NIFTY

Liquid Index. The constituents and weights of NIFTY Liquid Index as on April 2020 are as

under:

Constituents Weights (%)

NIFTY 1D Rate Index 30%

NIFTY 91 Day T-Bill Index 5%

NIFTY 1 Month CP Index 30%



NIFTY 1 Month CD Index 10%



Total 100

NIFTY Liquid Index is a realistic estimate to track the returns of a Liquid Fund at a particular

return and risk level and hence is used as a benchmark by most market participants.

The Trustee reserves the right to change the benchmark for the evaluation of the

performance of the Scheme from time to time, keeping in mind the investment objective of

the Scheme and the appropriateness of the benchmark, subject to the Regulations and

other prevalent guidelines.


Name of

Fund

Manager

Age and

Qualification

Experience of the

Fund Manager in the

last 10 years

Names of other

schemes under his

management

Tenure as

Fund

Manager of

the Scheme

Mr. Devang

Shah

38

B. Com, ACA

Fund Manager –

Fixed Income, Axis

Asset

Management

Company Ltd.

(October 16, 2012

Axis Strategic Bond


Dhaval Patel), Axis

Short Term Fund, Axis

Gilt Fund (along with

Mr. Kaustubh Sule),

8 years

44 Axis Liquid Fund

till date)

Fund Manager,

ICICI Prudential

Asset

Management

Company Ltd.

(April 2008 –

October 2012)

Analyst, Deutsche

Asset

Management

(India) Pvt. Ltd.

(2006-2008)

Assistant Manager,

Pricewaterhouse

Coopers (2004-

2006)

Axis Dynamic Bond


R. Sivakumar), Axis

Liquid Fund (Along

with Mr. Aditya

Pagaria), Axis

Arbitrage Fund

(Along with Mr.

Viresh Joshi), Axis

Gold Fund, Axis Gold

ETF, Axis Treasury

Advantage Fund

(Along with Mr.

Aditya Pagaria), Axis

Regular Saver Fund

(Along with Mr.

Ashish Naik and Mr.

Sachin Jain), Axis

Credit Risk Fund

(along with Mr.

Dhaval Patel), Axis

Fixed Term Plans, Axis

Corporate Debt

Fund and Axis Money

Market Fund (along

with Mr. Aditya

Pagaria).

Mr. Aditya

Pagaria

36 years,

Bachelor in

Management

Studies, Post

Graduate

Diploma in

Business

Management

Axis Asset

Management

Company Ltd. (Fund

Manager - Fixed

Income) - (August 1,

2016 till date)

ICICI Prudential Asset

Management

Company Ltd. (Fund

Manager - Fixed

Income) - (Nov. 30,

2011 - July 26, 2016)

(Operations) -

(May 03, 2007 -

Nov. 29, 2011)

Axis Treasury

Advantage Fund

(along with Mr.

Devang Shah), Axis

Liquid Fund (along

with Mr. Devang

Shah), Axis Equity

Advantage Fund -

Series 1 and Series 2

(along with Mr.

Shreyash Devalkar),

Axis Banking & PSU

Debt Fund, Axis Ultra

Short Term Fund

(along with Mr.

Sachin Jain), Axis

Overnight Fund and

Axis Money Market

Fund (along with Mr.

Devang Shah).

4 years

Presently, the Trustee/AMC has not designated a dedicated Fund Manager for investment

in Foreign Securities. However, it shall be ensured that there is a dedicated fund manager

for investment in foreign securities as and when the fund makes investment in foreign

securities.




1. The Scheme shall not invest more than 10% of its NAV in debt instruments comprising

money market instruments and non-money market instruments issued by a single issuer,

which are rated not below investment grade by a credit rating agency authorized to

carry out such activity under the SEBI Act, 1992. Such investment limit may be extended

45 Axis Liquid Fund

to 12% of the NAV of the Scheme with the prior approval of the Board of Trustee and

the Board of Directors of AMC.

Provided that such limit shall not be applicable for investment in Government and

Securities treasury bills and collateralized borrowing and lending obligations.

Provided further that investments within such limit can be made in the mortgaged

backed securitised debt, which are rated not below investment grade by a credit

rating agency, registered with SEBI.


except Government Securities, money market instruments and derivative products such

as Interest Rate Swaps, Interest Rate Futures, etc. which are used by mutual fund for

hedging.


maximum of 10% of the debt portfolio of the Scheme subject to such conditions as may

be specified by the Board from time to time:

Provided further that the Scheme shall comply with the norms under this clause within

the time and in the manner as may be specified by the Board:

Provided further that the norms for investments by the Scheme in unrated debt

instruments shall be as specified by the Board from time to time.

Further the investments by the Scheme shall be in compliance with SEBI circular no.

SEBI/HO/IMD/DF2/CIR/P/2019/104 dated October 1, 2019 and as amended by SEBI from

time to time.

3. The Scheme shall not invest in debt securities having Structured Obligations (SO rating)

and / or credit enhancements (CE rating). However, debt securities with government

guarantee shall be excluded from such restriction.


(restricted to only debt and liquid funds) without charging any fees, provided the

aggregate inter-scheme investment made by all the schemes under the same

management or in schemes under the management of any other asset management

company shall not exceed 5% of the Net Asset Value of the Mutual Fund.

5. The Scheme shall not make any investment in :

a) any unlisted security of an associate or group company of the sponsor; or

b) any security issued by way of private placement by an associate or group

company of the sponsor; or

c) the listed securities of group companies of the sponsor which is in excess of 25% of

the net assets.

6. The Mutual Fund shall get the securities purchased transferred in the name of the Fund

on account of the concerned Scheme, wherever investments are intended to be of a

long-term nature.


permitted provided:

a) such transfers are done at the prevailing market price for quoted instruments on

spot basis (spot basis shall have the same meaning as specified by a Stock

Exchange for spot transactions); and

b) the securities so transferred shall be in conformity with the investment objective of

the Scheme to which such transfer has been made.

8. The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all

cases of purchases, take delivery of relevant securities and in all cases of sale, deliver

the securities:

Provided that the Mutual Fund may engage in Short Selling of securities in accordance

with the framework relating to Short Selling and securities lending and borrowing

specified by SEBI.

Provided further that the Mutual Fund may enter into Derivatives transactions in a


46 Axis Liquid Fund

Provided further that sale of government security already contracted for purchase shall

be permitted in accordance with the guidelines issued by the RBI in this regard.

The Scheme shall not make any investment in any fund of funds scheme.

9. The Scheme shall hold at least 20% of its net assets in liquid assets. For this purpose,

‘liquid assets’ shall include Cash, Government Securities, T-bills and Repo on

Government Securities.

In case, the exposure in such liquid assets falls below 20% of net assets of the Scheme,

the AMC shall ensure compliance with the above requirement before making any

further investments.

10. The Scheme shall not park funds pending deployment in short term deposits of

scheduled commercial banks.

11. The Scheme shall not invest in debt securities having structured obligations (SO rating)

and / or credit enhancement (CE rating). However, debt securities with government

guarantee shall be excluded from such restriction.


13. The Scheme shall not borrow except to meet temporary liquidity needs of the Fund for

the purpose of Repurchase/Redemption of Unit or payment of interest and/or Dividend

to the Unit holder.

Provided that the Scheme shall not borrow more than 20% of the net assets of the

individual Scheme and the duration of the borrowing shall not exceed a period of 6

months.

14. Further, SEBI vide its circular no. Cir/ IMD/ DF/ 11/ 2010 dated August 18, 2010 has

prescribed the following investment restrictions w.r.t. investment in derivatives:

S. No. Particulars

1 The cumulative gross exposure through debt and derivative positions shall not

exceed 100% of the net assets of the Scheme. Cash or cash equivalents with

residual maturity of less than 91 days shall be treated as not creating any

exposure.


written options.

3 The total exposure related to option premium paid shall not exceed 20% of

the net assets of the Scheme.

4 Exposure due to hedging positions may not be included in the above

mentioned limits subject to the following:

a. Hedging positions are the derivative positions that reduce possible losses

on an existing position in securities and till the existing position remains.

b. Hedging positions cannot be taken for existing derivative positions.

Exposure due to such positions shall have to be added and treated under

limits mentioned in Point 1.

c. Any derivative instrument used to hedge has the same underlying security

as the existing position being hedged.




5 Exposure due to derivative positions taken for hedging purposes in excess of

the underlying position against which the hedging position has been taken,

shall be treated under the limits mentioned in point 1.

6 Each position taken in derivatives shall have an associated exposure as

defined under. Exposure is the maximum possible loss that may occur on a

position. However, certain derivative positions may theoretically have

unlimited possible loss. Exposure in derivative positions shall be computed as

follows:

Position Exposure


47 Axis Liquid Fund


Option bought Option Premium Paid * Lot Size * Number of Contracts.

7 The Scheme may enter into plain vanilla interest rate swaps for hedging

purposes. The counter party in such transactions has to be an entity

recognized as a market maker by RBI. Further, the value of the notional

principal in such cases shall not exceed the value of respective existing assets

being hedged by the Scheme. Exposure to a single counterparty in such

transactions shall not exceed 10% of the net assets of the Scheme.



Directors of Trustee Company and the Asset Management Company, from time to time.

At present the following conditions and norms shall apply to repo in corporate debt

securities:

(i) The gross exposure of the Scheme to repo transactions in corporate debt securities

shall not be more than 10 % of the net assets of the Scheme.

(ii) The cumulative gross exposure through repo transactions in corporate debt

securities along with equity, debt and derivatives shall not exceed 100% of the net



corporate debt securities

(iv) The Scheme shall borrow through repo transactions only if the tenor of the

transaction does not exceed a period of six months.










transactions and the same shall be used for selection of counterparties for

corporate bond repos. All repo transactions in corporate bonds will be governed by

a repo agreement as specified by FIMMDA and / or other specified authorities.


The exposure limit/investment restrictions prescribed under the Seventh Schedule of


applicable to repo transactions in corporate bonds. The Scheme shall further follow

guidelines framed by Trustee and the AMC from time to time.









failing to honor the repurchase leg of the repo. In such a circumstance, the Fund

would suffer a loss if the value of the collateral depreciates by more than the

haircut. The fall in the value of the collateral could be on account of higher yields

and/ or deterioration of credit quality.


relatively high degree of safety in relation to the interest rate risk on the collateral.

The risk of collateral depreciation based on historical volatility is given in the table

below:




48 Axis Liquid Fund

10%

1 day 258 136 94 48

7 days 98 52 36 18

In the above table, the price volatility of a 10-year bond is about 3.4% annualized.

That is a 10% price move represents nearly a 3-sigma event on an annualized basis.

For overnight tenors, this represents a 48-sigma event (for comparison a 6-sigma

event occurs about once in a million observations).


interest rate risk. Credit event risk remains (the collateral could default during the

tenor of the repo). This risk is to be mitigated by ensuring that the collateral is

acceptable from a credit point of view.

16. The total exposure in a particular sector (excluding investments in Bank CDs, CBLO,

Government Securities, T-Bills, short term deposits of scheduled commercial banks and

AAA rated securities issued by Public Financial Institutions and Public Sector Banks) shall


Provided that an additional exposure to financial services sector (over and above the

limit of 20%) not exceeding 10% of the net assets of the Scheme shall be allowed by

way of increase in exposure to Housing Finance Companies (HFCs) only;

Provided further that the additional exposure to such securities issued by HFCs are rated

AA and above and these HFCs are registered with National Housing Bank (NBH) and the

total Investment/exposure in HFCs shall not exceed 20% of the net assets of the Scheme.

Further, an additional exposure of 5% of the net assets of the Scheme shall be allowed

for investments in securitized debt instruments based on retail housing loan portfolio

and/or affordable housing loan portfolio.

17. The total exposure in a particular group (excluding investments in securities issued by

Public Sector Units, Public Financial Institutions and Public Sector Banks) shall not exceed

20% of the net assets of the Scheme. Such investment limit may be extended to 25% of

the net assets of the Scheme with the prior approval of the Board of Trustees.

For this purpose, a group means a group as defined under regulation 2 (mm) of SEBI

(MF) Regulations and shall include an entity, its subsidiaries, fellow subsidiaries, its holding

company and its associates.

Further, limit for investment in debt and money market instruments of group companies

of both the sponsor and AMC shall not exceed 10% of the net assets of the Scheme.

Such investment limit can be extended to 15% with the prior approval of the Board of

Trustees.

The Scheme will comply with the other Regulations applicable to the investments of Mutual

Funds from time to time.


The AMC/Trustee may alter these above stated restrictions from time to time to the extent

the Regulations change, so as to permit the Scheme to make its investments in the full

spectrum of permitted investments for mutual funds to achieve its respective investment

objective.




49 Axis Liquid Fund


money market instrument affected by a credit event, that has been segregated in a

mutual fund scheme. The term ‘main portfolio’ shall mean the scheme portfolio excluding

the segregated portfolio. The term ‘total portfolio’ shall mean the scheme portfolio

including the securities affected by the credit event.

Credit Event








considered. Creation of segregated portfolio shall be based on issuer level credit events

as mentioned above and implemented at the ISIN level.






Credit event in this case shall be ‘actual default’ by the issuer of such instruments

and shall be considered for creation of segregated portfolio.






money market instrument and its impact on the investors. Axis Mutual Fund shall

disclose that the segregation shall be subject to Trustee approval. Additionally, the

said press release shall be prominently disclosed on the website of the AMC.

c. ensure that till the time the Trustee approval is received, which in no case shall

exceed 1 business day from the day of credit event, the subscription and

redemption in the Scheme shall be suspended for processing with respect to

creation of units and payment on redemptions.



b. AMC shall issue a press release immediately with all relevant information pertaining

to the segregated portfolio. The said information will also be submitted to SEBI.


d. The NAV of both segregated and main portfolios shall be disclosed from the day of

the credit event.



f. No redemption and subscription shall be allowed in the segregated portfolio. AMC

shall enable listing of units of segregated portfolio on the recognized stock

exchange within 10 working days of creation of segregated portfolio and also

enable transfer of such units on receipt of transfer requests



Valuation


valuation shall take into account the credit event and the portfolio shall be valued based

50 Axis Liquid Fund

on the principles of fair valuation (i.e. realizable value of the assets) in terms of the relevant






Investors redeeming their units will get redemption proceeds based on the NAV of

main portfolio and will continue to hold the units of segregated portfolio.


based on its NAV.



Disclosure

In order to enable the existing as well as the prospective investors to take informed

decision, the following shall be adhered to:

a. A statement of holding indicating the units held by the investors in the segregated

portfolio along with the NAV of both segregated portfolio and main portfolio as on the

day of the credit event shall be communicated to the investors within 5 working days of

creation of the segregated portfolio.


documents, in monthly and half-yearly portfolio disclosures and in the annual report of

the mutual fund and the Scheme.



appear prominently under the name of the Scheme at all relevant places such as SID,

KIM-cum-Application Form, advertisement, AMC and AMFI websites, etc.


impact of creation of segregated portfolio. The Scheme performance should clearly

reflect the fall in NAV to the extent of the portfolio segregated due to the credit event

and the said fall in NAV along with recovery(ies), if any, shall be disclosed as a footnote

to the Scheme performance.

f. The disclosures at paragraph (d) and (e) above regarding the segregated portfolio shall

be carried out for a period of at least 3 years after the investments in segregated

portfolio are fully recovered/ written-off.



provided to the investors at the time of recovery and also at the time of writing-off of

the segregated securities.



However, TER (excluding the investment and advisory fees) can be charged, on a pro-

rata basis only upon recovery of the investments in segregated portfolio.




3) The legal charges related to recovery of the investments of the segregated portfolio

may be charged to the segregated portfolio in proportion to the amount of recovery.

However, the same shall be within the maximum TER limit as applicable to the main

portfolio. The legal charges in excess of the TER limits, if any, shall be borne by the AMC.

4) The costs related to segregated portfolio shall in no case be charged to the main

portfolio.



ensure that:


b. Upon recovery of money, whether partial or full, it shall be immediately distributed to

the investors in proportion to their holding in the segregated portfolio. Any recovery of

51 Axis Liquid Fund

amount of the security in the segregated portfolio even after the write off shall be

distributed to the investors of the segregated portfolio.



created.

In order to avoid mis-use of segregated portfolio, Trustees shall ensure to have a mechanism

in place to negatively impact the performance incentives of Fund Managers, Chief

Investment Officers (CIOs), etc. involved in the investment process of securities under the

segregated portfolio, mirroring the existing mechanism for performance incentives of the

AMC, including claw back of such amount to the segregated portfolio of the Scheme.


The below table shows how a rated security affected by a credit event will be segregated

and its impact on investors:


Downgrade

Event Date

July 22, 2019


1,131.9939)



security

Quantity Market

Price Per

Unit (Rs.)

Market Value

(Rs.)

% of

Net

Assets



9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 10.43%



Cash & cash

equivalents

50,321.20 4.45%

Net Assets 11,31,993.87 100.00%

Unit capital (no

of units)

1000.000

NAV (In Rs.) 1131.9939

Security

downgraded


Valuation

Marked down by




Security Rating

Type of the

security

Quantity

Market

Price Per

Unit (Rs.)

Market Value

(Rs.)

% of

Net

Assets



9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 11.99%

7.70% D Ltd. CRISIL D NCD 2,000 25.0000 50,000.00 5.08%


Cash & cash


Net Assets 9,83,993.87 100.00%

Unit capital (no

of units) 1000.000

NAV (In Rs.) 983.9939


52 Axis Liquid Fund


security

Quantity Market

Price Per

Unit (Rs.)

Market Value

(Rs.)

% of

Net

Assets



9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 12.64%


Cash & cash

equivalents

50,321.20 5.39%

Net Assets 9,33,993.87 100.00%

Unit capital (no

of units)

1000.000

NAV (In Rs.) 933.9939


Security Rating

Type of the

security

Quantity

Market

Price Per

Unit (Rs.)

Market Value

(Rs.)

% of

Net

Assets

7.70% D Ltd. CRISIL D NCD 2,000 25.0000 50,000.00 100.00%

Net Assets 50,000.00 100.00%

Unit capital (no

of units) 1000.000

NAV (In Rs.) 50.0000

0.0000


portfolio

Main Portfolio

Segregated

Portfolio

Total

Value

No. of Units 1,000 1,000

NAV (in Rs.) 933.9939 50.0000

Total Value (in

Rs.) 9,33,993.87 50,000.00 9,83,993.87


Performance of Axis Liquid Fund – Regular Plan – Growth Option as at October 31, 2020 is as

follows:

Period Axis Liquid Fund –

Regular Plan -

Growth Option^

NIFTY Liquid

Index




Since Inception (October 9, 2009) 7.58% 7.51%

Absolute returns for the past 5 financial years

53 Axis Liquid Fund

W.e.f. January 1, 2013 Axis Liquid Fund - Institutional Plan has been renamed as Axis Liquid

Fund. Further, w.e.f. November 29, 2019, Axis Liquid Fund has been renamed to Axis Liquid

Fund – Regular Plan.

Performance of Axis Liquid Fund – Retail Plan – Growth Option as at October 31, 2020 is as

follows:


Performance of Axis Liquid Fund - Direct Plan – Growth Option as at October 31, 2020 is as

follows:


Retail Plan - Growth

Option ^

NIFTY Liquid Index




Returns Since Inception (March 1, 2010) 7.21% 7.66%


Direct Plan - Growth

Option ^

NIFTY Liquid Index



5 year return 6.76% 6.51%

Returns Since Inception (December 31, 2012) 7.57% 7.38%

54 Axis Liquid Fund


^Past performance may or may not be sustained in future. Returns are compounded

annualized for period more than 1 year. Since inception returns are calculated on Rs. 1000

invested at inception. Calculations are based on Growth Option NAVs. Different plans have

different expense structure. Since inception returns for Retail Plan & Direct Plan are

calculated March 1, 2010 & January 1, 2013 respectively.

L. Additional Scheme Related Disclosures


1. Top 10 holdings by Issuer:

Name of the Issuer % of Net Assets

Government of India 49.84%

National Bank For Agriculture and Rural

Development 9.54%


Larsen & Toubro Limited 2.54%

L&T Finance Limited 2.25%

Reliance Retail Ventures Limited 1.88%

Godrej & Boyce Manufacturing Co Ltd 1.88%

National Fertilizers Limited 1.69%

IDFC First Bank Limited 1.50%


2. Fund allocation towards various Sectors:

Sector Classification % of Net Assets

GOVERNMENT OF INDIA 49.85%

FINANCIAL SERVICES 22.85%

OIL & GAS 8.29%

CONSUMER GOODS 4.71%

FERTILISERS & PESTICIDES 2.87%

CONSTRUCTION 2.53%

CEMENT & CEMENT PRODUCTS 2.44%

OTHERS^ 2.04%

MEDIA & ENTERTAINMENT 1.89%

SERVICES 0.94%

POWER 0.75%

AUTOMOBILE 0.75%

Cash & Cash Equivalent: 0.09%

Total 100.0%

^TREPS/Mutual Fund Units/Repo


55 Axis Liquid Fund


Portfolio turnover ratio: Not applicable


s

Sr.

No.

Category of Persons Net Asset Value of Units held as

on October 31, 2020 (in Rs.)

i AMC’s Board of Directors 4,46,82,017.99


iii Other key managerial personnel 1,53,35,109.30

Note:





56 Axis Liquid Fund




New Fund Offer Period

This is the period

during which a new

Scheme sells its Unit to

the Investors.

The New Fund Offer opened on October 8, 2009 and closed on

October 8, 2009. The units under the Scheme were allotted on October

9, 2009.

New Fund Offer Price:

This is the price per Unit

that the Investors have

to pay to invest during

the NFO.

Not Applicable

Minimum Amount for

Application/Switch in

the NFO

Not Applicable

Minimum Target

amount

Not Applicable

Maximum Amount to

be raised (if any)

Not Applicable

Plans / Options offered The Scheme offers the following Plans:

1) Axis Liquid Fund – Regular Plan

2) Axis Liquid Fund – Direct Plan

Both plans will have a common portfolio.

Each Plan offers the following Options:

• Growth option

• Dividend option

Options Sub-options Frequency of

dividend

Record

date

Growth Nil NA NA

Dividend Daily (reinvestment) Daily

(every day)

Daily

Weekly (payout and

reinvestment)

Weekly Every

Monday*

Monthly (payout and

reinvestment)

Monthly 25th of the

month*

*Next Business day if such day happens to be a non-business day.

The Trustee/AMC reserves the right to change the record date from

time to time.

Note: With effect from October 1, 2012, Retail Plan has been

discontinued for fresh subscriptions received on or after October 1,

2012.

Existing investors will continue to remain invested in the Retail Plans

(including Dividend reinvestment) till the existing investments are

redeemed and no fresh subscription shall be accepted in Retail Plan.

Dividend declared under any Dividend Reinvestment option of the

Retail Plan (i.e. Discontinued Plan) of the scheme shall be reinvested in

the corresponding options under Institutional Plan (Continuing Plan) of

the scheme. Please note that for the above dividend reinvestments, the

57 Axis Liquid Fund

minimum application amount criteria for purchases/switches under the

Continuing Plan shall not apply. However, the minimum redemption

amount/units criteria under the Continuing Plan shall apply.

Investors who have invested without Distributor code and have opted

for Dividend Reinvestment facility under Continuing Plan may note that

the dividend will continue to be reinvested in the Continuing Plan only.

W.e.f. January 1, 2013, Axis Liquid Fund – Institutional Plan has been

renamed to Axis Liquid Fund. Further, w.e.f. November 29, 2019, Axis

Liquid Fund has been renamed to Axis Liquid Fund – Regular Plan.

If Dividend payable under Dividend Payout option (Weekly Option) is

equal to or less than Rs. 25,000/- then the Dividend would be

compulsorily reinvested in the option of the Scheme.

Where Dividend payable under Dividend Payout option (Monthly

Option) is equal to or less than Rs. 500/- then the Dividend would be

compulsorily reinvested in the option of the Scheme.

However, Dividend payable in the above cases under the dividend

payout option of Retail Plan would be compulsorily reinvested in the

corresponding options under Axis Liquid Fund of the scheme.

The Investors should indicate plan/option for which Subscription is made

by indicating the choice in the appropriate box provided for this

purpose in the application form. In case of valid application received

without any choice of plan/option/facility, the following default

plan/option/facility will be considered;

Default plan

Investors subscribing under Direct Plan of a Scheme will have to

indicate “Direct Plan” against the Scheme name in the application

form e.g. “Axis Liquid Fund – Direct Plan”. Investors should also indicate

“Direct” in the ARN column of the application form. The investors may

refer to the following table for applicability of Direct Plan/ Regular Plan

under different scenario :-

Scenari

o

Broker Code

mentioned by the

investor

Plan mentioned by

the investor

Default Plan to

be captured










application form, the application shall be processed under Regular

Plan. The AMC shall contact and obtain the correct ARN code within 30

calendar days of the receipt of the application form from the investor/

distributor. In case, the correct code is not received within 30 calendar

days, the AMC shall reprocess the transaction under Direct Plan from

the date of application without any exit load.

Default option

Default Option – Growth

Default dividend frequency – Daily Option

58 Axis Liquid Fund

Default between Payout & Reinvestment Option - Reinvestment

Default Redemption


redemption / Switch request pertains to the Direct Plan, the same must

clearly be mentioned on the request (along with the folio number),

failing which the request would be processed from Axis Liquid Fund

Regular Plan. However, where Units under the requested Option are

held only under one Plan, the request would be processed under such

Plan.

Growth option

Dividends will not be declared under this option. The income

attributable to Units under this option will continue to remain invested in

the scheme and will be reflected in the NAV of Units under this option.

Dividend option

Under this option, Dividends will be declared (subject to deduction of

tax at source, if any) at specified frequencies at the discretion of the

Trustee, subject to availability of distributable surplus calculated in

accordance with SEBI (MF) Regulations. On payment of Dividend, the

NAV of the Unit under Dividend option will fall to the extent of the

Dividend payout and applicable statutory levies, if any.

It must be distinctly understood that the actual declaration of Dividend

and frequency thereof is at the sole discretion of the Trustee. There is no

assurance or guarantee to the Unit holders as to the rate of Dividend

distribution nor that will the Dividend be paid regularly. The Trustee

reserves the right to declare a Dividend at any other frequency in

addition to the frequencies mentioned above.


Under this facility, Dividend declared, if any, will be paid (subject to

deduction of Dividend distribution tax and statutory levy, if any) to those

Unit holder, whose names appear in the register of Unit holders on the

notified record date.


Under this facility, the Dividend due and payable to the Unit holders will

be compulsorily and without any further act by the Unit holder,

reinvested in the respective Dividend option at a price based on the

prevailing ex-Dividend Net Asset Value per Unit. The amount of Dividend

re-invested will be net of tax deducted at source, wherever applicable.

The Dividends so reinvested shall constitute a constructive payment of

Dividends to the Unit holders and a constructive receipt of the same


On reinvestment of Dividends, the number of Units to the credit of Unit

holder will increase to the extent of the Dividend reinvested divided by

the Applicable NAV. There shall, however, be no Load on the Dividend

so reinvested.

Dividend Policy Under the Dividend option, the Trustee will have the discretion to

declare the Dividend as per the specified frequencies, subject to

availability of distributable surplus calculated in accordance with the

Regulations. The actual declaration of Dividend and frequency will

inter-alia, depend on availability of distributable surplus calculated in

accordance with SEBI (MF) Regulations and the decisions of the Trustee

shall be final in this regard. There is no assurance or guarantee to the

Unit holders as to the rate of Dividend nor that the Dividend will be paid

regularly.

59 Axis Liquid Fund


declaration of Dividend or may provide for additional frequency for

declaration of Dividend.


In accordance with SEBI circular no. SEBI/ IMD/ Cir No. 1/ 64057/06

dated April 4, 2006, the procedure for Dividend distribution would be as

under:

1. Quantum of Dividend and the record date will be fixed by the

Trustee. Dividend so decided shall be paid, subject to availability of

distributable surplus.



Dividend including the record date, in one English daily newspaper

having nationwide circulation as well as in a newspaper published

in the language of the region where the head office of the Mutual

Fund is situated.


purpose of determining the eligibility of Investors whose names

appear on the register of Unit holders for receiving Dividends. The

Record Date will be 5 calendar days from the date of issue of

notice.

4. The notice will, in font size 10, bold, categorically state that pursuant

to payment of Dividend, the NAV of the Scheme would fall to the

extent of payout and statutory levy (if applicable).

5. The NAV will be adjusted to the extent of Dividend distribution and

statutory levy, if any, at the close of Business Hours on record date.


probable date of Dividend declaration in any manner whatsoever


However, the requirement of giving notice shall not be applicable for

Dividend options having frequency up to one month.



Who can invest

This is an indicative list

and you are

requested to consult

your financial advisor

to ascertain whether

the Scheme is suitable

to your risk profile.

The following persons (subject to, wherever relevant, purchase of unit of

Mutual Funds, being permitted under respective constitutions, and



1. Resident adult individuals either singly or jointly (not exceeding

three) or on an Anyone or Survivor basis;





minor investments;


5. Limited Liability Partnerships




societies registered under the Societies Registration Act, 1860(so


constitutions;

8. Banks (including Co-operative Banks and Regional Rural Banks) and

Financial Institutions;

9. Religious and Charitable Trusts, Wakfs or endowments of private

trusts (subject to receipt of necessary approvals as "Public Securities"

as required) and Private trusts authorised to invest in mutual fund

schemes under their trust deeds;


60 Axis Liquid Fund

Overseas Citizen of India (OCI) residing abroad on repatriation basis

or on non-repatriation basis;

11. Foreign Portfolio Investor (FPI), registered with SEBI on repatriation

basis. These investments shall be subject to the conditions

prescribed by SEBI, RBI, Income Tax authorities and the AMC, from

time to time;






15. Provident/ Pension/ Gratuity Fund to the extent they are permitted;

16. Other schemes of Axis Mutual Fund or any other mutual fund subject

to the conditions and limits prescribed by SEBI Regulations;




19. Such other category of person(s) permitted to make investments

and as may be specified by the AMC / Trustee from time to time.




company may also reject any application for subscription of units if the

application is invalid, incomplete, or if the AMC/ Trustee company for

any other reason does not believe that it would be in the interest of the

scheme or its unitholders to accept such an application.


Investors should provide their own email address and mobile number to

enable Axis AMC for speed and ease of communication in a

convenient and cost-effective manner, and to help prevent fraudulent

transactions.


SEBI vide its circular no. CIR/MIRSD/2/2013 dated January 24, 2013

further read with AMFI Best practices guidelines circular no. 62/2015-16

dated September 18, 2015 and other applicable regulations has

prescribed guidelines, for identification of Beneficial Ownership to be

followed by the intermediaries. A ‘Beneficial owner’ is defined as a

natural person or persons who ultimately own, control or influence a

client and/or persons on whose behalf a transaction is being

conducted, and includes a person who exercises ultimate effective

control over a legal person or arrangement. In this regard, all categories

of investors (including all new / existing investors / unitholders) (except

individuals, companies listed on a stock exchange or majority-owned

subsidiary of such companies) are mandatorily required to provide

beneficial ownership details for all investments. Failing which, fund

reserves the right to reject applications / subscription requests /

additional subscription requests (including switches) / restrict further

investments or seek additional information from investors who have not

provided the requisite information on beneficial ownership. In the event

of change in beneficial ownership, investors are requested to

immediately update the details with the Fund/Registrar.

Foreign Account Tax Compliance Act and Common Reporting

Standards requirements


the globe [e.g. information exchange laws such as Foreign Account Tax

Compliance Act (‘FATCA’) and Common Reporting Standard (‘CRS')],

financial institutions like Axis Mutual Fund (‘Axis MF’ or ‘the Fund’) are

61 Axis Liquid Fund

being cast with additional investor and counterparty account related

due diligence requirements.

The Central Board of Direct Taxes (CBDT) has notified Rules 114F to 114H,

as part of the Income-tax Rules, 1962, which Rules require Indian




counterparties. According to the FATCA-CRS Rules, financial institutions

in India are required to report tax information about account holders

that are tax resident of U.S. and other foreign countries, to the CBDT/

Indian Government which will, in turn, relay that information to the US

Internal Revenue Service (IRS) and governments of other foreign

countries.





provide information to any institutions such as withholding agents for the

purpose of ensuring appropriate withholding from the account or any

proceeds in relation thereto. As may be required by domestic or


withhold and pay out any sums from your account or close or suspend

your account(s). Axis MF may also have to comply with other similar

laws as and when applicable.



documentation / declarations as and when deemed necessary by the

Investment Manager in accordance with Applicable Laws. In case

prospective investor / Unit holder fails to furnish the relevant information

/ documentation / declarations in accordance with Applicable Laws,

the Fund reserves the right to reject the application or redeem the Units

held directly or beneficially and may also require reporting of such

accounts and/or levy of withholding tax on payments made to the Unit

holders / investor and/or take any other action/s in accordance with

Applicable Laws. FATCA-CRS provisions are relevant not only at on-

boarding stage of Unit holders but also throughout the life cycle of

investment with the Fund. Unit holders therefore should intimate to the

Fund/the Investment Manager, any change in their status with respect

to any FATCA-CRS related information / documentation / declarations

provided by them previously, including but not limited to any

declarations provided in respect of residency of the Unit holders for tax

purposes promptly, i.e. within 30 days. Further, if the Fund and/or the

Investment Manager is required by Applicable Laws, to provide

information regarding the Fund and/or the unit holders / investors to any

regulatory authority and/or the Fund Investments and/or income

therefrom, and the Fund and/or the Investment Manager complies with

such request in good faith, whether or not it was in fact enforceable,

they shall not be liable to the Unit holders / investors or to any other

party as a result of such compliance or in connection with such

compliance.



Please note that Axis MF will be unable to provide advice to any

investor or counterparty about their tax status or FATCA/CRS

classification relevant to their account. It is the responsibility of the

investor or counterparty to ensure that they record their correct tax

status / FATCA/ CRS classification. Investor/ counterparty may seek

62 Axis Liquid Fund

advice from their tax advisor in this regard. The onus to provide

accurate, adequate and timely inputs in this regard would be that of

the investor or counterparty. Any changes in earlier information



declarations to facilitate compliance, considering India’s commitment

to implement CRS and FATCA under the relevant international treaties.


SEBI vide circular no. MIRSD/SE/Cir-21/2011 dated October 5, 2011 had

mandated (i) Standard KYC form with uniform KYC guidelines and

supporting documents to be used by SEBI registered intermediaries and

(ii) Centralized KYC registration through KYC Registration Agencies

(KRAs) registered with SEBI, w.e.f. January 1, 2012, to bring about

uniform KYC process in the securities market, based on SEBI prescribed

norms and the KYC details are shared with all SEBI registered

intermediaries by the KRAs.

Subsequently, SEBI, vide its circular no. MIRSD/Cir-5/2012 dated April 13,

2012 advised various intermediaries to upload KYC data of its existing

customers into the KRA system. While uploading KYC data into the KRA

system, intermediaries were also required to highlight such ‘Missing/Not

Available’ KYC information of a customer, which was either not required

or not taken previously, but was mandatory as per uniform KYC

guidelines issued by SEBI.

In accordance with AMFI best practices guidelines circular no. 62/2015-

16 dated September 18, 2015, it is mandatory for all new/existing

investors to provide additional KYC information such as Income details,

Occupation, association with politically exposed person, net worth etc.

as mentioned in the application form. Subscription requests, without

providing these details, are liable to be rejected. No subscriptions

(whether fresh or additional) and switches pertaining to ‘KYC on-hold’

cases are accepted, unless the investor / unitholder also submits

relevant KYC missing / updated information, which is appropriately

updated on the KRA - KYC.



which their applications / transaction requests for additional

subscription (including switches) is liable to be rejected.

Central KYC Processes

Central Registry of Securitisation and Asset Reconstruction and Security

interest of India (‘CERSAI’) has been authorised by Government of India

to act as Central KYC Records Registry under Prevention of Money-

Laundering (Maintenance of Records) Rules, 2005 (‘PMLA Rules’).



prescribed that the Mutual Fund/ AMC should capture KYC information

for sharing with CKYCR as per the KYC template prescribed by CERSAI

for uniform and smooth implementation of CKYC norms for onboarding

of new investors in Mutual Funds.

In accordance with the aforesaid SEBI circulars and AMFI best practice

guidelines for implementation of CKYC:


regime i.e. a new investor who is new to KRA system and whose KYC

is not registered or verified in the KRA system shall be required to

63 Axis Liquid Fund

provide KYC details in the CKYC Form to the Mutual Fund/ AMC.


additional / missing information using Supplementary KYC Form or fill

CKYC Form. The said form is available on Axis Mutual Fund website

www.axismf.com.

c) Details of investors shall be uploaded on the system of CKYCR and a

14 digit unique KYC Identification Number (‘KIN’) will be generated

for such customer.

d) New investors, who have completed CKYC process & have

obtained KIN may quote their KIN in the application form instead of

submitting CKYC Form/ Supplementary KYC Form.

e) AMC/ Mutual Fund shall use the KIN of the investor to download the

KYC information from CKYCR system and update its records.

f) If the PAN of investor is not updated on CKYCR system, the investor

should submit self-certified copy of PAN card to the Mutual Fund/

AMC.

The AMC reserves the right to reject transaction application in case the

investor(s) fails to submit information and/or documentation as

mentioned above. In the event of non-compliance of KYC

requirements, the Trustee / AMC reserves the right to freeze the folio of

the investor(s).




proof of possession of Aadhar can be accepted as a valid document

for proof of address or proof of identity of investors, provided the

investor redact or blackout his Aadhar number while submitting the

applications for investments.

The aforesaid guidelines will be subject to change as per the directives

issued by the concerned regulatory/ government authority from time to

time.


Who cannot invest 1. Any individual who is a foreign national or any other entity that is not

an Indian resident under the Foreign Exchange Management Act,

1999 (FEMA Act) except where registered with SEBI as FPI or

otherwise explicitly permitted under FEMA Act/ by RBI/ by any other

applicable authority.

2. Pursuant to RBI A.P. (DIR Series) circular no. 14 dated September 16,

2003, Overseas Corporate Bodies (OCBs) cannot invest in Mutual

Funds.



time.



a. subscriptions received by way of lump sum / switches

/systematic transactions received from Non-resident Indians

(NRIs) / Persons of Indian origin (PIO) / Overseas Citizen of India

(OCI) who at the time of such investment, are present in India

and

b. FPIs

5. Such other persons as may be specified by AMC from time to time.

These investors need to submit a physical transaction request along

with such documents as may be prescribed by the AMC/ the

Trustee/ the Fund from time to time.

64 Axis Liquid Fund


hold/reject the transaction request/reverse allotted units, as the

case may be, as and when identified by the AMC, which are not in

compliance with the terms and conditions notified in this regard.

The Trustee / the AMC /the Fund reserve the right to change/

modify the above provisions at a later date.

Where can you submit

the filled up

applications.

Not Applicable


Listing Axis Liquid Fund is an open ended Liquid Scheme under which Sale and

Repurchase will be made on a continuous basis and therefore listing on

stock exchanges is not envisaged. However, the Trustee reserves the

right to list the Units as and when considered necessary in the interest of

Unit holders of the Fund.

Special Products /

facilities available

during the NFO

Not Applicable


reissue of

Repurchased Units,

including the

maximum extent, the

manner of reissue, the

entity (the Scheme or

the AMC) involved in

the same.


Restrictions, if any, on

the right to freely

retain or dispose of

Units being offered.

Pledge of Units

The Unit under the Scheme (subject to completion of Lock in Period, if

any) may be offered as security by way of a pledge / charge in favour

of scheduled banks, financial institutions, non-banking finance

companies (NBFCs), or any other person. The AMC and / or the ISC will

note and record such Pledged Units. The AMC shall mark a lien only

upon receiving the duly completed form and documents as it may

require. Disbursement of such loans will be at the entire discretion of the

bank / financial institution / NBFC or any other person concerned and

the Mutual Fund assumes no responsibility thereof.

The Pledger will not be able to redeem Units that are pledged until the

entity to which the Unit are pledged provides written authorisation to

the Mutual Fund that the pledge / lien charge may be removed. As

long as Unit are pledged, the Pledgee will have complete authority to

redeem such Units. Dividends declared on Units under lien will be paid /

re-invested to the credit of the Unit Holder and not the lien holder unless

specified otherwise in the lien letter.

Lien on Units

On an ongoing basis, when existing and new investors make

Subscriptions, a lien on Units allotted will be created and such Unit shall

not be available for redemption until the payment proceeds are

realised by the Scheme. In case a Unit holder redeems Units soon after

making purchases, the redemption cheque will not be dispatched until

sufficient time has elapsed to provide reasonable assurance that

cheques or drafts for Unit purchased have been cleared.


shall be reversed and the Units allotted earlier shall be cancelled, and a

fresh Account Statement / Confirmation slip shall be dispatched to the

Unit holder. For NRIs, the Scheme may mark a lien on Unit in case

65 Axis Liquid Fund

documents which need to be submitted are not given in addition to the

application form and before the submission of the redemption request.

However, the AMC reserves the right to change operational guidelines

for lien on Unit from time to time.


Subject to the approval of the Boards of the AMC and of the Trustee

and subject also to necessary communication of the same to SEBI, the




prevailing regulations, restriction on/suspension of redemptions / switch-

out of Units of the Scheme, may be imposed when there are

circumstances leading to systemic crisis or event that severely constricts

market liquidity or the efficient functioning of markets such as:







emergencies;

c) Operational issues: when exceptional circumstances are caused by

force majeure, unpredictable operational problems and technical

failures (e.g. a black out).


be imposed for a specified period of time not exceeding 10 working

days in any 90 days period.

When restriction on / suspension of redemption of Units of the Scheme is

imposed, the following procedure shall be applied

i. No redemption / switch-out requests upto Rs. 2 lakhs shall be

subject to such restriction.

ii. Where redemption / switch-out requests are above Rs. 2 lakhs,

the AMC shall redeem the first Rs. 2 lakhs without such restriction

and remaining part over and above Rs. 2 lakhs shall be subject

to such restriction.



approval of SEBI.



Also refer to the section ‘Suspension of Purchase and Redemption of

Units’ in the Statement of Additional Information.

Third Party Payment

Avoidance

and additional

documents /



Cash Investments in

mutual funds


small investors, who may not be tax payers and may not have

PAN/bank accounts, such as farmers, small

traders/businessmen/workers, SEBI has permitted receipt of cash

transactions for fresh purchases/ additional purchases to the extent of

Rs.50,000/- per investor, per mutual fund, per financial year subject to:

66 Axis Liquid Fund

i. compliance with Prevention of Money Laundering Act, 2002 and Rules

framed there under; the SEBI Circular(s) on Anti Money Laundering

(AML) and other applicable Anti Money Laundering Rules, Regulations

and Guidelines; and


However, payment towards redemptions, dividend, etc. with respect to

aforementioned investments shall be paid only through banking

channel.



be displayed on its website viz. as well as at the Investor Service

Centres, once the facility is made available to the investors.


Default Plan/ Option The investors may refer to the paragraph under New Fund offer Section

for applicability of Direct Plan/ Regular Plan under different scenario.



which the Scheme will

reopen for

Subscriptions/Redemp

tions after the closure

of the NFO period.

The Scheme has reopened for continuous subscription and redemption

from October 12, 2009.

Ongoing price for

Subscription

(purchase)/Switch-in

(from other

Schemes/Plans of the

Mutual Fund) by

investors.


need to pay for

purchase/Switch-in.




Schemes. Hence, no entry load is levied for subscription transactions by

the Scheme.





= Rs. 10* (1+NIL)

= Rs. 10

Ongoing price for

Redemption (sale)

/Switch outs (to other


Mutual Fund) by

Investors.

This is the price you will

receive for

redemptions/Switch

outs.

At the Applicable NAV subject to prevailing exit load.

Ongoing price for redemption /Switch out (to other Schemes/Plans of

the Mutual Fund) is price which a Unit holder will receive for

redemption/Switch-outs. During the continuous offer of the Scheme, the

Unit holder can redeem the Units at Applicable NAV, subject to

payment of Exit Load, if any. It will be calculated as follows:



Example: If the Applicable NAV is Rs. 10, Exit Load is 2% then redemption

price will be:

= Rs. 10* (1-0.02)

= Rs. 9.80



maximum limits prescribed under the Regulations.

Any change in Load structure will be effective on prospective basis and

will not affect the existing Unit holder in any manner.

However, the Mutual Fund will ensure that the Redemption Price will not

67 Axis Liquid Fund

be lower than 93% of the Applicable NAV provided that the difference

between the Redemption Price and the Subscription /Purchase Price at

any point in time shall not exceed the permitted limit as prescribed by

SEBI from time to time, which is currently 7% calculated on the

Subscription/ Purchase Price. The Purchase Price shall be at applicable

NAV.

Cut off timing for

Subscriptions/

redemptions/ Switches

This is the time before

which your application

(complete in all

respects) should reach

the Official Points of

Acceptance.


i. where the application is received upto 1.30 p.m. on a day and

funds are available for utilization before the cut-off time without

availing any credit facility, whether, intra-day or otherwise – the

closing NAV of the day immediately preceding the day of receipt

of application;

ii. where the application is received after 1.30 p.m. on a day and

funds are available for utilization on the same day without availing

any credit facility, whether, intra-day or otherwise – the closing NAV

of the day immediately preceding the next business day ; and

iii. irrespective of the time of receipt of application, where the funds

are not available for utilization before the cut-off time without

availing any credit facility, whether, intra-day or otherwise – the

closing NAV of the day immediately preceding the day on which

the funds are available for utilization.

For allotment of units in respect of purchase in to the Scheme, it shall be

ensured that:

i. Application is received before the applicable cut-off time.


application are credited to the bank account of the Scheme


iii. The funds are available for utilization before the cut-off time without

availing any credit facility whether intra-day or otherwise, by the

Scheme.

For allotment of units in respect of switch-in to the Scheme from other

schemes, it shall be ensured that:


time.






respective switch-in schemes.

ii) Redemptions including Switch - outs:

a. In respect of valid applications received upto 3.00 p.m. – the closing

NAV of the day immediately preceding the next Business Day ; and

b. In respect of valid applications received after 3 p.m. by the Mutual

Fund, the closing NAV of the next Business Day shall be applicable.

The above mentioned cut off timing shall be applicable to transactions

through the online trading platform.

In case of Transaction through Stock Exchange Infrastructure, the Date

of Acceptance will be reckoned as per the date & time; the

transaction is entered in stock exchange’s infrastructure for which a

system generated confirmation slip will be issued to the investor

Where can the

applications for

purchase/redemption

Switches be


68 Axis Liquid Fund

submitted?

Minimum amount for

purchase/Redemption

/Switches


Growth Option : Rs. 500 and in multiples of Re. 1/- thereafter

All other options: Rs. 5,000 and in multiples of Re. 1/- thereafter

Minimum Additional Purchase/Switch in Amount

Growth Option : Rs. 500 and in multiples of Re. 1/- thereafter

All other options: Rs.1000 and in multiples of Re. 1/- thereafter

Minimum application amount is applicable at the time of creation of

new folio and at the time of first investment in a plan.


There will be no minimum redemption criterion. The Redemption /

Switch-out would be permitted to the extent of credit balance in the

Unit holder’s account of the Plan(s) / Option(s) of the Scheme (subject

to completion of Lock-in period or release of pledge / lien or other

encumbrances). The Redemption / Switch-out request can be made by

specifying the rupee amount or by specifying the number of Units of the

respective Plan(s) / Option(s) to be redeemed. In case a Redemption /

Switch-out request received is for both, a specified rupee amount and

a specified number of Units of the respective Plan(s)/ Option(s), the

specified number of Units will be considered the definitive request. In

case the value / number of available units held in the Unit holder’s folio

/ account under the Plan / Option of the Scheme is less than the

amount / number of units specified in the redemption / switch-out

request, then the transaction shall be treated as an all units redemption

and the entire balance of available Units in the folio / account of the

Unit holder shall be redeemed.

In case of Units held in dematerialized mode, the Unit Holder can give a

request for Redemption only in number of Units and in fractional units

also. Depository participants of registered Depositories to process only

redemption request of units held in demat form.


minimum redemption amount/switch-out

Minimum balance to

be maintained and

consequences of non

maintenance.

Currently, there is no minimum balance requirement.

However, the AMC / Trustee may decide to introduce minimum

balance requirements later, if they so deem fit. In such case, in the

event of non-maintenance of minimum balance for any particular

situations, the Units may be compulsorily redeemed.



redeem all the Units in the folio and send the Redemption proceeds to

the Unit holder.

Special Products

available

SIP facility is not available under the Scheme.

Purchase/Redemption of units through Stock Exchange Infrastructure


mutual fund trading platforms of the Bombay Stock Exchange (“BSE”),

National Stock Exchange (“NSE”) and Indian Commodity Exchange Ltd.

(‘ICEX’) – with NSDL and CDSL as depositories for such units of the

mutual fund.

NSE has introduced Mutual Fund Service System (MFSS) Platform and

BSE has introduced BSE StAR MF Platform and ICEX has introduced

ICEXMF platform (Stock Exchange Platform).

69 Axis Liquid Fund

The following are the salient features of the MFSS / BSE StAR MF / ICEXMF

Platform:

1. The facility i.e. purchase/redemption is available for both existing and

new investors.

2. The Investors will be eligible to purchase/redeem units of the scheme.

3. The facility can be availed by both, investors under Direct Plan

offered by the schemes and investors investing through Distributors

under the Regular Plan offered by the schemes.

.


The following shall be the additional Official Point of Acceptance of

Transactions for the Scheme:

All trading members of BSE, NSE & ICEX who are registered with AMFI

as Mutual Fund Distributor and also registered with BSE &/or NSE &/or

ICEX as Participants ("AMFI registered stock exchange brokers") will

be eligible to offer this facility to investors and shall be treated as

official point of acceptance.


through clearing members of the registered Stock Exchanges.

Clearing members and Depository participants will be considered as

Official Points of Acceptance (OPA) of Axis Mutual Fund and

conditions stipulated in SEBI circular no. SEBI /IMD / CIR





5. The units of the Scheme are not listed on BSE, NSE & ICEX and the

same cannot be traded on the Stock Exchange. The window for

purchase/redemption of units on MFSS / BSE StAR MF / ICEXMF

Platform will be available between 9 a.m. and 3 p.m. or such other

timings as may be decided.

6. Transactions only in demat mode will be currently permitted through

MFSS / BSE StAR MF / ICEXMF Platform.

7. Investors will be able to purchase/redeem units in the scheme in the

following manner:

(i) Investors shall receive redemption amount (if units are redeemed)

and units (if units are purchased) through broker/ clearing

member's pool account. Axis Asset Management Company Ltd.

(the "AMC")/Axis Mutual Fund (the "Mutual Fund") shall pay

proceeds to the broker/clearing member (in case of redemption)

and broker/clearing member in turn to the respective investor

and similarly units shall be credited by the AMC/ Mutual Fund into

broker/clearing member's pool account (in case of purchase)

and broker/clearing member in turn shall credit the units to the

respective investor's demat account.

(ii) Payment of redemption proceeds to the broker/clearing

members by AMC/Mutual Fund shall discharge AMC/Mutual

Fund of its obligation of payment to individual investor. Similarly, in

case of purchase of units, crediting units into broker/clearing

member pool account shall discharge AMC/Mutual Fund of its

obligation to allot units to individual investor.

8. Applications for purchase/redemption of units which are incomplete

/invalid are liable to be rejected.

9. For all the transactions done through these platforms, separate Folio.

No. shall be allotted to the existing and the new investors. The bank

a/c number, address, nomination details etc. shall be the same as

70 Axis Liquid Fund

per the Demat account of the investor. In case of non-financial

requests/applications such as change of address, change of bank

details, etc. investors should approach the respective Depository

Participant(s).

10. Investors will have to comply with Know Your Customer (KYC)

norms as prescribed by BSE/NSE/CDSL/ NSDL/ICEX and Axis Mutual

Fund to participate in this facility.

11. Investors should get in touch with Investor Service Centres (ISCs)

of Axis Mutual Fund for further details.

Further, in addition to above, the AMC will offer historic NAV facility

for the units subscribed through NSE as and when NSE chooses to

offer the facility.

BSE has introduced facility of Historic Day NAV (i.e. T-1 day NAV).

Axis AMC shall allot the units at Historic NAV subject to:

1. Application is received before the applicable cut-off time.

2. Funds for the entire amount of subscription/purchase as per the

application are credited to the bank account of the scheme


3. The funds are available for utilization before the cut-off time

without availing any credit facility whether intra-day or

otherwise, by the scheme.

1. Transaction through Stock Exchange infrastructure using services of

Distributor/ SEBI Registered Investment Advisor


circular no. CIR/MRD/DSA/33/2014 dated December 9, 2014, has

permitted Mutual Fund Distributors (“MF Distributors”) and SEBI circular

no. SEBI/HO/MRD/DSA/CIR/P/2016/113 dated October 19, 2016

permitted SEBI Registered Investment Advisors (“RIAs”) to use

recognized Stock Exchange infrastructure to purchase/redeem units

directly from Mutual Fund/AMC on behalf of their clients.


platform of NSE (in addition to other intermediaries) and / or of BSE StAR

MF platform of BSE and/ or ICEXMF platform of ICEX to purchase and

redeem units of schemes of the Fund.

In addition to the guidelines specified for transacting through MFSS/BSE

StAR MF / ICEXMF Platform above, following guidelines shall be


NMF-II / BSE StAR MF / ICEXMF Platform:

1. MF distributors/RIAs shall not handle pay out/pay in of funds as well

as units on behalf of investor. Pay in will be directly received by

recognized clearing corporation and payout will be directly made

to investor account. In the same manner, units shall be credited and

debited directly from the demat account of investors.


permitted through NMF-II / BSE StAR MF / ICEXMF Platform.

2. The facility of transacting in mutual fund schemes through stock




3.

Systematic Transfer Plan (STP)

This facility will be available to the investors only during the Ongoing

Offer period.

71 Axis Liquid Fund

Investors can opt for the Systematic Transfer Plan by investing a

lumpsum amount in one scheme of the fund and providing a standing

instruction to transfer sums at following intervals into any other scheme

(as may be permitted by the Scheme Information Document of the


STP


Minimum

Amount* (in Rs.)

Minimum

Installment

Daily Monday To Friday 1,000/- 6

Weekly Monday To Friday 1,000/- 6

Fortnightly Alternate Wednesday 1,000/- 6

Monthly 1st, 7th, 10th, 15th or 25th 1,000/- 6

Quarterly 1st, 7th, 10th, 15th or 25th 3,000/- 2

In case Day of Transfer has not been indicated under Weekly

frequency, Wednesday shall be treated as Default day. Further, in case

of Monthly and Quarterly Frequency, if the STP date and Frequency has

not been indicated, Monthly frequency shall be treated as Default

frequency and 10th shall be treated as Default Date.


frequency shall be treated as Default frequency and 10th shall be


Investors could also opt for STP from an existing account by quoting

their account / folio number.

A minimum period of 7 days shall be required for registration under STP.

Units will be allotted/redeemed at the applicable NAV of the respective

dates of the Scheme in which such investments/withdrawals are sought

from the Scheme.



automatically if all Units are liquidated or withdrawn from the account

or upon the Funds’ receipt of notification of death or incapacity of the

Unit holder.

The AMC reserves the right to introduce STPs at any other frequencies or

on any other dates as the AMC may feel appropriate from time to time.

In the event that such a day is a Holiday, the transfer would be affected

on the next Business Day.

Further, in case where the balance amount in a folio is less than the STP

amount, the entire amount will be transferred to the transferee scheme

Capital Appreciation Systematic Transfer Plan (CapSTP)

Under this facility, the investors can opt for the Systematic Transfer Plan

by investing a lump sum amount in one scheme of the fund and

providing a standing instruction to transfer capital appreciation at

regular intervals - Weekly, Monthly and Quarterly into any other scheme

(as maybe permitted by the Scheme Information Document of the



date of the CapSTP under the folio, till the first transfer date. Subsequent

capital appreciation, if any, will be the capital appreciation between

the previous CapSTP date (where CapSTP has been processed and

paid) and the next CapSTP date

72 Axis Liquid Fund

There are three options available under CapSTP viz. Weekly, Monthly

and Quarterly option, the details of which are given below:

CapSTP


Minimum

Amount* (Rs.)

Minimum

Installment


Monthly 1st, 7th, 10th, 15th or

25th

500/- 6

Quarterly 1st, 7th, 10th, 15th or

25th

1,000/- 2


Scheme Information Document of the respective designated Transferor

Schemes and ‘Minimum Application Amount’ specified in the Scheme

Information Document of the respective designated Transferee

Schemes will not be applicable for CapSTP.

Unit holders are required to fill in either the number of installments or the

enrolment period in the enrolment Form, failing which the Form is liable

to be rejected.


and/or Frequency (Monthly/ Quarterly) has not been indicated,

Monthly frequency shall be treated as Default frequency and 10th shall

be treated as Default Date. In case of weekly frequency, Wednesday

shall be treated as Default day.

In case none of the frequency is selected then Monthly frequency shall

be treated as Default frequency and 10th shall be treated as Default

Date.

The application for CapSTP enrolment - Monthly & Quarterly frequency

should be submitted at least 7 working days and not more than 90 days

before the desired commencement date.




under CapSTP. Units will be allotted/redeemed at the applicable NAV

(of the respective date(s)) of the Scheme from/to which such




from time to time. In the event that such a day is a Holiday, the transfer

would be affected on the next Business Day.




withdrawn from the account or upon the Funds’ receipt of notification

of death or incapacity of the Unit holder. Further, in case where the



Systematic Withdrawal Plan (SWP)


pre-specified dates. SWP allows the Unitholder to withdraw a specified

sum of money each month/ quarter from his investments in the Scheme.

73 Axis Liquid Fund

The amount thus withdrawn by redemption will be converted into Units

at Applicable NAV based prices and the number of Units so arrived at

will be subtracted from the Units balance to the credit of that

Unitholder.

Unitholders may start the facility/ change the amount of withdrawals or

the period of withdrawals by giving a 15 days written intimation/notice.

The SWP may be terminated by a Unitholder by giving 15 days written

intimation/ notice and it will terminate automatically if all the Units are

liquidated or withdrawn from the account or the holdings fall below the

SWP installment amount.

There are four options available under SWP viz. Monthly option,

quarterly option, Half Yearly and Yearly option. The details of which are

given below:

Monthly

Option

Quarterl

y Option

Half Yearly

Option

Yearly

Option

Minimum value of

SWP

Rs. 1,000/-

Additional amount in

multiples of

Re.1

Dates of SWP

Installment

1/5/10/15/25*

Minimum No of SWP Six Four Four Two

* In the event that such a day is a non-business day, the withdrawals

would be affected on the next business day.

Exit Load, if any, is applicable to SWP.


amounts, dates and frequencies.


completed Systematic Withdrawal enrolment Form at any of the

Investor Service Centres (ISCs)/Official Points of Acceptance (OPAs).

Switching Options



their Unit holdings in the Scheme to any other Scheme offered by the








Scheme at Applicable NAV, subject to Exit Load, if any and

reinvestment of the Redemption proceeds into another Scheme offered

by the Mutual Fund at Applicable NAV and accordingly the Switch

must comply with the Redemption rules of the Switch out Scheme and

the Subscription rules of the Switch in Scheme.

(b) Intra -Scheme Switching plan/option

Unit holders under the Scheme have the option to Switch their Unit

holding from one plan/option to another plan/option (i.e. Axis Liquid

Fund – Regular Plan to Axis Liquid Fund – Direct Plan, Growth to

Dividend and vice-a-versa). The Switches would be done at the

74 Axis Liquid Fund

Applicable NAV based prices and the difference between the NAVs of

the two plans/options will be reflected in the number of Units allotted.

Switching shall be subject to the applicable “Cut off time and

Applicable NAV” stated elsewhere in the Scheme Information

Document. In case of “Switch” transactions from one scheme to

another, the allocation shall be in line with Redemption payouts.

Transaction on Fax.

In order to facilitate quick processing of transaction and / or instruction

of investment of investor the AMC/ Trustee/ Mutual Fund may (at its sole

discretion and without being obliged in any manner to do so and

without being responsible and/ or liable in any manner whatsoever)

accept and process any application, supporting documents and / or

instructions submitted by an investor / Unit holder by facsimile (Fax

Submission) and the investor / Unit holder voluntarily and with full

knowledge takes and assumes any and all risk associated therewith. The

AMC / Trustee/ Mutual Fund shall have no obligation to check or verify

the authenticity or accuracy of Fax Submission purporting to have been

sent by the investor and may act thereon as if same has been duly

given by the investor. In all cases the investor will have to immediately

submit the original documents/ instruction to AMC/ Mutual Fund.

Online Transactions

Axis Mutual Fund will allow Transactions including by way of

Redemption / Switch out of Units by electronic mode through the AMC

website/Mobile applications / Whatsapp. The Redemption proceeds,

(subject to deduction of tax at source, if any) through this mode, are

directly credited to the bank account of the Investors who have an

account at the designated banks with whom the AMC has made

arrangements from time to time or through NEFT/RTGS or through

cheque/Payorder/Demand draft issuance. The AMC will have right to

modify the procedure of transaction processing without any prior

intimation to the Investor.

For details of the facility, investors are requested to refer to the website

of the AMC.

TRANSACTION FACILITY ON ELECTRONIC PLATFORMS/ WHATSAPP

Investors will be allowed to transact in the Schemes using WhatsApp

Facility. The facility will be available to existing Resident Individual

investors.

To avail this facility, investor will have to initiate message / request

through WhatsApp to “+91-7506771113” through their registered mobile

number. The investor transaction / service requests will be enabled after

appropriate verification of the investor.

The transactions / services through this facility shall be subject to such

limits, operating guidelines and terms & conditions as may be

prescribed by Axis MF from time to time.

Online modes (including WhatsApp Facility) and other various digital

platforms offered by Axis Mutual Fund shall be treated as Official Point

of Acceptance. The uniform cut - off timing as prescribed by SEBI from

time to time and mentioned in the SID and KIM of the Scheme shall be

applicable for transactions received through these platforms.

Transactions through electronic platform(s) of KFin Technologies Pvt. Ltd.

Investors will be allowed to transact through

75 Axis Liquid Fund

https://mfs.kfintech.com/mfs/, an electronic platform provided by M/s.

KFin Technologies Pvt. Ltd., Registrar & Transfer Agent, in Schemes of

Axis Mutual Fund (‘Fund’) (except Axis Gold ETF and Axis Nifty ETF). The

facility will also be available through mobile application of KFin

Technologies Pvt. Ltd.


Regulations, 1996 and as mentioned in SID and KIM of the Scheme will

be applicable for transactions received through the above electronic

platform and the time of receipt of transaction recorded on the

server(s) of KFin Technologies Pvt. Ltd. will be reckoned as the time for

the purpose of determining applicability of NAV, subject to credit of

funds to bank account of scheme, wherever applicable.


may be prescribed by KFin Technologies Pvt. Ltd. or as may be

specified by Axis Asset Management Company Ltd. from time to time.

For operating guidelines and terms and conditions , investors are

requested to visit https://mfs.kfintech.com/mfs/.

Time of receipt of transaction recorded on the server(s) of KFin

Technologies Pvt. Ltd. will continue to be reckoned for electronic

transactions received through AMC website/ Distributor website/

applications etc subject to credit of funds to bank account of scheme,

wherever applicable.

Online Schedule Transaction Facility (‘the OST facility’/ ‘the Facility’):







ETF), subject to completion of lock-in, if any. Further, subscription

transaction in Axis Liquid Fund, will not be allowed to be executed

using the Facility.

2. The Facility is available only to Individual (including sole proprietor)

Unitholders for units held in / subscription in physical mode.


unitholders after completion of OTM Mandate / Easycall mandate/

equivalent mandate registration process and as per limits specified

therein.

4. Under the Facility the transaction can be scheduled to be executed

on a specified date which shall be within 30 calendar days from the

date of the instruction. Such specified date shall be a business day.

In case the scheduled transaction date falls on a non-business day,

the transaction will be executed on the immediately following

business day.


website of Axis AMC i.e. www.axismf.com. Axis AMC may extend

the Facility to other transaction platforms from time to time, at its

discretion.



transaction date.

7. The triggered transaction on the scheduled date shall be

considered as time stamped and will be executed on the specified

date at the applicable NAV of the relevant scheme. In case the

specified date happens to be a non-business day in debt schemes

but is a business day in equity schemes, switch-out from equity




76 Axis Liquid Fund

schemes will be processed on the specified date, while the switch-in

to debt/liquid schemes will be processed on the next business day.


minimum subscription/additional subscription application and other

terms and conditions of the relevant scheme as per SID applicable

on the specified date.

9. The scheduled transaction shall be liable to be rejected if sufficient

amount is not available for subscription or sufficient number of units

/ amount is not available for redemption.




11. Unitholders availing of this facility shall acquaint themselves with the

features of the Scheme, including any modification / amendments

carried out before the specified date.




conditions or to make operational rules for operation of the Facility from

time to time.

Insta Redemption Facility (‘the Facility’):

The features of the Facility pursuant to the provision of SEBI circular no.

SEBI/HO/IMD/DF2/CIR/P/2017/39 dated May 08, 2017 are as follows:

Features Provisions

Eligible

Investor &

Pre-

requisites

The Facility shall be available only to Unit holders

whose:

a) Status is Resident Indian Individual

b) Complete Core Banking System (CBS) account

number is registered in the folio along with IFSC

code.

c) Unitholders’ bank is immediate payment service

(IMPS) enabled.

Mode of

transaction

The Facility can be availed on Axis Mutual Fund

website i.e. www.axismf.com. AMC reserves the right

to extend the same to other online Platform(s).

Minimum

Redemptio

n Amount

Minimum redemption amount shall be Rs. 500/-.

Unitholders can submit redemption request only in

terms of amount.

Maximum

Redemptio

n Amount

Investor can submit insta redemption for a maximum

of rupees Fifty thousand only or the Redeemable

Balance, whichever is lower, subject to minimum

redemption amount for the Facility.

This limit shall be applicable per day, per investor.

Redeemabl

e Balance

90% of the Current Value of available Units

Current Value of available Units shall be value of

available units as per the latest declared NAV

(Number of available Units X Latest declared NAV),

(refer illustration below)

Available units are such units in the folio for which the

investor can place a redemption request at any

point of time after considering units which are un-

cleared for funds realization or reconciliation, or are

under lien, or are in dematerialized mode and after


77 Axis Liquid Fund

considering any transaction/s pending for unit

adjustments.

The decision of the AMC in determining the

Redeemable Balance shall be final.

The AMC reserves the right to modify the margin limit

stated above, at any time at its discretion without

giving any prior notice

Cut-off

timings and

Applicable

NAV

For application received up to 3.00 pm – the lower

of :

(i) NAV of previous calendar day and (ii) NAV of

calendar day on which application is received;

For application received after 3.00 pm – the lower

of: (i) NAV of calendar day on which such

application is received, and (ii) NAV of the next

calendar day.

Scenarios

under

which the

Facility may

be

suspended

The Facility may get impacted / suspended due to

unforeseen technical / Internet / network issues or

software / hardware challenges, force majeure

event, changes in prevailing laws / regulations or

other reason including those beyond the control of

the AMC.

In case the transaction is not completed due to any

reason, such transaction shall be processed as

ordinary redemption transaction at applicable NAV.

AMC reserves the right to reject any redemption / switch out /

systematic withdrawal or transfer request received through any other

mode on any business day, i.e. physical, electronic, etc. if an instant

redemption request has been received and such instant redemption is

pending to be processed.

Illustration:

Amount in Rs.

Particulars Scenario 1 Scenario 2

(A) Current Value of available Units

(Number of available Units X Latest

NAV Declared)

50,000 1,00,000

(B) Redeemable Balance (A X 90%) 45,000 90,000

Maximum Redemption Amount (per

day) (B or Rs.50,000/- (fifty thousand

rupees) whichever is lower)

45,000 50,000

The AMC reserves the right to change the terms and conditions of this

Facility/withdraw/suspend the Facility without any notice.

EASY CALL FACILITY


(Anyone or Survivor)” basis in their own capacity shall be eligible to avail

of Easy Call facilities for permitted transactions inter alia on the following

terms and conditions (“Terms and Conditions” mean the terms and

conditions set out below by which the Facility shall be used/availed by

the Investor/s and shall include all modifications and supplements

made by AMC thereto from time to time).


Purchase/ Redemption / Switch of Units over phone. Initial Investment

has to be through physical mode wherein he has to sign a one time

debit mandate for bank accounts pertaining to designated banks with

78 Axis Liquid Fund

which the AMC may have an arrangement. This facility is extended to

the bank with which the Fund would have an arrangement from time to

time. Investment amount may be restricted by the AMC from time to

time in line with prudent risk management requirements and to protect

the overall interest of the Investors.

Investor will be allowed transactions over phone after 30 days from the

date of submission of one time mandate. Investor will not be permitted

to avail the Easy call facility for Redemptions/Switch transactions if bank

mandate is changed with in last 15 days. AMC will have right to modify

the procedure of transaction processing without any prior intimation to

the Investor. AMC retains the right to maintain call records of the

communication with investors, for lawful purposes.

The AMC has a right to ask such information (Key Information) from the

available data of the Investor/s before allowing him access to avail the

Facility. If for any reason, the AMC is not satisfied with the replies of the

Investor/s, the AMC has at its sole discretion the right of refusing access

without assigning any reasons to the Investor/s.

It is clarified that the Facility is a service provided to the Investor/s and is

offered at the sole discretion of the AMC. The AMC is not bound and/or

obliged in any way to offer this Facility to Investor/s.


promptly. If the Investor/s believes that there has been a mistake in any

transaction using the Facility, or that unauthorized transaction has been

effected, the Investor/s shall notify the AMC immediately. If the

Investor/s defaults in intimating the discrepancies in the statement

within a period of fifteen days of receipt of the statements, he waives all

his rights to raise the same. By opting for the facility the Investor/s hereby

irrevocably authorizes and instructs the AMC to act on his /her behalf

and to do all such acts as AMC may find necessary to provide the

Facility.


variations made to these Terms and Conditions by the AMC at their sole

discretion and without notice to them.

The Investor/s agrees and confirms that the AMC has the right to ask the

Investor/s for an oral or written confirmation of any transaction request


Account of the Investor/s.


discretion suspend the Facility in whole or in part at any time without

prior notice.



The Investor/s shall take responsibility for all the transactions conducted

by using the Facility and will abide by the record of transactions

generated by the AMC. Further, the Investor/s confirms that such

records generated by the AMC shall be conclusive proof and shall be

binding for all purposes and may be used as evidence in any

proceedings and that the investor(s) unconditionally waives all

objections in this behalf.



79 Axis Liquid Fund


agrees that all calls received shall be eligible for applicable NAV

subject to necessary formalities to be complied by the AMC in case of


time.

Requests like change in bank mandate, change of nomination, change

in mode of holding, change of address or such other requests as the

AMC may decide from time to time will not be permitted using the Easy

Call facility.


Directors, employees, representatives and service providers of the AMC,

Axis Mutual Fund and Trustees (indemnified parties) from and against all

actions, claims, demands, liabilities, obligations, losses, damages, costs

and expenses of whatever nature (whether actual or contingent)

directly or indirectly suffered or incurred, by the indemnified parties

whatsoever arising from or in connection with the Facility. The Investor/s

shall not hold the AMC liable and shall keep it indemnified for the

following:

1. For any transaction using the Facilities carried out in good faith by


2. For any loss or damage incurred or suffered by the Investor/s due to

any error, defect, failure or interruption in the provision of the Facility.

3. For any negligence / mistake or misconduct by the Investor/s.

4. For any breach or non-compliance by the Investor/s of the


5. For accepting instructions given by any one of the Investor/s in case

of joint account/s having mode of operations as ““Anyone or

survivor”.

6. For not carrying out any such instructions where the AMC has reason

to believe (which decision of the AMC the Investor/s shall not

question or dispute) that the instructions given are not genuine or

are otherwise improper, unclear, vague or raise a doubt.

7. For carrying out a transaction after such reasonable verification as


MISCELLANEOUS:

1) The Investor/s agrees and understands that while this Facility is being

introduced without any charges being levied; in case charges are

to be levied on a future date he agrees to pay such charges and

nonpayment in such an event can lead to termination of these

services.








be issued.

EASY SMS FACILITY

This facility is available for individual investors (registration process to be

completed by the investor to avail this facility). For details of the

registration process, please contact our Investor Service

Centres/website of the AMC.

All individual investors applying on “Sole” or “Joint (Anyone or Survivor)”

basis in their own capacity shall be eligible to avail the facility for

permitted transactions i.e. for lump sum purchase, redemption and

80 Axis Liquid Fund

switch transactions on the below mentioned terms and conditions:

“Terms and Conditions” mean the terms and conditions set out below

by which the Facility shall be used/availed by the Investors and shall

include all modifications and supplements made by AMC thereto from

time to time.





would have an arrangement from time to time. Transaction amount

may be restricted by the AMC from time to time in line with prudent risk

management requirements and to protect the overall interest of the

Investors. Investor will be allowed transactions over SMS after 30 days

from the date of submission of one time mandate. Investor will not be

permitted to avail the facility for Redemptions/Switch transactions if

bank mandate is changed within last 15 days. AMC will have right to




available data of the Investors before allowing him access to avail the


Investors, the AMC has at its sole discretion the right of refusing access

without assigning any reasons to the Investors.

This facility can be availed only through the registered mobile number

of the Investor.


/facilitate the Investors and offered at the sole discretion of the AMC.

The AMC is not bound and/or obliged in any way to give access to

Facility to Investors. The Investors shall check his/her account records

carefully and promptly. If the Investors believe that there has been a

mistake in any transaction using the Facility, or that unauthorized

transaction has been effected, the Investors shall notify the AMC

immediately. If the Investors defaults in intimating the discrepancies in

the statement within a period of fifteen days of receipt of the

statements, he waives all his rights to raise the same in favour of the

AMC, unless the discrepancy /error is apparent on the face of it. By

opting for the facility the Investors hereby irrevocably authorizes and

instructs the AMC to act as his /her agent and to do all such acts as

AMC may find necessary to provide the Facility.







Account of the Investor. The Investor agrees and confirms that the AMC

may at its sole discretion suspend the Facility in whole or in part at any

time without prior notice. The Investor shall not assign any right or

interest or delegate any obligation arising herein. The Investor shall take

responsibility for all the transactions conducted by using the Facility and

will abide by the record of transactions generated by the AMC. Further,

the Investor confirms that such records generated by the AMC shall be

conclusive proof and binding for all purposes and may be used as

evidence in any proceedings and unconditionally waives all objections

in this behalf.

81 Axis Liquid Fund

The Investor agrees that use of the Facility will be deemed acceptance

of the Terms and Conditions and the Investor will unequivocally be

bound by these Terms and Conditions. The Investor agrees that all

transactions received shall be eligible for applicable NAV subject to

necessary formalities to be complied by the AMC in case of transaction

through the facility on or before the uniform cut off time.



AMC may decide from time to time will not be permitted using the

facility.

Investors should SMS HELP PURCHASE/REDEMPTION/SWITCH to

9212010033 in order to avail the facility post registration. The procedure

for availing the facility will be communicated to the investor.

Alternatively, the investor can also get in touch with the Investor Service

Centres of the AMC.

KFin Technologies Pvt. Ltd., Registrar & Transfer Agents to Axis Mutual

Fund having its office at Unit: Axis Mutual FundSelenium, Tower B, Plot

number 31 & 32, Financial District, Gachibowli, Nanakramguda,

Serilingampally Mandal, Hyderabad - 500032 will be the official point of

acceptance for such transactions received for Axis Mutual Fund

schemes.


Directors, employees, representatives of the AMC, Axis Mutual Fund and

Trustees (indemnified parties) from and against all actions, claims,

demands, liabilities, obligations, losses, damages, costs and expenses of


suffered or incurred, against the indemnified parties whatsoever arising

from or in connection with the Easy Call Facility. The Investor/s shall not

hold the AMC liable and shall keep it indemnified for the following:



2) For any loss or damage incurred or suffered by the Investor/s due to





5) For accepting instructions given by any one of the Investor/s in case

of joint account/s having mode of operations as “anyone or

survivor”.

6) For not carrying out any such instructions where the AMC has reason


question or dispute) that the instructions given are not genuine or

are otherwise improper, unclear, vague or raise a doubt.



MISCELLANEOUS:


introduced without any charges being levied; in case charges are

to be levied on a future date he agrees to pay such charges and


services.





82 Axis Liquid Fund




be issued.

Dividend Sweep Option (DSO)

The terms and conditions of Dividend Sweep Option (DSO) are as

follows:

1) Dividend Sweep Option (DSO) is a facility wherein unit holder(s) of

eligible scheme(s) [hereinafter referred to as "Source Scheme(s)"] of

Axis Mutual Fund can opt to automatically invest the dividend (as

reduced by the amount of applicable statutory levy) declared by the

eligible Source Scheme(s) into other eligible Scheme(s) [hereinafter

referred to as "Target Scheme(s)"] of Axis Mutual Fund.


Mutual Fund except Exchange Traded Funds (ETFs)

3) DSO facility is available to unit holder(s) only under the Dividend Plan

/ Option of the Source Scheme(s). However, the DSO facility will not be

available to unit holder(s) under the Daily Dividend Option in the Source

Scheme(s). Unit holder’s enrolment under the DSO facility will

automatically override any previous instructions for 'Dividend Payout' or

'Dividend Reinvestment' facility in the Source Scheme.


respective Dividend Plan / Option of the Source Scheme. Instructions for

part Dividend Transfer and part Dividend Payout / Reinvestment will not

be accepted. The dividend amount will be invested in the Target

Scheme under the same folio. Accordingly, the unit holder(s) details

and mode of holding in the Target Scheme will be same as in the

Source Scheme.





(subject to minimum of Rs. 1,000/-) will be automatically invested into

the Target Scheme, as opted by the unit holder, on the immediate next

Business Day after the Record Date at the applicable NAV of the Target

Scheme, subject to applicable load as specified under paragraph 9

below and accordingly equivalent units will be allotted in the Target

Scheme, subject to the terms and conditions of the respective Target

Scheme.


respective Target Scheme's Scheme Information Document (SID) will not

be applicable under DSO. E.g. the minimum application amount for

new investors in Axis Bluechip Fund - Growth Plan is 5,000/-. However in

case of DSO, a Unit Holder can avail of the facility irrespective of the

amount of dividend (subject to a minimum of 1,000/-).

8) The Minimum amount of dividend eligible for transfer under Dividend

Sweep Option is 1,000/- (Rupees One Thousand Only). In case the

dividend sweep is being less than eligible amount, then the dividend will

be re-invested in source scheme/ payout as per the existing option.

9) Load Structure:

The dividend amount to be invested under the DSO from the Source

Scheme to the Target Scheme shall be invested by subscribing to the

units of the Target Scheme at applicable NAV, subject to payment of

Entry/Exit Load as under:


83 Axis Liquid Fund



Exit Load (Source Scheme): As applicable as per the relevant SID


The Trustee/AMC reserves the right to change the load structure under

the DSO Facility at any time in future on a prospective basis.

10) The Account Statement will be issued by mail or by email (if opted

by the unit holder) to the unit holder as per regulations. In case of


endeavour to provide the account statement to the unitholders after

every transaction of Dividend Transfer.

11) Unitholders who wish to enroll for DSO facility are required to fill DSO

Enrolment Form available with the ISCs, distributors/agents and also

displayed on the website www.axismf.com. The DSO Enrolment Form

should be completed in English in Block Letters only. The DSO Enrolment

Form complete in all aspects should be submitted at any of the Investor

Services centre (ISCs) of Axis Mutual Fund.

12) The request for enrolment for DSO must be submitted at least 10

days prior to the Record Date for the dividend. In case of the condition

not being met, the enrolment would be considered valid from the

immediately succeeding Record Date of the dividend, provided the

difference between the date of receipt of a valid application for

enrolment under DSO and the next Record Date for dividend is not less

than 10 days.

13) Unitholder(s) are advised to read the SID(s) of Target Scheme(s)

carefully before investing. The SID(s) / Key Information Memorandum(s)

of the respective Scheme(s) are available with the ISCs of Axis Mutual

Fund, brokers / distributors and also displayed on the Axis Mutual Fund

website i.e. – www.axismf.com

14) Unit holders will have the right to discontinue the DSO facility at any

time by sending a written request to the ISC. Notice of such


Dividend Record Date. On receipt of such request, the DSO facility will

be terminated. At the time of discontinuation of DSO facility, the Unit

holders should indicate their choice of option i.e. dividend reinvestment

or dividend payout. In the event the Unitholder does not indicate his

choice of dividend option, the dividend, if any, will be reinvested

(compulsory payout if dividend reinvestment option is not available) in

the Source Scheme. Once the request for DSO is registered, then it shall

remain in force unless it is terminated as aforesaid.

15) The Trustee/AMC reserves the right to change/modify the terms and

conditions of the DSO.

The Trustee reserves the right to change/ modify the terms and

conditions of the DSO at a later date on a prospective basis.

