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The information and data contained in this Website do not constitute distribution, an offer to buy or sell or solicitation of an offer to buy or sell any Schemes/Units of HDFC Mutual Fund, securities or financial instruments in any jurisdiction in which such distribution, sale or offer is not authorised. The material/information provided in this Website is for the limited purposes of information only for the investors. In particular, the information herein is not for distribution and does not constitute an offer to buy or sell or solicitation of an offer to buy or sell any Schemes/Units of HDFC Mutual Fund, securities or financial instruments to any person in the United States of America ('USA')/Canada.

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FAQs Home / FAQs

 
FAQs

Acquisition of Morgan Stanley Mutual Fund (MSMF) Schemes by HDFC Mutual Fund (HDFC MF)

  • Has HDFC Mutual Fund (HDFCMF) acquired Morgan Stanley Mutual Fund (MSMF)?
    HDFCMF has acquired only the schemes of MSMF and not the asset management company.

  • What does “Transaction” mean in context with the acquisition of Morgan Stanley Mutual Fund Schemes (MSMF)?
    The entire process of transfer of 8 mutual fund schemes of MSMF to HDFC Mutual Fund and corresponding change in the sponsorship, trusteeship, management and administration of the Schemes is known as “Transaction”.

  • When did such an agreement take place between the two parties?
    The Scheme Transfer Agreement was signed on December 23, 2013 between Morgan Stanley Investment Management Pvt. Ltd., Board of Trustees of Morgan Stanley Mutual Fund, HDFC Asset Management Company Ltd. and HDFC Trustee Company Ltd. Further, SEBI confirmed its no objection to the aforesaid Transaction as well as Changes to the Schemes and approved the proposed amendment to the Morgan Stanley Trust Deed vide its letter no. OW/13156/2014 dated May 8, 2014.

  • What is a “Completion Date”? When is the Completion Date? What will happen to the Schemes upon Completion?

    (i) The “Completion Date” is the date when the process of transfer of 8 mutual fund schemes of Morgan Stanley Mutual Fund (MSMF) to HDFC Mutual Fund (HDFC MF) and corresponding change in the sponsorship, trusteeship, management and administration of the Schemes will be completed.
    (ii) Morgan Stanley Investment Management Pvt. Ltd. and HDFC Asset Management Company Ltd. will issue public notices informing the investors about the Completion and the coming into effect of the Changes to the Schemes (explained below).
    (iii) Upon Completion, the MSMF Schemes will become an integral part of HDFC Mutual Fund and the unit holders of the Schemes will have rights, privileges and obligations under the Schemes as per the amended Scheme Information Documents (SID) and Key Information Memorandum (KIM) issued by HDFC Asset Management Company Ltd. The updated SID and KIM of the Schemes containing the revised provisions shall be made available with the Investor Service Centres of HDFC Mutual Fund and will also be displayed on HDFC Mutual Fund website immediately after the Completion Date.

  • Is there any public notice that can be referred by me for the same?
    Yes. Morgan Stanley Mutual Fund has issued a notice detailing the aforesaid proposed changes in May 14, 2014 issue of Business Standard and Navshakti (Marathi newspaper) for the benefit of the unit holders. The same can also be viewed on the Morgan Stanley Mutual Fund website –

  • Please clarify in detail the “Changes to the Schemes” i.e. out of the 8 schemes, which schemes will be merged and which schemes will undergo change in name and fundamental attributes?
    The “Changes to the Schemes” are explained below:

    Current Names, and Type of the Schemes Type of Change New Names/Surviving Schemes, and Type of the Schemes
    Morgan Stanley Growth Fund
    (Open Ended Equity Fund)
    Change in Name and Fundamental Attributes HDFC Large Cap Fund
    (Open- ended equity scheme)
    Morgan Stanley A.C.E Fund
    (Open Ended Across Capitalizations Equity Fund)
    Change in Name and Fundamental Attributes HDFC Small and Midcap Fund
    (Open-ended equity scheme)
    Morgan Stanley Gilt Fund
    (Open Ended Gilt Fund) 
    Change in Name and Fundamental Attributes HDFC Inflation Indexed Bond Fund
    (Open-ended income scheme)
    Morgan Stanley Multi Asset Fund (Plan A and Plan B)
    (Open Ended Debt Fund)
    Change in Name and Fundamental Attributes HDFC Dynamic PE Ratio Fund of Funds**
    (Open-ended fund of funds scheme)
    Morgan Stanley Liquid Fund
    (Open Ended Liquid Fund)
    Merger HDFC Liquid Fund
    (Open- ended liquid income scheme)
    Morgan Stanley Ultra Short Term Fund
    (Open Ended Debt Fund)
    Merger HDFC Cash Management Fund – Treasury Advantage Plan
    (Open-ended income scheme)
    Morgan Stanley Active Bond Fund
    (Open Ended Debt Fund)
    Merger HDFC High Interest Fund - Dynamic Plan
    (Open-ended income scheme)
    Morgan Stanley Short Term Bond Fund
    (Open Ended Debt Fund)
    Merger HDFC Short Term Plan*
    (Open-ended income scheme)
    * HDFC Short Term Plan will undergo a change in fundamental attributes after the close of business hours on June 20, 2014.

    ** As part of change in fundamental attributes of Morgan Stanley Multi Asset Fund (Plan A and Plan B), Plan A will be renamed as HDFC Dynamic PE Ratio Fund of Funds and Plan B will be merged into it. To know more details on the Changes to the Schemes, please click here.

  • Will I be allotted units in the corresponding Transferee Scheme (Target Scheme) under the same plan/ option as the Transferor Scheme (Source Scheme)?
    Yes, except in the following schemes:
    (i) Morgan Stanley Short Term Bond Fund - Unit holders under the “Weekly Dividend Option” of this scheme will be allotted units under the “Dividend Option (Monthly frequency)” of HDFC Short Term Plan at the last available applicable NAV on the Completion Date.

    (ii) Morgan Stanley Multi Asset Fund (MSMAF) - “Quarterly Dividend Option under Plan A” will be renamed as “Dividend Option”. Unit holders under “Monthly Dividend Option of Plan A” and under the “Monthly & Quarterly Dividend Options of Plan B” of MSMAF shall be allotted units under this “Dividend Option” at the last available applicable NAV of the Dividend Option on the Completion Date. After merger of Plan B with Plan A, the Scheme will be renamed as HDFC Dynamic PE Ratio Fund of Funds.

  • Why is an “Option Exercise Letter” sent to me?
    As per Regulation 18(15A) of the SEBI (Mutual Funds) Regulations, 1996 (“MF Regulations”), any changes in the fundamental attributes of the Schemes (which includes merger of schemes) can only be carried out after the unit holders of the scheme concerned, have been informed via written communication in order to provide them with the option of exiting the scheme within a period of 30 days without being charged an exit load at the prevailing NAV (Exit Option). In accordance with the said regulation, the “Option Exercise Letter” has been sent to you by Morgan Stanley Mutual Fund.

  • Is Option Exercise Letter sent to all the unit holders of Morgan Stanley Mutual Fund?
    Existing unit holders whose valid applications have been received by Morgan Stanley Mutual Fund till the applicable cut-off time on May 14, 2014 (“eligible unitholders”) can only exercise the Exit Option. Hence the Option Exercise Letter has been sent by Morgan Stanley Mutual Fund to only the aforementioned unit holders.

  • When is the Exit Option Period?
    The period of 30 calendar days from May 22, 2014 to June 20, 2014 (both days inclusive) upto the applicable cut-off time, is the Exit Option Period wherein existing unit holders (i.e. whose valid applications have been received by Morgan Stanley Mutual Fund till the applicable cut-off time on May 14, 2014) can exercise the Exit Option and will not be charged any exit load for exiting from the Scheme.

  • If I have invested on any date till the aforementioned Completion Date, will I be eligible to redeem from the Scheme without payment of any exit load?
    No. The Exit Option must be exercised between May 22, 2014 to June 20, 2014 (both days inclusive) (upto the applicable cut-off time) to exit without payment of exit load by those existing unit holders whose valid investment applications have been received by Morgan Stanley Mutual Fund upto the applicable cut-off time on the record date, which is May 14, 2014.

  • If I do not wish to stay invested in the schemes due to the proposed changes, is there any option available to exit? Where should I submit such a request to exit?
    Yes, existing unit holders whose valid applications have been received by Morgan Stanley Mutual Fund till the applicable cut-off time on May 14, 2014, can redeem their units at applicable Net Asset Value (“NAV”) without payment of any exit load from May 22, 2014 to June 20, 2014 (both days inclusive) (upto the applicable cut-off time) (Exit Option Period). Other unit holders can also redeem before the Completion Date but subject to the payment of applicable exit load, if any. The redemption request needs to be submitted at the nearest Morgan Stanley Mutual Fund Investor Service Centres, the details of which are available on the website –

  • When will I receive the redemption proceeds, if I exercise the Exit Option?
    The redemption proceeds will be paid out to you by Morgan Stanley Mutual Fund within 10 working days from the date of receipt of the redemption request. If you do not receive the same by the 10th working day, you may contact nearest Investor Service Centre of Morgan Stanley Mutual Fund or call on the customer service toll-free number - 1800 425 1313.