Trigger facility:


automatically redeem / switch the units, as the case may be, on behalf

of the investor, on the date of happening of the event. Accordingly, a

trigger will activate a transaction when the event selected for has

reached the trigger point. All redemptions/ switches etc. linked to

triggers will always be at the applicable NAV based prices of the day

on which the event occurs. The investors opting for the Trigger facility

will also have right to redeem/ switch their holdings before happening

84 Axis Liquid Fund

of the trigger event. Please note that the trigger is an additional facility

provided to the unit holders to save time on completing the

redemption/ switch formalities on happening of a particular

predetermined event. Trigger is not an assurance on part of AMC /

Fund to the investor that he / she will receive a particular amount of

money / appreciation and / or a percentage on redemption or will get

a particular amount of capital appreciation or will minimise the loss to

investor to a particular amount or percentage.





Fund


Fund



Fund


Fund














Axis Gilt Fund




Fund


Fund











The trigger facility is available only for the options specified above and

is not available for any adhoc amount that the investor may specify.


under various plans / options of the scheme(s):







85 Axis Liquid Fund




reaches a particular level or goes below that at the close of any

business day, then the amount specified shall either be redeemed /


iii. Option to redeem / switch out in the event NAV reaches or exceeds

a specified level.

Under this facility, the investor can specify the Net Asset Value (NAV) on

reaching / exceeding which the amount specified will be redeemed /





which, if the scheme(s)NAV appreciates, then the amount specified will





which, if the scheme(s) NAV appreciates or depreciates, then the

amount specified will be redeemed / switched to the selected

transferee scheme.




which, if the scheme(s) NAV depreciates, then the amount specified will


Notes:-



INR.10.60 etc.



Terms & Conditions :





Scheme Information Document of the Transferor/ Transferee

schemes.

3. Once a trigger is activated and a transaction is processed, the

same will not be reversed and it will be final and binding upon the

Unit holder.


again.






7. Trigger will not get executed in case units are pledged or where lien

is marked on units, at the time of receipt of request for trigger.


linked to Nifty.

86 Axis Liquid Fund



10. "Minimum Application Amount/ Minimum Additional Investment




11. NAV for switch /redemption: NAV of the trigger day will be






12. In case, if no plan / option is specified for switch transaction under

trigger option, default plan /option, as specified in respective


13. In case of any ambiguity or where the investor fails to specify

whether the redemption / switch to be made is full or to the extent

of capital appreciation or to the extent of Principal amount only,

the transaction will not be processed.

14. All requests for registering or deactivating the trigger facility shall be

subject to an advance notice of 10 (Ten) working days. Investors

can deactivate the trigger facility by sending a written request to

the Investor Service Centers.

Application via electronic mode:

Subject to the Investor fulfilling certain terms and conditions stipulated

by the AMC as under, Axis Asset Management Company Ltd., Axis

Mutual Fund or any other agent or representative of the AMC, Mutual

Fund, the Registrar & Transfer Agents may accept transactions through

any electronic mode including fax/web transactions as permitted by

SEBI or other regulatory authorities:

a) The acceptance of the fax/web/electronic transactions will be

solely at the risk of the transmitter of the fax/web/ electronic

transactions and the Recipient shall not in any way be liable or

responsible for any loss, damage caused to the transmitter directly

or indirectly, as a result of the transmitter sending or purporting to

send such transactions.

b) The recipient will also not be liable in the case where the transaction

sent or purported to be sent is not processed on account of the fact

that it was not received by the Recipient.

c) The transmitter’s request to the Recipient to act on any

fax/web/electronic transmission is for the transmitter’s convenience

and the Recipient is not obliged or bound to act on the same.

d) The transmitter acknowledges that fax/web/electronic transactions

is not a secure means of giving instructions/ transactions requests

and that the transmitter is aware of the risks involved including those

arising out of such transmission.

e) The transmitter authorizes the recipient to accept and act on any

fax/web/ electronic transmission which the recipient believes in

good faith to be given by the transmitter and the recipient shall be

entitled to treat any such fax/web/ electronic transaction as if the

same was given to the recipient under the transmitter’s original

signature.

f) The transmitter agrees that security procedures adopted by the

recipient may include signature verification, telephone call backs

which may be recorded by tape recording device and the

transmitter consents to such recording and agrees to cooperate

with the recipient to enable confirmation of such fax/web/

electronic transaction requests.

g) The transmitter accepts that the fax/web/ electronic transactions,

where applicable shall not be considered until time stamped as a

87 Axis Liquid Fund

valid transaction request in the Scheme in line with the Regulations.

In consideration of the recipient from time to time accepting and at its

sole discretion acting on any fax/ web/electronic transaction request

received / purporting to be received from the transmitter, the

transmitter agrees to indemnify and keep indemnified the AMC,

Directors, employees, agents, representatives of the AMC, Axis Mutual

Fund and Trustee from and against all actions, claims, demands,

liabilities, obligations, losses, damages, costs and expenses of whatever

nature (whether actual or contingent) directly or indirectly suffered or

incurred, sustained by or threatened against the indemnified parties

whatsoever arising from or in connection with or any way relating to the

indemnified parties in good faith accepting and acting on fax/web/

electronic transaction requests including relying upon such fax/

electronic transaction requests purporting to come from the Transmitter

even though it may not come from the Transmitter.

The AMC reserves the right to discontinue the facility (ies) at any point

of time.

Distributors offer goal based financial planning (facility) to their clients.

In order to encourage Investors to plan for their investments based on

life goals (e.g. child’s education, retirement, wealth creation, etc), the

Asset Management Company would assist in providing such facilities.


financial goals, certain features offered by Axis Mutual Fund may not be

offered/available under such goal based investment folios. Under a

folio, no additional purchase, switch and part redemption would be

allowed. Requests for changes in goals/goal details will not be

accepted. Under normal circumstances, there is no restriction on the

right of the investor to transact directly with the mutual fund.


application form and a single cheque in the name of ‘Axis Mutual Fund

First Investor name’ or ‘Axis Mutual Fund Permanent Account Number’

would have to be provided by the Investor. Transaction charge would

be charged at application form level.

In case there is a broker code change/the investor is desirous of being a

direct investor with the mutual fund, the investment will cease to be a

part of the facility. Investors may note that investments under such

facilities would be based on advice from the distributor /Financial

advisor and the Asset Management Company acts purely in capacity

as a facilitator for such transactions. The distributor(s) may choose to

modify/change or discontinue the above stated facility. In such a case

the investors may continue their investment with the AMC/any other

distributor.

For further details/clarifications investors may contact the distributor(s)


Accounts Statements


confirmation specifying the number of units allotted by way of e-

mail and/or SMS within 5 business days from the date of receipt of

transaction request will be sent to the Unit Holders registered e-mail

address and/or mobile number.





For those Unit holders who have provided an e-mail address, the


88 Axis Liquid Fund

Unit holder will be required to download and print the documents



documents, the Unit holder shall promptly advise the Mutual Fund to

enable the Mutual Fund to make the delivery through alternate





writing/calling the AMC/ISC/Registrar &Transfer Agent. In case of

specific request received from the Unit Holders, the AMC/Fund will

provide the Account Statement to the Investors within 5 business

days from the receipt of such request.




CAS is an account statement detailing all the transactions and holding

at the end of the month including transaction charges paid to the

distributor, across all schemes of all mutual funds. CAS issued to investors

shall also provide the total purchase value/cost of investment in each

scheme.


provide


distributors (in absolute terms) during the half-year period against

the concerned investor’s total investments in each scheme.



Commission paid to the distributor and Other expenses for the

period for each scheme’s applicable plan (regular or direct or both)

where the concerned investor has actually invested in.

The word transaction will include purchase, redemption, switch,

dividend payout, dividend reinvestment, systematic investment plan,

systematic withdrawal plan and systematic transfer plan.


CAS for each calendar month shall be issued, on or before tenth day of

succeeding month by the AMC.


March) is issued, on or before tenth day of succeeding month, detailing

holding at the end of the six month, across all schemes of all mutual

funds, to all such investors in whose folios no transaction has taken

place during that period.


Permanent Account Number (PAN) for the purposes of sending CAS. In

the event the account has more than one registered holder, the first

named Unit Holder shall receive the Account Statement.

The AMC will send statement of accounts by e-mail where the Investor

has provided the e-mail id. Additionally, the AMC may at its discretion

send Account Statements individually to the investors.


SEBI vide its circular no. CIR/MRD/DP/31/2014 dated November 12, 2014,

in order to enable a single consolidated view of all the investments of

89 Axis Liquid Fund

an investor in Mutual Fund and securities held in demat form with

Depositories, has required Depositories to generate and dispatch a

single CAS for investors having mutual fund investments and holding

demat accounts.


account, for transactions in the schemes of Axis Mutual Fund on or after

February 1, 2015, a CAS, based on PAN of the holders, will be sent by

Depositories to investors holding demat account, for each calendar

month within 10th day of the succeeding month to the investors in

whose folios transactions have taken place during that month.

CAS will be sent by Depositories every half yearly (September/March),

on or before 10th day of succeeding month, detailing holding at the

end of the six month, to all such investors in whose folios and demat

accounts there have been no transactions during that period.

CAS sent by Depositories is a statement containing details relating to all

financial transactions made by an investor across all mutual funds viz.

purchase, redemption, switch, dividend payout, dividend reinvestment,

systematic investment plan, systematic withdrawal plan, systematic

transfer plan (including transaction charges paid to the distributor) and

transaction in dematerialized securities across demat accounts of the

investors and holding at the end of the month.



statement in terms of regulations applicable to the depositories.

Investors whose folio(s)/ demat account(s) are not updated with PAN

shall not receive CAS.



account(s) are updated with PAN. In case of multiple holding, it shall be

PAN of the first holder and pattern of holding.




the investor to receive the CAS in physical form at the address

registered in the Depository system.




continue to receive CAS sent by RTA/AMC, based on the PAN, covering

transactions across all mutual funds as per the current practice.


depository with whom the account has been opened earlier will be the

default depository.

The dispatches of CAS by the depositories constitute compliance by the

AMC/ the Fund with the requirement under Regulation 36(4) of SEBI

(Mutual Funds) Regulations. However, the AMC reserves the right to

furnish the account statement in addition to the CAS, if deemed fit in

the interest of investor(s).




90 Axis Liquid Fund


AMC shall issue monthly account statement to such Unit holder(s), for

any financial transaction undertaken during the month on or before

10th of succeeding month by mail or email.

For folios not eligible to receive CAS (due to non-availability of PAN), the




folios no transaction has taken place during that period shall be sent by

mail/e-mail.

Option to hold units in dematerialised (demat) form

Investors shall have an option to receive allotment of Mutual Fund units

in their demat account while subscribing to the Scheme in terms of the

guidelines/ procedural requirements as laid by the Depositories









(represented by statement of account) into dematerialized form or vice

versa, the request for conversion of units held in physical form into

Demat (electronic) form or vice versa should be submitted alongwith a

Demat/Remat Request Form to their Depository Participants. In case the

units are desired to be held by investor in dematerialized form, the KYC

performed by Depository Participant shall be considered compliance of

the applicable SEBI norms.

The demat option is provided to all schemes and options of Axis Mutual

Fund except for all daily and weekly dividend options under all debt

and liquid schemes.

Units held in Demat form are freely transferable in accordance with the

provisions of SEBI (Depositories and Participants) Regulations, as may be

amended from time to time. Transfer can be made only in favour of

transferees who are capable of holding units and having a Demat

Account. The delivery instructions for transfer of units will have to be

lodged with the Depository Participant in requisite form as may be

required from time to time and transfer will be affected in accordance

with such rules / regulations as may be in force governing transfer of

securities in dematerialized mode.

The demat option is provided to all schemes and options of Axis Mutual

Fund except for all daily and weekly dividend options under all debt

and liquid schemes.

For details, Investors may contact any of the Investor Service Centres of

the AMC.

Dividend The Dividend warrants/cheque/demand draft shall be dispatched to

the Unit holders within 30 days of the date of declaration of the

Dividend.

The Dividend proceeds will be paid by way of EFT / NEFT / RTGS / Direct

91 Axis Liquid Fund

credits/ any other electronic manner if sufficient banking details are

available with the Mutual Fund for the investor.

In case of specific request for Dividend by warrants/cheques/demand

drafts or unavailability of sufficient details with the Mutual Fund, the

Dividend will be paid by warrant/cheques/demand drafts and

payments will be made in favour of the Unit holder (registered holder of

the Unit or, if there are more than one registered holder, only to the first

registered holder) with bank account number furnished to the Mutual

Fund (Please note that it is mandatory for the Unit holders to provide the

Bank account details as per the directives of SEBI).




Slip and submitted at an ISC/Official Point of Acceptance. Transaction

Slips can be obtained from any of the ISCs/Official Points of

Acceptance. Investor can also place redemption through Telephone

using Easy Call/ Easy SMS facility or may redeem Online through the

AMC’s website subject to the terms and conditions as may be

stipulated from time to time.




Gross Settlement (RTGS), NEFT, Direct Credit, Cheque or Demand Draft.

a) If investor had provided IFSC code in the application form, by

default redemption proceeds shall be to be credited to Investor’s

account through RTGS/NEFT.

b) If Investor has neither provided IFSC code nor the NEFT code but

have a bank account with Banks with whom the Fund would have

an arrangement for Direct Credit from time to time, the proceeds

will be paid through direct credit.


categories, redemption proceeds will be paid by cheques/demand

drafts, marked "Account Payee only" and drawn in the name of the

sole holder / first-named holder (as determined by the records of

the Registrar).


Registrar's records, will be mentioned in the cheque/demand draft.

The cheque will be payable at par at all bank branch or specific

cities. If the Unit Holder resides in any other city, he will be paid by a

demand draft payable at the city of his residence and the demand

draft charges shall be borne by the AMC (please refer SAI for

details).

The redemption proceeds will be sent by courier or (if the addressee

city is not serviced by the courier) by registered post/UCP. The

dispatch for the purpose of delivery through the courier / postal

department, as the case may be, shall be treated as delivery to the

investor. The AMC / Registrar are not responsible for any delayed

delivery or non-delivery or any consequences thereof, if the

dispatch has been made correctly as stated in this paragraph.




Draft Redemption proceeds will be paid by cheque/demand drafts

and payments will be made in favour of the Unit holder with bank

92 Axis Liquid Fund

account number furnished to the Mutual Fund. (Please note that it is

mandatory for the Unit holders to provide the Bank account details as

per the directives of SEBI). Redemption cheques will be sent to the Unit

holder’s address.

The Trustee, at its discretion at a later date, may choose to alter or add

other modes of payment.






exchange from abroad or by cheque / draft issued from proceeds of

the Unit Holder's FCNR deposit or from funds held in the Unit Holder's Non

Resident (External) account kept in India, the proceeds can also be

sent to his Indian address for crediting to his NRE / FCNR / non-resident

(Ordinary) account, if desired by the Unit Holder.





(Ordinary) account.

(iii) FPIs




Rupee account of the FPI maintained in accordance with the approval

granted to it by the RBI. The Fund will not be liable for any delays or for

any loss on account of any exchange fluctuations, while converting the

rupee amount in foreign exchange in the case of transactions with

NRIs/FPIs. The Fund may make other arrangements for effecting

payment of redemption proceeds in future.


The number of Units held by the Unit Holder in his / her / its folio will stand

reduced by the number of Units Redeemed. Units once redeemed will

be extinguished and will not be re-issued.


requisite details are not provided by investors/Unit holders. The AMC will




Scheme through an alternative mechanism including but not limited to

online transactions on the Internet, as may be decided by the AMC

from time to time. The alternative mechanism may also include

electronic means of communication such as redeeming Units online

through the AMC Website or any other website, etc. The alternative

mechanisms would be applicable to only those investors who opt for

the same in writing and/or subject to investor fulfilling such conditions as

AMC may specify from time to time.




93 Axis Liquid Fund



documents would be notified by AMC from time to time on its website.

Important Note: All applicants for Purchase of Units /Redemption of Units

must provide a bank name, bank account number, branch address,

and account type in the Application Form.


The unclaimed Redemption and dividend amounts shall be deployed

by the Fund in money market instruments and such other

instruments/securities as maybe permitted from time to time. The

investment management fee charged by the AMC for managing such

unclaimed amounts shall not exceed 50 basis points. The circular also

specifies that investors who claim these amounts during a period of

three years from the due date shall be paid at the prevailing NAV. Thus,

after a period of three years, this amount can be transferred to a pool

account and the investors can claim the said amounts at the NAV

prevailing at the end of the third year. In terms of the circular, the onus

is on the AMC to make a continuous effort to remind investors through

letters to take their unclaimed amounts. The details of such unclaimed

amounts shall be disclosed in the annual report sent to the Unit Holders.

Further, according to circular no. SEBI/HO/IMD/DF2/CIR/P/ 2016/37

dated February 25, 2016 the unclaimed Redemption and dividend

amounts may be deployed in separate plan of Liquid scheme/Money

market mutual fund scheme floated by Mutual Funds specifically for

deployment of the unclaimed Redemption and dividend amounts.

Delay in payment of

Redemption /

Repurchase proceeds

The AMC shall be liable to pay interest to the Unit holders at 15% or such

other rate as may be prescribed by SEBI from time to time, in case the

Redemption / Repurchase proceeds are not made within 10 Business

Days of the date of Redemption / Repurchase. However, the AMC will

not be liable to pay any interest or compensation or any amount

otherwise, in case the AMC / Trustee is required to obtain from the

investor / Unit holders verification of identity or such other details relating

to subscription for Units under any applicable law or as may be

requested by a Regulatory Agency or any government authority, which

may result in delay in processing the application.



through MF Utility

portal & MFUI Points of

Services pursuant to

appointment of MF

Utilities India Pvt. Ltd.

AMC has entered into an Agreement with MF Utilities India Private Ltd.

(“MFUI”), a “Category II – Registrar to an Issue” under SEBI (Registrars to

an Issue and Share Transfer Agents) Regulations, 1993, for usage of MF

Utility (“MFU”) - a shared services initiative of various Asset Management

Companies, which acts as a transaction aggregation portal for

transacting in multiple Schemes of various Mutual Funds with a single

form and a single payment instrument.


existing official points of acceptance (“OPA”) for accepting

transactions in the units of the schemes of the Axis Mutual Fund as

disclosed in the SID, www.mfuonline.com i.e. online transaction portal of

MFU and the authorized Points of Service (“POS”) designated by MUFI

shall also be the OPA with effect from the dates as may be specified by

MFUI on its website/ AMC by issuance of necessary communication.

All financial and non-financial transactions pertaining to Schemes of

Axis Mutual Fund can be done through MFU either electronically on




website of MFUI at www.mfuindia.com. This will be updated from time to

time.




94 Axis Liquid Fund


1996, circulars issued by SEBI and as mentioned in the SID / KIM of



transactions on the MFUI portal shall be subject to the terms &

conditions (including those relating to eligibility of investors) as

stipulated by MFUI / Axis Mutual Fund / the AMC from time to time and

in accordance to the laws applicable.

MFUI will allot a Common Account Number (“CAN”), a single reference

number for all investments in the Mutual Fund industry, for transacting in

multiple Schemes of various Mutual Funds through MFU and to map

existing folios, if any. Investors can create a CAN by submitting the CAN

Registration Form (CRF) and necessary documents at the MFUI POS. The

AMC and / or its Registrar and Transfer Agent (RTA) shall provide

necessary details to MFUI as may be needed for providing the required

services to investors / distributors through MFU.


Net Asset Value

This is the value per

Unit of the Scheme on

a particular day. You

can ascertain the

value of your

investments by

multiplying the NAV

with your Unit

balance.

The AMC will calculate and disclose the NAV of the Scheme for all

Calendar Days. The AMC shall update the NAVs on the website of the

AMC (www.axismf.com) and of the Association of Mutual Funds in India

- AMFI (www.amfiindia.com) before 11.00 p.m. every Business Day. If the

NAVs are not available before the commencement of Business Hours on

the following day due to any reason, the Mutual Fund shall issue a press

release giving reasons and explaining when the Mutual Fund would be

able to publish the NAV.

Information regarding NAV can be obtained by the Unit holders /

Investors by calling or visiting the nearest ISC.

Monthly and Half

yearly Disclosures:

Portfolio / Financial

Results

This is a list of securities

where the corpus of

the scheme is

currently invested. The

market value of these

investments is also

stated in portfolio

disclosures.

The AMC will disclose the portfolio of the Scheme (alongwith ISIN) on

fortnightly and half yearly basis on the website of the Mutual Fund and

AMFI within 5 days of every fortnight and within 10 days from the close of

each half year (i.e. 31st March and 30th September) respectively in a

user-friendly and downloadable spreadsheet format. Further, AMC shall

publish an advertisement in an all India edition of one national English

daily newspaper and one Hindi newspaper, every half year, disclosing

the hosting of the half-yearly statement of its schemes’ portfolio on the

website of the Mutual Fund and AMFI and the modes through which

unitholder(s) can submit a request for a physical or electronic copy of

the statement of scheme portfolio.

The AMC will also provide a dashboard, in a comparable,

downloadable (spreadsheet) and machine readable format, providing

performance and key disclosures like Scheme’s AUM, investment

objective, expense ratios, portfolio details, scheme’s past performance

etc. on website.

Half Yearly Results

The Mutual Fund shall within one month from the close of each half year,

that is on 31st March and on 30th September, host a soft copy of its

unaudited financial results on the website of the AMC and AMFI.


such financial results on their website, in atleast one English daily

newspaper having nationwide circulation and in a newspaper having

wide circulation published in the language of the region where the

Head Office of the Mutual Fund is situated.

Annual Report The Scheme wise annual report or an abridged summary thereof shall

be mailed (emailed, where e-mail id is provided unless otherwise


95 Axis Liquid Fund

required) to all Unit holders not later than four months (or such other

period as may be specified by SEBI from time to time) from the date of

closure of the relevant accounting year (i.e. 31st March each year) and

full annual report shall be available for inspection at the Head Office of

the Mutual Fund and a copy shall be made available to the Unit holders

on request on payment of nominal fees, if any. Scheme wise annual

report shall also be displayed on the website of the AMC

(www.axismf.com) and Association of Mutual Funds in India

(www.amfiindia.com).

Unitholders whose email addresses are not registered with the Mutual

Fund may ‘opt-in’ to receive a physical copy of the annual report or an


Further, AMC shall provide a physical copy of the abridged summary of

the Annual Report, without charging any cost, on a specific request

received from a unitholder.

AMC shall also publish an advertisement every year, in an all India

edition of one national English daily newspaper and in one Hindi

newspaper, disclosing the hosting of the scheme wise annual report on

the website of the Mutual Fund and AMFI and the modes through which

a unitholder can submit a request for a physical or electronic copy of

the annual report or abridged summary thereof.

Associate Transactions Please refer to Statement of Additional Information (SAI).

Taxation

Rates applicable for

the FY 20-21.

The information is

provided for general

information only.

However, in view of

the individual nature

of the implications,

each investor is

advised to consult his

or her own tax

advisors/authorised

dealers with respect

to the specific

amount of tax and

other implications

arising out of his or her


schemes.

Particulars

Taxability in the hands of Individuals / Non-corporates /

Corporates


Tax on Dividend Taxed in the hands of

unitholders at applicable rate

under the provisions of the

Income-tax Act, 1961 (Act)

Taxed in the hands of

unitholders at the rate of

20% u/s 115A of the Act

(plus applicable surcharge

and cess)

Long Term

Capital Gains

(LTCG):

(Held for a

period of more

than 36 Months)

-Listed other

than equity-

oriented fund

20% with indexation benefit in

respect of cost of acquisition


and cess)

20% with indexation

benefit in respect of cost

of acquisition


and cess)

LTCG -Unlisted

other than

equity oriented

funds

20%

(Indexation benefit not

available)


and cess)

10%


available)


and cess)

Short Term

Capital Gains

30%

(Refer Note 4)


and cess)

30% (Refer Note 4)

(40% in case of Foreign

companies)


and cess)


96 Axis Liquid Fund

Note –

1. Axis Mutual Fund is a Mutual Fund registered with the Securities &

Exchange Board of India and hence the entire income of the Mutual

Fund will be exempt from income tax in accordance with the provisions

of Section 10(23D) of the Act.

2. Surcharge at the following rate to be levied in case of individual /HUF/

non-corporate non-firm unit holders for equity oriented mutual fund:

Income Individual/ HUF / non-

corporate non-firm unit

holders*

Rs 50 lakh to 1 crore (including income under

section 111A and 112A of the Act)

10%

Above Rs 1 crore upto Rs 2 crores (including

income under section 111A and 112A of the

Act)

15%

Above Rs 2 crores upto Rs 5 crores (excluding


Act)

25%*

Above Rs 5 crores (excluding income under


37%*

*For income earned under provisions of section 111A and section 112A

of the Act surcharge rate shall be 15% where income exceeds Rs 2

crores.

3. Surcharge rates for Companies

Total Income Rate of

Surcharge for

Domestic

companies

Rate of

Surcharge for

Foreign

Companies

Above Rs 1 crore upto Rs 10

crores

7% 2%


*Surcharge rate shall be 10% in case resident companies opting taxation

under section 115BAA and section 115BAB on any income earned.

In case of firm with total income exceeding Rs.1 crore, surcharge rate

shall be 12%.

4. Assuming investor falls in to highest tax bracket

5. Withholding of Taxation by Mutual Fund will as per applicable

withholding tax rate.

For further details on taxation please refer to the clause on Taxation in

the SAI

97 Axis Liquid Fund

Stamp Duty Pursuant to Notification No. S.O. 1226(E) and G.S.R. 226(E) dated March

30, 2020 issued by Department of Revenue, Ministry of Finance,

Government of India, read with Part I of Chapter IV of Notification

dated February 21, 2019 issued by Legislative Department, Ministry of

Law and Justice, Government of India on the Finance Act, 2019, stamp

duty @0.005% of the transaction value would be levied on applicable

mutual fund transactions.

Accordingly, pursuant to levy of stamp duty, the number of units allotted

on purchase transactions (including dividend reinvestment) to the

unitholders would be reduced to that extent.


NAVs, Unit Holdings, Dividends, etc by calling the Investor line of the

AMC at "1800 221322" (toll-free number) and additional contact number

8108622211(Chargeable) from 8.00 am to 8.00 pm (Monday to Friday)

and 9.00 am to 6.00 pm (on Saturday and Sunday) or 4325 5100 (at local

call rate for enquiring at AMC ISC’s) or email –

[email protected]. The service representatives may require

personal information of the Investor for verification of his / her identity in

order to protect confidentiality of information. The AMC will at all times

endeavour to handle transactions efficiently and to resolve any investor

grievances promptly.

Any complaints should be addressed to Mr. Milind Vengurlekar, who has

been appointed as the Investor Relations Officer and can be contacted

at:

Address:


Axis House, 1st Floor, C-2, Wadia International Centre, Pandurang

Budhkar Marg, Worli, Mumbai – 400 025

Phone no.: 022 43254123

For any grievances with respect to transactions through BSE StAR and /

or NSE MFSS, the investors / Unit Holders should approach either the

stock broker or the investor grievance cell of the respective stock

exchange.


The Net Asset Value (NAV) per Unit of the respective Options under the Scheme will be

computed by dividing the net assets of the Scheme by the number of Units outstanding on

the valuation day. The Mutual Fund will value its investments according to the valuation

norms, as specified in Schedule VIII of the SEBI (MF) Regulations, or such norms as may be

specified by SEBI from time to time.

The Net Assets Value (NAV) of the Units under the Scheme shall be calculated as shown

below:

NAV (Rs.) =

Market or Fair

Value of Scheme’s

Investments


Accrued Income


and Provisions


The NAV shall be calculated up to four decimal places. Separate NAV will be calculated

and disclosed for each Option. The NAVs of the Growth Option and the Dividend Option

will be different after the declaration of the first Dividend.

The AMC will calculate and disclose the NAV of the Scheme for all the Calendar Days.

98 Axis Liquid Fund




These expenses are incurred for the purpose of various activities related to the NFO like

sales and distribution fees paid marketing and advertising, Registrar & Transfer Agents

expenses, printing and stationary, bank charges etc.

In accordance with the provisions of SEBI circular no. SEBI/ IMD/CIR No. 1/64057/06 dated

April 04, 2006 and SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009, the NFO expenses

has been borne by the AMC/Sponsor.



Investment Management and Advisory Fee charged by the AMC, Registrar & Transfer

Agent fees, marketing and selling costs etc. as given in the table below:

The AMC has estimated that upto 2.00 % of the daily net assets of the Scheme will be

charged to the Scheme as expenses. For the actual current expenses being charged, the

Investor should refer to the website of the AMC.


Assets

Investment Management and Advisory Fees Upto 2.00%

Trustee fee

Audit fees

Custodian fees

RTA Fees

Marketing & Selling expense incl. agent commission



Cost of providing account statements and dividend redemption

cheques and warrants

Costs of statutory Advertisements


Brokerage & transaction cost over and above 12 bps and 5 bps for

cash and derivative market trades resp.

Goods & Services Tax (GST) on expenses other than investment and

advisory fees


Maximum total expense ratio (TER) permissible under Regulation 52 (6)

(c)

Upto 2.00%

Additional expenses under regulation 52 (6A) (c)^ Upto 0.05%


regulation 52(6A)(b)

Upto 0.30%

^The AMC shall not charge additional expenses under Regulation 52(6A)(c) in case exit

load is not levied/ not applicable.




Note: With effect from October 1, 2012, Retail Plan has been discontinued for fresh

subscriptions received on or after October 1, 2012. Existing investors will continue to remain

invested in the Retail Plans (including Dividend reinvestment) till the existing investments are

redeemed and no fresh subscription shall be accepted in Retail Plan.

Direct Plan shall have a lower expense ratio excluding distribution expenses, commission,

etc. and no commission for distribution of Units will be paid/ charged under Direct Plan.

99 Axis Liquid Fund



Regulation 52(4) of SEBI (MF) Regulations are fungible in nature. Thus, there shall be no

internal sub-limits within the expense ratio for expense heads mentioned under Regulation

52(2) and (4) respectively. Further, the additional expenses under Regulation 52(6A)(c) may

be incurred either towards investment & advisory fees and/or towards other expense heads

as stated above.

These estimates have been made in good faith as per the information available to and

estimates made by the Investment Manager and are subject to change inter-se or in total

subject to prevailing Regulations.

The recurring expenses of the Scheme (including the Investment Management and

Advisory Fees) shall be as per the limits prescribed under the SEBI (MF) Regulations. These

are as follows:

Assets under management Slab (In Rs. crore) Total expense ratio limits






On the next Rs. 40,000 crores of the daily net

assets

Total expense ratio reduction of

0.05% for every increase of Rs. 5,000

crores of daily net assets or part

thereof.


The total expenses of the Scheme(s) including the investment management and advisory

fee shall not exceed the limit stated in Regulation 52(6) of the SEBI (MF) Regulations and

amendments thereto.

A. In addition to the limits as specified in Regulation 52(6) of SEBI (MF) Regulations or the

Total Recurring Expenses (Total Expense Limit) as specified above, the following costs or



(a) expenses not exceeding of 0.30 per cent of daily net assets, if the new inflows from

such cities as specified by SEBI/AMFI from time to time are at least -


(ii) 15 per cent of the average assets under management (year to date) of the

Scheme, whichever is higher:

Provided that if inflows from such cities is less than the higher of sub-clause (i) or sub-

clause (ii), such expenses on daily net assets of the Scheme shall be charged on

proportionate basis.



Provided further that amount incurred as expense on account of inflows from such cities

shall be credited back to the Scheme in case the said inflows are redeemed within a

period of one year from the date of investment.


investors in terms of SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2018/137 dated October

22, 2018 and SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2019/42 dated March 25, 2019.

For this purpose inflows of amount upto Rs 2,00,000/- per transaction, by individual

investors shall be considered as inflows from “retail investor”.

Additional expenses under regulation 52(6A)(c)

100 Axis Liquid Fund

(b) additional expenses, incurred towards different heads mentioned under Regulations

52(2) and 52(4), not exceeding 0.05 per cent of daily net assets of the Scheme;


Asset Management Company Ltd.;

Further, brokerage and transaction costs which are incurred for the purpose of

execution of trade and is included in the cost of investment shall not exceed 0.12 per

cent in case of cash market transactions and 0.05 per cent in case of derivatives

transactions.

B. Within the Total Expense Limit chargeable to the Scheme, following will be charged to

the Scheme:



(b) Investor education and awareness initiative fees of at least 2 basis points on daily

net assets of Scheme.





The current expense ratios will be updated on the AMC website viz.

https://www.axismf.com/total-expense-ratio within two working days mentioning the

effective date of the change.

Illustration of impact of expense ratio on scheme’s returns.

For any scheme, NAV is computed on a daily basis factoring in all the assets as well as

liabilities of the scheme (including expenses charged). Expenses charged to the scheme

bring down its NAV and hence the investor's net returns on a corresponding basis.

Illustration:

Particulars Amount

(in Rs.) No of units

NAV per unit

(in Rs.)


Value of above investment as on March 31, 2017 (gross

of all expenses) (B) 11,500 1,000 11.50


(assumed) ( C ) 200 0.20

Value of above investment as on March 31, 2017 (net of

all expenses) (D) = (B-C) 11,300 1,000 11.30


((B/A)-1) 15.0%

Returns (%) (net of all applicable expenses) (F) = ((D/A)-

1) 13.0%

Please Note:


charged to the Scheme and should not be construed as providing any kind of

investment advice or guarantee of returns on investments.



under the Scheme.

Calculations are based on assumed NAVs, and actual returns on your investment may

be more, or less.

Any tax impact has not been considered in the above example, in view of the

individual nature of the tax implications. Each investor is advised to consult his or her

own financial advisor.

C. LOAD STRUCTURE



Load is an amount which is paid by the investor to redeem the Units from the Scheme. This


marketing and selling expenses. Load amounts are variable and are subject to change

from time to time. For the current applicable structure, investors may refer to the website of

the AMC (www.axismf.com) or may call at 1800 221322 (toll-free number) and additional

contact number 8108622211(Chargeable) from 8.00 am to 8.00 pm (Monday to Friday) and

9.00 am to 6.00 pm (on Saturday and Sunday) or can contact his distributor.


that there shall be no entry Load for all Mutual Fund Schemes.

Type of Load Load chargeable (as %age of NAV)


Exit Load

(w.e.f. October

20, 2019)

Investor exit upon Subscription Exit load as a % of redemption

proceeds

Day 1 0.0070%

Day 2 0.0065%

Day 3 0.0060%

Day 4 0.0055%

Day 5 0.0050%

Day 6 0.0045%

Day 7 onwards 0.0000%

The aforesaid exit load shall be applicable on a prospective basis to all fresh investments

made in the Scheme on or after the effective date including registered Systematic Transfer

Plans (STPs), Systematic Withdrawal Plans (SWPs) etc. falling due on or after the effective

date. No exit load will be charged for switch between Axis Liquid Fund (Regular Plan) and

Axis Liquid Fund - Direct Plan where transaction is not routed through Distributor in Axis Liquid

Fund (Regular Plan). If the transaction in Regular Plan is routed through Distributor, then

applicable exit load will be charged for switch from Regular Plan to Direct Plan.

Units issued on reinvestment of Dividends shall not be subject to any Load, if any. No load

shall be levied on switches between options of the Scheme.

The above mentioned load structure shall be equally applicable to the special products

such as STP, switches, etc. offered by the AMC.

Exit load charged to the investors will be credited back to the Scheme net of GST.


investing.





Fund. The AMC/Trustee reserves the right to introduce / modify the Load depending upon

the circumstances prevailing at that time subject to maximum limits as prescribed under

the Regulations.



difference between the Redemption price and Sale price at any point in

time shall not exceed the permitted limit as prescribed by SEBI from time to time which is

presently 7% calculated on the Sale Price.


1. An Addendum detailing the changes will be attached to Scheme Information

Document and Key Information Memorandum. The addendum may be circulated to all

the distributors / brokers so that the same can be attached to all Scheme Information




made to display the addendum in the form of a notice in all the Investor Service

Centres and distributors / brokers office.

3. The introduction of the Exit Load/ CDSC alongwith the details may be stamped in the



Load/CDSC.

4. A public notice shall be given in respect of such changes in one English daily

newspaper having nationwide circulation as well as in a newspaper published in the

language of region where the Head Office of the Mutual Fund is situated.


The Trustee/AMC reserves the right to change the load structure subject to the limits

prescribed under the Regulations. Any change in load structure shall be only on a

prospective basis i.e. Any such changes would be chargeable only for Redemptions from

prospective purchases (applying first in first out basis).

Transaction charge

In terms of SEBI circular no. CIR/ IMD/ DF/ 13/ 2011 dated August 22, 2011, as amended from

time to time, Transaction Charge per subscription of Rs.10,000/– and above shall be

charged from the investors and shall be payable to the distributors/ brokers (who have

opted in for charging the transaction charge) in respect of applications routed through

distributor/ broker relating to Purchases / subscription / new inflows only (lump sum and SIP),

subject to the following:

For Existing / New investors: Rs.100 / Rs.150 as applicable per subscription of Rs. 10,000/–

and above


amounts to Rs.10,000/– and above. In such cases the transaction charge would be


There shall be no transaction charge on subscription below Rs.10,000/-.


There shall be no transaction charges for transaction other than purchases /

subscriptions relating to new inflows such as Switches, etc.

Transactions carried out through the Stock Exchange platforms for mutual funds shall

not be subject to transaction charges.

However, the option to charge “transaction charges” is at the discretion of the distributors.

Investors may note that distributors can opt to receive transaction charges based on type

of the Scheme. Accordingly, the transaction charges would be deducted from the

subscription amounts, as applicable.


that there shall be no entry Load for all Mutual Fund Schemes. The upfront commission on









invested in the Scheme. The statement of account shall clearly state that the net

investment as gross subscription less transaction charge and give the number of units

allotted against the net investment.


Not applicable


V. RIGHTS OF UNITHOLDERS








1. All disclosures regarding penalties and action(s) taken against foreign Sponsor(s) may

be limited to the jurisdiction of the country where the principal activities (in terms of

income / revenue) of the Sponsor(s) are carried out or where the headquarters of the

Sponsor(s) is situated. Further, only top 10 monetary penalties during the last three years

shall be disclosed.

Not Applicable


taken during the last three years or pending with any financial regulatory body or

governmental authority, against Sponsor(s) and/ or the AMC and/ or the Board of

Trustees /Trustee Company; for irregularities or for violations in the financial services

sector, or for defaults with respect to share holders or debenture holders and depositors,

or for economic offences, or for violation of securities law. Details of settlement, if any,

arrived at with the aforesaid authorities during the last three years shall also be

disclosed.


following a statutory inspection which revealed violations of various regulations

of the RBI in relation to assessment of NPAs. After considering the response and

oral submissions of Axis Bank, the RBI found that the charges of non-compliance

were substantiated and imposed a monetary penalty of INR 3,00,00,000 (Rupees

Three Crores Only) on March 5, 2018.

b. The RBI had issued Show Cause Notice vide its letter dated 27.7.2018 with

respect to dispensation of two Children Bank Play Notes of Rs.500 each

dispensed to two customers from ATM at Kidwai nagar branch, Kanpur in non-

compliance to its Master Circular on Detection and Impounding of Counterfeit

Notes dated July 20, 2017 and, the Circular on Sorting of Notes – Installation of

Note Sorting Machines dated November 19, 2009 and the Bank submitted the


of Rs.20 lakhs and the Bank paid the same on 5.2.2019.

c. The RBI had issued Show Cause Notice vide its letter dated 29.8.2018 for

wrongfully collecting 105 DDs, each for the amount exceeding Rs.50,000,

aggregating Rs.5.56 crores in the account of Satkar Co-operative Credit Society

Ltd. in non-compliance to its Master Circular on ‘Collection of Account Payee

Cheques - Prohibition on Crediting Proceeds to Third Party Account’ dated

January 22, 2014 and for the delay in reporting of above fraud in non-

compliance to Master Directions on ‘Frauds - Classification and Reporting by

commercial banks and select FIs’ dated July 1, 2016. The Bank submitted the


of Rs.2 Crore and the Bank has paid the same on 16.2.2019.

d. The RBI had issued Show cause notice vide its letter dated 23.8.2018 with respect

to non-compliance to guidelines issued dated 20.2.2018 on ‘Time-bound

implementation & Strengthening of SWIFT related operational controls and the

Bank submitted the response on 5.9.2018. The RBI vide its letter dated 25.2.2019


action in future.


with SEBI for the violation of SEBI Act, 1992 and Rules and Regulations framed there

under including debarment and/ or suspension and/ or cancellation and/ or imposition

of monetary penalty/adjudication/enquiry proceedings, if any, to which the Sponsor(s)

and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the

directors and/ or key personnel (especially the fund managers) of the AMC and Trustee

Company were/ are a party. The details of the violation shall also be disclosed.

Nil



Fund to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee

Company and/ or any of the directors and/ or key personnel are a party should also be

disclosed separately.

Nil

5. Any deficiency in the systems and operations of the Sponsor(s) and/ or the AMC and/

or the Board of Trustees/Trustee Company which SEBI has specifically advised to be

disclosed in the SID, or which has been notified by any other regulatory agency, shall be

disclosed.

Nil

The Scheme under this Scheme Information Document was approved by the Trustee

Company on September 05, 2009. The Trustee has ensured that the Scheme is a new

product offered by Axis Mutual Fund and is not a minor modification of its existing

schemes.


the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be

applicable.



Sd/-


Managing Director &







Ellisbridge, 3rd Floor, 302, Megha House, Opp. Kotak Bank,Ahmedabad - 380 006.. AGRA:

Axis Asset Management Company Limited, Shop No. G-7, Ground Floor, Block-19/4, Sanjay

Place, Agra - 282 002. BANGALORE Axis Asset Management Co.Ltd. Ground Floor, G-03 &

G-03A, Prestige Meridian-1, No. 29, M.G. Road, Bangalore - 560 001 BHOPAL Axis Asset

Management Co FM-8 Mansarovar Complex , Khasra No. 27/1/2 , NH-12 , Bhopal , MP.

BHUBANESHWAR Axis Asset Management Co Unit no.3 (Part) Ground Floor Nandighosh

Arena Plot no. 1 Bapuji Nagar Bhubaneshwar Odisha. BORIVALI Axis Asset Management Co.

Ltd, Office No. 201, 2 Floor, REIS Magos, Ramdas Sutrale Marg, Off. Chandavarkar Road,

Borivali (West), Mumbai, Maharashtra - 400092. CHANDIGARH Axis Asset Management

Co.Ltd. 2nd Floor, SCO No 2471, Sector 22C, Chandigarh - 160022. CHENNAI Axis Asset

Management Co. Ltd. 1st Floor , Door no. 168 Anna Salai , Opp. To Spencer Plaza , Chennai

, Tamil Nadu - 600 002., COIMBATORE Axis Asset Management Company Limited, 1st Floor,

Shylaja Complex, 575 DB Road, R. S. Puram, Near Head Post Office, Coimbatore - 641 002.

DEHRADUN Axis Asset Management Co. Ltd., 59/3 First Floor, Rajpur Road, Above IDBI Bank,

Dehradun – 248001. FORT Axis Asset Management Company Limited , 112, 1st Floor, Yusuf

Building, Plot No. 49, Veer Nariman Road, Hutatma Chowk, Fort, Mumbai - 400 001.

GUWAHATI Axis Asset Management Co. ltd 2C 2nd Floor, “Dihang Arcade”, ABC, G.S. Road

Opp Dona Planet Guwahati 781005. HYDERABAD Axis Asset Management Company Ltd,

2nd Floor, Nerella House, Panjagutta, Hyderabad - 500 082. INDORE Axis Asset Management

Co. ltd office No. 211 2nd Floor Megapolis Square Block A 579, M.G Road .opp Treasure

Island Mall Indore 452001 M.P JAIPUR Axis Asset Management Company Ltd, 305, 3 Floor,

Green House, Near Ahinsa Circle, Ashok Marg, C Scheme, Jaipur - 302001.Rajasthan.

JALANDHAR Axis Asset Management Co. Ltd , SCO 5-6, 1st Floor, Puda Complex, Opp

Suvidha Center, Ladowali Road, Jalandhar - 144 001 KANPUR Axis Asset Management

August Company Limited, 305-306, 3rd Floor, Civil Lines, Kan Chamber, Kanpur – 208001.

KOCHI Axis Asset Management Company Limited,Door No.40/9336 ,2nd Floor ,Chackos

Towers ,Padma Pullepady Road ,Kochi 682 035 Kerala. KOLKATA Axis Asset Management

Company Ltd, Ground Floor, Kanak Building,41, Chowringhee Road Kolkata - 700071.

LUCKNOW Axis Asset Management Co. Ltd, Unit No 5, 6 & 7, Halwasiya's Commerce House,

2nd Floor, Habibullah Estate, 11, M.G.Marg, Hazratganj, Lucknow - 226001. LUDHIANA Axis

Asset Management Co. Ltd. SCO - 28, First Floor, Feroz Gandhi Market, Ludhiana - 141001.

MUMBAI Axis Asset Management Company Limited Axis House, First Floor, C-2, Wadia

International Centre, Pandurang Budhkar Marg, Worli, Mumbai - 400025. MUMBAI

(Indiabulls) Axis Asset Management Company Ltd. Unit No. 902, 9th Floor, Indiabulls Finance

Center, Tower 2, Senapati Bapat Marg, Mumbai - 400013. NAGPUR Axis Asset Management

Company Ltd. 1st Floor, "The Edge", 12, Shankar Nagar, WHC Road, Nagpur-440010 NASIK

Axis Asset Management Company Limited Shop No. G-7,GroundFloor, Rajvee Enclave, Old

Pandit Colony, Nasik - 422 001, Maharashtra. NEW DELHI Axis Asset Management Company

Ltd. 702-705, 7th Floor, Narain Manzil, Barakhamba Road, Connaught Place, New Delhi -

110001. PANAJI Axis Asset Management Company Limited Ground Floor, Shop No. G-7,

Edcon Towers, Menezes Braganza Road, Panjim, Goa - 403001. PUNE Axis Asset

Management Company Ltd. Unit No. 102 & 102-A/B, 1st Floor, Signature Building,

Bhandarkar Road, CTS No. 853, Plot No. 195, Bhamburda, Shivajinagar, Pune - 411005.PATNA

Axis Asset Management Company Ltd. D - 309/ 310, 3 Floor, Dumroan Palace, Frazer Road,

Patna 800 001. RAIPUR Axis Asset Management Company Ltd ,Office No. T -10, 3rd Floor,

Raheja Towers, Fafadih , Chowk Jail Road, Raipur, Chhattisgarh - 492001. RAJKOT Axis Asset

Management Co. ltd 206, Metro Plaza Jansata Chowk Near Eagle Travels Moti Tanki Chowk

, Rajkot - 360001. SURAT Axis Asset Management Company Limited,HG-2A, International

Trade Centre(ITC), Majura Gate Crossing, Ring Road ,Surat Gujarat, India. Thane Axis Asset

Management Company Ltd, Manjula Arcade, 2nd Floor, Gokhale Road, Naupada, Thane

(West) - 400 602. Vadodara Axis Asset Management Company Limited 3rd Floor, 306,

Emerald Complex, Race Course, Near Bird Circle, Old Padra Road, Vadodara - 390

007.Amritsar Axis Asset Management Co. Ltd SCO-25, First floor, District shopping Centre, B-

Block, Ranjit Avenue, Amritsar – 143001. Varanasi Axis Asset Management Company Ltd.

7th Floor, Arihant Complex, D-64/127 C-H, Sigra, Varanasi, Uttar Pradesh - 221010.

Visakhapatnam Axis Asset Management Company Limited, S3, 3rd Floor, Navaratna Jewel

Square, Beside Jyothi, Book Depot, Dwarakanagar, Visakhapatnam - 530 016.


KFIN TECHNOLOGIES PRIVATE LIMITED INVESTOR SERVICE CENTERS

Bangalore - KFin Technologies Pvt. Ltd,No 35,Puttanna Road,Basavanagudi,Bangalore

560004 Belgaum - KFin Technologies Pvt. Ltd,Premises No.101, CTS NO.1893,Shree Guru

Darshani Tower,Anandwadi, Hindwadi,Belgaum 590011 Bellary - KFin Technologies Pvt.

Ltd,Shree Gayathri Towers #4,1st Floor K.H.B.Colony,Gopalaswamy Mudaliar Road,Gandhi

Nagar-Bellary 583103 Davangere - KFin Technologies Pvt. Ltd,D.No 162/6 , 1st Floor, 3rd

Main,P J Extension,Davangere taluk, Davangere Manda,Davangere 577002 Dharwad - KFin

Technologies Pvt. Ltd,ADINATH COMPLEX,BESIDE KAMAL AUTOMOBILES, BHOOVI GALLI,OPP

OLD LAXMI TALKIES, P B ROAD,Dharwad 580001 Gulbarga - KFin Technologies Pvt. Ltd,H NO

2-231,KRISHNA COMPLEX, 2ND FLOOR Opp.,Opp. Municipal corporation Office,Jagat,

Station Main Road, KALABURAGI,Gulbarga 585105 Hassan - KFin Technologies Pvt. Ltd,SAS

NO: 490, HEMADRI ARCADE,2ND MAIN ROAD,SALGAME ROAD NEAR BRAHMINS BOYS

HOSTEL,Hassan 573201 Hubli - KFin Technologies Pvt. Ltd,R R MAHALAXMI MANSION,ABOVE

INDUSIND BANK, 2ND FLOOR,DESAI CROSS, PINTO ROAD,Hubballi 580029 Mangalore - KFin

Technologies Pvt. Ltd,Mahendra Arcade Opp Court Road,Karangal Padi,-,Mangalore

575003 Margao - KFin Technologies Pvt. Ltd,2Nd Floor ,Dalal Commercial

Complex,Pajifond,Margao 403601 Mysore - KFin Technologies Pvt. Ltd, NO 2924, 2ND

FLOOR, 1ST MAIN, 5TH CROSS, SARASWATHI PURAM, MYSORE 570009 Panjim - KFin

Technologies Pvt. Ltd,H. No: T-9, T-10, Affran plaza,3rd Floor,Near Don Bosco High School,

Panjim 403001 Shimoga - KFin Technologies Pvt. Ltd,JAYARAMA NILAYA,2ND

CORSS,MISSION COMPOUND, Shimoga 577201 Ahmedabad - KFin Technologies Pvt.

Ltd,Office No. 401, on 4th Floor,ABC-I, Off. C.G. Road,-,Ahmedabad 380009 Anand - KFin

Technologies Pvt. Ltd,B-42 Vaibhav Commercial Center,Nr Tvs Down Town Shrow

Room ,Grid Char Rasta ,Anand 380001 Baroda - KFin Technologies Pvt. Ltd,203 Corner

point, Jetalpur Road, Baroda Gujarat, Baroda 390007 Bharuch - KFin Technologies Pvt.

Ltd,123 Nexus business Hub, Near Gangotri Hotel, B/s Rajeshwari Petroleum, Makampur

Road, Bharuch 392001 Bhavnagar - KFin Technologies Pvt. Ltd,303 STERLING POINT

,WAGHAWADI ROAD ,-,Bhavnagar 364001 Gandhidham - KFin Technologies Pvt. Ltd,Shop #

12 Shree Ambica Arcade Plot # 300,Ward 12. Opp. CG High School ,Near HDFC

Bank,Gandhidham 370201 Gandhinagar - KFin Technologies Pvt. Ltd,123 First Floor,Megh

Malhar Complex,Opp. Vijay Petrol Pump Sector - 11, Gandhinagar 382011 Jamnagar - KFin

Technologies Pvt. Ltd,131 Madhav Plazza, ,Opp Sbi Bank,Nr Lal Bunglow, Jamnagar 361008

Junagadh - KFin Technologies Pvt. Ltd,124-125 Punit Shopping Center,M.G Road, Ranavav

Chowk, Junagadh 362001 Mehsana - KFin Technologies Pvt. Ltd,FF-21 Someshwar Shopping

Mall ,Modhera Char Rasta, -,Mehsana 384002 Nadiad - KFin Technologies Pvt. Ltd,311-3rd

Floor City Center ,Near Paras Circle,-,Nadiad 387001 Navsari - KFin Technologies Pvt. Ltd,103

1ST FLOORE LANDMARK MALL,NEAR SAYAJI LIBRARY ,Navsari Gujarat, Navsari 396445 Rajkot

- KFin Technologies Pvt. Ltd,302 Metro Plaza ,Near Moti Tanki Chowk,Rajkot, Rajkot Gujarat

360001 Surat - KFin Technologies Pvt. Ltd,Office no: -516 5th Floor Empire State building ,Near

Udhna Darwaja, Ring Road, Surat 395002 Valsad - KFin Technologies Pvt. Ltd,406 Dreamland

Arcade,Opp Jade Blue,Tithal Road, Valsad 396001 Vapi - KFin Technologies Pvt. Ltd,A-8

FIRST FLOOR SOLITAIRE BUSINESS CENTRE,OPP DCB BANK GIDC CHAR RASTA,SILVASSA

ROAD, Vapi 396191 Chennai - KFin Technologies Pvt. Ltd,F-11 Akshaya Plaza 1St Floor,108

Adhithanar Salai,Egmore Opp To Chief Metropolitan Court,Chennai 600002 T

Nagar/Nungambakkam - KFin Technologies Pvt. Ltd,No 23 | Cathedral Garden

Road,Cathedral Garden Road,Nungambakkam,Chennai,600 034 Calicut - KFin

Technologies Pvt. Ltd,Second Floor,Manimuriyil Centre, Bank Road,,Kasaba Village,Calicut

673001 Cochin - KFin Technologies Pvt. Ltd,Ali Arcade 1St FloorKizhavana

Road,Panampilly Nagar,Near Atlantis Junction, Ernakualm 682036 Kannur - KFin

Technologies Pvt. Ltd,2ND FLOOR,GLOBAL VILLAGE,BANK ROAD,Kannur 670001 Kollam - KFin

Technologies Pvt. Ltd,GROUND FLOORA NARAYANAN SHOPPING COMPLEX,KAUSTHUBHSREE

BLOCK,Kadapakada,Kollam 691008 Kottayam - KFin Technologies Pvt. Ltd,1St Floor

Csiascension Square,Railway Station Road,Collectorate P O,Kottayam 686002 Palghat - KFin

Technologies Pvt. Ltd,No: 20 & 21 ,Metro Complex H.P.O.Road

Palakkad,H.P.O.Road,Palakkad 678001 Tiruvalla - KFin Technologies Pvt. Ltd,2Nd FloorErinjery

Complex,Ramanchira,Opp Axis Bank,Thiruvalla 689107 Trichur/Thrissur - KFin Technologies

Pvt. Ltd,4TH FLOOR, CROWN TOWER,SHAKTHAN NAGAR,OPP. HEAD POST OFFICE,Thrissur

680001 Trivandrum - KFin Technologies Pvt. Ltd,MARVEL TOWER, 1ST FLOOR,URA-42

STATUE,(UPPALAM ROAD RESIDENCE ASSOCIATION) ,Trivandrum 695010 Coimbatore - KFin

Technologies Pvt. Ltd,3rd Floor Jaya Enclave,1057 Avinashi Road,-,Coimbatore 641018

Erode - KFin Technologies Pvt. Ltd,Address No 38/1 Ground Floor,Sathy Road,(VCTV Main


Road),Sorna Krishna Complex,Erode 638003 Karur - KFin Technologies Pvt. Ltd,No 88/11, BB

plaza,NRMP street,K S Mess Back side,Karur 639002 Madurai - KFin Technologies Pvt. Ltd,No.

G-16/17,AR Plaza, 1st floor,North Veli Street,Madurai 625001 Nagerkoil - KFin Technologies

Pvt. Ltd,HNO 45 ,1st Floor,East Car Street ,Nagercoil 629001 Pondicherry - KFin Technologies

Pvt. Ltd,No 122(10b),Muthumariamman koil street,-,Pondicherry 605001 Salem -KFin

Technologies Pvt. Ltd, No.6 NS Complex, Omalur main road, Salem 636009 Tirunelveli - KFin

Technologies Pvt. Ltd,55/18 Jeney Building,S N Road,Near Aravind Eye Hospital,Tirunelveli

627001 Trichy - KFin Technologies Pvt. Ltd,No 23C/1 E V R road, Near Vekkaliamman

Kalyana Mandapam,Putthur,-,Trichy 620017 Tuticorin - KFin Technologies Pvt. Ltd,4 - B A34 -

A37,Mangalmal Mani Nagar,Opp. Rajaji Park Palayamkottai Road,Tuticorin 628003 Vellore -

KFin Technologies Pvt. Ltd,No 2/19,1st floor,Vellore city centre,Anna salai,Vellore 632001

Agartala - KFin Technologies Pvt. Ltd,OLS RMS CHOWMUHANI,MANTRI BARI ROAD1ST FLOOR

NEAR TRAFFIC POINT,TRIPURA WEST,Agartala 799001 Guwahati - KFin Technologies Pvt. Ltd.,

Ganapati Enclave, 4th Floor, Opposite Bora Service, Ullubari, Guwahati, Assam - 781007.

Shillong - KFin Technologies Pvt. Ltd,Annex Mani Bhawan ,Lower Thana Road ,Near R K M Lp

School ,Shillong 793001 Silchar - KFin Technologies Pvt. Ltd,N.N. Dutta Road,Chowchakra

Complex,Premtala,Silchar 788001 Ananthapur - KFin Technologies Pvt. Ltd,Plot No: 12-

313,,Balaji Towers, Suryanagar,Ananthapur Village,Anantapur 515001 Eluru - KFin

Technologies Pvt. Ltd,DNO-23A-7-72/73K K S PLAZA MUNUKUTLA VARI STREET,OPP ANDHRA

HOSPITALS,R R PETA,Eluru 534002 Guntur - KFin Technologies Pvt. Ltd,2nd Shatter, 1st

Floor,Hno. 6-14-48, 14/2 Lane,,Arundal Pet,Guntur 522002 Hyderabad - KFin Technologies

Pvt. Ltd,No:303, Vamsee Estates,Opp: Bigbazaar,Ameerpet,Hyderabad 500016 Karimnagar

- KFin Technologies Pvt. Ltd,2nd ShutterHNo. 7-2-607 Sri Matha ,Complex Mankammathota ,-

,Karimnagar 505001 Kurnool - KFin Technologies Pvt. Ltd,Shop No:47,2nd Floor,S komda

Shoping mall,Kurnool 518001 Nanded - KFin Technologies Pvt. Ltd,Shop No.4 ,Santakripa

Market G G Road,Opp.Bank Of India,Nanded 431601 Rajahmundry - KFin Technologies Pvt.

Ltd., No. 46-23-10/A, Tirumala Arcade, 2nd Floor, Ganuga Veedhi, Danavaipeta,

Rajahmundry East, Godavari Dist., AP - 533103. Solapur - KFin Technologies Pvt. Ltd,Block No

06,Vaman Nagar Opp D-Mart,Jule Solapur,Solapur 413004 Srikakulam - KFin Technologies

Pvt. Ltd,D No 4-4-97 First Floor Behind Sri Vijayaganapathi Temple,Pedda relli veedhi

,Palakonda Road ,Srikakulam 532001 Tirupathi - KFin Technologies Pvt. Ltd,H.No:10-13-

425,1st Floor Tilak Road ,Opp: Sridevi Complex ,Tirupathi 517501 Vijayawada - KFin

Technologies Pvt. Ltd,HNo26-23, 1st Floor,Sundarammastreet,GandhiNagar,

Krishna,Vijayawada 520010 Visakhapatnam - KFin Technologies Pvt. Ltd,DNO : 48-10-40,

GROUND FLOOR, SURYA RATNA ARCADE, SRINAGAR, OPP ROADTO LALITHA JEWELLER

SHOWROOM,BESIDE TAJ HOTEL LADGE,Visakhapatnam 530016 Warangal - KFin

Technologies Pvt. Ltd,Shop No22 , ,Ground Floor Warangal City Center,15-1-237,Mulugu

Road Junction,Warangal 506002 Khammam - KFin Technologies Pvt. Ltd,11-4-3/3 Shop No.

S-9,1st floor,Srivenkata Sairam Arcade,Old CPI Office Near PriyaDarshini CollegeNehru

Nagar ,KHAMMAM 507002 Hyderabad(Gachibowli) - KFintech Pvt.Ltd,Selenium Plot No: 31

& 32,Tower B Survey No.115/22 115/24 115/25,Financial District Gachibowli Nanakramguda

Serilimgampally Mandal,Hyderabad,500032 Akola - KFin Technologies Pvt. Ltd,Yamuna

Tarang Complex Shop No 30,Ground Floor N.H. No- 06 Murtizapur Road,Opp Radhakrishna

Talkies,Akola 444004 Amaravathi - KFin Technologies Pvt. Ltd,Shop No. 21 2nd Floor,Gulshan

Tower,Near Panchsheel Talkies Jaistambh Square,Amaravathi 444601 Aurangabad - KFin

Technologies Pvt. Ltd,Shop no B 38,Motiwala Trade Center,Nirala Bazar,Aurangabad 431001

Bhopal - KFin Technologies Pvt. Ltd,Gurukripa Plaza, Plot No. 48A,Opposite City Hospital,

zone-2,M P nagar,Bhopal 462011 Dhule - KFin Technologies Pvt. Ltd,Ground Floor Ideal

Laundry Lane No 4,Khol Galli Near Muthoot Finance,Opp Bhavasar General Store,Dhule

424001 Indore - KFin Technologies Pvt. Ltd,101,Diamond Trade centre,-,Indore 452001

Jabalpur - KFin Technologies Pvt. Ltd., 2nd Floor, 290/1 (615-New), Near Bhavartal Garden,

Jabalpur - 482001. Jalgaon - KFin Technologies Pvt. Ltd,3rd floor,22 Yashodhah,Ring

Road,Jalgaon 425001 Nagpur - KFin Technologies Pvt. Ltd,Plot No. 2, Block No. B / 1 & 2 ,

Shree Apratment,Khare Town, Mata Mandir Road,Dharampeth,Nagpur 440010 Nasik - KFin

Technologies Pvt. Ltd,S-9 Second Floor,Suyojit Sankul,Sharanpur Road,Nasik 422002 Sagar -

KFin Technologies Pvt. Ltd,II floor Above shiva kanch mandir.,5 civil lines,Sagar,Sagar 470002

Ujjain - KFin Technologies Pvt. Ltd,Heritage Shop No. 227,87 Vishvavidhyalaya Marg,Station

Road,Near ICICI bank Above Vishal Megha Mart,Ujjain 456001 Asansol - KFin Technologies

Pvt. Ltd,112/N G. T. ROAD BHANGA PACHIL,G.T Road Asansol Pin: 713 303; ,Paschim

Bardhaman West Bengal,Asansol 713303 Balasore - KFin Technologies Pvt. Ltd,1-B. 1st Floor,

Kalinga Hotel Lane,Baleshwar,Baleshwar Sadar,Balasore 756001 Bankura - KFin Technologies

Pvt. Ltd,Plot nos- 80/1/ANATUNCHATI MAHALLA 3rd floor,Ward no-24 Opposite P.C


Chandra,Bankura town,Bankura 722101 Berhampur (Or) - KFin Technologies Pvt. Ltd, Opp

Divya Nandan Kalyan Mandap,3rd Lane Dharam Nagar,Near Lohiya Motor,Berhampur (Or)

760001 Bhilai - KFin Technologies Pvt. Ltd,Office No.2, 1st Floor,Plot No. 9/6,Nehru Nagar

[East],Bhilai 490020 Bhubaneswar - KFin Technologies Pvt. Ltd,A/181 Back Side Of Shivam

Honda Show Room,Saheed Nagar,-,Bhubaneswar 751007 Bilaspur - KFin Technologies Pvt.

Ltd,Shop.No.306,3rd Floor,ANANDAM PLAZA,Vyapar Vihar Main Road,Bilaspur 495001

Bokaro - KFin Technologies Pvt. Ltd,CITY CENTRE, PLOT NO. HE-07,SECTOR-IV,BOKARO STEEL

CITY,Bokaro 827004 Burdwan - KFin Technologies Pvt. Ltd,Anima Bhavan 1st Floor Holding

No.-42,Sreepally G. T. Road,West Bengal,Burdwan 713103 Chinsura - KFin Technologies Pvt.

Ltd,No : 96,PO: CHINSURAH,DOCTORS LANE,Chinsurah 712101 Cuttack - KFin Technologies

Pvt. Ltd,SHOP NO-45,2ND FLOOR,,NETAJI SUBAS BOSE ARCADE,,(BIG BAZAR BUILDING)

ADJUSENT TO RELIANCE TRENDS,,DARGHA BAZAR,Cuttack 753001 Dhanbad - KFin

Technologies Pvt. Ltd,208 New Market 2Nd Floor,Bank More,-,Dhanbad 826001 Durgapur -

KFin Technologies Pvt. Ltd,MWAV-16 BENGAL AMBUJA,2ND FLOOR CITY CENTRE,Distt.

BURDWAN Durgapur-16 ,Durgapur 713216 Gaya - KFin Technologies Pvt. Ltd,Property No.

711045129, Ground FloorHotel Skylark,Swaraipuri Road,-,Gaya 823001 Jalpaiguri - KFin

Technologies Pvt. Ltd,D B C Road Opp Nirala Hotel,Opp Nirala Hotel,Opp Nirala

Hotel,Jalpaiguri 735101 Jamshedpur - KFin Technologies Pvt. Ltd,Madhukunj, 3rd Floor ,Q

Road, Sakchi,Bistupur, East Singhbhum,Jamshedpur 831001 Kharagpur - KFin Technologies

Pvt. Ltd,Holding No 254/220, SBI BUILDING,Malancha Road, Ward No.16, PO: Kharagpur, PS:

Kharagpur,Dist: Paschim Medinipur,Kharagpur 721304 Kolkata - KFin Technologies Pvt.

Ltd,Apeejay House ( Beside Park Hotel ),C Block3rd Floor,15 Park Street ,Kolkata 700016

Malda - KFin Technologies Pvt. Ltd,RAM KRISHNA PALLY; GROUND FLOOR,ENGLISH BAZAR,-

,Malda 732101 Patna - KFin Technologies Pvt. Ltd,3A 3Rd Floor Anand Tower,Exhibition

Road,Opp Icici Bank,Patna 800001 Raipur - KFin Technologies Pvt. Ltd,OFFICE NO S-13

SECOND FLOOR REHEJA TOWER,FAFADIH CHOWK,JAIL ROAD,Raipur 492001 Ranchi - KFin

Technologies Pvt. Ltd,Room No 307 3Rd Floor ,Commerce Tower ,Beside Mahabir Tower

,Ranchi 834001 Rourkela - KFin Technologies Pvt. Ltd,2nd Floor, Main Road,UDIT

NAGAR,SUNDARGARH,Rourekla 769012 Sambalpur - KFin Technologies Pvt. Ltd,First Floor;

Shop No. 219,SAHEJ PLAZA,Golebazar; Sambalpur,Sambalpur 768001 Siliguri - KFin

Technologies Pvt. Ltd,Nanak Complex, 2nd Floor,Sevoke Road,-,Siliguri 734001 Agra - KFin

Technologies Pvt. Ltd,House No. 17/2/4, 2nd Floor,Deepak Wasan Plaza,Behind Hotel

Holiday INN,Sanjay Place,Agra 282002 Aligarh - KFin Technologies Pvt. Ltd,Sebti

Complex Centre Point,Sebti Complex Centre Point,-,Aligarh 202001 Allahabad - KFin

Technologies Pvt. Ltd,Meena Bazar,2nd Floor 10 S.P. Marg Civil Lines,Subhash Chauraha,

Prayagraj,Allahabad 211001 Ambala - KFin Technologies Pvt. Ltd,6349, 2nd Floor,Nicholson

Road,Adjacent Kos Hospitalambala Cant,Ambala 133001 Azamgarh - KFin Technologies

Pvt. Ltd,House No. 290, Ground Floor,Civil lines, Near Sahara Office,-,Azamgarh 276001

Bareilly - KFin Technologies Pvt. Ltd,1ST FLOORREAR SIDEA -SQUARE BUILDING,54-CIVIL

LINES,Ayub Khan Chauraha,Bareilly 243001 Begusarai - KFin Technologies Pvt. Ltd,C/o Dr

Hazari Prasad Sahu,Ward No 13, Behind Alka Cinema,Begusarai (Bihar),Begusarai 851117

Bhagalpur - KFin Technologies Pvt. Ltd,2Nd Floor,Chandralok ComplexGhantaghar,Radha

Rani Sinha Road,Bhagalpur 812001 Darbhanga - KFin Technologies Pvt. Ltd,Jaya

Complex2Nd Floor,Above Furniture, lanetDonar, Chowk, Darbhanga 846003 Dehradun -

KFin Technologies Pvt. Ltd,Kaulagarh Road,Near Sirmaur Margabove,Reliance

Webworld,Dehradun 248001 Deoria - KFin Technologies Pvt. Ltd,K. K. Plaza,Above Apurwa

Sweets,Civil Lines Road,Deoria 274001 Faridabad - KFin Technologies Pvt. Ltd,A-2B 2nd

Floor,Neelam Bata Road Peer ki Mazar,Nehru Groundnit,Faridabad 121001 Ghaziabad -

KFin Technologies Pvt. Ltd,FF - 31, Konark Building,Rajnagar,-,Ghaziabad 201001 Ghazipur -

KFin Technologies Pvt. Ltd,House No. 148/19,Mahua Bagh,-,Ghazipur 233001 Gonda - KFin

Technologies Pvt. Ltd,H No 782,Shiv Sadan,ITI Road,Near Raghukul Vidyapeeth,Civil

lines,Gonda 271001 Gorakhpur - KFin Technologies Pvt. Ltd,Above V.I.P. House

ajdacent,A.D. Girls College,Bank Road,Gorakpur 273001 Gurgaon - KFin Technologies Pvt.

Ltd,No: 212A, 2nd Floor, Vipul Agora,M. G. Road,-,Gurgaon 122001 Gwalior - KFin

Technologies Pvt. Ltd,City Centre,Near Axis Bank,-,Gwalior 474011 Haldwani - KFin

Technologies Pvt. Ltd,Shoop No 5,KMVN Shoping Complex,-,Haldwani 263139 Haridwar -

KFin Technologies Pvt. Ltd,Shop No. - 17,Bhatia Complex,Near Jamuna Palace,Haridwar

249410 Hissar - KFin Technologies Pvt. Ltd,Shop No. 20, Ground Floor,R D City Centre,Railway

Road,Hissar 125001 Jhansi - KFin Technologies Pvt. Ltd,1st Floor, Puja Tower,Near 48

Chambers,ELITE Crossing,Jhansi 284001 Kanpur - KFin Technologies Pvt. Ltd,15/46 B Ground

Floor,Opp : Muir Mills,Civil Lines,Kanpur 208001 Lucknow - KFin Technologies Pvt. Ltd,Ist

Floor,A. A. Complex,5 Park Road Hazratganj Thaper House,Lucknow 226001 Mandi - "KFin


Technologies Pvt. Ltd, House No. 99/11, 3rd Floor,Opposite GSS Boy School,School

Bazar,Mandi 175001" Mathura - KFin Technologies Pvt. Ltd,Shop No. 9, Ground Floor, Vihari

Lal Plaza,Opposite Brijwasi Centrum,Near New Bus Stand,Mathura 281001 Meerut - KFin

Technologies Pvt. Ltd,H No 5,Purva Eran, Opp Syndicate Bank,Hapur Road,Meerut 250002

Mirzapur - KFin Technologies Pvt. Ltd,House No. 404,Ward No. 8,Dankeenganj,

Mirzapur,Mirzapur 231001 Moradabad - KFin Technologies Pvt. Ltd,Chadha Complex,G. M.

D. Road,Near Tadi Khana Chowk,Moradabad 244001 Morena - KFin Technologies Pvt.

Ltd,House No. HIG 959,Near Court,Front of Dr. Lal Lab,Old Housing Board Colony,Morena

476001 Muzaffarpur - KFin Technologies Pvt. Ltd,First Floor Saroj Complex ,Diwam Road,Near

Kalyani Chowk,Muzaffarpur 842001 Noida - KFin Technologies Pvt. Ltd,F-21,2nd Floor,Near

Kalyan Jewelers,Sector-18,Noida 201301 Panipat - KFin Technologies Pvt. Ltd,Preet Tower,

3rd Floor,Near NK Tower,G.T. Road,Panipat 132103 Renukoot - KFin Technologies Pvt.

Ltd,C/o Mallick Medical Store,Bangali Katra Main Road,Dist. Sonebhadra (U.P.),Renukoot

231217 Rewa - KFin Technologies Pvt. Ltd,Shop No. 2, Shree Sai Anmol Complex,Ground

Floor,Opp Teerth Memorial Hospital,Rewa 486001 Rohtak - KFin Technologies Pvt. Ltd,Shop

No 14, Ground Floor,Ashoka Plaza,Delhi Road ,Rohtak 124001 Roorkee - KFin Technologies

Pvt. Ltd,Shree Ashadeep Complex 16,Civil Lines,Near Income Tax Office,Roorkee 247667

Satna - KFin Technologies Pvt. Ltd,Jainam Market,Purana Power House Chauraha,Panni Lal

Chowk,Satna 485001 Shimla - KFin Technologies Pvt. Ltd,1st Floor,Hills View Complex,Near

Tara Hall,Shimla 171001 Shivpuri - KFin Technologies Pvt. Ltd,A. B. Road,In Front of Sawarkar

Park,Near Hotel Vanasthali,Shivpuri 473551 Sitapur - KFin Technologies Pvt. Ltd,12/12 Surya

Complex,Station Road ,Uttar Pradesh,Sitapur 261001 Solan - KFin Technologies Pvt. Ltd,Disha

Complex, 1St Floor,Above Axis Bank,Rajgarh Road,Solan 173212 Sonepat - KFin

Technologies Pvt. Ltd,2nd floor,DP Tower, Model Town,Near Subhash Chowk,Sonepat

131001 Sultanpur - KFin Technologies Pvt. Ltd,1st Floor, Ramashanker Market,Civil Line,-

,Sultanpur 228001 Varanasi - KFin Technologies Pvt. Ltd,D-64/132, 2nd Floor ,KA, Mauza,

Shivpurwa, Settlement Plot No 478 Pargana, Dehat Amanat, Mohalla Sigra,Varanashi

221010 Yamuna Nagar - KFin Technologies Pvt. Ltd,B-V, 185/A, 2nd Floor, Jagadri

Road,,Near DAV Girls College, (UCO Bank Building) Pyara Chowk,-,Yamuna Nagar 135001

Kolhapur - KFin Technologies Pvt. Ltd,605/1/4 E Ward Shahupuri 2Nd Lane,Laxmi Niwas,Near

Sultane Chambers,Kolhapur 416001 Mumbai - KFin Technologies Pvt. Ltd,24/B Raja Bahadur

Compound,Ambalal Doshi Marg,Behind Bse Bldg,Fort 400001 Pune - KFin Technologies Pvt.

Ltd,Office # 207-210, second floor,Kamla Arcade, JM Road. Opposite Balgandharva,Shivaji

Nagar,Pune 411005 Vashi - KFin Technologies Pvt. Ltd,Vashi Plaza,Shop no. 324,C Wing, 1ST

Floor,Sector 17,Vashi Mumbai,400705 Vile Parle - KFin Technologies Pvt. Ltd,Shop No.1

Ground Floor,,Dipti Jyothi Co-operative Housing Society,,Near MTNL office P M Road,,Vile

Parle East,400057 Borivali - KFin Technologies Pvt. Ltd,Gomati SmutiGround Floor,Jambli

Gully,Near Railway Station ,Borivali Mumbai,400 092 Thane - KFin Technologies Pvt. Ltd,Room

No. 302 3rd FloorGanga Prasad,Near RBL Bank Ltd,Ram Maruti Cross RoadNaupada Thane

West ,Mumbai,400602 Ajmer - KFin Technologies Pvt. Ltd,302 3rd Floor,Ajmer Auto

Building,Opposite City Power House,Jaipur Road; Ajmer 305001 Alwar - KFin Technologies

Pvt. Ltd,Office Number 137, First Floor,Jai Complex,Road No-2,Alwar 301001 Amritsar - KFin

Technologies Pvt. Ltd,SCO 5 ,2nd Floor, District Shopping Complex,Ranjit Avenue,Amritsar

143001 Bhatinda - KFin Technologies Pvt. Ltd,MCB -Z-3-01043, 2 floor, GONIANA

ROAD,OPPORITE NIPPON INDIA MF GT ROAD,NEAR HANUMAN CHOWK,Bhatinda 151001

Bhilwara - KFin Technologies Pvt. Ltd,Office No. 14 B, Prem Bhawan,Pur Road, Gandhi

Nagar,Near CanaraBank,Bhilwara 311001 Bikaner - KFin Technologies Pvt. Ltd,70-71 2Nd

Floor | Dr.Chahar Building ,Panchsati Circle,Sadul Ganj ,Bikaner 334003 Chandigarh - KFin

Technologies Pvt. Ltd,First floor, SCO 2469-70,Sec. 22-C,-,Chandigarh 160022Ferozpur - KFin

Technologies Pvt. Ltd,The Mall Road Chawla Bulding Ist Floor,Opp. Centrail Jail,Near

Hanuman Mandir,Ferozepur 152002 Hoshiarpur - KFin Technologies Pvt. Ltd,Unit # SF-6,The

Mall Complex,2nd Floor , Opposite Kapila Hospital,Sutheri Road,Hoshiarpur 146001 Jaipur -

KFin Technologies Pvt. Ltd,Office no 101, 1st Floor,Okay Plus Tower,Next to Kalyan

Jewellers,Government Hostel Circle, Ajmer Road,Jaipur 302001 Jalandhar - KFin

Technologies Pvt. Ltd,Office No 7, 3rd Floor, City Square building,E-H197 Civil Line,Next to

Kalyan Jewellers,Jalandhar 144001 Jammu - KFin Technologies Pvt. Ltd.,304, A-1, 03rd Floor

,North Block, Bahu Plaza, Jammu -180004. Jodhpur - KFin Technologies Pvt. Ltd,Shop No. 6,

GANG TOWER, G Floor,OPPOSITE ARORA MOTER SERVICE CENTRE,NEAR BOMBAY MOTER

CIRCLE,Jodhpur 342003 Karnal - KFin Technologies Pvt. Ltd,18/369Char Chaman,Kunjpura

Road,Behind Miglani Hospital,Karnal 132001 Kota - KFin Technologies Pvt. Ltd,D-8, SHRI RAM

COMPLEX,OPPOSITE MULTI PURPOSE SCHOOL,GUMANPUR,Kota 324007 Ludhiana - KFin

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Axis Asset Management Company Limited (Investment Manager to Axis Mutual Fund)Axis

House, 1st Floor, C-2 Wadia International ,Pandurang Budhkar Marg, Worli, Mumbai -

400025, India.




Axis Dynamic Bond Fund 1

S C H E M E I N F O R M A T I O N D O C U M E N T

AXIS DYNAMIC BOND FUND

An open ended dynamic debt scheme investing across duration



• Optimal returns over medium to long term

• To generate stable returns while maintaining liquidity through active management of a portfolio of

debt and money market instruments.







www.axismf.com





Management Company (AMC). The units being offered for public Subscription have not been approved or


Document.


prospective Investor ought to know before investing. Before investing, Investors should also ascertain about











TABLE OF CONTENTS

HIGHLIGHTS/SUMMARY OF THE SCHEME ............................................................................................ 3

I. INTRODUCTION ......................................................................................................................... 5

A. RISK FACTORS .................................................................................................................................. 5

i. Standard Risk Factors: .............................................................................................................. 5

ii. Scheme Specific Risk Factors .................................................................................................. 5

B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME ........................................................ 9

C. SPECIAL CONSIDERATIONS, if any ............................................................................................... 9

D. DEFINITIONS ................................................................................................................................... 10

E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY .................................................... 15

II. INFORMATION ABOUT THE SCHEME ...................................................................................... 16

A. TYPE OF THE SCHEME ................................................................................................................... 16

B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? ........................................................ 16

C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? ...................................................................... 16

D. WHERE WILL THE SCHEME INVEST? ............................................................................................. 34

E. WHAT ARE THE INVESTMENT STRATEGIES? ................................................................................ 40

F. FUNDAMENTAL ATTRIBUTES ......................................................................................................... 46

G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? ................................................. 46

H. WHO MANAGES THE SCHEME? ................................................................................................. 47

I. WHAT ARE THE INVESTMENT RESTRICTIONS? ............................................................................ 48

J. CREATION OF SEGREGATED PORTFOLIO ................................................................................. 53

K. HOW HAS THE SCHEME PERFORMED? ...................................................................................... 57

L. INVESTMENTS BY THE AMC .......................................................................................................... 58

M. ADDITIONAL SCHEME RELATED DISCLOSURES ........................................................................ 58

III. UNITS AND OFFER .................................................................................................................... 60

A. NEW FUND OFFER (NFO) ............................................................................................................. 60

B. ONGOING OFFER DETAILS .......................................................................................................... 70

C. PERIODIC DISCLOSURES ............................................................................................................ 105

D. COMPUTATION OF NAV ............................................................................................................ 109

IV. FEES AND EXPENSES .............................................................................................................. 110

A. NEW FUND OFFER (NFO) EXPENSES ......................................................................................... 110

B. ANNUAL SCHEME RECURRING EXPENSES .............................................................................. 110

C. LOAD STRUCTURE ....................................................................................................................... 113

D. WAIVER OF LOAD FOR DIRECT APPLICATIONS ..................................................................... 115

V. RIGHTS OF UNITHOLDERS ...................................................................................................... 116


INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING

TAKEN BY ANY REGULATORY AUTHORITY ....................................................................................... 117




The scheme will endeavor to generate optimal returns while maintaining liquidity through

active management of a portfolio of debt and money market instruments.

Liquidity

The Scheme offers Units for Subscription and Redemption at NAV based prices on all Business

Days. Under normal circumstances the AMC shall dispatch the redemption proceeds within 10

business days from the date of receipt of request from the Unit holder.

Benchmark

Nifty Composite Debt index


Plans

Axis Dynamic Bond Fund – Regular Plan

Axis Dynamic Bond Fund – Direct Plan

Each plan offers the following options:

Growth option

Dividend option

Options Sub-options

Growth Nil

Dividend Quarterly(payout and reinvestment)

Half yearly(payout and reinvestment)

Direct Plan




All categories of investors (whether existing or new Unitholders) as permitted under the Scheme

Information Document of the Scheme are eligible to subscribe under Direct Plan. Investments

under Direct Plan can be made through various modes offered by the Fund for investing

directly with the Fund {except Platform(s) where investors’ applications for subscription of units

are routed through Distributors}.


Minimum Application Amount




Minimum application amount is applicable only at the time of creation of new folio. and at the


Loads


Exit Load: Nil

SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 has decided that

there shall be no entry Load for all Mutual Fund schemes.




The AMC will calculate and disclose the NAVs on all Business Days. The AMC shall update the

NAVs on its website (www.axismf.com) and of the Association of Mutual Funds in India - AMFI

(www.amfiindia.com) before 11.00 p.m. on every Business Day. If the NAVs are not available

before the commencement of Business Hours on the following day due to any reason, the

Mutual Fund shall issue a press release giving reasons and explaining when the Mutual Fund

would be able to publish the NAV.

The AMC will disclose the portfolio of the Scheme (alongwith ISIN) on fortnightly and half yearly

basis on the website of the Mutual Fund and AMFI within 5 days of every fortnight and within 10

days from the close of each half year (i.e. 31st March and 30th September) respectively in a

user-friendly and downloadable spreadsheet format. Further, AMC shall publish an

advertisement, in an all India edition of one national English daily newspaper and in one Hindi

newspaper, every half year disclosing the hosting of the half-yearly statement of its schemes

portfolio on the website of the Mutual Fund and AMFI and the modes through which unitholder

can submit a request for a physical or electronic copy of the statement of scheme portfolios.

The AMC will also provide a dashboard, in a comparable, downloadable (spreadsheet) and

machine readable format, providing performance and key disclosures like Scheme’s AUM,

investment objective, expense ratios, portfolio details, scheme’s past performance etc. on its

website.

The AMC will make available the Annual Report of the Scheme within four months of the end

of the financial year on its website and on the website of AMFI along with a link.




I. INTRODUCTION

A. RISK FACTORS


Investment in mutual fund units involves investment risks such as trading volumes, settlement

risk, liquidity risk, default risk including the possible loss of principal.

As the price / value / interest rates of the securities in which the Scheme invests fluctuates,

the value of your investment in the Scheme may go up or down.



Axis Dynamic Bond Fund is the name of the Scheme and does not in any manner indicate

either the quality of the Scheme or its future prospects and returns.


Scheme beyond the initial contribution of Rs. 1 lakh made by it towards setting up the Fund.

Axis Dynamic Bond Fund is not a guaranteed or assured return scheme.



Interest-Rate Risk: Fixed income securities such as government bonds, corporate bonds, money

market instruments and derivatives 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 depends upon the coupon and maturity of the

security. It also depends upon the yield level at which the security is being traded.


rates prevailing on the coupon payment or maturity dates may differ from the original coupon

of the bond.

Basis Risk: The underlying benchmark of a floating rate security or a swap might become less

active or may cease to exist and thus may not be able to capture the exact interest rate

movements, leading to loss of value of the portfolio.

Spread Risk: In a floating rate security the coupon is expressed in terms of a spread or mark up

over the benchmark rate. In the life of the security this spread may move adversely leading to

loss in value of the portfolio. The yield of the underlying benchmark might not change, but the

spread of the security over the underlying benchmark might increase leading to loss in value of

the security.

Liquidity Risk: The liquidity of a bond may change, depending on market conditions leading to

changes in the liquidity premium attached to the price of the bond. At the time of selling the

security, the security can become illiquid, leading to loss in value of the portfolio.

Liquidity Risk on account of unlisted securities: The liquidity and valuation of the Schemes’

investments due to their holdings of unlisted securities may be affected if they have to be sold

prior to their target date of divestment. The unlisted security can go down in value before the

divestment date and selling of these securities before the divestment date can lead to losses in

the portfolio.

Credit Risk: This is the risk associated with the issuer of a debenture/bond or a money market

instrument defaulting on coupon payments or in paying back the principal amount on

maturity. Even when there is no default, the price of a security may change with expected

changes in the credit rating of the issuer. It is to be noted here that a Government Security is a

sovereign security and is the safest. Corporate bonds carry a higher amount of credit risk than

Government Securities. Within corporate bonds also there are different levels of safety and a

bond rated higher by a particular rating agency is safer than a bond rated lower by the same

rating agency.




movements in NAV


The Scheme may invest in domestic securitized debt such as Asset Backed Securities (ABS) or

Mortgage Backed Securities (MBS). ABS are securitized debts where the underlying assets are

receivables arising from various loans including automobile loans, personal loans, loans against

consumer durables, etc. MBS are securitized debts where the underlying assets are receivables

arising from loans backed by mortgage of residential / commercial properties.





4. Personal Loans

5. Corporate Loans



classes, but repossession becomes difficult. On the other hand, repossession and subsequent

recovery of commercial vehicles and other auto assets is fairly easier and better compared to

mortgages. Asset classes like personal loans, credit card receivables are unsecured and in an

economic downturn may witness higher default. A corporate loan/receivable, depend upon

the nature of the underlying security for the loan or the nature of the receivable and the risks

correspondingly fluctuate.

The rating agencies define margins, over collateralisation and guarantees to bring risk in line

with similar AAA rated securities. The factors typically analyzed for any pool are as follows:


loan and the average ticket size of the loan. A very low ticket size might mean more costs

in originating and servicing of the assets.

b. Diversification: Diversification across geographical boundaries and ticket sizes might result

in lower delinquency


own equity. The lower this value the better it is. This suggests that where the borrowers own

contribution of the asset cost is high; the chances of default are lower.




Prepayment Risk: This arises when the borrower pays off the loan sooner than expected. When

interest rates decline, borrowers tend to pay off high interest loans with money borrowed at a

lower interest rate, which shortens the average maturity of ABS. However, there is some

prepayment risk even if interest rates rise, such as when an owner pays off a mortgage when

the house is sold or an auto loan is paid off when the car is sold.



lower rate.

Risks associated with investments in Derivatives

Credit Risk: The credit risk is the risk that the counter party will default in it’s obligations and is

generally small as in a Derivative transaction there is generally no exchange of the principal

amount.



interest rates.

Basis Risk: When a bond is hedged using a Derivative, the change in price of the bond and the

change in price of the Derivative may not be fully correlated leading to basis risk in the

portfolio.

Liquidity risk: During the life of the Derivative, the benchmark might become illiquid and might

not be fully capturing the interest rate changes in the market, or the selling, unwinding prices

might not reflect the underlying assets, rates and indices, leading to loss of value of the

portfolio.

Model Risk: The risk of mis–pricing or improper valuation of Derivatives.

Trade Execution: Risk where the final execution price is different from the screen price leading

to dilution in the spreads and hence impacting the profitability of the reverse arbitrage

strategy.

Systemic Risk: For Derivatives, especially OTC ones the failure of one Counter Party can put the

whole system at risk and the whole system can come to a halt.

Derivative products are leveraged instruments and can provide disproportionate gains as well

as disproportionate losses to the Investor. Execution of strategies depends upon the ability of

the fund manager to identify such opportunities. Identification and execution of the strategies

to be pursued by the fund manager involve uncertainty and decision of fund manager may

not always be profitable. No assurance can be given that the fund manager will be able to

identify or execute such strategies.

The risks associated with the use of Derivatives are different from or possibly greater than, the

risks associated with investing directly in securities and other traditional investments.


The Scheme may be exposed to counter party risk in case of repo lending transactions in the

event of the counterparty failing to honour the repurchase agreement. However in repo

transactions, the collateral may be sold and a loss is realized only if the sale price is less than

the repo amount. The risk is further mitigated through over-collateralization (the value of the

collateral being more than the repo amount).


1. Investor holding units of segregated portfolio may not able to liquidate their holding till the

time recovery of money from the issuer.


3. Listing of units of segregated portfolio on recognised stock exchange does not necessarily

guarantee their liquidity. There may not be active trading of units in the stock market.

Further trading price of units on the stock market may be significantly lower than the

prevailing NAV.





quality or guarantees provided or any other asset provided as security acceptable to lenders.



ability of the fund to enforce collateral and recover capital and interest obligations. Also there

is a possibility of guarantor going insolvent which also can impact the recovery value of

exposure. In case of credit enhanced structures backed by equity share the liquidity of the

underlying shares may be low leading to a lower recovery and a higher impact cost of







equivalent securities of the same type or class at the end of the specified period along with the

corporate benefits accruing on the securities borrowed. There are risks inherent in securities

lending, including the risk of failure of the other party, in this case the approved intermediary to

comply with the terms of the agreement. Such failure can result in a possible loss of rights to the

collateral, the inability of the approved intermediary to return the securities deposited by the

lender and the possible loss of corporate benefits accruing thereon.

Short-selling is the sale of shares or securities that the seller does not own at the time of trading.

Instead, he borrows it from someone who already owns it. Later, the short seller buys back the

stock/security he shorted and returns the stock/security to the lender to close out the loan. The

inherent risks are Counterparty risk and liquidity risk of the stock/security being borrowed. The

security being short sold might be illiquid or become illiquid and covering of the security might

occur at a much higher price level than anticipated, leading to losses.



redemption of Units on any Business Day will depend upon the order processing / settlement by

BSE and / or NSE and their respective clearing corporations on which the scheme has no

control.

Risk Associated with investment in Foreign Securities

Subject to necessary approvals, the Scheme may also invest in overseas financial assets as

permitted under the applicable regulations. The value of an investment in a foreign issuer’s

securities may depend on general global economic factors or specific economic and political

factors relating to the country or countries in which the foreign issuer operates. To the extent

the assets of the Scheme are invested in overseas financial assets, there may be risk associated

with fluctuation in foreign exchange rates, restriction on repatriation of capital and earnings

under the exchange control regulations and transaction procedure in overseas market. The

repatriation of capital to India may also be hampered by changes in regulations concerning

exchange controls, political circumstances, bi-lateral conflicts or prevalent tax laws. Since the

Scheme would invest only partially in foreign securities, there may not be readily available and

widely accepted benchmarks to measure performance of such Scheme. To manage risks

associated with foreign currency and interest rate exposure, the scheme may use derivatives

for efficient portfolio management and hedging and portfolio rebalancing and in accordance

with conditions as may be stipulated under the Regulations and by RBI from time to time.

Investment in foreign securities carries currency risk. Currency risk is a form of risk that arises from

the change in price of one currency against other. The exchange risk associated with a foreign

denominated instrument is a key element in foreign investment. This risk flows from differential

monetary policy and growth in real productivity, which results in differential inflation rates. The

risk arises because currencies may move in relation to each other.

It may also be noted that active management of the portfolio may sometimes result in under-

performance in the short term. However, the fund manager will endeavour to identify

opportunities on a consistent basis and will strive to achieve the investment objective of the

scheme.

Risk Factors Associated with Investments in REITs and InvITS:

Price-Risk or Interest-Rate Risk: REITs & InvITs run price-risk or interest-rate risk. Generally,

when interest rates rise, prices of existing 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. REITs & InvITs are likely to have volatile cash flows as the repayment

dates would not necessarily be pre scheduled.

Liquidity or Marketability Risk: This refers to the ease with which a security can be sold at or

near to its valuation yield-to-maturity (YTM). The primary measure of liquidity risk is the

spread between the bid price and the offer price quoted by a dealer. As these products

are new to the market they are likely to be exposed to liquidity risk.

Reinvestment Risk: Investments in REITs & InvITs may carry reinvestment 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.

Risk of lower than expected distributions: The distributions by the REIT or InvIT will be based

on the net cash flows available for distribution. The amount of cash available for distribution

principally depends upon the amount of cash that the REIT/ InvITs receives as dividends or

the interest and principal payments from portfolio assets.

The above are some of the common risks associated with investments in REITs & InvITs. There

can be no assurance that investment objectives will be achieved, or that there will be no loss

of capital. Investment results may vary substantially on a monthly, quarterly or annual basis.


The Scheme shall have a minimum of 20 Investors and no single Investor shall account for more

than 25% of the corpus of the Scheme. The aforesaid conditions should be complied with in

each calendar quarter on an average basis. In case the Scheme does not have a minimum of

20 Investors on an ongoing basis for each calendar quarter, the provisions of Regulation

39(2)(c) of the SEBI (MF) Regulations would become applicable automatically without any

reference from SEBI and accordingly the Scheme shall be wound up and the units would be

redeemed at Applicable NAV. If there is a breach of the 25% limit by any Investor over the

quarter, a rebalancing period of one month would be allowed and thereafter the Investor who

is in breach of the rule shall be given 15 days’ notice to redeem his exposure over the 25% limit.

Failure on the part of the said investor to redeem his exposure over the 25% limit within the

aforesaid 15 days would lead to automatic Redemption by the Mutual Fund at the Applicable

NAV on the 15th day of the notice period. The scheme shall adhere to the requirements

prescribed by SEBI from time to time in this regard.


Prospective investors should study this Scheme Information Document and Statement of

Additional Information carefully in its entirety and should not construe the contents hereof

as advise relating to legal, taxation, financial, investment or any other matters and are

advised to consult their legal, tax, financial and other professional advisors to determine

possible legal, tax, financial or other considerations of subscribing to or redeeming Units,

before making a decision to invest/redeem/hold Units.

The Scheme related documents i.e. SID/ KIM/ SAI or the units of the Fund are not registered

in any jurisdiction including the United States of America nor in any provincial/ territorial

jurisdiction in Canada. The distribution of the Scheme related document in certain

jurisdictions may be restricted or subject to registration requirements and, accordingly,

persons who come into possession of the Scheme related documents are required to

inform themselves about, and to observe any such restrictions. No persons receiving a copy

of this Scheme related documents or any accompanying application form in such

jurisdiction may treat these Scheme related documents or such application form as

constituting an invitation to them to subscribe for units, nor should they in any event use any

such application form, unless in the relevant jurisdiction such an invitation could lawfully be

made to them and such application form could lawfully be used without compliance with

any registration or other legal requirements. Accordingly the Scheme related documents

do not constitute an offer or solicitation by anyone in any jurisdiction in which such offer or


solicitation is not lawful or in which the person making such offer or solicitation is not

qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation as

per applicable law.

The AMC, Trustee or the Mutual Fund have not authorized any person to issue any


written, other than that contained in this Scheme Information Document or the Statement

of Additional Information or as is provided by the AMC in connection with this offering.

Prospective Investors are advised not to rely upon any information or representation not

incorporated in the Scheme Information Document or Statement of Additional Information

or as provided by the AMC as having been authorized by the Mutual Fund, the AMC or the

Trustee.

Redemption due to change in the fundamental attributes of the Scheme or due to

any other reasons may entail tax consequences. The Trustee, AMC, Mutual Fund, their


arise due to such redemptions.

The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for

any of the tax consequences that may arise, in the event that the Scheme is wound up for

the reasons and in the manner provided in Statement of Additional Information.


Additional Information are as available under the present taxation laws and are available

subject to relevant conditions. The information given is included only for general purpose

and is based on advise received by the AMC regarding the law and practice currently in

force in India as on the date of this Scheme Information Document and the Unit holders

should be aware that the relevant fiscal rules or their interpretation may change. As is the

case with any investment, there can be no guarantee that the tax position or the proposed

tax position prevailing at the time of an investment in the Scheme will endure indefinitely. In

view of the individual nature of tax consequences, each Unit holder is advised to consult his

/ her own professional tax advisor.

The Mutual Fund may disclose details of the investor’s account and transactions there

under to those intermediaries whose stamp appears on the application form or who have

been designated as such by the investor. In addition, the Mutual Fund may disclose such

details to the bankers, as may be necessary for the purpose of effecting payments to the

investor. The Fund may also disclose such details to regulatory and statutory

authorities/bodies as may be required or necessary.


companies make substantial investment, either directly or indirectly in the Scheme,

Redemption of units by these entities may have an adverse impact on the performance of

the Scheme. This may also affect the ability of the other Unit holders to redeem their units.

As the liquidity of the Scheme’s investments may sometimes be restricted by trading

volumes and settlement periods, the time taken by the Fund for Redemption of Units may

be significant in the event of an inordinately large number of Redemption requests or of a

restructuring of the Scheme’s portfolio. In view of this, the AMC / Trustee has the right to limit

Redemptions under certain circumstances - please refer to the paragraph

“Suspension/Restriction on Redemption of Units of the Scheme”.

Pursuant tothe provisions of Prevention of Money Laundering Act, 2002, if after due

diligence, the AMC believes that any transaction is suspicious in nature as regards money

laundering, on failure to provide required documentation, information, etc. by the unit

holder the AMC shall have absolute discretion to report such suspicious transactions to FIU-

IND and / or to freeze the folios of the investor(s), reject any application(s)/redemptions /

allotment of Units.

D. DEFINITIONS

"AMC" / "Asset

Management

Company" /

"Investment

Manager"

Axis Asset Management Company Ltd., incorporated under the provisions

of the Companies Act, 1956 and approved by Securities and Exchange

Board of India to act as the Asset Management Company for the

scheme(s) of Axis Mutual Fund.



based on the time of the Business Day on which the application is time

stamped.



(ii) A day on which the banks in Mumbai and /or RBI are closed for

business /clearing;

(iii) A day on which the National Stock Exchange of India Ltd. and/or BSE

Ltd., Mumbai are closed;

(iv) A day which is a public and /or bank Holiday at an Investor Service

Centre/Official Point of Acceptance where the application is

received;

(v) A day on which Sale / Redemption / Switching of Units is suspended by

the AMC;

(vi) A day on which normal business cannot be transacted due to storms,

floods, bandhs, strikes or such other events as the AMC may specify

from time to time.

Further, the day(s) on which the money markets and/or debt markets are

closed / not accessible, shall not be treated as Business Day(s).



Acceptance.

"Business Hours" Presently 9.30 a.m. to 5.30 p.m. on any Business Day or such other time as

may be applicable from time to time.

"Custodian" A person who has been granted a certificate of registration to carry on the

business of custodian of securities under the Securities and Exchange

Board of India (Custodian of Securities) Regulations 1996, which for the

time being is Deutsche Bank AG.

"Deed of Trust" The Deed of Trust dated June 27, 2009 made by and between Axis Bank

Ltd. and Axis Mutual Fund Trustee Ltd. thereby establishing an irrevocable

trust, called Axis Mutual Fund.


"Derivative" Derivative includes (i) a security derived from a debt instrument, share,

loan whether secured or unsecured, risk instrument or contract for

differences or any other form of security; (ii) a contract which derives its

value from the prices, or index of prices, or underlying securities.


“Dividend Sweep


Facility given to the Unit holders to automatically invest the dividend by

eligible source scheme into eligible target scheme of the Mutual Fund.

"Exit Load" Load on Redemption / Switch out of Units.



A person who satisfies the eligibility criteria prescribed under regulation 4 of

SEBI (Foreign Portfolio Investors) Regulations, 2014 and has been registered

under Chapter II of these regulations, which shall be deemed to be an

intermediary in terms of the provisions of the Act.

"Floating Rate

Debt Instruments"

Floating rate debt instruments are debt securities issued by Central and /

or State Government, corporates or PSUs with interest rates that are reset

periodically. The periodicity of the interest reset could be daily, monthly,

quarterly, half-yearly, annually or any other periodicity that may be

mutually agreed with the issuer and the Fund. The interest on the

instruments could also be in the nature of fixed basis points over the

benchmark gilt yields.

“Foreign

Securities”

ADRs / GDRs/ equity / debt securities of overseas companies listed on the

recognized stock exchanges overseas/ or such other related securities as

may be specified by SEBI and/or RBI from time to time.

"Gilts" / Securities created and issued by the Central Government and/or a State


"Government

Securities"

Government (including Treasury Bills) or Government Securities as defined

in the Public Debt Act, 1944, as amended or re-enacted from time to time.


“Holiday” Holiday means the day(s) on which the banks (including the Reserve Bank

of India) are closed for business or clearing in Mumbai or their functioning is

affected due to a strike / bandh call made at any part of the country or

due to any other reason.

"Investment

Management

Agreement"

The agreement dated June 27, 2009 entered into between Axis Mutual

Fund Trustee Ltd. and Axis Asset Management Company Ltd., as amended

from time to time.

Infrastructure

Investment Trust”

/ “InvIT

InvIT shall have the meaning assigned in clause (za) of sub-regulation (1) of

regulation 2 of the Securities and Exchange Board of India (Infrastructure

Investment Trusts) Regulations, 2014.

"Investor Service

Centres" / "ISCs"

Offices of Axis Asset Management Company Ltd. or such other centres /

offices as may be designated by the AMC from time to time.


deducted from the Applicable NAV on the Redemption / Switch out (Exit

Load) and in the case of Sale / Switch in of a Unit, a sum of money to be

paid by the prospective investor on the Sale / Switch in of a Unit (Entry

Load) in addition to the Applicable NAV.


"Money Market

Instruments"

Includes commercial papers, commercial bills, treasury bills, Government

securities having an unexpired maturity upto one year, call or notice

money, certificate of deposit, usance bills and any other like instruments as

specified by the Reserve Bank of India from time to time.

"Mutual Fund" /

"the Fund"

Axis Mutual Fund, a trust set up under the provisions of the Indian Trusts Act,

1882.

"Net Asset Value"

/ "NAV"


described in this Scheme Information Document or as may be prescribed

by the SEBI (MF) Regulations from time to time.

"NRI" A Non-Resident Indian or a Person of Indian Origin residing outside India.

"Official Points of

Acceptance"

Places as specified by AMC from time to time where application for

Subscription / Redemption / Switch will be accepted on ongoing basis.

“Overseas Citizen


Means a person registered as an Overseas Citizen of India Cardholder by

the Central Government under section 7A of The Citizenship Act, 1955.

"Person of Indian

Origin"

A citizen of any country other than Bangladesh or Pakistan, if (a) he at any

time held an Indian passport; or (b) he or either of his parents or any of his

grandparents was a citizen of India by virtue of Constitution of India or the

Citizenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian

citizen or person referred to in sub-clause (a) or (b).

"Rating" Rating means an opinion regarding securities, expressed in the form of

standard symbols or in any other standardized manner, assigned by a

credit rating agency and used by the issuer of such securities, to comply

with any requirement of the SEBI (Credit Rating Agencies) Regulations,

1999.

"RBI" Reserve Bank of India, established under the Reserve Bank of India Act,

1934, (2 of 1934)

Real Estate

Investment Trust”

/ “REIT

REIT shall have the meaning assigned in clause (zm) of sub-regulation 1 of

regulation 2 of the Securities and Exchange Board of India (Real Estate

Investment Trusts) Regulations, 2014.

"Registrar and

Transfer Agent" /

“Registrar”

KFin Technologies Pvt. Ltd., Hyderabad, currently acting as registrar to the

Scheme, or any other Registrar appointed by the AMC from time to time.

"Redemption /

Repurchase"



“Regulatory

Agency”

GOI, SEBI, RBI or any other authority or agency entitled to issue or give any

directions, instructions or guidelines to the Mutual Fund

“Repo” Sale/Purchase of Securities with simultaneous agreement to repurchase /

resell them at a later date.

"Statement of

Additional

Information" /

"SAI"

The document issued by Axis Mutual Fund containing details of Axis Mutual

Fund, its constitution, and certain tax, legal and general information. SAI is

legally a part of the Scheme Information Document.

"Sale /

Subscription"



"Scheme" Axis Dynamic Bond Fund

“Scheme

Information

Document”

This document issued by Axis Mutual Fund, offering for Subscription of Units

of Axis Dynamic Bond Fund (including Options there under)

"SEBI" Securities and Exchange Board of India, established under the Securities

and Exchange Board of India Act, 1992.

"SEBI (MF)

Regulations" /

"Regulations"

Securities and Exchange Board of India (Mutual Funds) Regulations, 1996,

as amended from time to time.

"Short Selling" Short selling means selling a stock which the seller does not own at the

time of trade.


"Switch" Redemption of a unit in any scheme (including the options therein) of the

Mutual Fund against purchase of a unit in another scheme (including the

options therein) of the Mutual Fund, subject to completion of Lock-in

Period, if any.

"Stock Lending" Lending of securities to another person or entity for a fixed period of time,

at a negotiated compensation in order to enhance returns of the portfolio.

“Sleep in Peace”/

“SIP”

Sleep in Peace/SIP is a systematic investment plan enabling investors to

save and invest in the Scheme on a periodic basis submitting post dated

cheques / payment instructions.

“Systematic

Transfer Plan” /

“STP”

Facility given to the Unit holders to transfer sums on periodic basis from one

scheme to another schemes launched by the Mutual Fund from time to

time by giving a single instruction.

“Systematic

Withdrawal Plan”

/ “SWP”

Facility given to the Unit holders to withdraw a specified sum of money

monthly/quarterly/ half yearly/ annually from his investment in the Scheme.

“Tri Party Repos” Tri-party repo means a repo contract where a third entity (apart from the

borrower and lender), called a Tri-Party Agent, acts as an intermediary

between the two parties to the repo to facilitate services like collateral

selection, payment and settlement, custody and management during the

life of the transaction.

“Trustee” /

“Trustee

Company”

Axis Mutual Fund Trustee Ltd., incorporated under the provisions of the

Companies Act, 1956 and approved by SEBI to act as the Trustee to the

Schemes of the Mutual Fund.

"Unit" The interest of the Unit holder which consists of each Unit representing one

undivided share in the assets of the Scheme.

"Unit holder" /

"Investor"


INTERPRETATION

For all purposes of this Scheme Information Document, except as otherwise expressly provided

or unless the context otherwise requires:

all references to the masculine shall include the feminine and all references, to the singular

shall include the plural and vice-versa.


all references to "dollars" or "$" refer to United States Dollars and "Rs" refer to Indian Rupees.

A "crore" means "ten million" and a "lakh" means a "hundred thousand".


References to a day are to a calendar day including a non Business Day.





(Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time

to time.

(ii) All legal requirements connected with the launching of the Scheme as also the guidelines,

instructions, etc., issued by the Government and any other competent authority in this

behalf, have been duly complied with.

(iii) The disclosures made in the Scheme Information Document are true, fair and adequate to

enable the investors to make a well informed decision regarding investment in the Scheme.









An open ended dynamic debt scheme investing across duration


The scheme will endeavor to generate optimal returns while maintaining liquidity through

active management of a portfolio of debt and money market instruments.


Under normal circumstances the asset allocation will be:


(% of net assets)

Risk Profile

Minimum Maximum Low/ Medium/

High

Debt instruments* including GSecs and

corporate debt

0% 100% Low to Medium

Money market instruments 0% 100% Low


*includes securitized debt up to 30% of the net assets of the Scheme.

The cumulative gross exposure through debt, units issued by REITs & InvITs and derivative

positions should not exceed 100% of the net assets of the Scheme in accordance with SEBI

Cir/IMD/DF/11/2010 dated August 18, 2010.

Investments in derivatives shall be up to 75% of the net assets of the Scheme. Investment in

derivatives shall be for hedging, portfolio balancing and such other purposes as maybe

permitted from time to time.

The Scheme can invest up to 50% of net assets in Foreign Securities.

The total exposure in a particular sector (excluding investments in Bank CDs, CBLO,


rated securities issued by Public Financial Institutions and Public Sector Banks) shall not exceed

20% of the net assets of the Scheme. Provided that an additional exposure to financial services

sector (over and above the limit of 20%) not exceeding 10% of the net assets of the Scheme

shall be allowed by way of increase in exposure to Housing Finance Companies (HFCs) only.

Provided further that the additional exposure to such securities issued by HFCs are rated AA

and above and these HFCs are registered with National Housing Bank (NHB) and the total

Investment/exposure in HFCs shall not exceed 20% of the net assets of the Scheme. Further, an

additional exposure of 5% of the net assets of the scheme has been allowed for investments in

securitized debt instruments based on retail housing loan portfolio and/or affordable housing

loan portfolio.

In terms of SEBI circular no. CIR/IMD/DF/05/2014 dated March 24, 2014, since the investments in

short term deposits of scheduled commercial banks is allowed, pending deployment of funds

of a scheme shall also be excluded while calculating sector exposure.

Pending deployment of the funds in securities in terms of investment objective of the Scheme,

the AMC may park the funds of the Scheme in short term deposits of the Scheduled

Commercial Banks, subject to the guidelines issued by SEBI vide its circular dated April 16, 2007,

as may be amended from time to time.


relating to Short Selling and securities lending and borrowing specified by SEBI. The Scheme

may also engage in Securities Lending. The Scheme shall not deploy more than 20% of its net


assets in securities lending and not more than 5% of the net assets of the Scheme will be

deployed in securities lending to any single counterparty.


Markets Instruments. The Scheme may also invest in units of debt and liquid mutual fund

schemes. The portfolio may hold cash depending on the market condition. The fund manager

can use Derivative instruments to protect the downside risk.

The portfolio duration will be managed dynamically according to the expected movement in

interest rates. Liquidity conditions and other macro-economic factors affecting interest rates

shall be taken into account for varying the portfolio duration. The Scheme may review the

above pattern of investments based on views on interest rates and asset liability management

needs.

The Fund Manager would decide on the appropriate asset allocation for the Scheme

depending on market conditions. In bullish conditions the exposure to debt instruments with

maturity over one year maybe be increased and in bearish conditions the exposure to debt

instruments with maturity over one year maybe be reduced to a minimum thus providing an

effective hedge against adverse movements. At all times the portfolio will adhere to the overall

investment objectives of the Scheme. Subject to the SEBI Regulations, the asset allocation

pattern indicated above may change from time to time, keeping in view market conditions,

market opportunities, applicable regulations and political and economic factors. It must be

clearly understood that the percentages stated above are only indicative and not absolute.

These proportions can vary substantially depending upon the perception of the fund manager;

the intention being at all times to seek to protect the interests of the Unit holders. Changes in

the investment pattern will be for short term and for defensive considerations. In case of

deviation, the portfolio would be rebalanced within 1 month from the date of deviation. In

case the same is not aligned to the above asset allocation pattern within 1 month, justification

shall be provided to the Investment Review Committee and reasons for the same shall be

recorded in writing. The Investment Review Committee shall then decide on the course of

action.

Axis Dynamic Bond Fund, an open ended dynamic debt scheme investing across duration is a

different scheme offered by Axis Mutual Fund and is not a minor modification of any other

existing scheme/product of Axis Mutual Fund.


Differentiation of Axis Dynamic Bond Fund with other existing debt schemes of Axis Mutual Fund –

The investment objective of this scheme is to maximize risk adjusted returns to the investor through an active management of the portfolio, by

elongating the duration of the portfolio in a falling interest rate scenario and reducing the duration at a time when interest rates are moving up.



Name of

the existing

scheme





No. of

Folios

Axis Short

Term Fund

Instruments

Indicative


assets)

Risk

Profile

(Low/

Medium/

High) Minimu

m

Maximu

m

Debt and

Money Market

instruments

0 100 Low to

Medium

Units issued by

REITs & InvITs 0 10

Medium

to high







market instruments.



















An open ended

short term debt

scheme

investing in

instruments such

that the

Macaulay

duration of the

portfolio is

between 1 year

to 3 years

12,286.

10

56,988




Axis

Treasury

Advantag

e Fund

Instruments


(% of net assets)

Risk

Profile

Minimum Maximu

m

Low/Me

dium/Hi

gh

Debt & Money

Market

Instruments

0 100 Low to

Mediu

m











liquidity.

Investment Strategy










liquidity.












An open ended

low duration

debt scheme

investing in

instruments such

that the

Macaulay

duration of the

portfolio is

between 6 to 12

months

8,817.1

9

42,347









mentioned above.

Axis

Dynamic

Bond Fund

Instruments

Indicative

Allocation (% of

net assets)

Risk

Profile

Minimu

m

Maximu

m

Low/

Medium

/

High

Debt

instruments

including G-

Secs and

corporate debt

0% 100% Low to

Medium

Money market

instruments

0% 100% Low

Units issued by

REITs & InvITs

0 10 Medium

to High







Investment Strategy













moving up.








An open ended

dynamic debt

scheme

investing across

duration

1,183.4

7

12,413








Axis Gilt

Fund

Instruments

Indicative

Allocation

(% of net

assets)

Risk Profile

(Low/

Medium/

High)

Government

Securities and

Treasury Bills

80-100 Sovereign

Debt & Money


Low to

Medium







Investment Strategy






An open ended

debt scheme

investing in

government

securities across

maturity

153.24 5,280


















permitted by RBI.




















the fund manager.









Axis

Strategic

Bond Fund


(% of net assets)

Risk

Profile

Minimu

m

Maximu

m

Debt and Money

Market instruments

0 100 Low to

Mediu

m

Units issued by

REITs & InvITs

0 10 Mediu

m to

High







instruments.






medium term.













An open ended

medium term

debt scheme

investing in

instruments such

that the

Macaulay

duration of the

portfolio is

between 3 years

to 4 years

942.33 9,259






curve).

Axis Credit

Risk Fund

Instruments

Indicative

Allocation

(% of net assets)

Risk

Profile

Minimu

m Maximum

High/

Mediu

m/Low

Corporate Debt

rated AA and

below

65% 100% Low to

Mediu

m

Other Debt &

Money Market

instruments

0% 35% Low to

Mediu

m

Units issued by

REITs & InvITs

0% 10% Mediu

m to

High





credit spectrum.

















levels of risk.





An open ended

debt scheme

predominantly

investing in AA

and below

rated corporate

bonds

(excluding AA+

rated corporate

bonds)

556.71 8,066














curve).









decided.

Axis

Banking &

PSU Debt

Fund

Instruments




um /High)

Debt &

Money

Market

Instruments

issued by

Banks,

Public

Financial

Institutions

(PFIs) and

80 100 Low to

Medium















An open ended

debt scheme

predominantly

investing in debt

instruments of

banks, Public

Sector

Undertakings &

Public

Financial

Institutions.

18,601.

66

57,600


Public

Sector

Undertakin

gs (PSUs)

Debt

(including

governmen

t securities)

and Money

Market

Instruments

issued by

entities

other than

Banks, PFIs

and PSUs

0 20 Low















and equivalent.












of the issuer.

Axis

Corporate

Debt Fund


(% of net assets)

Risk

Profile

Minimu

m

Maximu

m

Corporate Debt

rated AA and

80% 100% Low to

Mediu




investing in corporate debt.




An open ended

debt scheme

predominantly

investing in AA+

and above

rated corporate

bonds

2,399.3

7

8,857


above m

Other Debt &

Money Market

Instruments

0% 20% Low

Units issued by

REITs & InvITs

0% 10% Mediu

m to

High













































Axis Liquid

Fund

Instruments

Indicative


assets)

Risk

Profile

Minimu

m

Maximu

m

Low/

Medium

/ High

Money market

instruments

(including cash,

repo, CPs, CDs,

Treasury Bills and

Government

securities) with

maturity/residual

maturity up to 91

days

50 100 Low

Debt instruments

(including

floating rate debt

instruments and

securitized debt)

with maturity

/residual

maturity/

weighted

0 50 Low to

medium






and debt securities.




















An Open ended

Liquid Scheme

26,508.

84

1,50,7

84


average maturity

up to 91 days









assets.















markets.














Axis Ultra

Short Term

Fund


Allocation

(% of net assets)

Risk Profile

Minimu

m

Maxi

mum

High/

Medium/ Low

Debt and

Money

Market

Instruments

*

0% 100% Low to

Medium










months.























An open ended

ultra-short term

debt scheme

investing in

instruments such

that the

Macaulay

duration of the

portfolio is

between 3

months and 6

months

4,205.7

6

48,151



















mentioned above.













Axis

Overnight

Fund


Allocation

(% of net assets)

Risk Profile

Minimu

m

Maximu

m

High/

Medium/

Low






An open ended

debt scheme

investing in

instruments with

a maturity of up

to 1 business

3,889.9

2

6,060


Overnight

securities

*@

0% 100% Low




business day.






















mutual funds.

day.


Axis Money

Market

Fund


(% of net assets)

Risk Profile

Minimum Maximu

m

High/

Medium/

Low

Money

Market

Instruments

0% 100% Low


























The Scheme

invests in

instruments with

a maturity of

upto 1 year.

1,824.7

7

3,144



The corpus of the Scheme will be invested in Debt Instruments, Money Market Instruments and

other permitted securities which will include but not limited to:


Certificate of Deposit (CD)

Certificate of Deposit is a negotiable money market instrument issued by scheduled

commercial banks and select all-India Financial Institutions that have been permitted by the

RBI to raise short term resources. The maturity period of CDs issued by the Banks is between 7

days to one year, whereas, in case of FIs, maturity is one year to 3 years from the date of issue.

Commercial Paper (CP)

Commercial Paper is an unsecured negotiable money market instrument issued in the form of

a promissory note, generally issued by the corporates, primary dealers and all India Financial

Institutions as an alternative source of short term borrowings. CP is traded in secondary market

and can be freely bought and sold before maturity.

Treasury Bill (T-Bills)

Treasury Bills are issued by the Government of India to meet their short term borrowing



India to meet their short term borrowing requirements. CMB are generally issued for maturities

of less than 91 days.


Bill (bills of exchange/promissory notes of public sector and private sector corporate entities)

Rediscounting, usance bills and commercial bills.

Repos

Repo (Repurchase Agreement) or Reverse Repo is a transaction in which two parties agree to

sell and purchase the same security with an agreement to purchase or sell the same security at

a mutually decided future date and price. The transaction results in collateralized borrowing or

lending of funds. Presently in India, corporate debt securities, Government Securities, State

Government Securities and T-Bills are eligible for Repo/ Reverse Repo.

"Tri-party repo" means a repo contract where a third entity (apart from the borrower and

lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the repo

to facilitate services like collateral selection, payment and settlement, custody and



directions issued by RBI and SEBI from time to time. Such investment shall be made subject to

the guidelines which may be prescribed by the Board of Directors of the Asset Management

Company and Trustee Company.

Securities created and issued by the Central and State Governments as may be permitted by

RBI, securities guaranteed by the Central and State Governments (including but not limited to

coupon bearing bonds, zero coupon bonds and treasury bills). State Government securities

(popularly known as State Development Loans or SDLs) are issued by the respective State

Government in co-ordination with the RBI.


Non convertible debentures as well as bonds are securities issued by companies / institutions

promoted / owned by the Central or State Governments and statutory bodies which may or

may not carry a Central/State Government guarantee, Public and private sector banks, all

India Financial Institutions and Private Sector Companies. These instruments may have fixed or


floating rate coupon. These instruments may be secured or unsecured against the assets of the

Company and generally issued to meet the short term and long term fund requirements. The

Scheme may also invest in the non-convertible part of convertible debt securities.

Real Estate Investment Trust (REITs) & Infrastructure Investment Trust (InvIT)

REIT/ InvITs is a trust which holds real estate or infrastructure assets respectively which is

managed by an investment manager. The unitholders in the trust have proportional interest in

the underlying holdings of the trust.

Securitized Assets



termed as Asset Backed Securities (ABS) or Mortgage Backed Securities (MBS). ABS are backed

by other assets such as credit card, automobile or consumer loan receivables, retail installment

loans or participations in pools of leases. Credit support for these securities may be based on

the underlying assets and/or provided through credit enhancements by a third party. MBS is an

asset backed security whose cash flows are backed by the principal and interest payments of

a set of mortgage loans. Such Mortgage could be either residential or commercial properties.

ABS/MBS instrument reflect the undivided interest in the underlying assets and do not represent

the obligation of the issuer of ABS/MBS or the originator of underlying receivables. Securitization

often utilizes the services of SPV.


Pay through or other Participation Certificates represents beneficial interest in an underlying

pool of cash flows. These cash flows represent dues against single or multiple loans originated

by the sellers of these loans. These loans are given by banks or financial institutions to

corporates. PTCs may be backed, but not exclusively, by receivables of personal loans, car

loans, two wheeler loans and other assets subject to applicable regulations.


1. How the risk profile of securitized debt fits into the risk appetite of the scheme


securities. This is done by assigning the loans to a special purpose vehicle (a trust), which in turn

issues Pass-Through-Certificates (PTCs). These PTCs are transferable securities with fixed income

characteristics. The risk of investing in securitized debt is similar to investing in debt securities.

However it differs in two respects.

Typically the liquidity of securitized debt is less than similar debt securities. For certain types of

securitized debt (backed by mortgages, personal loans, credit card debt, etc.), there is an

additional pre-payment risk. Pre-payment risk refers to the possibility that loans are repaid

before they are due, which may reduce returns if the re-investment rates are lower than initially

envisaged.


securities of similar credit rating and maturity. If the fund manager judges that the additional

risks are suitably compensated by the higher returns, he may invest in securitized debt up to the

limits specified in the asset allocation table above.





analysis of the originator is especially important in case of retail loans as this affects the credit

quality and servicing of the PTC. The key risk is that of the underlying assets and not of the

originator. For example, losses or performance of earlier issuances does not indicate quality of

current series. However such past performance may be used as a guide to evaluate the loan

standards, servicing capability and performance of the originator.


Originators may be: Banks, Non Banking Finance Companies, Housing Finance Companies, etc.

The fund manager / credit analyst evaluates originators based on the following parameters

Track record


Ability to pay





In addition a detailed review and assessment of rating rationale is done including interactions

with the originator as well as the credit rating agency.




High leverage ratios of the ultimate borrower (for single-sell downs) – both on a standalone

basis as well on a consolidated level/ group level

Higher proportion of reschedulement of underlying assets of the pool or loan, as the case

may be

Higher proportion of overdue assets of the pool or the underlying loan, as the case may be




An analysis of the originator is especially important in case of retail loans as the size and reach

affects the credit quality and servicing of the PTC. In addition, the quality of the collection

process, infrastructure and follow-up mechanism; quality of MIS; and credit enhancement

mechanism are key risk mitigants for the better originators / servicers.


underlying borrower is analyzed. In case of diversified pools of loans, the overall characteristic

of the loans is analyzed to determine the credit risk. The credit analyst looks at ageing (i.e. how

long the loan has been with the originator before securitization) as one way of evaluating the

performance potential of the PTC. Securitization transactions may include some risk mitigants

(to reduce credit risk). These may include interest subvention (difference in interest rates on the

underlying loans and the PTC serving as margin against defaults), overcollateralization (issue of

PTCs of lesser value than the underlying loans, thus even if some loans default, the PTC

continues to remain protected), presence of an equity / subordinate tranche (issue of PTCs of

differing seniority when it comes to repayment - the senior tranches get paid before the junior

tranche) and / or guarantees.




borrower is analyzed. In case of diversified pools of loans, the overall characteristic of the loans

is analyzed to determine the credit risk.

The credit analyst looks at ageing (i.e. how long the loan has been with the originator before

securitization) as one way of judging the performance potential of the PTC. Additional risk

mitigants may include interest subvention, over collateralization, presence of an equity /

subordinate tranche and / or guarantees. The credit analyst also uses analyses by credit rating

agencies on the risk profile of the securitized debt.


Currently, the following parameters are used while evaluating investment decision relating to a

pool securitization transaction. The Investment Review Committee may revise the parameters

from time to time.

Characteristics/Typ

e of Pool

Mortga

ge Loan

Commercial

Vehicle and

Construction

Equipment

CAR 2

wheel

ers

Micro

Financ

e Pools

*

Perso

nal

Loans

*

Single

Sell

Down

s

Other

s

Approximate

Average maturity

(in Months)

Up to 10

years

Up to 3 years Up

to 3

year

s

Up to

3

years

NA NA Refer

Note

1

Refer

Note

2

Collateral margin

(including cash,

guarantees, excess

interest spread,

subordinate

tranche)

>10% >10% >10% >10% NA NA “ “

Average Loan to

Value Ratio

<90% <80% <80% <80% NA NA “ “

Average seasoning

of the Pool

>3

months

>3 months >3

mon

ths

>3

mont

hs

NA NA “ “

Maximum single

exposure range

<1% <1% <1% <1% NA NA “ “

Average single

exposure range %

<1% <1% <1% <1% NA NA “ “

* Currently, the Scheme will not invest in these types of securitized debt

Note 1: In case of securitization involving single loans or a small pool of loans, the credit risk of

the borrower is analyzed. The investment limits applicable to the underlying borrower are




securitized debt:

Size of the loan


Loan to Value Ratio





Liquid facility



Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the "true

sale" criteria including credit enhancement and liquidity enhancements. In addition, RBI has

proposed minimum holding period of between nine and twelve months for assets before they

can be securitized. The minimum holding period depends on the tenor of the securitization

transaction. The Scheme will invest in securitized debts that are compliant with the laws and

regulations.



Issuance of securitized debt is governed by the Reserve Bank of India. RBI norms cover the "true

sale" criteria including credit enhancement and liquidity enhancements, including maximum

exposure by the originator in the PTCs. In addition, RBI has proposed minimum retention

requirement of between five and ten percent of the book value of the loans by the originator.

The minimum retention requirement depends on the tenor and structure of the securitization

transaction. The Fund will invest in securitized debts that are compliant with the laws and

regulations.


debt of an originator and the originator in turn makes investments in that particular scheme

of the fund

The key risk is securitized debt relates to the underlying borrowers and not the originator. In a

securitization transaction, the originator is the seller of the debt(s) and the fund is the buyer.

However, the originator is also usually responsible for servicing the loan (i.e. collecting the

interest and principal payments). As the originators may also invest in the scheme, the fund

manager shall ensure that the investment decision is based on parameters as set by the

Investment Review Committee (IRC) of the Asset Management Company and IRC shall review

the same at regular interval.




securitized debt. In addition, credit research agencies provide analysis of individual instruments

and pools. On an on-going basis (typically monthly) the servicer provides reports regarding the

performance of the pool. These reports would form the base for ongoing evaluation where

applicable. In addition, rating reports indicating rating changes would be monitored for

changes in rating agency opinion of the credit risk.

Debt derivative instruments:

Interest Rate Swap

An Interest Rate Swap (IRS) is a financial contract between two parties exchanging or

swapping a stream of interest payments for a “notional principal” amount on multiple

occasions during a specified period. Such contracts generally involve exchange of a “fixed to

floating” or “floating to fixed rate” of interest. Accordingly, on each payment date that occurs

during the swap period, cash payments based on fixed/ floating and floating rates are made

by the parties to one another.


A Forward Rate Agreement (FRA) is a financial contract between two parties to exchange

interest payments for a ‘notional principal’ amount on settlement date, for a specified period

from start date to maturity date. Accordingly, on the settlement date, cash payments based

on contract (fixed) and the settlement rate, are made by the parties to one another. The

settlement rate is the agreed bench-mark/ reference rate prevailing on the settlement date.


A futures contract is a standardized, legally binding agreement to buy or sell a commodity or a

financial instrument in a designated future month at a market determined price (the futures

price) by the buyer and seller. The contracts are traded on a futures exchange. An Interest

Rate Future is a futures contract with an interest bearing instrument as the underlying asset.




3. Exchange traded




Foreign Securities

The Scheme may also invest in suitable investment avenues in foreign securities in overseas

financial markets for the purpose of diversification, commensurate with the Scheme objectives

and subject to necessary stipulations by SEBI / RBI. Towards this end, the Mutual Fund may also

appoint overseas investment advisors and other service providers, to the extent permissible

under the Regulations.

The Scheme may invest in the following foreign securities in line with the guidelines stipulated

by RBI/SEBI from time to time:


Foreign debt securities in the countries with fully convertible currencies, short term as well as

long term debt instruments with rating not below investment grade by


Money Market Instruments rated not below investment grade


grade; repos shall not however, involve any borrowing of funds by the mutual funds

Government Securities where the countries are rated not below investment grade

Derivatives traded on recognized stock exchanges overseas only for hedging and portfolio

balancing with underlying as securities

Short term deposits with banks overseas where the issuer is rated not below investment

grade





As per SEBI circular no. SEBI/IMD/CIR No.7/104753/07 dated September 26, 2007 read with SEBI

circular SEBI/HO/IMD/DF3/CIR/P/2020/225 dated November 5, 2020, mutual funds can make

overseas investments subject to a maximum of US $600 million or such limits as may be

prescribed by SEBI from time to time. Subject to the approval of RBI / SEBI, where required and

conditions as may be prescribed by them, the Mutual Fund may open one or more foreign

currency accounts abroad either directly, or through the custodian/sub-custodian, to facilitate

investments and to enter into/deal in forward currency contracts, currency futures, interest rate

futures / swaps, currency options for the purpose of hedging the risks of assets of a portfolio or

for such purposes as maybe permitted from time to time. However, the use of such instruments

shall be as permitted from time to time. All the requirement of the SEBI circular dated

September 26, 2007 and any amendments thereto would be adhered to by the AMC for

investment in foreign securities.

Investment in overseas securities shall be made in accordance with the requirements

stipulated by SEBI and RBI from time to time.

Limits for investment in overseas securities: An investment headroom of 20% of the average

AUM in overseas securities / overseas ETFs of the previous three calendar months would be

available to the Mutual Fund for that month to invest in overseas securities / overseas ETFs

subject to maximum limits specified in SEBI circulars.

Short Term Deposits

Pending deployment of funds as per the investment objective of the Scheme, the Funds may

be parked in short term deposits of the Scheduled Commercial Banks, subject to guidelines

and limits specified by SEBI.



other mutual funds in conformity with the investment objective of the Scheme and in terms of

the prevailing SEBI (MF) Regulations.



permitted to invest in could be listed, unlisted, privately placed, secured, unsecured, rated or

unrated and of any maturity.

The securities may be acquired through initial public offering (IPOs), secondary market, private

placement, rights offers, negotiated deals, etc. Further investments in debentures, bonds and

other fixed income securities will be in instruments which have been assigned investment grade

rating by the Credit Rating Agency.




Details of various derivative strategies/examples of use of derivatives have been provided

under the paragraph “Derivatives Strategy”.

The Fund Manager reserves the right to invest in such securities as may be permitted from time

to time and which are in line with the investment objectives of the Scheme.


Interest rates have a cyclical movement whereas yields fall, bond prices rise, while the reverse

is true in the case when interest rates rise. The investment objective of this scheme is to

maximize risk adjusted returns to the investor through an active management of the portfolio,

by elongating the duration of the portfolio in a falling interest rate scenario and reducing the

duration at a time when interest rates are moving up. The fund will be actively churned to

capture price appreciation and endeavor to minimize the negative movements in prices.

While long term funds try to optimize returns in the long term, this fund will look to micro

manage the portfolio and endeavor to optimize returns. Active calls on the shape of the yield

curve (sovereign gilt curve or the corporate bond curve) and the spread between

corresponding points of different yield curves (say 5y gilt versus 5y AAA corporate bond) will be

taken to endeavor to maximize the returns to the investor.

With the discretion to take aggressive interest rate/duration risk calls, this could mean investing

the entire net assets in long dated Government securities and debt instruments (carrying

relatively higher interest rate risk/duration risk), or on defensive considerations, entirely in money

market instruments. Accordingly, the interest rate risk/duration risk of the scheme may change

substantially depending upon the Fund’s call.

The Indian debt market is in a phase of rapid transformation with liquidity and investment

opportunities arising in various debt segments along with the introduction of new instruments.

The fund manager will try to allocate assets of the scheme between various fixed income

securities with the objective of achieving optimal risk adjusted returns. After doing a thorough

research on the general macroeconomic condition, political environment, systemic liquidity,

inflationary expectations, corporate performance and other economic considerations the

portfolio duration and credit exposures will be decided.

Derivatives Strategy:

The Scheme may use Derivative instruments like interest rate swaps like Overnight Indexed

Swaps (“OIS”), forward rate agreements, interest rate futures (as and when permitted) or such

other Derivative instruments as may be permitted under the applicable regulations. Derivatives

will be used for the purpose of hedging, and portfolio balancing or such other purpose as may

be permitted under the regulations and guidelines from time to time.

The Fund will be allowed to take exposure in interest rate swaps only on a non-leveraged basis.

A swap will be undertaken only if there is an underlying asset in the portfolio. In terms of circular


no. MFD.BC.191/07.01.279/1999-2000 and MPD.BC.187/07.01.279/1999- 2000 dated November

1, 1999 and July 7, 1999 respectively issued by RBI permitting participation by Mutual Funds in

interest rate swaps and forward rate agreements, the Scheme will use Derivative instruments

for the purpose of hedging and portfolio balancing. The Scheme may also use derivatives for

such purposes as maybe permitted from time to time. Further, the guidelines issued by RBI from

time to time for forward rate agreements and interest rate swaps and other derivative products

would be adhered to by the Mutual Fund.

IRS and FRA do also have inherent credit and settlement risks. However, these risks are

substantially reduced as they are limited to the interest streams and not the notional principal

amounts.

Investments in Derivatives will be in accordance with the extant SEBI Regulations / guidelines.

Presently Derivatives shall be used for hedging and / or portfolio balancing purposes, as

permitted under the Regulations. The circumstances under which such transactions would be

entered into would be when, for example using the IRS route it is possible to generate better

returns / meet the objective of the Scheme at a lower cost. e.g. if buying a 2 Yr MIBOR based

instrument and receiving the 2 Yr swap rate yields better return than the 2 Yr AAA corporate,

the Scheme would endeavor to do that. Alternatively, the Scheme would also look to hedge

existing fixed rate positions if the view on interest rates is that it would likely rise in the future.

The following information provides a basic idea as to the nature of the Derivative instruments

proposed to be used by the Scheme and the benefits and risks attached therewith. Please

note that the examples have been given for illustration purposes only.


In a rising interest rate scenario, the Scheme may enhance returns for the Investor by hedging

the risk on its fixed interest paying assets by entering into an OIS contract where the Scheme

agrees to pay a fixed interest rate on a specified notional amount, for a pre determined tenor

and receives floating interest rate payments on the same notional amount. The fixed returns

from the Scheme assets and the fixed interest payments to be made by the Scheme on

account of the OIS transaction offset each other and the Scheme benefits on the floating

interest payments that it receives. The Scheme may enter into an opposite position in case of a

falling interest rate scenario, i.e. to hedge the floating rate assets in its portfolio the Scheme

enters into an OIS transaction wherein it receives a fixed interest rate on a specified notional

amount for a specified time period and pays a floating interest rate on the same notional

amount. The floating interest payments that the Scheme receives on its floating rate securities

and the floating interest payments that the Scheme has to pay on account of the OIS

transaction offset each other and the Scheme benefits on the fixed interest payments that it

receives in such a scenario.

Swap

Assume that the Scheme has a Rs. 20 crore floating rate investment linked to MIBOR (Mumbai

Inter Bank Offered Rate). Hence, the Scheme is currently running an interest rate risk and stands

to lose if the interest rate moves down. To hedge this interest rate risk, the Scheme can enter

into a 6 month MIBOR swap. Through this swap, the Scheme will receive a fixed predetermined

rate (assume 12%) and pays the “benchmark rate” (MIBOR), which is fixed by the NSE or any

other agency such as Reuters. This swap would effectively lock-in the rate of 12% for the next 6

months, eliminating the daily interest rate risk. This transaction is usually routed through an

intermediary who runs a book and matches deals between various counterparties.

The steps will be as follows:

Assuming the swap is for Rs. 20 Crores for June 1, 2009 to December 1, 2009. The Scheme is a

fixed rate receiver at 12% and the counterparty is a floating rate receiver at the overnight rate

on a compounded basis (say NSE MIBOR).



entered this swap. This documentation would be as per International Swap Dealers Association

(“ISDA”) norms.






The counterparty is entitled to receive daily compounded call rate for 184 days & pay 12%

fixed.

On December 1, 2009, if the total interest on the daily overnight compounded benchmark

rate is higher than Rs. 1.21 Crores, the Scheme will pay the difference to the counterparty. If

the daily compounded benchmark rate is lower, then the counterparty will pay the

Scheme the difference.

Effectively the Scheme earns interest at the rate of 12% p.a. for six months without lending

money for 6 months fixed, while the counterparty pays interest @ 12% p.a. for 6 months on

Rs. 20 Crores, without borrowing for 6 months fixed.

The above example illustrates the use of Derivatives for hedging and optimizing the investment

portfolio. Swaps have their own drawbacks like credit risk, settlement risk. However, these risks

are substantially reduced as the amount involved is interest streams and not principal.


Assume that on June 30, 2009, the 30 day Commercial Paper (CP) rate is 4% and the Scheme

has an investment in a CP of face value Rs. 50 Crores, which is going to mature on July 31,

2009. If the interest rates are likely to remain stable or decline after July 31, 2009, and if the fund

manager, who wants to re-deploy the maturity proceeds for 1 more month does not want to

take the risk of interest rates going down, he can then enter into a following Forward Rate

Agreement (FRA) say as on June 30, 2009:

He can receive 1 X 2 FRA on June 30, 2009 at 4.00% (FRA rate for 1 months lending in 1 months

time) on the notional amount of Rs. 50 Crores, with a reference rate of 30 day CP benchmark.

If the CP benchmark on the settlement date i.e. July 30, 2009 falls to 3.75%, then the Scheme

receives the difference 4.00 – 3.75 i.e. 25 basis points on the notional amount Rs. 50 Crores.


Assume that the Scheme holds an Indian ten year benchmark and the fund manager has a

view that the yields will go up in the near future leading to decrease in value of the investment

and subsequent decrease in Net Asset Value (NAV) of the Scheme. The fund manager

decides to use Interest Rate Futures to mitigate the risk of decline of Net Asset Value (NAV) of

the Scheme.

12th October 2009


December 2009 futures contract on the ten year notional 7% coupon bearing Government

paper is trading at a yield of 7.29% at a price of INR 98.50.



25th November 2009



The December 2009 futures contract is trading at a price of INR 93.17 indicating a yield of

8.05%


The mutual fund unwinds the short position by buying the December 2009 futures contract.

The transaction results in profit from the futures position, against the corresponding loss from

the Government of India security position.

Certain risks are inherent to Derivative strategies viz. lack of opportunities, inability of Derivatives

to correlate perfectly with the underlying and execution risks, whereby the rate seen on the

screen may not be the rate at which the transaction is executed. For details of risk factors

relating to use of Derivatives, the investors are advised to refer to Scheme Specific Risk Factors.

Portfolio Turnover:

The Scheme being an open-ended Scheme, it is expected that there would be a number of

Subscriptions and Redemptions on a daily basis. Further, in the debt market, trading

opportunities may arise due to changes in system liquidity, interest rate policy announced by

RBI, shifts in the yield curve, credit rating changes or any other factors. In the opinion of the

fund manager these opportunities can be played out to enhance the total return of the

portfolio, which will result in increase in portfolio turnover. Fund Manager will seek to maximize

the returns by taking advantage of swift moves in the market and can further increase the

turnover. There may be an increase in transaction cost such as brokerage paid, if trading is

done frequently. However, the cost would be negligible as compared to the total expenses of

the Scheme. Frequent trading may increase the profits which will offset the increase in costs.

The fund manager will endeavor to optimize portfolio turnover to maximize gains and minimize

risks keeping in mind the cost associated with it. However, it is difficult to estimate with

reasonable accuracy, the likely turnover in the portfolio of the Scheme. The Scheme has no

specific target relating to portfolio turnover.

Investment in overseas financial assets (foreign fixed income securities):

RBI vide its letter no. EC.CO.OID.MF/ 19.19.463/2001-2002 dated May 31, 2002 has given

approval to mutual funds to invest in such securities subject to the conditions stated therein.

SEBI through its Circular dated September 26, 2007 read with circular dated November 5, 2020

& such other circulars as issued by SEBI from time to time has permitted Mutual Funds to invest

in Foreign Securities including foreign debt securities within the overall limit of US$ 7 billion,

subject to a maximum of US$ 600 million per Mutual Fund. Further, the Mutual Funds can also

invest in Exchange Traded Funds within an overall limit of US$ I billion, subject to a maximum of

US$ 200 million per Mutual Fund.

It is the Investment Manager’s belief that overseas securities offer new investment and portfolio

diversification opportunities into multi-market and multi-currency products. However, such

investments also entail additional risks. Such investment opportunities may be pursued by the

Investment Manager provided they are considered appropriate in terms of the overall

investment objectives of the Scheme. Since the Scheme would invest only partially in overseas

securities, there may not be readily available and widely accepted benchmarks to measure

the performance of the Scheme. To manage risks associated with foreign currency and interest

rate exposure, the Fund may use Derivatives for efficient portfolio management and hedging

as maybe permitted from time to time and in accordance with conditions as may be

stipulated by SEBI/RBI from time to time.

Offshore investments will be made subject to any/all approvals/ conditions thereof as may be

stipulated by SEBI/ RBI/ other Regulatory Agency. The Fund may, where necessary, appoint

other intermediaries of repute as advisors, sub-custodians, etc. for managing and administering

such investments. The appointment of such intermediaries shall be in accordance with the

applicable requirements of SEBI and within the permissible ceilings of expenses. The fees and

expenses would illustratively include, besides the investment management fees, custody fees

and costs, fees of appointed advisors and sub-managers, transaction costs, and overseas

regulatory costs.


Under normal circumstances, the Scheme may invest maximum 50% of its net assets in Foreign

Securities. However, the AMC with a view to protecting the interests of Investors may alter the

exposure in Foreign Securities as deemed fit from time to time.

For applicable regulatory investment limits please refer paragraph "Investment Restrictions.

The Fund Manager reserves the right to invest in such securities as maybe permitted from time

to time and which are in line with the investment objectives of the scheme.


The Indian debt market is today one of the largest in Asia and includes securities issued by the

Government (Central & State Governments), public sector undertakings, other government

bodies, financial institutions, banks and corporates. Government and public sector enterprises

are the predominant borrowers in the markets. The major players in the Indian debt markets

today are banks, financial institutions, mutual funds, insurance companies, primary dealers,

trusts, pension funds and corporates. The Indian debt market is the largest segment of the

Indian financial markets. The debt market comprises broadly two segments, viz. Government

Securities market or G-Sec market and corporate debt market. The latter is further classified as

market for PSU bonds and private sector bonds.

The Government Securities (G-Secs) market, consists of G-Sec outstanding of Rs. 67,44,406.238

cr as on Oct 27, 2020 (State Govt securities - Rs 34,44,380.1300 cr, (as on Jul 20) Source: CCIL), is

the oldest and the largest component (50% share in market cap) of the Indian debt market in

terms of market capitalization, outstanding securities and trading volumes. The G-Secs market

plays a vital role in the Indian economy as it provides the benchmark for determining the level

of interest rates in the country through the yields on the Government Securities which are

referred to as the risk-free rate of return in any economy. Over the years, there have been new

products introduced by the RBI like zero coupon bonds, floating rate bonds, inflation indexed

bonds, etc.


public issuance in capital market, is only an insignificant part of the Indian Debt Market. A large

part of the issuance in the non-Government debt market is currently on private placement

basis.


overnight and term money between banks and institutions), repo transactions (temporary sale

with an agreement to buy back the securities at a future date at a specified price),


corporates), certificate of deposits (CDs, issued by banks) and Treasury Bills (issued by RBI). In a

predominantly institutional market, the key money market players are banks, financial



Instruments that comprise a major portion of money market activity include but not limited to:

• Overnight Call

• Tri Party Repo


• Treasury Bills





include MIBOR linked debentures with periodic exit options and other such instruments. Though

not strictly classified as Money Market Instruments, PSU / DFI / Corporate paper with a residual

maturity of < 1 year, are actively traded and offer a viable investment option.


The market has evolved in past 2-3 years in terms of risk premia attached to different class of

issuers. Bank CDs have clearly emerged as popular asset class with increased acceptability in

secondary market. PSU banks trade the tightest on the back of comfort from majority

government holding. Highly rated manufacturing companies also command premium on

account of limited supply. However, there has been increased activity in papers issued by

private/foreign banks/NBFCs/companies in high-growth sector due to higher yields offered by

them. Even though companies across these sectors might have been rated on a same scale,

the difference in the yield on the papers for similar maturities reflects the perception of their

respective credit profiles.

The following table gives approximate yields prevailing on November 13, 2020 on some of the

instruments and further illustrates this point.

Instrument Current Yield range (%) Tri-party Repo 3.05%-3.10% Repo 3.05%-3.10% 3M T-bill 3.15%-3.20% 1Y T-bill 3.40%-3.45% 10Y G-sec 5.85%-5.90% 3m PSU Bank CD 3.20%-3.25% 3m Manufacturing co. CP 3.25%-3.30% 1Y PSU Bank CD 3.75%-3.80% 1Y NBFC CP 4.10%-4.20% 1Y Manufacturing co. CP 3.95%-4.00% 5Y AAA Institutional Bond 5.40%-5.45% 10Y AAA Institutional Bond 6.50%-6.55%

Source: Bloomberg

These yields are indicative and do not indicate yields that may be obtained in future as interest

rates keep changing consequent to changes in macro-economic conditions and RBI policy.

The price and yield on various debt instruments fluctuate from time to time depending upon

the macro economic situation, inflation rate, overall liquidity position, foreign exchange

scenario etc. Also, the price and yield vary according to maturity profile, credit risk etc.

INVESTMENT BY THE AMC IN THE SCHEME


during Ongoing Offer Period. However, the AMC shall not charge any investment


Risk Control


management is critical to fund management for achieving financial soundness. The investment

team of the AMC will carry out rigorous in depth credit evaluation of the money market and

debt instruments (other than G-Secs) proposed to be invested in. The credit evaluation will

essentially be a bottom up approach and include a study of the operating environment of the

issuer, the past track record as well as the future prospects of the issuer and the short term /

long term financial health of the issuer. The AMC would incorporate adequate safeguards for

controlling risks in the portfolio construction process, which would be periodically evaluated

The scheme will also use derivatives and other hedging instruments, as may be permitted by

RBI, from time to time, in order to protect the value of the portfolio. Investments by the Scheme

shall be made as per the investment objectives of the Scheme and provisions of SEBI

regulations. AMC has implemented the Bloomberg Portfolio Order Management System as

Front Office System (FOS). The system has incorporated all the investment restrictions as per SEBI

guidelines and “soft” warning alerts at appropriate levels for preemptive monitoring. The


system enables identifying & measuring the risk through various risk measurement tools like

various risk ratios, average duration and analyzes the same and acts in a preventive manner.


Following are the Fundamental Attributes of the Scheme, in terms of Regulation 18 (15A) of the

SEBI (MF) Regulations:




o Liquidity provisions such as listing, repurchase, redemption.



In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustees shall ensure


thereunder or the trust or fee and expenses payable or any other change which would modify

the Scheme and the Plan(s) / Option(s) thereunder and affect the interests of Unitholders is

carried out unless:

A written communication about the proposed change is sent to each Unitholder and an

advertisement is given in one English daily newspaper having nationwide 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 Unitholders are given an option for a period of 30 days to exit at the prevailing Net



Nifty Composite Debt Index

Justification for use of benchmark

The Scheme performance would be benchmarked NIFTY Composite Debt Index.

The scheme intends to invest in a portfolio of instruments (debt and money market instruments)

which is best captured in NIFTY Composite Debt Index. The constituents and weights of the

Index is as on April 2020 are as under


NIFTY All Duration G-Sec Index 35%

NIFTY 10 Year SDL Index 5%

NIFTY AAA Short Duration Bond Index 21%

NIFTY AAA Medium Duration Bond Index 13%

NIFTY AAA Medium to Long Duration Bond Index 18%

NIFTY AA+ Short Duration Bond Index 1%

NIFTY AA Short Duration Bond Index 3%

NIFTY AA+ Medium Duration Bond Index 1%

NIFTY AA Medium Duration Bond Index 1%

NIFTY AA+ Medium to Long Duration Bond Index 1%

NIFTY AA Medium to Long Duration Bond Index 1%


This is a realistic estimate to track the returns of a Dynamic Bond Fund at a particular risk level.

The Trustee/AMC reserves the right to change the benchmark for the evaluation of the


the Scheme and the appropriateness of the benchmark, subject to SEBI guidelines and other

prevalent guidelines.


Name of

Fund

Manager

Age and

Qualificati

on


in the last 10 years

Names of other

schemes under his

management

Tenure

as Fund

Manager

of the

Scheme

Mr. R.

Sivakumar

45 years

Bachelor

of

Technolog

y, IIT,

Madras

PGDM, IIM,

Ahmedab

ad

Head – Fixed Income &

Products, Axis Asset

Management Company Ltd.

(September 02, 2010 – till date)

Fund Manager – PMS, Axis

Asset Management Co.

Ltd.(August 2009 till September

01 2010)

Chief Operating Officer, Fortis

Investment Management

(India) Pvt. Ltd. - previously

known as ABN AMRO Asset

Management (India) Pvt. Ltd.

(Last position held – Chief

Operating Officer. Previous

roles included Fund Manager –

Fixed Income, VP – Product

Development and Portfolio

Management and Head –

Structured Products.) (April

2004 – July 2009)

Fund Manager – Fixed Income,

Sundaram Asset Management

Company Ltd. (January 2001 –

March 2004)

Research Analyst, Zurich Asset

Management (India) Private

Ltd. (December 1999 –

December 2000

Axis Dynamic Bond


Devang Shah), Axis

Children’s Gift Fund

(Along with Mr.

Ashish Naik and Mr.

Kaustubh Sule), Axis

Triple Advantage


Ashish Naik), Axis

Dynamic Equity



Equity Saver Fund

(Along with Mr.


Equity Hybrid Fund

(Along with Mr.

Ashish Naik), Axis All

Seasons Debt Fund

of Funds, Axis

Retirement Savings

Fund including

Aggressive Plan,

Conservative Plan

and Dynamic Plan

(along with Mr.

Jinesh Gopani and

Mr. Hitesh Das) and

Axis Global Equity

Alpha Fund of Fund

(along with Mr.

Hitesh Das)

9 years

Mr.

Devang

Shah

38

B. Com,

ACA

Fund Manager – Fixed Income,

Axis Asset Management

Company Ltd. (October 16,

2012 till date)

Fund Manager, ICICI Prudential

Asset Management Company

Ltd. (April 2008 – October 2012)

Axis Strategic Bond


Dhaval Patel), Axis

Short Term Fund, Axis

Gilt Fund (along with

Mr. Kaustubh Sule),

Axis Dynamic Bond

8 years


Name of

Fund

Manager

Age and

Qualificati

on


in the last 10 years

Names of other

schemes under his

management

Tenure

as Fund

Manager

of the

Scheme

Analyst, Deutsche Asset

Management (India) Pvt. Ltd.

(2006-2008)

Assistant Manager,

Pricewaterhouse Coopers

(2004-2006)


R. Sivakumar), Axis

Liquid Fund (Along

with Mr. Aditya

Pagaria), Axis

Arbitrage Fund

(Along with Mr.

Viresh Joshi), Axis

Gold Fund, Axis Gold

ETF, Axis Treasury

Advantage Fund

(Along with Mr.

Aditya Pagaria), Axis

Regular Saver Fund

(Along with Mr.

Ashish Naik and Mr.

Sachin Jain), Axis

Credit Risk Fund

(along with Mr.

Dhaval Patel) Axis

Fixed Term Plans,

Axis Corporate Debt

Fund and Axis

Money Market Fund

(along with Mr.

Aditya Pagaria).

Presently, the Trustee/AMC has not designated a dedicated Fund Manager for investment in

Foreign Securities. However, it shall be ensured that there is a dedicated fund manager for

investment in foreign securities as and when the fund makes investment in foreign securities.




1. A Mutual Fund Scheme shall not invest more than 10% of its NAV in debt instruments

comprising money market instruments and non-money market instruments issued by a

single issuer, which are rated not below investment grade by a credit rating agency

authorized to carry out such activitiy under the SEBI Act, 1992. Such investment limit may be

extended to 12% of the NAV of the Scheme with the prior approval of the Trustee and the

Board of Directors of AMC.

Provided that such limit shall not be applicable for investment in Government Securities,

treasury bills and collateralized borrowing and lending obligations.

Provided further that investments within such limit can be made in the mortgaged backed

securitised debt, which are rated not below investment grade by a credit rating agency,

registered with SEBI.


except Government Securities, money market instruments and derivative products such as

Interest Rate Swaps, Interest Rate Futures, etc. which are used by mutual fund for hedging.



maximum of 10% of the debt portfolio of the Scheme subject to such conditions as may be

specified by the Board from time to time:

Provided further that the Scheme shall comply with the norms under this clause within the

time and in the manner as may be specified by the Board:

Provided further that the norms for investments by the Scheme in unrated debt instruments

shall be as specified by the Board from time to time.

Further the investments by the Scheme shall be in compliance with SEBI circular no.

SEBI/HO/IMD/DF2/CIR/P/2019/104 dated October 1, 2019 and as amended by SEBI from

time to time.


debt portfolio of the scheme and the group exposure in such instruments shall not exceed

5% of the debt portfolio of the scheme:

a. Unsupported rating of debt instruments (i.e. without factoring-in credit enhancements)

is below investment grade and






directly or indirectly, shall have a minimum cover of 4 times considering the market value of

such shares.


without charging any fees, provided the aggregate inter-scheme investment made by all

the schemes under the same management or in schemes under the management of any

other asset management company shall not exceed 5% of the Net Asset Value of the Fund.


any unlisted security of an associate or group company of the sponsor; or

any security issued by way of private placement by an associate or group company of

the sponsor; or

the listed securities of group companies of the sponsor which is in excess of 25% of the

net assets.

7. The Mutual Fund shall get the securities purchased transferred in the name of the Fund on

account of the concerned Scheme, wherever investments are intended to be of a long-

term nature.


permitted provided:

a) such transfers are done at the prevailing market price for quoted instruments on spot

basis (spot basis shall have the same meaning as specified by a Stock Exchange for

spot transactions); and

b) the securities so transferred shall be in conformity with the investment objective of the

Scheme to which such transfer has been made.

9. The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases

of purchases, take delivery of relevant securities and in all cases of sale, deliver the

securities:

Provided that the Mutual Fund may engage in Short Selling of securities in accordance with

the framework relating to Short Selling and securities lending and borrowing specified by

SEBI.




Provided further that sale of government security already contracted for purchase shall be

permitted in accordance with the guidelines issued by the RBI in this regard.





The Scheme will comply with the following guidelines/ restrictions for parking of funds in

short term deposits:

i. “Short Term” for such parking of funds by the Scheme shall be treated as a period not

exceeding 91 days. Such short-term deposits shall be held in the name of the Scheme.

ii. The Scheme shall not park more than 15% of the net assets in short term deposit(s) of all

the scheduled commercial banks put together. However, such limit may be raised to 20%

with prior approval of the Trustee.

iii. Parking of funds in short term deposits of associate and sponsor scheduled commercial

banks together shall not exceed 20% of total deployment by the Mutual Fund in short

term deposits.

iv. The Scheme shall not park more than 10% of the net assets in short term deposit(s), with

any one scheduled commercial bank including its subsidiaries.

v. The Scheme shall not park funds in short term deposit (STD) of a bank which has invested

in that Scheme. Further, Trustees/ AMCs shall also ensure that the bank in which the

Scheme has STD do not invest in the said scheme until the Scheme has STD with such

bank.

vi. The AMC will not charge any investment management and advisory fees for funds

parked in short term deposits of scheduled commercial banks

However, the above provisions will not apply to term deposits placed as margins for trading

in cash and derivatives market.


13. The Scheme shall not borrow except to meet temporary liquidity needs of the Scheme for

the purpose of repurchase/redemption of Unit or payment of interest and/or Dividend to

the Unit holder.


individual Scheme and the duration of the borrowing shall not exceed a period of 6 months.

14. a) The mutual fund under all its schemes shall not own more than 10% of units issued by a

single issuer of REIT and InvIT.

b) The Scheme shall not invest –

i. more than 10% of its NAV in the units of REIT and InvIT; and

ii. more than 5% of its NAV in the units of REIT and InvIT issued by a single issuer.

15. SEBI vide its circular no. Cir/IMD/DF/11/2010 dated August 18, 2010 has prescribed the

following investment restrictions w.r.t. investment in derivatives:

S.

No.

Particulars

1 The cumulative gross exposure through debt and derivative positions shall not

exceed 100% of the net assets of the Scheme. Cash or cash equivalents with

residual maturity of less than 91 days shall be treated as not creating any

exposure.



written options.

3 The total exposure related to option premium paid shall not exceed 20% of the

net assets of the Scheme.

4 Exposure due to hedging positions may not be included in the above mentioned

limits subject to the following:

a. Hedging positions are the derivative positions that reduce possible losses on

an existing position in securities and till the existing position remains.

b. Hedging positions cannot be taken for existing derivative positions. Exposure

due to such positions shall have to be added and treated under limits

mentioned in Point 1.

c. Any derivative instrument used to hedge has the same underlying security as

the existing position being hedged.




5 Exposure due to derivative positions taken for hedging purposes in excess of the

underlying position against which the hedging position has been taken, shall be

treated under the limits mentioned in point 1.

6 Each position taken in derivatives shall have an associated exposure as defined

under. Exposure is the maximum possible loss that may occur on a position.

However, certain derivative positions may theoretically have unlimited possible

loss. Exposure in derivative positions shall be computed as follows:

Position Exposure



Option bought Option Premium Paid * Lot Size * Number of Contracts.

7 The Scheme may enter into plain vanilla interest rate swaps for hedging purposes.

The counter party in such transactions has to be an entity recognized as a market

maker by RBI. Further, the value of the notional principal in such cases shall not

exceed the value of respective existing assets being hedged by the Scheme.

Exposure to a single counterparty in such transactions shall not exceed 10% of the

net assets of the Scheme.

8 To reduce interest rate risk in a debt portfolio, mutual funds may hedge the

portfolio or part of the portfolio (including one or more securities) on weighted

average modified duration basis by using Interest Rate Futures (IRFs). The

maximum extent of short position that may be taken in IRFs to hedge interest rate

risk of the portfolio or part of the portfolio, is as per the formula given below:

(Portfolio Modified Duration*Market Value of the Portfolio)

(Futures Modified Duration*Futures Prices/PAR)

16. The total exposure in a particular sector (excluding investments in Bank CDs, CBLO,


rated securities issued by Public Financial Institutions and Public Sector Banks) shall not

exceed 20% of the net assets of the Scheme.

Provided that an additional exposure to financial services sector (over and above the limit

of 20%) not exceeding 10% of the net assets of the Scheme shall be allowed by way of

increase in exposure to Housing Finance Companies (HFCs) only;



Investment/exposure in HFCs shall not exceed 20% of the net assets of the Scheme.

Further, an additional exposure of 5% of the net assets of the Scheme shall be allowed for

investments in securitized debt instruments based on retail housing loan portfolio and/or

affordable housing loan portfolio.


17. The total exposure in a particular group (excluding investments in securities issued by Public

Sector Units, Public Financial Institutions and Public Sector Banks) shall not exceed 20% of

the net assets of the Scheme. Such investment limit may be extended to 25% of the net

assets of the Scheme with the prior approval of the Board of Trustees.

For this purpose, a group means a group as defined under regulation 2 (mm) of SEBI (MF)

Regulations and shall include an entity, its subsidiaries, fellow subsidiaries, its holding


Further, limit for investment in debt and money market instruments of group companies of

both the sponsor and AMC shall not exceed 10% of the net assets of the Scheme. Such

investment limit can be extended to 15% with the prior approval of the Board of Trustees.



Directors of Trustee Company and the Asset Management Company, from time to time. At

present the following conditions and norms shall apply to repo in corporate debt securities:

(i) The gross exposure of the Scheme to repo transactions in corporate debt securities shall

not be more than 10 % of the net assets of the Scheme.

(ii) The cumulative gross exposure through repo transactions in corporate debt securities

along with equity, debt and derivatives shall not exceed 100% of the net assets of the

Scheme.



(iv) The Scheme shall borrow through repo transactions only if the tenor of the transaction

does not exceed a period of six months.








(vii) The counterparty must be an acceptable counterparty for debt transactions. The


transactions and the same shall be used for selection of counterparties for corporate

bond repos. All repo transactions in corporate bonds will be governed by a repo

agreement as specified by FIMMDA and / or other specified authorities.

(viii) Collateral tenor & quality

The exposure limit/investment restrictions prescribed under the Seventh Schedule of the

Regulations and circulars issued there under (wherever applicable) shall be applicable

to repo transactions in corporate bonds. The Scheme shall further follow guidelines


(ix) Applicable haircuts








failing to honor the repurchase leg of the repo. In such a circumstance, the Fund would

suffer a loss if the value of the collateral depreciates by more than the haircut. The fall

in the value of the collateral could be on account of higher yields and/ or deterioration

of credit quality.



relatively high degree of safety in relation to the interest rate risk on the collateral. The

risk of collateral depreciation based on historical volatility is given in the table below:




10%

1 day 258 136 94 48

7 days 98 52 36 18

In the above table, the price volatility of a 10-year bond is about 3.4% annualized. That

is a 10% price move represents nearly a 3-sigma event on an annualized basis. For

overnight tenors, this represents a 48-sigma event (for comparison a 6-sigma event

occurs about once in a million observations).


interest rate risk. Credit event risk remains (the collateral could default during the tenor

of the repo). This risk is to be mitigated by ensuring that the collateral is acceptable

from a credit point of view.