  • If I submit the redemption before and after the Exit Option Period i.e. before May 22, 2014 or after the applicable cut-off time on June 20, 2014, will I be charged an exit load?
    Yes. Such requests will be subject to the applicable load in respect of the Schemes.

  • Will I be charged STT (Securities Transaction Tax) for redemption of units during Exit Option Period?
    No. STT, if any, on all redemption of units exercised during the Exit Option Period, shall be borne by Morgan Stanley Investment Management Pvt. Ltd.

  • If I have pledged / encumbered my units, can I exercise the Exit Option?
    Yes, you will have the option to exit but only after you procure a release of your pledges/ encumbrances and appropriately communicate the same to Morgan Stanley Mutual Fund prior to applying for redemption and within the aforementioned Exit Option Period.

  • If lien is marked on the units held by me, can I exercise the Exit Option?
    Yes, you will have the option to exit but only after the lien is vacated/ revoked prior to applying for redemption and within the aforementioned Exit Option Period.

  • If I have “No objection” to the proposed changes to the Schemes, do I need to communicate the same to Morgan Stanley Mutual Fund?
    No, there is no action required if you are in agreement with the proposed changes.

  • If I do not exercise the Exit Option or respond to the Option Exercise Letter, what will happen to my investments after the Completion Date?
    Unit holders who do not exercise their exit option on or before applicable cut-off time on June 20, 2014 would be deemed to have consented to the merger/ change in fundamental attributes of Schemes. In case of merger of Schemes, the Transferor Schemes will cease to exist and the unit holders of Transferor Schemes as at the close of business hours on the Completion Date, will be allotted units under the corresponding option of the respective Transferee Schemes at the last available applicable NAV. However, unit holders under the Weekly Dividend Option of Morgan Stanley Short Term Bond Fund will be allotted units under the Dividend Option (Monthly frequency) of HDFC Short Term Plan. In case of change in fundamental attributes of Schemes, there will be no change in the number of units held upon Completion.

  • I have received information about the Morgan Stanley Mutual Fund Scheme merger/ change in attributes but have yet not received the Option Exercise Letter. Please clarify.
    Morgan Stanley Mutual Fund (MSMF) has sent the Option Exercise Letter to their existing unit holders, whose valid investment application have been received by them on May 14, 2014 upto 3.00 p.m. If you fall in the said category of unit holders, but have not received the Option Exercise Letter till May 22, 2014, then please note the below contact details to assist you on the same:
    (i) Customer service toll-free number - 1800 425 1313
    (ii) Karvy Computershare Pvt. Ltd., Karvy Registry House, Unit: Morgan Stanley Mutual Fund, 21, Avenue 4, Street no.1, Banjara Hills, Hyderabad – 500 034.
    (iii) For any additional information, you may contact Ms. Sonali Bendke at Morgan Stanley Investment Management Private Limited, 18F /19F, One Indiabulls Centre, Tower 2, Senapati Bapat Marg, Mumbai – 400013, Telephone: +91 22 6118-2900, Fax: +91 22 6118-1027.

  • If there is pledge / lien / other encumbrance marked on any of my units in the Transferor Schemes of Morgan Stanley Mutual Fund Schemes, will I be allotted units under the corresponding option of the respective Transferee Scheme of HDFC Mutual Fund on Completion Date?
    Yes. Further the pledge / lien / other encumbrance shall be marked on the corresponding number of units allotted to you in the respective Transferee Schemes.

  • Is there any tax liability due to merger of Schemes on the Completion Date OR if I exit from the Schemes?
    Yes. There can be tax liability due to merger of certain schemes of Morgan Stanley Mutual Fund (Transferor Schemes) with the schemes of HDFC Mutual Fund (Transferee Schemes) OR if you exit from the Schemes before the Completion Date. In case of merger, there may be a change in the number of units held in the Transferor Schemes in comparison to the units in the Transferee Schemes. The same may result in capital gain or loss in the hands of the investors, entailing tax consequences. For more clarifications, we would advise you to consult your tax advisors.

  • Will there be any charges incurred by the unit holders additionally due to the aforementioned Transaction?
    No. The expenses for, and directly related to, the Transaction will not be charged to the unit holders of the Schemes, in any manner whatsoever.

  • Why is a ballot paper sent to me in along with the Option Exercise Letter?
    The MS Trust Deed will have to be amended to authorize the MS Trustees to transfer the Schemes and hand over the trusteeship of the Schemes to a third party, viz., HDFC Trustee. In terms of the MF Regulations and the Statement of Additional Information (SAI) of Morgan Stanley Mutual Fund, unit holders votes will have to be solicited through postal ballot for approval of the proposed amendment to the MS Trust Deed. Hence, ballot papers are sent to all unit holders of the Schemes upto the applicable cut-off time on May 14, 2014, as per the records of the registrar in respect of the Schemes i.e. Karvy Computershare Private Limited (“Registrar),. These unit holders are entitled to vote in respect of the proposed amendment under reference by mailing the duly signed and filled-up ballot paper (clearly indicating assent or dissent), such that the ballot paper reaches the Registrar not later than June 10, 2014 for the purpose of determining the results of the ballot. The unit holders may use the business reply envelope enclosed with the Option Exercise letter. Please note that the unit holders shall not have to bear the postal charges for mailing the same. The Registrar will conduct and control the exercise of the postal ballot, and all valid ballot papers will be counted by the Registrar.

  • How many votes will be required to consider the same as consent in favour of the proposed amendment?
    If more than 50% of the total valid votes received including the deemed consent (non-receipt of signed and duly filled in ballot paper by the Registrar by close of business hours on June 10, 2014, will be treated as deemed consent of the unit holder for the proposed amendment of the MS Trust Deed), it will stand approved and will be binding on the unit holders of the Schemes. The results of the ballot will be intimated by Morgan Stanley Mutual Fund way of a letter or by way of a notice/advertisement in a newspaper.

  • Please confirm the address where I need to despatch the ballot paper.
    The same should be sent at the below address which is printed on the business reply inland letter enclosed with the Option Exercise Letter.
    Karvy Computershare Private Ltd.
    Karvy Registry House
    Unit: Morgan Stanley Mutual Fund
    21, Avenue 4, Street no.1, Banjara Hills,
    Hyderabad – 500 034

  • I have a Joint Holder (JH) in my Morgan Stanley Mutual Fund folio. Will the JH also have to cast vote?
    No, only the first-named unit holder shall be entitled to vote.

  • Can I submit transactions (financial and non-financial) between the expiry of Exit Option Period and the Completion date? Where should I submit the same? In case of any queries, whom should I contact during the aforementioned period?
    Since the Schemes will continue to be managed by Morgan Stanley Investment Management Pvt. Ltd. during the period between the expiry of Exit Option Period and the Completion date, you need to submit transactions at the nearest Morgan Stanley Mutual Fund Investor Service Centres till the Completion Date. For any queries, please contact nearest Morgan Stanley Mutual Fund Investor Service Centres or call on the customer service toll-free number - 1800 425 1313.

  • Till when can I submit investments in Morgan Stanley Mutual Fund (MSMF) Schemes, if I wish to and where should the same be submitted?
    You can submit investments in MSMF Schemes at the nearest Morgan Stanley Mutual Fund Investor Service Centres (the details of which are available on their website - till the aforementioned Completion Date, as these Schemes will cease to exist thereafter.

  • Please clarify if my pending systematic instalments registered in Morgan Stanley Mutual Fund Schemes will continue after the Completion Date?
    The same is explained as follows:
    (i) SIP (Systematic Investment Plan) – Will continue in the respective Scheme / Transferee Scheme (in case of merger) of HDFC Mutual Fund as per the registration period, except in case of Morgan Stanley Liquid Fund (since HDFC Liquid Fund does not offer SIP facility).
    (ii) STP (Systematic Transfer Plan) –Will be ceased after the Completion Date.
    (iii) SWP (Systematic Withdrawal Plan) – Will be ceased after the Completion Date.

  • If wish to discontinue the SIP in the Transferee Schemes of HDFC Mutual Fund, please explain the process.
    Prior to the Completion Date, you need to submit SIP cancellation request at the nearest Morgan Stanley Mutual Fund Investor Service Centres atleast 10 days prior to the next instalment date. After the Completion Date, the period of 30 days for SIP cancellation, as per Terms & Conditions of HDFC Mutual Fund, will prevail.

  • If I would like my STP/SWP registered in Morgan Stanley Mutual Fund Schemes to continue in the Transferee Scheme of HDFC Mutual Fund after Completion, what is the procedure?
    You need to submit a new registration form at any of the nearest Investor Service Centres of HDFC Mutual Fund after the Completion Date, if you wish to continue the STP/SWP. Please note that all the Terms & Conditions of HDFC Mutual Fund will prevail for the new registration.