The AMC/Trustee may alter these above stated restrictions from time to time to the extent the

Regulations change, so as to permit the Scheme to make its investments in the full spectrum of

permitted investments for mutual funds to achieve its respective investment objective.





money market instrument affected by a credit event, that has been segregated in a mutual

fund scheme. The term ‘main portfolio’ shall mean the scheme portfolio excluding the

segregated portfolio. The term ‘total portfolio’ shall mean the scheme portfolio including the

securities affected by the credit event.

Credit Event








considered. Creation of segregated portfolio shall be based on issuer level credit events as

mentioned above and implemented at the ISIN level.







Credit event in this case shall be ‘actual default’ by the issuer of such instruments and

shall be considered for creation of segregated portfolio.






money market instrument and its impact on the investors. Axis Mutual Fund shall disclose

that the segregation shall be subject to Trustee approval. Additionally, the said press

release shall be prominently disclosed on the website of the AMC.

c. ensure that till the time the Trustee approval is received, which in no case shall exceed

1 business day from the day of credit event, the subscription and redemption in the

Scheme shall be suspended for processing with respect to creation of units and

payment on redemptions.



b. AMC shall issue a press release immediately with all relevant information pertaining to

the segregated portfolio. The said information will also be submitted to SEBI.


d. The NAV of both segregated and main portfolios shall be disclosed from the day of the

credit event.



f. No redemption and subscription shall be allowed in the segregated portfolio. AMC shall

enable listing of units of segregated portfolio on the recognized stock exchange within

10 working days of creation of segregated portfolio and also enable transfer of such

units on receipt of transfer requests



Valuation


valuation shall take into account the credit event and the portfolio shall be valued based on

the principles of fair valuation (i.e. realizable value of the assets) in terms of the relevant






Investors redeeming their units will get redemption proceeds based on the NAV of main

portfolio and will continue to hold the units of segregated portfolio.


based on its NAV.



Disclosure

In order to enable the existing as well as the prospective investors to take informed decision,

the following shall be adhered to:

a. A statement of holding indicating the units held by the investors in the segregated portfolio

along with the NAV of both segregated portfolio and main portfolio as on the day of the


credit event shall be communicated to the investors within 5 working days of creation of

the segregated portfolio.


documents, in monthly and half-yearly portfolio disclosures and in the annual report of the

mutual fund and the Scheme.



appear prominently under the name of the Scheme at all relevant places such as SID, KIM-

cum-Application Form, advertisement, AMC and AMFI websites, etc.


impact of creation of segregated portfolio. The Scheme performance should clearly reflect

the fall in NAV to the extent of the portfolio segregated due to the credit event and the

said fall in NAV along with recovery(ies), if any, shall be disclosed as a footnote to the

Scheme performance.

f. The disclosures at paragraph (d) and (e) above regarding the segregated portfolio shall be

carried out for a period of at least 3 years after the investments in segregated portfolio are

fully recovered/ written-off.



provided to the investors at the time of recovery and also at the time of writing-off of the

segregated securities.



However, TER (excluding the investment and advisory fees) can be charged, on a pro-rata

basis only upon recovery of the investments in segregated portfolio.




3) The legal charges related to recovery of the investments of the segregated portfolio may

be charged to the segregated portfolio in proportion to the amount of recovery. However,

the same shall be within the maximum TER limit as applicable to the main portfolio. The

legal charges in excess of the TER limits, if any, shall be borne by the AMC.

4) The costs related to segregated portfolio shall in no case be charged to the main portfolio.



ensure that:


b. Upon recovery of money, whether partial or full, it shall be immediately distributed to the

investors in proportion to their holding in the segregated portfolio. Any recovery of amount

of the security in the segregated portfolio even after the write off shall be distributed to the

investors of the segregated portfolio.



created.

In order to avoid mis-use of segregated portfolio, Trustees shall ensure to have a mechanism in

place to negatively impact the performance incentives of Fund Managers, Chief Investment

Officers (CIOs), etc. involved in the investment process of securities under the segregated

portfolio, mirroring the existing mechanism for performance incentives of the AMC, including

claw back of such amount to the segregated portfolio of the Scheme.


The below table shows how a rated security affected by a credit event will be segregated and

its impact on investors:



Downgrade

Event Date

July 22, 2019


1,131.9939)



security

Quantity Market

Price Per

Unit (Rs.)

Market Value

(Rs.)

% of

Net

Assets



9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 10.43%



Cash & cash

equivalents

50,321.20 4.45%

Net Assets 11,31,993.87 100.00%

Unit capital (no

of units)

1000.000

NAV (In Rs.) 1131.9939

Security

downgraded


Valuation

Marked down by




Security Rating

Type of the

security

Quantity

Market

Price Per

Unit (Rs.)

Market Value

(Rs.)

% of

Net

Assets



9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 11.99%

7.70% D Ltd. CRISIL D NCD 2,000 25.0000 50,000.00 5.08%


Cash & cash


Net Assets 9,83,993.87 100.00%

Unit capital (no

of units) 1000.000

NAV (In Rs.) 983.9939



security

Quantity Market

Price Per

Unit (Rs.)

Market Value

(Rs.)

% of

Net

Assets



9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 12.64%


Cash & cash

equivalents

50,321.20 5.39%

Net Assets 9,33,993.87 100.00%

Unit capital (no

of units)

1000.000


NAV (In Rs.) 933.9939


Security Rating

Type of the

security

Quantity

Market

Price Per

Unit (Rs.)

Market Value

(Rs.)

% of

Net

Assets

7.70% D Ltd. CRISIL D NCD 2,000 25.0000 50,000.00 100.00%

Net Assets 50,000.00 100.00%

Unit capital (no

of units) 1000.000

NAV (In Rs.) 50.0000

0.0000


portfolio

Main Portfolio

Segregated

Portfolio

Total

Value

No. of Units 1,000 1,000

NAV (in Rs.) 933.9939 50.0000

Total Value (in

Rs.) 9,33,993.87 50,000.00 9,83,993.87


Performance of Axis Dynamic Bond Fund – Regular Plan – Growth Option as at October 31,

2020 is as follows:

Period Axis Dynamic Bond Fund

– Regular Plan – Growth

Option^

NIFTY Composite

Debt Index

1 year returns 13.43% 12.15%



Returns Since Inception (April 27, 2011) 9.10% 8.96%


Performance of Axis Dynamic Bond Fund - Direct Plan - Growth Option as at October 31, 2020

is as follows:

Period Axis Dynamic Bond

Fund - Direct Plan -

Growth Option^

NIFTY Composite

Debt Index

1 Year returns 13.93% 12.15%


3 Year returns 10.16% 9.03%

5 Year returns 9.90% 8.90%

Since Inception returns (January 1, 2013) 10.08% 8.90%


^Past performance may or may not be sustained in future. Returns are compounded

annualized for period more than 1 year. Since inception returns are calculated on Rs. 10

invested at inception. Calculations are based on Growth Option NAVs. Since inception returns

for Axis Dynamic Bond Fund – Regular Plan & Axis Dynamic Bond Fund - Direct Plan are

calculated from April 27, 2011 and January 1, 2013 respectively. Different plans have different

expense structure.







1. Top 10 holdings by Issuer:


State Government Bond 14.24%

State Bank of India 7.78%

Food Corporation Of India (Guarantee from Government of

India) 7.62%



National Highways Auth Of Ind 6.84%

Indian Railway Finance Corporation Limited 6.55%

NHPC Limited 6.38%

REC Limited 5.47%


2. Fund allocation towards various Sectors:




POWER 12.29%


CONSTRUCTION 6.84%


OTHERS^ 4.25%

OIL & GAS 1.81%

Cash & Cash Equivalent: 0.69%

Total 100.0%

^TREPS/Repo/Mutual Fund Units



Portfolio turnover ratio: Not applicable


Sr.

No.

Category of Persons Net Asset Value of Units held as on

October 31, 2020 (in Rs.)


ii Concerned scheme’s Fund Manager(s) 1,48,56,830.95


Note:









New Fund Offer

Period

This is the period

during which a new

scheme sells its units

to the investors.

The New Fund Offer opened on April 06, 2011 and closed on April 20,

2011. The units under the Scheme were allotted on April 27, 2011.

New Fund Offer

Price:

This is the price per

unit that the investors

have to pay to invest

during the NFO.

Not Applicable

Minimum Amount for

Application in the

NFO

Not Applicable

Minimum Target

amount

Not Applicable

Maximum Amount to

be raised (if any)

Not Applicable

Plans / Options

offered

The Scheme offers the following plans:

Axis Dynamic Bond Fund – Regular Plan

Axis Dynamic Bond Fund – Direct Plan

Each Plan offers following options:

Growth option

Dividend option

Options Sub-options Record date*

Growth Nil NA

Dividend Quarterly(payout

and reinvestment)

25th of March, June

September, and December

Half yearly(payout

and reinvestment)

25th of March and September

* Next business day if record date happens to be a Non Business Day.

If dividend payable under Dividend Payout option is equal to or less than

Rs. 500/- then the dividend would be compulsorily reinvested in the

option of the Scheme.

The Investors should indicate the option for which Subscription is made

by indicating the choice in the appropriate box provided for this

purpose in the application form. In case of valid application received

without any choice of option/facility, the following default option/facility

will be considered;

Default Plans

Treatment of applications under Direct/ Regular Plans

Investors subscribing under Direct Plan of a Scheme will have to indicate

“Direct Plan” against the Scheme name in the application form e.g.


“Axis Dynamic Bond Fund – Direct Plan”. Investors should also indicate

“Direct” in the ARN column of the application form.

The investors may refer to the following table for applicability of Direct

Plan/ Regular Plan under different scenario :-

Scenario Broker Code

mentioned by the

investor

Plan mentioned by

the investor

Default Plan to

be captured










application form, the application shall be processed under Regular Plan.

The AMC shall contact and obtain the correct ARN code within 30

calendar days of the receipt of the application form from the investor/

distributor. In case, the correct code is not received within 30 calendar

days, the AMC shall reprocess the transaction under Direct Plan from the

date of application without any exit load.

Default Option

The investor must clearly specify his choice of option/facility. In the

absence of such clear instruction, it will be assumed that the investor has

opted for ‘default’ option / facility and the application will be processed

accordingly. The default plan/ option / facility are:

Default Option – Growth

Default sub option – Quarterly

Default between Payout & Reinvestment Option – Reinvestment

Existing Investments :

Investors wishing to transfer their accumulated unit balance held under

Regular Plan (through lumpsum / systematic investments made with or

without Distributor code) to Direct Plan will have to switch /redeem their

investments (subject to applicable Exit Load, if any) and apply under

Direct Plan.

Investors who have invested without Distributor code and have opted for

Dividend Reinvestment facility under Regular Plan may note that the

dividend will continue to be reinvested in the Regular Plan only.

Default Plan – Redemption application


redemption / Switch request pertains to the Direct Plan, the same must

clearly be mentioned on the request (along with the folio number),

failing which the request would be processed from Axis Dynamic Bond

Fund – Regular Plan. However, where Units under the requested Option

are held only under one Plan, the request would be processed under

such Plan.

Growth option

Dividends will not be declared under this option. The income attributable


to Units under this option will continue to remain invested in the Scheme

and will be reflected in the NAV of Units under this option.

Dividend option

Under this option, Dividends will be declared (subject to deduction of tax

at source, if any) at specified frequencies at the discretion of the Trustee,

subject to availability of distributable surplus calculated in accordance

with SEBI (MF) Regulations. On payment of Dividend, the NAV of the Unit

under Dividend option will fall to the extent of the Dividend payout and

applicable statutory levies, if any.

It must be distinctly understood that the actual declaration of Dividend

and frequency thereof is at the sole discretion of the Trustee. There is no


distribution nor that will the Dividend be paid regularly. The Trustee

reserves the right to declare a Dividend at any other frequency in

addition to the frequencies mentioned above.



deduction of Dividend distribution tax and statutory levy, if any) to those

Unit holder, whose names appear in the register of Unit holders on the

notified record date.


Under this facility, the Dividend due and payable to the Unit holders will

be compulsorily and without any further act by the Unit holder,

reinvested in the respective Dividend option at a price based on the

prevailing ex-Dividend Net Asset Value per Unit. The amount of Dividend

re-invested will be net of tax deducted at source, wherever applicable.

The Dividends so reinvested shall constitute a constructive payment of

Dividends to the Unit holders and a constructive receipt of the same


On reinvestment of Dividends, the number of Units to the credit of Unit

holder will increase to the extent of the Dividend reinvested divided by

the Applicable NAV. There shall, however, be no Load on the Dividend

so reinvested.

Dividend Policy Under the Dividend option, the Trustee will have the discretion to declare

the Dividend as per the specified frequencies, subject to availability of

distributable surplus calculated in accordance with the Regulations. The

actual declaration of Dividend and frequency will inter-alia, depend on

availability of distributable surplus calculated in accordance with SEBI

(MF) Regulations and the decisions of the Trustee shall be final in this

regard. There is no assurance or guarantee to the Unit holder as to the

rate of Dividend nor that the Dividend will be paid regularly.


declaration of Dividend or may provide for additional frequency for

declaration of Dividend.


In accordance with SEBI circular no. SEBI/ IMD/ Cir No. 1/ 64057/06 dated

April 4, 2006, the procedure for Dividend distribution would be as under:

1. Quantum of Dividend and the record date will be fixed by the

Trustee. Dividend so decided shall be paid, subject to availability of

distributable surplus.




Dividend including the record date, in one English daily newspaper

having nationwide circulation as well as in a newspaper published in

the language of the region where the head office of the Mutual

Fund is situated.


purpose of determining the eligibility of Investors whose names

appear on the register of Unit holder for receiving Dividends. The

Record Date will be 5 calendar days from the date of issue of notice.

4. The notice will, in font size 10, bold, categorically state that pursuant

to payment of the Dividend, the NAV of the Scheme would fall to the

extent of payout and statutory levy (if applicable).

5. The NAV will be adjusted to the extent of dividend distribution and



probable date of Dividend declaration in any manner whatsoever






Who can invest

This is an indicative

list and you are

requested to consult

your financial advisor

to ascertain whether

the scheme is


profile.


mutual funds, being permitted under respective constitutions, and



1. Resident adult individuals either singly or jointly (not exceeding three)

or on an Anyone or Survivor basis;





minor investments;


5. Limited Liability Partnerships




societies registered under the Societies Registration Act, 1860 (so


constitutions);



9. Religious and Charitable Trusts, Wakfs or endowments of private trusts

(subject to receipt of necessary approvals as "Public Securities" as

required) and Private trusts authorised to invest in mutual fund

schemes under their trust deeds;


Overseas Citizen of India (OCI) residing abroad on repatriation basis

or on non-repatriation basis;

11. Foreign Portfolio Investor (FPI), registered with SEBI, on repatriation

basis. These investments shall be subject to the conditions prescribed

by SEBI, RBI, Income Tax authorities and the AMC, from time to time;








16. Other schemes of Axis Mutual Fund or any other mutual fund subject

to the conditions and limits prescribed by SEBI (MF) Regulations;




19. Such other category of person(s) permitted to make investments and

as may be specified by the AMC / Trustee from time to time.




company may also reject any application for subscription of units if the

application is invalid, incomplete, or if the AMC/ Trustee company for

any other reason does not believe that it would be in the interest of the

scheme or its unitholders to accept such an application.



enable Axis AMC for speed and ease of communication in a convenient

and cost-effective manner, and to help prevent fraudulent transactions.


SEBI vide its circular no. CIR/MIRSD/2/2013 dated January 24, 2013 further

read with AMFI best practices guidelines circular no. 62/2015-16 dated

September 18, 2015 and other applicable regulations has prescribed

guidelines, for identification of Beneficial Ownership to be followed by

the intermediaries. A ‘Beneficial owner’ is defined as a natural person or

persons who ultimately own, control or influence a client and/or persons

on whose behalf a transaction is being conducted, and includes a

person who exercises ultimate effective control over a legal person or

arrangement. In this regard, all categories of investors (including all new

/ existing investors / unitholders) (except individuals, companies listed on

a stock exchange or majority-owned subsidiary of such companies) are

mandatorily required to provide beneficial ownership details for all

investments. Failing which, fund reserves the right to reject applications /

subscription requests / additional subscription requests (including

switches) / restrict further investments or seek additional information from

investors who have not provided the requisite information on beneficial

ownership. In the event of change in beneficial ownership, investors are

requested to immediately update the details with the Fund/Registrar.

Foreign Account Tax Compliance Act and Common Reporting Standards

requirements:


the globe [e.g. information exchange laws such as Foreign Account Tax


financial institutions like Axis Mutual Fund (‘Axis MF’ or ‘the Fund’) are

being cast with additional investor and counterparty account related

due diligence requirements.

The Central Board of Direct Taxes (CBDT) has notified Rules 114F to 114H,

as part of the Income-tax Rules, 1962, which Rules require Indian





counterparties. According to the FATCA-CRS Rules, financial institutions in

India are required to report tax information about account holders that

are tax resident of U.S. and other foreign countries, to the CBDT/ Indian

Government which will, in turn, relay that information to the US Internal

Revenue Service (IRS) and governments of other foreign countries.





provide information to any institutions such as withholding agents for the

purpose of ensuring appropriate withholding from the account or any

proceeds in relation thereto. As may be required by domestic or


withhold and pay out any sums from your account or close or suspend

your account(s). Axis MF may also have to comply with other similar laws

as and when applicable.



documentation / declarations as and when deemed necessary by the

Investment Manager in accordance with Applicable Laws. In case

prospective investor / Unit holder fails to furnish the relevant information /

documentation / declarations in accordance with Applicable Laws, the

Fund reserves the right to reject the application or redeem the Units held

directly or beneficially and may also require reporting of such accounts

and/or levy of withholding tax on payments made to the Unit holders /

investor and/or take any other action/s in accordance with Applicable

Laws. FATCA-CRS provisions are relevant not only at on-boarding stage

of Unit holders but also throughout the life cycle of investment with the

Fund. Unit holders therefore should intimate to the Fund/the Investment

Manager, any change in their status with respect to any FATCA-CRS

related information / documentation / declarations provided by them

previously, including but not limited to any declarations provided in

respect of residency of the Unit holders for tax purposes promptly, i.e.

within 30 days. Further, if the Fund and/or the Investment Manager is

required by Applicable Laws, to provide information regarding the Fund

and/or the unit holders / investors to any regulatory authority and/or the

Fund Investments and/or income therefrom, and the Fund and/or the

Investment Manager complies with such request in good faith, whether

or not it was in fact enforceable, they shall not be liable to the Unit

holders / investors or to any other party as a result of such compliance or

in connection with such compliance.



Please note that Axis MF will be unable to provide advice to any investor

or counterparty about their tax status or FATCA/CRS classification

relevant to their account. It is the responsibility of the investor or

counterparty to ensure that they record their correct tax status / FATCA/

CRS classification. Investor/ counterparty may seek advice from their tax

advisor in this regard. The onus to provide accurate, adequate and

timely inputs in this regard would be that of the investor or counterparty.

Any changes in earlier information provided must be intimated within 30

days of such change.



declarations to facilitate compliance, considering India’s commitment

to implement CRS and FATCA under the relevant international treaties.

Implementation of KYC requirements



supporting documents to be used by SEBI registered intermediaries and

(ii) Centralized KYC registration through KYC Registration Agencies (KRAs)

registered with SEBI, w.e.f. January 1, 2012, to bring about uniform KYC

process in the securities market, based on SEBI prescribed norms and the

KYC details are shared with all SEBI registered intermediaries by the KRAs.

Subsequently, SEBI, vide its circular no. MIRSD/Cir-5/2012 dated April 13,

2012 advised various intermediaries to upload KYC data of its existing

customers into the KRA system. While uploading KYC data into the KRA

system, intermediaries were also required to highlight such ‘Missing/Not

Available’ KYC information of a customer, which was either not required

or not taken previously, but was mandatory as per uniform KYC

guidelines issued by SEBI.

In accordance with AMFI best practices guidelines circular no. 62/2015-

16 dated September 18, 2015, it is mandatory for all new/existing

investors to provide additional KYC information such as Income details,

Occupation, association with politically exposed person, net worth etc.

as mentioned in the application form. Subscription requests, without

providing these details, are liable to be rejected. No subscriptions

(whether fresh or additional) and switches pertaining to ‘KYC on-hold’

cases are accepted, unless the investor / unitholder also submits relevant

KYC missing / updated information, which is appropriately updated on

the KRA - KYC.



which their applications / transaction requests for additional subscription

(including switches) is liable to be rejected.

Central KYC Process


interest of India (‘CERSAI’) has been authorised by Government of India

to act as Central KYC Records Registry under Prevention of Money-

Laundering (Maintenance of Records) Rules, 2005 (‘PMLA Rules’).



prescribed that the Mutual Fund/ AMC should capture KYC information

for sharing with CKYCR as per the KYC template prescribed by CERSAI for

uniform and smooth implementation of CKYC norms for onboarding of

new investors in Mutual Funds.


guidelines for implementation of CKYC norms:


regime i.e. a new investor who is new to KRA system and whose KYC

is not registered or verified in the KRA system shall be required to

provide KYC details in the CKYC Form to the Mutual Fund/ AMC.



additional / missing information using Supplementary KYC Form or fill

CKYC Form. The said form is available on Axis Mutual Fund website

www.axismf.com.

c) Details of investors shall be uploaded on the system of CKYCR and a

14 digit unique KYC Identification Number (‘KIN’) will be generated

for such customer.

d) New investors, who have completed CKYC process & have obtained

KIN may quote their KIN in the application form instead of submitting

CKYC Form/ Supplementary KYC Form.

e) AMC/ Mutual Fund shall use the KIN of the investor to download the

KYC information from CKYCR system and update its records.


should submit self-certified copy of PAN card to the Mutual Fund/

AMC.


investor(s) fails to submit information and/or documentation as

mentioned above. In the event of non-compliance of KYC requirements,

the Trustee / AMC reserves the right to freeze the folio of the investor(s).




proof of possession of Aadhar can be accepted as a valid document for

proof of address or proof of identity of investors, provided the investor

redact or blackout his Aadhar number while submitting the applications

for investments.



time.


Who cannot invest 1. Any individual who is a foreign national or any other entity that is not

an Indian resident under the Foreign Exchange Management Act,

1999 (FEMA Act) except where registered with SEBI as a FPI or

otherwise explicitly permitted under FEMA Act/ by RBI/ by any other

applicable authority.

2. Pursuant to RBI A.P. (DIR Series) circular no. 14 dated September 16,

2003, Overseas Corporate Bodies (OCBs) cannot invest in Mutual

Funds.



time.



a. subscriptions received by way of lump sum / switches /systematic

transactions received from Non-resident Indians (NRIs) / Persons

of Indian origin (PIO) / Overseas Citizen of India (OCI) who at the

time of such investment, are present in India and

b. FPIs

5. Such other persons as may be specified by AMC from time to time.

These investors need to submit a physical transaction request along

with such documents as may be prescribed by the AMC/ the

Trustee/ the Fund from time to time.



hold/reject the transaction request/reverse allotted units, as the case

may be, as and when identified by the AMC, which are not in

compliance with the terms and conditions notified in this regard.

The Trustee / the AMC /the Fund reserve the right to change/ modify

the above provisions at a later date.

Where can you

submit the filled up

applications.

Not Applicable


Listing The Scheme is an open ended Scheme under which sale and

repurchase will be made on a continuous basis and therefore listing on

stock exchanges is not envisaged. However, the Trustee reserves the

right to list the units as and when considered necessary in the interest of

Unit holders of the Fund.

Special Products /


during the NFO

Not Applicable


reissue of

repurchased units,

including the

maximum extent, the

manner of reissue,

the entity (the

scheme or the AMC)

involved in the same.


Restrictions, if any,

on the right to freely


units being offered.

Pledge of Units

The Units under the Scheme (subject to completion of lock in period, if

any) may be offered as security by way of a pledge / charge in favour

of scheduled banks, financial institutions, non-banking finance

companies (NBFCs), or any other person. The AMC and / or the ISC will

note and record such Pledged Units. The AMC shall mark a lien only

upon receiving the duly completed form and documents as it may

require. Disbursement of such loans will be at the entire discretion of the

bank / financial institution / NBFC or any other person concerned and

the Mutual Fund assumes no responsibility thereof.

The Pledger will not be able to redeem Units that are pledged until the

entity to which the Units are pledged provides written authorisation to

the Mutual Fund that the pledge / lien charge may be removed. As long

as Units are pledged, the Pledgee will have complete authority to

redeem such Units. Dividends declared on Units under lien will be paid /

re-invested to the credit of the Unit Holder and not the lien holder unless

specified otherwise in the lien letter.

Lien on Units

On an ongoing basis, when existing and new Investors make

Subscriptions, a lien on unit allotted will be created and such unit shall

not be available for redemption until the payment proceeds are realised

by the Scheme. In case a unit holder redeems unit soon after making

purchases, the redemption cheque will not be dispatched until sufficient

time has elapsed to provide reasonable assurance that cheques or

drafts for unit purchased have been cleared.



shall be reversed and the unit allotted earlier shall be cancelled, and a

fresh Account Statement / Confirmation slip shall be dispatched to the

Unit holder. For NRIs, the Scheme may mark a lien on unit in case

documents which need to be submitted are not given in addition to the

application form and before the submission of the redemption request.

However, the AMC reserves the right to change operational guidelines

for lien on unit from time to time.


Subject to the approval of the Boards of the AMC and of the Trustee and

subject also to necessary communication of the same to SEBI, the




prevailing regulations, restriction on/suspension of redemptions / switch-

out of Units of the Scheme, may be imposed when there are

circumstances leading to systemic crisis or event that severely constricts

market liquidity or the efficient functioning of markets such as:







emergencies;




Restriction on / suspension of redemption of Units of the Scheme may be

imposed for a specified period of time not exceeding 10 working days in

any 90 days period.



i. No redemption / switch-out requests upto Rs. 2 lakhs shall be subject

to such restriction.




restriction.



approval of SEBI.



Also refer to the paragraph ‘Suspension of Purchase and Redemption of


Third Party Payment

Avoidance and

additional

documents /




Cash Investments in

mutual funds


small investors, who may not be tax payers and may not have PAN/bank

accounts, such as farmers, small traders/businessmen/workers, SEBI has

permitted receipt of cash transactions for fresh purchases/ additional

purchases to the extent of Rs.50,000/- per investor, per mutual fund, per

financial year subject to:


framed there under; the SEBI Circular(s) on Anti Money Laundering

(AML) and other applicable Anti Money Laundering Rules, Regulations

and Guidelines; and



aforementioned investments shall be paid only through banking

channel.



be displayed on its website viz. as well as at the Investor Service Centres,

once the facility is made available to the investors.


Default Plan/ Option The investors may refer to the paragraph under New Fund offer Section

for applicability of Direct Plan/ Regular Plan under different scenario.

Ongoing Offer

Period


which the scheme

will reopen for

subscriptions/redem

ptions after the

closure of the NFO

period.

The Scheme has reopened for continuous subscription and redemption

from May 02, 2011.

Ongoing price for

subscription

(purchase)/switch-in

(from other

schemes/plans of

the mutual fund) by

investors.


need to pay for

purchase/switch-in.




Schemes. Hence, no entry load is levied for subscription transactions by

the Scheme.





= Rs. 10* (1+NIL)

= Rs. 10

Ongoing price for

redemption (sale)

/switch outs (to

other

schemes/plans of

the Mutual Fund) by

investors.


will receive for

At the Applicable NAV subject to prevailing Exit Load.

Ongoing price for redemption /Switch out (to other Schemes/Plans of the

Mutual Fund) is price which a Unit holder will receive for

redemption/Switch-outs. During the continuous offer of the Scheme, the

Unit holder can redeem the Units at Applicable NAV, subject to payment

of Exit Load, if any. It will be calculated as follows:




redemptions/switch

outs.


price will be:

= Rs. 10* (1-0.02)

= Rs. 9.80



maximum limits prescribed under the SEBI Regulations.

Any change in Load structure will be effective on prospective basis and

will not affect the existing Unit holder in any manner.

However, the Mutual Fund will ensure that the Redemption Price will not

be lower than 93% of the Applicable NAV provided that the difference

between the Redemption Price and the Subscription /Purchase Price at

any point in time shall not exceed the permitted limit as prescribed by

SEBI from time to time, which is currently 7% calculated on the

Subscription/ Purchase Price. The Purchase Price shall be at applicable

NAV.

Cut off timing for

subscriptions/

redemptions/

switches

This is the time

before which your

application

(complete in all

respects) should

reach the official

points of

acceptance.



respect of purchase of units of the Scheme with amount less than Rs. 2

lakhs and the following NAVs shall be applied for such purchase:

1. where the application is received upto 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 receipt of application;

2. 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;

3. where the application is received with an outstation cheque or

demand draft which is not payable at par at the place where it is

received – closing NAV of day on which the cheque or demand

draft is credited.

B. In respect of purchase/ Switch-in application received before the cut-

off timing for units with amount equal to or more than Rs. 2 lakhs, the

closing NAV of the business day on which the funds are available for

utilization i.e. upto 3.00 pm, shall be applicable, irrespective of time of

receipt of application

For allotment of units in respect of purchase in the Scheme under Pt. (B)

above, it shall be ensured that:

i. Application is received before the applicable cut-off time


application are credited to the bank account of the Scheme before

the cutoff time.



Scheme.

For allotment of units in respect of switch-in to the Scheme under Pt. (B)

above from other schemes, it shall be ensured that:


time.







Scheme.



respect of Repurchase of units:

a. where the application received upto 3.00 pm – closing NAV of the

day of receipt of application; and

b. an application received after 3.00 pm – closing NAV of the next

Business Day.

The above mentioned cut off timing shall also be applicable to

transactions through the online trading platform.

In case of Transaction through Stock Exchange Infrastructure, the Date of

Acceptance will be reckoned as per the date & time; the transaction is

entered in stock exchange’s infrastructure for which a system generated

confirmation slip will be issued to the investor.

Where can the

applications for

purchase/redempti

on switches be

submitted?


Minimum amount for

purchase/redempti

on/switches


Rs. 5,000 and in multiples of Re 1/- thereafter

Minimum Additional Purchase / Switch in Amount



There will be no minimum redemption criterion. The Redemption / Switch-

out would be permitted to the extent of credit balance in the Unit

holder’s account of the Plan(s) / Option(s) of the Scheme (subject to

completion of Lock-in period or release of pledge / lien or other

encumbrances). The Redemption / Switch-out request can be made by

specifying the rupee amount or by specifying the number of Units of the

respective Plan(s) / Option(s) to be redeemed. In case a Redemption /

Switch-out request received is for both, a specified rupee amount and a

specified number of Units of the respective Plan(s)/ Option(s), the

specified number of Units will be considered the definitive request. In

case the value / number of available units held in the Unit holder’s folio /

account under the Plan / Option of the Scheme is less than the amount /

number of units specified in the redemption / switch-out request, then

the transaction shall be treated as an all units redemption and the entire

balance of available Units in the folio / account of the Unit holder shall

be redeemed.


request for Redemption only in number of Units which can be fractional

units also. Depository participants of registered Depositories can process

only redemption request of units held in demat mode.


minimum redemption amount/switch-out.

Minimum balance

to be maintained



and consequences

of non-

maintenance.

However, the AMC / Trustee may decide to introduce minimum balance

requirements later, if they so deem fit. In such case, in the event of non-

maintenance of minimum balance for any particular situations, the Unit

may be compulsorily redeemed.



redeem all the Unit in the folio and send the Redemption proceeds to

the Unit holder.

Special Products

available

SYSTEMATIC INVESTMENT PLAN (SIP)


Enrolment Form at the Official Point(s) of Acceptance. An Investor shall

have the option of choosing any date of the Month (other than 29th, 30th

and 31st) as his SIP date. Minimum amount and minimum installments for

monthly and yearly frequency under SIP Facility is as follows:

Frequency

under SIP Facility

Minimum

Installments

Minimum SIP amount

Monthly 6 Installments Rs. 1,000/- and in multiple of Re.

1/-

Yearly 3 Installments Rs. 12,000/- and in multiple of Re.

1/-

If the SIP period is not specified by the unit holder then the SIP enrolment

will be deemed to be for perpetuity and processed accordingly.


available, the SIP for that month would be rejected. Allocation to a

particular scheme or pro–rata allocation to schemes will not be carried

out.



application while the remaining cheques shall be post dated cheques

which shall be dated uniformly. Investors can invest in SIP by providing

post-dated cheques to Official Point(s) of Acceptance. An Investor is

eligible to issue only one cheque for each month in the same SIP

enrolment form. All SIP cheques should be of the same amount and

same date option. Cheques should be drawn in favour of the Fund and

“A/c Payee only”. A Letter will be forwarded to the Investor on successful

registration of SIP. The Post Dated cheques will be presented on the

dates mentioned on the cheque and subject to realization of the

cheque.

ii. SIP through National Automated Clearing House (NACH) Platform

/Direct Debit facility

‘Investors / Unit holders may enroll for SIP Direct Debit Facility available

with specified Banks / Branches. In order to enroll for SIP Direct Debit

Facility, an Investor must fill up the Application Form for SIP Direct Debit

facility.

In case of SIP with payment mode as Direct Debit/Standing Instructions,

Investors shall be required to submit a cancelled cheque or a photocopy

of a cheque of the bank account for which the debit mandate is

provided. The facility will also be available through standing

instructions/direct debit given by the investor (with all payment

installments being made through standing instructions/direct debit).

However, the SIP facility with direct debit will be available through

selected Banks. The Asset Management Company reserves the right to


add/modify/delete from the list of banks through whom such facility will

be available to the investors.

The unit holders can also make payment of SIP instalments through NACH

facility. NACH is a centralized system, launched by National Payments

Corporation of India (NPCI) with an aim to consolidate multiple NACH

mandates. This facility will enable the unit holders of the Fund to make SIP

investments through NACH by filling up the SIP Registration cum mandate

form. A Unique number will be allotted to every mandate registered

under NACH called as Unique Mandate Reference Number (“UMRN”)

which can be used for SIP transactions. The NACH facility shall be

available subject to terms and conditions contained in the SIP

registration Mandate Form and as prescribed by NPCI from time to time.

All SIP cheques/payment instructions should be of the same amount and

same date (excluding first cheque). However, there should be a gap of

30 days between first SIP Installment and the second installment in case

of SIP.

Investors will have the right to discontinue the SIP facility at any time by

sending a written request to any of the Official Point(s) of Acceptance.

Notice of such discontinuance should be received at least 20 days prior

to the due date of the next debit. On receipt of such request, the SIP

facility will be terminated. It is clarified that if the Fund fails to get the

proceeds from three Installments out of a continuous series of Installments

submitted at the time of initiating a SIP, the SIP is deemed as

discontinued.

Units will be allotted at the Applicable NAV of the respective dates on

which the investments are sought to be made. In case the date falls on a

Non-business day, the immediate next Business Day will be considered for

this purpose.

An extension of an existing SIP will be treated as a new SIP on the date of

such application, and all the above conditions need to be met with.

The Load structure prevailing at the time of submission of the SIP

application (whether fresh or extension) will apply for all the Installments

indicated in such application.

The AMC has the authority to make available SIP by way of a salary

savings scheme for a group of employees through an arrangement with

their employers.

For applicable Load on Purchases through SIP, please refer paragraph

‘Load Structure’ given in the document.

The AMC reserves the right to change / modify Load structure and other

terms and conditions under the SIP prospectively at a future date. Please

refer to the SIP Enrolment Form for terms & conditions before enrolment.


Unit holders having registered SIP in the specified scheme(s) of the Fund

can use SIP Switch Facility to terminate SIP in the existing scheme and

initiate SIP in another specified scheme.

SIP Switch Facility shall be available to unit holders under all open ended

schemes of the Fund except for Axis Liquid Fund, Axis Overnight Fund,


Axis Children’s Gift Fund and Exchange Traded Funds.


1. SIP Switch Facility can be availed by unit holders only after

completion of minimum installments specified for SIP registration in

the Switch-out (existing) scheme.

2. SIP Switch Facility will be considered as termination of SIP in Switch-

out scheme and subscription of SIP in Switch-in scheme.

3. SIP in Switch-in scheme will be subject to the terms of offering

specified in the SID of Switch-in scheme.

4. SIP registration end date should ensure compliance of minimum SIP

installments prescribed in Switch-in scheme.

5. SIP Switch Facility is available for changing SIP investment mandate

from one scheme to another specified scheme. The same is also

available for switch between Plans/Options offered under same

scheme. Further, the amount of installment, date and frequency of

SIP and SIP end date of Switch-out scheme shall remain same as

under Switch-in scheme.


7. SIP Switch Facility is not available for SIP subscribed with post-dated

cheques.

8. Investors will have the option of changing the distributor code from

direct to regular/ regular to direct.

9. Unit holder must submit request for SIP Switch at least 21 days before

the SIP due date.


Unitholder can enroll multiple SIPs in different schemes by submitting one

single application form/ payment instruction. All other terms and

conditions applicable to SIP Facility shall be applicable for the facility.


The Facility enables unitholders to increase the SIP installment amount at

pre-defined intervals by a fixed amount or anytime by a specified

amount as per the request (in case of ‘As & When frequency’).


1. Top-Up Amount: The minimum amount of Top-Up shall be Rs. 500/-

and in multiple of Re. 1/- for all schemes. In case of discrepancy in

the Top-Up amount, SIP will be registered without Top-Up Facility.

2. Top-Up facility is available for SIP registered with Monthly frequency

only.

3. Top-Up Frequency: Top-Up frequency is available only on ‘Half

Yearly’, ‘Yearly’ and ‘As & When frequency’. In case the Top-Up

frequency is not specified / is not legible, the default frequency will

be ‘Yearly’, provided Top-Up amount is mentioned clearly.

4. The Facility shall be available for SIP Investments through Electronic

Debit arrangement/ NACH (National Automated Clearing House) or

as may be specified by AMC.

5. The Facility can be availed by filling up prescribed form at time of SIP

Facility enrolment. Existing SIPs cannot be converted into the Facility.

6. The application form for availing the Facility should be submitted 21

days before the first SIP installment date.

7. The gap between SIP registration and first Top-Up request under 'As &

When' frequency and two instructions under ‘As & When’ frequency

should be at least 3 months.

8. The Facility shall continue till the end date of the SIP. The Facility can


be discontinued only by cancelling the SIP.

All other terms and conditions applicable to SIP Facility shall be


Systematic Investment Plan (SIP) Pause facility:

Investors shall have an option to temporarily pause the SIP installments for

a specified period of time. Upon expiry of the specified period, the SIP

installments would re-start automatically.

The terms and conditions of SIP Pause facility are as follows:

1. Under this Facility, investor has an option to temporarily pause their

registered Monthly SIP facility for a period of three months by

submitting prescribed application form at any of the Official Points of

Acceptance of Axis Mutual Fund or by submitting application in other

modes made available by AMC.

2. The SIP Pause facility can be availed by investor only two times during

the entire tenure of SIP.

3. The valid application to avail the Facility should be submitted to AMC

at least 10 calendar days prior to the next Monthly SIP installment

date (i.e. excluding the request date and the next SIP installment

date). Investor cannot cancel the SIP Pause facility once requested.

4. The SIP Pause facility is only available under Monthly frequency. SIP

pause facility is available only for investors with instalment amounts

equal to or greater than SIP’s greater than `Rs. 1,000/-SIP Pause

facility can only be availed by investors who has completed 6 valid

SIP installments.

5. The SIP shall restart automatically from the immediate next eligible

installment after the completion of specified pause period.

6. This facility is not available for the SIPs sourced/registered through MF

Utilities India Pvt. Ltd. (“MFUI”), Stock Exchange Platforms of NSE & BSE

and Channel partner platforms, as for such SIPs, the SIP mandates are

registered by respective entities or for SIPs which are registered by

investors as Standing Instructions with their Banks.

7. SIP Pause facility is not available for investors availing iPlus SIP Facility

or Flex SIP facilities. For Top-up SIP facility, the top-up frequency would

remain unchanged even if there is a pause in SIP instalment.

8. In case of multiple SIPs registered in a scheme, SIP Pause facility will

be made applicable only for those SIP instalments whose SIP date,

frequency, amount and Plan is specified clearly in the form.

AMC/Fund reserves the right to amend the terms and conditions of the

SIP Pause facility and/or withdraw the said facility.

PURCHASE/REDEMPTION OF UNITS THROUGH STOCK EXCHANGE

INFRASTRUCTURE


mutual fund trading platforms of the Bombay Stock Exchange (“BSE”),

National Stock Exchange (“NSE”) and Indian Commodity Exchange Ltd.

(‘ICEX’) – with NSDL and CDSL as depositories for such units of the mutual

fund.

NSE has introduced Mutual Fund Service System (“MFSS”) Platform and

BSE has introduced BSE StAR MF Platform and ICEX has introduced

ICEXMF platform (Stock Exchange Platform).

The following are the salient features of the MFSS / BSE StAR MF Platform /

ICEXMF:


1. The facility i.e. purchase/redemption/SIP (Systematic Investment Plan)

is available for both existing and new investors.

2. The Investors will be eligible to purchase/redeem units of the Scheme.

The facility can be availed by both, investors under Direct Plan offered

by the schemes and investors investing through Distributors under the

Regular Plan offered by the schemes




All trading members of BSE, NSE & ICEX who are registered with AMFI

as Mutual Fund Distributor and also registered with BSE &/ or NSE &/or

ICEX as Participants ("AMFI registered stock exchange brokers") will be

eligible to offer this facility to investors and shall be treated as Official

Point of Acceptance.


through clearing members of the registered Stock Exchanges. Further,

the Depository Participants of registered Depositories are permitted to

process only redemption request of units held in demat form.


Official Points of Acceptance (OPA) of Axis Mutual Fund and

conditions stipulated in SEBI circular no. SEBI/IMD/CIR





5. The units of the Scheme are not listed on BSE, NSE & ICEX and the

same cannot be traded on the Stock Exchange. The window for

purchase/redemption of units on MFSS/ BSE StAR / ICEXMF Platform

will be available between 9 a.m. and 3 p.m. or such other timings as

may be decided.

6. Transactions only in demat mode will be currently permitted through

MFSS / BSE StAR MF / ICEXMF Platform.

7. Investors will be able to purchase/redeem units of the Scheme in the

following manner:

(i) Investors shall receive redemption amount (if units are redeemed)

and units (if units are purchased) through broker/ clearing

member's pool account. Axis AMC/Axis Mutual Fund shall pay

proceeds to the broker/clearing member (in case of redemption)

and broker/clearing member in turn to the respective investor and

similarly units shall be credited by the AMC/ Mutual Fund into

broker/clearing member's pool account (in case of purchase) and

broker/clearing member in turn shall credit the units to the

respective investor's demat account.

(ii) Payment of redemption proceeds to the broker/clearing members

by AMC/Mutual Fund shall discharge AMC/Mutual Fund of its

obligation of payment to individual investor. Similarly, in case of

purchase of units, crediting units into broker/clearing member pool

account shall discharge AMC/Mutual Fund of its obligation to allot

units to individual investor.



9. For all the transactions done through these platforms, separate Folio.

No. shall be allotted to the existing and the new investors. The bank


a/c number, address, nomination details etc. shall be the same as

per the Demat account of the investor. In case of non-financial

requests/applications such as change of address, change of bank

details, etc. for units held in demat mode investors should approach

the respective Depository Participant(s) and OPAT of AMC for units

held in physical mode.

10. Investors will have to comply with Know Your Customer (KYC) norms

as prescribed by BSE/NSE/CDSL/ NSDL/ICEX and Axis Mutual Fund to

participate in this facility.

11. Investors should get in touch with Investor Service Centres (ISCs) of

Axis Mutual Fund for further details.

Transaction through Stock Exchange infrastructure using services of

Distributor/ SEBI Registered Investment Advisor:


circular no. CIR/MRD/DSA/33/2014 dated December 9, 2014, has

permitted Mutual Fund Distributors (“MF Distributors”) and SEBI circular no.

SEBI/HO/MRD/DSA/CIR/P/2016/113 dated October 19, 2016 permitted

SEBI Registered Investment Advisors (“RIAs”) to use recognized Stock

Exchange infrastructure to purchase/redeem units directly from Mutual

Fund/AMC on behalf of their clients.


platform of NSE (in addition to other intermediaries) and / or of BSE StAR

MF platform of BSE and/ or ICEXMF platform of ICEX to purchase and

redeem units of schemes of the Fund.

In addition to the guidelines specified for transacting through MFSS/BSE

StAR MF / ICEXMF Platform above, following guidelines shall be


NMF-II / BSE StAR MF / ICEXMF Platform:

1. MF distributors/RIAs shall not handle pay out/pay in of funds as well as

units on behalf of investor. Pay in will be directly received by

recognized clearing corporation and payout will be directly made to

investor account. In the same manner, units shall be credited and

debited directly from the demat account of investors.


permitted through NMF-II / BSE StAR MF / ICEXMF Platform.


exchange infrastructure is available subject to such operating guidelines,

terms and conditions as may be prescribed by the respective Stock

Exchanges from time to time.


Investors can opt for the Systematic Transfer Plan by investing a lumpsum

amount in one scheme of the Fund and providing a standing instruction

to transfer sums at following intervals into any other scheme (as may be

permitted by the Scheme Information Document of the respective

schemes) of the Fund.

STP


Minimum

Amount* (in Rs.)

Minimum

Installment



Fortnightly Alternate 1,000/- 6


Wednesday



In case Day of Transfer has not been indicated under Daily and Weekly

frequencies, Wednesday shall be treated as Default day. Further, in case

of Monthly and Quarterly Frequency, if the STP date and Frequency has

not been indicated, Monthly frequency shall be treated as Default

frequency and 10th shall be treated as Default Date.


frequency shall be treated as Default frequency and 10th shall be treated

as Default Date.

Investors could also opt for STP from an existing account by quoting their

account / folio number. A minimum period of 7 days shall be required for

registration under STP. Units will be allotted/redeemed at the applicable

NAV of the respective dates of the Scheme in which such investments/

withdrawals are sought from the Scheme.



automatically if all Units are liquidated or withdrawn from the account or

upon the Funds’ receipt of notification of death or incapacity of the Unit

holder.

The AMC reserves the right to introduce STPs at any other frequencies or

on any other dates as the AMC may feel appropriate from time to time.

In the event that such a day is a Holiday, the transfer would be affected

on the next Business Day.

Further, in case of a last STP, where the balance amount in a folio is less

than the STP amount, the entire amount will be transferred to the

transferee scheme.


direct investor with the mutual fund, the investment will cease to be a

part of the facility. Investors may note that investments under such

facilities would be based on advice from the distributor /Financial advisor

and the Asset Management Company acts purely in capacity as a

facilitator for such transactions. The distributor(s) may choose to

modify/change or discontinue the above stated facility. In such a case

the investors may continue their investment with the AMC/any other

distributor.

For further details/clarifications investors may contact the distributor(s) or

the ISCs of the AMC.

Note:

(a) In case of Systematic Investment Plan (SIP) / Systematic Transfer Plan

(STP) etc. registered prior to January 1, 2013 without any distributor

code under the Axis Dynamic Bond Fund (Regular Plan), installments

falling on or after January 1, 2013 will automatically be processed

under the Direct Plan.

(b) Investors who had registered for Systematic Investment Plan facility

prior to January 1, 2013 with distributor code and wish to invest their

future installments into the Direct Plan, shall make a written request

to the Fund in this behalf. The Fund will take at least 15 days to


process such requests. Intervening installments will continue in the

Axis Dynamic Bond Fund (Regular Plan Plan).

In case of (a) and (b) above, the terms and conditions of the existing

registered enrolment shall continue to apply.

In case of Systematic Transfer Facilities (registered with Distributor Code)

were registered under the Axis Dynamic Bond Fund (Regular Plan) prior to

January 1, 2013 the future installments shall continue under the Regular

Plan.

In case such investors wish to invest under the Direct Plan through these

facilities, they would have to cancel their existing enrolments and register

afresh for such facilities.


Under this facility, the investors can opt for the Systematic Transfer Plan by

investing a lump sum amount in one scheme of the Fund and providing a

standing instruction to transfer capital appreciation at regular intervals -

Weekly, Monthly and Quarterly into any other scheme (as may be

permitted by the Scheme Information Document of the respective

schemes) of Axis Mutual Fund.


date of the CapSTP under the folio, till the first transfer date. Subsequent

capital appreciation, if any, will be the capital appreciation between

the previous CapSTP date (where CapSTP has been processed and paid)

and the next CapSTP date

There are three options available under CapSTP viz. Weekly, Monthly and

Quarterly option, the details of which are given below:

CapSTP


Minimum

Amount* (in

Rs.)

Minimum

Installment


Monthly 1st, 7th, 10th, 15th or 25th 500/- 6




Schemes and ‘Minimum Application Amount’ specified in the Scheme

Information Document of the respective designated Transferee Schemes

will not be applicable for CapSTP.


enrolment period in the enrolment form, failing which the form is liable to

be rejected.


and/or Frequency (Monthly/ Quarterly) has not been indicated, Monthly

frequency shall be treated as Default frequency and 10th shall be treated

as Default Date. In case of weekly frequency, Wednesday shall be

treated as Default day.

In case none of the frequency is selected then Monthly frequency shall

be treated as Default frequency and 10th shall be treated as Default

Date.








under CapSTP. Units will be allotted/redeemed at the applicable NAV (of

the respective date(s)) of the Scheme from/to which such




from time to time. In the event that such a day is a Holiday, the transfer

would be affected on the next Business Day.




withdrawn from the account or upon the Funds’ receipt of notification of

death or incapacity of the Unit holder. Further, in case where the



FLEX - SYSTEMATIC INVESTMENT PLAN/ SYSTEMATIC TRANSFER PLAN ("Flex

SIP/ Flex STP")


1. Flex SIP is a facility wherein an investor can opt to invest variable

amount linked to the value of his investments in any of the existing

open ended scheme(s) of Axis Mutual Fund (“Investee scheme”), on

pre-determined date. This facility allows investors to take advantage

of market movements by investing higher when the markets are low

and vice-versa.

2. Flex STP is a facility wherein an investor under any of the existing open

ended scheme(s) of Axis Mutual Fund can opt to transfer variable

amount linked to value of his investments, on predetermined date

from designated open-ended Scheme(s) of Axis Mutual Fund

("Transferor Scheme") to the Growth Option of designated open-

ended Scheme(s) ("Transferee Scheme").

3. A single Flex SIP/STP Enrolment Form can be filled for investment/

transfer into one Scheme/Plan/Option only.

4. In case of valid enrolment forms received, indicating choice of

option other than the growth option in the Investee / Transferee

Scheme, it will be deemed as the growth option in the Investee /

Transferee Scheme and processed accordingly.

5. In case of Flex STP, unit holders' details and mode of holding (single,

jointly, anyone or survivor) in the Transferee Scheme will be as per the

existing folio number of the Transferor Scheme. Units will be allotted

under the same folio number. Unitholders' name should match with

the details in the existing folio number, failing which the enrolment

form is liable to be rejected.


under Flex STP:

Frequency under Flex-STP Minimum Minimum Flex-STP


Facility Installments amount* (Rs.)

Monthly (1st, 7th,10th,15th

or 25th)

6 Rs. 1,000/- and in

multiple of Rs. 1/-

Quarterly (1st, 7th,10th,15th

or 25th)

2 Rs. 3,000/- and in

multiple of Rs. 1/-


under Flex SIP:

Frequency under Flex-

SIP Facility

Minimum

Installments

Minimum Flex-SIP

amount (Rs.)

Monthly 12 Installments

for all schemes

Rs. 1,000/- and in

multiple of Rs. 1/-

Yearly 3 Installments

for all schemes

Rs. 12,000/- and in

multiple of Rs. 1/-



Under the Flex STP – (as per the Frequency) unit holders will be eligible

to transfer fixed amount to be transferred per installment OR the

amount as determined by the following formula whichever is higher:


current installment X fixed amount to be transferred per installment) -

market value of the investments through Flex STP in the Transferee

Scheme on the date of transfer whichever is Higher

In case of Flex STP, if the amount (as specified by the formula) to be

transferred under STP is not available in the Transferor Scheme in the

unit holder's account, the residual amount will be transferred to the

Transferee Scheme and Flex STP will be closed.


Under the Flex SIP – (as per the Frequency) unit holders will be eligible

to invest fixed amount to be invested per installment OR the amount

as determined by the following formula whichever is higher:


current installment X fixed amount to be invested per installment) -

market value of the investments through Flex SIP* in the Investee

Scheme whichever is Higher

*The installment value of Flex SIP will be determined on the basis of

NAV on 10th day (T-10) before the installment date. If T-10th day falls

on a Non-Business day, then valuation will be done on T-11th day.


designated bank account and the debit instruction fails then Flex SIP

will be stopped.

9. If the NAV falls continuously throughout the Flex STP period, number

of installments may be less than those mentioned on application

form.

10. The first Flex SIP/STP instalment will be processed for the fixed

instalment amount specified by the unit holder at the time of

enrolment. From the second Flex SIP/STP instalment onwards, the

investment/ transfer amount shall be computed as per formula stated

above.

11. In case the date of investment/ transfer falls on a Non-Business Day,


the immediate next Business Day will be considered for the purpose

of determining the applicable NAV.

12. Once the Flex SIP/ STP have been stopped the unit holder needs to

provide a new request to start Flex SIP/ STP.

13. The redemption/ switch-out of units allotted in the Investee/

Transferee Scheme shall be processed on First in First out (FIFO) basis.

If there are other financial transaction (purchase, redemption or

switch) processed in the Investee/ Transferee scheme during the

tenure of Flex SIP/ STP, the Flex SIP / STP will be processed as normal

SIP / STP for the rest of the instalments for a fixed amount.

14. In respect of Flex SIP / STP enrollments made in any of the existing

open ended Scheme(s), the Load Structure prevalent at the time of

enrollment shall be applicable to the investors during the tenure of

the Flex SIP / STP. Load structure for investments through Flex SIP / STP

to the Schemes eligible for this facility:



Scheme to the Transferee Scheme shall be affected by switching

units of Transferor Scheme at applicable NAV, after payment of

exit load, if any, and subscribing to the units of the Transferee

Scheme at Applicable NAV.


Applicable Exit Load, if any, in the Investee / Transferee Schemes

Plan /Option as on the date of enrollment will also be levied. For

Scheme load structure please refer to SID/ KIM or contact the

nearest Investor Service Centre (ISC) of Axis Mutual Fund or visit

our website www.axismf.com.

15. Flex STP will be automatically terminated if all units are liquidated or

withdrawn from the Transferor Scheme or pledged or upon receipt of

intimation of death of the unit holder.

16. The provision of 'Minimum Redemption Amount' as specified in the

Scheme Information Document of the respective designated

Transferor Scheme(s) and 'Minimum Application Amount' specified in


Transferee Scheme(s) will not be applicable for Flex SIP/ STP.

17. The request for Flex SIP/ STP should be submitted at least 25 calendar

days before the first SIP and at least 7 calendar days before STP date.

18. Unit holders have a right to discontinue the Flex SIP/ STP facility at any

time by sending a written request to the ISC. On receipt of such

request, the Flex SIP / STP facility will be terminated within 20 working

days.


Systematic Transfer Plan are applicable to Flex SIP and STP

respectively.


Flex SIP/ STP that transfers Rs.3,000/- every month from the Debt Fund to

an Equity Fund.

Transferor Scheme: Axis Credit Risk Fund


Option


Amount of Transfer per

Installment

Rs 3,000/-







i. Total units allotted up to the date of last installment i.e. March 10,

2013 is assumed as 822.73;

ii. NAV of Axis Bluechip Fund - Growth Option on April 10, 2013 is


iii. Hence the market value of the investment in the Investee /

Transferee Scheme on the date of investment/ transfer is Rs. 7,

404.55[822.73X 9].


a) Fixed amount specified at the time of enrolment:

Rs.3,000/-

Or

b) As determined by the formula:

(3,000 X 4) – 7,404.55 = Rs. 4,595/-

a) or b)Whichever is Higher.

Hence, on April 10, 2013, the installment amount to be transferred to the

Transferee Scheme will be Rs. 4,595/-


Investee Scheme: Axis Bluechip Fund - Growth Option





Calculation of Flex SIP instalment amount for the 4th instalment i.e. April

10, 2013

i. Total units allotted up to the date of last installment i.e. March 10,

2013 is assumed as 822.73;

ii. NAV of Axis Bluechip Fund - Growth Option on T-10th day* is


iii. Hence the market value of the investment in the Investee

Scheme on T-10th day is Rs. 7,404.55[822.73X 9].


a. Fixed amount specified at the time of enrolment:

Rs.3,000/-

Or

b. As determined by the formula:

(3,000 X 4) – 7,404.55 = Rs. 4,595/-



Investee Scheme will be Rs. 4,595/-

*The installment value of Flex SIP will be determined on the basis of NAV

on 10th day (T-10) before the installment date. In the above example T-

10th day will be 31st March 2013

Investors are advised to read the SID/ KIM of the Transferee Scheme(s)

and Statement of Additional Information carefully before investing. The

SID/ KIM of the respective Scheme(s) are available with the ISCs of Axis

Mutual Fund, brokers/distributors and also displayed on the Axis Mutual

Fund website i.e. www.axismf.com




pre-specified dates. The SWP allows the Unitholder to withdraw a

specified sum of money each month/ quarter from his investments in the

Scheme.

The amount thus withdrawn by redemption will be converted into Units at

Applicable NAV based prices and the number of Units so arrived at will

be subtracted from the Units balance to the credit of that Unitholder.

Unitholders may start the facility/ change the amount of withdrawals or

the period of withdrawals by giving a 15 days written intimation/notice.

The SWP may be terminated by a Unitholder by giving 15 days written

intimation/ notice and it will terminate automatically if all the Units are

liquidated or withdrawn from the account or the holdings fall below the

SWP installment amount.

There are four options available under SWP viz. Monthly option, quarterly

option, Half Yearly and Yearly option. The details of which are given

below:

Monthly

Option

Quarterly

Option

Half Yearly

Option

Yearly

Option

Minimum value of SWP Rs. 1,000/-

Additional amount in

multiples of

Re.1

Dates of SWP

Installment

1/5/10/15/25*

Minimum No of SWP Six Four Four Two

* In the event that such a day is a non-business day, the withdrawals

would be affected on the next business day.



amounts, dates and frequency.


completed Systematic Withdrawal enrolment Form at any of the Investor

Service Centres (ISCs)/Official Points of Acceptance (OPAs). The AMC /

Trustee reserve the right to change / modify the terms and conditions

under the SWP prospectively at a future date.

SWITCHING OPTIONS



their Unit holdings in the Scheme to any other Scheme offered by the








Scheme at Applicable NAV, subject to Exit Load, if any and reinvestment

of the Redemption proceeds into another Scheme offered by the Mutual

Fund at Applicable NAV and accordingly the Switch must comply with

the Redemption rules of the Switch out Scheme and the Subscription


rules of the Switch in Scheme.

(b) Intra -Scheme Switching option

Unit holders under the Scheme have the option to Switch their Units

holding from one option to another option (i.e. Growth to Dividend and

vice-a-versa). The Switches would be done at the Applicable NAV based

prices and the difference between the NAVs of the two options will be

reflected in the number of Units allotted.

Switching shall be subject to the applicable “Cut off time and Applicable

NAV” stated elsewhere in the Scheme Information Document. In case of

“Switch” transactions from one scheme to another, the allocation shall

be in line with Redemption payouts.

TRANSACTION ON FAX

In order to facilitate quick processing of transaction and / or instruction of

investment of investor the AMC/ Trustee/ Mutual Fund may (at its sole

discretion and without being obliged in any manner to do so and without

being responsible and/ or liable in any manner whatsoever) accept and

process any application, supporting documents and / or instructions

submitted by an investor / Unit holder by facsimile (Fax Submission) and

the investor / Unit holder voluntarily and with full knowledge takes and

assumes any and all risk associated therewith. The AMC / Trustee/ Mutual

Fund shall have no obligation to check or verify the authenticity or

accuracy of Fax Submission purporting to have been sent by the investor

and may act thereon as if same has been duly given by the investor. In

all cases the investor will have to immediately submit the original

documents/ instruction to AMC/ Mutual Fund.

ONLINE TRANSACTIONS


Purchase/ Redemption / Switch of Units by electronic mode through the

AMC website/Mobile Application/Whatsapp. The Subscription proceeds,

when invested through this mode, are by way of direct debits to the

designated bank through payment gateway. The Redemption proceeds,

(subject to deduction of tax at source, if any) through this mode, are

directly credited to the bank account of the Investors who have an

account at the designated banks with whom the AMC has made

arrangements from time to time or through NEFT/RTGS or through

cheque/Payorder/Demand draft issuance. The AMC will have right to



Investment amount through this facility may be restricted by the AMC

from time to time in line with prudent risk management requirements and

to protect the overall interest of the Investors.

For details of the facility, investors are requested to refer to the website of

the AMC.

TRANSACTION FACILITY ON ELECTRONIC PLATFORMS/ WHATSAPP

Investors will be allowed to transact in the Schemes using WhatsApp

Facility. The facility will be available to existing Resident Individual

investors.

To avail this facility, investor will have to initiate message / request


through WhatsApp to “+91-7506771113” through their registered mobile

number. The investor transaction / service requests will be enabled after

appropriate verification of the investor.

The transactions / services through this facility shall be subject to such

limits, operating guidelines and terms & conditions as may be prescribed

by Axis MF from time to time.

Online modes (including WhatsApp Facility) and other various digital

platforms offered by Axis Mutual Fund shall be treated as Official Point of

Acceptance. The uniform cut - off timing as prescribed by SEBI from time

to time and mentioned in the SID and KIM of the Scheme shall be

applicable for transactions received through these platforms.

TRANSACTIONS THROUGH ELECTRONIC PLATFORM(S) OF KFIN

TECHNOLOGIES PVT. LTD.

Investors will be allowed to transact through

https://mfs.kfintech.com/mfs/, an electronic platform provided by M/s.

KFin Technologies Pvt. Ltd., Registrar & Transfer Agent, in Schemes of Axis

Mutual Fund (except Axis Gold ETF and Axis Nifty ETF). The facility will also

be available through mobile application of KFin Technologies Pvt. Ltd..


Regulations, 1996 and as mentioned in SID and KIM of the Scheme will be

applicable for transactions received through the above electronic

platform and the time of receipt of transaction recorded on the server(s)

of KFin Technologies Pvt. Ltd. will be reckoned as the time for the purpose

of determining applicability of NAV, subject to credit of funds to bank

account of scheme, wherever applicable.


may be prescribed by KFin Technologies Pvt. Ltd. or as may be specified

by Axis AMC from time to time. For operating guidelines and terms and

conditions, investors are requested to visit https://mfs.kfintech.com/mfs/.

Time of receipt of transaction recorded on the server(s) of KFin

Technologies Pvt. Ltd. will continue to be reckoned for electronic

transactions received through AMC website/ Distributor website/

applications etc subject to credit of funds to bank account of scheme,

wherever applicable.

ONLINE SCHEDULE TRANSACTION FACILITY (‘THE OST FACILITY’/ ‘THE

FACILITY’):






schemes of Axis Mutual Fund (except Exchange Traded Funds),

subject to completion of lock-in, if any.




unitholders after completion of OTM Mandate / Easycall mandate/

equivalent mandate registration process and as per limits specified




therein.

4. Under the Facility the transaction can be scheduled to be executed

on a specified date which shall be within 30 calendar days from the

date of the instruction. Such specified date shall be a business day. In

case the scheduled transaction date falls on a non-business day, the

transaction will be executed on the immediately following business

day.


website of Axis AMC i.e. www.axismf.com. Axis AMC may extend the

Facility to other transaction platforms from time to time, at its

discretion.



transaction date.

7. The triggered transaction on the scheduled date shall be considered

as time stamped and will be executed on the specified date at the

applicable NAV of the relevant scheme. In case the specified date

happens to be a non-business day in debt schemes but is a business

day in equity schemes, switch-out from equity schemes will be

processed on the specified date, while the switch-in to debt/liquid

schemes will be processed on the next business day.


minimum subscription/additional subscription application and other

terms and conditions of the relevant scheme as per SID applicable

on the specified date.


amount is not available for subscription or sufficient number of units /

amount is not available for redemption.










conditions or to make operational rules for operation of the Facility from

time to time.

EASY CALL FACILITY


(Anyone or Survivor)” basis in their own capacity shall be eligible to avail

of Easy Call facilities for permitted transactions inter alia on the following

terms and conditions (“Terms and Conditions” mean the terms and

conditions set out below by which the Facility shall be used/availed by

the Investor/s and shall include all modifications and supplements made

by AMC thereto from time to time).


Purchase/ Redemption / Switch of Units over phone. Initial Investment has

to be through physical mode wherein he has to sign a one time debit

mandate for bank accounts pertaining to designated banks with which

the AMC may have an arrangement. This facility is extended to the bank

with which the Fund would have an arrangement from time to time.



Investment amount may be restricted by the AMC from time to time in

line with prudent risk management requirements and to protect the

overall interest of the Investors.

Investor will be allowed transactions over phone after 30 days from the

date of submission of one time mandate. Investor will not be permitted to

avail the Easy call facility for Redemptions/Switch transactions if bank

mandate is changed with in last 15 days. AMC will have right to modify


the Investor. AMC retains the right to maintain call records of the

communication with investors, for lawful purposes.










promptly. If the Investor/s believes that there has been a mistake in any


effected, the Investor/s shall notify the AMC immediately. If the Investor/s

defaults in intimating the discrepancies in the statement within a period

of fifteen days of receipt of the statements, he waives all his rights to raise

the same. By opting for the facility the Investor/s hereby irrevocably

authorizes and instructs the AMC to act on his /her behalf and to do all

such acts as AMC may find necessary to provide the Facility.





Investor/s for an oral or written confirmation of any transaction request


Account of the Investor/s.


discretion suspend the Facility in whole or in part at any time without prior

notice.



The Investor/s shall take responsibility for all the transactions conducted

by using the Facility and will abide by the record of transactions

generated by the AMC. Further, the Investor/s confirms that such records

generated by the AMC shall be conclusive proof and shall be binding for

all purposes and may be used as evidence in any proceedings and that

the investor(s) unconditionally waives all objections in this behalf.





agrees that all calls received shall be eligible for applicable NAV subject

to necessary formalities to be complied by the AMC in case of


time.



AMC may decide from time to time will not be permitted using the Easy

Call facility.


Directors, employees, representatives and service providers of the AMC,

Axis Mutual Fund and Trustees (indemnified parties) from and against all

actions, claims, demands, liabilities, obligations, losses, damages, costs

and expenses of whatever nature (whether actual or contingent) directly

or indirectly suffered or incurred, by the indemnified parties whatsoever

arising from or in connection with the Facility. The Investor/s shall not hold

the AMC liable and shall keep it indemnified for the following:

1) For any transaction using the Facilities carried out in good faith by the

AMC on instructions of the Investor/s.







of joint account/s having mode of operations as ““Anyone or

survivor”.



question or dispute) that the instructions given are not genuine or are

otherwise improper, unclear, vague or raise a doubt.



MISCELLANEOUS:


introduced without any charges being levied; in case charges are to

be levied on a future date he agrees to pay such charges and


services.


Conditions, will be referred to the arbitration of a sole arbitrator to be

appointed by the AMC, in accordance with the Arbitration &



Funds) Regulations, 1996 as amended from time to time and includes

Guidelines, Circular press release or Notification that may be issued.

EASY SMS FACILITY


completed by the investor to avail this facility). For details of the

registration process, please contact our Investor Service Centres/website

of the AMC.

All individual investors applying on “Sole” or “Joint (Anyone or Survivor)”


basis in their own capacity shall be eligible to avail the facility for

permitted transactions i.e. for lump sum purchase, redemption and

switch transactions on the below mentioned terms and conditions:

“Terms and Conditions” mean the terms and conditions set out below by

which the Facility shall be used/availed by the Investors and shall include

all modifications and supplements made by AMC thereto from time to

time.





would have an arrangement from time to time. Transaction amount may

be restricted by the AMC from time to time in line with prudent risk


Investors. Investor will be allowed transactions over SMS after 30 days

from the date of submission of one time mandate. Investor will not be

permitted to avail the facility for Redemptions/Switch transactions if bank

mandate is changed within last 15 days. AMC will have right to modify


the Investor.






This facility can be availed only through the registered mobile number of

the Investor.


/facilitate the Investors and offered at the sole discretion of the AMC. The

AMC is not bound and/or obliged in any way to give access to Facility to

Investors. The Investors shall check his/her account records carefully and

promptly. If the Investors believe that there has been a mistake in any


effected, the Investors shall notify the AMC immediately. If the Investors

defaults in intimating the discrepancies in the statement within a period

of fifteen days of receipt of the statements, he waives all his rights to raise

the same in favour of the AMC, unless the discrepancy /error is apparent

on the face of it. By opting for the facility the Investors hereby irrevocably

authorizes and instructs the AMC to act as his /her agent and to do all

such acts as AMC may find necessary to provide the Facility.







Account of the Investor. The Investor agrees and confirms that the AMC

may at its sole discretion suspend the Facility in whole or in part at any

time without prior notice. The Investor shall not assign any right or interest

or delegate any obligation arising herein. The Investor shall take

responsibility for all the transactions conducted by using the Facility and


will abide by the record of transactions generated by the AMC. Further,

the Investor confirms that such records generated by the AMC shall be

conclusive proof and binding for all purposes and may be used as

evidence in any proceedings and unconditionally waives all objections

in this behalf.

The Investor agrees that use of the Facility will be deemed acceptance

of the Terms and Conditions and the Investor will unequivocally be

bound by these Terms and Conditions. The Investor agrees that all

transactions received shall be eligible for applicable NAV subject to


through the facility on or before the uniform cut off time.



AMC may decide from time to time will not be permitted using the

facility.

Investors should SMS HELP PURCHASE/REDEMPTION/SWITCH to 9212010033

in order to avail the facility post registration. The procedure for availing

the facility will be communicated to the investor. Alternatively, the

investor can also get in touch with the Investor Service Centres of the

AMC.

KFin Technologies Pvt. Ltd., Registrar & Transfer Agents to Axis Mutual

Fund having its office at Unit: Axis Mutual Fund, Tower B, Plot number 31 &

32, Financial District, Gachibowli, Nanakramguda, Serilingampally

Mandal, Hyderabad - 500032 will be the official point of acceptance for

such transactions received for Axis Mutual Fund schemes.



Trustees (indemnified parties) from and against all actions, claims,

demands, liabilities, obligations, losses, damages, costs and expenses of


suffered or incurred, against the indemnified parties whatsoever arising

from or in connection with the Easy Call Facility. The Investor/s shall not

hold the AMC liable and shall keep it indemnified for the following:









of joint account/s having mode of operations as “anyone or

survivor”.



question or dispute) that the instructions given are not genuine or are

otherwise improper, unclear, vague or raise a doubt.



MISCELLANEOUS:



introduced without any charges being levied; in case charges are to

be levied on a future date he agrees to pay such charges and


services.








DIVIDEND SWEEP OPTION (DSO)

The terms and conditions of Dividend Sweep Option (DSO) are as follows:


eligible scheme(s) [hereinafter referred to as "Source Scheme(s)"] of

Axis Mutual Fund can opt to automatically invest the dividend (as

reduced by the amount of applicable statutory levy) declared by

the eligible Source Scheme(s) into other eligible Scheme(s)

[hereinafter referred to as "Target Scheme(s)"] of Axis Mutual Fund.


Mutual Fund except Exchange Traded Funds (ETFs).

3) DSO facility is available to unit holder(s) only under the Dividend Plan

/ Option of the Source Scheme(s). However, the DSO facility will not

be available to unit holder(s) under the Daily Dividend Option in the

Source Scheme(s). Unit holder’s enrolment under the DSO facility will

automatically override any previous instructions for 'Dividend Payout'

or 'Dividend Reinvestment' facility in the Source Scheme.


respective Dividend Plan / Option of the Source Scheme. Instructions

for part Dividend Transfer and part Dividend Payout / Reinvestment

will not be accepted. The dividend amount will be invested in the

Target Scheme under the same folio. Accordingly, the unit holder(s)

details and mode of holding in the Target Scheme will be same as in

the Source Scheme.





(subject to minimum of Rs. 1,000/-) will be automatically invested into

the Target Scheme, as opted by the unit holder, on the immediate

next Business Day after the Record Date at the applicable NAV of the

Target Scheme, subject to applicable load as specified under

paragraph 9 below and accordingly equivalent units will be allotted

in the Target Scheme, subject to the terms and conditions of the

respective Target Scheme.


respective Target Scheme's Scheme Information Document (SID) will

not be applicable under DSO. E.g. the minimum application amount

for new investors in Axis Bluechip Fund - Growth Plan is 5,000/-.

However in case of DSO, a Unit Holder can avail of the facility

irrespective of the amount of dividend (subject to a minimum of

1,000/-).



dividend sweep is being less than eligible amount, then the dividend

will be re-invested in source scheme/ payout as per the existing


option.

9) Load Structure:









Exit Load (Target Scheme): As per the relevant SID

The Trustee/AMC reserves the right to change the load structure

under the DSO Facility at any time in future on a prospective basis.

10) The Account Statement will be issued by mail or by email (if opted by

the unit holder) to the unit holder once as per regulations. In case of


endeavour to provide the account statement to the unitholders after

every transaction of Dividend Transfer.




should be completed in English in Block Letters only. The DSO

Enrolment Form complete in all aspects should be submitted at any

of the Investor Services centre (ISCs) of Axis Mutual Fund.

12) The request for enrolment for DSO must be submitted at least 10 days

prior to the Record Date for the dividend. In case of the condition not

being met, the enrolment would be considered valid from the



enrolment under DSO and the next Record Date for dividend is not

less than 10 days.

13) Unitholder(s) are advised to read the SID of Target Scheme(s)

carefully before investing. The SID / Key Information Memorandum of

the Scheme(s) are available with the ISCs of Axis Mutual Fund, brokers

/ distributors and also displayed on the Axis Mutual Fund website i.e. –

www.axismf.com

14) Unit holders will have the right to discontinue the DSO facility at any

time by sending a written request to the ISC. Notice of such


Dividend Record Date. On receipt of such request, the DSO facility

will be terminated. At the time of discontinuation of DSO facility, the

Unit holders should indicate their choice of option i.e. dividend

reinvestment or dividend payout. In the event the Unitholder does not

indicate his choice of dividend option, the dividend, if any, will be

reinvested (compulsory payout if dividend reinvestment option is not

available) in the Source Scheme. Once the request for DSO is

registered, then it shall remain in force unless it is terminated as

aforesaid.



The Trustee reserves the right to change/ modify the terms and conditions

of the DSO at a later date on a prospective basis.

TRIGGER FACILITY


automatically redeem / switch the units, as the case may be, on behalf


of the investor, on the date of happening of the event. Accordingly, a

trigger will activate a transaction when the event selected for has

reached the trigger point. All redemptions/ switches etc. linked to triggers

will always be at the applicable NAV based prices of the day on which

the event occurs. The investors opting for the Trigger facility will also have

right to redeem/ switch their holdings before happening of the trigger

event. Please note that the trigger is an additional facility provided to the

unit holders to save time on completing the redemption/ switch

formalities on happening of a particular predetermined event. Trigger is

not an assurance on part of AMC / Fund to the investor that he / she will

receive a particular amount of money / appreciation and / or a

percentage on redemption or will get a particular amount of capital

appreciation or will minimise the loss to investor to a particular amount or

percentage.





Fund Axis Treasury Advantage Fund



Fund Axis Banking & PSU Debt Fund














Axis Gilt Fund




Fund










b) Redemption / Switch Out to the extent of capital appreciation

only


The trigger facility is available only for the options specified above and is


not available for any ad-hoc amount that the investor may specify.


under various plans / options of the Scheme:










reaches a particular level or goes below that at the close of any business

day, then the amount specified shall either be redeemed / switched to

the selected transferee scheme.

iii. Option to redeem / switch out in the event NAV reaches or exceeds a

specified level.







which, if the scheme NAV appreciates, then the amount specified will be





which, if the scheme NAV appreciates or depreciates, then the amount

specified will be redeemed / switched to the selected transferee

scheme.




which, if the scheme NAV depreciates, then the amount specified will be


Notes:-



INR.10.60 etc.



Terms & Conditions :





Scheme Information Document of the Transferor/ Transferee


schemes.

3. Once a trigger is activated and a transaction is processed, the same

will not be reversed and it will be final and binding upon the Unit

holder.


again.






7. Trigger will not get executed in case units are pledged or where lien is

marked on units, at the time of receipt of request for trigger.


linked to Nifty.



10. "Minimum Application Amount/ Minimum Additional Investment




11. NAV for switch /redemption: NAV of the trigger day will be






12. In case, if no plan / option is specified for switch transaction under

trigger option, default plan / option, as specified in respective


13. In case of any ambiguity or where the investor fails to specify whether

the redemption / switch to be made is full or to the extent of capital

appreciation or to the extent of Principal amount only, the

transaction will not be processed.


subject to an advance notice of 10 (Ten) working days. Investors can

deactivate the trigger facility by sending a written request to the

Investor Service Centers.


Subject to the Investor fulfilling certain terms and conditions stipulated by

the AMC as under, Axis AMC, Axis Mutual Fund or any other agent or

representative of the AMC, Mutual Fund, the Registrar & Transfer Agents

may accept transactions through any electronic mode including

fax/web/ electronic transactions as permitted by SEBI or other regulatory

authorities:

a) The acceptance of the fax/web/electronic transactions will be solely

at the risk of the transmitter of the fax/web/ electronic transactions

and the Recipient shall not in any way be liable or responsible for any

loss, damage caused to the transmitter directly or indirectly, as a

result of the transmitter sending or purporting to send such

transactions.

b) The recipient will also not be liable in the case where the transaction

sent or purported to be sent is not processed on account of the fact

that it was not received by the Recipient.


fax/web/electronic transmission is for the transmitter’s convenience


and the Recipient is not obliged or bound to act on the same.

d) The transmitter acknowledges that fax/web/electronic transactions is

not a secure means of giving instructions/ transactions requests and

that the transmitter is aware of the risks involved including those

arising out of such transmission.


fax/web/ electronic transmission which the recipient believes in good

faith to be given by the transmitter and the recipient shall be entitled

to treat any such fax/web/ electronic transaction as if the same was

given to the recipient under the transmitter’s original signature.

f) The transmitter agrees that security procedures adopted by the

recipient may include signature verification, telephone call backs

which may be recorded by tape recording device and the

transmitter consents to such recording and agrees to cooperate with

the recipient to enable confirmation of such fax/web/ electronic

transaction requests.

g) The transmitter accepts that the fax/web/ electronic transactions,

where applicable shall not be considered until time stamped as a

valid transaction request in the Scheme in line with the Regulations.

In consideration of the recipient from time to time accepting and at its

sole discretion acting on any fax/ web/electronic transaction request

received / purporting to be received from the transmitter, the transmitter

agrees to indemnify and keep indemnified the AMC, Directors,

employees, agents, representatives of the AMC, Axis Mutual Fund and

Trustee from and against all actions, claims, demands, liabilities,

obligations, losses, damages, costs and expenses of whatever nature

(whether actual or contingent) directly or indirectly suffered or incurred,

sustained by or threatened against the indemnified parties whatsoever

arising from or in connection with or any way relating to the indemnified

parties in good faith accepting and acting on fax/web/ electronic

transaction requests including relying upon such fax/ electronic

transaction requests purporting to come from the Transmitter even

though it may not come from the Transmitter.

The AMC reserves the right to discontinue the facility (ies) at any point of

time.

Distributors offer goal based financial planning (facility) to their clients. In

order to encourage Investors to plan for their investments based on life

goals (e.g. child’s education, retirement, wealth creation, etc), the Asset

Management Company would assist in providing such facilities.


financial goals, certain features offered by Axis Mutual Fund may not be

offered/available under such goal based investment folios. Under a folio,

no additional purchase, switch and part redemption would be allowed.

Requests for changes in goals/goal details will not be accepted. Under

normal circumstances, there is no restriction on the right of the investor to

transact directly with the mutual fund.


application form and a single cheque in the name of ‘Axis Mutual Fund

First Investor name’ or ‘Axis Mutual Fund Permanent Account Number’

would have to be provided by the Investor. Transaction charge would be

charged at application form level.

Accounts

Statements


confirmation specifying the number of units allotted by way of e-mail


and/or SMS within 5 business days from the date of receipt of

transaction request/allotment will be sent to the Unit Holders

registered e-mail address and/or mobile number.

For those Unit holders who have provided an e-mail address, the


Unit holders will be required to download and print the documents



documents, the Unit holder shall promptly advise the Mutual Fund to

enable the Mutual Fund to make the delivery through alternate









writing/calling the AMC/ISC/Registar. In case of specific request

received from the Unit Holders, the AMC/Fund will provide the

Account Statement to the Investors within 5 business days from the

receipt of such request.




CAS is an account statement detailing all the transactions and holding at

the end of the month including transaction charges paid to the

distributor, across all schemes of all mutual funds. CAS issued to investors

shall also provide the total purchase value/cost of investment in each

scheme.


provide


distributors (in absolute terms) during the half-year period against the

concerned investor’s total investments in each scheme.



Commission paid to the distributor and Other expenses for the period

for each scheme’s applicable plan (regular or direct or both) where

the concerned investor has actually invested in.