  • Will I be allotted a new folio by HDFC Mutual Fund on the Completion Date?
    No. The folio number allotted to you for your investments in Morgan Stanley Mutual Fund Schemes will be continued after the Schemes become integral part of HDFC Mutual Fund by close of business hours on the Completion Date.

  • Since I am an existing investor of HDFC Mutual Fund, can I consolidate the folio allotted to me for my investments in Morgan Stanley Mutual Fund Schemes with my HDFC Mutual Fund folio?
    Yes, the same is possible after the Completion Date if criteria required for consolidation of folios like same mode of holding etc, are met.

  • What will be the date of subscription for the units allotted in the Transferee after the merger of Morgan Stanley Mutual Fund Schemes with HDFC Mutual Fund Schemes?
    • The units allotted in the Transferee Scheme(s) shall be treated as a fresh subscription. Accordingly, all revised provisions under the Transferee Scheme(s) will apply to such units, except exit load provisions, which shall apply as per the Transferor Scheme(s). Thus, the exit load shall continue to apply as per the Transferor Scheme(s) and the period of holding for the purpose of charging exit load will be computed from the original date of allotment of such units in the Transferor Scheme(s). However, the period of holding for the purpose of taxation will be computed from the Completion Date.
    • Further, unit holders of Morgan Stanley Multi Asset Fund under Monthly Dividend Option of Plan A and under the Monthly & Quarterly Dividend Options of Plan B shall be allotted units under the Quarterly Dividend Option (changed to “Dividend Option”) at the last available applicable NAV of the “Dividend Option” on the Completion Date. Unit holders under Growth Option of Plan B will be allotted units under the Growth Option of Plan A at the last available applicable NAV of Growth Option of Plan A on the Completion Date. After merger of Plan B with Plan A, the scheme will be renamed as HDFC Dynamic PE Ratio Fund of Funds wherein the units allotted shall be treated as a fresh subscription.
  • Will the value of my investments go up or down after or on account of the transfer of schemes?
    As is the case with investments in securities, the value of the holdings in the Schemes may go up or down depending on the factors and forces affecting the securities markets in the ordinary course of business. However, the value of investments will not be impacted on account of transfer of Schemes (the value of your investments will be calculated as per the last available applicable NAV in Transferor Scheme of Morgan Stanley Mutual Fund. Units will be allotted in the Transferee Schemes of HDFC Mutual Fund with the applicable NAV for the same valuation amount at the close of business hours on the Completion Date. Thus, the value of investments will remain the same (subject to TDS for NRIs) and only the number of units will undergo a change based on the applicable NAV).

  • After Completion, how will I know about the NAV and units allotted for my investments under the respective Transferee Schemes of HDFC Mutual Fund?
    You will receive account statements from HDFC Mutual Fund (HDFC MF) so that you can check the details. Additionally, SMS/ email will also be sent to you by HDFC MF as per the registered mobile number / email ID registered in the existing folio.

  • Will Investor Service Centres of Morgan Stanley Mutual Fund accept transactions submitted after the Completion Date?
    No. You need to mandatorily submit all transactions at the nearest Investor Service Centres of HDFC Mutual Fund after the Completion Date.

  • Will the payout mode, as was registered in the folio for my investments with Morgan Stanley Mutual Fund, remain the same after the Completion Date?
    The payout mode for redemption/dividend will be as per your bank details updated in the records on Completion Date and the payout facility offered by HDFC Mutual Fund. You may refer to the account statement sent to you by HDFC Mutual Fund after the Completion Date.

  • For my investments in Morgan Stanley Mutual Fund folio, if I wish to change my bank details, address etc or need any clarifications on the documents to be submitted for the same, whom should I contact?
    Before the Completion Date, all such requests / queries should be submitted at / addressed to Morgan Stanley Mutual Fund Investor Service Centres, the details of which are available on the website – After the Completion Date, you may contact any of the nearest Investor Service Centres of HDFC Mutual Fund.

  • Please explain the procedure to be followed for claiming unclaimed redemption /dividend amount for my investments in Morgan Stanley Mutual Fund Schemes.
    You need to submit the request for reissue / revalidation of instruments towards unclaimed redemption / dividend quoting folio number, scheme name and details of payments not received till the Completion Date at the nearest Morgan Stanley Mutual Fund Investor Service Centres, the details of which are available on the website – . After the Completion Date, you may reach any of the nearest Investor Service Centres of HDFC Mutual Fund.

  • Can I switch from existing HDFC Mutual Fund Schemes into the acquired Morgan Stanley Mutual Fund schemes and vice versa? Will it attract any load?
    You can switch from existing HDFC Mutual Fund Schemes into the acquired Morgan Stanley Mutual Fund Schemes if the investments are held in the same folio and only after the Completion Date. The applicable load will be charged for the switch.

  • If I am not KYC (Know Your Customer) Compliant, will I still be allotted units in HDFC folio upon Completion?
    Yes, as the units form the Transferor Schemes of Morgan Stanley Mutual Fund will be transferred into the Transferee Schemes of HDFC Mutual Fund. However, for subsequent investments with us, you need to compulsorily submit the required documents for KYC Compliance.

  • If I am KYC compliant in Morgan Stanley Mutual Fund folio, do I still need to again submit the KYC documents to HDFC Mutual Fund?
    We request you to check your current KYC status by contacting Morgan Stanley Mutual Fund at the customer services toll-free number - 1800 425 1313. If the status is “verified” then you do not need to submit the KYC documents again. For all other status like invalid, old records etc you need to submit the KYC documents.

  • If I have online access for Morgan Stanley Mutual Fund folio, will the same facilities get extended for HDFC Mutual Fund?
    No. You need to submit the HDFCMFeServices form at any of the nearest Investor Service Centres of HDFC Mutual Fund after the Completion Date to apply for an HPIN (HDFC Personal Identification Number) which will enable you to transact on the online portal offered by it viz - HDFCMFOnline.

  • My units are held in demat mode with the DP (Depository Participant). Will the change in scheme details reflect in my client account held with the DP? How will I check the details?
    Yes, the change should reflect in your client account with the DP as the DP will be intimated about the changes. An allotment advice will be sent to you after completion date so that you can verify the details.

  • My units are held in demat mode and I wish to exercise the exit option. Where should I submit the redemption request?
    You need to submit the redemption request to your DP (Depository Participant) upto 3.00 p. m. on June 20, 2014, if you wish to exit from the scheme.

  • For any queries regarding the option exercise letter, changes to the schemes, any updations etc till the Completion Date, whom should I contact?
    You may contact any of the nearest Morgan Stanley Mutual Fund Investor Service Centres, the details of which are available on the website –
    or you can call on the customer service toll-free number - 1800 425 1313.


Merger of HDFC Focused Large-Cap Fund with HDFC Equity Fund & Change in Fundamental Attributes of HDFC Short Term Plan

  • Please explain the changes to the schemes of HDFC Mutual Fund.
    The following are the two changes to the schemes of HDFC Mutual Fund:
    a. HDFC Focused Large-Cap Fund, an open ended equity scheme will be merged with HDFC Equity Fund, an open ended growth scheme.
    b. There will be change in the fundamental attributes of HDFC Short Term Plan, an open–ended income scheme.

  • What is the reason for the merger of HDFC Focused Large-Cap Fund with HDFC Equity Fund?
    HDFC Mutual Fund and HDFC Trustee have entered into an agreement with Morgan Stanley Investment Management Private Limited and Board of Trustees of Morgan Stanley Mutual Fund pursuant to which the schemes of Morgan Stanley Mutual Fund (MSMF) will be transferred to and form part of HDFC Mutual Fund subject to approval of unit holders of Morgan Stanley Mutual Fund. Post the proposed acquisition of MSMF Schemes, HDFC Mutual Fund may have in its bouquet of products, similar schemes. Thus, in order to avoid schemes with similar objectives and to enable optimal utilization of resources, in the interest of investors, it is proposed to carry out certain changes to the MSMF Schemes by merging certain MSMF Schemes with existing schemes of HDFC Mutual Fund. As part of the proposal, Board of Directors of HDFC Trustee Company Limited and HDFC Asset Management Company Limited have also approved the merger of HDFC Focused Large-Cap Fund into HDFC Equity Fund.

  • Is there any public notice that can be referred by me for the said changes to the schemes?
    Yes. Notice detailing the aforesaid proposed changes has been published in May 14, 2014 issue of Business Standard (English daily newspaper having nationwide circulation) and Navshakti (Marathi newspaper) for the benefit of the unit holders. Please click here if you wish to view the same.

  • Why is an Exit Option Letter sent to me for my investment in HDFC Focused Large-Cap Fund / HDFC Short Term Plan?