The word transaction will include purchase, redemption, switch, dividend

payout, dividend reinvestment, systematic investment plan, systematic

withdrawal plan and systematic transfer plan.





March) is issued, on or before tenth day of succeeding month, detailing

holding at the end of the six month, across all schemes of all mutual

funds, to all such investors in whose folios no transaction has taken place

during that period.



Permanent Account Number (PAN) for the purposes of sending CAS. In

the event the account has more than one registered holder, the first

named Unit Holder shall receive the Account Statement.

The AMC will send statement of accounts by e-mail where the Investor

has provided the e-mail id. Additionally, the AMC may at its discretion

send Account Statements individually to the investors.


SEBI vide its circular no. CIR/MRD/DP/31/2014 dated November 12, 2014,

in order to enable a single consolidated view of all the investments of an

investor in Mutual Fund and securities held in demat form with

Depositories, has required Depositories to generate and dispatch a single

CAS for investors having mutual fund investments and holding demat

accounts.


account, for transactions in the schemes of Axis Mutual Fund on or after

February 1, 2015, a CAS, based on PAN of the holders, will be sent by

Depositories to investors holding demat account, for each calendar

month within 10th day of the succeeding month to the investors in whose

folios transactions have taken place during that month.

CAS will be sent by Depositories every half yearly (September/March), on

or before 10th day of succeeding month, detailing holding at the end of

the six month, to all such investors in whose folios and demat accounts

there have been no transactions during that period.




systematic investment plan, systematic withdrawal plan, systematic

transfer plan (including transaction charges paid to the distributor) and

transaction in dematerialized securities across demat accounts of the

investors and holding at the end of the month.



statement in terms of regulations applicable to the depositories. Investors

whose folio(s)/ demat account(s) are not updated with PAN shall not

receive CAS.



account(s) are updated with PAN. In case of multiple holding, it shall be

PAN of the first holder and pattern of holding.




the investor to receive the CAS in physical form at the address registered

in the Depository system.





continue to receive CAS sent by RTA/AMC, based on the PAN, covering

transactions across all mutual funds as per the current practice.



default depository.


AMC/ the Fund with the requirement under Regulation 36(4) of SEBI

(Mutual Funds) Regulations. However, the AMC reserves the right to

furnish the account statement in addition to the CAS, if deemed fit in the

interest of investor(s).





AMC shall issue monthly account statement to such Unit holder(s), for any

financial transaction undertaken during the month on or before 10th of

succeeding month by mail or email.





folios no transaction has taken place during that period shall be sent by

mail/e-mail.

OPTION TO HOLD UNITS IN DEMATERIALISED (DEMAT) FORM

Investors shall have an option to receive allotment of Mutual Fund units in

their demat account while subscribing to the Units of the Scheme in

terms of the guidelines/ procedural requirements as laid by the

Depositories (NSDL/CDSL) from time to time.








(represented by statement of account) into dematerialized form or vice

versa, the request for conversion of units held in physical form into Demat

(electronic) form or vice versa should be submitted along with a

Demat/Remat Request Form to their Depository Participants. In case the

units are desired to be held by investor in dematerialized form, the KYC

performed by Depository Participant shall be considered compliance of

the applicable SEBI norms.

Further, demat option shall also be available for SIP transactions. Units will

be allotted based on the applicable NAV as per Scheme Information

Document and will be credited to investors Demat Account on weekly

basis on realization of funds.





transferees who are capable of holding units and having a Demat

Account. The delivery instructions for transfer of units will have to be

lodged with the Depository Participant in requisite form as may be

required from time to time and transfer will be affected in accordance

with such rules / regulations as may be in force governing transfer of

securities in dematerialized mode.

For details, Investors may contact any of the Investor Service Centres of

the AMC.

Dividend The Dividend warrants/cheque/demand draft shall be dispatched to the

Unit holders within 30 days of the date of declaration of the Dividend.

The Dividend proceeds will be paid by way of NEFT / RTGS / Direct


available with the Mutual Fund for the Investor.

In case of specific request for Dividend by warrants/cheques/demand

drafts or unavailability of sufficient details with the Mutual Fund, the

Dividend will be paid by warrant/cheques/demand drafts and payments

will be made in favour of the Unit holder (registered holder of the Units or,

if there are more than one registered holder, only to the first registered

holder) with bank account number furnished to the Mutual Fund (please

note that it is mandatory for the Unit holders to provide the Bank account

details as per the directives of SEBI).




Slip and submitted at an ISC/Official Point of Acceptance. Transaction

Slips can be obtained from any of the ISCs/Official Points of Acceptance.

Investor can also place redemption through Telephone using Easy

Call/Easy SMS facility or may redeem Online through the AMC’s website

subject to the terms and conditions as maybe stipulated from time to

time.




Gross Settlement (RTGS), NEFT, Direct Credit, Cheque or Demand Draft.

a) If investor had provided IFSC code in the application form, by default

redemption proceeds shall be credited to Investor’s account through

RTGS/NEFT.

b) If Investor has neither provided IFSC code nor the NEFT code but

have a bank account with Banks with whom the Fund has an

arrangement for Direct Credit from time to time, the proceeds will be

paid through direct credit.



drafts, marked "Account Payee only" and drawn in the name of the

sole holder / first-named holder (as determined by the records of the

Registrar).


Registrar's records, will be mentioned in the cheque/demand draft.


The cheque will be payable at par at all bank branch or specific

cities. If the Unit Holder resides in any other city, he will be paid by a

demand draft payable at the city of his residence and the demand

draft charges shall be borne by the AMC (please refer SAI for details).

The redemption proceeds will be sent by courier or (if the addressee

city is not serviced by the courier) by registered post/UCP. The

dispatch for the purpose of delivery through the courier / postal

department, as the case may be, shall be treated as delivery to the

investor. The AMC / Registrar are not responsible for any delayed

delivery or non-delivery or any consequences thereof, if the dispatch

has been made correctly as stated in this paragraph.




Draft Redemption proceeds will be paid by cheque/demand drafts and

payments will be made in favour of the Unit holder with bank account

number furnished to the Mutual Fund

(Please note that it is mandatory for the Unit holders to provide the Bank

account details as per the directives of SEBI). Redemption cheques will

be sent to the Unit holder’s address.

The Trustee, at its discretion at a later date, may choose to alter or add

other modes of payment.






exchange from abroad or by cheque / draft issued from proceeds of the

Unit Holder's FCNR deposit or from funds held in the Unit Holder's Non

Resident (External) account kept in India, the proceeds can also be sent

to his Indian address for crediting to his NRE / FCNR / non-resident

(Ordinary) account, if desired by the Unit Holder.





(Ordinary) account.

(iii) FPIs

FPIs, the designated branch of the authorized dealer may allow



Rupee account of the FPIs maintained in accordance with the approval

granted to it by the RBI.

The Fund will not be liable for any delays or for any loss on account of

any exchange fluctuations, while converting the rupee amount in foreign

exchange in the case of transactions with NRIs/FPIs. The Fund may make

other arrangements for effecting payment of redemption proceeds in


future.



reduced by the number of Units Redeemed. Units once redeemed will

be extinguished and will not be re-issued.


requisite details are not provided by investors/Unit holders. The AMC will





online transactions on the Internet, as may be decided by the AMC from

time to time. The alternative mechanism may also include electronic

means of communication such as redeeming Units online through the

AMC Website or any other website etc. The alternative mechanisms

would be applicable to only those investors who opt for the same in

writing and/or subject to investor fulfilling such conditions as AMC may

specify from time to time.






documents would be notified by AMC from time to time on its website.


must provide a bank name, bank account number, branch address, and

account type in the Application Form.


The Unclaimed Redemption and dividend amounts shall be deployed by

the Fund in money market instruments and such other

instruments/securities as maybe permitted from time to time. The

investment management fee charged by the AMC for managing such

unclaimed amounts shall not exceed 50 basis points. The circular also

specifies that investors who claim these amounts during a period of three

years from the due date shall be paid at the prevailing NAV. Thus, after a

period of three years, this amount can be transferred to a pool account

and the investors can claim the said amounts at the NAV prevailing at

the end of the third year. In terms of the circular, the onus is on the AMC

to make a continuous effort to remind investors through letters to take

their unclaimed amounts. The details of such unclaimed amounts shall be

disclosed in the annual report sent to the Unit Holders.

Further, according to circular no. SEBI/HO/IMD/DF2/CIR/P/2016/37 dated

February 25, 2016 the unclaimed Redemption and dividend amounts

may be deployed in separate plan of Liquid scheme/Money market

mutual fund scheme floated by Mutual Funds specifically for deployment

of the unclaimed Redemption and dividend amounts.

Delay in payment of

redemption /

repurchase

proceeds



Redemption / Repurchase proceeds are not made within 10 Business

Days of the date of Redemption / Repurchase. However, the AMC will


not be liable to pay any interest or compensation or any amount

otherwise, in case the AMC / Trustee is required to obtain from the

Investor / Unit holders verification of identity or such other details relating

to Subscription for Units under any applicable law or as may be

requested by a Regulatory Agency or any government authority, which

may result in delay in processing the application.



through MF Utility

portal & MFUI Points

of Services pursuant

to appointment of

MF Utilities India Pvt.

Ltd.

AMC has entered into an Agreement with MF Utilities India Pvt. Ltd.

(“MFUI”), a “Category II – Registrar to an Issue” under SEBI (Registrars to

an Issue and Share Transfer Agents) Regulations, 1993, for usage of MF

Utility (“MFU”) - a shared services initiative of various Asset Management

Companies, which acts as a transaction aggregation portal for

transacting in multiple Schemes of various Mutual Funds with a single

form and a single payment instrument.


existing Official Points of Acceptance for accepting transactions in the

units of the schemes of the Axis Mutual Fund as disclosed in the SID,

www.mfuonline.com i.e. online transaction portal of MFU and the

authorized Points of Service (“POS”) designated by MUFI shall also be the

OPA with effect from the dates as may be specified by MFUI on its

website/AMC by issuance of necessary communication.

All financial and non-financial transactions pertaining to Schemes of Axis

Mutual Fund can be done through MFU either electronically on




website of MFUI at www.mfuindia.com. This will be updated from time to

time.


1996, circulars issued by SEBI and as mentioned in the SID / KIM of the



transactions on the MFUI portal shall be subject to the terms & conditions

(including those relating to eligibility of investors) as stipulated by MFUI /

Axis Mutual Fund / the AMC from time to time and in accordance to the

laws applicable.



multiple Schemes of various Mutual Funds through MFU and to map

existing folios, if any. Investors can create a CAN by submitting the CAN

Registration Form (CRF) and necessary documents at the MFUI POS. The

AMC and / or its Registrar and Transfer Agent (RTA) shall provide

necessary details to MFUI as may be needed for providing the required

services to investors / distributors through MFU.


Net Asset Value


unit of the scheme

on a particular

day. You can

ascertain the value

of your investments

NAVs will be calculated and disclosed on all the Business Days. The AMC

shall update the NAVs on the website of the AMC (www.axismf.com) and of

the Association of Mutual Funds in India - AMFI (www.amfiindia.com) before

11.00 p.m. on every Business Day. If the NAVs are not available before the

commencement of Business Hours on the following day due to any reason,

the Mutual Fund shall issue a press release giving reasons and explaining

when the Mutual Fund would be able to publish the NAV.






by multiplying the

NAV with your unit

balance.

Information regarding NAV can be obtained by the Unit holders / Investors

by calling or visiting the nearest ISC.

Monthly and Half

yearly Disclosures:


Results

This is a list of

securities where

the corpus of the

scheme is currently

invested. The

market value of

these investments

is also stated in

portfolio

disclosures.

The AMC will disclose the portfolio of the Scheme (alongwith ISIN) on

fortnightly and half yearly on the website of the Mutual Fund and AMFI

within 5 days of every fortnight and within 10 days from the close of each

half year (i.e. 31st March and 30th September) respectively in a user-friendly

and downloadable spreadsheet format. Further, AMC shall publish an

advertisement in an all India edition of one national English daily newspaper

and one Hindi newspaper, every half year, disclosing the hosting of the half-

yearly statement of its schemes’ portfolio on the website of the Mutual Fund

and AMFI and the modes through which unitholder(s) can submit a request

for a physical or electronic copy of the statement of scheme portfolio.

The AMC will also provide a dashboard, in a comparable, downloadable

(spreadsheet) and machine readable format, providing performance and

key disclosures like Scheme’s AUM, investment objective, expense ratios,

portfolio details, scheme’s past performance etc. on website.

Half Yearly Results

The Mutual Fund shall within one month from the close of each half year,

that is on 31st March and on 30th September, host a soft copy of its

unaudited financial results on the website of the AMC and AMFI.


such financial results on their website, in atleast one English daily newspaper

having nationwide circulation and in a newspaper having wide circulation

published in the language of the region where the Head Office of the

Mutual Fund is situated.

The unaudited financial results will also be displayed on the website of the

AMC and AMFI.

Annual Report The Scheme annual report or an abridged summary thereof shall be mailed

(emailed, where e-mail id is provided unless otherwise required) to all Unit

holders not later than four months (or such other period as may be specified

by SEBI from time to time) from the date of closure of the relevant

accounting year (i.e. 31st March each year) and full annual report shall be

available for inspection at the Head Office of the Mutual Fund and a copy

shall be made available to the Unit holders on request on payment of

nominal fees, if any. Scheme wise annual report shall also be displayed on

the website of the Mutual Fund (www.axismf.com) and on the website of

Association of Mutual Funds in India (www.amfiindia.com).

Unitholders whose email addresses are not registered with the Mutual Fund

may ‘opt-in’ to receive a physical copy of the annual report or an abridged

summary thereof.

Further, AMC shall provide a physical copy of the abridged summary of the

Annual Report, without charging any cost, on a specific request received

from a unitholder.

AMC shall also publish an advertisement every year, in an all India edition of

one national English daily newspaper and in one Hindi newspaper,

disclosing the hosting of the scheme wise annual report on the website of

the Mutual Fund and AMFI and the modes through which a unitholder can

submit a request for a physical or electronic copy of the annual report or


Associate Please refer to Statement of Additional Information (SAI).



Transactions

Taxation

Rates applicable

for the FY 20-21

The information is

provided for

general

information only.

However, in view

of the individual

nature of the

implications, each

investor is advised

to consult his or her

own tax

advisors/authorised

dealers with

respect to the

specific amount of

tax and other

implications arising

out of his or her


schemes.

Particulars

Taxability in the hands of Individuals / Non-corporates /

Corporates


Tax on Dividend Taxed in the hands of

unitholders at applicable rate

under the provisions of the

Income-tax Act, 1961 (Act)

Taxed in the hands of

unitholders at the rate of

20% u/s 115A of the Act


and cess)

Long Term

Capital Gains

(LTCG):

(Held for a

period of more

than 36 Months)

-Listed other

than equity-

oriented fund

20% with indexation benefit in

respect of cost of acquisition


and cess)

20% with indexation

benefit in respect of cost

of acquisition


and cess)

LTCG -Unlisted

other than

equity oriented

funds

20%


available)


and cess)

10%


available)


and cess)

Short Term

Capital Gains

30%

(Refer Note 4)


and cess)

30% (Refer Note 4)

(40% in case of Foreign

companies)


and cess)

Note –

1. Axis Mutual Fund is a Mutual Fund registered with the Securities & Exchange

Board of India and hence the entire income of the Mutual Fund will be

exempt from income tax in accordance with the provisions of Section

10(23D) of the Act.

2. Surcharge at the following rate to be levied in case of individual /HUF/ non-

corporate non-firm unit holders for equity oriented mutual fund:

Income Individual/ HUF / non-

corporate non-firm unit

holders*

Rs 50 lakh to 1 crore (including income under


10%

Above Rs 1 crore upto Rs 2 crores (including


Act)

15%

Above Rs 2 crores upto Rs 5 crores (excluding


Act)

25%*

Above Rs 5 crores (excluding income under


37%*

*For income earned under provisions of section 111A and section 112A of


the Act surcharge rate shall be 15% where income exceeds Rs 2 crores.

3. Surcharge rates for Companies

Total Income Rate of

Surcharge for

Domestic

companies

Rate of

Surcharge for

Foreign

Companies

Above Rs 1 crore upto Rs 10

crores

7% 2%


*Surcharge rate shall be 10% in case resident companies opting taxation

under section 115BAA and section 115BAB on any income earned.

In case of firm with total income exceeding Rs.1 crore, surcharge rate shall

be 12%.

4. Assuming investor falls in to highest tax bracket

5. Withholding of Taxation by Mutual Fund will as per applicable withholding

tax rate.

For further details on taxation please refer to the clause on Taxation in the

SAI

Stamp Duty Pursuant to Notification No. S.O. 1226(E) and G.S.R. 226(E) dated March 30,

2020 issued by Department of Revenue, Ministry of Finance, Government of

India, read with Part I of Chapter IV of Notification dated February 21, 2019

issued by Legislative Department, Ministry of Law and Justice, Government

of India on the Finance Act, 2019, stamp duty @0.005% of the transaction

value would be levied on applicable mutual fund transactions.

Accordingly, pursuant to levy of stamp duty, the number of units allotted on

purchase transactions (including dividend reinvestment) to the unitholders

would be reduced to that extent.


NAVs, Unit Holdings, Dividends, etc by calling the Investor line of the AMC at

"1800 221322" (toll-free number) and additional contact number 8108622211

(chargeable) from 8.00 am to 8.00 pm (Monday to Friday) and 9.00 am to

6.00 pm (on Saturday and Sunday) or 4325 5100 (at local call rate for

enquiring at AMC ISC’s) or email – [email protected]. The

service representatives may require personal information of the Investor for

verification of his / her identity in order to protect confidentiality of

information. The AMC will at all times endeavour to handle transactions

efficiently and to resolve any investor grievances promptly.


been appointed as the Investor Relations Officer and can be contacted at:

Address : Axis Asset Management Company Ltd.

"Axis House", 1st Floor, C-2, Wadia International Centre, Pandurang Budhkar

Marg, Worli, Mumbai – 400 025

Phone no.: 022 - 43254123

For any grievances with respect to transactions through BSE StAR and / or

NSE MFSS, the investors / Unit Holders should approach either the stock

broker or the investor grievance cell of the respective stock exchange.





Fund will value its investments according to the valuation norms, as specified in Schedule VIII of

the SEBI (MF) Regulations, or such norms as may be specified by SEBI from time to time.

The Net Assets Value (NAV) of the Units under the Scheme shall be calculated as shown below:

NAV (Rs.) =

Market or Fair Value

of Scheme’s

Investments


Accrued Income


and Provisions


The NAV shall be calculated up to four decimal places. Separate NAV will be calculated and

disclosed for each Option. The NAVs of the Growth Option and the Dividend Option will be

different after the declaration of the first Dividend.

NAVs will be calculated and disclosed on all the Business Days.





These expenses are incurred for the purpose of various activities related to the NFO like sales

and distribution fees paid marketing and advertising, Registrar & Transfer Agent expenses,

printing and stationary, bank charges etc.

In accordance with the provisions of SEBI circular no. SEBI/ IMD/CIR No. 1/64057/06 dated April

04, 2006 and SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009, the NFO expenses has been

borne by the AMC/Sponsor.




Agents’ fee, marketing and selling costs etc. as given in the table below:

The AMC has estimated that upto 2.00 % of the daily net assets of the Scheme will be charged

to the Scheme as expenses. For the actual current expenses being charged, the investor

should refer to the website of the AMC.


Assets


Trustee fee

Audit fees

Custodian fees

RTA Fees

Marketing & selling expense incl. agent commission



Cost of providing account statements and dividend redemption cheques and

warrants

Costs of statutory advertisements


Brokerage & transaction cost over and above 12 bps and 5 bps for cash and

derivative market trades resp.

Goods & Services Tax (GST) on expenses other than investment and advisory

fees


Maximum total expense ratio (TER) permissible under Regulation 52(6)(c) Upto 2.00%

Additional expenses under Regulation 52(6A)(c)^ Upto 0.05%


Regulation 52(6A)(b)$

Upto 0.30%

Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc.

and no commission for distribution of Units will be paid/ charged under Direct Plan.

^The AMC shall not charge additional expenses under Regulation 52(6A)(c) in case exit load is

not levied/ not applicable.







Regulation 52(4) of SEBI (MF) Regulations are fungible in nature. Thus, there shall be no internal

sub-limits within the expense ratio for expense heads mentioned under Regulation 52(2) and (4)

respectively. Further, the additional expenses under Regulation 52(6A)(c) may be incurred

either towards investment & advisory fees and/or towards other expense heads as stated

above.



Regulations.

The recurring expenses of the Scheme (including the Investment Management and Advisory

Fees) shall be as per the limits prescribed under the SEBI (MF) Regulations. These are as follows:

Assets under management Slab (In Rs. crore) % of daily net assets






On the next Rs. 40,000 crores of the daily net assets Total expense ratio reduction of 0.05%

for every increase of Rs. 5,000 crores of

daily net assets or part thereof.


The total expenses of the Scheme including the investment management and advisory fee

shall not exceed the limit stated in Regulation 52(6) of the SEBI (MF) Regulations and

amendments thereto.

The AMC will charge the Scheme such actual expenses incurred, subject to the statutory limit

prescribed in the Regulations.


A. In addition to the limits as specified in Regulation 52(6) of SEBI (MF) Regulations or the Total

Recurring Expenses (Total Expense Limit) as specified above, the following costs or






(ii) 15 per cent of the average assets under management (year to date) of the Scheme,


Provided that if inflows from such cities is less than the higher of sub-clause (i) or sub- clause

(ii), such expenses on daily net assets of the Scheme shall be charged on proportionate

basis.







investors in terms of SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2018/137 dated October 22,


2018 and SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2019/42 dated March 25, 2019. For this

purpose inflows of amount upto Rs 2,00,000/- per transaction, by individual investors shall be

considered as inflows from “retail investor”.


(b) additional expenses, incurred towards different heads mentioned under Regulations 52(2)

and 52(4), not exceeding 0.05 per cent of daily net assets of the Scheme;

(c) GST payable on investment and advisory service fees (‘AMC fees’) charged by Axis Asset

Management Company Ltd.;


trade and is included in the cost of investment shall not exceed 0.12 per cent in case of cash

market transactions and 0.05 per cent in case of derivatives transactions.

B. Within the Total Expense Limit chargeable to the Scheme, following will be charged to the

Scheme:



(b) Investor education and awareness initiative fees of at least 2 basis points on daily net assets

of Scheme.






atleast three working days prior to the effective date of the change. Investors can refer ‘Total

Expense Ratio of Mutual Fund Schemes’ section on https://www.axismf.com/total-expense-

ratio for Total Expense Ratio (TER) details.

Illustration of impact of expense ratio on scheme’s returns

For any scheme, NAV is computed on a daily basis factoring in all the assets as well as liabilities

of the Scheme (including expenses charged). Expenses charged to the Scheme bring down its

NAV and hence the investor's net returns on a corresponding basis.

Illustration:

Particulars Amount

(in Rs.)

No of

units

NAV per unit

(in Rs.)


Value of above investment as on March 31, 2017 (gross of all

expenses) (B) 11,500 1,000 11.50

Total Expenses charged during the year @2% p.a. (assumed)

( C ) 200 0.20

Value of above investment as on March 31, 2017 (net of all

expenses) (D) = (B-C) 11,300 1,000 11.30

Returns (%) (gross of all applicable expenses) (E) = ((B/A)-1) 15.0%

Returns (%) (net of all applicable expenses) (F) = ((D/A)-1) 13.0%

Please Note:


charged to the Scheme and should not be construed as providing any kind of investment

advice or guarantee of returns on investments.






under the Scheme.

Calculations are based on assumed NAVs, and actual returns on your investment may be

more, or less.

Any tax impact has not been considered in the above example, in view of the individual

nature of the tax implications. Each investor is advised to consult his or her own financial

advisor.

C. LOAD STRUCTURE



marketing and selling expenses. Load amounts are variable and are subject to change from

time to time. For the current applicable structure, investors may refer to the website of the AMC

(www.axismf.com) or may call at 1800 221322 and additional contact number 8108622211

(chargeable) from 8.00 am to 8.00 pm (Monday to Friday) and 9.00 am to 6.00 pm (on

Saturday and Sunday) or can contact his distributor.

SEBI vide its circular no. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009 has decided that

there shall be no entry Load for all Mutual Fund Schemes.



Exit Load Nil

Units issued on reinvestment of Dividends shall not be subject to any Load, if any.

No exit load will be charged for switch between Axis Dynamic Bond Fund - Regular Plan and

Axis Dynamic Bond Fund - Direct Plan where transaction is not routed through Distributor in Axis

Dynamic Bond Fund - Regular Plan. If the transaction in Regular Plan is routed through

Distributor, then applicable exit load will be charged for switch from Regular Plan to Direct

Plan. Further, for switches between the Growth and Dividend Option, no load will be charged

by the scheme.

The above mentioned load structure shall be equally applicable to the special products such

as SIP, STP, etc. offered by the AMC. However, no load will be charged for switching between

options and sub-options of the Scheme.

Exit load charged to the investors will be credited back to the scheme net of GST.


investing.





Fund. The AMC/Trustee reserves the right to introduce / modify the Load depending upon the

circumstances prevailing at that time subject to maximum limits as prescribed under the

Regulations.



difference between the Redemption price and Sale price at any point in time shall not exceed

the permitted limit as prescribed by SEBI from time to time which is presently 7% calculated on

the Sale Price.



1. An Addendum detailing the changes will be attached to Scheme Information Document

and Key Information Memorandum. The addendum may be circulated to all the

distributors / brokers so that the same can be attached to all Scheme Information



made to display the addendum in the form of a notice in all the Investor Service Centres

and distributors / brokers office.




Load/CDSC

4. A public notice shall be given in respect of such changes in one English daily newspaper

having nationwide circulation as well as in a newspaper published in the language of

region where the Head Office of the Mutual Fund is situated.


The Trustee/AMC reserves the right to change the load structure subject to the limits prescribed

under the Regulations. Any change in load structure shall be only on a prospective basis i.e.

any such changes would be chargeable only for Redemptions from prospective purchases

(applying first in first out basis).

Transaction Charges

In terms of SEBI circular no. CIR/IMD/DF/13/2011 dated August 22, 2011, as amended from time

to time, transaction charge per subscription of Rs.10,000/– and above shall be charged from

the investors and shall be payable to the distributors/ brokers (who have opted in for charging

the transaction charge) in respect of applications routed through distributor/ broker relating to

Purchases / subscription / new inflows only (lump sum and SIP), subject to the following:

For Existing / New investors: Rs.100 / Rs.150 as applicable per subscription of Rs. 10,000/– and

above


amounts to Rs.10,000/– and above. In such cases the transaction charge would be


There shall be no transaction charge on subscription below Rs.10,000/-.


There shall be no transaction charges for transaction other than purchases / subscriptions

relating to new inflows such as Switches, etc.

Transactions carried out through the Stock Exchange platforms for mutual funds shall not

be subject to transaction charges.

However, the option to charge “transaction charges” is at the discretion of the distributors.

Investors may note that distributors can opt to receive transaction charges based on type of

the Scheme. Accordingly, the transaction charges would be deducted from the subscription

amounts, as applicable.

SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 has decided that

there shall be no entry Load for all Mutual Fund Schemes. The upfront commission on










invested in the Scheme. The statement of account shall clearly state that the net investment as

gross subscription less transaction charge and give the number of units allotted against the net

investment.


Not applicable


V. RIGHTS OF UNITHOLDERS










1. All disclosures regarding penalties and action(s) taken against foreign Sponsor(s) may be

limited to the jurisdiction of the country where the principal activities (in terms of income /

revenue) of the Sponsor(s) are carried out or where the headquarters of the Sponsor(s) is

situated. Further, only top 10 monetary penalties during the last three years shall be

disclosed.

Not Applicable

2. In case of Indian Sponsor(s), details of all monetary penalties imposed and/ or action taken

during the last three years or pending with any financial regulatory body or governmental

authority, against Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee

Company; for irregularities or for violations in the financial services sector, or for defaults

with respect to share holders or debenture holders and depositors, or for economic

offences, or for violation of securities law. Details of settlement, if any, arrived at with the

aforesaid authorities during the last three years shall also be disclosed.


following a statutory inspection which revealed violations of various regulations of

the RBI in relation to assessment of NPAs. After considering the response and oral

submissions of Axis Bank, the RBI found that the charges of non-compliance were

substantiated and imposed a monetary penalty of INR 3,00,00,000 (Rupees Three

Crores Only) on March 5, 2018.

b. The RBI had issued Show Cause Notice vide its letter dated 27.7.2018 with respect to

dispensation of two Children Bank Play Notes of Rs.500 each dispensed to two

customers from ATM at Kidwai nagar branch, Kanpur in non-compliance to its

Master Circular on Detection and Impounding of Counterfeit Notes dated July 20,

2017 and, the Circular on Sorting of Notes – Installation of Note Sorting Machines

dated November 19, 2009 and the Bank submitted the response on 16.8.2018. The

RBI vide its letter dated 30.1.2019 imposed a penalty of Rs.20 lakhs and the Bank

paid the same on 5.2.2019.

c. The RBI had issued Show Cause Notice vide its letter dated 29.8.2018 for wrongfully

collecting 105 DDs, each for the amount exceeding Rs.50,000, aggregating Rs.5.56

crores in the account of Satkar Co-operative Credit Society Ltd. in non-compliance

to its Master Circular on ‘Collection of Account Payee Cheques - Prohibition on

Crediting Proceeds to Third Party Account’ dated January 22, 2014 and for the

delay in reporting of above fraud in non-compliance to Master Directions on

‘Frauds - Classification and Reporting by commercial banks and select FIs’ dated

July 1, 2016. The Bank submitted the response on 17.9.2018. The RBI vide its letter

dated 30.1.2019 imposed a penalty of Rs.2 Crore and the Bank has paid the same

on 16.2.2019.

d. The RBI had issued Show cause notice vide its letter dated 23.8.2018 with respect to

non-compliance to guidelines issued dated 20.2.2018 on ‘Time-bound

implementation & Strengthening of SWIFT related operational controls and the Bank

submitted the response on 5.9.2018. The RBI vide its letter dated 25.2.2019


action in future.


3. Details of all enforcement actions taken by SEBI in the last three years and/ or pending with

SEBI for the violation of SEBI Act, 1992 and Rules and Regulations framed there under

including debarment and/ or suspension and/ or cancellation and/ or imposition of

monetary penalty/adjudication/enquiry proceedings, if any, to which the Sponsor(s) and/

or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors

and/ or key personnel (especially the fund managers) of the AMC and Trustee Company

were/ are a party. The details of the violation shall also be disclosed.

Nil

4. Any pending material civil or criminal litigation incidental to the business of the Mutual Fund

to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company

and/ or any of the directors and/ or key personnel are a party should also be disclosed

separately.

Nil


the Board of Trustees/Trustee Company which SEBI has specifically advised to be disclosed

in the SID, or which has been notified by any other regulatory agency, shall be disclosed.

Nil

The Scheme under this Scheme Information Document was approved by the Trustee Company

on July 02, 2010. The Trustee has ensured that the Scheme is a new product offered by Axis

Mutual Fund and is not a minor modification of its existing schemes.


the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable.



Sd/-


Managing Director &







Ellisbridge, 3rd Floor, 302, Megha House, Opp. Kotak Bank,Ahmedabad - 380 006.. AGRA: Axis

Asset Management Company Limited, Shop No. G-7, Ground Floor, Block-19/4, Sanjay Place,

Agra - 282 002. BANGALORE Axis Asset Management Co.Ltd. Ground Floor, G-03 & G-03A,

Prestige Meridian-1, No. 29, M.G. Road, Bangalore - 560 001 BHOPAL Axis Asset Management

Co FM-8 Mansarovar Complex , Khasra No. 27/1/2 , NH-12 , Bhopal , MP. BHUBANESHWAR Axis

Asset Management Co Unit no.3 (Part) Ground Floor Nandighosh Arena Plot no. 1 Bapuji Nagar

Bhubaneshwar Odisha. BORIVALI Axis Asset Management Co. Ltd, Office No. 201, 2 Floor, REIS

Magos, Ramdas Sutrale Marg, Off. Chandavarkar Road, Borivali (West), Mumbai, Maharashtra

- 400092. CHANDIGARH Axis Asset Management Co.Ltd. 2nd Floor, SCO No 2471, Sector 22C,

Chandigarh - 160022. CHENNAI Axis Asset Management Co. Ltd. 1st Floor , Door no. 168 Anna

Salai , Opp. To Spencer Plaza , Chennai , Tamil Nadu - 600 002., COIMBATORE Axis Asset

Management Company Limited, 1st Floor, Shylaja Complex, 575 DB Road, R. S. Puram, Near

Head Post Office, Coimbatore - 641 002. DEHRADUN Axis Asset Management Co. Ltd., 59/3 First

Floor, Rajpur Road, Above IDBI Bank, Dehradun – 248001. FORT Axis Asset Management

Company Limited , 112, 1st Floor, Yusuf Building, Plot No. 49, Veer Nariman Road, Hutatma

Chowk, Fort, Mumbai - 400 001. GUWAHATI Axis Asset Management Co. ltd 2C 2nd Floor,

“Dihang Arcade”, ABC, G.S. Road Opp Dona Planet Guwahati 781005. HYDERABAD Axis Asset

Management Company Ltd, 2nd Floor, Nerella House, Panjagutta, Hyderabad - 500 082.

INDORE Axis Asset Management Co. ltd office No. 211 2nd Floor Megapolis Square Block A 579,

M.G Road .opp Treasure Island Mall Indore 452001 M.P JAIPUR Axis Asset Management

Company Ltd, 305, 3 Floor, Green House, Near Ahinsa Circle, Ashok Marg, C Scheme, Jaipur -

302001.Rajasthan. JALANDHAR Axis Asset Management Co. Ltd , SCO 5-6, 1st Floor, Puda

Complex, Opp Suvidha Center, Ladowali Road, Jalandhar - 144 001 KANPUR Axis Asset

Management August Company Limited, 305-306, 3rd Floor, Civil Lines, Kan Chamber, Kanpur –

208001. KOCHI Axis Asset Management Company Limited,Door No.40/9336 ,2nd Floor

,Chackos Towers ,Padma Pullepady Road ,Kochi 682 035 Kerala. KOLKATA Axis Asset

Management Company Ltd, Ground Floor, Kanak Building,41, Chowringhee Road Kolkata -

700071. LUCKNOW Axis Asset Management Co. Ltd, Unit No 5, 6 & 7, Halwasiya's Commerce

House, 2nd Floor, Habibullah Estate, 11, M.G.Marg, Hazratganj, Lucknow - 226001. LUDHIANA

Axis Asset Management Co. Ltd. SCO - 28, First Floor, Feroz Gandhi Market, Ludhiana - 141001.

MUMBAI Axis Asset Management Company Limited Axis House, First Floor, C-2, Wadia

International Centre, Pandurang Budhkar Marg, Worli, Mumbai - 400025. MUMBAI (Indiabulls)

Axis Asset Management Company Ltd. Unit No. 902, 9th Floor, Indiabulls Finance Center, Tower

2, Senapati Bapat Marg, Mumbai - 400013. NAGPUR Axis Asset Management Company Ltd. 1st

Floor, "The Edge", 12, Shankar Nagar, WHC Road, Nagpur-440010 NASIK Axis Asset

Management Company Limited Shop No. G-7,GroundFloor, Rajvee Enclave, Old Pandit

Colony, Nasik - 422 001, Maharashtra. NEW DELHI Axis Asset Management Company Ltd. 702-

705, 7th Floor, Narain Manzil, Barakhamba Road, Connaught Place, New Delhi - 110001.

PANAJI Axis Asset Management Company Limited Ground Floor, Shop No. G-7, Edcon Towers,

Menezes Braganza Road, Panjim, Goa - 403001. PUNE Axis Asset Management Company Ltd.

Unit No. 102 & 102-A/B, 1st Floor, Signature Building, Bhandarkar Road, CTS No. 853, Plot No. 195,

Bhamburda, Shivajinagar, Pune - 411005.PATNA Axis Asset Management Company Ltd. D - 309/

310, 3 Floor, Dumroan Palace, Frazer Road, Patna 800 001. RAIPUR Axis Asset Management

Company Ltd ,Office No. T -10, 3rd Floor, Raheja Towers, Fafadih , Chowk Jail Road, Raipur,

Chhattisgarh - 492001. RAJKOT Axis Asset Management Co. ltd 206, Metro Plaza Jansata

Chowk Near Eagle Travels Moti Tanki Chowk , Rajkot - 360001. SURAT Axis Asset Management

Company Limited,HG-2A, International Trade Centre(ITC), Majura Gate Crossing, Ring Road

,Surat Gujarat, India. Thane Axis Asset Management Company Ltd, Manjula Arcade, 2nd Floor,

Gokhale Road, Naupada, Thane (West) - 400 602. Vadodara Axis Asset Management

Company Limited 3rd Floor, 306, Emerald Complex, Race Course, Near Bird Circle, Old Padra

Road, Vadodara - 390 007.Amritsar Axis Asset Management Co. Ltd SCO-25, First floor, District

shopping Centre, B-Block, Ranjit Avenue, Amritsar – 143001. Varanasi Axis Asset Management

Company Ltd. 7th Floor, Arihant Complex, D-64/127 C-H, Sigra, Varanasi, Uttar Pradesh -


221010. Visakhapatnam Axis Asset Management Company Limited, S3, 3rd Floor, Navaratna

Jewel Square, Beside Jyothi, Book Depot, Dwarakanagar, Visakhapatnam - 530 016.

KFIN TECHNOLOGIES PRIVATE LIMITED INVESTOR SERVICE CENTERS

Bangalore - KFin Technologies Pvt. Ltd,No 35,Puttanna Road,Basavanagudi,Bangalore 560004

Belgaum - KFin Technologies Pvt. Ltd,Premises No.101, CTS NO.1893,Shree Guru Darshani

Tower,Anandwadi, Hindwadi,Belgaum 590011 Bellary - KFin Technologies Pvt. Ltd,Shree

Gayathri Towers #4,1st Floor K.H.B.Colony,Gopalaswamy Mudaliar Road,Gandhi Nagar-Bellary

583103 Davangere - KFin Technologies Pvt. Ltd,D.No 162/6 , 1st Floor, 3rd Main,P J

Extension,Davangere taluk, Davangere Manda,Davangere 577002 Dharwad - KFin

Technologies Pvt. Ltd,ADINATH COMPLEX,BESIDE KAMAL AUTOMOBILES, BHOOVI GALLI,OPP

OLD LAXMI TALKIES, P B ROAD,Dharwad 580001 Gulbarga - KFin Technologies Pvt. Ltd,H NO 2-

231,KRISHNA COMPLEX, 2ND FLOOR Opp.,Opp. Municipal corporation Office,Jagat, Station

Main Road, KALABURAGI,Gulbarga 585105 Hassan - KFin Technologies Pvt. Ltd,SAS NO: 490,

HEMADRI ARCADE,2ND MAIN ROAD,SALGAME ROAD NEAR BRAHMINS BOYS HOSTEL,Hassan

573201 Hubli - KFin Technologies Pvt. Ltd,R R MAHALAXMI MANSION,ABOVE INDUSIND BANK,

2ND FLOOR,DESAI CROSS, PINTO ROAD,Hubballi 580029 Mangalore - KFin Technologies Pvt.

Ltd,Mahendra Arcade Opp Court Road,Karangal Padi,-,Mangalore 575003 Margao - KFin

Technologies Pvt. Ltd,2Nd Floor ,Dalal Commercial Complex,Pajifond,Margao 403601 Mysore -

KFin Technologies Pvt. Ltd, NO 2924, 2ND FLOOR, 1ST MAIN, 5TH CROSS, SARASWATHI PURAM,

MYSORE 570009 Panjim - KFin Technologies Pvt. Ltd,H. No: T-9, T-10, Affran plaza,3rd Floor,Near

Don Bosco High School, Panjim 403001 Shimoga - KFin Technologies Pvt. Ltd,JAYARAMA

NILAYA,2ND CORSS,MISSION COMPOUND, Shimoga 577201 Ahmedabad - KFin Technologies

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Technologies Pvt. Ltd,B-42 Vaibhav Commercial Center,Nr Tvs Down Town Shrow

Room ,Grid Char Rasta ,Anand 380001 Baroda - KFin Technologies Pvt. Ltd,203 Corner point,

Jetalpur Road, Baroda Gujarat, Baroda 390007 Bharuch - KFin Technologies Pvt. Ltd,123 Nexus

business Hub, Near Gangotri Hotel, B/s Rajeshwari Petroleum, Makampur Road, Bharuch 392001

Bhavnagar - KFin Technologies Pvt. Ltd,303 STERLING POINT ,WAGHAWADI ROAD ,-,Bhavnagar

364001 Gandhidham - KFin Technologies Pvt. Ltd,Shop # 12 Shree Ambica Arcade Plot #

300,Ward 12. Opp. CG High School ,Near HDFC Bank,Gandhidham 370201 Gandhinagar - KFin

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Gandhinagar 382011 Jamnagar - KFin Technologies Pvt. Ltd,131 Madhav Plazza, ,Opp Sbi

Bank,Nr Lal Bunglow, Jamnagar 361008 Junagadh - KFin Technologies Pvt. Ltd,124-125 Punit

Shopping Center,M.G Road, Ranavav Chowk, Junagadh 362001 Mehsana - KFin Technologies

Pvt. Ltd,FF-21 Someshwar Shopping Mall ,Modhera Char Rasta, -,Mehsana 384002 Nadiad - KFin

Technologies Pvt. Ltd,311-3rd Floor City Center ,Near Paras Circle,-,Nadiad 387001 Navsari -

KFin Technologies Pvt. Ltd,103 1ST FLOORE LANDMARK MALL,NEAR SAYAJI LIBRARY ,Navsari

Gujarat, Navsari 396445 Rajkot - KFin Technologies Pvt. Ltd,302 Metro Plaza ,Near Moti Tanki

Chowk,Rajkot, Rajkot Gujarat 360001 Surat - KFin Technologies Pvt. Ltd,Office no: -516 5th Floor

Empire State building ,Near Udhna Darwaja, Ring Road, Surat 395002 Valsad - KFin

Technologies Pvt. Ltd,406 Dreamland Arcade,Opp Jade Blue,Tithal Road, Valsad 396001 Vapi -

KFin Technologies Pvt. Ltd,A-8 FIRST FLOOR SOLITAIRE BUSINESS CENTRE,OPP DCB BANK GIDC

CHAR RASTA,SILVASSA ROAD, Vapi 396191 Chennai - KFin Technologies Pvt. Ltd,F-11 Akshaya

Plaza 1St Floor,108 Adhithanar Salai,Egmore Opp To Chief Metropolitan Court,Chennai 600002 T

Nagar/Nungambakkam - KFin Technologies Pvt. Ltd,No 23 | Cathedral Garden

Road,Cathedral Garden Road,Nungambakkam,Chennai,600 034 Calicut - KFin Technologies

Pvt. Ltd,Second Floor,Manimuriyil Centre, Bank Road,,Kasaba Village,Calicut 673001 Cochin -

KFin Technologies Pvt. Ltd,Ali Arcade 1St FloorKizhavana Road,Panampilly Nagar,Near Atlantis

Junction, Ernakualm 682036 Kannur - KFin Technologies Pvt. Ltd,2ND FLOOR,GLOBAL

VILLAGE,BANK ROAD,Kannur 670001 Kollam - KFin Technologies Pvt. Ltd,GROUND FLOORA

NARAYANAN SHOPPING COMPLEX,KAUSTHUBHSREE BLOCK,Kadapakada,Kollam 691008

Kottayam - KFin Technologies Pvt. Ltd,1St Floor Csiascension Square,Railway Station

Road,Collectorate P O,Kottayam 686002 Palghat - KFin Technologies Pvt. Ltd,No: 20 & 21 ,Metro

Complex H.P.O.Road Palakkad,H.P.O.Road,Palakkad 678001 Tiruvalla - KFin Technologies Pvt.

Ltd,2Nd FloorErinjery Complex,Ramanchira,Opp Axis Bank,Thiruvalla 689107 Trichur/Thrissur -

KFin Technologies Pvt. Ltd,4TH FLOOR, CROWN TOWER,SHAKTHAN NAGAR,OPP. HEAD POST


OFFICE,Thrissur 680001 Trivandrum - KFin Technologies Pvt. Ltd,MARVEL TOWER, 1ST FLOOR,URA-

42 STATUE,(UPPALAM ROAD RESIDENCE ASSOCIATION) ,Trivandrum 695010 Coimbatore - KFin

Technologies Pvt. Ltd,3rd Floor Jaya Enclave,1057 Avinashi Road,-,Coimbatore 641018 Erode -

KFin Technologies Pvt. Ltd,Address No 38/1 Ground Floor,Sathy Road,(VCTV Main Road),Sorna

Krishna Complex,Erode 638003 Karur - KFin Technologies Pvt. Ltd,No 88/11, BB plaza,NRMP

street,K S Mess Back side,Karur 639002 Madurai - KFin Technologies Pvt. Ltd,No. G-16/17,AR

Plaza, 1st floor,North Veli Street,Madurai 625001 Nagerkoil - KFin Technologies Pvt. Ltd,HNO 45

,1st Floor,East Car Street ,Nagercoil 629001 Pondicherry - KFin Technologies Pvt. Ltd,No

122(10b),Muthumariamman koil street,-,Pondicherry 605001 Salem -KFin Technologies Pvt. Ltd,

No.6 NS Complex, Omalur main road, Salem 636009 Tirunelveli - KFin Technologies Pvt.

Ltd,55/18 Jeney Building,S N Road,Near Aravind Eye Hospital,Tirunelveli 627001 Trichy - KFin

Technologies Pvt. Ltd,No 23C/1 E V R road, Near Vekkaliamman Kalyana Mandapam,Putthur,-

,Trichy 620017 Tuticorin - KFin Technologies Pvt. Ltd,4 - B A34 - A37,Mangalmal Mani Nagar,Opp.

Rajaji Park Palayamkottai Road,Tuticorin 628003 Vellore - KFin Technologies Pvt. Ltd,No 2/19,1st

floor,Vellore city centre,Anna salai,Vellore 632001 Agartala - KFin Technologies Pvt. Ltd,OLS RMS

CHOWMUHANI,MANTRI BARI ROAD1ST FLOOR NEAR TRAFFIC POINT,TRIPURA WEST,Agartala

799001 Guwahati - KFin Technologies Pvt. Ltd., Ganapati Enclave, 4th Floor, Opposite Bora

Service, Ullubari, Guwahati, Assam - 781007. Shillong - KFin Technologies Pvt. Ltd,Annex Mani

Bhawan ,Lower Thana Road ,Near R K M Lp School ,Shillong 793001 Silchar - KFin Technologies

Pvt. Ltd,N.N. Dutta Road,Chowchakra Complex,Premtala,Silchar 788001 Ananthapur - KFin

Technologies Pvt. Ltd,Plot No: 12-313,,Balaji Towers, Suryanagar,Ananthapur Village,Anantapur

515001 Eluru - KFin Technologies Pvt. Ltd,DNO-23A-7-72/73K K S PLAZA MUNUKUTLA VARI

STREET,OPP ANDHRA HOSPITALS,R R PETA,Eluru 534002 Guntur - KFin Technologies Pvt. Ltd,2nd

Shatter, 1st Floor,Hno. 6-14-48, 14/2 Lane,,Arundal Pet,Guntur 522002 Hyderabad - KFin

Technologies Pvt. Ltd,No:303, Vamsee Estates,Opp: Bigbazaar,Ameerpet,Hyderabad 500016

Karimnagar - KFin Technologies Pvt. Ltd,2nd ShutterHNo. 7-2-607 Sri Matha ,Complex

Mankammathota ,-,Karimnagar 505001 Kurnool - KFin Technologies Pvt. Ltd,Shop No:47,2nd

Floor,S komda Shoping mall,Kurnool 518001 Nanded - KFin Technologies Pvt. Ltd,Shop No.4

,Santakripa Market G G Road,Opp.Bank Of India,Nanded 431601 Rajahmundry - KFin

Technologies Pvt. Ltd., No. 46-23-10/A, Tirumala Arcade, 2nd Floor, Ganuga Veedhi,

Danavaipeta, Rajahmundry East, Godavari Dist., AP - 533103. Solapur - KFin Technologies Pvt.

Ltd,Block No 06,Vaman Nagar Opp D-Mart,Jule Solapur,Solapur 413004 Srikakulam - KFin

Technologies Pvt. Ltd,D No 4-4-97 First Floor Behind Sri Vijayaganapathi Temple,Pedda relli

veedhi ,Palakonda Road ,Srikakulam 532001 Tirupathi - KFin Technologies Pvt. Ltd,H.No:10-13-

425,1st Floor Tilak Road ,Opp: Sridevi Complex ,Tirupathi 517501 Vijayawada - KFin

Technologies Pvt. Ltd,HNo26-23, 1st Floor,Sundarammastreet,GandhiNagar,

Krishna,Vijayawada 520010 Visakhapatnam - KFin Technologies Pvt. Ltd,DNO : 48-10-40,

GROUND FLOOR, SURYA RATNA ARCADE, SRINAGAR, OPP ROADTO LALITHA JEWELLER

SHOWROOM,BESIDE TAJ HOTEL LADGE,Visakhapatnam 530016 Warangal - KFin Technologies

Pvt. Ltd,Shop No22 , ,Ground Floor Warangal City Center,15-1-237,Mulugu Road

Junction,Warangal 506002 Khammam - KFin Technologies Pvt. Ltd,11-4-3/3 Shop No. S-9,1st

floor,Srivenkata Sairam Arcade,Old CPI Office Near PriyaDarshini CollegeNehru Nagar

,KHAMMAM 507002 Hyderabad(Gachibowli) - KFintech Pvt.Ltd,Selenium Plot No: 31 & 32,Tower

B Survey No.115/22 115/24 115/25,Financial District Gachibowli Nanakramguda Serilimgampally

Mandal,Hyderabad,500032 Akola - KFin Technologies Pvt. Ltd,Yamuna Tarang Complex Shop

No 30,Ground Floor N.H. No- 06 Murtizapur Road,Opp Radhakrishna Talkies,Akola 444004

Amaravathi - KFin Technologies Pvt. Ltd,Shop No. 21 2nd Floor,Gulshan Tower,Near Panchsheel

Talkies Jaistambh Square,Amaravathi 444601 Aurangabad - KFin Technologies Pvt. Ltd,Shop no

B 38,Motiwala Trade Center,Nirala Bazar,Aurangabad 431001 Bhopal - KFin Technologies Pvt.

Ltd,Gurukripa Plaza, Plot No. 48A,Opposite City Hospital, zone-2,M P nagar,Bhopal 462011

Dhule - KFin Technologies Pvt. Ltd,Ground Floor Ideal Laundry Lane No 4,Khol Galli Near

Muthoot Finance,Opp Bhavasar General Store,Dhule 424001 Indore - KFin Technologies Pvt.

Ltd,101,Diamond Trade centre,-,Indore 452001 Jabalpur - KFin Technologies Pvt. Ltd., 2nd Floor,

290/1 (615-New), Near Bhavartal Garden, Jabalpur - 482001. Jalgaon - KFin Technologies Pvt.

Ltd,3rd floor,22 Yashodhah,Ring Road,Jalgaon 425001 Nagpur - KFin Technologies Pvt. Ltd,Plot

No. 2, Block No. B / 1 & 2 , Shree Apratment,Khare Town, Mata Mandir

Road,Dharampeth,Nagpur 440010 Nasik - KFin Technologies Pvt. Ltd,S-9 Second Floor,Suyojit


Sankul,Sharanpur Road,Nasik 422002 Sagar - KFin Technologies Pvt. Ltd,II floor Above shiva

kanch mandir.,5 civil lines,Sagar,Sagar 470002 Ujjain - KFin Technologies Pvt. Ltd,Heritage Shop

No. 227,87 Vishvavidhyalaya Marg,Station Road,Near ICICI bank Above Vishal Megha

Mart,Ujjain 456001 Asansol - KFin Technologies Pvt. Ltd,112/N G. T. ROAD BHANGA PACHIL,G.T

Road Asansol Pin: 713 303; ,Paschim Bardhaman West Bengal,Asansol 713303 Balasore - KFin

Technologies Pvt. Ltd,1-B. 1st Floor, Kalinga Hotel Lane,Baleshwar,Baleshwar Sadar,Balasore

756001 Bankura - KFin Technologies Pvt. Ltd,Plot nos- 80/1/ANATUNCHATI MAHALLA 3rd

floor,Ward no-24 Opposite P.C Chandra,Bankura town,Bankura 722101 Berhampur (Or) - KFin

Technologies Pvt. Ltd, Opp Divya Nandan Kalyan Mandap,3rd Lane Dharam Nagar,Near

Lohiya Motor,Berhampur (Or) 760001 Bhilai - KFin Technologies Pvt. Ltd,Office No.2, 1st Floor,Plot

No. 9/6,Nehru Nagar [East],Bhilai 490020 Bhubaneswar - KFin Technologies Pvt. Ltd,A/181 Back

Side Of Shivam Honda Show Room,Saheed Nagar,-,Bhubaneswar 751007 Bilaspur - KFin

Technologies Pvt. Ltd,Shop.No.306,3rd Floor,ANANDAM PLAZA,Vyapar Vihar Main Road,Bilaspur

495001 Bokaro - KFin Technologies Pvt. Ltd,CITY CENTRE, PLOT NO. HE-07,SECTOR-IV,BOKARO

STEEL CITY,Bokaro 827004 Burdwan - KFin Technologies Pvt. Ltd,Anima Bhavan 1st Floor Holding

No.-42,Sreepally G. T. Road,West Bengal,Burdwan 713103 Chinsura - KFin Technologies Pvt.

Ltd,No : 96,PO: CHINSURAH,DOCTORS LANE,Chinsurah 712101 Cuttack - KFin Technologies Pvt.

Ltd,SHOP NO-45,2ND FLOOR,,NETAJI SUBAS BOSE ARCADE,,(BIG BAZAR BUILDING) ADJUSENT TO

RELIANCE TRENDS,,DARGHA BAZAR,Cuttack 753001 Dhanbad - KFin Technologies Pvt. Ltd,208

New Market 2Nd Floor,Bank More,-,Dhanbad 826001 Durgapur - KFin Technologies Pvt.

Ltd,MWAV-16 BENGAL AMBUJA,2ND FLOOR CITY CENTRE,Distt. BURDWAN Durgapur-16

,Durgapur 713216 Gaya - KFin Technologies Pvt. Ltd,Property No. 711045129, Ground FloorHotel

Skylark,Swaraipuri Road,-,Gaya 823001 Jalpaiguri - KFin Technologies Pvt. Ltd,D B C Road Opp

Nirala Hotel,Opp Nirala Hotel,Opp Nirala Hotel,Jalpaiguri 735101 Jamshedpur - KFin

Technologies Pvt. Ltd,Madhukunj, 3rd Floor ,Q Road, Sakchi,Bistupur, East

Singhbhum,Jamshedpur 831001 Kharagpur - KFin Technologies Pvt. Ltd,Holding No 254/220, SBI

BUILDING,Malancha Road, Ward No.16, PO: Kharagpur, PS: Kharagpur,Dist: Paschim

Medinipur,Kharagpur 721304 Kolkata - KFin Technologies Pvt. Ltd,Apeejay House ( Beside Park

Hotel ),C Block3rd Floor,15 Park Street ,Kolkata 700016 Malda - KFin Technologies Pvt. Ltd,RAM

KRISHNA PALLY; GROUND FLOOR,ENGLISH BAZAR,-,Malda 732101 Patna - KFin Technologies Pvt.

Ltd,3A 3Rd Floor Anand Tower,Exhibition Road,Opp Icici Bank,Patna 800001 Raipur - KFin

Technologies Pvt. Ltd,OFFICE NO S-13 SECOND FLOOR REHEJA TOWER,FAFADIH CHOWK,JAIL

ROAD,Raipur 492001 Ranchi - KFin Technologies Pvt. Ltd,Room No 307 3Rd Floor ,Commerce

Tower ,Beside Mahabir Tower ,Ranchi 834001 Rourkela - KFin Technologies Pvt. Ltd,2nd Floor,

Main Road,UDIT NAGAR,SUNDARGARH,Rourekla 769012 Sambalpur - KFin Technologies Pvt.

Ltd,First Floor; Shop No. 219,SAHEJ PLAZA,Golebazar; Sambalpur,Sambalpur 768001 Siliguri - KFin

Technologies Pvt. Ltd,Nanak Complex, 2nd Floor,Sevoke Road,-,Siliguri 734001 Agra - KFin

Technologies Pvt. Ltd,House No. 17/2/4, 2nd Floor,Deepak Wasan Plaza,Behind Hotel Holiday

INN,Sanjay Place,Agra 282002 Aligarh - KFin Technologies Pvt. Ltd,Sebti Complex Centre

Point,Sebti Complex Centre Point,-,Aligarh 202001 Allahabad - KFin Technologies Pvt.

Ltd,Meena Bazar,2nd Floor 10 S.P. Marg Civil Lines,Subhash Chauraha, Prayagraj,Allahabad

211001 Ambala - KFin Technologies Pvt. Ltd,6349, 2nd Floor,Nicholson Road,Adjacent Kos

Hospitalambala Cant,Ambala 133001 Azamgarh - KFin Technologies Pvt. Ltd,House No.

290, Ground Floor,Civil lines, Near Sahara Office,-,Azamgarh 276001 Bareilly - KFin Technologies

Pvt. Ltd,1ST FLOORREAR SIDEA -SQUARE BUILDING,54-CIVIL LINES,Ayub Khan Chauraha,Bareilly

243001 Begusarai - KFin Technologies Pvt. Ltd,C/o Dr Hazari Prasad Sahu,Ward No 13, Behind

Alka Cinema,Begusarai (Bihar),Begusarai 851117 Bhagalpur - KFin Technologies Pvt. Ltd,2Nd

Floor,Chandralok ComplexGhantaghar,Radha Rani Sinha Road,Bhagalpur 812001 Darbhanga -

KFin Technologies Pvt. Ltd,Jaya Complex2Nd Floor,Above Furniture, lanetDonar, Chowk,

Darbhanga 846003 Dehradun - KFin Technologies Pvt. Ltd,Kaulagarh Road,Near Sirmaur

Margabove,Reliance Webworld,Dehradun 248001 Deoria - KFin Technologies Pvt. Ltd,K. K.

Plaza,Above Apurwa Sweets,Civil Lines Road,Deoria 274001 Faridabad - KFin Technologies Pvt.

Ltd,A-2B 2nd Floor,Neelam Bata Road Peer ki Mazar,Nehru Groundnit,Faridabad 121001

Ghaziabad - KFin Technologies Pvt. Ltd,FF - 31, Konark Building,Rajnagar,-,Ghaziabad 201001

Ghazipur - KFin Technologies Pvt. Ltd,House No. 148/19,Mahua Bagh,-,Ghazipur 233001 Gonda -

KFin Technologies Pvt. Ltd,H No 782,Shiv Sadan,ITI Road,Near Raghukul Vidyapeeth,Civil

lines,Gonda 271001 Gorakhpur - KFin Technologies Pvt. Ltd,Above V.I.P. House ajdacent,A.D.


Girls College,Bank Road,Gorakpur 273001 Gurgaon - KFin Technologies Pvt. Ltd,No: 212A, 2nd

Floor, Vipul Agora,M. G. Road,-,Gurgaon 122001 Gwalior - KFin Technologies Pvt. Ltd,City

Centre,Near Axis Bank,-,Gwalior 474011 Haldwani - KFin Technologies Pvt. Ltd,Shoop No

5,KMVN Shoping Complex,-,Haldwani 263139 Haridwar - KFin Technologies Pvt. Ltd,Shop No. -

17,Bhatia Complex,Near Jamuna Palace,Haridwar 249410 Hissar - KFin Technologies Pvt.

Ltd,Shop No. 20, Ground Floor,R D City Centre,Railway Road,Hissar 125001 Jhansi - KFin

Technologies Pvt. Ltd,1st Floor, Puja Tower,Near 48 Chambers,ELITE Crossing,Jhansi 284001

Kanpur - KFin Technologies Pvt. Ltd,15/46 B Ground Floor,Opp : Muir Mills,Civil Lines,Kanpur

208001 Lucknow - KFin Technologies Pvt. Ltd,Ist Floor,A. A. Complex,5 Park Road Hazratganj

Thaper House,Lucknow 226001 Mandi - "KFin Technologies Pvt. Ltd, House No. 99/11, 3rd

Floor,Opposite GSS Boy School,School Bazar,Mandi 175001" Mathura - KFin Technologies Pvt.

Ltd,Shop No. 9, Ground Floor, Vihari Lal Plaza,Opposite Brijwasi Centrum,Near New Bus

Stand,Mathura 281001 Meerut - KFin Technologies Pvt. Ltd,H No 5,Purva Eran, Opp Syndicate

Bank,Hapur Road,Meerut 250002 Mirzapur - KFin Technologies Pvt. Ltd,House No. 404,Ward No.

8,Dankeenganj, Mirzapur,Mirzapur 231001 Moradabad - KFin Technologies Pvt. Ltd,Chadha

Complex,G. M. D. Road,Near Tadi Khana Chowk,Moradabad 244001 Morena - KFin

Technologies Pvt. Ltd,House No. HIG 959,Near Court,Front of Dr. Lal Lab,Old Housing Board

Colony,Morena 476001 Muzaffarpur - KFin Technologies Pvt. Ltd,First Floor Saroj Complex

,Diwam Road,Near Kalyani Chowk,Muzaffarpur 842001 Noida - KFin Technologies Pvt. Ltd,F-

21,2nd Floor,Near Kalyan Jewelers,Sector-18,Noida 201301 Panipat - KFin Technologies Pvt.

Ltd,Preet Tower, 3rd Floor,Near NK Tower,G.T. Road,Panipat 132103 Renukoot - KFin

Technologies Pvt. Ltd,C/o Mallick Medical Store,Bangali Katra Main Road,Dist.

Sonebhadra (U.P.),Renukoot 231217 Rewa - KFin Technologies Pvt. Ltd,Shop No. 2, Shree Sai

Anmol Complex,Ground Floor,Opp Teerth Memorial Hospital,Rewa 486001 Rohtak - KFin

Technologies Pvt. Ltd,Shop No 14, Ground Floor,Ashoka Plaza,Delhi Road ,Rohtak 124001

Roorkee - KFin Technologies Pvt. Ltd,Shree Ashadeep Complex 16,Civil Lines,Near Income Tax

Office,Roorkee 247667 Satna - KFin Technologies Pvt. Ltd,Jainam Market,Purana Power House

Chauraha,Panni Lal Chowk,Satna 485001 Shimla - KFin Technologies Pvt. Ltd,1st Floor,Hills View

Complex,Near Tara Hall,Shimla 171001 Shivpuri - KFin Technologies Pvt. Ltd,A. B. Road,In Front of

Sawarkar Park,Near Hotel Vanasthali,Shivpuri 473551 Sitapur - KFin Technologies Pvt. Ltd,12/12

Surya Complex,Station Road ,Uttar Pradesh,Sitapur 261001 Solan - KFin Technologies Pvt.

Ltd,Disha Complex, 1St Floor,Above Axis Bank,Rajgarh Road,Solan 173212 Sonepat - KFin

Technologies Pvt. Ltd,2nd floor,DP Tower, Model Town,Near Subhash Chowk,Sonepat 131001

Sultanpur - KFin Technologies Pvt. Ltd,1st Floor, Ramashanker Market,Civil Line,-,Sultanpur

228001 Varanasi - KFin Technologies Pvt. Ltd,D-64/132, 2nd Floor ,KA, Mauza, Shivpurwa,

Settlement Plot No 478 Pargana, Dehat Amanat, Mohalla Sigra,Varanashi 221010 Yamuna

Nagar - KFin Technologies Pvt. Ltd,B-V, 185/A, 2nd Floor, Jagadri Road,,Near DAV Girls College,

(UCO Bank Building) Pyara Chowk,-,Yamuna Nagar 135001 Kolhapur - KFin Technologies Pvt.

Ltd,605/1/4 E Ward Shahupuri 2Nd Lane,Laxmi Niwas,Near Sultane Chambers,Kolhapur 416001

Mumbai - KFin Technologies Pvt. Ltd,24/B Raja Bahadur Compound,Ambalal Doshi

Marg,Behind Bse Bldg,Fort 400001 Pune - KFin Technologies Pvt. Ltd,Office # 207-210, second

floor,Kamla Arcade, JM Road. Opposite Balgandharva,Shivaji Nagar,Pune 411005 Vashi - KFin

Technologies Pvt. Ltd,Vashi Plaza,Shop no. 324,C Wing, 1ST Floor,Sector 17,Vashi

Mumbai,400705 Vile Parle - KFin Technologies Pvt. Ltd,Shop No.1 Ground Floor,,Dipti Jyothi Co-

operative Housing Society,,Near MTNL office P M Road,,Vile Parle East,400057 Borivali - KFin

Technologies Pvt. Ltd,Gomati SmutiGround Floor,Jambli Gully,Near Railway Station ,Borivali

Mumbai,400 092 Thane - KFin Technologies Pvt. Ltd,Room No. 302 3rd FloorGanga Prasad,Near

RBL Bank Ltd,Ram Maruti Cross RoadNaupada Thane West ,Mumbai,400602 Ajmer - KFin

Technologies Pvt. Ltd,302 3rd Floor,Ajmer Auto Building,Opposite City Power House,Jaipur

Road; Ajmer 305001 Alwar - KFin Technologies Pvt. Ltd,Office Number 137, First Floor,Jai

Complex,Road No-2,Alwar 301001 Amritsar - KFin Technologies Pvt. Ltd,SCO 5 ,2nd Floor, District

Shopping Complex,Ranjit Avenue,Amritsar 143001 Bhatinda - KFin Technologies Pvt. Ltd,MCB -Z-

3-01043, 2 floor, GONIANA ROAD,OPPORITE NIPPON INDIA MF GT ROAD,NEAR HANUMAN

CHOWK,Bhatinda 151001 Bhilwara - KFin Technologies Pvt. Ltd,Office No. 14 B, Prem

Bhawan,Pur Road, Gandhi Nagar,Near CanaraBank,Bhilwara 311001 Bikaner - KFin

Technologies Pvt. Ltd,70-71 2Nd Floor | Dr.Chahar Building ,Panchsati Circle,Sadul Ganj

,Bikaner 334003 Chandigarh - KFin Technologies Pvt. Ltd,First floor, SCO 2469-70,Sec. 22-C,-


,Chandigarh 160022Ferozpur - KFin Technologies Pvt. Ltd,The Mall Road Chawla Bulding Ist

Floor,Opp. Centrail Jail,Near Hanuman Mandir,Ferozepur 152002 Hoshiarpur - KFin Technologies

Pvt. Ltd,Unit # SF-6,The Mall Complex,2nd Floor , Opposite Kapila Hospital,Sutheri

Road,Hoshiarpur 146001 Jaipur - KFin Technologies Pvt. Ltd,Office no 101, 1st Floor,Okay Plus

Tower,Next to Kalyan Jewellers,Government Hostel Circle, Ajmer Road,Jaipur 302001 Jalandhar

- KFin Technologies Pvt. Ltd,Office No 7, 3rd Floor, City Square building,E-H197 Civil Line,Next to

Kalyan Jewellers,Jalandhar 144001 Jammu - KFin Technologies Pvt. Ltd.,304, A-1, 03rd Floor

,North Block, Bahu Plaza, Jammu -180004. Jodhpur - KFin Technologies Pvt. Ltd,Shop No. 6,

GANG TOWER, G Floor,OPPOSITE ARORA MOTER SERVICE CENTRE,NEAR BOMBAY MOTER

CIRCLE,Jodhpur 342003 Karnal - KFin Technologies Pvt. Ltd,18/369Char Chaman,Kunjpura

Road,Behind Miglani Hospital,Karnal 132001 Kota - KFin Technologies Pvt. Ltd,D-8, SHRI RAM

COMPLEX,OPPOSITE MULTI PURPOSE SCHOOL,GUMANPUR,Kota 324007 Ludhiana - KFin

Technologies Pvt. Ltd,SCO 122, Second floor,Above Hdfc Mutual fun,,Feroze Gandhi

Market,Ludhiana 141001 Moga - KFin Technologies Pvt. Ltd,1St FloorDutt Road,Mandir Wali

Gali,Civil Lines Barat Ghar ,Moga 142001 New Delhi - KFin Technologies Pvt. Ltd,305 New Delhi

House ,27 Barakhamba Road ,-,New Delhi 110001 Pathankot - KFin Technologies Pvt. Ltd,2nd

Floor Sahni Arcade Complex,Adj.Indra colony Gate Railway Road,Pathankot,Pathankot 145001

Patiala - KFin Technologies Pvt. Ltd,B- 17/423,Lower Mall Patiala,Opp Modi College,Patiala

147001 Sikar - KFin Technologies Pvt. Ltd,First FloorSuper Tower ,Behind Ram Mandir

Near Taparya Bagichi ,-,Sikar 332001Sri Ganganagar - KFin Technologies Pvt. Ltd,Address Shop

No. 5, Opposite Bihani Petrol Pump,NH - 15,near Baba Ramdev Mandir,Sri Ganganagar 335001

Udaipur - KFin Technologies Pvt. Ltd,Shop No. 202, 2nd Floor business centre,1C Madhuvan,Opp

G P O Chetak Circle ,Udaipur 313001

KFin Technologies Pvt. Ltd., Registrar & Transfer Agents of Axis Mutual Fund having its office at

Unit: Axis Mutual Fund, Selenium, Tower B, Plot number 31 & 32, Financial District, Gachibowli,

Nanakramguda, Serilingampally Mandal, Hyderabad 500 032 is the collection centre of

transactions / request for electronic transactions received from specified banks, financial

institutions, distribution channel etc. (mobilized on behalf of their clients) with whom the AMC

has entered or may enter into specific arrangements for purchase/ sale/switch of units.


investors.

In addition to the existing official points of acceptance (“OPA”) for accepting transactions in

the units of the schemes of the Axis Mutual Fund as disclosed in the SID,




House, 1st Floor, C-2 Wadia International, Pandurang Budhkar Marg, Worli, Mumbai - 400025,

India.



Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act,

1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund

Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC) Risk Factors: Axis

Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of

the scheme.


carefully.



1 Axis Banking & PSU Debt Fund


Axis Banking & PSU Debt Fund

An open ended debt scheme predominantly investing in debt instruments of Banks, Public Sector

Undertakings & Public Financial Institutions.



• Regular income over short to medium term

• Investment in debt and money market instruments issued by

Banks, PFIs & PSUs.







www.axismf.com



of India (Mutual Funds) Regulations, 1996, (herein after referred to as SEBI (MF) Regulations or the


Management Company (AMC). The Units being offered for public subscription have not been approved or


Document.


prospective investor ought to know before investing. Before investing, investors should also ascertain about











TABLE OF CONTENTS

HIGHLIGHTS/SUMMARY OF THE SCHEME ................................................................................ 3 I. INTRODUCTION.................................................................................................................................. 4 A. RISK FACTORS .................................................................................................................................... 4

i. Standard Risk Factors: ................................................................................................................ 4 ii. Scheme Specific Risk Factors ................................................................................................... 4

B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME ........................................................ 6 C. SPECIAL CONSIDERATIONS, if any ........................................................................................... 6 D. DEFINITIONS ........................................................................................................................................ 8 E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY ................................................... 12 II. INFORMATION ABOUT THE SCHEME ........................................................................................... 13 A. TYPE OF THE SCHEME ..................................................................................................................... 13 B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? ....................................................... 13 C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? ................................................................. 13 D. WHERE WILL THE SCHEME INVEST? .............................................................................................. 35 E. WHAT ARE THE INVESTMENT STRATEGIES? ................................................................................. 36 F. FUNDAMENTAL ATTRIBUTES ........................................................................................................... 39 G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? ................................................ 39 H. WHO MANAGES THE SCHEME? ................................................................................................... 40 I. WHAT ARE THE INVESTMENT RESTRICTIONS? ............................................................................ 40 J. CREATION OF SEGREGATED PORTFOLIO .................................................................................. 44 K. HOW HAS THE SCHEME PERFORMED? ....................................................................................... 48 L. INVESTMENTS BY THE AMC ............................................................................................................ 49 M. ADDITIONAL SCHEME RELATED DISCLOSURES ......................................................................... 49 III. UNITS AND OFFER ............................................................................................................................ 51 A. NEW FUND OFFER (NFO) ............................................................................................................... 51 B. ONGOING OFFER DETAILS ............................................................................................................ 62 C. PERIODIC DISCLOSURES ................................................................................................................ 95 D. COMPUTATION OF NAV ................................................................................................................ 98 IV. FEES AND EXPENSES ....................................................................................................................... 99 A. NEW FUND OFFER (NFO) EXPENSES ............................................................................................ 99 B. ANNUAL SCHEME RECURRING EXPENSES ................................................................................. 99 D. LOAD STRUCTURE .......................................................................................................................... 102 E. WAIVER OF LOAD FOR DIRECT APPLICATIONS ..................................................................... 103 V. RIGHTS OF UNIT HOLDERS ........................................................................................................... 104


INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY ............................................................................ 105




To generate stable returns by investing predominantly in debt & money market instruments

issued by Banks, Public Sector Units (PSUs) & Public Financial Institutions (PFIs). The Scheme

shall endeavor to generate optimum returns with low credit risk.

Liquidity


Business Days. Under normal circumstances, the AMC shall dispatch the redemption

proceeds within 10 business days from the date of receipt of request from the Unit holder.

Benchmark

NIFTY Banking & PSU Debt Index

Loads


Exit Load: Nil

SEBI vide its circular no. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009 has decided

that there shall be no entry load for all Mutual Fund schemes. The upfront commission on





Minimum Application Amount







The AMC will calculate and disclose the NAVs on all Business Days. The AMC shall update

the NAVs on its website (www.axismf.com) and of the Association of Mutual Funds in India -

AMFI (www.amfiindia.com) before 11.00 p.m. on every Business Day. If the NAVs are not

available before the commencement of Business Hours on the following day due to any

reason, the Mutual Fund shall issue a press release giving reasons and explaining when the


The AMC will disclose the portfolio of the Scheme (alongwith ISIN) as on the last day of the

month/ half year on the website of the Mutual Fund and AMFI within 10 days from the close

of each month/ half year (i.e. 31st March and 30th September) respectively in a user-

friendly and downloadable spreadsheet format. Further, AMC shall publish an

advertisement, in an all India edition of one national English daily newspaper and in one

Hindi newspaper, every half year disclosing the hosting of the half-yearly statement of its

schemes portfolio on the website of the Mutual Fund and AMFI and the modes through

which unitholder can submit a request for a physical or electronic copy of the statement of

scheme portfolios.










I. INTRODUCTION

A. RISK FACTORS


Investment in mutual fund units involves investment risks such as trading volumes,






Axis Banking & PSU Debt Fund is the name of the Scheme and does not in any manner

indicate either the quality of the Scheme or its future prospects and returns.



Fund.

Axis Banking & PSU Debt Fund is not a guaranteed or assured return scheme.


Risk factors associated with investments in Banks, PSUs & PFIs

Banks, PSUs and PFIs, may be subjected to additional risks as they are heavily regulated and

affected by government policies, which may have impact on the credit profile of these

issuers.



money market instruments and derivatives 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 depends upon the coupon and

maturity of the security. It also depends upon the yield level at which the security is being

traded.



coupon of the bond.












Liquidity Risk on account of unlisted securities

The liquidity and valuation of the Schemes’ investments due to their holdings of unlisted

securities may be affected if they have to be sold prior to their target date of divestment.

The unlisted security can go down in value before the divestment date and selling of these

securities before the divestment date can lead to losses in the portfolio.

Credit Risk: This is the risk associated with the issuer of a debenture/bond or a money

market instrument defaulting on coupon payments or in paying back the principal amount

on maturity. Even when there is no default, the price of a security may change with

expected changes in the credit rating of the issuer. It is to be noted here that a

Government Security is a sovereign security and is the safest. Corporate bonds carry a

higher amount of credit risk than Government Securities. Within corporate bonds also there


are different levels of safety and a bond rated higher by a particular rating agency is safer

than a bond rated lower by the same rating agency.



movements in NAV.





Fund has no control.




equivalent securities of the same type or class at the end of the specified period along with

the corporate benefits accruing on the securities borrowed. There are risks inherent in

securities lending, including the risk of failure of the other party, in this case the approved

intermediary to comply with the terms of the agreement. Such failure can result in a

possible loss of rights to the collateral, the inability of the approved intermediary to return

the securities deposited by the lender and the possible loss of corporate benefits accruing

thereon.

Short-selling is the sale of shares or securities that the seller does not own at the time of

trading. Instead, he borrows it from someone who already owns it. Later, the short seller

buys back the stock/security he shorted and returns the stock/security to the lender to close

out the loan. The inherent risks are Counterparty risk and liquidity risk of the stock/security

being borrowed. The security being short sold might be illiquid or become illiquid and

covering of the security might occur at a much higher price level than anticipated, leading

to losses.



















quality or guarantees provided or any other asset provided as security acceptable to

lenders.



ability of the fund to enforce collateral and recover capital and interest obligations. Also

there is a possibility of guarantor going insolvent which also can impact the recovery value

of exposure. In case of credit enhanced structures backed by equity share the liquidity of

the underlying shares may be low leading to a lower recovery and a higher impact cost of






more than 25% of the corpus of the Scheme. The aforesaid conditions should be complied












this regard.


• Prospective investors should study this Scheme Information Document and Statement of

Additional Information carefully in its entirety and should not construe the contents


and are advised to consult their legal, tax, financial and other professional advisors to

determine possible legal, tax, financial or other considerations of subscribing to or

redeeming Units, before making a decision to invest/redeem/hold Units.

• The Scheme related documents i.e. SID/ KIM/ SAI or the units of the Fund are not












other legal requirements. Accordingly, the Scheme related documents do not

constitute an offer or solicitation by anyone in any jurisdiction in which such offer or

solicitation is not lawful or in which the person making such offer or solicitation is not

qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation

as per applicable law.

• The AMC, Trustee or the Mutual Fund have not authorized any person to issue any


written, other than that contained in this Scheme Information Document or the

Statement of Additional Information or as is provided by the AMC in connection with

this offering. Prospective investors are advised not to rely upon any information or

representation not incorporated in the Scheme Information Document or Statement of

Additional Information or as provided by the AMC as having been authorized by the

Mutual Fund, the AMC or the Trustee.

• Redemption due to change in the fundamental attributes of the Scheme or due to any

other reasons may entail tax consequences. The Trustee, AMC, Mutual Fund, their


arise due to such Redemptions.

• The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for

any of the tax consequences that may arise, in the event that the Scheme is wound up

for the reasons and in the manner provided in ‘Statement of Additional Information’.

• The tax benefits described in this Scheme Information Document and Statement of





practice currently in force in India as on the date of this Scheme Information Document

and the Unit holders should be aware that the relevant fiscal rules or their interpretation

may change. As is the case with any investment, there can be no guarantee that the

tax position or the proposed tax position prevailing at the time of an investment in the

Scheme will endure indefinitely. In view of the individual nature of tax consequences,

each Unit holder is advised to consult his / her own professional tax advisor.

• The Mutual Fund may disclose details of the investor’s account and transactions there

under to those intermediaries whose stamp appears on the application form or who

have been designated as such by the investor. In addition, the Mutual Fund may

disclose such details to the bankers, as may be necessary for the purpose of effecting

payments to the investor. The Fund may also disclose such details to regulatory and

statutory authorities/bodies as may be required or necessary.

• In case the AMC or its Sponsor or its Shareholders or their affiliates/associates or group

companies make substantial investment, either directly or indirectly in the Scheme,

Redemption of units by these entities may have an adverse impact on the performance

of the Scheme. This may also affect the ability of the other. Unit holders to redeem their

units.

• As the liquidity of the Scheme’s investments may sometimes be restricted by trading

volumes and settlement periods, the time taken by the Fund for Redemption of Units

may be significant in the event of an inordinately large number of Redemption requests

or of a restructuring of the Scheme’s portfolio. In view of this, the Trustee has the right, in

its sole discretion, to limit Redemptions under certain circumstances - please refer to the

paragraph “Suspension/Restriction on Redemption of Units of the Scheme”.

• Pursuant to the provisions of Prevention of Money Laundering Act, 2002, if after due



the unit holder the AMC shall have absolute discretion to report such suspicious

transactions to FIU-IND and / or to freeze the folios of the investor(s), reject any

application(s)/redemptions / allotment of Units.


D. DEFINITIONS

"AMC" / "Asset

Management

Company" /

"Investment

Manager"


provisions of the Companies Act, 1956 and approved by Securities and

Exchange Board of India to act as the Asset Management Company

for the scheme(s) of Axis Mutual Fund.


based on the time of the Business Day on which the application is time

stamped.

“Book Closure” The time during which the Asset Management Company would

temporarily suspend Sale, redemption and Switching of Units.


i. Saturday and Sunday;

ii. A day on which the banks in Mumbai and /or RBI are closed for

business /clearing;

iii. A day on which the National Stock Exchange of India Ltd. and/or

BSE Ltd., Mumbai are closed;

iv. A day which is a public and /or bank Holiday at an Investor Service

Centre/Official Point of Acceptance where the application is

received;

v. A day on which Sale / Redemption / Switching of Units is


vi. A day on which normal business cannot be transacted due to

storms, floods, bandhs, strikes or such other events as the AMC may

specify from time to time.

Further, the day(s) on which the money markets are closed / not

accessible, shall not be treated as Business Day(s).



Acceptance.

"Business Hours" Presently 9.30 a.m. to 5.30 p.m. on any Business Day or such other time

as may be applicable from time to time.

"Custodian" A person who has been granted a certificate of registration to carry on

the business of custodian of securities under the Securities and

Exchange Board of India (Custodian of Securities) Regulations 1996,

which for the time being is Deutsche Bank AG.

"Deed of Trust" The Deed of Trust dated June 27, 2009 made by and between Axis

Bank Ltd. and Axis Mutual Fund Trustee Ltd. thereby establishing an



"Derivative" Derivative includes (i) a security derived from a debt instrument, share,

loan whether secured or unsecured, risk instrument or contract for

differences or any other form of security; (ii) a contract which derives

its value from the prices, or index of prices, or underlying securities.


“Dividend Sweep


Facility given to the Unit holders to automatically invest the dividend

by eligible source scheme into eligible target scheme of the Mutual

Fund.

"Exit Load" Load on Redemption / Switch out of Units.



A person who satisfies the eligibility criteria prescribed under regulation

4 of SEBI (Foreign Portfolio Investors) Regulations, 2014 and has been

registered under Chapter II of these regulations, which shall be

deemed to be an intermediary in terms of the provisions of the Act.

"Floating Rate

Debt Instruments"

Floating rate debt instruments are debt securities issued by Central and

/ or State Government, corporates or PSUs with interest rates that are

reset periodically. The periodicity of the interest reset could be daily,

monthly, quarterly, half-yearly, annually or any other periodicity that


may be mutually agreed with the issuer and the Fund. The interest on

the instruments could also be in the nature of fixed basis points over

the benchmark gilt yields.

"Gilts" /

"Government

Securities"

Securities created and issued by the Central Government and/or a

State Government (including Treasury Bills) or Government Securities as

defined in the Public Debt Act, 1944, as amended or re-enacted from

time to time.


“Holiday” Holiday means the day(s) on which the banks (including the Reserve

Bank of India) are closed for business or clearing in Mumbai or their

functioning is affected due to a strike / bandh call made at any part

of the country or due to any other reason.

"Investment

Management

Agreement"

The agreement dated June 27, 2009 entered into between Axis Mutual

Fund Trustee Ltd. and Axis Asset Management Company Ltd., as

amended from time to time.

"Investor Service

Centres" / "ISCs"

Offices of Axis Asset Management Company Ltd. or such other centres

/ offices as may be designated by the AMC from time to time.


deducted from the Applicable NAV on the Redemption / Switch out

(Exit Load) and in the case of Sale / Switch in of a Unit, a sum of money

to be paid by the prospective investor on the Sale / Switch in of a Unit

(Entry Load) in addition to the Applicable NAV.


"Money Market

Instruments"


Government securities having an unexpired maturity upto one year,

call or notice money, certificate of deposit, usance bills and any other

like instruments as specified by the Reserve Bank of India from time to

time.

"Mutual Fund" /

"the Fund"

Axis Mutual Fund, a trust set up under the provisions of the Indian Trusts

Act, 1882.

"Net Asset Value"

/ "NAV"


described in this Scheme Information Document or as may be

prescribed by the SEBI (MF) Regulations from time to time.

"NRI" A Non-Resident Indian or a Person of Indian Origin residing outside

India.

"Official Points of

Acceptance"

Places, as specified by AMC from time to time where application for

Subscription / Redemption / Switch will be accepted on ongoing basis.

“Overseas Citizen


Means a person registered as an Overseas Citizen of India Cardholder

by the Central Government under section 7A of The Citizenship Act,

1955.

"Person of Indian

Origin"

A citizen of any country other than Bangladesh or Pakistan, if (a) he at

any time held an Indian passport; or (b) he or either of his parents or

any of his grandparents was a citizen of India by virtue of Constitution

of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a

spouse of an Indian citizen or person referred to in sub-clause (a) or

(b).

“PFI” PFI means the list of public financial institutions as defined under

Section 2(72) of the Companies Act, 2013 and other applicable

provisions of the Companies Act, 2013, read with applicable

rules/notifications (including any statutory modification(s) or re-

enactment thereof, for the time being in force).

“Public Sector

Undertaking

(PSU)”

A Public Sector Undertaking (PSU) means a company in which more

than fifty per cent of the paid-up share capital is held by either the

Central Government, or by any State Government(s) or partly by the

Central Government and partly by one or more State Governments

and includes a company which is a subsidiary of a Government

company as thus defined and/or

A PSU is a company in which the Central Government or one or more

State Government(s) either singly or together, exercise control over


management or exercise power to appoint majority of directors.

"Rating" Rating means an opinion regarding securities, expressed in the form of

standard symbols or in any other standardized manner, assigned by a

credit rating agency and used by the issuer of such securities, to

comply with any requirement of the SEBI (Credit Rating Agencies)

Regulations, 1999.

"RBI" Reserve Bank of India, established under the Reserve Bank of India Act,

1934, (2 of 1934).

"Registrar and

Transfer Agent" /

“Registrar”

Karvy Fintech Pvt. Ltd., Hyderabad, currently acting as registrar to the

Scheme, or any other Registrar appointed by the AMC from time to

time.

"Redemption /

Repurchase"


“Regulatory

Agency”

GOI, SEBI, RBI or any other authority or agency entitled to issue or give

any directions, instructions or guidelines to the Mutual Fund.



"Statement of

Additional

Information" / "SAI"

The document issued by Axis Mutual Fund containing details of Axis

Mutual Fund, its constitution, and certain tax, legal and general

information. SAI is legally a part of the Scheme Information Document.

"Sale /

Subscription"



"Scheme" Axis Banking & PSU Debt Fund.

“Scheme

Information

Document”

This document issued by Axis Mutual Fund, offering for Subscription of

Units of Axis Banking & PSU Debt Fund (including Options there under).



"SEBI (MF)

Regulations" /

"Regulations"

Securities and Exchange Board of India (Mutual Funds) Regulations,

1996, as amended from time to time.

"Short Selling" Short selling means selling a stock which the seller does not own at the

time of trade.


"Switch" Redemption of a unit in any scheme (including the options therein) of

the Mutual Fund against purchase of a unit in another scheme

(including the options therein) of the Mutual Fund, subject to

completion of Lock-in Period, if any.

"Stock Lending" Lending of securities to another person or entity for a fixed period of

time, at a negotiated compensation in order to enhance returns of the

portfolio.

“Systematic

Investment Plan”/

“SIP”

A plan enabling investors to save and invest in the Scheme on a

periodic basis submitting post dated cheques / payment instructions.

“Systematic

Transfer Plan” /

“STP”

Facility given to the Unit holders to transfer sums on periodic basis from

one scheme to another scheme launched by the Mutual Fund from

time to time by giving a single instruction.

“Systematic

Withdrawal Plan”

/ “SWP”

Facility given to the Unit holders to withdraw a specified sum of money

monthly/quarterly/half yearly/annually from his investment in the

Scheme.

“Tri Party Repos” Tri-party repo means a repo contract where a third entity (apart from

the borrower and lender), called a Tri-Party Agent, acts as an

intermediary between the two parties to the repo to facilitate services

like collateral selection, payment and settlement, custody and


"Trust Deed" The Trust Deed dated June 27, 2009 made by and between Axis Bank

Limited and Axis Mutual Fund Trustee Limited thereby establishing an


“Trustee” /

“Trustee

Company”

Axis Mutual Fund Trustee Ltd., incorporated under the provisions of the

Companies Act, 1956 and approved by SEBI to act as the Trustee to

the Schemes of the Mutual Fund.


"Unit" The interest of the Unit holder which consists of each Unit representing

one undivided share in the assets of the Scheme.

"Unit holder" /

"Investor"


INTERPRETATION



• all references to the masculine shall include the feminine and all references, to the


• all references to "dollars" or "$" refer to United States Dollars and "Rs" refer to Indian


• all references to timings relate to Indian Standard Time (IST).

• References to a day are to a calendar day including a non Business Day.






time to time.






Scheme.









An open ended debt scheme predominantly investing in debt instruments of Banks, Public

Sector Undertakings & Public Financial Institutions.






Under normal circumstances the asset allocation pattern will be:

Instruments



Minimum Maximum (Low/Medium /High)

Debt & Money Market Instruments issued by

Banks, Public Financial Institutions (PFIs) and

Public Sector Undertakings (PSUs)

80 100 Low to Medium

Debt (including government securities) and

Money Market Instruments* issued by entities

other than Banks, PFIs and PSUs

0 20 Low

*Includes units of debt and liquid mutual fund schemes. Investment in mutual fund units will

be restricted to 10% of the net assets of the Scheme. Investment may also be made in

instruments issued by NBFCs. The Scheme will not undertake repo transactions in corporate

debt securities. The Scheme will not invest in derivatives and securitized debt.

Financial institutions shall mean public financial institutions as defined under Section 2(72) of

the Companies Act, 2013 and other applicable provisions of the Companies Act, 2013,

read with applicable rules/notifications (including any statutory modification(s) or re-

enactment thereof, for the time being in force).

In accordance with the applicable SEBI circulars issued from time to time, the total

exposure in a particular sector (excluding investments in Bank CDs, CBLO, Government

Securities, T-Bills, short term deposits of scheduled commercial banks and AAA rated

securities issued by Public Financial Institutions and Public Sector Banks) shall not exceed

20% of the net assets of the Scheme. Provided that an additional exposure to financial

services sector (over and above the limit of 20%) not exceeding 10% of the net assets of the

Scheme shall be allowed by way of increase in exposure to Housing Finance Companies

(HFCs). Provided further that the additional exposure to such securities issued by HFCs are

rated AA and above and these HFCs are registered with National Housing Bank (NHB) and

the total Investment/exposure in HFCs shall not exceed 20% of the net assets of the Scheme.

Further, an additional exposure of 5% of the net assets of the scheme has been allowed for



Pending deployment of the funds in securities in terms of investment objective of the

Scheme, the AMC may park the funds of the Scheme in short term deposits of the

Scheduled Commercial Banks, subject to the guidelines issued by SEBI vide its circular

dated April 16, 2007, as may be amended from time to time.


relating to Short Selling and securities lending and borrowing specified by SEBI. The Scheme

shall not deploy more than 20% of its net assets in securities lending and not more than 5%

of the net assets of the Scheme will be deployed in securities lending to any single

counterparty.



Markets Instruments (subject to the asset allocation above). The portfolio may hold cash

depending on the market condition.

The portfolio duration will undergo a change according to the expected movement in

interest rates, liquidity conditions and other macro-economic factors and according to the

fund manager’s view. The Scheme may review the pattern of investments based on views

on interest rates and asset liability management needs. However, at all times the portfolio

will adhere to the overall investment objectives of the Scheme.

Subject to the SEBI Regulations, the asset allocation pattern indicated above may change

from time to time, keeping in view market conditions, market opportunities, applicable

regulations and political and economic factors. It must be clearly understood that the

percentages stated above are only indicative and not absolute. These proportions can

vary substantially depending upon the perception of the fund manager; the intention

being at all times to seek to protect the interests of the Unit holders. Such changes in the

investment pattern will be for short term and for defensive considerations only. In case of

deviation, the portfolio would be rebalanced within 30 business days from the date of

deviation. In case the same is not aligned to the above asset allocation pattern within 30

business days, justification shall be provided to the Investment Review Committee and

reasons for the same shall be recorded in writing. The Investment Review Committee shall

then decide on the course of action.

Axis Banking & PSU Debt Fund, an open-ended Debt Scheme predominantly investing in

debt instruments of Banks, Public Sector Undertakings & Public Financial Institutions is a

different scheme offered by Axis Mutual Fund and is not a minor modification of any other

existing scheme/product of Axis Mutual Fund.




Name of

the existing

scheme





No. of

Folios

Axis Short

Term Fund

Instruments

Indicative


assets)

Risk

Profile

(Low/

Medium/

High) Minimu

m

Maximu

m

Debt and

Money Market

instruments

0 100 Low to

Medium

Units issued by

REITs & InvITs 0 10

Medium

to high







market instruments. However, there

can be no assurance that the

investment objective of the scheme

will be achieved.







The Indian debt market is in a phase

of rapid transformation with liquidity

and investment opportunities arising

in various debt segments along with

the introduction of new instruments.



various fixed income securities with


risk adjusted returns. After doing a

thorough research on the general

macroeconomic condition, political

environment, systemic liquidity,

inflationary expectations, corporate


and market considerations the

portfolio duration and credit

An open ended

short term debt

scheme

investing in

instruments such

that the

Macaulay

duration of the

portfolio is

between 1 year

to 3 years

3,100.27 14,133


exposures will be decided.



























Axis

Treasury

Advantag

e Fund

Instruments


(% of net assets)

Risk

Profile

Minimum Maximu

m

Low/Me

dium/Hi

gh

Debt & Money

Market

Instruments

0 100 Low to

Mediu

m











liquidity. However, there can be no

assurance that the investment

An open ended

low duration

debt scheme

investing in

instruments such

that the

Macaulay

duration of the

portfolio is

between 6 to 12

months

3,610.39 22,898


objective of the scheme will be

achieved.

Investment Strategy










liquidity.

The portfolio construction will seek to

play out the shape of the curve

(overnight – 12 months, 1Year-3Year,

steep/flat/inverted) and

differentiated levels of risk premia

offered by the market to different

class of issuers. E.g. yields for 1Year

instrument issued by a bank, a NBFC,

a manufacturing corporate, a

broking company can differ by as

high as 100-500 basis points even if

all of them are rated equally by the

credit rating agency. Accordingly,

there is a trade-off in terms of their

respective liquidity. In view of the

Fund’s objective of maximizing

returns with maintaining high

liquidity, the portfolio will be

constructed with judicious mix of

instruments issued by the universe of

eligible issuers across the spectrum.

Portfolio maturity (in months) is

determined after analysing the









evaluation of the money market

and debt instruments proposed to

be invested in. The credit evaluation

will essentially be a bottom up

approach and include a study of

the operating environment of the

issuer, the past track record as well

as the future prospects of the issuer

and the short term / long term

financial health of the issuer.



















mentioned above.

Axis

Dynamic

Bond Fund

Instruments

Indicative

Allocation (% of

net assets)

Risk

Profile

Minimu Maximu Low/







An open ended

dynamic debt

scheme

investing across

duration

144.64 3089


m m Medium

/

High

Debt

instruments

including G-

Secs and

corporate debt

0% 100% Low to

Medium

Money market

instruments

0% 100% Low

Units issued by

REITs & InvITs

0 10 Medium

to High

Investment Strategy













moving up. The fund will be actively

churned to capture price

appreciation and endeavor to

minimize the negative movements in

prices. While long term funds try to

optimize returns in the long term, this

fund will look to micro manage the

portfolio and endeavor to optimize

returns. Active calls on the shape of

the yield curve (sovereign gilt curve

or the corporate bond curve) and

the spread between corresponding

points of different yield curves (say 5y

gilt versus 5y AAA corporate bond)

will be taken to endeavor to

maximize the returns to the investor.






















various fixed income securities with


risk adjusted returns. After doing a

thorough research on the general

macroeconomic condition, political

environment, systemic liquidity,





decided.

Axis Gilt

Fund

Instruments

Indicative

Allocation

(% of net

assets)

Risk Profile

(Low/

Medium/

High)

Government

Securities and

Treasury Bills

80-100 Sovereign

Debt & Money


Low to

Medium







Investment Strategy











An open ended

debt scheme

investing in

government

securities across

maturity

46.60 1,045













permitted by RBI.



















the fund manager.

The Scheme will purchase securities

in the public offerings, as well as

those traded in the secondary

markets. On occasions, if deemed

appropriate, the Scheme may also

participate in auction of

Government Securities. The Mutual

Fund will seek to underwrite issuance


of Government Securities if and

when permitted by SEBI/RBI and

subject to the prevailing rules and

regulations specified in this respect

and may also participate in their

auction from time to time.









Axis

Strategic

Bond Fund


(% of net assets)

Risk

Profile

Minimu

m

Maximu

m

Debt and Money

Market instruments

0 100 Low to

Mediu

m

Units issued by

REITs & InvITs

0 10 Mediu

m to

High







instruments.






medium term.






The fund management team is

going to take a medium term view

on the interest rate structure. While

determining the portfolio duration,


the state of the local economy,

An open ended

medium term

debt scheme

investing in

instruments such

that the

Macaulay

duration of the

portfolio is

between 3 years

to 4 years

1,212.00 9,643


inflation numbers as well as the

global economic scenario.

















curve). The fund will maintain a

diversified portfolio with the

objective of achieving optimal risk

adjusted returns in the medium term.









decided.

Axis Credit

Risk Fund

Instruments

Indicative

Allocation

(% of net assets)

Risk

Profile

Minimu

m Maximum

High/

Mediu

m/Low





credit spectrum. However, there is no

assurance or guarantee that the

investment objective of the Scheme

will be achieved. The Scheme does

An open ended

debt scheme

predominantly

investing in AA

and below

rated corporate

bonds

(excluding AA+

1,336.66 11,985


Corporate Debt

rated AA^ and

below

65% 100% Low to

Mediu

m

Other Debt &

Money Market

instruments

0% 35% Low to

Mediu

m

Units issued by

REITs & InvITs

0% 10% Mediu

m to

High

not assure or guarantee any returns.

















levels of risk.

Axis Credit Risk Fund is a fixed

income fund which will endeavor to

generate stable returns by investing

in debt & money market instruments

across the yield curve & credit

spectrum. This fund will have the

ability to maintain a relatively higher

exposure to fixed income instruments

which are not AAA & equivalent.

The fund endeavors to take

advantage of opportunities arising

from the credit spectrum. Historically,

the spread between AAA and AA is

dynamic and changes over time.

The fund manager can dynamically

change the portfolio credit

composition to take advantage of

these opportunities.

The fund proposes to take

rated corporate

bonds)


advantage of opportunities arising

from the credit spectrum. Some of

the strategies that we may follow are

as follows:

1) Opportunity from credit spreads

between AAA and AA rated fixed

income instruments

2) Opportunity from migration of

ratings

The above are some examples of

credit strategies currently available

in the Indian fixed income markets.

The fund will endeavor to use other

credit strategies across the spectrum

as & when they are available in the

Indian markets.

Further there is an opportunity from

the migration of ratings. Through the

Axis credit process, we endeavor to

avoid taking exposures where there

is a risk of downgrade and take

exposure in cases where we think

there is a potential for an upgrade.

The fund will aim to take advantage

of these opportunities from credit

spreads as well as potential from

rating migrations.


















curve).




systemic liquidity,





decided.

Axis

Banking &

PSU Debt

Fund

Instruments




um /High)

Debt &

Money

Market

Instruments

issued by

Banks,

Public

Financial

Institutions

(PFIs) and

Public

Sector

Undertakin

gs (PSUs)

80 100 Low to

Medium

Debt

(including

governmen

t securities)

and Money

Market

0 20 Low
























An Open ended

Debt Scheme

predominantly

investing in debt

instruments of

Banks, Public

Sector

Undertakings &

Public Financial

Institutions.

9,960.78 17,137


Instruments

issued by

entities

other than

Banks, PFIs

and PSUs






and equivalent.












of the issuer.

Financial institutions shall mean

public financial institutions as defined

under Section 2(72) of the

Companies Act, 2013 and other

applicable provisions of the

Companies Act, 2013, read with

applicable rules/notifications

(including any statutory

modification(s) or re-enactment

thereof, for the time being in force).

Public Sector Undertaking (PSU)

means a company in which more

than fifty per cent of the paid-up

share capital is held by either the

Central Government, or by any State

Government(s) or partly by the

Central Government and partly by

one or more State Governments and

includes a company which is a

subsidiary of a Government


company as thus defined and/or A

PSU is a company in which the

Central Government or one or more

State Government(s) either singly or

together, exercise control over

management or exercise power to

appoint majority of directors.

Axis

Corporate

Debt Fund


(% of net assets)

Risk

Profile

Minimu

m

Maximu

m

Corporate Debt

rated AA+ and

above

80% 100% Low to

Mediu

m

Other Debt &

Money Market

Instruments

0% 20% Low

Units issued by

REITs & InvITs

0% 10% Mediu

m to

High




investing in corporate debt. There is

no assurance or guarantee that the

objectives of the Scheme will be

realized.

























An open ended

debt scheme

predominantly

investing in AA+

and above

rated corporate

bonds

177.14 4,754
























Axis Liquid

Fund

Instruments

Indicative


assets)

Risk

Profile

Minimu

m

Maximu

m

Low/

Medium

/ High

Money market

instruments

(including cash,

repo, CPs, CDs,

Treasury Bills and

Government

securities) with

maturity/residual

maturity up to 91

50 100 Low






and debt securities. However, there

can be no assurance that the

investment objective of the scheme

will be achieved.








An Open ended

Liquid Scheme

29,154.81 1,17,1

20


days

Debt instruments

(including

floating rate debt

instruments and

securitized debt)

with maturity

/residual

maturity/

weighted

average maturity

up to 91 days

0 50 Low to

medium





















assets.















markets.














Axis Ultra

Short Term

Fund


(% of net assets)

Risk Profile

Minimum Maximu

m

High/

Medium/

Low

Debt and

Money

Market

Instruments*

0% 100% Low to

Medium










months.



















An open ended

ultra-short term

debt scheme

investing in

instruments such

that the

Macaulay

duration of the

portfolio is

between 3

months and 6

months

3,019.03 26,315























mentioned above.













Axis

Overnight

Fund


(% of net assets)

Risk Profile

Minimum Maximu

m

High/

Medium/

Low





An open ended

debt scheme

investing in

instruments with

a maturity of up

469.20 718


Overnight

securities

*@

0% 100% Low





business day.






















mutual funds.

to 1 business

day.

Axis Money

Market

Fund


(% of net assets)

Risk Profile

Minimum Maximu

m

High/

Medium/

Low

Money

Market

Instruments

0% 100% Low











The Scheme

invests in

instruments with

a maturity of

upto 1 year.

392.30 700



The corpus of the Scheme will be invested in Debt Instruments, Money Market Instruments and

other permitted securities which will include but not limited to:

Debt Instruments & Money Market Instruments

Certificate of Deposit

Certificate of Deposit (CD) is a negotiable money market instrument issued by scheduled

commercial banks and select Public Financial Institutions that have been permitted by the RBI

to raise short term resources. The maturity period of CDs issued by the Banks is between 7 days

to one year, whereas, in case of FIs, maturity is one year to 3 years from the date of issue.

Commercial Paper

Commercial Paper (CP) is an unsecured negotiable money market instrument issued in the

form of a promissory note, generally issued by the corporates, primary dealers and Public



Treasury Bill

Treasury Bills (T-Bills) are issued by the Government of India to meet their short term borrowing



India to meet their short term borrowing requirements. CMB are generally issued for maturities

of less than 91 days.


Bill (bills of exchange/promissory notes of public sector and private sector corporate entities)

Rediscounting, usance bills and commercial bills.

Repos

Repo (Repurchase Agreement) or Reverse Repo is a transaction in which two parties agree to

sell and purchase the same security with an agreement to purchase or sell the same security at

a mutually decided future date and price. The transaction results in collateralized borrowing or

lending of funds. Presently in India, corporate debt securities, Government Securities, State

Government Securities and T-Bills are eligible for Repo/ Reverse Repo.

Tri-party repo means a repo contract where a third entity (apart from the borrower and

lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the repo

to facilitate services like collateral selection, payment and settlement, custody and



directions issued by RBI and SEBI from time to time. Such investment shall be made subject to

the guidelines which may be prescribed by the Board of Directors of the Asset Management

Company and Trustee Company.

Securities created and issued by the Central and State Governments as may be permitted by

RBI, securities guaranteed by the Central and State Governments (including but not limited to

coupon bearing bonds, zero coupon bonds and treasury bills). State Government securities

(popularly known as State Development Loans or SDLs) are issued by the respective State

Government in co-ordination with the RBI.


Non convertible debentures as well as bonds are securities issued by companies / institutions

promoted / owned by the Central or State Governments and statutory bodies which may or

may not carry a Central/State Government guarantee, Public and private sector banks, all


India Financial Institutions and Private Sector Companies. These instruments may have fixed or

floating rate coupon. These instruments may be secured or unsecured against the assets of the

Company and generally issued to meet the short term and long term fund requirements.

The Scheme may also invest in the non-convertible part of convertible debt securities.

The Scheme may also invest in Treasury Bills & Government Securities, Repo & TREPS. Investment

may also be made in instruments issued by NBFCs.

Short Term Deposits

Pending deployment of funds as per the investment objective of the Scheme, the funds may

be parked in short term deposits of the Scheduled Commercial Banks, subject to guidelines

and limits specified by SEBI.



other mutual funds in conformity with the investment objective of the Scheme and in terms of

the prevailing SEBI (MF) Regulations.


permitted to invest in could be listed, unlisted, privately placed, secured, unsecured, rated or

unrated and of any maturity.

The securities may be acquired through initial public offering (IPOs), secondary market, private

placement, rights offers, negotiated deals, etc. Further investments in debentures, bonds and

other fixed income securities will be in instruments which have been assigned investment grade

rating by the Credit Rating Agency.




The Fund Manager reserves the right to invest in such securities as may be permitted from time

to time and which are in line with the investment objectives of the Scheme.


The Scheme aims to generate stable returns by investing predominantly in debt & money

market instruments issued by Banks, Public Financial Institutions (PFIs) and Public Sector

Undertakings (PSUs). The Scheme shall endeavor to generate optimum returns with low credit

risk.

Investment in debt & money market instruments issued by Banks, PFIs, PSUs, Treasury Bills &

Government Securities is primarily with the intention of maintaining high credit quality &

liquidity. Atleast 70% of the net assets of the Scheme shall be invested in securities rated

AAA/A1+/Sov and equivalent. Balance may be invested in securities rated below


The investment team of the AMC will carry out rigorous in depth credit evaluation of the Debt

& Money Market Instruments proposed to be invested in. The credit evaluation will essentially

be a bottom up approach and include a study of the operating environment of the issuer, the

past track record as well as the future prospects of the issuer and the short term/ long term

financial health of the issuer.

Financial institutions shall mean public financial institutions as defined under Section 2(72) of

the Companies Act, 2013 and other applicable provisions of the Companies Act, 2013, read


with applicable rules/notifications (including any statutory modification(s) or re-enactment

thereof, for the time being in force).

Public Sector Undertaking (PSU) means a company in which more than fifty per cent of the

paid-up share capital is held by either the Central Government, or by any State Government(s)

or partly by the Central Government and partly by one or more State Governments and

includes a company which is a subsidiary of a Government company as thus defined and/or A

PSU is a company in which the Central Government or one or more State Government(s) either

singly or together, exercise control over management or exercise power to appoint majority of

directors.

Portfolio Turnover

The Scheme being an open-ended Scheme, it is expected that there would be a number of

Subscriptions and Redemptions on a daily basis. Further, in the debt market, trading

opportunities may arise due to changes in system liquidity, interest rate policy announced by

RBI, shifts in the yield curve, credit rating changes or any other factors. In the opinion of the

fund manager these opportunities can be played out to enhance the total return of the

portfolio, which will result in increase in portfolio turnover. There may be an increase in

transaction cost such as brokerage paid, if trading is done frequently. However, the cost would

be negligible as compared to the total expenses of the Scheme. Frequent trading may

increase the profits which will offset the increase in costs. The fund manager will endeavour to

optimize portfolio turnover to maximize gains and minimize risks keeping in mind the cost

associated with it. However, it is difficult to estimate with reasonable measure accuracy, the

likely turnover in the portfolio of the Scheme. The Scheme has no specific target relating to

portfolio turnover


The Indian debt market is today one of the largest in Asia and includes securities issued by the

Government (Central & State Governments), public sector undertakings, other government

bodies, financial institutions, banks and corporates. Government and public sector enterprises

are the predominant borrowers in the markets. The major players in the Indian debt markets

today are banks, financial institutions, mutual funds, insurance companies, primary dealers,

trusts, pension funds and corporates. The Indian debt market is the largest segment of the

Indian financial markets. The debt market comprises broadly two segments, viz. Government

Securities market or G-Sec market and corporate debt market. The latter is further classified as

market for PSU bonds and private sector bonds.

The Government Securities (G-Secs) market, consists of G-Sec outstanding of Rs. 58,19,997.04 cr

as on Sep 03, 2019 (State Govt securities - Rs 24,02,242 cr, Source: CCIL), is the oldest and the

largest component (50% share in market cap) of the Indian debt market in terms of market

capitalization, outstanding securities and trading volumes. The G-Secs market plays a vital role

in the Indian economy as it provides the benchmark for determining the level of interest rates

in the country through the yields on the Government Securities which are referred to as the risk-

free rate of return in any economy. Over the years, there have been new products introduced

by the RBI like zero coupon bonds, floating rate bonds, inflation indexed bonds, etc.


public issuance in capital market, is only an insignificant part of the Indian Debt Market. The

market capitalization of corporate debt market as on March 31,2016 is Rs. 4,35,743.204 Cr

(Source: NSE). A large part of the issuance in the non-Government debt market is currently on

private placement basis.


overnight and term money between banks and institutions), repo transactions (temporary sale

with an agreement to buy back the securities at a future date at a specified price),


corporates), certificate of deposits (CDs, issued by banks) and Treasury Bills (issued by RBI). In a

predominantly institutional market, the key money market players are banks, financial




Instruments that comprise a major portion of money market activity include but not limited to:

• Overnight Call

• Tri Party Repo


• Treasury Bills





include MIBOR linked debentures with periodic exit options and other such instruments. Though

not strictly classified as Money Market Instruments, PSU / DFI / Corporate paper with a residual

maturity of < 1 year, are actively traded and offer a viable investment option.

The market has evolved in past 2-3 years in terms of risk premia attached to different class of

issuers. Bank CDs have clearly emerged as popular asset class with increased acceptability in

secondary market. PSU banks trade the tightest on the back of comfort from majority

government holding. Highly rated manufacturing companies also command premium on

account of limited supply. However, there has been increased activity in papers issued by

private/foreign banks/NBFCs/companies in high-growth sector due to higher yields offered by

them. Even though companies across these sectors might have been rated on a same scale,

the difference in the yield on the papers for similar maturities reflects the perception of their

respective credit profiles.

The following table gives approximate yields prevailing on November 1, 2019 on some of the

instruments and further illustrates this point.

Instrument Current Yield range (%)

Tri-party Repo 4.90%-5.10%

Repo 4.90%-5.10%

3M T-bill 5.04%-5.10%

1Y T-bill 5.25%-5.30%

10Y G-sec 6.40%-6.45%

3m PSU Bank CD 5.10%-5.15%

3m Manufacturing co. CP 5.20%-5.30%

1Y PSU Bank CD 5.55%-5.60%

1Y NBFC CP 6.50%-6.65%

1Y Manufacturing co. CP 6.00%-6.10%



Source: Bloomberg

These yields are indicative and do not indicate yields that may be obtained in future as interest

rates keep changing consequent to changes in macro-economic conditions and RBI policy.

The price and yield on various debt instruments fluctuate from time to time depending upon

the macro economic situation, inflation rate, overall liquidity position, foreign exchange

scenario etc. Also, the price and yield vary according to maturity profile, credit risk etc.

Risk Control


management is critical to fund management for achieving financial soundness. The investment

team of the AMC will carry out rigorous in depth credit evaluation of the money market and

debt instruments (other than G-Secs) proposed to be invested in. The credit evaluation will

essentially be a bottom up approach and include a study of the operating environment of the


issuer, the past track record as well as the future prospects of the issuer and the short term /

long term financial health of the issuer. The AMC would incorporate adequate safeguards for

controlling risks in the portfolio construction process, which would be periodically evaluated.

Investments by the Scheme shall be made as per the investment objectives of the Scheme

and provisions of SEBI regulations. AMC has implemented the Bloomberg Portfolio Order

Management System as Front Office System (FOS). The system has incorporated all the

investment restrictions as per SEBI guidelines and “soft” warning alerts at appropriate levels for

preemptive monitoring. The system enables identifying & measuring the risk through various risk

measurement tools like various risk ratios, average duration and analyzes the same and acts in

a preventive manner.


Following are the Fundamental Attributes of the Scheme, in terms of Regulation 18 (15A) of the

SEBI (MF) Regulations:

(i) Type of a scheme:

An open ended debt scheme predominantly investing in debt instruments of banks, Public

Sector Undertakings & Public Financial Institutions.


a) Main Objective:




b) Investment Pattern:

Please refer to sub - section C ‘How will the Scheme Allocate its Assets?’ under the section II

‘INFORMATION ABOUT THE SCHEME’.


o Liquidity provisions such as listing, repurchase, redemption.



In accordance with Regulation 18(15A) of the SEBI (MF) Regulations, the Trustees shall ensure


thereunder or the trust or fee and expenses payable or any other change which would modify

the Scheme and the Plan(s) / Option(s) thereunder and affect the interests of Unit holders is

carried out unless:

A written communication about the proposed change is sent to each Unit holder and an

advertisement is given in one English daily newspaper having nationwide 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


Asset Value without any Exit Load.


NIFTY Banking & PSU Debt Index

The Scheme intends to invest in a portfolio of instruments (debt and money market instruments

issued by Banks, PSU, PFIs etc.) which is best captured in NIFTY Banking PSU Debt Index. The

constituents and weights of the index as on September 2019 are as under: :


NIFTY All Maturity CD Index 25%

NIFTY Banking & PSU Short Duration Bond

Index

40%

NIFTY Banking & PSU Medium Duration Bond

Index

15%


NIFTY Banking & PSU Medium to Long

Duration Bond Index

20%

Total 100

Hence, NIFTY Banking PSU Debt Index being the most appropriate of the available

benchmarks, is being used as a benchmark for the Scheme.

The Trustee/AMC reserves the right to change the benchmark for the evaluation of the


the Scheme and the appropriateness of the benchmark, subject to SEBI guidelines and other

prevalent guidelines.


Name of

Fund

Manager

Age and

Qualification


Manager in the last 10

years

Names of other

schemes under his

management

Tenure as

Fund

Manager of

the Scheme

Mr. Aditya

Pagaria

34 years,

Bachelor in

Management

Studies, Post

Graduate

Diploma in

Business

Management

Axis Asset

Management

Company Ltd. (Fund

Manager - Fixed

Income) - (August 1,

2016 till date)

ICICI Prudential Asset

Management

Company Ltd. (Fund

Manager -Fixed

Income) - (Nov. 30,

2011 - July 26, 2016)

(Operations)- (May 03,

2007 - Nov. 29, 2011)

Axis Treasury

Advantage Fund

(along with Mr.

Devang Shah), Axis

Liquid Fund (along

with Mr. Devang

Shah), Axis Equity

Advantage Fund -

Series 1 and Series 2

(along with Mr.

Shreyash Devalkar),

Axis Banking & PSU

Debt Fund, Axis

Ultra Short Term

Fund, Axis

Overnight Fund

and Axis Money

Market Fund (along

with Mr. Devang

Shah).

3 years




1. The Scheme shall not invest more than 10% of its NAV in debt instruments comprising money

market instruments and non-money market instruments issued by a single issuer, which are

rated not below investment grade by a credit rating agency authorized to carry out such

activity under the SEBI Act, 1992. Such investment limit may be extended to 12% of the NAV

of the Scheme with the prior approval of the Board of Trustee and the Board of Directors of

AMC.

Provided that such limit shall not be applicable for investment in Government Securities,

treasury bills and collateralized borrowing and lending obligations.

Provided further that investments within such limit can be made in the mortgaged backed

securitised debt, which are rated not below investment grade by a credit rating agency,

registered with SEBI.



except Government Securities, money market instruments and derivative products such as

Interest Rate Swaps, Interest Rate Futures, etc. which are used by mutual fund for hedging.


maximum of 10% of the debt portfolio of the Scheme subject to such conditions as may be

specified by the Board from time to time:

Provided further that the Scheme shall comply with the norms under this clause within the

time and in the manner as may be specified by the Board:

Provided further that the norms for investments by the Scheme in unrated debt instruments

shall be specified by the Board from time to time.


debt portfolio of the scheme and the group exposure in such instruments shall not exceed

5% of the debt portfolio of the scheme:

a. Unsupported rating of debt instruments (i.e. without factoring-in credit enhancements)

is below investment grade and







directly or indirectly, shall have a minimum cover of 4 times considering the market value of

such shares.



without charging any fees, provided the aggregate inter-scheme investment made by all

the schemes under the same management or in schemes under the management of any

other asset management company shall not exceed 5% of the Net Asset Value of the Fund.


any unlisted security of an associate or group company of the sponsor; or

any security issued by way of private placement by an associate or group company of

the sponsor; or

the listed securities of group companies of the sponsor which is in excess of 25% of the

net assets.

7. The Mutual Fund shall get the securities purchased transferred in the name of the Fund on

account of the concerned Scheme, wherever investments are intended to be of a long-

term nature.


permitted provided:

a) such transfers are done at the prevailing market price for quoted instruments on spot

basis (spot basis shall have the same meaning as specified by a Stock Exchange for

spot transactions); and

b) the securities so transferred shall be in conformity with the investment objective of the

Scheme to which such transfer has been made.

9. The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases

of purchases, take delivery of relevant securities and in all cases of sale, deliver the

securities:


Provided that the Mutual Fund may engage in Short Selling of securities in accordance with

the framework relating to Short Selling and securities lending and borrowing specified by

SEBI.



Provided further that sale of government security already contracted for purchase shall be

permitted in accordance with the guidelines issued by the RBI in this regard.





The Scheme will comply with the following guidelines/restrictions for parking of funds in short

term deposits:

i. “Short Term” for such parking of funds by the Scheme shall be treated as a period not

exceeding 91 days. Such short-term deposits shall be held in the name of the Scheme.

ii. The Scheme shall not park more than 15% of the net assets in short term deposit(s) of all

the scheduled commercial banks put together. However, such limit may be raised to

20% with prior approval of the Trustee.

iii. Parking of funds in short term deposits of associate and sponsor scheduled commercial

banks together shall not exceed 20% of total deployment by the Mutual Fund in short

term deposits.

iv. The Scheme shall not park more than 10% of the net assets in short term deposit(s), with

any one scheduled commercial bank including its subsidiaries.

v. The Scheme shall not park funds in short term deposit (STD) of a bank which has

invested in that Scheme. Further, Trustees/ AMCs shall also ensure that the bank in

which the Scheme has STD do not invest in the said scheme until the Scheme has STD

with such bank.

However, the above provisions will not apply to term deposits placed as margins for trading

in cash and derivatives market.


13. The Scheme shall not borrow except to meet temporary liquidity needs of the Scheme for

the purpose of Repurchase/Redemption of Units or payment of interest and/or Dividend to

the Unit holders.


individual Scheme and the duration of the borrowing shall not exceed a period of 6 months.

14. The total exposure of the Scheme in a particular sector (excluding investments in Bank CDs,

CBLO, Government Securities, T-Bills, short term deposits of scheduled commercial banks

and AAA rated securities issued by Public Financial Institutions and Public Sector Banks)

shall not exceed 20% of the net assets of the Scheme.

Provided that an additional exposure to financial services sector (over and above the limit

of 20%) not exceeding 10% of the net assets of the Scheme shall be allowed by way of

increase in exposure to Housing Finance Companies (HFCs) only;



Investment/exposure in HFCs shall not exceed 20% of the net assets of the Scheme.

Further, an additional exposure of 5% of the net assets of the Scheme shall be allowed for



15. The total exposure in a particular group (excluding investments in securities issued by Public

Sector Units, Public Financial Institutions and Public Sector Banks) shall not exceed 20% of


the net assets of the Scheme. Such investment limit may be extended to 25% of the net

assets of the Scheme with the prior approval of the Board of Trustees.

For this purpose, a group means a group as defined under regulation 2 (mm) of SEBI (MF)

Regulations and shall include an entity, its subsidiaries, fellow subsidiaries, its holding


Further, limit for investment in debt and money market instruments of group companies of

both the sponsor and AMC shall not exceed 10% of the net assets of the Scheme. Such

investment limit can be extended to 15% with the prior approval of the Board of Trustees.



Directors of Trustee Company and the Asset Management Company, from time to time. At

present the following conditions and norms shall apply to repo in corporate debt securities:

(i) The gross exposure of the Scheme to repo transactions in corporate debt securities shall

not be more than 10% of the net assets of the Scheme.

(ii) The cumulative gross exposure through repo transactions in corporate debt securities

along with equity, debt and derivatives shall not exceed 100% of the net assets of the

Scheme.



(iv) The Scheme shall borrow through repo transactions only if the tenor of the transaction

does not exceed a period of six months.










transactions and the same shall be used for selection of counterparties for corporate

bond repos. All repo transactions in corporate bonds will be governed by a repo

agreement as specified by FIMMDA and / or other specified authorities.


The exposure limit/investment restrictions prescribed under the Seventh Schedule of the


to repo transactions in corporate bonds. The Scheme shall further follow guidelines










failing to honor the repurchase leg of the repo. In such a circumstance, the Fund would

suffer a loss if the value of the collateral depreciates by more than the haircut. The fall

in the value of the collateral could be on account of higher yields and/ or deterioration

of credit quality.


relatively high degree of safety in relation to the interest rate risk on the collateral. The

risk of collateral depreciation based on historical volatility is given in the table below:




Repo Tenor Number of standard deviations needed to

lose 10%

1 day 258 136 94 48

7 days 98 52 36 18

In the above table, the price volatility of a 10-year bond is about 3.4% annualized. That

is a 10% price move represents nearly a 3-sigma event on an annualized basis. For

overnight tenors, this represents a 48-sigma event (for comparison a 6-sigma event

occurs about once in a million observations).


interest rate risk. Credit event risk remains (the collateral could default during the tenor

of the repo). This risk is to be mitigated by ensuring that the collateral is acceptable

from a credit point of view.

The exposure limit/ investment restrictions prescribed under the Seventh Schedule of the


to repo transactions in corporate bonds.




The AMC/Trustee may alter these above stated restrictions from time to time to the extent the

Regulations change, so as to permit the Scheme to make its investments in the full spectrum of

permitted investments for mutual funds to achieve its respective investment objective.





money market instrument affected by a credit event, that has been segregated in a mutual

fund scheme. The term ‘main portfolio’ shall mean the scheme portfolio excluding the

segregated portfolio. The term ‘total portfolio’ shall mean the scheme portfolio including the

securities affected by the credit event.

Credit Event








considered. Creation of segregated portfolio shall be based on issuer level credit events as

mentioned above and implemented at the ISIN level.







Credit event in this case shall be ‘actual default’ by the issuer of such instruments and

shall be considered for creation of segregated portfolio.






money market instrument and its impact on the investors. Axis Mutual Fund shall disclose

that the segregation shall be subject to Trustee approval. Additionally, the said press

release shall be prominently disclosed on the website of the AMC.

c. ensure that till the time the Trustee approval is received, which in no case shall exceed

1 business day from the day of credit event, the subscription and redemption in the

Scheme shall be suspended for processing with respect to creation of units and

payment on redemptions.



b. AMC shall issue a press release immediately with all relevant information pertaining to

the segregated portfolio. The said information will also be submitted to SEBI.


d. The NAV of both segregated and main portfolios shall be disclosed from the day of the

credit event.



f. No redemption and subscription shall be allowed in the segregated portfolio. AMC shall

enable listing of units of segregated portfolio on the recognized stock exchange within

10 working days of creation of segregated portfolio and also enable transfer of such

units on receipt of transfer requests



Valuation


valuation shall take into account the credit event and the portfolio shall be valued based on

the principles of fair valuation (i.e. realizable value of the assets) in terms of the relevant






Investors redeeming their units will get redemption proceeds based on the NAV of main

portfolio and will continue to hold the units of segregated portfolio.


based on its NAV.



Disclosure

In order to enable the existing as well as the prospective investors to take informed decision,

the following shall be adhered to:


a. A statement of holding indicating the units held by the investors in the segregated portfolio

along with the NAV of both segregated portfolio and main portfolio as on the day of the

credit event shall be communicated to the investors within 5 working days of creation of

the segregated portfolio.


documents, in monthly and half-yearly portfolio disclosures and in the annual report of the

mutual fund and the Scheme.



appear prominently under the name of the Scheme at all relevant places such as SID, KIM-

cum-Application Form, advertisement, AMC and AMFI websites, etc.


impact of creation of segregated portfolio. The Scheme performance should clearly reflect

the fall in NAV to the extent of the portfolio segregated due to the credit event and the

said fall in NAV along with recovery(ies), if any, shall be disclosed as a footnote to the

Scheme performance.

f. The disclosures at paragraph (d) and (e) above regarding the segregated portfolio shall be

carried out for a period of at least 3 years after the investments in segregated portfolio are

fully recovered/ written-off.



provided to the investors at the time of recovery and also at the time of writing-off of the

segregated securities.



However, TER (excluding the investment and advisory fees) can be charged, on a pro-rata

basis only upon recovery of the investments in segregated portfolio.




3) The legal charges related to recovery of the investments of the segregated portfolio may

be charged to the segregated portfolio in proportion to the amount of recovery. However,

the same shall be within the maximum TER limit as applicable to the main portfolio. The

legal charges in excess of the TER limits, if any, shall be borne by the AMC.

4) The costs related to segregated portfolio shall in no case be charged to the main portfolio.



ensure that:


b. Upon recovery of money, whether partial or full, it shall be immediately distributed to the

investors in proportion to their holding in the segregated portfolio. Any recovery of amount

of the security in the segregated portfolio even after the write off shall be distributed to the

investors of the segregated portfolio.



created.

In order to avoid mis-use of segregated portfolio, Trustees shall ensure to have a mechanism in

place to negatively impact the performance incentives of Fund Managers, Chief Investment

Officers (CIOs), etc. involved in the investment process of securities under the segregated

portfolio, mirroring the existing mechanism for performance incentives of the AMC, including

claw back of such amount to the segregated portfolio of the Scheme.


The below table shows how a rated security affected by a credit event will be segregated and

its impact on investors:



Downgrade

Event Date

July 22, 2019


1,131.9939)



security

Quantity Market

Price Per

Unit (Rs.)

Market Value

(Rs.)

% of

Net

Assets



9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 10.43%



Cash & cash

equivalents

50,321.20 4.45%

Net Assets 11,31,993.87 100.00%

Unit capital (no

of units)

1000.000

NAV (In Rs.) 1131.9939

Security

downgraded


Valuation

Marked down by




Security Rating

Type of the

security

Quantity

Market

Price Per

Unit (Rs.)

Market Value

(Rs.)

% of

Net

Assets



9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 11.99%

7.70% D Ltd. CRISIL D NCD 2,000 25.0000 50,000.00 5.08%


Cash & cash


Net Assets 9,83,993.87 100.00%

Unit capital (no

of units) 1000.000

NAV (In Rs.) 983.9939



security

Quantity Market

Price Per

Unit (Rs.)

Market Value

(Rs.)

% of

Net

Assets



9.80% C Ltd. ICRA A1+ CP 1,200 98.3421 1,18,010.52 12.64%


Cash & cash

equivalents

50,321.20 5.39%

Net Assets 9,33,993.87 100.00%

Unit capital (no 1000.000


of units)

NAV (In Rs.) 933.9939


Security Rating

Type of the

security

Quantity

Market

Price Per

Unit (Rs.)

Market Value

(Rs.)

% of

Net

Assets

7.70% D Ltd. CRISIL D NCD 2,000 25.0000 50,000.00 100.00%

Net Assets 50,000.00 100.00%

Unit capital (no

of units) 1000.000

NAV (In Rs.) 50.0000


portfolio

Main Portfolio

Segregated

Portfolio

Total

Value

No. of Units 1,000 1,000

NAV (in Rs.) 933.9939 50.0000

Total Value (in

Rs.) 9,33,993.87 50,000.00 9,83,993.87


Performance of Axis Banking & PSU Debt Fund – Regular Plan - Growth Option as at October

31, 2019 is as follows:

Period Axis Banking & PSU Debt

Fund – Regular Plan -

Growth Option^

NIFTY Banking &

PSU Debt Index

1 year returns 12.64% 10.93%



Returns Since Inception (June 8, 2012) 8.73% 8.46%

Absolute returns for last 5 financial years

Performance of Axis Banking & PSU Debt Fund - Direct Plan - Growth option as at October 31,

2019 is as follows:

Period Axis Banking & PSU

Debt Fund - Direct Plan

- Growth option^

NIFTY Banking & PSU

Debt Index

1 year returns 12.95% 10.93%



Returns Since Inception

(January 1, 2013) 8.89% 8.27%


Absolute returns for last 5 financial years

^Past performance may or may not be sustained in future. Returns greater than 1 year are

compounded annualized (CAGR). Since inception returns are calculated on Rs. 1000 invested

at inception. Calculations are based on Growth Option NAVs. Different plans have different

expense structure.







(i) Top 10 holdings by Issuer:



Small Industries Dev Bank of India 10.48%

REC Limited 7.68%


Food Corporation Of India 7.06%

National Highways Auth Of Ind 6.93%

Export Import Bank of India 6.52%

NTPC Limited 6.09%

LIC Housing Finance Limited 5.89%





ENERGY 18.03%

CONSTRUCTION 7.97%


OTHERS^ 2.22%

Cash & Cash Equivalent 1.91%


CEMENT & CEMENT PRODUCTS 0.06%

Total 100.0% ^ TREPS, REPO & Mutual Fund units.




Portfolio turnover ratio : Not applicable


Sr.

No.

Category of Persons Net Asset Value of Units held as

on October 31, 2019 (in Rs.)




Note:









New Fund Offer

Period

This is the period

during which a new

Scheme sells its unit

to the Investors.

The New Fund Offer opened on May 30, 2012 and closed on June 7, 2012.

The units under the Scheme were allotted on June 8, 2012.

New Fund Offer

Price:

This is the price per

unit that the

Investors have to

pay to invest during

the NFO.

Not Applicable

Minimum Amount

for Application/

Switch in during the

NFO

Not Applicable

Minimum Target

amount

Not Applicable

Maximum Amount

to be raised (if any)

This is the maximum

amount which can

be collected during

the NFO period, as

decided by the

AMC.

Not Applicable

Plans / Options

offered

The Scheme offers the following plans:

Axis Banking & PSU Debt Fund – Regular Plan

Axis Banking & PSU Debt Fund - Direct Plan

Each Plan offers following Options:

• Growth option

• Dividend option

Options Sub-options Record date*

Growth Nil NA

Dividend Daily (Re-investment) Daily

Weekly (Payout and Re-

investment)

every Monday

Monthly (Payout and Re-

investment)

25th of every

month

*Next Business day if such day happens to be a non-business day.

The Trustee/AMC reserves the right to change the record date from time to

time.

If Dividend payable under Dividend Payout option (Weekly Option) is equal

to or less than Rs. 25,000/- then the Dividend would be compulsorily

reinvested in the option of the Scheme.

Where Dividend payable under Dividend Payout option (Monthly Option) is

equal to or less than Rs. 500/- then the Dividend would be compulsorily


reinvested in the option of the Scheme.

The Investors should indicate option for which Subscription is made by

indicating the choice in the appropriate box provided for this purpose in the

application form. In case of valid application received without any choice

of option/facility, the following default option/facility will be considered;

Default Plan

Treatment of applications under Direct/ Regular Plans

Investors subscribing under Direct Plan of a Scheme will have to indicate

“Direct Plan” against the Scheme name in the application form e.g. “Axis

Banking & PSU Debt Fund – Direct Plan”. Investors should also indicate

“Direct” in the ARN column of the application form.

The investors may refer to the following table for applicability of Direct Plan/

Regular Plan under different scenario:-

Scen

ario

Broker Code mentioned

by the investor

Plan mentioned

by the investor

Default Plan to

be captured










application form, the application shall be processed under Regular Plan. The

AMC shall contact and obtain the correct ARN code within 30 calendar

days of the receipt of the application form from the investor/ distributor. In

case, the correct code is not received within 30 calendar days, the AMC

shall reprocess the transaction under Direct Plan from the date of

application without any exit load.

Default Option/Facility

The investor must clearly specify his choice of option/facility. In the absence

of such clear instruction, it will be assumed that the investor has opted for

‘default’ option / facility and the application will be processed accordingly.

The default plan/ option / facility are:

Default Option - Growth

Default dividend frequency - Daily Option

Default between Payout & Reinvestment Option - Reinvestment

Existing Investments:

Investors wishing to transfer their accumulated unit balance held under

Regular Plan (through lumpsum / systematic investments made with or

without Distributor code) to Direct Plan will have to switch /redeem their

investments (subject to applicable Exit Load, if any) and apply under Direct

Plan.

Investors who have invested without Distributor code and have opted for

Dividend Reinvestment facility under Regular Plan may note that the

dividend will continue to be reinvested in the Regular Plan only.

Default Plan – Redemption application


Where Units under a Scheme are held under both Plans and the redemption

/ Switch request pertains to the Direct Plan, the same must clearly be

mentioned on the request (along with the folio number), failing which the

request would be processed from Axis Banking & PSU Debt Fund – Regular

Plan. However, where Units under the requested Option are held only under

one Plan, the request would be processed under such Plan.

Growth option

Dividends will not be declared under this option. The income attributable to

Units under this option will continue to remain invested in the Scheme and

will be reflected in the NAV of Units under this option.

Dividend option

Under this option, Dividends will be declared (subject to deduction of tax at

source, if any) at specified frequencies at the discretion of the Trustee,

subject to availability of distributable surplus calculated in accordance with

SEBI (MF) Regulations. On payment of Dividend, the NAV of the Unit under

Dividend option will fall to the extent of the Dividend payout and applicable

statutory levies, if any.

It must be distinctly understood that the actual declaration of Dividend and

frequency thereof is at the sole discretion of the Trustee. There is no


distribution nor that will the Dividend be paid regularly. The Trustee reserves

the right to declare a Dividend at any other frequency in addition to the

frequencies mentioned above.



deduction of Dividend distribution tax and statutory levy, if any) to those Unit

holder, whose names appear in the register of Unit holders on the notified

record date.


Under this facility, the Dividend due and payable to the Unit holders will be

compulsorily and without any further act by the Unit holder, reinvested in the

respective Dividend option at a price based on the prevailing ex-Dividend

Net Asset Value per Unit. The amount of Dividend re-invested will be net of

tax deducted at source, wherever applicable. The Dividends so reinvested

shall constitute a constructive payment of Dividends to the Unit holders and

a constructive receipt of the same amount from each Unit holder for

reinvestment in Units.

On reinvestment of Dividends, the number of Units to the credit of Unit holder

will increase to the extent of the Dividend reinvested. There shall, however,

be no Load on the Dividend so reinvested.

Dividend Policy Under the Dividend option, the Trustee will endeavour to declare the

Dividend as per the specified frequencies, subject to availability of

distributable surplus calculated in accordance with SEBI Regulations. The

actual declaration of Dividend and frequency will inter-alia, depend on

availability of distributable surplus calculated in accordance with SEBI (MF)

Regulations and the decisions of the Trustee shall be final in this regard. There

is no assurance or guarantee to the Unit holder as to the rate of Dividend nor

that the Dividend will be paid regularly.

The AMC/Trustee reserves the right to change the frequency of declaration

of Dividend or may provide for additional frequency for declaration of


Dividend.


In accordance with SEBI circular no. SEBI/IMD/Cir No. 1/64057/06 dated April

4, 2006, the procedure for Dividend distribution would be as under:

1. Quantum of Dividend and the record date will be fixed by the Trustee.

Dividend so decided shall be paid, subject to availability of distributable

surplus.

2. Within one calendar day of decision by the Trustee, the AMC shall issue

notice to the public communicating the decision about the Dividend

including the record date, in one English daily newspaper having

nationwide circulation as well as in a newspaper published in the

language of the region where the head office of the Mutual Fund is

situated.

3. Record date shall be the date, which will be considered for the purpose

of determining the eligibility of Investors whose names appear on the

register of Unit holder for receiving Dividends. The Record Date will be 5

calendar days from the date of issue of notice.

4. The notice will, in font size 10, bold, categorically state that pursuant to

payment of Dividend, the NAV of the Scheme would fall to the extent of

payout and statutory levy (if applicable).

5. The NAV will be adjusted to the extent of Dividend distribution and



probable date of Dividend declaration in any manner whatsoever will

be issued by Mutual Fund.





Who can invest

This is an indicative

list and you are

requested to

consult your

financial advisor to

ascertain whether

the Scheme is


profile.


mutual funds, being permitted under respective constitutions, and relevant

statutory regulations) are eligible and may apply for Subscription to the Unit

of the Scheme:

1. Resident adult individuals either singly or jointly (not exceeding three) or

on an Anyone or Survivor basis;


3. Minor (as the first and the sole holder only) through a natural guardian

(i.e. father or mother, as the case may be) or a court appointed legal

guardian. There shall not be any joint holding with minor investments;


5. Limited Liability Partnerships;



Association of Persons (AOP) or Bodies of Individuals (BOI) and societies

registered under the Societies Registration Act, 1860 (so long as the

purchase of Unit is permitted under the respective constitutions);



9. Religious and Charitable Trusts, Wakfs or endowments of private trusts

(subject to receipt of necessary approvals as "Public Securities" as

required) and Private trusts authorised to invest in mutual fund schemes

under their trust deeds;

10. Non-Resident Indians (NRIs) / Persons of Indian origin (PIOs) / Overseas

Citizen of India (OCI) residing abroad on repatriation basis or on non-

repatriation basis;


11. Foreign Portfolio Investor (FPI) registered with SEBI on repatriation basis.

These investments shall be subject to the conditions prescribed by SEBI,

RBI, Income Tax authorities and the AMC, from time to time;

12. Army, Air Force, Navy and other para-military units and bodies created

by such institutions;


14. Multilateral Funding Agencies / Bodies Corporate incorporated outside

India with the permission of Government of India / RBI


16. Other schemes of Axis Mutual Fund or any other mutual fund subject to

the conditions and limits prescribed by SEBI (MF) Regulations;


18. Trustee, AMC or Sponsor or their associates may subscribe to Units under

the Scheme;

19. Such other category of person(s) permitted to make investments and as

may be specified by the AMC / Trustee from time to time.


subscription of units may be accepted or rejected in the sole and absolute

discretion of the AMC/ Trustee company. The AMC/ Trustee company may

also reject any application for subscription of units if the application is

invalid, incomplete, or if the AMC/ Trustee company for any other reason

does not believe that it would be in the interest of the scheme or its

unitholders to accept such an application.



enable Axis AMC for speed and ease of communication in a convenient

and cost-effective manner, and to help prevent fraudulent transactions.


SEBI vide its circular no. CIR/MIRSD/2/2013 dated January 24, 2013 further

read with AMFI best practices guidelines circular no. 62/2015-16 dated

September 18, 2015 and other applicable regulations has prescribed

guidelines, for identification of Beneficial Ownership to be followed by the

intermediaries. A ‘Beneficial owner’ is defined as a natural person or persons

who ultimately own, control or influence a client and/or persons on whose

behalf a transaction is being conducted, and includes a person who

exercises ultimate effective control over a legal person or arrangement. In

this regard, all categories of investors (including all new / existing investors /

unitholders) (except individuals, companies listed on a stock exchange or

majority-owned subsidiary of such companies) are mandatorily required to

provide beneficial ownership details for all investments. Failing which, fund

reserves the right to reject applications / subscription requests / additional

subscription requests (including switches) / restrict further investments or seek

additional information from investors who have not provided the requisite

information on beneficial ownership. In the event of change in beneficial

ownership, investors are requested to immediately update the details with

the Fund/Registrar.

Foreign Account Tax Compliance Act and Common Reporting Standards

requirements:

As a part of various ongoing tax and regulatory developments around the

globe [e.g. information exchange laws such as Foreign Account Tax



financial institutions like Axis Mutual Fund (‘Axis MF’ or ‘the Fund’) are being

cast with additional investor and counterparty account related due

diligence requirements.

The Central Board of Direct Taxes (CBDT) has notified Rules 114F to 114H, as

part of the Income-tax Rules, 1962, which Rules require Indian financial

institutions such as the Banks, Mutual Funds, etc. to seek additional personal,

tax and beneficial owner information and certain certifications and

documentation from all our investors and counterparties. According to the

FATCA-CRS Rules, financial institutions in India are required to report tax

information about account holders that are tax resident of U.S. and other

foreign countries, to the CBDT/ Indian Government which will, in turn, relay

that information to the US Internal Revenue Service (IRS) and governments of

other foreign countries.

These developments have resulted in compliance and reporting obligations

on Financial Institutions like Axis MF. In relevant cases, information will have to

be reported to tax authorities/appointed agencies. Towards compliance,

the Fund may also be required to provide information to any institutions such

as withholding agents for the purpose of ensuring appropriate withholding

from the account or any proceeds in relation thereto. As may be required

by domestic or overseas regulators/ tax authorities, we may also be

constrained to withhold and pay out any sums from your account or close or

suspend your account(s). Axis MF may also have to comply with other similar

laws as and when applicable.

Prospective investors and Unit holders will therefore be required to comply

with the request of the Fund to furnish such information / documentation /

declarations as and when deemed necessary by the Investment Manager in

accordance with Applicable Laws. In case prospective investor / Unit holder

fails to furnish the relevant information / documentation / declarations in

accordance with Applicable Laws, the Fund reserves the right to reject the

application or redeem the Units held directly or beneficially and may also

require reporting of such accounts and/or levy of withholding tax on

payments made to the Unit holders / investor and/or take any other action/s

in accordance with Applicable Laws. FATCA-CRS provisions are relevant not

only at on-boarding stage of Unit holders but also throughout the life cycle

of investment with the Fund. Unit holders therefore should intimate to the

Fund/the Investment Manager, any change in their status with respect to

any FATCA-CRS related information / documentation / declarations

provided by them previously, including but not limited to any declarations

provided in respect of residency of the Unit holders for tax purposes

promptly, i.e. within 30 days. Further, if the Fund and/or the Investment

Manager is required by Applicable Laws, to provide information regarding

the Fund and/or the unit holders / investors to any regulatory authority

and/or the Fund Investments and/or income therefrom, and the Fund

and/or the Investment Manager complies with such request in good faith,

whether or not it was in fact enforceable, they shall not be liable to the Unit

holders / investors or to any other party as a result of such compliance or in

connection with such compliance.


understand the implications of FATCA-CRS provisions/requirements. Please

note that Axis MF will be unable to provide advice to any investor or

counterparty about their tax status or FATCA/CRS classification relevant to

their account. It is the responsibility of the investor or counterparty to ensure


that they record their correct tax status / FATCA/ CRS classification. Investor/

counterparty may seek advice from their tax advisor in this regard. The onus

to provide accurate, adequate and timely inputs in this regard would be

that of the investor or counterparty. Any changes in earlier information



declarations to facilitate compliance, considering India’s commitment to

implement CRS and FATCA under the relevant international treaties.




supporting documents to be used by SEBI registered intermediaries and (ii)

Centralized KYC registration through KYC Registration Agencies (KRAs)

registered with SEBI, w.e.f. January 1, 2012, to bring about uniform KYC

process in the securities market, based on SEBI prescribed norms and the

KYC details are shared with all SEBI registered intermediaries by the KRAs.

Subsequently, SEBI, vide its circular no. MIRSD/Cir-5/2012 dated April 13, 2012

advised various intermediaries to upload KYC data of its existing customers

into the KRA system. While uploading KYC data into the KRA system,

intermediaries were also required to highlight such ‘Missing/Not Available’

KYC information of a customer, which was either not required or not taken

previously, but was mandatory as per uniform KYC guidelines issued by SEBI.

In accordance with AMFI best practices guidelines circular no. 62/2015-16

dated September 18, 2015, it is mandatory for all new/existing investors to

provide additional KYC information such as Income details, Occupation,

association with politically exposed person, net worth etc. as mentioned in

the application form. Subscription requests, without providing these details,

are liable to be rejected. No subscriptions (whether fresh or additional) and

switches pertaining to ‘KYC on-hold’ cases are accepted, unless the investor

/ unitholder also submits relevant KYC missing / updated information, which

is appropriately updated on the KRA - KYC.


Verification process and provide the missing KYC information failing which

their applications / transaction requests for additional subscription (including

switches) is liable to be rejected.

Central KYC Process


interest of India (‘CERSAI’) has been authorised by Government of India to

act as Central KYC Records Registry under Prevention of Money-Laundering

(Maintenance of Records) Rules, 2005 (‘PMLA Rules’).

SEBI vide its circular no. CIR/MIRSD/66/2016 dated July 21, 2016 and circular

no. CIR/MIRSD/120/2016 dated November 10, 2016 has prescribed that the

Mutual Fund/ AMC should capture KYC information for sharing with CKYCR

as per the KYC template prescribed by CERSAI.


guidelines for implementation of CKYC:


regime i.e. a new investor who is new to KRA system and whose KYC is


not registered or verified in the KRA system shall be required to provide

KYC details in the CKYC Form to the Mutual Fund/ AMC.

b) Individual investor who fills old KRA KYC Form, should provide additional /

missing information using Supplementary KYC Form or fill CKYC Form. The

said form is available on Axis Mutual Fund website www.axismf.com.

c) Details of investors shall be uploaded on the system of CKYCR and a 14

digit unique KYC Identification Number (‘KIN’) will be generated for such

customer.

d) New investors, who have completed CKYC process & have obtained KIN

may quote their KIN in the application form instead of submitting CKYC

Form/ Supplementary KYC Form.

e) AMC/ Mutual Fund shall use the KIN of the investor to download the KYC

information from CKYCR system and update its records.


should submit self-certified copy of PAN card to the Mutual Fund/ AMC.


investor(s) fails to submit information and/or documentation as mentioned

above. In the event of non-compliance of KYC requirements, the Trustee /

AMC reserves the right to freeze the folio of the investor(s).



(Maintenance of Records) Rules, 2005 as amended from time to time, proof

of possession of Aadhar can be accepted as a valid document for proof of

address or proof of identity of investors, provided the investor redact or

blackout his Aadhar number while submitting the applications for

investments.



time.


Who cannot invest 1. Any individual who is a foreign national or any other entity that is not an

Indian resident under the Foreign Exchange Management Act, 1999

(FEMA Act) except where registered with SEBI as FPI or otherwise

explicitly permitted under FEMA Act/ by RBI/ by any other applicable

authority.

2. Pursuant to RBI A.P. (DIR Series) circular no. 14 dated September 16, 2003,

Overseas Corporate Bodies (OCBs) cannot invest in Mutual Funds.


determined by the Financial Action Task Force (FATF), from time to time.

4. U.S. Persons and Residents of Canada as defined under the applicable

laws of U.S. and Canada except the following:

a. subscriptions received by way of lump sum / switches /systematic

transactions received from Non-resident Indians (NRIs) / Persons of

Indian origin (PIO) / Overseas Citizen of India (OCI) who at the time

of such investment, are present in India and

b. FPIs

These investors need to submit a physical transaction request along with

such documents as may be prescribed by the AMC/ the Trustee/ the Fund

from time to time.

The AMC reserves the right to put the transaction requests on hold/reject the


transaction request/reverse allotted units, as the case may be, as and when

identified by the AMC, which are not in compliance with the terms and

conditions notified in this regard.

The Trustee / the AMC /the Fund reserve the right to change/ modify the

above provisions at a later date

Such other persons as may be specified by AMC from time to time.

Where can you

submit the filled up

applications.

Not Applicable


Listing The Scheme is an open ended Scheme under which sale and repurchase

will be made on a continuous basis and therefore listing on stock exchanges

is not envisaged. However, the Trustee reserves the right to list the units as

and when considered necessary in the interest of Unit holders of the Fund.

Special Products /


during the NFO

Not Applicable

The policy

regarding reissue of

Repurchased units,

including the

maximum extent,

the manner of

reissue, the entity

(the Scheme or the

AMC) involved in

the same.


Restrictions, if any,

on the right to freely


units being offered.

Pledge of Units

The Units under the Scheme (subject to completion of lock in period, if any)

may be offered as security by way of a pledge / charge in favour of

scheduled banks, financial institutions, non-banking finance companies

(NBFCs), or any other person. The AMC and / or the ISC will note and record

such Pledged Units. The AMC shall mark a lien only upon receiving the duly

completed form and documents as it may require. Disbursement of such

loans will be at the entire discretion of the bank / financial institution / NBFC

or any other person concerned and the Mutual Fund assumes no

responsibility thereof.

The Pledger will not be able to redeem Units that are pledged until the entity

to which the Units are pledged provides written authorisation to the Mutual

Fund that the pledge / lien charge may be removed. As long as Units are

pledged, the Pledgee will have complete authority to redeem such Units.

Dividends declared on Units under lien will be paid / re-invested to the credit

of the Unit Holder and not the lien holder unless specified otherwise in the

lien letter.

Lien on Units

On an ongoing basis, when existing and new Investors make Subscriptions, a

lien on unit allotted will be created and such unit shall not be available for

redemption until the payment proceeds are realised by the Scheme. In case

a unit holder redeems unit soon after making purchases, the redemption

cheque will not be dispatched until sufficient time has elapsed to provide

reasonable assurance that cheques or drafts for unit purchased have been

cleared.


In case the cheque / draft is dishonoured by the bank, the transaction shall

be reversed and the unit allotted earlier shall be cancelled, and a fresh

Account Statement / Confirmation slip shall be dispatched to the Unit

holder. For NRIs, the Scheme may mark a lien on unit in case documents

which need to be submitted are not given in addition to the application

form and before the submission of the redemption request. However, the

AMC reserves the right to change operational guidelines for lien on unit from

time to time.


Subject to the approval of the Boards of the AMC and of the Trustee and

subject also to necessary communication of the same to SEBI, the




prevailing regulations, restriction on/suspension of redemptions / switch-out

of Units of the Scheme, may be imposed when there are circumstances

leading to systemic crisis or event that severely constricts market liquidity or

the efficient functioning of markets such as:

a) Liquidity issues: when market at large becomes illiquid affecting almost

all securities rather than any issuer specific security;


unexpected events which impact the functioning of exchanges or the

regular course of transactions. Such unexpected events could also be

related to political, economic, military, monetary or other emergencies;




Restriction on / suspension of redemption of Units of the Scheme may be

imposed for a specified period of time not exceeding 10 working days in any

90 days period.



i. No redemption / switch-out requests upto Rs. 2 lakhs shall be subject to

such restriction.




restriction.



approval of SEBI.



Also refer to the paragraph ‘Suspension of Purchase and Redemption of


Third Party Payment

Avoidance and

additional

documents /

declaration

required



Cash Investments in

mutual funds

In order to help enhance the reach of mutual fund products amongst small

investors, who may not be tax payers and may not have PAN/bank

accounts, such as farmers, small traders /businessmen /workers, SEBI has

permitted receipt of cash transactions for fresh purchases/ additional

purchases to the extent of Rs. 50,000/- per investor, per mutual fund, per

financial year subject to:


framed there under; the SEBI Circular(s) on Anti Money Laundering (AML)

and other applicable Anti Money Laundering Rules, Regulations and

Guidelines; and



aforementioned investments shall be paid only through banking channel.

The Fund/ AMC is currently in the process of setting up appropriate systems

and procedures for the said purpose. Appropriate notice shall be displayed

on its website viz. as well as at the Investor Service Centres, once the facility

is made available to the investors.



Default Plan/

Option

The investors may refer to the paragraph under New Fund offer Section for

applicability of Direct Plan/ Regular Plan under different scenario.

Ongoing Offer

Period


which the Scheme

will reopen for

Subscriptions/rede

mptions after the

closure of the NFO

period.

The Scheme has reopened for continuous subscription and redemption from

June 12, 2012.

Ongoing price for

Subscription

(purchase)/Switch-

in (from other

schemes/Plans of

the Mutual Fund) by

Investors.


need to pay for

purchase/Switch-in.

At the Applicable NAV.

SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009

has decided that there shall be no entry Load for all Mutual Fund Schemes.

Hence, no entry load is levied for subscription transactions by the Scheme.





= Rs. 10* (1+NIL)

= Rs. 10

Ongoing price for

redemption (sale)

/Switch outs (to

other

schemes/Plans of

the Mutual Fund) by

Investors.


will receive for

redemptions/Switch

outs.

At the Applicable NAV subject to prevailing Exit Load.

Ongoing price for redemption /Switch out (to other Schemes/Plans of the

Mutual Fund) is price which a Unit holder will receive for redemption/Switch-

outs. During the continuous offer of the Scheme, the Unit holder can redeem

the Units at Applicable NAV, subject to payment of Exit Load, if any. It will be

calculated as follows:




price will be:

= Rs. 10* (1-0.02)

= Rs. 9.80

Investors/Unit holders should note that the AMC/Trustee has right to modify

existing Load structure and to introduce Loads subject to a maximum limits

prescribed under the SEBI Regulations.

Any change in Load structure will be effective on prospective basis and will

not affect the existing Unit holder in any manner.

However, the Mutual Fund will ensure that the Redemption Price will not be

lower than 93% of the Applicable NAV provided that the difference

between the Redemption Price and the Subscription /Purchase Price at any

point in time shall not exceed the permitted limit as prescribed by SEBI from

time to time, which is currently 7% calculated on the Subscription/ Purchase

Price. The Purchase Price shall be at applicable NAV.

Cut off timing for

Subscriptions/

redemptions/

Switches


The following cut-off timings shall be observed by the Mutual Fund in respect

of purchase of units of the Scheme and the following NAVs shall be applied

for such purchase:


This is the time

before which your

application

(complete in all

respects) should

reach the Official

Points of

Acceptance.

1. where the application is received upto 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 receipt of application;

2. 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 ; and

3. where the application is received with an outstation cheque or demand

draft which is not payable at par at the place where it is received –

closing NAV of day on which the cheque or demand draft is credited.

4. In respect of purchase of units with amount equal to or more than Rs. 2

lakhs, irrespective of the time of receipt of application, the closing NAV

of the day on which the funds are available for utilization shall be

applicable.

For allotment of units in respect of purchase in the Scheme under Pt. (4)

above, it shall be ensured that:

i. Application is received before the applicable cut-off time.


application are credited to the bank account of the Scheme before the

cut-off time.



Scheme.

For allotment of units in respect of switch-in to the Scheme under Pt. (4)

above from other schemes, it shall be ensured that:

i. Application for switch-in is received before the applicable cut-off time.

ii. Funds for the entire amount of subscription/purchase as per the switch-in

request are credited to the bank account of the Scheme before the cut-

off time.



Scheme.


The following cut-off timings shall be observed by the Mutual Fund in respect

of Repurchase of units:

a. where the application received upto 3.00 pm – closing NAV of the day

of receipt of application; and

b. an application received after 3.00 pm – closing NAV of the next Business

Day.

The above mentioned cut off timing shall also be applicable to transactions

through the online trading platform.

In case of Transaction through Stock Exchange Infrastructure, the Date of

Acceptance will be reckoned as per the date & time; the transaction is

entered in stock exchange’s infrastructure for which a system generated

confirmation slip will be issued to the investor.

Where can the Refer Back Cover Page


applications for

purchase/redempti

on Switches be

submitted?

Minimum amount

for

purchase/Redempti

on/Switches






There will be no minimum redemption criterion. The Redemption / Switch-out

would be permitted to the extent of credit balance in the Unit holder’s

account of the Plan(s) / Option(s) of the Scheme (subject to completion of

Lock-in period or release of pledge / lien or other encumbrances). The

Redemption / Switch-out request can be made by specifying the rupee

amount or by specifying the number of Units of the respective Plan(s) /

Option(s) to be redeemed. In case a Redemption / Switch-out request

received is for both, a specified rupee amount and a specified number of

Units of the respective Plan(s)/ Option(s), the specified number of Units will

be considered the definitive request. In case the value / number of

available units held in the Unit holder’s folio / account under the Plan /

Option of the Scheme is less than the amount / number of units specified in

the redemption / switch-out request, then the transaction shall be treated as

an all units redemption and the entire balance of available Units in the folio /

account of the Unit holder shall be redeemed.


request for Redemption only in number of Units which can be fractional units

also. Depository participants of registered Depositories can process only

redemption request of units held in demat mode.

The AMC/ Trustee reserves the right to change/ modify the terms of minimum

redemption amount/switch-out.

Minimum balance

to be maintained

and consequences

of non

maintenance.


However, the AMC / Trustee may decide to introduce minimum balance

requirements later, if they so deem fit. In such case, in the event of non-

maintenance of minimum balance for any particular situations, the Unit may

be compulsorily redeemed.



redeem all the Unit in the folio and send the Redemption proceeds to the

Unit holder.

Special Products

available

SYSTEMATIC INVESTMENT PLAN (SIP)


Enrolment Form at the Official Point(s) of Acceptance. An Investor shall have

the option of choosing any date of the Month as his SIP date other than 29th,

30th and 31st of a month. Minimum amount and minimum installments for

monthly and yearly frequency under SIP Facility is as follows:

Frequency

under SIP Facility

Minimum

Installments

Minimum SIP amount

Monthly 6 Installments Rs. 1,000/- and in multiple of

Re. 1/-

Yearly 3 Installments Rs. 12,000/- and in multiple of


Re. 1/-

If the SIP period is not specified by the unit holder then the SIP enrolment will

be deemed to be for perpetuity and processed accordingly.


available in bank account, the SIP for that month would be rejected.

Allocation to a particular scheme or pro–rata allocation to schemes will not

be carried out.



application while the remaining cheques shall be post dated cheques

which shall be dated uniformly. Investors can invest in SIP by providing

post-dated cheques to Official Point(s) of Acceptance. An Investor is

eligible to issue only one cheque for each month in the same SIP

enrolment form. All SIP cheques should be of the same amount and

same date option. Cheques should be drawn in favour of the Fund and

“A/c Payee only”. A Letter will be forwarded to the Investor on successful

registration of SIP. The Post Dated cheques will be presented on the

dates mentioned on the cheque and subject to realization of the

cheque.

ii. SIP through National Automated Clearing House (NACH) Platform //Direct

Debit facility

Investors / Unit holders may enroll for SIP Direct Debit Facility available

with specified Banks / Branches. In order to enroll for SIP Direct Debit

Facility, an Investor must fill-up the Application Form for SIP Direct Debit

facility.

In case of SIP with payment mode as Direct Debit/Standing Instructions,

Investors shall be required to submit a cancelled cheque or a

photocopy of a cheque of the bank account for which the debit

mandate is provided with first installment through cheque. The SIP facility

will also be available through standing instructions/direct debit given by

the investor (with all payment installments being made through standing

instructions/direct debit). However, the SIP facility with direct debit will be

available through selected Banks. The Asset Management Company

reserves the right to add/modify/delete from the list of banks through

whom such facility will be available to the investors.

The unit holders can also make payment of SIP instalments through NACH

facility. NACH is a centralized system, launched by National Payments

Corporation of India (NPCI) with an aim to consolidate multiple NACH

mandates. This facility will enable the unit holders of the Fund to make SIP

investments through NACH by filling up the SIP Registration cum mandate

form. A Unique number will be allotted to every mandate registered

under NACH called as Unique Mandate Reference Number (“UMRN”)

which can be used for SIP transactions. The NACH facility shall be

available subject to terms and conditions contained in the SIP registration

Mandate Form and as prescribed by NPCI from time to time.

All SIP cheques/payment instructions should be of the same amount and

same date (excluding first cheque). However, there should be a gap of 30

days between first SIP Installment and the second installment in case of SIP

started during ongoing offer.

Investors will have the right to discontinue the SIP facility at any time by


sending a written request to any of the Official Point(s) of Acceptance.

Notice of such discontinuance should be received at least 20 days prior to

the due date of the next debit. On receipt of such request, the SIP facility will

be terminated. It is clarified that if the Fund fails to get the proceeds from

three Installments out of a continuous series of Installments submitted at the

time of initiating a SIP, the SIP is deemed as discontinued.

Units will be allotted at the Applicable NAV of the respective dates on which

the investments are sought to be made. In case the date falls on a Holiday

or falls during a Book Closure period, the immediate next Business Day will be

considered for this purpose.

An extension of an existing SIP will be treated as a new SIP on the date of

such application, and all the above conditions need to be met with.

The Load structure prevailing at the time of submission of the SIP application

(whether fresh or extension) will apply for all the Installments indicated in

such application.

The AMC has the authority to make available SIP by way of a salary savings

scheme for a group of employees through an arrangement with their

employers.

For applicable Load on Purchases through SIP, please refer paragraph ‘Load

Structure’ given in the document.

The AMC reserves the right to change / modify Load structure and other

terms and conditions under the SIP prospectively at a future date. Please

refer to the SIP Enrolment Form for terms & conditions before enrolment.


Unit holders having registered SIP in the specified scheme(s) of the Fund can

use SIP Switch Facility to terminate SIP in the existing scheme and initiate SIP

in another specified scheme.

SIP Switch Facility shall be available to unit holders under all open ended

schemes of the Fund except for Axis Liquid Fund, Axis Overnight Fund, Axis

Gold ETF, Axis Nifty ETF and Axis Children’s Gift Fund.


1. SIP Switch Facility can be availed by unit holders only after completion of

minimum installments specified for SIP registration in the Switch-out

(existing) scheme.

2. SIP Switch Facility will be considered as termination of SIP in Switch-out

scheme and subscription of SIP in Switch-in scheme.

3. SIP in Switch-in scheme will be subject to the terms of offering specified in

the SID of Switch-in scheme.