    A. HDFC Focused Large-Cap Fund - Merger of schemes is considered as a change in the fundamental attributes of the schemes as per Circular No. SEBI/MFD/Cir No. 05 / 12031 / 03 dated June 23, 2003 issued by SEBI in this behalf. As per Regulation 18(15A) of the SEBI (Mutual Funds) Regulations, 1996 (MF Regulations) , change in fundamental attributes can be carried out only after the unit holders of the schemes concerned have been informed of the change via written communication and an option to exit the scheme(s) within a period of 30 days at the prevailing NAV without any exit load is provided to them. In accordance with the said regulation, due to the merger of HDFC Focused Large- Cap Fund with HDFC Equity Fund, the exit option letter has been sent to you by HDFC Mutual Fund.
    B. HDFC Short Term Plan - The proposed changes constitute a change in the fundamental attributes of HDFC Short Term Plan, which as per Regulation 18(15A) of the SEBI (Mutual Funds) Regulations, 1996 (“MF Regulations”), can be carried out only after the unit holders of the Scheme have been informed of via written communication and an option to exit the Scheme within a period of 30 days at the prevailing Net Asset Value (“NAV”) without any exit load is provided to them. In accordance with the said regulation, due to the change in fundamental attributes of HDFC Short Term Plan, the exit option letter has been sent to you by HDFC Mutual Fund.


  • I have investments in HDFC Equity Fund and have got information about the merger of HDFC Focused Large-Cap Fund with HDFC Equity Fund but I have not received any Exit Option Letter till now. Please clarify.
    There is no change in the fundamental attributes of the Transferee Scheme i.e. HDFC Equity Fund, the circumstances merit a merger and the interest of the unit holders of HDFC Equity Fund is not adversely affected. Hence, the exit option letter is not required to be provided to investors of HDFC Equity Fund. The same is in accordance with SEBI Circular No. IMD / DF / 15 / 2010 dated October 22, 2010. Further, you may note that our aforementioned notice issued by us and published on May 14, 2014 serves as the written communication to the unit holders of the Transferee Schemes i.e. HDFC Equity Fund.

  • Was the Exit Option Letter sent to all the unit holders of HDFC Focused Large-Cap Fund and HDFC Short Term Plan?
    The existing unit holders whose valid applications have been received by us till the 3.00 p.m. on May 14, 2014, can only exercise the Exit Option. Hence it has been sent by us to only the aforementioned unit holders.

  • On what date will the merger of HDFC Focused Large-Cap Fund into HDFC Equity Fund / change in fundamental attributes for HDFC Short Term Plan come into effect?
    The same will come into effect after the close of business hours on June 20, 2014 which is called the Effective Date.

  • Till what date can I submit investments in HDFC Focused Large-Cap Fund, if I wish to?
    You can submit investments in HDFC Focused Large-Cap Fund till June 20, 2014 as this scheme will cease to exist thereafter.

  • Will there be any change in investment objective after merger of HDFC Focused Large-Cap Fund with HDFC Equity Fund?
    After the merger, HDFC Focused Large-Cap Fund will cease to exist and HDFC Equity Fund will be the surviving scheme. The investment objective, investment pattern, annual scheme recurring expenses structure and all other provisions of HDFC Equity Fund will remain unchanged and apply. To know the details on the changes, please click here.

  • Will there be change in option/ plan after the merger of the schemes?

    No. The details are as follows:

    • Plans: Regular & Direct
    • Options: Growth, Dividend (Payout and Re-investment)

  • Will there be change in the load structure after the merger of the schemes?
    No. The details are as follows:
    (i) In respect of each purchase / switch-in of units, an Exit Load of 1.00% is payable if Units are redeemed / switched-out within 1 year from the date of allotment.
    (ii) No Exit Load is payable if Units are redeemed / switched-out after 1 year from the date of allotment.
    However, please note that after merger, units allotted in HDFC Equity Fund (in lieu of units held in HDFC Focused Large-Cap Fund) will be treated as new subscription. Hence, the period of holding for the purpose of charging exit load and for taxation, will restart after the close of business hours on June 20, 2014.

  • Will there be change in minimum amount for new/additional purchase and redemption after the merger of the schemes?
    No. The Minimum Application Amount for Purchase / Additional Purchase will be Rs. 5,000 and any amount thereafter/ Rs. 1,000 and any amount thereafter respectively.
    The Minimum Repurchase Amount / Number of Units will be Rs. 500 or 50 Units respectively.

  • Will there be any change in investment objective and asset allocation pattern after Change in Fundamental Attributes of HDFC Short Term Plan?
    Yes. To know the details on the changes, please click here.

  • If I do not wish to stay invested in the Schemes i.e. HDFC Focused Large-Cap Fund or HDFC Short Term Plan due to the merger/ change in fundamental attributes respectively, is there any the option available for the same?
    Yes, existing unit holders whose valid applications have been received by us upto 3.00 p.m. on May 14, 2014, may redeem their units or switch to other available/ eligible schemes of HDFC Mutual Fund at the prevailing NAV without payment of any exit load between May 22, 2014 and June 20, 2014 (upto 3.00 pm on June 20, 2014) (both days inclusive). Other unit holders of the said scheme can also redeem but subject to the payment of applicable exit load.

  • When will I receive the redemption proceeds, if I exercise the Exit Option?
    The redemption payment will be made within 10 Business Days of receipt of valid redemption request from you if you choose to exercise the exit option. However, we would endeavour to make redemption payment within 3–4 Business Days from the date of acceptance of the redemption request.

  • I have an email ID registered with you. Can I send an email to you to confirm on my wish to exit from the Scheme(s)?
    No. You need to submit an original signed redemption/ switch request if you wish to exit from the Scheme(s).

  • I have invested in the scheme – HDFC Focused Large-Cap Fund / HDFC Short Term Plan on or before 3.00 p.m. on May 14, 2014 and I have received the Exit Option Letter but have not received my account statement yet. If I need my investment details, whom should I contact?
    You may visit any of our nearest Investor Service Centres or contact us on our toll free numbers - 1800 3010 6767/ 1800 419 7676. If you have registered your email ID with us, we can send the account statement to you over email too. After receipt of the account statement, if you wish to exit from the scheme, you may submit the request at our between May 22, 2014 and June 20, 2014 (upto 3.00 pm on June 20, 2014).

  • If I have invested on any date till the aforementioned Completion Date, will I be eligible to redeem from the Scheme without payment of any exit load?
    No. The option to redeem without payment of any exit load during the aforementioned Exit Option Period, is applicable only for those existing unit holders under the Schemes whose valid investment applications have been received by us upto 3.00 p.m.on May 14, 2014.

  • If I submit the redemption/switch before or after the Exit Option Period i.e. before May 22, 2014 or after the applicable cut-off time on June 20, 2014, will I be charged an exit load?
    Yes. Such requests will be subject to the applicable load in respect of the Schemes.

  • If I have “No objection” to the proposed changes and wish to remain invested in the Schemes after Completion, do I need to communicate the same to HDFC Mutual Fund?
    No, there is no action required if you are in agreement with the proposed changes.

  • If I do not exercise the exit option or respond to the Exit Option Letter, what will happen to my investments after June 20, 2014?
    Unit holders who do not exercise their exit option on or before 3 p.m. on June 20, 2014 would be deemed to have consented to the merger/ change in fundamental attributes. Further, at the close of business hours on June 20, 2014, HDFC Focused Large-Cap Fund (Transferor Scheme) will cease to exist and unit holders of HDFC Focused Large-Cap Fund will be allotted units under the corresponding option of HDFC Equity Fund (Transferee Scheme) at the last available applicable NAV. For unit holders in HDFC Short Term Plan, their investment continues without any changes.

  • I have received information about the merger/ change in fundamental attributes but have not received the Exit Option Letter. Please clarify.
    We have sent the Exit Option letter to all the existing unit holders, whose valid investment application have been received by us on May 14, 2014 upto 3.00 p.m. If you fall in the said category of unit holders and have still not received the letter, you can contact us on our toll-free numbers - 1800 3010 6767 / 1800 419 7676 or visit the nearest Investor Service Centre. Further, please click here if you wish to view and download the Exit Option Letter.

  • If I have pledged / encumbered my units, can I exercise the Exit Option?
    Yes, you will have the option to exit but only after you submit request for release of pledges / encumbrances prior to submitting your redemption/switch request within the aforementioned Exit Option Period.

  • If lien is marked on the units held by me, can I exercise the Exit Option?
    Yes, you will have the option to exit but only after the lien is vacated / revoked prior to applying for redemption/switch and within the aforementioned Exit Option Period.

  • Will I be charged STT (Securities Transaction Tax) in HDFC Focused Large-Cap Fund?
    No. The STT, if any, on redemption/ switch of units, exercised during the Exit Option Period/ on extinguishment of units under HDFC Focused Large-Cap Fund (Transferor Scheme) and allotment under HDFC Equity Fund (Transferee Scheme) upon merger of scheme on June 20, 2014, shall be borne by HDFC Asset Management Company Ltd.

  • Is there any tax liability due to the merger of Schemes OR if I exit from the Schemes?
    Yes. There can be tax liability due to merger of the Schemes or if you exit from the Schemes before June 20, 2014. In case of merger of Schemes, there may be a change in the number of units held in HDFC Equity Fund in comparison to the units in HDFC Focused Large-Cap Fund which may result in capital gain / capital loss in the hands of the investors thus entailing tax consequences. For more clarifications, we would advise you to consult your tax advisors.

  • Since I am an NRI (Non-Resident Indian), will TDS (Tax Deducted at Source) be deducted on account of merger of OR If I exit from these Schemes?
    Yes. TDS, if any, at applicable rates will be deducted by HDFC Mutual Fund / HDFC Asset Management Company Ltd. in case of NRIs.

  • Will I be allotted units in the Transferee Scheme (HDFC Equity Fund) in the same folio or will new folio be allotted to me?
    The allotment will be in the same folio.

  • Will I be allotted units in the corresponding HDFC Equity Fund under have same plan/ option as in HDFC Focused Large-Cap Fund?
    Yes. For e.g. if your investment was under HDFC Focused Large-Cap Fund - Direct Plan – Dividend Reinvestment Option, you will be allotted units under HDFC Equity Fund – Direct Plan – Dividend Reinvestment Option only. However, in this case if you already hold any units in the same folio under HDFC Equity Fund – Direct Plan with Dividend Payout Option, this payout option will be overwritten with reinvestment option. Thus, the scheme in your folio will reflect as HDFC Equity Fund – Direct Plan – Dividend Reinvestment Option after the close of business hours on June 20, 2014.

  • What will be the date of subscription for the units allotted to me in HDFC Equity Fund after the merger?
    The units allotted in the HDFC Equity Fund (Transferee Scheme) will be treated as a fresh subscription. Accordingly all provisions under the Transferee Scheme(s) will apply to such units, except exit load provisions, which shall apply as per HDFC Focused Large-Cap Fund (Transferor Scheme) Thus, the exit load shall continue to apply as per the Transferor Scheme and the period of holding for the purpose of charging exit load will be computed from the original date of allotment of such units in the Transferor Scheme. However, the period of holding in the Transferee Scheme for the purpose of taxation will be computed from the date of merger.
  • Please clarify if my pending systematic instalments registered in HDFC Focused Large-Cap Fund will continue in HDFC Equity Fund after June 20, 2014?
    The same is explained below:
    (i) SIP (Systematic Investment Plan)/ MICRO SIP – Will continue in HDFC Equity Fund as per the registration period.
    (ii) STP (Systematic Transfer Plan)/ Flex STP/ Swing STP – Will be ceased after June 20, 2014.
    (iii) SWP (Systematic Withdrawal Plan) – Will be ceased after June 20, 2014.
    (iv) Flex Index Plan - Will be ceased after June 20, 2014.
    (v) Dividend Transfer Plans (DTPs) - Will be ceased after June 20, 2014.

  • I do not wish to continue the SIP after the merger of HDFC Focused Large-Cap Fund with HDFC Equity Fund, please explain the process.
    You can discontinue the facility by giving thirty days written notice to any of our nearest Investor Service Centres

  • If I wish to continue the STP/SWP/Flex STP/ Flex Index Plan/Swing STP/Dividend Transfer Plans (DTPs) facilities registered under HDFC Focused Large-Cap Fund after merger of the scheme, what is the procedure?
    You need to submit a new registration form for the scheme - HDFC Equity Fund if you wish to continue with aforementioned registrations.

  • Please clarify if SIP/STP/SWP/Flex STP/ Flex Index Plan/Swing STP/Dividend Transfer Plans (DTPs) facilities registered in HDFC Short Term Plan will continue after June 20, 2014?
    Yes

  • I do not wish to continue the SIP/STP/SWP/Flex STP/ Flex Index Plan/Swing STP/Dividend Transfer Plans (DTPs) facilities registered in HDFC Short Term Plan, please explain the process.
    You can discontinue the facility by giving a written cancellation request to any of our nearest Investor Service Centres.

  • How will I know about the NAV and units allotted to me in HDFC Equity Fund after the merger?
    After June 20, 2014, an account statement, reflecting the units of HDFC Equity Fund allotted, will be dispatched to you. Additionally, SMS/ email will also be sent to you as per the registered mobile number/ email ID registered in the folio.

  • The folio is in the name of Minor and Minor has turned Major. In such a case, will the guardian’s signature be considered for submission of redemption/switch request during the Exit Option Period?
    No. The Minor to Major updation request needs to be submitted. On updation of the same, the unit holder needs to submit the redemption /switch request during the Exit Option Period.

  • If I have an HPIN (HDFCMF Personal Identification Number) for the folio, will I be able to view the details and transact online in the Transferee Scheme - HDFC Equity Fund?
    Yes.

  • Where can I get the information about the Historic NAVs of HDFC Focused Large-Cap Fund after June 20, 2014?
    The NAV details will be available on our website. Please click here to access the same. Alternatively, you can call us at our toll-free numbers - 1800 3010 6767/ 1800 419 7676.

  • If an investor had subscribed to the facility of NAVs to be received over his registered email ID for HDFC Focused Large-Cap Fund, will the same continue for HDFC Equity Fund after the Effective Date?
    Yes.

  • I had received my dividend / redemption cheque for HDFC Focused Large-Cap Fund but the same was not encashed by me within 3 months from date of the cheque. Please guide me so that I can claim the amount now.
    Please submit the request for reissue / revalidation of instruments towards unclaimed redemption / dividend along with the cheque at Computer Age Management Services Private Limited (CAMS), the registrar to the HDFC Mutual Fund Schemes or at any of our nearest Investor Service Centres

  • I have not received the dividend / redemption proceeds for HDFC Focused Large-Cap Fund before its merger with HDFC Equity Fund. Please guide me so that I can claim the amount now.
    Please contact us on our toll free numbers - 1800 3010 6767/ 1800 419 7676 or visit any of our nearest Investor Service Centres.

  • I wish to change my bank account details and receive the redemption proceeds for the exit option exercised by me, into my new bank account. Please clarify the procedure.
    Please click here to download the “Change in Bank details” form and to refer the procedure required for change in bank details in your folio. On confirmation of new bank details updation in your folio, you may submit the redemption request. Please ensure that the changes and redemption request is received by us within the aforementioned exit option period. For any more details you may contact any of our Investor Service Centres, or call us on our toll free numbers - 1800 3010 6767/ 1800 419 7676.

  • I wish to change my address and receive the redemption cheque for the exit option exercised by me, at my new address. Please clarify the procedure.
    If you are KYC Compliant, please click here to download the “KYC (Know Your Customer) change details form” and to refer the procedure required for the change in address. If you are not KYC Compliant, please click here to download the “Change in Address” form and to refer the procedure required for new address updation Please ensure that the address updation and redemption request is received by us within the aforementioned exit option period. For any more details, you may contact any of our Investor Service Centres, or call us on our toll free numbers - 1800 3010 6767/ 1800 419 7676.

  • Since KYC is mandatory for any investments, will the units gets allotted in HDFC Equity Fund after the merger, even if my KYC status is not updated / is invalid as on date of merger?
    Yes. The units under HDFC Focused Large-Cap Fund will be transferred into HDFC Equity Fund irrespective of the KYC status. However, for subsequent investments, you need to compulsorily submit the required documents for KYC Compliance. For any more details, you may contact any of our Investor Service Centres, or call us on our toll free numbers - 1800 3010 6767/ 1800 419 7676.

  • My units are held in demat mode with the DP (Depository Participant). Will the change in scheme details due to merger of HDFC Focused Large-Cap Fund into HDFC Equity Fund reflect in my portfolio held with the DP? Will I be able to check the details?
    Yes, as your DP will be intimated about the changes. An allotment advice will be sent to you after June 20, 2014.

  • My units are held in demat mode and I wish to exercise the exit option. Where should I submit the request?
    You need to submit the request to your DP (Depository Participant) upto 3.00 p. m. on June 20, 2014, if you wish to exit from the schemes.

  • I have purchased units in HDFC Focused Large-Cap Fund electronically through my online account with my distributor (referred as Channel distributor). Will the change in scheme details due to aforementioned merger of schemes reflect in my portfolio held with my Channel distributor? Further, if I wish to exercise the exit option, where should I submit the redemption request?
    Yes, as your Channel distributor will be intimated about the changes. Further, if you wish to exit from the scheme, you may submit the request either at our Investor Service Centres or contact your Channel distributor for the same.

  • If I have 200 units allotted to me under the scheme - HDFC Focused Large-Cap Fund, please clarify the units that will be allotted to me under the scheme - HDFC Equity Fund after the Effective Date?
    The allotment of units is explained with the help of the following illustration:
    NAV of HDFC Focused Large-Cap Fund as on the last date of the Exit Option Period (A) Rs.15/- per unit
    Units outstanding in HDFC Focused Large-Cap Fund as on the last date of the Exit Option Period (B) 200 units
    Outstanding value in HDFC Focused Large-Cap Fund before merger (C) = (A) X (B) Rs.3000
    NAV of HDFC Equity Fund as on the last date of the Exit Option Period (D) Rs.20/- per unit
    Allotment of units in HDFC Equity Fund (E) = (C) / (D) 150 units
    Value of merged units (F) = (D) X (E) Rs.3000


    Disclaimer: Please note that the aforesaid is only an illustration and the actual number of units to be allotted under HDFC Equity Fund will be determined by the value of units held in HDFC Focused Large-Cap Fund and the NAVs of HDFC Focused Large-Cap Fund and HDFC Equity Fund on the last date of the Exit Option Period which is June 20, 2014. Impact of tax on capital gains, if any, has not been considered in the above illustration. Further, in case of Non Resident Indians (NRIs), tax, if any, at applicable rates will be deducted and units for the residual value will be issued in HDFC Equity Fund. As the Securities Transaction Tax (STT) on extinguishment of units under HDFC Focused Large-Cap Fund shall be borne by HDFC AMC, the total value of unit holding of an investor will not be impacted on account of STT.