4. SIP registration end date should ensure compliance of minimum SIP

installments prescribed in Switch-in scheme.

5. SIP Switch Facility is available for changing SIP investment mandate from

one scheme to another specified scheme. The same is also available for

switch between Plans / Options offered under same scheme. Further, the

amount of installment, date and frequency of SIP and SIP end date of

Switch-out scheme shall remain same as under Switch-in scheme.


7. SIP Switch Facility is not available for SIP subscribed with post-dated

cheques.


8. Investors will have the option of changing the distributor code from

direct to regular/ regular to direct.

9. Unit holder must submit request for SIP Switch at least 21 days before the

SIP due date.


Unitholder can enroll multiple SIPs in different schemes by submitting one

single application form/ payment instruction. All other terms and conditions

applicable to SIP Facility shall be applicable for the Facility.


The Facility enables unitholders to increase the SIP installment amount at pre-

defined intervals by a fixed amount or anytime by a specified amount as per

the request (in case of ‘As & When frequency’).


1. Top-Up Amount: The minimum amount of Top-Up shall be Rs. 500/- and in

multiple of Re. 1/- for all schemes. In case of discrepancy in the Top-Up

amount, SIP will be registered without Top-Up Facility.

2. Top-Up facility is available for SIP registered with Monthly frequency only.

3. Top-Up Frequency: Top-Up frequency is available only on ‘Half Yearly’,

‘Yearly’ and ‘As & When frequency’. In case the Top-Up frequency is not

specified / is not legible, the default frequency will be ‘Yearly’, provided

Top-Up amount is mentioned clearly.

4. The Facility shall be available for SIP Investments through Electronic Debit

arrangement/ NACH (National Automated Clearing House) or as may

be specified by AMC.

5. The Facility can be availed by filling up prescribed form at time of SIP

Facility enrolment. Existing SIPs cannot be converted into the Facility.

6. The application form for availing the Facility should be submitted 21 days

before the first SIP installment date.

7. The gap between SIP registration and first Top-Up request under 'As &

When' frequency and two instructions under ‘As & When’ frequency

should be at least 3 months.

8. The Facility shall continue till the end date of the SIP. The Facility can be

discontinued only by cancelling the SIP.

9. All other terms and conditions applicable to SIP Facility shall be


PURCHASE / REDEMPTION OF UNITS THROUGH STOCK EXCHANGE

INFRASTRUCTURE

Investors can subscribe to the Units of Axis Mutual Fund through the mutual

fund trading platforms of the Bombay Stock Exchange (“BSE”) and National

Stock Exchange (“NSE”) with NSDL and CDSL as depositories for such units of

the mutual fund.

NSE has introduced Mutual Fund Service System (“MFSS”) Platform and BSE

has introduced BSE StAR MF Platform.

The following are the salient features of the MFSS / BSE StAR MF Platform:

1. The facility i.e. purchase/redemption/SIP (Systematic Investment Plan) is

available for both existing and new investors.

2. The Investors will be eligible to purchase/redeem units of the Scheme.

3. Maximum subscription:

The investors can purchase units of the Scheme by using MFSS/ BSE StAR

Platform for transaction value less than Rs. 1 Crore.





All trading members of BSE & NSE who are registered with AMFI as Mutual

Fund Advisors and also registered with BSE &/or NSE as Participants ("AMFI

registered stock exchange brokers") will be eligible to offer this facility to

investors and shall be treated as Official Point of Acceptance.

Units of mutual fund schemes shall be permitted to be transacted through

clearing members of the registered Stock Exchanges. Further, the

Depository Participants of registered Depositories are permitted to process

only redemption request of units held in demat form.


Official Points of Acceptance (OPA) of Axis Mutual Fund and conditions

stipulated in SEBI circular no. SEBI/IMD/CIR No.11/183204/2009 dated

November 13, 2009 for stock brokers viz. AMFI /NISM certification, code of

conduct prescribed by SEBI for Intermediaries of Mutual Fund, shall be

applicable for such Clearing members and Depository participants as

well.

5. The units of the Scheme are not listed on BSE & NSE and the same cannot

be traded on the Stock Exchange. The window for purchase/redemption

of units on MFSS / BSE StAR Platform will be available between 9 a.m. and

3 p.m. or such other timings as may be decided.

6. Transactions only in demat mode will be currently permitted through MFSS

/ BSE StAR MF Platform.

7. Investors will be able to purchase/redeem units in the Scheme in the

following manner:

(i) Investors shall receive redemption amount (if units are redeemed) and

units (if units are purchased) through broker/ clearing member's pool

account. Axis AMC/Axis Mutual Fund (the "Mutual Fund") shall pay

proceeds to the broker/clearing member (in case of redemption) and

broker/clearing member in turn to the respective investor and similarly

units shall be credited by the AMC/ Mutual Fund into broker/clearing

member's pool account (in case of purchase) and broker/clearing

member in turn shall credit the units to the respective investor's demat

account.

(ii) Payment of redemption proceeds to the broker/clearing members by

AMC/Mutual Fund shall discharge AMC/Mutual Fund of its obligation

of payment to individual investor. Similarly, in case of purchase of

units, crediting units into broker/clearing member pool account shall

discharge AMC/Mutual Fund of its obligation to allot units to individual

investor.



9. For all the transactions done through these platforms, separate Folio. No.

shall be allotted to the existing and the new investors. The bank a/c

number, address, nomination details etc. shall be the same as per the

Demat account of the investor. In case of non-financial

requests/applications such as change of address, change of bank details,

etc. for units held in demat mode investors should approach the

respective Depository Participant(s) and OPAT of AMC for units held in

physical mode.

10. Investors will have to comply with Know Your Customer (KYC) norms

as prescribed by BSE/NSE/CDSL/ NSDL and Axis Mutual Fund to participate

in this facility.

11. Investors should get in touch with Investor Service Centres (ISCs) of


Axis Mutual Fund for further details.

1. Transaction through Stock Exchange infrastructure using services of

Distributor/ SEBI Registered Investment Advisor

SEBI circular no. CIR/MRD/DSA/32/2013 dated October 4, 2013 and circular

no. CIR/MRD/DSA/33/2014 dated December 9, 2014, has permitted Mutual

Fund Distributors (“MF Distributors”) and SEBI circular no.

SEBI/HO/MRD/DSA/CIR/P/2016/113 dated October 19, 2016 permitted SEBI

Registered Investment Advisors (“RIAs”) to use recognized Stock Exchange

infrastructure to purchase/redeem units directly from Mutual Fund/AMC on

behalf of their clients.


platform of NSE (in addition to other intermediaries) and / or of BSE StAR MF

platform of BSE to purchase and redeem units of schemes of the Fund.

In addition to the guidelines specified for transacting through MFSS/BSE StAR

MF Platform above, following guidelines shall be applicable for transactions

executed through MF Distributors/ RIAs on NMF-II / BSE StAR MF Platform:

1. MF distributors/RIAs shall not handle pay out/pay in of funds as well as

units on behalf of investor. Pay in will be directly received by recognized

clearing corporation and payout will be directly made to investor

account. In the same manner, units shall be credited and debited

directly from the demat account of investors.

2. Transactions only in physical (non-demat) transactions will be permitted

through NMF-II / BSE StAR MF Platform.

The facility of transacting in mutual fund schemes through stock exchange

infrastructure is available subject to such operating guidelines, terms and

conditions as may be prescribed by the respective Stock Exchanges from

time to time.


Investors can opt for Systematic Transfer Plan by investing a lumpsum

amount in one scheme of the Fund and providing a standing instruction to

transfer sums at following intervals into any other scheme (as may be

permitted by the Scheme Information Document of the respective schemes)

of the Fund.

STP


Minimum

Amount* (in

Rs.)

Minimum

Installment



Fortnightly Alternate Wednesday 1,000/- 6



In case Day of Transfer has not been indicated under Weekly frequency,

Wednesday shall be treated as Default day. Further, in case of Monthly and

Quarterly Frequency, if the STP date and Frequency has not been indicated,

Monthly frequency shall be treated as Default frequency and 10th shall be



frequency shall be treated as Default frequency and 10th shall be treated as


Default Date.

Investors could also opt for STP from an existing account by quoting their

account / folio number. A minimum period of 7 days shall be required for

registration under STP.

Units will be allotted/ redeemed at the applicable NAV of the respective

dates of the Scheme in which such investments/withdrawals are sought from

the Scheme.

The requests for discontinuation of STP shall be subject to an advance notice

of 15 days before the next due date for STP and it will terminate

automatically if all Units are liquidated or withdrawn from the account or

upon the Funds’ receipt of notification of death or incapacity of the Unit

holder.

The AMC reserves the right to introduce STPs at any other frequencies or on

any other dates as the AMC may feel appropriate from time to time. In the

event that such a day is a Holiday, the transfer would be affected on the

next Business Day.

Further, in case where the balance amount in folio is less than the STP

amount, the entire amount will be transferred to the transferee scheme.

For further details/clarifications investors may contact the distributor(s) or the

ISCs of the AMC.

Note:

(a) In case of Systematic Investment Plan (SIP) / Systematic Transfer Plan

(STP) etc. registered prior to January 1, 2013 without any distributor code

under the Axis Banking Debt Fund - Regular Plan, installments falling on

or after January 1, 2013 will automatically be processed under the

Direct Plan.

(b) Investors who had registered for Systematic Investment Plan facility prior

to January 1, 2013 with distributor code and wish to invest their future

installments into the Direct Plan, shall make a written request to the Fund

in this behalf. The Fund will take at least 15 days to process such

requests. Intervening installments will continue in the Axis Banking Debt

Fund (Regular Plan).

In case of (a) and (b) above, the terms and conditions of the existing

registered enrolment shall continue to apply.

In case of Systematic Transfer Facilities (registered with Distributor Code)

were registered under the Axis Banking & Debt Fund - Regular Plan prior to

January 1, 2013 the future installments shall continue under the Regular Plan.





Under this facility, the investors can opt for the Systematic Transfer Plan by

investing a lump sum amount in one scheme of the Fund and providing a

standing instruction to transfer capital appreciation at regular intervals -

Weekly, Monthly and Quarterly into any other scheme (as may be permitted

by the Scheme Information Document of the respective schemes) of Axis


Mutual Fund.

The capital appreciation, if any, will be calculated from the enrolment date

of the CapSTP under the folio, till the first transfer date. Subsequent capital

appreciation, if any, will be the capital appreciation between the previous

CapSTP date (where CapSTP has been processed and paid) and the next

CapSTP date.

There are three options available under CapSTP viz. Weekly, Monthly and

Quarterly option, the details of which are given below:

CapSTP


Minimum

Amount* (in

Rs.)

Minimum

Installment


Monthly 1st, 7th, 10th, 15th or 25th 500/- 6


The provision of ‘Minimum Redemption Amount’ as specified in the Scheme

Information Document of the respective designated Transferor Schemes and

‘Minimum Application Amount’ specified in the Scheme Information

Document of the respective designated Transferee Schemes will not be

applicable for CapSTP.


enrolment period in the enrolment form, failing which the form is liable to be

rejected.

In case, the enrolment period has been filled, but the CapSTP Date and/or

Frequency (Monthly/ Quarterly) has not been indicated, Monthly frequency

shall be treated as Default frequency and 10th shall be treated as Default

Date. In case of weekly frequency, Wednesday shall be treated as Default

day.

In case none of the frequency is selected then Monthly frequency shall be

treated as Default frequency and 10th shall be treated as Default Date.




In respect of CapSTP, the Load Structure prevalent at the time of enrolment

shall govern the investors during the tenure of the CapSTP.

A minimum period of 7 working days shall be required for registration under

CapSTP. Units will be allotted/redeemed at the applicable NAV (of the

respective date(s)) of the Scheme from/to which such


The AMC reserves the right to introduce CapSTPs at any other frequencies or

on any other dates as the AMC may feel appropriate from time to time. In

the event that such a day is a Holiday, the transfer would be affected on

the next Business Day.

The requests for discontinuation of CapSTP shall be subject to an advance

notice of 15 days before the next due date for CapSTP.


CapSTP will terminate automatically if all Units are liquidated or withdrawn

from the account or upon the Funds’ receipt of notification of death or

incapacity of the Unit holder. Further, in case where the balance amount in

a folio is less than the CapSTP amount, the entire amount will be transferred

to the transferee scheme.

FLEX - SYSTEMATIC INVESTMENT PLAN/ SYSTEMATIC TRANSFER PLAN ("Flex SIP/

Flex STP")


1. Flex SIP is a facility wherein an investor can opt to invest variable amount

linked to the value of his investments in any of the existing open ended

scheme(s) of Axis Mutual Fund (“Investee scheme”), on pre-determined

date. This facility allows investors to take advantage of market

movements by investing higher when the markets are low and vice-

versa.

2. Flex STP is a facility wherein an investor under any of the existing open

ended scheme(s) of Axis Mutual Fund can opt to transfer variable

amount linked to value of his investments, on predetermined date from

designated open-ended Scheme(s) of Axis Mutual Fund ("Transferor

Scheme") to the Growth Option of designated open-ended Scheme(s)

("Transferee Scheme").

3. A single Flex SIP/STP Enrolment Form can be filled for investment/ transfer

into one Scheme/Plan/Option only.

4. In case of valid enrolment forms received, indicating choice of option

other than the growth option in the Investee / Transferee Scheme, it will

be deemed as the growth option in the Investee / Transferee Scheme

and processed accordingly.

5. In case of Flex STP, unit holders' details and mode of holding (single,

jointly, anyone or survivor) in the Transferee Scheme will be as per the

existing folio number of the Transferor Scheme. Units will be allotted

under the same folio number. Unitholders' name should match with the

details in the existing folio number, failing which the enrolment form is

liable to be rejected.

6. The minimum number of installments for enrollment and Amount under

Flex STP:

Frequency under Flex-STP

Facility

Minimum

Installments

Minimum Flex-STP

amount*

Monthly (1st, 7th,10th,15th

or 25th)

6 Rs. 1,000/- and in

multiple of Rs. 1/-

Quarterly (1st, 7th,10th,15th

or 25th)

2 Rs. 3,000/- and in

multiple of Rs. 1/-

7. The minimum number of installments for enrollment and Amount under

Flex SIP:

Frequency

under Flex-SIP

Facility

Minimum Installments Minimum Flex-SIP

amount

Monthly 12 Installments for all

schemes

Rs. 1,000/- and in multiple

of Rs. 1/-

Yearly 3 Installments for all

schemes

Rs. 12,000/- and in

multiple of Rs. 1/-




Under the Flex STP – (as per the Frequency) unit holders will be eligible to

transfer fixed amount to be transferred per installment OR the amount as

determined by the following formula whichever is higher:

Fixed installment amount or (number of installments including the current

installment X fixed amount to be transferred per installment) - market

value of the investments through Flex STP in the Transferee Scheme on

the date of transfer whichever is Higher

In case of Flex STP, if the amount (as specified by the formula) to be

transferred under STP is not available in the Transferor Scheme in the unit

holder's account, the residual amount will be transferred to the

Transferee Scheme and Flex STP will be closed.

9. Calculation of Flex SIP

Under the Flex SIP – (as per the Frequency) unit holders will be eligible to

invest fixed amount to be invested per installment OR the amount as

determined by the following formula whichever is higher:

Fixed installment amount or (number of installments including the current

installment X fixed amount to be invested per installment) - market value

of the investments through Flex SIP* in the Investee Scheme whichever is

Higher

*The installment value of Flex SIP will be determined on the basis of NAV

on 10th day (T-10) before the installment date. If T-10th day falls on a Non-

Business day or falls during a book closure period, then valuation will be

done on T-11th day.


designated bank account and the debit instruction fails then Flex SIP will

be stopped.

10. If the NAV falls continuously throughout the Flex STP period, number of

installments may be less than those mentioned on application form.

11. The first Flex SIP/STP instalment will be processed for the fixed instalment

amount specified by the unit holder at the time of enrolment. From the

second Flex SIP/STP instalment onwards, the investment/ transfer amount

shall be computed as per formula stated above.

12. In case the date of investment/ transfer falls on a Non-Business Day or

falls during a book closure period, the immediate next Business Day will

be considered for the purpose of determining the applicable NAV.

13. Once the Flex SIP/ STP have been stopped the unit holder needs to

provide a new request to start Flex SIP/ STP.

14. The redemption/ switch-out of units allotted in the Investee/ Transferee

Scheme shall be processed on First in First out (FIFO) basis. If there are

other financial transaction (purchase, redemption or switch) processed

in the Investee/ Transferee scheme during the tenure of Flex SIP/ STP, the

Flex SIP / STP will be processed as normal SIP / STP for the rest of the

instalments for a fixed amount.

15. In respect of Flex SIP / STP enrollments made in any of the existing open

ended Scheme(s), the Load Structure prevalent at the time of enrollment

shall be applicable to the investors during the tenure of the Flex SIP / STP.

Load structure for investments through Flex SIP / STP to the Schemes

eligible for this facility:



Scheme to the Transferee Scheme shall be affected by switching


units of Transferor Scheme at applicable NAV, after payment of exit

load, if any, and subscribing to the units of the Transferee Scheme at

Applicable NAV.


Applicable Exit Load, if any, in the Investee / Transferee Schemes

Plan /Option as on the date of enrollment will also be levied. For

Scheme load structure please refer to SID/ KIM or contact the

nearest Investor Service Centre (ISC) of Axis Mutual Fund or visit our

website www.axismf.com.

16. Flex STP will be automatically terminated if all units are liquidated or

withdrawn from the Transferor Scheme or pledged or upon receipt of

intimation of death of the unit holder.

17. The provision of 'Minimum Redemption Amount' as specified in the


Scheme(s) and 'Minimum Application Amount' specified in the Scheme

Information Document of the respective designated Transferee

Scheme(s) will not be applicable for Flex SIP/ STP.

18. The request for Flex SIP/ STP should be submitted at least 25 calendar

days before the first SIP and at least 7 calendar days before STP date.

19. Unit holders have a right to discontinue the Flex SIP/ STP facility at any

time by sending a written request to the ISC. On receipt of such request,

the Flex SIP / STP facility will be terminated within 20 working days.


Systematic Transfer Plan are applicable to Flex SIP and STP respectively.


Flex SIP/ STP that transfers Rs. 3,000/- every month from the Debt Fund to an

Equity Fund.

Transferor Scheme: Axis Credit Risk Fund


Option


Amount of Transfer per Installment Rs 3,000/-





i. Total units allotted up to the date of last installment i.e. March 10, 2013

is assumed as 822.73;

ii. NAV of Axis Bluechip Fund - Growth Option on April 10, 2013 is assumed

as Rs. 9/- per unit;

iii. Hence the market value of the investment in the Investee / Transferee

Scheme on the date of investment/ transfer is Rs. 7, 404.55[822.73X 9].


a) Fixed amount specified at the time of enrolment: Rs.3,000/-

Or

b) As determined by the formula: (3,000 X

4) – 7,404.55 = Rs. 4,595/-


Hence, on April 10, 2013, the installment amount to be transferred to the

Transferee Scheme will be Rs. 4,595/-.




Investee Scheme: Axis Bluechip Fund - Growth

Option





Calculation of Flex SIP instalment amount for the 4th instalment i.e. April 10,

2013

i. Total units allotted up to the date of last installment i.e. March 10, 2013

is assumed as 822.73;

ii. NAV of Axis Bluechip Fund - Growth Option on T-10th day* is assumed

as Rs. 9/- per unit;

iii. Hence the market value of the investment in the Investee Scheme on

T-10th day is Rs. 7,404.55[822.73X 9].


a. Fixed amount specified at the time of enrolment: Rs.3,000/-

Or

b. As determined by the formula: (3,000 X

4) – 7,404.55 = Rs. 4,595/-



Investee Scheme will be Rs. 4,595/-.

*The installment value of Flex SIP will be determined on the basis of NAV on

10th day (T-10) before the installment date. In the above example T-10th day

will be 31st March 2013.

Investors are advised to read the SID/ KIM of the Transferee Scheme(s) and

Statement of Additional Information carefully before investing. The SID/ KIM

of the respective Scheme(s) are available with the ISCs of Axis Mutual Fund,

brokers/distributors and also displayed on the Axis Mutual Fund website i.e.

www.axismf.com


Existing Unitholders have the benefit of availing the choice of SWP on pre-

specified dates. The SWP allows the Unitholder to withdraw a specified sum

of money each month/ quarter from his investments in the Scheme.

The amount thus withdrawn by redemption will be converted into Units at

Applicable NAV based prices and the number of Units so arrived at will be

subtracted from the Units balance to the credit of that Unitholder.

Unitholders may start the facility/ change the amount of withdrawals or the

period of withdrawals by giving a 15 days written intimation/notice. The SWP

may be terminated by a Unitholder by giving 15 days written intimation/

notice and it will terminate automatically if all the Units are liquidated or

withdrawn from the account or the holdings fall below the SWP installment

amount.

There are four options available under SWP viz. Monthly option, quarterly

option, Half Yearly and Yearly option. The details of which are given below:

Monthly

Option

Quarterly

Option

Half Yearly

Option

Yearly

Option


Minimum value of

SWP

Rs. 1,000/-

Additional

amount in

multiples of

Re.1

Dates of SWP

Installment

1/5/10/15/25*

Minimum No of

SWP

Six Four Four Two

* In the event that such a day is a non-business day, the withdrawals would

be affected on the next business day.


The AMC reserves the right to accept SWP applications of different amounts,

dates and frequency.


completed Systematic Withdrawal enrolment Form at any of the Investor

Service Centres (ISCs)/Official Points of Acceptance (OPAs). The AMC /

Trustee reserve the right to change / modify the terms and conditions under

the SWP prospectively at a future date.

SWITCHING OPTIONS


Unit holders under the Scheme have the option to Switch part or all of their

Unit holdings in the Scheme to any other Scheme offered by the Mutual

Fund from time to time. The Mutual Fund also provides the Investors the

flexibility to Switch their investments from any other scheme(s) / plan (s)

offered by the Mutual Fund to this Scheme. This option will be useful to Unit

holders who wish to alter the allocation of their investment among the

scheme(s) / plan(s) of the Mutual Fund in order to meet their changed

investment needs.


Scheme at Applicable NAV, subject to Exit Load, if any and reinvestment of

the Redemption proceeds into another Scheme offered by the Mutual Fund

at Applicable NAV and accordingly the Switch must comply with the

Redemption rules of the Switch out Scheme and the Subscription rules of the

Switch in Scheme.

(b) Intra -Scheme Switching plan/option

Unit holders under the Scheme have the option to Switch their Units holding

from one plan/option to another plan/option (i.e. Axis Banking & PSU Debt

Fund – Regular Plan to Axis Banking & PSU Debt Fund – Direct Plan and

Growth to Dividend and vice-a-versa). The Switches would be done at the

Applicable NAV based prices and the difference between the NAVs of the

two options will be reflected in the number of Units allotted.

Switching shall be subject to the applicable “Cut off time and Applicable

NAV” stated elsewhere in the Scheme Information Document. In case of

“Switch” transactions from one scheme to another, the allocation shall be in

line with Redemption payouts.

TRANSACTION ON FAX

In order to facilitate quick processing of transaction and / or instruction of


investment of investor the AMC/ Trustee/ Mutual Fund may (at its sole

discretion and without being obliged in any manner to do so and without

being responsible and/ or liable in any manner whatsoever) accept and

process any application, supporting documents and / or instructions

submitted by an investor / Unit holder by facsimile (Fax Submission) and the

investor / Unit holder voluntarily and with full knowledge takes and assumes

any and all risk associated therewith. The AMC / Trustee/ Mutual Fund shall

have no obligation to check or verify the authenticity or accuracy of Fax

Submission purporting to have been sent by the investor and may act

thereon as if same has been duly given by the investor. In all cases the

investor will have to immediately submit the original documents/ instruction

to AMC/ Mutual Fund.

ONLINE TRANSACTIONS


Purchase/ Redemption / Switch of Units by electronic mode through the

AMC web–site / Mobile Application. The Subscription proceeds, when

invested through this mode, are by way of direct debits to the designated

bank through payment gateway. The Redemption proceeds, (subject to

deduction of tax at source, if any) through this mode, are directly credited

to the bank account of the Investors who have an account at the

designated banks with whom the AMC has made arrangements from time

to time or through NEFT/RTGS or through cheque/Payorder/Demand draft

issuance. The AMC will have right to modify the procedure of transaction

processing without any prior intimation to the Investor.

Investment amount through this facility may be restricted by the AMC from

time to time in line with prudent risk management requirements and to

protect the overall interest of the Investors.

For details of the facility, investors are requested to refer to the website of

the AMC.

TRANSACTIONS THROUGH ELECTRONIC PLATFORM(S) OF KARVY FINTECH PVT.

LTD.

Investors will be allowed to transact through www.karvymfs.com, an

electronic platform provided by M/s. Karvy Fintech Pvt. Ltd. (‘Karvy’),

Registrar & Transfer Agent, in Schemes of Axis Mutual Fund (‘Fund’) (except

Axis Gold ETF and Axis Nifty ETF). The facility will also be available through

mobile application of Karvy.


Regulations, 1996 and as mentioned in SID and KIM of the Scheme will be

applicable for transactions received through the above electronic platform

and the time of receipt of transaction recorded on the server(s) of Karvy will

be reckoned as the time for the purpose of determining applicability of

NAV, subject to credit of funds to bank account of scheme, wherever

applicable.

The facility is subject to operating guidelines, terms and conditions as may

be prescribed by Karvy or as may be specified by Axis AMC from time to

time. For operating guidelines and terms and conditions , investors are

requested to visit www.karvymfs.com.

Time of receipt of transaction recorded on the server(s) of Karvy will

continue to be reckoned for electronic transactions received through AMC

website/ Distributor website/ applications etc subject to credit of funds to

http://www.karvymfs.com/


bank account of scheme, wherever applicable.

ONLINE SCHEDULE TRANSACTION FACILITY (‘THE OST FACILITY’/ ‘THE FACILITY’):


redemption / switch transaction(s) on specified date for specified amount/

units by giving online instruction.



schemes of Axis Mutual Fund (except Axis Gold ETF and Axis Nifty ETF),

subject to completion of lock-in, if any.



3. The Facility for subscription transaction would be available to unitholders

after completion of OTM Mandate / Easycall mandate/ equivalent

mandate registration process and as per limits specified therein.

4. Under the Facility the transaction can be scheduled to be executed on

a specified date which shall be within 30 calendar days from the date of

the instruction. Such specified date shall be a business day. In case the

scheduled transaction date falls on a non-business day, the transaction

will be executed on the immediately following business day.


website of Axis AMC i.e. www.axismf.com. Axis AMC may extend the

Facility to other transaction platforms from time to time, at its discretion.


instruction atleast one calendar day prior to the scheduled transaction

date.

7. The triggered transaction on the scheduled date shall be considered as

time stamped and will be executed on the specified date at the

applicable NAV of the relevant scheme. In case the specified date

happens to be a non-business day in debt schemes but is a business day

in equity schemes, switch-out from equity schemes will be processed on

the specified date, while the switch-in to debt/liquid schemes will be

processed on the next business day.

8. The scheduled transaction(s) shall be subjected to exit load, minimum

subscription/additional subscription application and other terms and

conditions of the relevant scheme as per SID applicable on the specified

date.


amount is not available for subscription or sufficient number of units /

amount is not available for redemption.

10. Redemption transactions will not be executed in case units are pledged

or where lien is marked on units, at the time of online instruction / on

specified date.




The Facility is an additional facility provided to the Unitholders to plan their

transactions in schemes using online platforms.


conditions or to make operational rules for operation of the Facility from time

to time.

EASY CALL FACILITY

All individual investors in the scheme applying on “Sole” or “Joint (Anyone or



Survivor)” basis in their own capacity shall be eligible to avail of Easy Call

facilities for permitted transactions inter alia on the following terms and

conditions (“Terms and Conditions” mean the terms and conditions set out

below by which the Facility shall be used/availed by the Investor/s and shall

include all modifications and supplements made by AMC thereto from time

to time).


Purchase/ Redemption / Switch of Units over phone. Initial Investment has to

be through physical mode wherein he has to sign a one time debit mandate

for bank accounts pertaining to designated banks with which the AMC may

have an arrangement. This facility is extended to the bank with which the

Fund would have an arrangement from time to time. Investment amount

may be restricted by the AMC from time to time in line with prudent risk


Investors.

Investor will be allowed transactions over phone after 30 days from the date

of submission of one time mandate. Investor will not be permitted to avail

the Easy call facility for Redemptions/Switch transactions if bank mandate is

changed with in last 15 days. AMC will have right to modify the procedure of

transaction processing without any prior intimation to the Investor. AMC

retains the right to maintain call records of the communication with

investors, for lawful purposes.









The Investor/s shall check his/her account records carefully and promptly. If

the Investor/s believes that there has been a mistake in any transaction

using the Facility, or that unauthorized transaction has been effected, the

Investor/s shall notify the AMC immediately. If the Investor/s defaults in

intimating the discrepancies in the statement within a period of fifteen days

of receipt of the statements, he waives all his rights to raise the same. By

opting for the facility the Investor/s hereby irrevocably authorizes and

instructs the AMC to act on his /her behalf and to do all such acts as AMC

may find necessary to provide the Facility.





Investor/s for an oral or written confirmation of any transaction request using

the Facility and/or any additional information regarding the Account of the

Investor/s.

The Investor/s agrees and confirms that the AMC may at its sole discretion

suspend the Facility in whole or in part at any time without prior notice.


The Investor/s shall not assign any right or interest or delegate any obligation

arising herein.

The Investor/s shall take responsibility for all the transactions conducted by

using the Facility and will abide by the record of transactions generated by

the AMC. Further, the Investor/s confirms that such records generated by the

AMC shall be conclusive proof and shall be binding for all purposes and may

be used as evidence in any proceedings and that the investor(s)

unconditionally waives all objections in this behalf.



unequivocally be bound by these Terms and Conditions. The Investor agrees

that all calls received shall be eligible for applicable NAV subject to


through Easy Call Facility on or before the uniform cut off time.

Requests like change in bank mandate, change of nomination, change in

mode of holding, change of address or such other requests as the AMC may

decide from time to time will not be permitted using the Easy Call facility.


Directors, employees, representatives and service providers of the AMC, Axis

Mutual Fund and Trustees (indemnified parties) from and against all actions,

claims, demands, liabilities, obligations, losses, damages, costs and expenses

of whatever nature (whether actual or contingent) directly or indirectly

suffered or incurred, by the indemnified parties whatsoever arising from or in

connection with the Facility. The Investor/s shall not hold the AMC liable and

shall keep it indemnified for the following:



2) For any loss or damage incurred or suffered by the Investor/s due to any

error, defect, failure or interruption in the provision of the Facility.


4) For any breach or non-compliance by the Investor/s of the rules/terms

and conditions stated in this Document.

5) For accepting instructions given by any one of the Investor/s in case of

joint account/s having mode of operations as ““Anyone or survivor”.

6) For not carrying out any such instructions where the AMC has reason to

believe (which decision of the AMC the Investor/s shall not question or

dispute) that the instructions given are not genuine or are otherwise

improper, unclear, vague or raise a doubt.

7) For carrying out a transaction after such reasonable verification as the

AMC may deem fit regarding the identity of the Investor/s

MISCELLANEOUS:


introduced without any charges being levied; in case charges are to be

levied on a future date he agrees to pay such charges and

nonpayment in such an event can lead to termination of these services.









EASY SMS FACILITY


completed by the investor to avail this facility). For details of the registration

process, please contact our Investor Service Centres/website of the AMC.

All individual investors applying on “Sole” or “Joint (Anyone or Survivor)” basis

in their own capacity shall be eligible to avail the facility for permitted

transactions i.e. for lump sum purchase, redemption and switch transactions

on the below mentioned terms and conditions: “Terms and Conditions”

mean the terms and conditions set out below by which the Facility shall be

used/availed by the Investors and shall include all modifications and

supplements made by AMC thereto from time to time.

Initial Investment has to be through the physical mode wherein the Investor

has to sign a one time debit mandate for bank accounts pertaining to

designated banks with which the AMC may have an arrangement. This

facility is extended to the bank with which the Fund would have an

arrangement from time to time. Transaction amount may be restricted by

the AMC from time to time in line with prudent risk management

requirements and to protect the overall interest of the Investors. Investor will

be allowed transactions over SMS after 30 days from the date of submission

of one time mandate. Investor will not be permitted to avail the facility for

Redemptions/Switch transactions if bank mandate is changed within last 15

days. AMC will have right to modify the procedure of transaction processing

without any prior intimation to the Investor.






This facility can be availed only through the registered mobile number of the

Investor.

It is clarified that the Facility is only with a view to accommodate /facilitate

the Investors and offered at the sole discretion of the AMC. The AMC is not

bound and/or obliged in any way to give access to Facility to Investors. The

Investors shall check his/her account records carefully and promptly. If the

Investors believe that there has been a mistake in any transaction using the

Facility, or that unauthorized transaction has been effected, the Investors

shall notify the AMC immediately. If the Investors defaults in intimating the

discrepancies in the statement within a period of fifteen days of receipt of

the statements, he waives all his rights to raise the same in favour of the

AMC, unless the discrepancy /error is apparent on the face of it. By opting

for the facility the Investors hereby irrevocably authorizes and instructs the

AMC to act as his /her agent and to do all such acts as AMC may find

necessary to provide the Facility.





Investor for an oral or written confirmation of any transaction request using

the Facility and/or any additional information regarding the Account of the


Investor. The Investor agrees and confirms that the AMC may at its sole

discretion suspend the Facility in whole or in part at any time without prior

notice. The Investor shall not assign any right or interest or delegate any

obligation arising herein. The Investor shall take responsibility for all the

transactions conducted by using the Facility and will abide by the record of

transactions generated by the AMC. Further, the Investor confirms that such

records generated by the AMC shall be conclusive proof and binding for all

purposes and may be used as evidence in any proceedings and

unconditionally waives all objections in this behalf.

The Investor agrees that use of the Facility will be deemed acceptance of

the Terms and Conditions and the Investor will unequivocally be bound by

these Terms and Conditions. The Investor agrees that all transactions

received shall be eligible for applicable NAV subject to necessary formalities

to be complied by the AMC in case of transaction through the facility on or

before the uniform cut off time.

Requests like change in bank mandate, change of nomination, change in

mode of holding, change of address or such other requests as the AMC may

decide from time to time will not be permitted using the facility.

Investors should SMS HELP PURCHASE/REDEMPTION/SWITCH to 9212010033 in

order to avail the facility post registration. The procedure for availing the

facility will be communicated to the investor. Alternatively, the investor can

also get in touch with the Investor Service Centres of the AMC.

Karvy, Registrar & Transfer Agents to Axis Mutual Fund having its office at

Unit: Axis Mutual Fund, Karvy Selenium, Tower B, Plot number 31 & 32,

Financial District, Gachibowli, Hyderabad - 500008 will be the official point of

acceptance for such transactions received for Axis Mutual Fund schemes.



Trustees (indemnified parties) from and against all actions, claims, demands,

liabilities, obligations, losses, damages, costs and expenses of whatever

nature (whether actual or contingent) directly or indirectly suffered or

incurred, against the indemnified parties whatsoever arising from or in

connection with the Easy Call Facility. The Investor/s shall not hold the AMC

liable and shall keep it indemnified for the following:

1. For any transaction using the Facilities carried out in good faith by the


2. For any loss or damage incurred or suffered by the Investor/s due to any

error, defect, failure or interruption in the provision of the Facility.

3. For any negligence / mistake or misconduct by the Investor/s.

4. For any breach or non-compliance by the Investor/s of the rules/terms

and conditions stated herein.

5. For accepting instructions given by any one of the Investor/s in case of

joint account/s having mode of operations as “anyone or survivor”.

6. For not carrying out any such instructions where the AMC has reason to

believe (which decision of the AMC the Investor/s shall not question or

dispute) that the instructions given are not genuine or are otherwise

improper, unclear, vague or raise a doubt.

7. For carrying out a transaction after such reasonable verification as the

AMC may deem fit regarding the identity of the Investor/s

MISCELLANEOUS:



introduced without any charges being levied; in case charges are to be

levied on a future date he agrees to pay such charges and

nonpayment in such an event can lead to termination of these services.








DIVIDEND SWEEP OPTION (DSO)

The terms and conditions of Dividend Sweep Option (DSO) are as follows:


eligible scheme(s) [hereinafter referred to as "Source Scheme(s)"] of Axis

Mutual Fund can opt to automatically invest the dividend (as reduced

by the amount of applicable statutory levy) declared by the eligible

Source Scheme(s) into other eligible Scheme(s) [hereinafter referred to

as "Target Scheme(s)"] of Axis Mutual Fund.

2) The facility is available under all the open ended schemes of Axis Mutual

Fund except Exchange Traded Funds (ETFs).

3) DSO facility is available to unit holder(s) only under the Dividend Plan /

Option of the Source Scheme(s). However, the DSO facility will not be

available to unit holder(s) under the Daily Dividend Option in the Source

Scheme(s). Unit holder’s enrolment under the DSO facility will

automatically override any previous instructions for 'Dividend Payout' or

'Dividend Reinvestment' facility in the Source Scheme.

4) The enrolment for DSO facility should be for all units under the respective

Dividend Plan / Option of the Source Scheme. Instructions for part

Dividend Transfer and part Dividend Payout / Reinvestment will not be

accepted. The dividend amount will be invested in the Target Scheme

under the same folio. Accordingly, the unit holder(s) details and mode of

holding in the Target Scheme will be same as in the Source Scheme.




applicable statutory levy and deductions) in the Source scheme (subject

to minimum of Rs. 1,000/-) will be automatically invested into the Target

Scheme, as opted by the unit holder, on the immediate next Business

Day after the Record Date at the applicable NAV of the Target Scheme,

subject to applicable load as specified under paragraph 9 below and

accordingly equivalent units will be allotted in the Target Scheme,

subject to the terms and conditions of the respective Target Scheme.


respective Target Scheme's Scheme Information Document (SID) will not

be applicable under DSO. E.g. the minimum application amount for new

investors in Axis Bluechip Fund - Growth Plan is 5,000/-. However in case

of DSO, a Unit Holder can avail of the facility irrespective of the amount

of dividend (subject to a minimum of 1,000/-).



dividend sweep is being less than eligible amount, then the dividend will

be re-invested in source scheme/ payout as per the existing option.

9) Load Structure:











The Trustee/AMC reserves the right to change the load structure under

the DSO Facility at any time in future on a prospective basis.

10) The Account Statement will be issued by mail or by email (if opted by the

unit holder) to the unit holder as per regulations. In case of specific

request received from unitholders, the Mutual Fund shall endeavour to

provide the account statement to the unitholders after every transaction

of Dividend Transfer.




should be completed in English in Block Letters only. The DSO Enrolment

Form complete in all aspects should be submitted at any of the Investor

Services centre (ISCs) of Axis Mutual Fund.

12) The request for enrolment for DSO must be submitted at least 10 days

prior to the Record Date for the dividend. In case of the condition not

being met, the enrolment would be considered valid from the



enrolment under DSO and the next Record Date for dividend is not less

than 10 days.

13) Unitholder(s) are advised to read the SID of Target Scheme(s) carefully

before investing. The SID / KIM of the Scheme(s) are available with the

ISCs of Axis Mutual Fund, brokers / distributors and also displayed on the

Axis Mutual Fund website i.e. – www.axismf.com

14) Unit holders will have the right to discontinue the DSO facility at any time

by sending a written request to the ISC. Notice of such discontinuance

should be received at least 10 days prior to the Dividend Record Date.

On receipt of such request, the DSO facility will be terminated. At the

time of discontinuation of DSO facility, the Unit holders should indicate

their choice of option i.e. dividend reinvestment or dividend payout. In

the event the Unitholder does not indicate his choice of dividend option,

the dividend, if any, will be reinvested (compulsory payout if dividend

reinvestment option is not available) in the Source Scheme. Once the

request for DSO is registered, then it shall remain in force unless it is

terminated as aforesaid.



The Trustee reserves the right to change/ modify the terms and conditions of

the DSO at a later date on a prospective basis.

TRIGGER FACILITY

Trigger is an event on the happening of which, the Fund will automatically

redeem / switch the units, as the case may be, on behalf of the investor, on

the date of happening of the event. Accordingly, a trigger will activate a

transaction when the event selected for has reached the trigger point. All

redemptions/ switches etc. linked to triggers will always be at the applicable

NAV based prices of the day on which the event occurs. The investors

opting for the Trigger facility will also have right to redeem/ switch their

holdings before happening of the trigger event. Please note that the trigger


is an additional facility provided to the unit holders to save time on

completing the redemption/ switch formalities on happening of a particular

predetermined event. Trigger is not an assurance on part of AMC / Fund to

the investor that he / she will receive a particular amount of money /

appreciation and / or a percentage on redemption or will get a particular

amount of capital appreciation or will minimise the loss to

investor to a particular amount or percentage.





Fund Axis Treasury Advantage Fund



Fund Axis Banking & PSU Debt Fund














Axis Gilt Fund




Fund





@ Investors who have completed the lock-in period specified in the Scheme

Information Document may apply for trigger facility.

2. Under the Trigger facility, investors will have the following options on the

date of happening of the event:




The trigger facility is available only for the options specified above and is not

available for any ad-hoc amount that the investor may specify.

3. The investors can select any one of the following trigger option(s) under

various plans / options of the Scheme:








ii. Option to redeem / switch out in the event Nifty Index reaches or goes

below a specified level, at the end of any business day.


reaches a particular level or goes below that at the close of any business

day, then the amount specified shall either be redeemed / switched to

the selected transferee scheme.

iii. Option to redeem / switch out in the event NAV reaches or exceeds a

specified level.







which, if the scheme NAV appreciates, then the amount specified will





which, if the scheme NAV appreciates or depreciates, then the amount

specified will be redeemed / switched to the selected transferee

scheme.




which, if the scheme NAV depreciates, then the amount specified will be


Notes:

A. For point no. iii above - The NAV level (in INR terms) specified by the Unit

holder must be in multiples of 5 paisa e.g. INR 10.50, INR.10.55, INR.10.60

etc.

B. For points no. iv, v and vi above - The NAV percentage level specified by

the Unit holder must be in multiples of 1%.

Terms & Conditions:


amount will be redeemed /switched from the transferor scheme at the

closing NAV of the day i.e. the trigger date.


Scheme Information Document of the Transferor/ Transferee schemes.

3. Once a trigger is activated and a transaction is processed, the same will

not be reversed and it will be final and binding upon the Unit holder.

4. Trigger once activated would expire and would not be executed again.

5. Trigger facility shall be applicable subject to payment of exit load in the

transferor scheme(s), if any.

6. The specified trigger will fail, if the investor(s) do not maintain sufficient

balance in the scheme at the time of registration of trigger and on the

trigger date.


7. Trigger will not get executed in case units are pledged or where lien is

marked on units, at the time of receipt of request for trigger.


linked to Nifty.

9. In case of partial or full switch/redemption, any trigger already registered

for a particular transaction will be deactivated.

10. "Minimum Application Amount/ Minimum Additional Investment Amount"

specified in the Scheme Information Document of the transferee

schemes will not be applicable for Switches based on specified triggers

limits being achieved.

11. NAV for switch /redemption: NAV of the trigger day will be considered

for the purpose of Redemption/ switch. In case of non-business day in

debt schemes but business day in case of equity schemes, switch-out

from equity schemes will be processed on the trigger day and switch-in

to Debt/ Liquid schemes will be processed on the next business day.

12. In case, if no plan / option is specified for switch transaction under trigger

option, default plan / option, as specified in respective Scheme

Information Document will be considered.

13. In case of any ambiguity or where the investor fails to specify whether

the redemption / switch to be made is full or to the extent of capital

appreciation or to the extent of Principal amount only, the transaction

will not be processed.


subject to an advance notice of 10 (Ten) working days. Investors can

deactivate the trigger facility by sending a written request to the Investor

Service Centers.


Subject to the Investor fulfilling certain terms and conditions stipulated by the

AMC as under, Axis AMC, Axis Mutual Fund or any other agent or

representative of the AMC, Mutual Fund, the Registrar & Transfer Agents may

accept transactions through any electronic mode including fax/web/

electronic transactions as permitted by SEBI or other regulatory authorities :

a) The acceptance of the fax/web/electronic transactions will be solely at

the risk of the transmitter of the fax/web/ electronic transactions and the

Recipient shall not in any way be liable or responsible for any loss,

damage caused to the transmitter directly or indirectly, as a result of the

transmitter sending or purporting to send such transactions.

b) The recipient will also not be liable in the case where the transaction sent

or purported to be sent is not processed on account of the fact that it

was not received by the Recipient.


fax/web/electronic transmission is for the transmitter’s convenience and

the Recipient is not obliged or bound to act on the same.

d) The transmitter acknowledges that fax/web/electronic transactions is not

a secure means of giving instructions/ transactions requests and that the

transmitter is aware of the risks involved including those arising out of

such transmission.


fax/web/ electronic transmission which the recipient believes in good

faith to be given by the transmitter and the recipient shall be entitled to

treat any such fax/web/ electronic transaction as if the same was given

to the recipient under the transmitter’s original signature.

f) The transmitter agrees that security procedures adopted by the recipient

may include signature verification, telephone call backs which may be

recorded by tape recording device and the transmitter consents to such

recording and agrees to cooperate with the recipient to enable


confirmation of such fax/web/ electronic transaction requests.

g) The transmitter accepts that the fax/web/ electronic transactions, where

applicable shall not be considered until time stamped as a valid

transaction request in the Scheme in line with the Regulations.

In consideration of the recipient from time to time accepting and at its sole

discretion acting on any fax/ web/electronic transaction request received /

purporting to be received from the transmitter, the transmitter agrees to

indemnify and keep indemnified the AMC, Directors, employees, agents,

representatives of the AMC, Axis Mutual Fund and Trustee from and against

all actions, claims, demands, liabilities, obligations, losses, damages, costs

and expenses of whatever nature (whether actual or contingent) directly or

indirectly suffered or incurred, sustained by or threatened against the

indemnified parties whatsoever arising from or in connection with or any way

relating to the indemnified parties in good faith accepting and acting on

fax/web/ electronic transaction requests including relying upon such fax/

electronic transaction requests purporting to come from the Transmitter

even though it may not come from the Transmitter.

The AMC reserves the right to discontinue the facility (ies) at any point of

time.

Distributors offer goal based financial planning (facility) to their clients. In

order to encourage Investors to plan for their investments based on life goals

(e.g. child’s education, retirement, wealth creation, etc), the Asset

Management Company would assist in providing such facilities.

Since such facilities are aimed at helping Investors achieving their financial

goals, certain features offered by Axis Mutual Fund may not be

offered/available under such goal based investment folios. Under a folio, no

additional purchase, switch and part redemption would be allowed.

Requests for changes in goals/goal details will not be accepted. Under

normal circumstances, there is no restriction on the right of the investor to

transact directly with the mutual fund.

Multiple goals based investments can be applied for under one application

form and a single cheque in the name of ‘Axis Mutual Fund First Investor

name’ or ‘Axis Mutual Fund Permanent Account Number’ would have to be

provided by the Investor. Transaction charge would be charged at

application form level.


direct investor with the mutual fund, the investment will cease to be a part of

the facility. Investors may note that investments under such facilities would

be based on advice from the distributor /Financial advisor and the Asset

Management Company acts purely in capacity as a facilitator for such

transactions. The distributor(s) may choose to modify/change or discontinue

the above stated facility. In such a case the investors may continue their

investment with the AMC/any other distributor.

For further details/clarifications investors may contact the distributor(s) or the

ISCs of the AMC.




Accounts

Statements


confirmation specifying the number of units allotted by way of e-mail


and/or SMS within 5 business days from the date of receipt of transaction

request/allotment will be sent to the Unit Holders registered e-mail address

and/or mobile number.

In case of Unit Holders holding units in the dematerialized mode, the Fund

will not send the account statement to the Unit Holders. The statement

provided by the Depository Participant will be equivalent to the account

statement.

For those Unit holders who have provided an e-mail address, the AMC will

send the account statement by e-mail.

Unit holders will be required to download and print the documents after

receiving e-mail from the Mutual Fund. Should the Unit holder experience

any difficulty in accessing the electronically delivered documents, the

Unit holder shall promptly advise the Mutual Fund to enable the Mutual

Fund to make the delivery through alternate means. It is deemed that the

Unit holder is aware of all security risks including possible third party

interception of the documents and contents of the documents becoming

known to third parties.


writing/calling the AMC/ISC/Registrar. In case of specific request received

from the Unit Holders, the AMC/Fund will provide the Account Statement

to the Investors within 5 business days from the receipt of such request.

The AMC shall issue Unit certificates within 5 business days from the date

of receipt of request where the applicant so desires.


CAS is an account statement detailing all the transactions and holding at

the end of the month including transaction charges paid to the distributor,

across all schemes of all mutual funds. CAS issued to investors shall also

provide the total purchase value/cost of investment in each scheme.

Further, CAS issued for the half-year (September/ March) shall also provide


distributors (in absolute terms) during the half-year period against the

concerned investor’s total investments in each scheme.

b. The scheme’s average Total Expense Ratio (in percentage terms) along

with the break up between Investment and Advisory fees, Commission

paid to the distributor and Other expenses for the period for each

scheme’s applicable plan (regular or direct or both) where the

concerned investor has actually invested in.

The word transaction will include purchase, redemption, switch, dividend

payout, dividend reinvestment, systematic investment plan, systematic

withdrawal plan and systematic transfer plan.




The AMC shall ensure that a CAS for every half yearly (September/ March) is

issued, on or before tenth day of succeeding month, detailing holding at the

end of the six month, across all schemes of all mutual funds, to all such

investors in whose folios no transaction has taken place during that period.


Permanent Account Number (PAN) for the purposes of sending CAS. In the

event the account has more than one registered holder, the first named Unit

Holder shall receive the Account Statement.


The AMC will send statement of accounts by e-mail where the Investor has

provided the e-mail id. Additionally, the AMC may at its discretion send

Account Statements individually to the investors.


SEBI vide its circular no. CIR/MRD/DP/31/2014 dated November 12, 2014, in

order to enable a single consolidated view of all the investments of an

investor in Mutual Fund and securities held in demat form with Depositories,

has required Depositories to generate and dispatch a single CAS for

investors having mutual fund investments and holding demat accounts.

In view of the aforesaid requirement, for investors who hold demat account,

for transactions in the schemes of Axis Mutual Fund on or after February 1,

2015, a CAS, based on PAN of the holders, will be sent by Depositories to

investors holding demat account, for each calendar month within 10th day

of the succeeding month to the investors in whose folios transactions have

taken place during that month.

CAS will be sent by Depositories every half yearly (September/March), on or

before 10th day of succeeding month, detailing holding at the end of the six

month, to all such investors in whose folios and demat accounts there have

been no transactions during that period.




systematic investment plan, systematic withdrawal plan, systematic transfer

plan (including transaction charges paid to the distributor) and transaction

in dematerialized securities across demat accounts of the investors and

holding at the end of the month.

In case of demat accounts with nil balance and no transactions in securities

and in mutual fund folios, the depository shall send account statement in

terms of regulations applicable to the depositories. Investors whose folio(s)/

demat account(s) are not updated with PAN shall not receive CAS.

Consolidation of account statement is done on the basis of PAN. Investors

are therefore requested to ensure that their folio(s)/ demat account(s) are

updated with PAN. In case of multiple holding, it shall be PAN of the first

holder and pattern of holding.

For Unit Holders who have provided an e-mail address to the Mutual Fund or

in KYC records, the CAS is sent by e-mail. However, where an investor does

not wish to receive CAS through email, option is given to the investor to

receive the CAS in physical form at the address registered in the Depository

system.


option to indicate their negative consent. Such investors may contact the

depositories to opt out. Investors who do not hold demat account continue

to receive CAS sent by RTA/AMC, based on the PAN, covering transactions

across all mutual funds as per the current practice.



default depository.



AMC/ the Fund with the requirement under Regulation 36(4) of SEBI (Mutual

Funds) Regulations. However, the AMC reserves the right to furnish the

account statement in addition to the CAS, if deemed fit in the interest of

investor(s).

Investors whose folio(s)/demat account(s) are not updated with PAN shall

not receive CAS. Investors are therefore requested to ensure that their

folio(s)/demat account(s) are updated with PAN.

For folios not included in the CAS (due to non-availability of PAN), the AMC

shall issue monthly account statement to such Unit holder(s), for any

financial transaction undertaken during the month on or before 10th of

succeeding month by mail or email.


AMC shall issue an account statement detailing holding across all schemes

at the end of every six months (i.e. September/March), on or before 10th day

of succeeding month, to all such Unit holders in whose folios no transaction

has taken place during that period shall be sent by mail/e-mail.

OPTION TO HOLD UNITS IN DEMATERIALIZED (DEMAT) FORM

Investors shall have an option to receive allotment of Mutual Fund units in

their demat account while subscribing to the Units of the Scheme in terms of

the guidelines/ procedural requirements as laid by the Depositories


Investors desirous of having the Units of the Scheme in dematerialized form

should contact the ISCs of the AMC/Registrar.


statement issued by the Depository Participant would be deemed adequate

compliance with the requirements in respect of dispatch of statements of

account.

In case investors desire to convert their existing physical units (represented

by statement of account) into dematerialized form or vice versa, the request

for conversion of units held in physical form into Demat (electronic) form or

vice versa should be submitted along with a Demat/Remat Request Form to

their Depository Participants. In case the units are desired to be held by

investor in dematerialized form, the KYC performed by Depository

Participant shall be considered compliance of the applicable SEBI norms.

The demat option is provided to all schemes and options of Axis Mutual Fund

except for all daily and weekly dividend options under all debt and liquid

schemes. Further, demat option shall also be available for SIP transactions.

Units will be allotted based on the applicable NAV as per Scheme

Information Document and will be credited to investors Demat Account on

weekly basis on realization of funds.




transferees who are capable of holding units and having a Demat Account.

The delivery instructions for transfer of units will have to be lodged with the

Depository Participant in requisite form as may be required from time to time


and transfer will be affected in accordance with such rules / regulations as

may be in force governing transfer of securities in dematerialized mode.

For details, Investors may contact any of the Investor Service Centres of the

AMC.

Dividend The Dividend warrants/cheque/demand draft shall be dispatched to the

Unit holders within 30 days of the date of declaration of the Dividend.

The Dividend proceeds will be paid by way of EFT / NEFT / RTGS / Direct


available with the Mutual Fund for the Investor.

In case of specific request for Dividend by warrants/cheques/demand drafts

or unavailability of sufficient details with the Mutual Fund, the Dividend will

be paid by warrant/cheques/demand drafts and payments will be made in

favour of the Unit holder (registered holder of the Units or, if there are more

than one registered holder, only to the first registered holder) with bank

account number furnished to the Mutual Fund (please note that it is

mandatory for the Unit holders to provide the Bank account details as per

the directives of SEBI).


A Transaction Slip can be used by the Unit Holder to request for Redemption.

The requisite details should be entered in the Transaction Slip and submitted

at an ISC/Official Point of Acceptance. Transaction Slips can be obtained

from any of the ISCs/Official Points of Acceptance. Investor can also place

redemption through Telephone using Easy Call/Easy SMS facility or may

redeem Online through the AMC’s website subject to the terms and

conditions as maybe stipulated from time to time.



Redemption proceeds will be paid to the investor through Real Time Gross

Settlement (RTGS), NEFT, Direct Credit, Cheque or Demand Draft.

a) If investor has provided IFSC code in the application form, by default

redemption proceeds shall be credited to Investor’s account through

RTGS/NEFT.

b) If Investor has neither provided IFSC code nor the NEFT code but have a

bank account with Banks with whom the Fund has an arrangement for

Direct Credit from time to time, the proceeds will be paid through direct

credit.



drafts, marked "Account Payee only" and drawn in the name of the sole

holder / first-named holder (as determined by the records of the

Registrar).

The bank name and bank account number, as specified in the Registrar's

records, will be mentioned in the cheque/demand draft. The cheque will

be payable at par at all bank branch of specific cities. If the Unit Holder

resides in any other city, he will be paid by a demand draft payable at

the city of his residence and the demand draft charges shall be borne

by the AMC (please refer SAI for details).

The redemption proceeds will be sent by courier or (if the addressee city

is not serviced by the courier) by registered post/UCP. The dispatch for

the purpose of delivery through the courier / postal department, as the


case may be, shall be treated as delivery to the investor. The AMC /

Registrar are not responsible for any delayed delivery or non-delivery or

any consequences thereof, if the dispatch has been made correctly as

stated in this paragraph.

The AMC reserves the right to change the sequence of payment from

(a) to (c) without any prior notice

For Unit holders who have given specific request for Cheque/Demand Draft

Redemption proceeds will be paid by cheque/demand drafts and

payments will be made in favour of the Unit holder with bank account

number furnished to the Mutual Fund

(Please note that it is mandatory for the Unit holders to provide the Bank

account details as per the directives of SEBI). Redemption cheques will be

sent to the Unit holder’s address.

The Trustee, at its discretion at a later date, may choose to alter or add other

modes of payment.

2. Non-Resident Investors PIO/OCI

For NRIs, Redemption proceeds will be remitted depending upon the source

of investment as follows:


When Units have been purchased through remittance in foreign exchange

from abroad or by cheque / draft issued from proceeds of the Unit Holder's

FCNR deposit or from funds held in the Unit Holder's Non Resident (External)

account kept in India, the proceeds can also be sent to his Indian address

for crediting to his NRE / FCNR / non-resident (Ordinary) account, if desired

by the Unit Holder.


When Units have been purchased from funds held in the Unit Holder's non-

resident (Ordinary) account, the proceeds will be sent to the Unit Holder's

Indian address for crediting to the Unit Holder's non-resident (Ordinary)

account.

(iii) FPIs


remittance of net sale / maturity proceeds (after payment of taxes) or credit

the amount to the Foreign Currency account or Non-resident Rupee

account of the FPIs maintained in accordance with the approval granted to

it by the RBI.

The Fund will not be liable for any delays or for any loss on account of any

exchange fluctuations, while converting the rupee amount in foreign

exchange in the case of transactions with NRIs/FPIs. The Fund may make

other arrangements for effecting payment of redemption proceeds in

future.



reduced by the number of Units Redeemed. Units once redeemed will be

extinguished and will not be re-issued.



requisite details are not provided by investors/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.



online transactions on the Internet, as may be decided by the AMC from

time to time. The alternative mechanism may also include electronic means

of communication such as redeeming Units online through the AMC Website

or any other website etc. The alternative mechanisms would be applicable

to only those investors who opt for the same in writing and/or subject to

investor fulfilling such conditions as AMC may specify from time to time.



redemption/ switch out request, then the AMC/ Registrar reserves the right to

process the redemption only on the basis of supporting documents

confirming the identity of the investors. List of such documents would be

notified by AMC from time to time.


must provide a bank name, bank account number, branch address, and

account type in the Application Form.


As per circular no. MFD/CIR/9/120/2000, dated November 24, 2000 issued by

SEBI, the unclaimed Redemption and Dividend amounts shall be deployed

by the Fund in money market instruments and such other

instruments/securities as maybe permitted from time to time. The investment

management fee charged by the AMC for managing such unclaimed

amounts shall not exceed 50 basis points. The circular also specifies that

investors who claim these amounts during a period of three years from the

due date shall be paid at the prevailing NAV. Thus, after a period of three

years, this amount can be transferred to a pool account and the investors

can claim the said amounts at the NAV prevailing at the end of the third

year. In terms of the circular, the onus is on the AMC to make a continuous

effort to remind investors through letters to take their unclaimed amounts.

The details of such unclaimed amounts shall be disclosed in the annual

report sent to the Unit Holders.

Further, according to circular no. SEBI/HO/IMD/DF2/CIR/P/2016/37 dated

February 25, 2016 the unclaimed Redemption and dividend amounts may

be deployed in separate plan of Liquid scheme/Money market mutual fund

scheme floated by Mutual Funds specifically for deployment of the

unclaimed Redemption and dividend amounts.

Delay in payment

of Redemption /

Repurchase

proceeds



Redemption / Repurchase proceeds are not made within 10 Business Days

of the date of Redemption / Repurchase. However, the AMC will not be

liable to pay any interest or compensation or any amount otherwise, in case

the AMC / Trustee is required to obtain from the Investor / Unit holders

verification of identity or such other details relating to Subscription for Units

under any applicable law or as may be requested by a Regulatory Agency

or any government authority, which may result in delay in processing the

application.

Facility to transact AMC has entered into an Agreement with MF Utilities India Private Ltd.


in units of the

Schemes through

MF Utility portal &

MFUI Points of

Services pursuant to

appointment of MF

Utilities India Pvt.

Ltd.

(“MFUI”), a “Category II – Registrar to an Issue” under SEBI (Registrars to an

Issue and Share Transfer Agents) Regulations, 1993, for usage of MF Utility

(“MFU”) - a shared services initiative of various Asset Management

Companies, which acts as a transaction aggregation portal for transacting

in multiple Schemes of various Mutual Funds with a single form and a single

payment instrument.

Accordingly, investors are requested to note that in addition to the existing

Official Points of Acceptance for accepting transactions in the units of the

schemes of the Axis Mutual Fund as disclosed in the SID,

www.mfuonline.com i.e. online transaction portal of MFU and the authorized

Points of Service (“POS”) designated by MUFI shall also be the OPA with

effect from the dates as may be specified by MFUI on its website/AMC by

issuance of necessary communication.

All financial and non-financial transactions pertaining to Schemes of Axis

Mutual Fund can be done through MFU either electronically on

www.mfuonline.com or physically through the POS of MFUI with effect from

the respective dates as published on MFUI website against the respective

POS locations. The list of POS of MFUI is published on the website of MFUI at

www.mfuindia.com. This will be updated from time to time.

The uniform cut-off time as prescribed under SEBI (Mutual Funds) Regulations,

1996, circulars issued by SEBI and as mentioned in the SID / KIM of the

Scheme shall be applicable for applications received on the portal of MFUI

i.e. www.mfuonline.com. However, investors should note that transactions on

the MFUI portal shall be subject to the terms & conditions (including those

relating to eligibility of investors) as stipulated by MFUI / Axis Mutual Fund /

the AMC from time to time and in accordance to the laws applicable.



multiple Schemes of various Mutual Funds through MFU and to map existing

folios, if any. Investors can create a CAN by submitting the CAN Registration

Form (CRF) and necessary documents at the MFUI POS. The AMC and / or its

Registrar and Transfer Agent (RTA) shall provide necessary details to MFUI as

may be needed for providing the required services to investors / distributors

through MFU.


Net Asset Value


unit of the scheme

on a particular

day. You can

ascertain the value

of your investments

by multiplying the

NAV with your unit

balance.

NAVs will be calculated and disclosed on all the Business Days. The AMC shall

update the NAVs on the website of the AMC (www.axismf.com) and of the

Association of Mutual Funds in India - AMFI (www.amfiindia.com) before

11.00 p.m. on every Business Day. If the NAVs are not available before the

commencement of Business Hours on the following day due to any reason,

the Mutual Fund shall issue a press release giving reasons and explaining

when the Mutual Fund would be able to publish the NAV.

Information regarding NAV can be obtained by the Unit holders / Investors

by calling or visiting the nearest ISC.

Monthly and Half

yearly Disclosures:


Results

This is a list of

The AMC will disclose the portfolio of the Scheme (alongwith ISIN) as on the

last day of the month / half year on the website of the Mutual Fund and AMFI

within 10 days from the close of each month/ half year (i.e. 31st March and

30th September) respectively in a user-friendly and downloadable

spreadsheet format. Further, AMC shall publish an advertisement in an all

India edition of one national English daily newspaper and one Hindi






securities where the

corpus of the

scheme is currently

invested. The

market value of

these investments is

also stated in

portfolio

disclosures.

newspaper, every half year, disclosing the hosting of the half-yearly

statement of its schemes’ portfolio on the website of the Mutual Fund and

AMFI and the modes through which unitholder(s) can submit a request for a

physical or electronic copy of the statement of scheme portfolio.

The AMC will also provide a dashboard, in a comparable, downloadable

(spreadsheet) and machine readable format, providing performance and

key disclosures like Scheme’s AUM, investment objective, expense ratios,

portfolio details, scheme’s past performance etc. on website.

Half Yearly Results

The Mutual Fund shall within one month from the close of each half year, that

is on 31st March and on 30th September, host a soft copy of its unaudited

financial results on the website of the AMC and AMFI.

The mutual fund shall publish an advertisement disclosing the hosting of such

financial results on their website, in atleast one English daily newspaper

having nationwide circulation and in a newspaper having wide circulation

published in the language of the region where the Head Office of the

Mutual Fund is situated.

The unaudited financial results will also be displayed on the website of the

AMC and AMFI.

Annual Report The Scheme wise annual report or an abridged summary thereof shall be

mailed (emailed, where e-mail id is provided unless otherwise required) to all

Unit holders not later than four months (or such other period as may be

specified by SEBI from time to time) from the date of closure of the relevant

accounting year (i.e. 31st March each year) and full annual report shall be

available for inspection at the Head Office of the Mutual Fund and a copy

shall be made available to the Unit holders on request on payment of

nominal fees, if any. Scheme wise annual report shall also be displayed on

the website of the Mutual Fund (www.axismf.com) and Association of Mutual

Funds in India (www.amfiindia.com).

Unitholders whose email addresses are not registered with the Mutual Fund

may ‘opt-in’ to receive a physical copy of the annual report or an abridged

summary thereof.

Further, AMC shall provide a physical copy of the abridged summary of the

Annual Report, without charging any cost, on a specific request received

from a unitholder.

AMC shall also publish an advertisement every year, in an all India edition of

one national English daily newspaper and in one Hindi newspaper, disclosing

the hosting of the scheme wise annual report on the website of the Mutual

Fund and AMFI and the modes through which a unitholder can submit a

request for a physical or electronic copy of the annual report or abridged

summary thereof.

Associate

Transactions

Please refer to Statement of Additional Information (SAI).

Taxation

Rates applicable

Resident

Investors

Non

Resident

Investors

Mutual Fund



for the FY 19-20.

The information is

provided for

general information

only. However, in

view of the

individual nature of

the implications,

each investor is

advised to consult

his or her own tax

advisors/authorised

dealers with

respect to the

specific amount of

tax and other

implications arising

out of his or her


schemes.

Tax on

Dividend

Nil Nil Dividend Distribution Tax (DDT):

Individual / HUF – 29.12%

(25%+12% Surcharge+4% Cess)

Domestic Company – 34.944%

(30%+12% Surcharge+4% Cess)

NRI – 29.12%

(25%+12% Surcharge+4% Cess

Capital Gains:

Capital Gains*:

Long Term

(Held for a

period of more

than 36

Months)

-Listed other

than equity

oriented

20% with

indexation

20% with

indexation

Nil

-Unlisted other

than equity

oriented

20% with

indexation

10%

(Indexation

benefit not

available)

Nil

Short Term 30%^ 30%^ Short Term

a. Axis Mutual Fund is a Mutual Fund registered with the Securities &

Exchange Board of India and hence the entire income of the Mutual

Fund will be exempt from income tax in accordance with the provisions

of Section 10(23D) of the Income-tax Act, 1961 (the Act).

b. On Income Distribution, if any, made by the Mutual Fund, additional

income-tax is payable under section 115R of the Act, in the case of its

schemes (other than equity-oriented funds and a money market mutual

fund or a liquid fund). The additional income-tax on distribution of

income to an individual / Hindu Undivided family (HUF) shall be payable

by the Mutual fund at the rate of 29.12% and at the rate of 34.944% on

distribution of income to any other investor.

c. For dividends declared after 1 October 2014, the mode of calculation of

distributed income u/s 115R has been modified which shall result in

higher effective rate of DDT.

d. Surcharge at the rate to be levied in case of individual /HUF unit holders

is as follow:

Total Income

Rate of

Surcharge

Exceeding 50 Lac but not

exceeding 1 Crores 10%

Exceeding 1 Crores but not


Exceeding 2 Crores but not


Exceeding 5 Crores 37%

^ Assuming investor falls in to highest tax bracket

For further details on taxation please refer to the clause on Taxation in the

SAI.



NAVs, Unit Holdings, Dividends, etc by calling the Investor line of the AMC at

"1800 221322" (toll-free number) and additional contact number

8108622211(Chargeable) from 8.00 am to 8.00 pm (Monday to Friday) and

9.00 am to 6.00 pm (on Saturday and Sunday) or 4325 5100 (at local call rate

for enquiring at AMC ISC’s) or email – [email protected]. The

service representatives may require personal information of the Investor for

verification of his / her identity in order to protect confidentiality of

information. The AMC will at all times endeavour to handle transactions

efficiently and to resolve any investor grievances promptly.


been appointed as the Investor Relations Officer and can be contacted at:

Address :

Axis House, 1st Floor, C-2, Wadia International Centre, Pandurang Budhkar

Marg, Worli, Mumbai – 400 025

Phone no.: 022 43254123

For any grievances with respect to transactions through BSE StAR and / or

NSE MFSS, the investors / Unit Holders should approach either the stock broker

or the investor grievance cell of the respective stock exchange.




Fund will value its investments according to the valuation norms, as specified in Schedule VIII of

the SEBI (MF) Regulations, or such norms as may be specified by SEBI from time to time.

The Net Assets Value (NAV) of the Units under the Scheme shall be calculated as shown below:

NAV (Rs.) =

Market or FairValue

of Scheme’s

Investments


AccruedIncome


and Provisions


The NAV shall be calculated up to four decimal places. However the AMC reserves the right to

declare the NAVs up to additional decimal places as it deems appropriate. Separate NAV will

be calculated and disclosed for each Option. The NAVs of the Growth Option and the

Dividend Option will be different after the declaration of the first Dividend.

NAVs will be calculated and disclosed on all the Business Days.





These expenses are incurred for the purpose of various activities related to the NFO like sales

and distribution fees paid marketing and advertising, Registrar & Transfer Agents expenses,

printing and stationary, bank charges etc.

In accordance with the provisions of SEBI circular no. SEBI/IMD/CIR No. 1/64057/06 dated April

04, 2006 and SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009, the NFO expenses has been

borne by the AMC/Sponsor.




Agents’ fee, marketing and selling costs etc. as given in the table below.

The AMC has estimated that upto 2.00% of the daily net assets of the Scheme will be charged

to the Scheme as expenses. For the actual current expenses being charged, the investor

should refer to the website of the AMC.

Expense Head % of daily

Net Assets


Trustee fees

Audit fees

Custodian fees

RTA fees

Marketing & selling expense incl. agent commission



Cost of providing account statements and dividend redemption cheques and

warrants

Costs of statutory advertisements


Brokerage & transaction cost over and above 12 bps and 5 bps for cash and

derivative market trades resp.

Goods & Service tax (GST) on expenses other than investment and advisory fees


Maximum total expense ratio (TER) permissible under Regulation 52(6)(c) Upto 2.00%

Additional expenses under Regulation 52(6A)(c)^ Upto 0.05%

Additional expenses for gross new inflows from specified cities under Regulation

52(6A)(b)

Upto 0.30%

^The AMC shall not charge additional expenses under Regulation 52(6A)(c) in case exit load is

not levied/ not applicable.




Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc.

and no commission for distribution of Units will be paid/ charged under Direct Plan.




Regulation 52(4) of SEBI (MF) Regulations are fungible in nature. Thus, there shall be no internal

sub-limits within the expense ratio for expense heads mentioned under Regulation 52(2) and (4)

respectively. Further, the additional expenses under Regulation 52(6A)(c) may be incurred

either towards investment & advisory fees and/or towards other expense heads as stated

above.



Regulations.

The recurring expenses of the Scheme (including the Investment Management and Advisory

Fees) shall be as per the limits prescribed under the SEBI (MF) Regulations. These are as follows:

Assets under management Slab (In Rs. crore) % of daily net assets






On the next Rs. 40,000 crores of the daily net assets Total expense ratio reduction of 0.05% for

every increase of Rs. 5,000 crores of daily

net assets or part thereof.


The total expenses of the Scheme including the investment management and advisory fee

shall not exceed the limit stated in Regulation 52(6) of the SEBI (MF) Regulations and

amendments thereto.


A. In addition to the limits as specified in Regulation 52(6) of SEBI (Mutual Funds) Regulations

1996 or the Total Recurring Expenses (Total Expense Limit) as specified above, the following

costs or expenses may be charged to the Scheme namely-




i. 30 per cent of gross new inflows in the Scheme, or

ii. 15 per cent of the average assets under management (year to date) of the Scheme,


Provided that if inflows from such cities is less than the higher of sub-clause (i) or sub- clause

(ii), such expenses on daily net assets of the Scheme shall be charged on proportionate

basis.







investors in terms of SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2018/137 dated October 22,

2018 and SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2019/42 dated March 25, 2019. For this

purpose inflows of amount upto Rs 2,00,000/- per transaction, by individual investors shall be

considered as inflows from “retail investor”.



(b) additional expenses, incurred towards different heads mentioned under Regulations 52(2)

and 52(4), not exceeding 0.05 per cent of daily net assets of the Scheme;

(c) GST payable on investment and advisory service fees (‘AMC fees’) charged by Axis Asset

Management Company Ltd.


trade and is included in the cost of investment shall not exceed 0.12 per cent in case of

cash market transactions and 0.05 per cent in case of derivatives transactions.

B. Within the Total Expense Limit chargeable to the Scheme, following will be charged to the

Scheme:

a) GST on other than investment and advisory fees, if any, (including on brokerage and

transaction costs on execution of trades) shall be borne by the Scheme;

b) Investor education and awareness initiative fees of at least 2 basis points on daily net assets

of Scheme.






atleast three working days prior to the effective date of the change. Investors can refer ‘Total

Expense Ratio of Mutual Fund Schemes’ section on https://www.axismf.com/total-expense-

ratio for Total Expense Ratio (TER) details.

Illustration of impact of expense ratio on scheme’s returns

For any scheme, NAV is computed on a daily basis factoring in all the assets as well as liabilities

of the Scheme (including expenses charged). Expenses charged to the Scheme bring down its

NAV and hence the investor's net returns on a corresponding basis.

Illustration:

Particulars Amount

(in Rs.)

No of

units

NAV per unit

(in Rs.)


Value of above investment as on March 31, 2017

(gross of all expenses) (B) 11,500 1,000 11.50


(assumed) (C) 200 0.20

Value of above investment as on March 31, 2017 (net

of all expenses) (D) = (B-C) 11,300 1,000 11.30


((B/A)-1) 15.0%

Returns (%) (net of all applicable expenses) (F) =

((D/A)-1) 13.0%

Please Note:


charged to the Scheme and should not be construed as providing any kind of investment

advice or guarantee of returns on investments.



under the Scheme.




Calculations are based on assumed NAVs, and actual returns on your investment may be

more, or less.

Any tax impact has not been considered in the above example, in view of the individual

nature of the tax implications. Each investor is advised to consult his or her own financial

advisor.

D. LOAD STRUCTURE



marketing and selling expenses. Load amounts are variable and are subject to change from

time to time. For the current applicable structure, investors may refer to the website of the AMC

(www.axismf.com) or may call at 1800 221322 (toll-free number) and additional contact

number 8108622211(Chargeable) from 8.00 am to 8.00 pm (Monday to Friday) and 9.00 am to

6.00 pm (on Saturday and Sunday) or can contact his distributor.

SEBI vide its circular no. SEBI/IMD/CIR No. 4/168230/09 dated June 30, 2009 has decided that

there shall be no entry Load for all Mutual Fund Schemes.



Exit Load Nil

Units issued on reinvestment of Dividends shall not be subject to Load. No load shall be levied

on switches between options and sub-options of the Scheme.

The above mentioned load structure shall be equally applicable to the special products such

as SIP, STP, SWP, switches, etc. offered by the AMC.

No exit load will be charged for switch between Regular Plan and Direct Plan where

transaction is not routed through Distributor in Regular Plan. If the transaction in Regular Plan is

routed through Distributor, then applicable exit load will be charged for switch from Regular

Plan to Direct Plan.

Exit load charged to the investors will be credited back to the Scheme net of Goods & Service

Tax.


investing. For any change in Load structure AMC will issue an addendum and display it on the

website/ Investor Service Centres.

Under the Scheme, the AMC/ Trustee reserves the right to change / modify the Load structure if

it so deems fit in the interest of smooth and efficient functioning of the Mutual Fund. The

AMC/ Trustee reserves the right to introduce / modify the Load depending upon the

circumstances prevailing at that time subject to maximum limits as prescribed under the

Regulations.



difference between the Redemption price and Sale price at any point in time shall not exceed

the permitted limit as prescribed by SEBI from time to time which is presently 7% calculated on

the Sale Price.


1. An Addendum detailing the changes will be attached to Scheme Information Document

and Key Information Memorandum. The addendum may be circulated to all the

distributors / brokers so that the same can be attached to all Scheme Information




made to display the addendum in the form of a notice in all the Investor Service Centres

and distributors / brokers office.




Load/CDSC

4. A public notice shall be given in respect of such changes in one English daily newspaper

having nationwide circulation as well as in a newspaper published in the language of

region where the Head Office of the Mutual Fund is situated.


The Trustee/AMC reserves the right to change the load structure subject to the limits prescribed

under the Regulations. Any change in load structure shall be only on a prospective basis i.e.

any such changes would be chargeable only for Redemptions from prospective purchases

(applying first in first out basis).

Transaction Charges

In terms of SEBI circular no. CIR/IMD/DF/13/2011 dated August 22, 2011, as amended from time

to time, transaction charge per subscription of Rs.10,000/– and above shall be charged from

the investors and shall be payable to the distributors/ brokers (who have opted in for charging

the transaction charge) in respect of applications routed through distributor/ broker relating to

purchases / subscription / new inflows only (lump sum and SIP), subject to the following:

For Existing / New investors: Rs. 100/ Rs. 150 as applicable per subscription of 10,000/– and

above


amounts to Rs. 10,000/– and above. In such cases the transaction charge would be


There shall be no transaction charge on subscription below Rs. 10,000/-.





E. WAIVER OF LOAD FOR DIRECT APPLICATIONS

Not applicable


V. RIGHTS OF UNIT HOLDERS








1. All disclosures regarding penalties and action(s) taken against foreign Sponsor(s) may be

limited to the jurisdiction of the country where the principal activities (in terms of income /

revenue) of the Sponsor(s) are carried out or where the headquarters of the Sponsor(s) is

situated. Further, only top 10 monetary penalties during the last three years shall be

disclosed.

Not Applicable

2. In case of Indian Sponsor(s), details of all monetary penalties imposed and/ or action taken

during the last three years or pending with any financial regulatory body or governmental

authority, against Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee

Company; for irregularities or for violations in the financial services sector, or for defaults

with respect to share holders or debenture holders and depositors, or for economic

offences, or for violation of securities law. Details of settlement, if any, arrived at with the

aforesaid authorities during the last three years shall also be disclosed.


following a statutory inspection which revealed violations of various regulations of

the RBI in relation to assessment of NPAs. After considering the response and oral

submissions of Axis Bank, the RBI found that the charges of non-compliance were

substantiated and imposed a monetary penalty of INR 3,00,00,000 (Rupees Three

Crores Only) on March 5, 2018.

b. The RBI had issued Show Cause Notice vide its letter dated 27.7.2018 with respect to

dispensation of two Children Bank Play Notes of Rs.500 each dispensed to two

customers from ATM at Kidwai nagar branch, Kanpur in non-compliance to its

Master Circular on Detection and Impounding of Counterfeit Notes dated July 20,

2017 and, the Circular on Sorting of Notes – Installation of Note Sorting Machines

dated November 19, 2009 and the Bank submitted the response on 16.8.2018. The

RBI vide its letter dated 30.1.2019 imposed a penalty of Rs.20 lakhs and the Bank

paid the same on 5.2.2019.

c. The RBI had issued Show Cause Notice vide its letter dated 29.8.2018 for wrongfully

collecting 105 DDs, each for the amount exceeding Rs.50,000, aggregating Rs.5.56

crores in the account of Satkar Co-operative Credit Society Ltd. in non-compliance

to its Master Circular on ‘Collection of Account Payee Cheques - Prohibition on

Crediting Proceeds to Third Party Account’ dated January 22, 2014 and for the

delay in reporting of above fraud in non-compliance to Master Directions on

‘Frauds - Classification and Reporting by commercial banks and select FIs’ dated

July 1, 2016. The Bank submitted the response on 17.9.2018. The RBI vide its letter

dated 30.1.2019 imposed a penalty of Rs.2 Crore and the Bank has paid the same

on 16.2.2019.

d. The RBI had issued Show cause notice vide its letter dated 23.8.2018 with respect to

non-compliance to guidelines issued dated 20.2.2018 on ‘Time-bound

implementation & Strengthening of SWIFT related operational controls and the Bank

submitted the response on 5.9.2018. The RBI vide its letter dated 25.2.2019


action in future.

3. Details of all enforcement actions taken by SEBI in the last three years and/ or pending with

SEBI for the violation of SEBI Act, 1992 and Rules and Regulations framed there under

including debarment and/ or suspension and/ or cancellation and/ or imposition of

monetary penalty/adjudication/enquiry proceedings, if any, to which the Sponsor(s) and/

or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors


and/ or key personnel (especially the fund managers) of the AMC and Trustee Company

were/ are a party. The details of the violation shall also be disclosed.

Nil

4. Any pending material civil or criminal litigation incidental to the business of the Mutual Fund

to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company

and/ or any of the directors and/ or key personnel are a party should also be disclosed

separately.