  • For any queries regarding the merger, change in fundamental attributes, exit option period etc, whom should I contact?
    You may contact any of our nearest Investor Service Centres. Alternatively, you can also call us on our toll free numbers - 1800 3010 6767/ 1800 419 7676.
and CDSL website,
FAQ for Online Investment using RTGS

  • What is RTGS?
    The acronym "RTGS" stands for Real Time Gross Settlement. RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a “real time” and on “gross” basis. This is the fastest possible money transfer system through the banking channel. Settlement in “real time” means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. “Gross settlement” means the transaction is settled on one to one basis without bunching with any other transaction. Considering that money transfer takes place in the books of the Reserve Bank of India, the payment is taken as final and irrevocable.

  • What is UTR No?
    Unique Transaction Reference (UTR) is generated / issued in RTGS system for uniquely identifying the transaction.

  • Is there any minimum / maximum amount stipulation for RTGS transactions?
    The RTGS system is primarily for transactions of ` 2 Lac and above. The online system will not display the RTGS option if the investment is less than ` 2 Lac.

  • Is there a facility to subscribe for units of HDFC Mutual Fund online using RTGS?
    Yes, the facility to subscribe for units through RTGS system is available on HDFCMFOnline and HDFCMFInvestOnline.

  • Is there a minimum amount that I need to subscribe to use this facility?
    The RTGS as a payment option will be displayed only if the purchase / subscription is ` 2 Lac and above

  • Which categories of schemes can I invest using the RTGS facility?
    All schemes are available for subscription using the RTGS facility provided the subscription amount is ` 2 Lac and above.

  • Do I need to register for this facility?
    You need not register for this facility at our end. To transfer funds using RTGS, depending upon the registration procedure of the respective bank, you may have to register HDFC Mutual Fund’s Bank account under the RTGS option. The bank may have a certain turnaround time (TAT) to complete the registration facility.


  • Which is the HDFC Mutual Fund Bank number account where I can transfer funds using RTGS?

    Beneficiary A/c Name HDFC MUTUAL FUND RTGS A/c
    Beneficiary Bank Name HDFC BANK
    Beneficiary Bank Branch Add FORT, MUMBAI
    Beneficiary Bank A/c No 00600350109922
    Type of A/c Current A/c
    RTGS Code HDFC0000060


  • Can I transfer funds into any Bank account of HDFC MF and still avail of the facility? under the "Direct Plan"?
    No, RTGS received only in designated Bank account number mentioned above is considered. The account mentioned is exclusive to facilitate online subscription through RTGS as a mode of transferring funds. In instances where the funds are transferred to another account of HDFC MF through RTGS and subsequent transaction is entered in the online portal, the subscription is liable to be rejected.

  • How do I transact using this facility?
    • Existing unit holder first transfers the desired subscription amount into our designated collection account (details given below)
    • Then logs into HDFCMFOnline / HDFCMFInvestOnline (need not have a HPIN) and enters the subscription transaction details
    • Enters the RTGS payment details viz. Investor Bank & Branch Name, IFSC Code, HDFCMF collection A/c No. and UTR No.
    • On successful completion of the transaction, the unit holder receives an instant online as well as an email confirmation.

  • Can I enter the purchase on HDFCMFOnline / HDFCMFInvestOnline and then do the transfer using RTGS?
    No, you will have to transfer the funds first. Without the RTGS details e.g. investor bank name & branch name, UTR No, the system will not allow the purchase transaction to proceed unless the details are entered.

  • Are there any charges for using this facility?
    HDFC MF levies no charges, we request you to check with your banks for charges that they may levy.


Introduction of "Direct Plan"

  • What is a "Direct Plan"?
    SEBI has directed Mutual Funds /AMC vide SEBI Circular no. CIR/IMD/DF/21/2012 dated September 13, 2012 to provide a separate plan for direct investments, i.e. investments not routed through a distributor, in existing as well as new schemes. Hence HDFC Mutual Fund has launched separate plans under existing open-ended schemes for direct investments called "Direct Plan" with effect from January 1, 2013.

  • When have the "Direct Plans" been launched?
    The "Direct Plans" were launched with effect from January 1, 2013.

  • Who can apply under the Direct Plan?
    Investments under the Direct Plan are open to all categories of investors who choose to invest without routing the transaction via a distributor.

  • How many plans will be available with effect from January 1, 2013?
    All Plans / Options / Sub- Options offered currently under "Existing Plans" of the Schemes are also available for subscription under the "Direct Plan". Thus, there shall be 2 plans available for subscription under the schemes viz. Existing Plan and Direct Plan.

    Examples:
    Scheme Existing Plan Direct Plan (introduced w.e.f. January 1, 2013)
    HDFC MF Monthly Income Plan (HDFC MIP) • HDFC MIP - Long Term Plan (HDFC MIP - LTP)
    • HDFC MIP - Short Term Plan (HDFC MIP – STP)
    • HDFC MIP - LTP – Direct Plan
    • HDFC MIP - STP – Direct Plan
    HDFC Equity Fund • HDFC Equity Fund • HDFC Equity Fund – Direct Plan


  • Which modes are available for investing into Direct Plans?
    Investments under Direct Plans can be made through various modes offered by us for investing directly except Stock Exchange platform(s) and any other platform(s) where investors’ applications for subscription of units are routed through distributors.


  • What is the difference between the "Existing Plan" and "Direct Plan"?
    The "Direct Plan" has a lower expense ratio as compared to existing plans in the same schemes, as there is no commission to be paid to the distributor under this plan.


  • Is there a difference in the NAVs between the Direct and the Existing Plan?
    Yes. Since there is a difference in the expenses charged by the Direct and Existing Plans under every scheme, there will be a difference in the NAVs for both these Plans.


  • "Direct Plan" is available under which schemes?
    "Direct Plan" is available under the following schemes:

    • Open-ended schemes
    • HDFC Liquid Fund - Premium Plan
    • New Fund Offer of Fixed Maturity Plans under close-ended schemes launched on or after the January 1, 2013 and
    • Interval Schemes (commencing from the first day of the Specified Transaction Period immediately after January 1, 2013).

  • Which schemes are not eligible under the "Direct Plan"?
    "Direct Plan" will not include Exchange Traded Funds and plans under existing schemes which are discontinued for further subscriptions.

  • Which Plans / Options / Sub-options are available under the "Direct Plan"?
    All Plans / Options / Sub-Options offered under the schemes will also be available for subscription under the "Direct Plan" (except Plans / Options / Sub-Options that have been discontinued).

  • Will the scheme portfolio change in the "Direct Plan"?
    No, the scheme portfolio will be the same for both "Existing plan" and "Direct Plan."

  • Will the scheme characteristics change in the "Direct Plan"?
    No, scheme characteristics such as Investment Objective, Asset Allocation Pattern, Investment Strategy, risk factors, facilities offered and terms and conditions including load structure will be the same.

  • How can I invest in "Direct Plan"?
    Investors subscribing under Direct Plan of any scheme will have to indicate the Scheme / Plan name in the application followed by "Direct Plan". For example, HDFC Cash Management Fund – Treasury Advantage Plan - Direct Plan. Additionally, investors should mention "Direct" in the ARN column of the application form.

  • What will happen if I don’t mention "Direct Plan" in the scheme name and also don’t mention broker code on my purchase request?
    In this scenario, the units will be allotted under the "Direct Plan" of the scheme. In such cases, the minimum additional application amount for the scheme will apply as the minimum investment amount for "Direct Plan".

  • What will happen in case the distributor code is mentioned in the application form, but "Direct Plan" is indicated in the scheme name?
    In this scenario, the distributor code will be ignored and the units for the investment will be allotted under Direct Plan. In such cases, the minimum additional application amount for the scheme will apply as the minimum investment amount for "Direct Plan".

  • My current investments are locked for redemptions. Can I switch into the "Direct Plan" of the same / other scheme?
    In case of investments in schemes like HDFC TaxSaver, HDFC Long Term Advantage Fund or the lock-in option of HDFC Children’s Gift Fund, you can switch-out / redeem after the lock-in period is completed.

  • What will happen in case a purchase application of over Rs. 2 lac is received in "Existing plan" on December 30, 2012 with no distributor code and the investment amount is realized before 3:00 p.m. on January 2, 2013?
    In this case, the units will be allotted under Existing Plan with the NAV of January 2, 2013.

  • What would be the NAV applicable in case of a purchase eligible for historic NAV made in a liquid scheme under the Direct Plan on January 1, 2013?
    For such purchases, the NAV of the previous business day is applicable. The NAV will be the same as that for the existing plan on December 31, 2012. In other words, units will be allotted in the "Direct Plan" with the NAV of December 31, 2012, subject to realization of funds.

  • In which plan will units be allotted if a purchase application is received without any distributor code in the "Existing Plan" after cut-off time on December 31, 2012?
    Since the application was received after cut-off time on December 31, 2012 the same shall be deemed to have been received on the next Business Day and hence the units will automatically be allotted under the corresponding "Direct Plan" at the applicable NAV.

  • What will happen to my investments under Systematic Investment Plan (SIP) / Systematic Transfer Plan (STP) (Fixed or Capital Appreciation) without any distributor code registered prior to January 1, 2013?
    In case of SIPs / STPs (Fixed or Capital Appreciation) registered prior to January 1, 2013 without any distributor code under the "Existing Plan", installments triggered on or after January 1, 2013 will be processed under the "Direct Plan". The terms and conditions of the existing registered enrolment shall continue to apply.

  • I had registered for SIP with distributor code prior to January 1, 2013. Will the installments triggered after January 1, 2013 be processed into the "Direct Plan"?
    No. You have to submit a written request for the same. The request format is available with our Investor Service Centres (ISCs) and on our website. Such a request has to be submitted at least 15 days prior to the next installment date. Intervening installments, if any, will continue to be processed under the "Existing Plan".

  • I had registered for STP with distributor code prior to January 1, 2013. How can I shift the future installments into the "Direct Plan"?
    You have to cancel the existing registration and register afresh into the "Direct Plan".

  • I had registered for HDFC Flex STP* / HDFC Swing STP* / HDFC Flex-Index Plan* / Dividend Transfer Plan* (DTP) prior to January 1, 2013. How can I shift the future installments into the "Direct Plan"?
    * with or without distributor code
    You have to cancel the existing registration and register afresh into the "Direct Plan".

  • What will happen to my existing investments which are not routed through distributors?
    Such investments will continue to be under the "Existing plan". In case you wish to transfer them to the Direct Plan of the same scheme, you may submit a switch request. Such switches will not be subject to exit load. However, investors should consult their professional tax advisor before initiating such requests.

  • I have routed my existing investments vide a distributor. I want my current investments to be transferred into the "Direct Plan" of the same scheme. What should I do?
    You will be required to submit a switch request for transferring of units from "Existing plan" to "Direct plan". Please note that such switches will entail exit load. Investors should consult their professional tax advisor before initiating such requests.

  • If I submit a transaction slip with the words "Multiple Brokers" pre-printed on it and the words "Direct Plan" are not mentioned in the name of the switch-in scheme, will the switch-in be processed into the "Direct Plan" or "Existing Plan" switch-in scheme?
    In this scenario, the units will be switched into the "Existing Plan" switch- in scheme irrespective of whether the units being switched are routed vide a broker or not. Please note that such switches may entail exit load / tax consequences. Investors should consult their professional tax advisor before initiating such requests.

  • Will exit load be charged if I switch my investments from "Existing plan" to "Direct plan" and vice versa?
    For your investments which were routed through a distributor whether before or after January 1, 2013, any switch-out of these units from Existing Plan to Direct Plan of the same / other Scheme / Plan shall be subject to applicable exit load, if any.

    For your investments which were made directly i.e. without any distributor code, exit load will not be levied on switch-out of units from Existing Plan to Direct Plan of the same Scheme / Plan.

    No exit load shall be levied in case of switch of units from Direct Plan to Existing Plan of the same Scheme/ Plan. However, any switch-out or redemption of such investment from the Existing Plan shall be subject to exit load based on the original date of investment in the Direct Plan.

  • I want to switch my investments from "Existing plan" to "Direct plan" of the same scheme. What will be the NAV applicable for the switch-in scheme?
    The NAV for the switch-in scheme will be as on the same date as that of the switch-out scheme.

  • What will be the criteria for NAV applicability for investments under "Direct Plan"?
    The criteria of NAV applicability will remain the same as applicable for existing plans of the schemes.

  • Why are my existing investments not automatically transferred to the Direct Plan?
    Existing investments cannot be transferred automatically under the Direct Plan, since plans are available for fresh / new investments only. Existing investments would continue to be a part of the existing scheme and you can switch them into the Direct Plan. Please note that such switches may entail exit load / tax consequences which need to be considered and understood before proceeding.

  • My distributor does not want brokerage but wants to maintain his code under the Direct Plan since he advised me about investing in the same. Is this allowed?
    This is not allowed since investments made under the Direct Plan cannot be routed through a distributor code.

  • If I hold units in the Existing as well as Direct Plans of the same scheme and I submit a redemption / switch-out request without mentioning any specific plan, will my request be processed?
    Yes, in this case, the request will be processed for units in the Existing Plan. If you wish to submit a redemption / switch-out request for units in the Direct Plan, "Direct Plan" must clearly be mentioned on the request.

  • If I hold units in the Existing as well as Direct Plans of the same scheme and I wish to redeem / switch-out units from both plans, what should I mention on the redemption / switch-out request?
    In this case, you have to submit 2 separate redemption / switch-out requests, one for each plan.

  • If I hold units in any one of the Plans of a same scheme and I submit a redemption / switch-out request without mentioning any specific plan, will my request be processed?
    Yes, in this case, the request will be processed for units in the plan in which they are available.

  • If I hold units in the Existing Plan of a scheme and I want to submit a purchase / switch-in request into the Direct Plan of the same scheme, will I have to invest / switch the minimum investment amount for the switch-in scheme?
    No, you may invest / switch the minimum additional application amount for investing into the direct plan of the scheme. For example, if you hold units in HDFC Equity Fund – Growth, you may invest Rs. 1,000 or above as the first investment in HDFC Equity Fund – Direct Plan – Growth in the same folio.

  • What will happen if there is a plan mismatch in the investment instrument and application?
    The plan will be determined from the transaction request.

  • Can I invest in the Direct Plan vide the stock exchange platforms (BSE STaR or NSE MFSS)?
    Since the stock exchange platforms necessitate routing transactions through distributors, these platforms can not be used for investing in the direct plans. However, investors holding units in the demat mode can redeem units in these plans from their demat account using the stock exchange platforms.

  • I submitted purchase / switch transaction 2 days ago. I want to change my broker code to Direct or vice versa for that transaction. What should I do?
    Since the NAV for "Direct Plan" and "Existing Plan" under the same scheme will be different, any change in the requests already processed (for example – addition / deletion of broker code) will not be processed.

  • I forgot to add the distributor’s code to a purchase transaction that was processed yesterday. Can I submit a request for rectification?
    Since the NAVs in the direct plan and existing plan of a scheme are different, requests for addition / deletion of broker code can not be processed. You will have to submit a switch request from the direct plan to the existing plan.

  • How can I add a distributor’s code to my existing investments in the direct plan?
    Since the NAVs in the direct plan and existing plan of a scheme are different, requests for addition / deletion of broker code can not be processed. You will have to submit a switch request from the direct plan to the existing plan.

  • How can I remove my distributor’s code from my investments in the existing plan?
    Since the NAVs in the direct plan and existing plan of a scheme are different, requests for addition / deletion of broker code can not be processed. You will have to submit a switch request from the existing plan to the direct plan.


SEBI's Circular no. CIR/IMD/DF/21/2012 dated September 13, 2012 and SEBI (Mutual Funds) (Second Amendment) Regulations, 2012 notified vide notification No. LAD-NRO/GN/2012-13/17/21502 dated September 26, 2012)

  • Single plan structure for Scheme(s)

  • What are the provisions of SEBI's circular regarding single plan/option structure of schemes?
    SEBI has asked Mutual Funds to stop accepting fresh subscriptions in multiple plans under a single scheme and instead retain one single plan / option.

  • With effect from 1st October 2012, which plans will be discontinued for subscription due to the requirement of single plan structure?
    The following plans and options thereof will not be available for subscription w. e. f. October 1, 2012:

    • HDFC Liquid Fund - Premium Plan
    • HDFC Liquid Fund - Premium Plus Plan
    • HDFC Cash Management Fund - Treasury Advantage Plan - Wholesale Option
    • HDFC Floating Rate Income Fund - Short Term Plan – Retail Option
    • HDFC Quarterly Interval Fund - Plan A, Plan B and Plan C - Wholesale Plan

  • What are the plans of the schemes which will continue to be available for subscriptions?