Nil


the Board of Trustees/Trustee Company which SEBI has specifically advised to be disclosed

in the SID, or which has been notified by any other regulatory agency, shall be disclosed.

Nil

The Scheme under this Scheme Information Document was approved by the Trustee Company

on September 22, 2011. The Trustee has ensured that the Scheme is a new product offered by

Axis Mutual Fund and is not a minor modification of its existing schemes.


the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable.



Sd/-


Managing Director & Chief Executive Officer


Place: Mumbai





Ellisbridge, 3rd Floor, 302, Megha House, Opp. Kotak Bank,Ahmedabad - 380 006.. AGRA: Axis

Asset Management Company Limited ,Shop No. G-7, Ground Floor, Block-19/4, Sanjay Place,

Agra - 282 002. BANGALORE Axis Asset Management Co.Ltd. Ground Floor, G-03 & G-03A,

Prestige Meridian-1, No. 29, M.G. Road, Bangalore - 560 001 BHOPAL Axis Asset Management

Co FM-8 Mansarovar Complex , Khasra No. 27/1/2 , NH-12 , Bhopal , MP. BHUBANESHWAR Axis

Asset Management Co Unit no.3 (Part) Ground Floor Nandighosh Arena Plot no. 1 Bapuji Nagar

Bhubaneshwar Odisha. BORIVALI Axis Asset Management Co. Ltd, Office No. 201, 2 Floor, REIS

Magos, Ramdas Sutrale Marg, Off. Chandavarkar Road, Borivali (West), Mumbai, Maharashtra

- 400092. CHANDIGARH Axis Asset Management Co.Ltd. 2nd Floor, SCO No 2471, Sector 22C,

Chandigarh - 160022. CHENNAI Axis Asset Management Co. Ltd. 1st Floor , Door no. 168 Anna

Salai , Opp. To Spencer Plaza , Chennai , Tamil Nadu - 600 002., COIMBATORE Axis Asset

Management Company Limited, 1st Floor, Shylaja Complex, 575 DB Road, R. S. Puram, Near

Head Post Office, Coimbatore - 641 002. DEHRADUN Axis Asset Management Co. Ltd., 59/3 First

Floor, Rajpur Road, Above IDBI Bank, Dehradun – 248001. FORT Axis Asset Management

Company Limited , 112, 1st Floor, Yusuf Building, Plot No. 49, Veer Nariman Road, Hutatma

Chowk, Fort, Mumbai - 400 001. GUWAHATI Axis Asset Management Co. ltd 2C 2nd Floor,

“Dihang Arcade”, ABC, G.S. Road Opp Dona Planet Guwahati 781005. HYDERABAD Axis Asset

Management Company Ltd, 2nd Floor, Nerella House, Panjagutta, Hyderabad - 500 082.

INDORE Axis Asset Management Co. ltd office No. 211 2nd Floor Megapolis Square Block A 579,

M.G Road .opp Treasure Island Mall Indore 452001 M.P JAIPUR Axis Asset Management

Company Ltd, 305, 3rd Floor, Ganpati Plaza, M. I. Road, Jaipur-302001.Rajasthan. JALANDHAR

Axis Asset Management Co. Ltd , SCO 5-6, 1st Floor, Puda Complex, Opp Suvidha Center,

Ladowali Road, Jalandhar - 144 001 KANPUR Axis Asset Management August Company

Limited, 305-306, 3rd Floor, Civil Lines, Kan Chamber, Kanpur – 208001. KOCHI Axis Asset

Management Company Limited,Door No.40/9336 ,2nd Floor ,Chackos Towers ,Padma

Pullepady Road ,Kochi 682 035 Kerala. KOLKATA Axis Asset Management Company Ltd,

Ground Floor, Kanak Building,41, Chowringhee Road Kolkata - 700071. LUCKNOW Axis Asset

Management Co. Ltd, Unit No 5, 6 & 7, Halwasiya's Commerce House, 2nd Floor, Habibullah

Estate, 11, M.G.Marg, Hazratganj, Lucknow - 226001. LUDHIANA Axis Asset Management Co.

Ltd. SCO - 28, First Floor, Feroz Gandhi Market, Ludhiana - 141001. MUMBAI Axis Asset

Management Company Limited Axis House, First Floor, C-2, Wadia International Centre,

Pandurang Budhkar Marg, Worli, Mumbai - 400025. MUMBAI (Indiabulls) Axis Asset

Management Company Ltd. Unit No. 902, 9th Floor, Indiabulls Finance Center, Tower 2,

Senapati Bapat Marg, Mumbai - 400013. NAGPUR Axis Asset Management Company Ltd. 1st

Floor, "The Edge", 12, Shankar Nagar, WHC Road, Nagpur-440010 NASIK Axis Asset

Management Company Limited Shop No. G-7,GroundFloor, Rajvee Enclave, Old Pandit

Colony, Nasik - 422 001, Maharashtra. NEW DELHI Axis Asset Management Company Ltd. 702-

705, 7th Floor, Narain Manzil, Barakhamba Road, Connaught Place, New Delhi - 110001.

PANAJI Axis Asset Management Company Limited Ground Floor, Shop No. G-7, Edcon Towers,

Menezes Braganza Road, Panjim, Goa - 403001. PUNE Axis Asset Management Company Ltd.

Unit No. 102 & 102-A/B, 1st Floor, Signature Building, Bhandarkar Road, CTS No. 853, Plot No. 195,

Bhamburda, Shivajinagar, Pune - 411005.PATNA Axis Asset Management Company Ltd. D - 309/

310, 3 Floor, Dumroan Palace, Frazer Road, Patna 800 001. RAIPUR Axis Asset Management

Company Ltd ,Office No. T -10, 3rd Floor, Raheja Towers, Fafadih , Chowk Jail Road, Raipur,

Chhattisgarh - 492001. RAJKOT Axis Asset Management Co. ltd 206, Metro Plaza Jansata

Chowk Near Eagle Travels Moti Tanki Chowk , Rajkot - 360001. SURAT Axis Asset Management

Company Limited,HG-2A, International Trade Centre(ITC), Majura Gate Crossing, Ring Road

,Surat Gujarat, India. Thane Axis Asset Management Company Ltd, Manjula Arcade, 2nd Floor,

Gokhale Road, Naupada, Thane (West) - 400 602. Vadodara Axis Asset Management

Company Limited 3rd Floor, 306, Emerald Complex, Race Course, Near Bird Circle, Old Padra

Road, Vadodara - 390 007.Amritsar Axis Asset Management Co. Ltd SCO-25, First floor, District

shopping Centre, B-Block, Ranjit Avenue, Amritsar – 143001. Varanasi Axis Asset Management


Company Ltd. 7th Floor, Arihant Complex, D-64/127 C-H, Sigra, Varanasi, Uttar Pradesh -

221010. Visakhapatnam Axis Asset Management Company Limited, S3, 3rd Floor, Navaratna

Jewel Square, Beside Jyothi, Book Depot, Dwarakanagar, Visakhapatnam - 530 016.

KARVY FINTECH PRIVATE LIMITED INVESTOR SERVICE CENTERS

Adyar Karvy Fintech Private Limited,New No 51, Gandhi Nagar,First Main Road, Adyar Chennai-

600 020 Agartala, Jagannath Bari Road Bidur Karta Chowmuhani Agartala – 799001 • Agra

Deepak Wasan Plaza, Behind Holiday Inn, Opp Megdoot Furnitures, Sanjay Place, Agra -282002

(U.P) • Ahmedabad, 201,Shail Building, Opp : Madhusudhan House Nr. Navrangpura

Telephone Exchange; Navrangpura Ahmedabad - 380 006 Ajmer, 1-2, II Floor Ajmer Tower,

Kutchary Road Ajmer - 305 001. Akola Shop No-30, Ground Floor, Yamuna Tarang Complex, N

H No 06, Murtizapur Road, Akola 444004 • Alambagh KSM Tower,CP-1 Sinder Dump, Near

Alambagh Bus Station, Alambagh, Lucknow 226 005• Aligarh 1st Floor, Kumar Plaza, Aligarh

202001 Uttar Pradesh • Allahabad RSA Towers, 2nd Floor, Above Sony TV Showroom, 57, S P

Marg, Civil Lines, Allahabad 211001• Alleppey 3rd Floor, J.P.Tower, 17/1424(184), VCSB Road,

Zilla Court Bridge Road, Mullackal, Alleppey – 688011, Kerala • Alwar 101, 1st Floor, Saurabh

Towers, Opp. UTI, Road No # 2 Bhagat Singh Circle Alwar-301001. • Aliganj Hig-67, Sector E,

Aliganj, Lucknow 226 024 • Amaravathi Shop No. 21, 2nd Floor, Gulshan Tower Near

Panchsheel Talkies ,Jaistambh Square, Amravati(M.H.) Pincode 444601 Ambala 6349, Nicholson

Road, Adjacent Kos Hospital, AmbalaCantt, Ambala 133001 Amritsar 72-A, Taylor'S Road Aga

Heritage Gandhi Ground Amritsar - 143 001 Anand 201 Sai Apartment , Behind New Bus Stand

Anand Pin code 388001 • Andheri 6 & 7, Andheri Industrial Estate, Veera Desai Road, Andheri

(West), Mumbai 400 053 • Ananthapur # 15-149, 1st Floor, S R Towers, Opp. Lalithakala Parishat

Subash Road, Anantapur 515001 • Ankleshwar L/2, Keval Shopping Center Old National

Highway Ankleshwar 393002 • Asansol 114/N, G.T. Road, Bhanga Panchil, Near Nokia

Care,Asansol - 713303 • Aurangabad Ramkunj, Railway Station Road Near Osmanpura Circle

Aurangabad-431005 •Azamgarh 1st Floor Alkal Building, Opp. Nagaripalika Civil LIne,

Azamgarh-276 001 Below Central Bank of India, SadawartiChowk, Azamgarh 276001 • Balasore

M S Das Street, Gopalgaon, Balasore 756001 • Bangalore 59,Skanda Puttanna Road ,

Basavanagudi, Bangalore- 560004 • Bankura Karvy Fintech Pvt Ltd. Plot nos- 80/1/A,

NATUNCHATI MAHALLA, 3rd floor, Ward no-24, Opposite P.C Chandra, Bankura town, Bankura

722101 • Bareilly 1st Floor, 165, Civil Lines, Opposite Hotel Bareilly Palace, Near RlyStation Road,

Bareilly 243001 • Barhampore (WB) Thakur Market Complex, 72, Naya Sarak Road,Gorabazar,

PO. Berhampore DIST. Murshidabad Barhampore -742101 • Baroda 203 Corner Point , Jetalpur

Road, Baroda Gujarat 390 007 • Begusarai Hotel Diamond Surbhi Complex, Near I.O.C

Township Gate, Kapasiya Chowk, Begusarai 851117 • Belgaum CTS No 3939/ A2 A1, Above

Raymonds Show Room Club Road, Belgaum – 590001.• Bellary No 1 KHB Colony,

Gandhinagar, Bellary 583101 • Behrampur Opp –Divya Nandan Kalyan Mandap 3rd Labe

Dharam Nagar Near Lohiya Motor, Berhampur, Orissa 760001• Betul107, Hotel Utkarsh, Awasthi

Complex, J H College Road, Civil Lines, Beetul 460001 • Bhagalpur 2nd Floor, Chandralok

Complex, Ghantaghar, Radha Rani Sinha Road, Bhagalpur 812001 • Bharuch 147-148, Aditya

Complex Near Kasak Circle Bharuch - 392 002 • Bhatinda # 2047-A, 2nd Floor, Above Max

New York Life Insurance The Mall Road Bhatinda 151001 • Bhavnagar Karvy Fintech Private

Limited ,303, Sterling Point, Waghawadi Road, Bhavnagar – 364001 • Bhilai Shop No-1,First

Floor Plot NO-1, Old Sada Office Block Commercial Complex, Near HDFC Atm, Nehru Nagar-

East Post – BHILAI Pin – 490020 • Bhilwara 27-28, 1st Floor, HiraPanna Complex, Pur Road,

Bhilwara 311001 • Bhopal Kay KayBusniss Centre, 133 Zone, I M P Nagar, Bhopal 462021 •

Bhubaneswar 2nd & 3rd Floor, Janardan House, A 181, Saheed Nagar, Bhubaneswar - 751 007,

Odisha • Bikaner 2nd Floor, Plot No 70 & 71, Panchshati Circle, SardulGunj Scheme, Bikaner

334003 • BilaspurShop No 201/202, V RPlaza, Link Road, Bilaspur 495001 • Bokaro B-1, 1st Floor,

Near Sona Chandi Jewellers, City Centre, Sector 4, Bokaro Steel, City 827004 (Jharkhand). •

Borivali Ground Floor Himanshu Bldg. Sodawala Lane, Lina Chandawarkar Road, Borivali,

Mumbai - 400 091. • Burdwan Karvy Fintech Private Ltd., Anima Bhavan, 1 Floor, Holding No. 42,

Sreepally, G. T. Road, Burdwan, West Bengal - 713103. • Calicut First Floor, Savithri Building,

Opposite Fathima Hospital, Bank Road, Calicut - 673001, Kerala • Chandigarh Sco 2423-2424

Sector 22-C Chandigarh Pin code 160022 • Chandrapur Shop No 5, Office No 2, 1st Floor,

Routs Raghuvanshi Complex, Beside Azad Garden, Main Road, Chandrapur 442402 •

Chembur Shop No. 4, Ground Floor, Shram Saflya Bldg, N G Acharya Marg, Chembur, Mumbai


400 071 • Chennai (Egmore) Flat No F11,First Floor, Akshya Plaza,(Erstwhile Harris Road), Opp

Chief City Metropolitan Court, # 108, AdhithanarSalai, Egmore, Chennai 600002 • Chennai (T

Nagar) G1, Ground Floor No 22, Vijayaraghava Road, Swathi Court, T Nagar, Chennai - 600

017.• Chinsura JC Ghosh Sarani Near Bus Stand Chinsura 712101 • Cochin Building Nos.39 Ali

Arcade ,1st floor, Near Atlantis Junction, Kizhvana Road, Panampili Nagar, Cochin-682 036

Ernakulum District Coimbatore 3rd Floor 1056/1057, Jaya Enclave, Avanashi Road, Coimbatore -

641018. • Cuttack Dargha Bazar, OppDargha Bazar Police Station, Buxibazar, Cuttack 753001

• Darbhanga Jaya Complex 2nd Floor, above furniture planet, Donar chowk Darbanga-846

003 • Dalhousie 2Nd Floor, Room no-226 R N Mukherjee Road, Kolkata 700 001 • Davangere #

15/9, Sobagu Complex, 1st Floor, 2nd Main Road, P J Extension, Davangere 577002 •Dehradun

Kaulagarh Road, Near Sirmaur Marg, Above Reliance Webworld, Dehradun 248001 • Deoria

1St Floor, Shanti Niketan Opp. Zila Panchayat, Civil Lines Deoria- 274001 • Dewas 27 Rmo

House, Station Road, Dewas 455001• Dhanbad 208, New Market, 2nd Floor,Katras Road, Bank

More, Dhanbad 826001 • Dharwad G7 & 8, Sri Banashankari Avenue Ramnagar, OppNttfpb

Road Dharward 580001 • Dhule Ground Floor Ideal Laundry, Lane No 4 , Khol Galli, Near

Muthoot Finance , Opp Bhavasar General Store, Dhule – 424001• Dindigul No 9, Old No 4/B,

New Agraharam, Palani Road, Dindigul 624001 • Durgapur MWAV – 16 Bengal Ambuja 2nd

Floor, City Centre Durgapur 713216 • Eluru- Karvy Fintech Private Limited., Dno-23a-7-72/73 ,K K

S Plaza, Munukutla Vari Street, Opp Andhra Hospitals,R R Peta, Eluru – 534002,West Godavari

Dist.,Andhra Pradesh• Erode No 4,KMY Salai, Veerappan Traders Complex, Opp Erode Bus

Stand,Sathy Road, Erode 638003 • Faridabad A-2B, 1st Floor, Nehru Ground, Neelam Bata

Road, Nit, Faridabad 121001 • Ferozpur2nd Floor, Malwal Road, Opp H M School, Ferozpur City

152002• Gandhidham Office No. 203, Second Floor Bhagwati Chamber, Plot No. 8 Sector - 1/A,

Kutch Kala Road, Gandhidham - 370 201 • Gandhinagar Plot No. - 945/2, Sector - 7/C,

Gandhinagar - 382 007 • Gaya 54 Lal Kothi Compound, Near Royal , Surya Hotel,Shree Krishna

Road, 2 Floor - North side, Gaya - 823 001 • Ghaziabad 1st Floor, C-7, Lohia Nagar, Ghaziabad

201001 • Ghazipur Shubhra Hotel Complex, 2nd Floor, Mahaubagh, Ghazipur 233001 • Gonda

Shree Markit Sahabgunj ,Near Nuramal Station Raod Gonda 271001 • Gorakhpur Above V I P

House Ajdacent A D Girls Inter College, Bank Road, Gorakpur 273001 • Gomti Nagar B-1/2,

Vijay Khand, Near Union Bank of India, Gomti Nagar, Lucknow 226 010 • Gulbarga CTS No.

2913, First Floor,Asian Tower Next To Hotel Aditya,Jagat Station Main Road Gulbarga 585105•

Guntur D. No 6-10-27 10/1 Sri Nilayam ,Arundelpet Guntur 522 002 • Gurgaon Shop No 18,

Ground Floor, Sector 14, Opp AKD Tower, Near Huda Office, Gurgaon 122001 • Guwahati 54

Sagarika Bhawan R G Baruah Road, (AIDC Bus Stop) Guwahati 781024 • Gwalior 2nd Floor

Rajeev Plaza Jayendra Ganj, Lashkar Gwalior 474009. • Haldwani Above Kapilaz Sweet House

Opp LIC Building Pilikothi Haldwani 263139 Uttarakhand • Haridwar 7, Govindpuri, Opposite 1-

india Mart, Above Raj Electricals, Ranipur More, Haridwar–249401 • Hassan SAS No. 212,

Ground Floor, Sampige Road, 1st Cross Near Hotel Southern Star, K. R. Puram, Hassan - 573 201

• Hissar Sco 71, 1st Floor, Red Square Market, Hissar 125001 • Hoshiarpur 1st Floor, The Mall

Tower, Opp Kapila Hospital, Sutheri Road, Near Maharaj Palace, Hoshiarpur 146001 • Hubli 22

& 23 , 3rd Floor Eurecka Junction, T B Road Hubli – 580029 • Hyderabad 8-2-596 Karvy

Plaza,Avenue 4, Street No 1, Banjara Hills, Hyderabad 500034 • Indore 2nd Floor , 203-205 Balaji

Corporates Above ICICI bank, 19/1 New Palasia Indore – 452001 •Jabalpur 43, Naya Bazar,

Opposite Shyam Talkies, Jabalpur (MP) 482001 • Jaipur S-16 A, 3rd Floor, Land Mark, Opposite

Jaipur Club, Mahavir Marg, C- Scheme, Jaipur 302001 • Jalandhar Lower Ground Floor, Office

No 3, Arora Prime Tower, Plot No 28, G T Road, Jalandhar 144004 • Jalgaon 269, Jaee Plaza, 1

st Floor | Baliram Peth| Above United bank of India| Near kishor Agencies , Jalgaon - 425001

• Jalpaiguri D B C Raod, Near Rupasree Cinema Hall, Beside Kalamandir, PO & Dist Jalapiguri

735101 • Jammu 5 A/D Second Extension, opposite Panama Chowk Petrol Pump Gandhi

Nagar Jammu 180 012. Jamnagar 108 Madhav Plaza, Opp SBI Bank, Near Lal Bangalow,

Jamnagar 361001 • Jamshedpur 2nd Floor, R R Square SB Shop Area, near Reliance Foot Print

& Hotel- BS Park Plaza Main Road, Bistupur Jamshedpur—831001 • Jaunpur 119,R N Complex,

2nd Floor, Near Jay Ceej Crossing, Ummarpur Jaunpur-222 002 • Jhansi 371/01, Narayan Plaza,

Gwalior Road, Near Jeevan Shah Chauraha, Jhansi 284001 • Jodhpur 203, Modi Arcade,

Chupasni Road, Jodhpur 342001 • Junagadh 124/125, Punit Shopping Center, Ranavat Chowk,

Junagadh Gujarat 362001 • Kannur 2nd Floor, Prabhat Complex, Fort Road, Kannur 670001 •

Kanpur 15/46, Opp Muir Mills, Civil Lines, Kanpur 208001 • Karaikudi No. 2,Gopi Arcade 100

Feet Road, Karaikudi 630001 • Karaikudi Gopi Arcade, 100 Feet Road, Karaikudi 630001 •


Karimnagar SRI PROJECTS,Door no 2-10-1298, 2nd Floor,Rathnam Arcade, Jyothi

Nagar,KARIMNAGAR-505001 • Karnal 18/369,Char Chaman Kunjpura road Karnal-132001 •

Karur No 6, Old No 1304 Thiru-Vi-Ka Road, Near G R Kalyan Mahal Karur 639001 • Kharagpur

Malancha Road, Beside UTI Bank,Kharagpur 721304 • Kolhapur 605/1/4 E Ward, Near Sultane

Chambers, Shahupuri 2nd Lane Kolhapur 416001• Kolkata Apeejay House ( Beside Park Hotel )

15 Park Street, C Block,3rd Floor Kolkata-700016 , West Bengal • Kollam Ground Floor,

Vigneshwara Bhavan, Below Reliance Web World, Kadapakkada Kollam 691008 • Kolkata 1 R

N Mukerjee Road, 2nd Floor Room No.- 226, Kolkata - 700 001. • Kota H No 29, First Floor, Near

Lala Lajpat Rai Circle Shopping Centre, Kota, Rajasthan 324007 • Kottayam 1st Floor,

CSIAscension Church Complex, Kottayam 686001 • Korba 1st Floor, 35 Indira Complex, T P

Nagar, Korba (CG) 495677 • Koramangala No.408, Ist Floor, CITA Bldg, Next to Vodafone

Office, Koramangala, Bangalore 560 095 • Kurnool Shop No 43, 1st Floor S V Complex, Railway

Station Road, Kurnool 518004 • Lucknow 1st Floor, A. A. Complex, Thaper House, 5 Park Road,

Hazratganj, Lucknow – 226 001 • Ludhiana SCO - 136, First Floor, Above Airtel Show Room,

Feroze Gandhi Market, Ludhiana – 141 001. • Malda Sahistuli Under Ward No-6, English Bazar,

Municipality, No-1 Govt Colony, Malda 732101 • Malleshwaram No.337, GF-3, Karuna

Complex, Sampige Road, Opp. New Vegetable Market, Malleshwaram, Bangalore 560003•

Madurai Rakesh Towers, 30-C, Bye Pass Road, 1st Floor, Opp Nagappa Motors, Madurai 625010

• Mangalore Ground Floor, Mahendra Arcade, Kodial Bail, Mangalore 575003 • Margao 2nd

Floor,Dalal Commercial Complex, Opp Hari Mandir, Pajifond, Margao-Goa 403601 • Mathura

AMBEY Crown, IInd Floor In Front Of BSA College Gaushala Road Mathura – 281001 • Meerut

1st Floor, Medi Centre Complex, Opp ICICI Bank, Hapur Road, Meerut 250002 • Mehsana Ul-47,

Appolo Enclave, Opp Simandhar Temple, Modhera Char Rasta Highway, Mehsana 384002 •

Mirzapur Girja Sadan,Dankin Gunj Mirzapur 231001 • Moga Near Dharamshala Brat Ghar, Civil

Line, Dutt Road, Moga 142001 • Moradabad Om Arcade, Parker Road, Above Syndicate Bank,

TariKhana Chowk,Moradabad 244001 • Morena Moti Palace, Near Ramjan ki Mandir, Jiwaji

Ganj, Morena 476001 • Mumbai - Office number : 01/04, 24/B, Raja Bahadur Compound,

Ambalal Doshi Marg, Behind Bombay Stock Exchange, Fort Mumbai – 400001 • Muzaffarpur

First Floor, Shukla Complex, Near ICICI Bank, Civil Court Branch, Company Bagh,

Muzaffarpur,Bihar – 842001 • Mysore L-350, Silver Tower, Clock Tower, Ashoka Road, Mysore

570001 • Nadiad 105 GF City Point, Near Paras Cinema, Nadiad 387001 • Nanganallur Karvy

Fintech Private Limited, No.: 155/7, Ullagaram, Medavakkam Main Road , (Opp. to IDBI ATM) ,

Madipakkam, Chennai - 600 091. • Nagarcoil 45, East Car Street, 1st Floor, Nagercoil - 629 001•

Nagpur Plot No.2/1, House No. 102/1, Mangaldeep Apartment, Mata Mandir Road,

Opp. Khandelwal Jewellers, Dharampeth, Nagpur - 440 010 • Namakkal 105/2, Arun Towers,

Paramathi Street, Namakkal 637 001 • Nanded Shop No 4, First Floor, Opp Bank of India,

Santkrupa Market, Gurudwara Road, Nanded 431602 • Nasik S-12, Second Floor, Suyojit Sankul,

Sharanpur Road, Nasik 422002 • Navsari 103, 1st floor Landmark Mall,Near Sayaji Library,

Navsari,Gujarat - 396445• New Delhi 305, 3rd Floor New Delhi House, Bara Khamba Road

Connaught Place New Delhi-110 001• Nellore 16-2-158, 3rd Floor, Mogarala Complex, Sunday

Market Lane, Pogathota,Nellore - 524001, Andhra Pradesh.• Nizamabad H No: 5-6-430, First

Floor, Above Bank of Baroda, Beside HDFC Bank , Ginza View, Hyderabad Road, Nizamabad-

503003. • Noida 405 4th Floor , Vishal Chamber , Plot no. 1, Sector 18 Noida 201301 • Palghat

12/310, (No.20 & 21), Metro Complex, Head Post Office Road, Sultanpet, Palghat 678001 •

Panipat Java Complex , 1st Floor , above Vijaya Bank , G. T Road , Panipat-132103 Haryana. •

Panjim Karvy Fintech Private Limited Flat No.1-A, H. No. 13/70 Timotio Bldg Heliodoro Salgado

Road, Next to Navhind Bhavan (Market Area) Panaji Goa – 403001 • Patiala Sco 27 D,Chhoti

Baradari Patiala 147001 • Patna 3A, 3rd Floor, Anand Tower, Beside Chankya Cinema Hall,

Exhibition Road, Patna 800001 • Pathankot 2nd Floor, Sahni Arcade Complex, Adj. Indra Colony

Gate Railway Road, City Pathankot- 145001 • Pollachi S S Complex, New Scheme Road,

Pollachi 642002 • Pondicherry First Floor No.7, Thiayagaraja Street Pondicherry 605001 •

Pudukottai Sundaram Masilamani Towers, TS No 5476-5479, PM Road, Old Tirumayam Salai,

Near Anna Statue, Jublie Arts, Pudukottai 622001 •Pune Office # Mozaioc Building 3rd Floor CTS

No:1216/1FC Road, Opposite- FC Collage Main Gate Above Allahabad Bank, Shivaji Nagar

,Pune - 411004 • Raipur Office No. S-13, Second Floor,Raheja Tower, Fafadih Chowk, Jail Road,

Raipur - 492 001.• Rajahmundry Dr No 61-4, First Floor, Rangachary Street, T Nagar,

Rajahmundry 533101 • Rajapalayam Sri Ganpathy Complex 14B/5/18, T P Mills Road

Rajapalayam 626117 •Rajkot 302, Metro Plaza, Near Moti Tanki Chowk , Rajkot, Gujarat - 360


001 •Ranchi Room No. 307, 3 rd Floor, Commerce Towers, Beside Mahabir Towers Main Road

Ranchi - 834 001• Ratlam 1 Nagpal Bhavan, Freeganj Road, Tobatti, Ratlam 457001 • Renukoot

Shop No 18, Near Complex Birla Market, Renukoot 231217 • Rewa 1st Floor, Angoori Building,

Besides Allahabad Bank,Trans University Road, Civil Lines, Rewa 485001 • Rohtak 1st Floor,

Ashoka Plaza, Delhi Road, Rohtak 124001 • Roorkee Shree Ashadeep Complex, 16 Civil Lines,

Near Income Tax Office, Roorkee, Uttaranchal 247667 • Rourkela 1st Floor, Sandhu Complex,

Kanchery Road, Udit Nagar, Rourkela 769012 • Sagar 1st floor satyam complex,infront of cantt

shopping mall5 civil lines Sagar (MP)470002. • Saharanpur 18 Mission Market, Court Road,

Saharanpur 247001 Uttar Pradesh • Salem No. 3/250 "F" Brindavan Road, 6th Cross , Perumal

Kovil Back side, Fair Land's Salem - 636016, Tamil Nadu. • Sambalpur Karvy Fintech Private

Limited Koshal Builder Complex, Near Goal Bazaar Petrol Pump, Sambalpur - 768 001. • Satna

1St Floor, Gopal Complex, Near Busstand Rewa Road Satna (M.P) -485 001 • Secunderabad C/o. Karvy Fin. Ser. Ltd. 1st Floor, Thirumala, Complex Paradise Circle, S.D. Road, Opp. Hotel Kamat, Secunderabad -

500 003 • Shaktinagar 1st/A-375, V V Colony Dist Sonebhadra Shaktinagar 231222 • Shivpuri 1st

Floor, M P R P Building, Near Bank of India, Shivpuri 473551 • Shillong Mani Bhawan, Thana

Road, Lower Police Bazar, Shillong 739001 • Shimla Triveni Building, By Pas Chowk, Khallini,

Shimla 171002 • Shimoga Uday Ravi Complex, LLR Road, Durgi Gudi, Shimoga 577201 • Sikar

1st Floor, Super Towers Behind Ram Mandir, Station Road, Sikar 332001 • Silchar 1st Floor,

Chowchakra Complex, N N Dutta Road, Premtala Silchar 788001 • Siliguri Nanak Complex,

Near Church Road, Sevoke Road, Siliguri 734001 • Sitapur 12/12-A Surya Complex, Arya Nagar,

Opp Mal Godam, Sitapur 261001 • Sivakasi 363, Thiruthangal Road, Opp TNEB,Sivakasi 626 123

• Solan Sahni Bhawan, Adjacent Anand Cinema Complex, The Mall Solan 173212, • Solapur

Siddeshwar Secrurities, No 6, Vaman Road, Vijaypur Road, Vaman Nagar,Solapur 413004 •

Surat Office No: 516, 5th Floor, Empire State Building, Near Parag House, UdhnaDarwaja, Ring

Road, Surat 395002 • Sonepat 205 R Model Town, Above Central Bank of India, Sonepat • Sri

Ganganagar 35-E-Block, Opp Sheetla Mata Vatika, Sri Ganga Nagar 335001 • Srikakulam 4-1-

28/1, Venkateshwara Colony Day & Night Junction, Srikakulam 532001 • Sultanpur Rama

Shankar Complex, Civil Lines, Faizabad Road, Sultanpur 228001 • Thanjavur Nalliah Complex,

No 70, Srinivasam Pillai Road, Thanjavur 613001 • Thane 101, Yashwant Building, Ram Ganesh

Godkari Path, Ram Maruti Road, Naupada, Thane - 400 602. • T Nagar G1, Ground Floor, No

22, Vijayaraghava Road Swathi Court, T Nagar Chennai 600 017• Thodupuzha First Floor,

Pulimoottil Pioneer Pala Road, Thodupuzha 685584 • Tirunelveli Jeney Building, 55/18, S N Road,

Near Arvind Eye Hospital, Tirunelveli 627001•Tirupur First Floor, 224 A, S Selvakumar

Departmental Stores, 1st Floor, Kamaraj Road,Opp To Cotton Market Complex, Tirupur 641604 •

Tirupathi H.No:12-3-330 2nd Floor , Tilak Road Near Four Piller Mandapam Tirupathi : 517501 •

Tiruvalla 2nd Floor, Erinjery Complex, Near Kotak Securites, Ramanchira Tiruvalla 689107 •

Trichur 2nd Floor, Brother's Complex, Near DhanaLaxmi Bank Head Office, Naikkanal Junction,

Trichur 680001 • Trichy Sri Krishna Arcade, 1st Floor, 60 Thennur High Road, Trichy 620017 •

Trivandrum 2nd Floor, Akshaya Towers, Above Jetairways, Sasthamangalam, Trivandrum 695010

• Tuticorin 4 B, A34, A37, Mangalmal, Mani Nagar,Opp Rajaji Park, Palayamkottai Road,

Tuticorin 628003 • Udaipur 201-202, Madhav Chambers, Opp G P O Chetak Circle, Madhuban,

Udaipur 313001 • Ujjain 101, Aastha Tower, 13/1,Dhanwantri Marg, Free Gunj Ujjain 456010 •

Valsad Shop No 2, Phiroza Corner Opp Next Showroom; Tithal Road Valsad 396001 • Vapi Shop

No 5, Phikhaji Residency, Opp DCB Bank,Vapi Silvassa Road, Vapi 396195 • Varanasi D-64/132,

KA 1st Floor, Anant Complex, Sigra, Varanasi 221010 • Vashi A Wing, Shop No 205, 1st Floor,

Vashi Plaza,Sector 17, Vashi, Navi Mumbai - 400 073 . • Vellore No 1, M N R Arcade, Officer's

Line, Krishna Nagar, Vellore 632001 • Vijayawada 39-10-7 Opp Municipal Water Tank, Labbipet,

Vijayawada 520010 • Vile Parle 104, Sangam Arcade, V P Road, Opp.Railway Station, Above

Axis Bank, Vile Parle (West), Mumbai 400 056 •Visakhapatnam 47-14-5/1 Eswar Paradise,

Dwaraka Nagar, Main Road, Visakhapatnam 530016 •Vijayanagaram Soubhagya, 19-6-13/1,

llnd Floor, Near SBI Fort Branch, Vizianagaram 535002 • Warangal Karvy Fintech Pvt.Ltd. H. No.

1-8-533, Beside: Suprabha Hotel, Nakkalagutta, Ward No.1, Hanamkonda, Waranagal - 506

001, Telangana. • Yamuna Nagar Jagdhari Road, Above UCO Bank, Near D A V Grils College,

Yamuna Nagar 135 001.

Karvy, Registrar & Transfer Agents of Axis Mutual Fund having its office at Unit: Axis Mutual Fund,

Karvy Selenium, Tower B, Plot number 31 & 32, Financial District, Gachibowli, Hyderabad 500

008 is the collection centre of transactions / request for electronic transactions received from


specified banks, financial institutions, distribution channel etc. (mobilized on behalf of their

clients) with whom the AMC has entered or may enter into specific arrangements for

purchase/ sale/switch of units.


investors.

In addition to the existing official points of acceptance (“OPA”) for accepting transactions in

the units of the schemes of the Axis Mutual Fund as disclosed in the SID,




House, 1st Floor, C-2 Wadia International, Pandurang Budhkar Marg, Worli, Mumbai - 400025,

India.



Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act,

1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund

Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC) Risk Factors: Axis

Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of

the scheme.


carefully.



Axis Growth Opportunities Fund 1

SCHEME INFORMATION DOCUMENT AXIS GROWTH OPPORTUNITIES FUND

(An Open-ended Equity Scheme investing in both large cap and mid cap stocks) Continuous offer for Units at NAV based prices


• capital appreciation over long term • investment in a diversified portfolio predominantly consisting of equity and equity related instruments

both in India as well as overseas

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Name of Mutual Fund : Axis Mutual Fund Name of Asset Management Company

: Axis Asset Management Company Ltd.

Name of Trustee Company : Axis Mutual Fund Trustee Ltd. Addresses, Website of the entities : Axis House, 1st Floor, C-2, Wadia International Centre,

Pandurang Budhkar Marg, Worli, Mumbai - 400 025 www.axismf.com

Name of Sponsor : Axis Bank Ltd. The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, (herein after referred to as SEBI (MF) Regulations or the Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the Asset Management Company (AMC). The Units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document. The Scheme Information Document sets forth concisely the information about the Scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / Investor Service Centres / Website / Distributors or Brokers. The investors are advised to refer to the Statement of Additional Information (SAI) for details of Axis Mutual Fund, Tax and Legal issues and general information on www.axismf.com. SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website. The Scheme Information Document should be read in conjunction with the SAI and not in isolation. This Scheme Information Document is dated August 14, 2020.


TABLE OF CONTENTS

HIGHLIGHTS/ SUMMARY OF THE SCHEME ........................................................................................ 3 I. INTRODUCTION ........................................................................................................................ 5 A. RISK FACTORS ........................................................................................................................... 5 B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME ............................................... 10 C. SPECIAL CONSIDERATIONS, if any ...................................................................................... 10 D. DEFINITIONS ............................................................................................................................ 11 E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY ............................................ 16 II. INFORMATION ABOUT THE SCHEME ................................................................................... 17 A. TYPE OF THE SCHEME ............................................................................................................ 17 B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? ................................................. 17 C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? ............................................................... 17 D. WHERE WILL THE SCHEME INVEST? ...................................................................................... 29 E. WHAT ARE THE INVESTMENT STRATEGIES ........................................................................... 36 F. FUNDAMENTAL ATTRIBUTES .................................................................................................. 48 G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? .......................................... 49 H. WHO MANAGES THE SCHEME? .......................................................................................... 49 I. WHAT ARE THE INVESTMENT RESTRICTIONS? ..................................................................... 50 J. HOW HAS THE SCHEME PERFORMED? ............................................................................... 56 K. Investments by the AMC ..................................................................................................... 58 L. Additional Scheme Related Disclosures........................................................................... 58 III. UNITS AND OFFER .................................................................................................................. 60 A. NEW FUND OFFER (NFO) ...................................................................................................... 60 B. ONGOING OFFER DETAILS ................................................................................................... 70 C. PERIODIC DISCLOSURES ..................................................................................................... 108 D. COMPUTATION OF NAV ..................................................................................................... 112 IV. FEES AND EXPENSES ............................................................................................................ 114 A. NEW FUND OFFER (NFO) EXPENSES .................................................................................. 114 B. ANNUAL SCHEME RECURRING EXPENSES ....................................................................... 114 D. LOAD STRUCTURE ................................................................................................................ 117 E. WAIVER OF LOAD FOR DIRECT APPLICATIONS .............................................................. 119 V. RIGHTS OF UNIT HOLDERS................................................................................................... 120 VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY .................................................................................... 121


HIGHLIGHTS/ SUMMARY OF THE SCHEME Investment objective To generate long term capital appreciation by investing in a diversified portfolio of Equity & Equity Related Instruments both in India as well as overseas. However, there can be no assurance that the investment objective of the Scheme will be achieved. Liquidity The Scheme offers Units for Subscription and Redemption at NAV based prices on all Business Days. Under normal circumstances the AMC shall dispatch the redemption proceeds within 10 business days from date of receipt of request from the Unit holder. Benchmark NIFTY LargeMidcap 250 Index TRI Minimum Application Amount Rs. 5,000 and in multiples of Re. 1/- thereafter Minimum Additional Purchase Amount Rs.100 and in multiples of Re. 1/- thereafter Minimum application amount is applicable at the time of creation of new folio and at the time of first investment in a plan. Plans and Options under the Scheme Plans Axis Growth Opportunities Fund - Regular Plan Axis Growth Opportunities Fund - Direct Plan Options under each Plans Growth Dividend (Payout and Reinvestment Facility) Regular Plan Regular Plan is available for investors who purchase /subscribe Units in a Scheme through a Distributor. Direct Plan Direct Plan is only for investors who purchase/ subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor. Eligible investors / modes for applying All categories of investors (whether existing or new Unitholders) as permitted under the Scheme Information Document of the Scheme are eligible to subscribe under Direct Plan. Investments under Direct Plan can be made through various modes offered by the Fund for investing directly with the Fund {except Platform(s) where investors’ applications for subscription of units are routed through Distributors}. All the plans will have common portfolio. Load Structure Entry Load: Not Applicable Exit Load: If redeemed / switched-out on or before 12 months from the date of allotment, For 10% of investments: Nil. For remaining investments: 1%.


If redeemed / switched - out after 12 months from the date of allotment: NIL SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 has decided that there shall be no entry Load for all Mutual Fund schemes. For more details on Load Structure, please refer paragraph “Load Structure”. Transparency/ NAV Disclosure The AMC will calculate and disclose the NAVs on all Business Days. The AMC shall update the NAVs on its website (www.axismf.com) and of the Association of Mutual Funds in India - AMFI (www.amfiindia.com) before 11.00 p.m. on every Business Day. If the NAVs are not available before the commencement of Business Hours on the following day due to any reason, the Mutual Fund shall issue a press release giving reasons and explaining when the Mutual Fund would be able to publish the NAV. The AMC will disclose the portfolio of the Scheme (alongwith ISIN) as on the last day of the month/ half year on the website of the Mutual Fund and AMFI within 10 days from the close of each month/ half year (i.e. 31st March and 30th September) respectively in a user-friendly and downloadable spreadsheet format. Further, AMC shall publish an advertisement, in an all India edition of one national English daily newspaper and in one Hindi newspaper, every half year disclosing the hosting of the half-yearly statement of its schemes portfolio on the website of the Mutual Fund and AMFI and the modes through which unitholder can submit a request for a physical or electronic copy of the statement of scheme portfolios. The AMC will also provide a dashboard, in a comparable, downloadable (spreadsheet) and machine readable format, providing performance and key disclosures like Scheme’s AUM, investment objective, expense ratios, portfolio details, scheme’s past performance etc. on its website. The AMC will make available the Annual Report of the Scheme within four months of the end of the financial year on its website and on the website of AMFI along with a link.




I. INTRODUCTION A. RISK FACTORS i. Standard Risk Factors • Investment in mutual fund units involves investment risks such as trading volumes, settlement

risk, liquidity risk, default risk including the possible loss of principal. • As the price / value / interest rates of the securities in which the Scheme invests fluctuates,

the value of your investment in the Scheme may go up or down. • Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future

performance of the Scheme. • Axis Growth Opportunities Fund is the name of the Scheme and does not in any manner

indicate either the quality of the Scheme or its future prospects and returns. • The sponsor is not responsible or liable for any loss resulting from the operation of the

Scheme beyond the initial contribution of Rs. 1 lakh made by it towards setting up the Fund. • Axis Growth Opportunities Fund is not a guaranteed or assured return scheme.

ii. Scheme Specific Risk Factors Risks associated with investments in Equity and Equity related securities

• Equity and equity related securities are volatile and prone to price fluctuations on a daily basis. The liquidity of investments made in the Scheme may be restricted by trading volumes and settlement periods. Settlement periods may be extended significantly by unforeseen circumstances. The inability of the Scheme to make intended securities purchases, due to settlement problems, could cause the Scheme to miss certain investment opportunities. Similarly, the inability to sell securities held in the Scheme portfolio would result at times, in potential losses to the Scheme, should there be a subsequent decline in the value of securities held in the Scheme portfolio. Also, the value of the Scheme investments may be affected by interest rates, currency exchange rates, changes in law/policies of the government, taxation laws and political, economic or other developments which may have an adverse bearing on individual Securities, a specific sector or all sectors.

• Investments in equity and equity related securities involve a degree of risk and investors should not invest in the equity Schemes unless they can afford to take the risk of losing their investment.

• Securities which are not quoted on the stock exchanges are inherently illiquid in nature and carry a larger liquidity risk in comparison with securities that are listed on the exchanges or offer other exit options to the investors, including put options.

Risks associated with investments in Fixed Income Securities Interest-Rate Risk: Fixed income securities such as government bonds, corporate bonds, and money market instruments and derivatives 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 depends upon the coupon and maturity of the security. It also depends upon the yield level at which the security is being traded. Re-investment Risk: Investments in fixed income securities carry re-investment risk as interest rates prevailing on the coupon payment or maturity dates may differ from the original coupon of the bond. Basis Risk: The underlying benchmark of a floating rate security or a swap might become less active or may cease to exist and thus may not be able to capture the exact interest rate movements, leading to loss of value of the portfolio. Spread Risk: In a floating rate security the coupon is expressed in terms of a spread or mark up over the benchmark rate. In the life of the security this spread may move adversely leading to loss in value of the portfolio. The yield of the underlying benchmark might not change, but the spread of the security over the underlying benchmark might increase leading to loss in value of the security.


Liquidity Risk: The liquidity of a bond may change, depending on market conditions leading to changes in the liquidity premium attached to the price of the bond. At the time of selling the security, the security can become illiquid, leading to loss in value of the portfolio. Credit Risk: This is the risk associated with the issuer of a debenture/bond or a money market instrument defaulting on coupon payments or in paying back the principal amount on maturity. Even when there is no default, the price of a security may change with expected changes in the credit rating of the issuer. It is to be noted here that a Government Security is a sovereign security and is the safest. Corporate bonds carry a higher amount of credit risk than Government securities. Within corporate bonds also there are different levels of safety and a bond rated higher by a particular rating agency is safer than a bond rated lower by the same rating agency. Liquidity Risk on account of unlisted securities: The liquidity and valuation of the Scheme investments due to their holdings of unlisted securities may be affected if they have to be sold prior to their target date of divestment. The unlisted security can go down in value before the divestment date and selling of these securities before the divestment date can lead to losses in the portfolio. Settlement Risk: Fixed income securities run the risk of settlement which can adversely affect the ability of the fund house to swiftly execute trading strategies which can lead to adverse movements in NAV Risk associated with Securitized Debt The Scheme may invest in domestic securitized debt such as Asset Backed Securities (ABS) or Mortgage Backed Securities (MBS). ABS are securitized debts where the underlying assets are receivables arising from various loans including automobile loans, personal loans, loans against consumer durables, etc. MBS are securitized debts where the underlying assets are receivables arising from loans backed by mortgage of residential / commercial properties. At present in Indian market, following types of loans are securitized: 1. Auto Loans (cars / commercial vehicles /two wheelers) 2. Residential Mortgages or Housing Loans 3. Consumer Durable Loans 4. Personal Loans 5. Corporate Loans In terms of specific risks attached to securitization, each asset class would have different underlying risks. Residential Mortgages generally have lower default rates than other asset classes, but repossession becomes difficult. On the other hand, repossession and subsequent recovery of commercial vehicles and other auto assets is fairly easier and better compared to mortgages. Asset classes like personal loans, credit card receivables are unsecured and in an economic downturn may witness higher default. A corporate loan/receivable, depend upon the nature of the underlying security for the loan or the nature of the receivable and the risks correspondingly fluctuate. The rating agencies define margins, over collateralisation and guarantees to bring risk in line with similar AAA rated securities. The factors typically analyzed for any pool are as follows: a. Assets securitized and Size of the loan: This indicates the kind of assets financed with the

loan and the average ticket size of the loan. A very low ticket size might mean more costs in originating and servicing of the assets.

b. Diversification: Diversification across geographical boundaries and ticket sizes might result in lower delinquency

c. Loan to Value Ratio: Indicates how much % value of the asset is financed by borrower’s own equity. The lower this value the better it is. This suggests that where the borrowers own contribution of the asset cost is high; the chances of default are lower.


d. Average seasoning of the pool: This indicates whether borrowers have already displayed repayment discipline. The higher the number, the more superior it is.

The other main risks pertaining to Securitised debt are as follows: Prepayment Risk: This arises when the borrower pays off the loan sooner than expected. When interest rates decline, borrowers tend to pay off high interest loans with money borrowed at a lower interest rate, which shortens the average maturity of ABS. However, there is some prepayment risk even if interest rates rise, such as when an owner pays off a mortgage when the house is sold or an auto loan is paid off when the car is sold. Reinvestment Risk: Since prepayment risk increases when interest rates decline, this also introduces reinvestment risk, which is the risk that the principal can only be reinvested at a lower rate.

Risks associated with investments in Derivatives • The Scheme may invest in derivative products in accordance with and to the extent

permitted under the Regulations and by RBI. Derivative products are specialized instruments that require investment techniques and risk analysis different from those associated with stocks and bonds. The use of a derivative requires an understanding not only of the underlying instrument but of the derivative itself. Trading in derivatives carries a high degree of risk although they are traded at a relatively small amount of margin which provides the possibility of great profit or loss in comparison with the principal investment amount. Thus, derivatives are highly leveraged instruments. Even a small price movement in the underlying security could have an impact on their value and consequently, on the NAV of the Units of the Scheme.

• The derivatives market in India is nascent and does not have the volumes that may be seen in other developed markets, which may result in volatility to the values.

• Investment in derivatives also requires the maintenance of adequate controls to monitor the transactions entered into, the ability to assess the risk that a derivative adds to the portfolio and the ability to forecast price or interest rate movements correctly. Even a small price movement in the underlying security could have an impact on their value and consequently, on the NAV of the Units of the Scheme.

• The Scheme may face execution risk, whereby the rates seen on the screen may not be the rate at which the ultimate execution of the derivative transaction takes place.

• The Scheme may find it difficult or impossible to execute derivative transactions in certain circumstances. For example, when there are insufficient bids or suspension of trading due to price limit or circuit breakers, the Scheme may face a liquidity issue.

• The options buyer's risk is limited to the premium paid, while the risk of an options writer is unlimited. However the gains of an options writer are limited to the premiums earned.

• The exchange may impose restrictions on exercise of options and may also restrict the exercise of options at certain times in specified circumstances and this could impact the value of the portfolio.

• The writer of a put option bears the risk of loss if the value of the underlying asset declines below the exercise price. The writer of a call option bears a risk of loss if the value of the underlying asset increases above the exercise price, as per the extant Regulations.

• Investments in index futures face the same risk as the investments in a portfolio of shares representing an index. The extent of loss is the same as in the underlying stocks.

• The Scheme bears a risk that it may not be able to correctly forecast future market trends or the value of assets, indices or other financial or economic factors in establishing derivative positions for the Scheme.

• The risk of loss in trading futures contracts can be substantial, because of the low margin deposits required, the extremely high degree of leverage involved in futures pricing and the potential high volatility of the futures markets.

• There is the possibility that a loss may be sustained by the portfolio as a result of the failure of another party (usually referred to as the "counter party") to comply with the terms of the derivatives contract. The counter party may default on a transaction before settlement and therefore, the Scheme is compelled to negotiate with another counterparty at the then prevailing (possibly unfavourable) market price.


• Derivatives also carry a market liquidity risk where the derivatives cannot be sold (unwound) at prices that reflect the underlying assets, rates and indices.

• Where derivatives are used for hedging, such use may involve a basis risk where the instrument used as a hedge does not match the movement in the instrument/underlying asset being hedged. The risk may be inter-related also e.g. interest rate movements can affect equity prices, which could influence specific issuer/industry assets.

• Other risks in using derivatives include the risk of mispricing or improper valuation of derivatives and the inability of derivatives to correlate perfectly with underlying assets, rates and indices.

• Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor.

• Execution of investment strategies depends upon the ability of the fund manager(s) to identify such opportunities which may not be available at all times. Identification and execution of the strategies to be pursued by the fund manager(s) involve uncertainty and decision of fund manager(s) may not always be profitable. No assurance can be given that the fund manager(s) will be able to identify or execute such strategies.

• The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments.

The following are certain additional risks involved with use of fixed income derivatives: Interest rate risk: Derivatives carry the risk of adverse changes in the price due to change in interest rates. Liquidity risk: During the life of the derivative, the benchmark might become illiquid and might not be fully capturing the interest rate changes in the market, or the selling, unwinding prices might not reflect the underlying assets, rates and indices, leading to loss of value of the portfolio. Risks associated with Covered Call Strategy Writing call options are highly specialized activities and entail higher than ordinary investment risks. In such investment strategy, the profits from call option writing is capped at the option premium, however the downside depends upon the increase in value of the underlying equity shares. This downside risk is reduced by writing covered call options. The Scheme may write covered call option only in case it has adequate number of underlying equity shares as per regulatory requirement. This would lead to setting aside a portion of investment in underlying equity shares. If covered call options are sold to the maximum extent allowed by regulatory authority, the scheme may not be able to sell the underlying equity shares immediately if the view changes to sell and exit the stock. The covered call options need to be unwound before the stock positions can be liquidated. This may lead to a loss of opportunity, or can cause exit issues if the strike price at which the call option contracts have been written become illiquid. Hence, the scheme may not be able to sell the underlying equity shares, which can lead to temporary illiquidity of the underlying equity shares and result in loss of opportunity. The writing of covered call option would lead to loss of opportunity due to appreciation in value of the underlying equity shares. Hence, when the appreciation in equity share price is more than the option premium received the scheme would be at a loss. The total gross exposure related to option premium paid and received must not exceed the regulatory limits of the net assets of the scheme. This may restrict the ability of Scheme to buy any options. Risks associated with investing in foreign securities/ overseas investments/ offshore securities • Subject to necessary approvals and within the investment objectives of the Scheme, the

Scheme may invest in overseas markets which carry risks related to fluctuations in the


foreign exchange rates, the nature of the securities market of the country, repatriation of capital due to exchange controls and political circumstances.

• Since the Scheme would invest only partially in foreign securities, there may not be readily available and widely accepted benchmarks to measure performance of such Scheme. To manage risks associated with foreign currency and interest rate exposure, the Fund may use derivatives for efficient portfolio management and hedging and portfolio rebalancing and in accordance with conditions as may be stipulated under the Regulations and by RBI from time to time.

• Investment in Foreign Securities involves a currency risk. To the extent that the assets of the Scheme will be invested in securities denominated in foreign currencies, the Indian Rupee equivalent of the net assets, distributions and income may be adversely affected by changes in the value of certain foreign currencies relative to the Indian Rupee. The repatriation of capital to India may also be hampered by changes in regulations concerning exchange controls or political circumstances as well as the application to it of other restrictions on investment.

Risks associated with Repo transactions in Corporate Bonds The Scheme may be exposed to counter party risk in case of repo lending transactions in the event of the counterparty failing to honour the repurchase agreement. However in repo transactions, the collateral may be sold and a loss is realized only if the sale price is less than the repo amount. The risk is further mitigated through over-collateralization (the value of the collateral being more than the repo amount). Risk associated with Investments in REITs and InvITs • Price-Risk or Interest-Rate Risk: REITs & InvITs run price-risk or interest-rate risk. Generally,

when interest rates rise, prices of existing 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. REITs & InvITs are likely to have volatile cash flows as the repayment dates would not necessarily be pre scheduled.

• Liquidity or Marketability Risk: This refers to the ease with which a security can be sold at or near to its valuation yield-to-maturity (YTM). The primary measure of liquidity risk is the spread between the bid price and the offer price quoted by a dealer. As these products are new to the market they are likely to be exposed to liquidity risk.

• Reinvestment Risk: Investments in REITs & InvITs may carry reinvestment 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.

• Risk of lower than expected distributions: The distributions by the REIT or InvIT will be based on the net cash flows available for distribution. The amount of cash available for distribution principally depends upon the amount of cash that the REIT/ InvITs receives as dividends or the interest and principal payments from portfolio assets.

The above are some of the common risks associated with investments in REITs & InvITs. There can be no assurance that investment objectives will be achieved, or that there will be no loss of capital. Investment results may vary substantially on a monthly, quarterly or annual basis. Risks associated with transaction in Units through stock exchange(s) In respect of transaction in Units of the Scheme through BSE and / or NSE, allotment and redemption of Units on any Business Day will depend upon the order processing / settlement by BSE and / or NSE and their respective clearing corporations on which the Fund has no control. Risk Factor associated with debt instruments having credit enhancement: The Scheme may invest in debt instruments having credit enhancement backed by equity shares/guarantees or other any assets as collateral. The profile of these issuers tend to be relatively weak and there may be a pledge of shares of a related party to enhance credit quality or guarantees provided or any other asset provided as security acceptable to lenders.


Where equity shares are provided as collateral there is the risk of sharp price volatility of underlying securities which may lead to erosion in value of collateral which may affect the ability of the fund to enforce collateral and recover capital and interest obligations. Also there is a possibility of guarantor going insolvent which also can impact the recovery value of exposure. In case of credit enhanced structures backed by equity share the liquidity of the underlying shares may be low leading to a lower recovery and a higher impact cost of liquidation. In case of other assets provided recovery value and enforce ability of asset can also be a risk factor which can lower the recovery value. Risk associated with Short Selling & Securities Lending Securities Lending is lending of securities through an approved intermediary to a borrower under an agreement for a specified period with the condition that the borrower will return equivalent securities of the same type or class at the end of the specified period along with the corporate benefits accruing on the securities borrowed. There are risks inherent in securities lending, including the risk of failure of the other party, in this case the approved intermediary to comply with the terms of the agreement. Such failure can result in a possible loss of rights to the collateral, the inability of the approved intermediary to return the securities deposited by the lender and the possible loss of corporate benefits accruing thereon. Short-selling is the sale of shares or securities that the seller does not own at the time of trading. Instead, he borrows it from someone who already owns it. Later, the short seller buys back the stock/security he shorted and returns the stock/security to the lender to close out the loan. The inherent risks are Counterparty risk and liquidity risk of the stock/security being borrowed. The security being short sold might be illiquid or become illiquid and covering of the security might occur at a much higher price level than anticipated, leading to losses. B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME The Scheme shall have a minimum of 20 Investors and no single Investor shall account for more than 25% of the corpus of the Scheme.. . The aforesaid conditions should be complied with in each calendar quarter on an average basis. In case the Scheme does not have a minimum of 20 Investors on an ongoing basis for each calendar quarter, the provisions of Regulation 39(2)(c) of the SEBI (MF) Regulations would become applicable automatically without any reference from SEBI and accordingly the Scheme shall be wound up and the units would be redeemed at Applicable NAV. If there is a breach of the 25% limit by any Investor over the quarter, a rebalancing period of one month would be allowed and thereafter the Investor who is in breach of the rule shall be given 15 days’ notice to redeem his exposure over the 25% limit. Failure on the part of the said investor to redeem his exposure over the 25% limit within the aforesaid 15 days would lead to automatic Redemption by the Mutual Fund at the Applicable NAV on the 15th day of the notice period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in this regard. C. SPECIAL CONSIDERATIONS, if any • Prospective investors should study this Scheme Information Document and Statement of

Additional Information carefully in its entirety and should not construe the contents hereof as advise relating to legal, taxation, financial, investment or any other matters and are advised to consult their legal, tax, financial and other professional advisors to determine possible legal, tax, financial or other considerations of subscribing to or redeeming Units, before making a decision to invest/redeem/hold Units.

• The Scheme related documents i.e. SID/ KIM/ SAI or the units of the Fund are not registered in any jurisdiction including the United States of America nor in any provincial/ territorial jurisdiction in Canada. The distribution of the Scheme related document in certain jurisdictions may be restricted or subject to registration requirements and, accordingly, persons who come into possession of the Scheme related documents are required to inform themselves about, and to observe any such restrictions. No persons receiving a copy of this Scheme related documents or any accompanying application form in such jurisdiction may treat these Scheme related documents or such application form as constituting an invitation to them to subscribe for units, nor should they in any event use any


such application form, unless in the relevant jurisdiction such an invitation could lawfully be made to them and such application form could lawfully be used without compliance with any registration or other legal requirements. Accordingly the Scheme related documents do not constitute an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not lawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation as per applicable law.

• The AMC, Trustee or the Mutual Fund have not authorized any person to issue any advertisement or to give any information or to make any representations, either oral or written, other than that contained in this Scheme Information Document or the Statement of Additional Information or as is provided by the AMC in connection with this offering. Prospective investors are advised not to rely upon any information or representation not incorporated in the Scheme Information Document or Statement of Additional Information or provided by the AMC as having been authorized by the Mutual Fund, the AMC or the Trustee.

• Redemption due to change in the fundamental attributes of the Scheme or due to any other reasons may entail tax consequences. The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for any such tax consequences that may arise due to such redemptions.

• The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for any of the tax consequences that may arise, in the event that the Scheme is wound up for the reasons and in the manner provided in Statement of Additional Information.

• The tax benefits described in this Scheme Information Document and Statement of Additional Information are as available under the present taxation laws and are available subject to relevant conditions. The information given is included only for general purpose and is based on advice received by the AMC regarding the law and practice currently in force in India as on the date of this Scheme Information Document and the Unit holders should be aware that the relevant fiscal rules or their interpretation may change. As is the case with any investment, there can be no guarantee that the tax position or the proposed tax position prevailing at the time of an investment in the Scheme will endure indefinitely. In view of the individual nature of tax consequences, each Unit holder is advised to consult his / her own professional tax advisor.

• The Mutual Fund may disclose details of the investor’s account and transactions thereunder to those intermediaries whose stamp appears on the application form or who have been designated as such by the investor. In addition, the Mutual Fund may disclose such details to the bankers, as may be necessary for the purpose of effecting payments to the investor. The Fund may also disclose such details to regulatory and statutory authorities/bodies as may be required or necessary.

• In case the AMC or its Sponsor or its Shareholders or their affiliates/associates or group companies make substantial investment, either directly or indirectly in the Scheme redemption of Units by these entities may have an adverse impact on the performance of the Scheme. This may also affect the ability of the other Unit holders to redeem their Units.

• As the liquidity of the Scheme investments may sometimes be restricted by trading volumes and settlement periods, the time taken by the Fund for Redemption of Units may be significant in the event of an inordinately large number of Redemption Requests or of a restructuring of the Scheme portfolio. In view of this, the AMC / Trustee has the right to limit redemptions under certain circumstances - please refer to the paragraph “Suspension/Restriction on redemption of units of the Scheme”.

• Pursuant tothe provisions of Prevention of Money Laundering Act, 2002, if after due diligence, the AMC believes that any transaction is suspicious in nature as regards money laundering, on failure to provide required documentation, information, etc. by the Unit holder the AMC shall have absolute discretion to report such suspicious transactions to FIU-IND and / or to freeze the folios of the investor(s), reject any application(s) / allotment of Units.

D. DEFINITIONS


"AMC" / "Asset Management Company" / "Investment Manager"

Axis Asset Management Company Ltd., incorporated under the provisions of the Companies Act, 1956 and approved by Securities and Exchange Board of India to act as the Asset Management Company for the scheme(s) of Axis Mutual Fund.

"Applicable NAV" The NAV applicable for purchase or redemption or switching of Units based on the time of the Business Day on which the application is time stamped.

“Book Closure” The time during which the Asset Management Company would temporarily suspend Sale, redemption and Switching of Units.

“Business Day” A day other than: (i) Saturday and Sunday; (ii) A day on which the banks in Mumbai and/or RBI are closed for

business /clearing; (iii) A day on which the National Stock Exchange of India Ltd. and / or

the Stock Exchange, Mumbai are closed; (iv) A day which is a public and /or bank Holiday at an Investor Service

Centre/Official Point of Acceptance where the application is received;

(v) A day on which Sale / Redemption / Switching of Units is suspended by the AMC;

(vi) A day on which normal business cannot be transacted due to storms, floods, bandhs, strikes or such other events as the AMC may specify from time to time.

The AMC reserves the right to declare any day as a Business Day or otherwise at any or all Investor Service Centres/Official Points of Acceptance.

"Business Hours" Presently 9.30 a.m. to 5.30 p.m. on any Business Day or such other time as may be applicable from time to time.

"Custodian" A person who has been granted a certificate of registration to carry on the business of custodian of securities under the Securities and Exchange Board of India (Custodian of Securities) Regulations 1996, which for the time being is Deutsche Bank AG.

"Depository" Depository as defined in the Depositories Act, 1996 (22 of 1996). "Derivative" Derivative includes (i) a security derived from a debt instrument, share,

loan whether secured or unsecured, risk instrument or contract for differences or any other form of security; (ii) a contract which derives its value from the prices, or index of prices, or underlying securities.

"Dividend" Income distributed by the Mutual Fund on the Units. "Equity Related Instruments"

Includes convertible bonds and debentures, convertible preference shares, warrants carrying the right to obtain equity shares, equity derivatives and any other like instrument.

"FII" Foreign Institutional Investor, registered with SEBI under the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995, as amended from time to time.

“Foreign Portfolio Investor” / “FPI”

A person who satisfies the eligibility criteria prescribed under regulation 4 of Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014 and has been registered under Chapter II of these regulations, which shall be deemed to be an intermediary in terms of the provisions of the Act. It is to be noted that any foreign institutional investor or qualified foreign investor who holds a valid certificate of registration shall be deemed to be a foreign portfolio investor till the expiry of the block of three years for which fees have been paid as per the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995.

"Floating Rate Floating rate debt instruments are debt securities issued by Central and


Debt Instruments" / or State Government, corporates or PSUs with interest rates that are reset periodically. The periodicity of the interest reset could be daily, monthly, quarterly, half-yearly, annually or any other periodicity that may be mutually agreed with the issuer and the Fund. The interest on the instruments could also be in the nature of fixed basis points over the benchmark gilt yields.

“Foreign Securities”

ADRs / GDRs/ equity / debt securities of overseas companies listed on the recognized stock exchanges overseas or other securities as may be specified and permitted by SEBI and/or RBI from time to time.

"Gilts" / "Government Securities"

Securities created and issued by the Central Government and/or a State Government (including Treasury Bills) or Government Securities as defined in the Public Debt Act, 1944, as amended or re-enacted from time to time.

“GOI” Government of India “Holiday” Holiday means the day(s) on which the banks (including the Reserve

Bank of India) are closed for business or clearing in Mumbai or their functioning is affected due to a strike / bandh call made at any part of the country or due to any other reason.

"Investment Management Agreement"

The agreement dated June 27, 2009 entered into between Axis Mutual Fund Trustee Ltd. and Axis Asset Management Company Ltd., as amended from time to time.

“Infrastructure Investment Trust” / “InvIT”

InvIT shall have the meaning assigned in clause (za) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014.

"Investor Service Centres" / "ISCs"

Offices of Axis Asset Management Company Ltd. or such other centres / offices as may be designated by the AMC from time to time.

“Large Cap Stocks”

1st to 100th company in terms of full market capitalisation. The AMC would adopt the list of stocks prepared by AMFI in accordance with methodology prescribed by SEBI (or as per any other methodology as may be prescribed by SEBI from time to time). The list of Large Cap companies would be updated every six months based on data as on end of June and December of each year or as may be prescribed by SEBI. The data will be updated by AMC on being made available by AMFI. Subsequent to any updation in the list, the portfolios will be rebalanced (if required), within a period of one month.

"Load" In the case of Redemption / Switch out of a Unit, the sum of money deducted from the Applicable NAV on the Redemption / Switch out (Exit Load) and in the case of Sale / Switch in of a Unit, a sum of money to be paid by the prospective investor on the Sale / Switch in of a Unit (Entry Load) in addition to the Applicable NAV. Presently, entry load cannot be charged by mutual fund schemes.

“Mid Cap Stocks” 101st - 250th company in terms of full market capitalization. The AMC would adopt the list of stocks prepared by AMFI in accordance with methodology prescribed by SEBI (or as per any other methodology as may be prescribed by SEBI from time to time). The list of Mid Cap companies would be updated every six months based on data as on end of June and December of each year or as may be prescribed by SEBI. The data will be updated by AMC on being made available by AMFI.


Subsequent to any updation in the list, the portfolios will be rebalanced (if required), within a period of one month.

"Money Market Instruments"

Includes commercial papers, commercial bills, treasury bills, Government securities having an unexpired maturity upto one year, call or notice money, certificate of deposit, usance bills and any other like instruments as specified by the Reserve Bank of India from time to time.

"Mutual Fund" / "the Fund"

Axis Mutual Fund, a trust set up under the provisions of the Indian Trusts Act, 1882.

"Net Asset Value" / "NAV"

Net Asset Value per Unit of the Scheme, calculated in the manner described in this Scheme Information Document or as may be prescribed by the SEBI (MF) Regulations from time to time.

"NRI" A Non-Resident Indian or a Person of Indian Origin residing outside India. "Official Points of Acceptance"

Places, as specified by AMC from time to time where application for Subscription / Redemption / Switch will be accepted on ongoing basis.

"Person of Indian Origin"

A citizen of any country other than Bangladesh or Pakistan, if (a) he at any time held an Indian passport; or (b) he or either of his parents or any of his grandparents was a citizen of India by virtue of Constitution of India or the Citizenship Act, 1955 (57 of 1955); or (c) the person is a spouse of an Indian citizen or person referred to in sub-clause (a) or (b).

"Rating" Rating means an opinion regarding securities, expressed in the form of standard symbols or in any other standardized manner, assigned by a credit rating agency and used by the issuer of such securities, to comply with any requirement of the SEBI (Credit Rating Agencies) Regulations, 1999.

"RBI" Reserve Bank of India, established under the Reserve Bank of India Act, 1934, (2 of 1934)

“Real Estate Investment Trust” / “REIT”

REIT shall have the meaning assigned in clause (zm) of sub-regulation 1 of regulation 2 of the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014.

"Registrar and Transfer Agent" / “Registrar”

KFin Technologies Pvt. Ltd., Hyderabad, currently acting as registrar to the Scheme, or any other Registrar appointed by the AMC from time to time.

"Redemption” / “Repurchase"


“Regulatory Agency”

GOI, SEBI, RBI or any other authority or agency entitled to issue or give any directions, instructions or guidelines to the Mutual Fund

“Repo” Sale/Purchase of Securities with simultaneous agreement to repurchase / resell them at a later date.

"Statement of Additional Information" / "SAI"

The document issued by Axis Mutual Fund containing details of Axis Mutual Fund, its constitution, and certain tax, legal and general information. SAI is legally a part of the Scheme Information Document.

"Sale” / “Subscription"

Sale or allotment of Units to the Unit holder upon subscription by the Investor / applicant under the Scheme.

"Scheme" Axis Growth Opportunities Fund “Scheme Information Document”

This document issued by Axis Mutual Fund, offering for Subscription of Units of the Scheme (including Options thereunder)

"SEBI" Securities and Exchange Board of India, established under the Securities and Exchange Board of India Act, 1992.

"SEBI (MF) Regulations" / "Regulations"

Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended from time to time.

"Short Selling" Short selling means selling a stock which the seller does not own at the time of trade.

"Sponsor" Axis Bank Ltd. "Switch" Redemption of a Unit in any Scheme (including the Plans / options

therein) of the Mutual Fund against purchase of a Unit in another


Scheme (including the Plans /options therein) of the Mutual Fund, subject to completion of Lock-in Period, if any.

"Stock Lending" Lending of securities to another person or entity for a fixed period of time, at a negotiated compensation in order to enhance returns of the portfolio.

“Systematic Investment Plan”/ “SIP”

A plan enabling investors to save and invest in the Scheme on a periodic basis submitting postdated cheques / payment instructions.

“Systematic Transfer Plan” / “STP”

Facility given to the Unit holders to transfer sums on periodic basis from one scheme to another schemes launched by the Mutual Fund from time to time by giving a single instruction.

“Systematic Withdrawal Plan” / “SWP”

Facility given to the Unit holders to withdraw a specified sum of money monthly/quarterly/half yearly/annually from his investment in the Scheme.

“Dividend Sweep option” / “DSO”

Facility given to the Unit holders to automatically invest the dividend by eligible source scheme into eligible target scheme of the Mutual Fund.

“Tri Party Repos” Tri-party repo means a repo contract where a third entity (apart from the borrower and lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the repo to facilitate services like collateral selection, payment and settlement, custody and management during the life of the transaction.

"Trust Deed" The Trust Deed dated June 27, 2009 made by and between Axis Bank Ltd. and Axis Mutual Fund Trustee Ltd. thereby establishing an irrevocable trust, called Axis Mutual Fund.

“Trustee” / “Trustee Company”

Axis Mutual Fund Trustee Ltd., incorporated under the provisions of the Companies Act, 1956 and approved by SEBI to act as the trustee to the Scheme of the Mutual Fund.

"Unit" The interest of the Unit holder which consists of each Unit representing one undivided share in the assets of the Scheme.

"Unit holder" / "Investor"

A person holding Units in Axis Growth Opportunities Fund.

INTERPRETATION For all purposes of this Scheme Information Document, except as otherwise expressly provided or unless the context otherwise requires: • all references to the masculine shall include the feminine and all references, to the singular

shall include the plural and vice-versa. • all references to "dollars" or "$" refer to United States Dollars and "Rs" refer to Indian Rupees.

A "crore" means "ten million" and a "lakh" means a "hundred thousand". • all references to timings relate to Indian Standard Time (IST). • References to a day are to a calendar day including a non-Business Day.


E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY It is confirmed that: (i) The Scheme Information Document forwarded to SEBI is in accordance with the SEBI

(Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time.

(ii) All legal requirements connected with the launching of the Scheme as also the guidelines, instructions, etc., issued by the Government and any other competent authority in this behalf, have been duly complied with.

(iii) The disclosures made in the Scheme Information Document are true, fair and adequate to enable the investors to make a well informed decision regarding investment in the Scheme.

(iv) The intermediaries named in the Scheme Information Document and Statement of Additional Information are registered with SEBI and their registration is valid, as on date.

Place: Mumbai Signed : Sd/- Date: August 14, 2020 Name : Darshan Kapadia

Designation : Compliance Officer


II. INFORMATION ABOUT THE SCHEME A. TYPE OF THE SCHEME An Open-ended Equity Scheme investing in both large and mid cap stocks. B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? To generate long term capital appreciation by investing in a diversified portfolio of Equity & Equity Related Instruments both in India as well as overseas. However, there can be no assurance that the investment objective of the Scheme will be achieved. C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? Under normal circumstances, the asset allocation pattern will be:

Instruments Indicative allocations

(% of total assets) Risk Profile

Minimum Maximum High/ Medium/Low

Equity & Equity Related Instruments of Large Cap Stocks #^

35 65 High

Equity & Equity Related Instruments of Mid Cap Stocks #^

35 65 High

Other Equity and Equity related instruments 0 30 High Debt and Money Market Instruments*# 0 30 Low to

Medium Units issued by REITs & InvITs 0 10 Medium to

High The cumulative gross exposure through equity, debt, units issued by REITs & InvITs and derivative positions shall not exceed 100% of the net assets of the Scheme. The Scheme may investment in foreign securities including ADRs / GDRs / other securities subject to SEBI (MF) Regulations. Such Investment shall not exceed 35% of the net assets of the Scheme. ^ Includes Foreign Equity & Equity related instruments up to 35% of the net assets of the fund. The market capitalization classification viz large cap/mid cap/small cap of such instruments will be determined based on the range of market capitalization of list of stocks provided by AMFI, in accordance with methodology prescribed by SEBI. # including derivatives instruments to the extent of 70% of the Net Assets as permitted by the Regulations from time to time. The Scheme may use derivatives for such purposes as maybe permitted by the Regulations, including for the purpose of hedging and portfolio balancing, based on the opportunities available and subject to guidelines issued by SEBI from time to time. The Scheme may also use fixed income derivative instruments subject to the guidelines as maybe issued by SEBI and RBI and for such purposes as maybe permitted from time to time. *Investment in Securitized debt (excluding foreign securitized debt), if undertaken, would not exceed 30% of the net assets of the Scheme. The Scheme shall not invest in foreign securitized debt and Credit default Swaps The Scheme may undertake repo transactions in corporate debt securities in accordance with the directions issued by RBI and SEBI from time to time. Such investment shall be made subject to the guidelines which may be prescribed by the Board of Directors of the Asset Management Company and Trustee Company.


Pending deployment of the funds in securities in terms of investment objective of the Scheme, the AMC may park the funds of the Scheme in short term deposits of the Scheduled Commercial Banks, subject to the guidelines issued by SEBI from time to time. The Scheme retains the flexibility to invest across all the securities in the equity, debt and Money Markets Instruments and mutual fund units. The portfolio may hold cash depending on the market condition. The Scheme shall adhere to the following limits should it engage in Stock Lending. 1. Not more than 25% of the net assets of the Scheme can generally be deployed in Stock

Lending. 2. Not more than 5% of the net assets of the Scheme can generally be deployed in Stock

Lending to any single counter party (as may be applicable). The Scheme may engage in short selling of securities in accordance with the framework relating to short selling and securities lending and borrowing specified by SEBI. Subject to the Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. These proportions can vary substantially depending upon the perception of the fund manager; the intention being at all times to seek to protect the interests of the Unit holders. Such changes in the investment pattern will be for short term and for defensive considerations only. In the event of deviations, the fund manager will endeavour to carry out rebalancing within 30 Business Days. Where the portfolio is not rebalanced within 30 Business Days, justification for the same shall be placed before the Investment Review Committee and reasons for the same shall be recorded in writing. The Investment Review committee shall then decide on the course of action. However, at all times the portfolio will adhere to the overall investment objectives of the Scheme. Axis Growth Opportunities Fund, An Open-ended Equity Scheme investing in both large cap and mid cap stocks is a new scheme offered by Axis Mutual Fund and is not a minor modification of any other existing scheme/product of Axis Mutual Fund. Differentiation is as follows:


Differentiation with existing open ended equity schemes of Axis Mutual Fund are as follows: Data as on July 31, 2020 (in INR crores)

Name of the existing

scheme

Asset Allocation Pattern (Under normal circumstances)

Primary Investment Objective & Investment Strategy

Differentiation AUM No. of Folios

Axis Long Term Equity Fund

Instruments


Risk Profile

Minimum

Maximum

Low/ Medium/ High

Equity and equity- related Securities

80% - 100% High

Debt and money market instruments

0% - 20% Low to Medium

Primary Investment Objective: The investment objective of the Scheme is to generate income and long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related Securities. However, there can be no assurance that the investment objective of the Scheme will be achieved.

Investment Strategy: The Scheme will invest in a diversified portfolio of strong growth companies with sustainable business models. Though the benchmark is S&P BSE-200, the investments will not be limited to the companies constituting the benchmark. The portfolios will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a fundamentals based research process to analyse the appreciation potential of each stock in its universe. The universe of stocks is carefully selected to include companies having robust business models and enjoying sustainable competitive

An open ended equity linked saving scheme with a statutory lock in of 3 year and tax benefit

21,059.97 20,66,228


advantages as compared to their competitors. The Fund will have the flexibility to invest across the market capitalization spectrum. The Scheme will endeavour to remain fully invested in equity and equity-related instruments at all times.

Axis Midcap Fund

Instruments


assets)

Risk Profile

Minimum

Maximum

High/Medium/ Low

Equity and Equity Related Instruments of Mid-cap companies

65%

100% High

Equity and Equity Related Instruments of non Mid-cap Companies

0% 35%

High


0% 35%

Low to Medium


0 10 Medium to High

Primary Investment Objective: To achieve long term capital appreciation by investing predominantly in equity & equity related instruments of Mid Cap companies. Investment Strategy: Axis Midcap Fund endeavors to generate capital appreciation through an actively managed diversified portfolio of primarily larger mid-cap companies. The portfolio will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a ""Fair value"" based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include companies having a robust business models and enjoying sustainable competitive advantages as compared to their

An open ended equity scheme predominantly investing in Mid Cap companies

5,869.04 4,62,843


competitors. The Fund will, mainly, invest in mid-cap companies. Mid-cap companies, as they are in a stage of growth, may be valued higher than their fair value. However, the Fund intends to identify such strong growth companies & take advantage of their future appreciation. The Fund by utilising a holistic risk management strategy will endeavour to manage risks associated with investing in equity markets. The Fund has identified the following risks and designed risk management strategies, which are embedded in the investment process to manage these risks- i. Quality Risk - Risk of investing in unsustainable / weak companies. ii. Price Risk - Risk of overpaying for a company iii. Liquidity Risk - High Impact cost of entry and exit iv. Volatility Risk - Volatility in price due to company or portfolio specific factors v. Event Risk - Price risk due to a company / sector specific or market event

Axis Focused 25 Fund

Instruments


Risk Profile

Minimum Maximum Low/

Medium/

Primary Investment Objective: To generate long term capital appreciation by investing in a concentrated portfolio of equity & equity related instruments of up to 25 companies.

An Open-ended Equity Scheme investing in maximum 25 stocks investing in large cap, mid

11,042.41 8,29,585


High Equity and Equity Related Instruments (of not exceeding 25 companies)

65 100 High


0 35 Low to Medium


0 10 Medium to High

Investment Strategy: The scheme aims to generate long term capital appreciation by investing in a concentrated portfolio of equity & equity related instruments of up to 25 companies. In order to have a concentrated portfolio, the scheme will follow a bottom up stock selection approach. The portfolio will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a ""Fair value"" based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include companies having a robust business models and enjoying sustainable competitive advantages as compared to their competitors.

cap and small cap companies

Axis Bluechip Fund

Instruments Indicative allocations (% of total

assets)

Risk Profile

Primary Investment Objective: To achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities of Large Cap


15,963.00 15,10,841


Minimum Maximum

High/ Medium/

Low Equity and Equity Related Instruments of Large Cap companies

80 100 High

Equity and Equity Related Instruments of other companies

0 20 High


0 20 Low to Medium


0 10 Medium to High

companies including derivatives. However, there can be no assurance that the investment objective of the Scheme will be achieved. Investment Strategy: The Scheme will invest predominantly in Equity and Equity Related Instruments of Large Cap companies with strong growth and sustainable business models, whilst managing risk. The portfolios will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The AMC employs a “Fair value” based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include companies having robust business models and enjoying sustainable competitive advantages as compared to their competitors.

Axis Multicap Fund

Instruments Normal


Risk Profile

Minimum

Maximum

High/ Medium/ Low

Primary Investment Objective: To generate long term capital appreciation by investing in a diversified portfolio of equity and equity related instruments across market capitalization. However, there is no assurance or guarantee that the investment objective of

An open ended equity scheme investing across large cap, mid cap, small cap stocks

6,276.25 4,75,921

scheme information document axis bluechip fund an …

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