    • HDFC Liquid Fund
    • HDFC Cash Management Fund - Treasury Advantage Plan – Retail Option
    • HDFC Floating Rate Income Fund - Short Term Plan – Wholesale Option
    • HDFC Quarterly Interval Fund - Plan A, Plan B and Plan C - Retail Plan

  • What happens to my investments made in the discontinued plans till October 1, 2012?
    You may continue to hold your existing investments in such discontinued plans. However, you cannot subscribe in these plans w. e. f. October 1, 2012. Thus, the following transactions will not be accepted into these plans w. e. f. October 1, 2012:

    • Purchase
    • Switch-in
    • SIP registration
    • Registration for Flexindex Plan
    • Registration for Normal / Flex / Swing STP where the target schemes are any of these plans

    Please note that dividends, if any, will be processed in the discontinued plans after October 1, 2012. However, if you have opted for dividend reinvestment option, the dividend will be compulsorily paid out w. e. f. November 1, 2012.

  • What happens if I have opted for dividend transfer plan with the target scheme being one of the discontinued plans?
    Under DTP facility, the dividend, if any to be transferred to discontinued plans, would instead be reinvested in the Source Schemes. You may submit a fresh DTP request for transferring dividends into the other available schemes.


  • Will purchase/switch-in request be rejected if I mention discontinued plan on the transaction slip after October 1, 2012?
    In case such a transaction pertains to HDFC Liquid Fund – Premium Plan or HDFC Liquid Fund – Premium Plus Plan, the transaction will be processed into the default plan i.e. HDFC Liquid Fund. However, if a transaction pertains to any other discontinued plan, it will not be processed.


  • What happens to my systematic investment routes registered prior to October 1, 2012 in the discontinued plans?
    Investments vide SIPs / STPs into the discontinued Plan(s) / Option(s) registered prior to October 1, 2012 will continue to be processed only up to October 31, 2012. Redemptions vide Systematic Withdrawal Advantage Plan i.e. SWAP will continue to be processed. You are hence requested to re-register for the SIP/STP-in in any of our open ended schemes before the said date. However, please note that you can continue to hold any outstanding units in the discontinued plans / options till you opt to redeem the same in future.


  • What will I have to do after my systematic investments registered in the discontinued plans prior to October 1, 2012 are stopped after October 31, 2012?
    You may re-register for systematic investments under any available scheme / plan by submitting a duly filled application form.


  • Will I be charged exit load (if applicable) on redemption / switch-out from the discontinued plans?
    Yes, if applicable.

  • Harmonizing applicability of NAV across schemes

  • What will be applicability of NAV for purchases / switch-ins into schemes other than liquid schemes?
    In respect of purchase / switch-in of units of an amount equal to or more than Rs. 2 lakh, the closing NAV of the Business Day on which the funds are available for utilization shall be applicable. Funds for the entire amount of purchase / switch-in as per the application have to be credited to the bank account of the respective schemes before the cut-off time. For purchase / switch-in of units of an amount less than Rs. 2 lakh, the NAV will be applicable on the basis of time stamping of application. All multiple applications for investment (at the first holder's PAN level) in a particular scheme (irrespective of the plan/option/ sub-option) received on the same Business Day, will be aggregated to ascertain whether the total amount equals to Rs. 2 lakhs or more and to determine the applicable Net Asset Value.

  • Will purchases in equity-oriented schemes also fall under the above provisions?
    Yes. The above provisions will be applicable for all schemes except liquid schemes.

  • Are there any changes to the NAV applicability to liquid schemes?
    No. The rules for NAV applicability remains the same for liquid schemes.

  • In case of purchases vide SIPs, what will be the basis for NAV applicability?
    For investments of an amount equal to or more than Rs. 2 lakh through systematic investment routes such as Systematic Investment Plans, Systematic Transfer Plans (STP), Flex-STP, Swing STP, FLEXINDEX Plans, units will be allotted as per the NAV of the day of realization of funds.

  • Cash investments in mutual funds

  • As per the new SEBI circular, will I be able to subscribe to units using cash?
    The process of setting up appropriate systems and procedures for accepting investments from eligible investors using cash (Rs. 20,000 per financial year, per investor, across all schemes of the Fund) is in progress. Appropriate notice shall be displayed on our website viz. www.hdfcfund.com as well as at the Investor Service Centres, once the facility is made available to the investors.


HDFC Swing STP

  • What is HDFC Swing STP?
    Swing STP is a facility wherein unit holder(s) can opt to transfer an amount at regular intervals from designated open-ended Scheme(s) of HDFC Mutual Fund ("Transferor Scheme") to the Growth Option of designated open-ended Scheme(s) of HDFC Mutual Fund ("Transferee Scheme") including a feature of Reverse Transfer from Transferee Scheme into the Transferor Scheme, in order to achieve the Target Market Value on each transfer date in the Transferee Scheme, subject to the terms and conditions of Swing STP.

  • What is the difference between HDFC Swing STP and HDFC STP?
    HDFC Swing STP works on the principle of value cost averaging whereas HDFC STP works on the concept of rupee cost averaging. Rupee cost averaging works on the principle of investing a fixed sum of money at regular intervals irrespective of the market levels. On the other hand under Value Cost Averaging varying amounts are invested at regular intervals depending on the market fluctuations to arrive at a specific target portfolio value at each transfer date.

  • What is the difference between HDFC Swing STP & HDFC Flex STP?
    Under HDFC Flex STP, a unit holder invests a fixed amount when the market level is higher and invests more when the market level is lower. However, the total amount invested cannot exceed the original amount for which the STP is enrolled.

    Under HDFC Swing STP, the amount invested will be more when the market levels are lower and lower when the market levels are higher. However the total amount invested through Swing STP could be higher or lower than the Total Target Market Value of the investment.

  • How does HDFC Swing STP Work?
    In Swing STP, transfers in Transferee Scheme from the Transferor Scheme are made to arrive at the Total Target Market Value in the Transferee Scheme by transferring an amount at regular intervals in such a way so as to increase the Target Market Value of units in the Transferee Scheme systematically by a fixed amount (i.e. the first installment amount specified by the Unitholder) on the date of each transfer till the tenure of the Swing STP. The amount to be transferred will be arrived at on the basis of the difference between the Target Market Value and the actual Market Value of the holdings in the Transferee Scheme on the date of transfer.

  • What is the formula for calculation of the amount to be transferred after the first instalment?
    From the second Swing STP installment onwards, the transfer amount may be higher/lower than the first installment amount, as derived by the formula stated below:
    (First installment amount X Number of installments including the current installment) - Market Value of the investments through Swing STP in the Transferee Scheme on the date of transfer.
    In case the amounts (as specified above) to be transferred are not available in the Transferor Scheme in the unit holder?s account, the residual amount will be transferred to the Transferee Scheme and Swing STP will be closed.

  • What is reverse transfer? How does it work?
    A reverser transfer is defined as follows: On the date of transfer, if the market value of the investments in the Transferee Scheme through Swing STP is higher than the first installment amount X number of installments (including the current installment), then a reverse transfer will be effected from the Transferee Scheme to the Transferor Scheme to the extent of the difference in the amount, in order to arrive at the Target Market Value.

  • What are the benefits of HDFC Swing STP?
    HDFC Swing STP has the following benefits:

    • Investors need not time their entry or exit. HDFC Swing STP automatically invests more when NAVs are down and invest less when NAVs are up, depending on the market value of investments.
    • It provides an automatic route to exit an investment when portfolio appreciation is higher than the target market value in the transferee scheme by Reverse Transfer to Transferor Scheme.
    • It helps investors to plan for and reach final financial goal.
    • It allows investors to take advantage of market fluctuations and removes emotions from the decision making process.
    • The initial investments in select debt/liquid funds enhance total returns.
    • Investors can take advantage of the market movements without hassles.

  • Which schemes are available for the facility?
    HDFC Swing STP is available for the following open – ended Scheme(s) of HDFC Mutual Fund:
    HDFC Liquid Fund, HDFC Cash Management Fund, HDFC Income Fund, HDFC High Interest Fund, HDFC Short Term Plan, HDFC Floating Rate Income Fund, HDFC Short Term Opportunities Fund, HDFC Medium Term Opportunities Fund, HDFC Gilt Fund, HDFC MF Monthly Income Plan (an open - ended income scheme. Monthly income is not assured and is subject to availability of distributable surplus), HDFC Growth Fund, HDFC Equity Fund, HDFC Top 200 Fund, HDFC Capital Builder Fund, HDFC Core & Satellite Fund, HDFC Premier Multi-Cap Fund, HDFC Index Fund, HDFC Balanced Fund, HDFC Prudence Fund, HDFC Mid-Cap Opportunities Fund, HDFC Long Term Equity Fund, HDFC Infrastructure Fund and HDFC Gold Fund (an open ended fund of fund scheme investing in HDFC Gold Exchange Traded Fund).

  • At what frequency is HDFC Swing STP offered?
    HDFC Swing STP offers transfer facility at weekly, monthly and quarterly frequency. Unit holder is free to choose the frequency of such transfers. In case the frequency (Weekly/ Monthly/ Quarterly) is not indicated, Monthly frequency shall be treated as the Default Frequency.

  • What is the minimum amount per instalment for enrolment under HDFC Swing STP?
    The minimum amount per Swing STP installment shall be as follows:
    • Swing STP - Weekly & Monthly Interval: Rs. 1,000 and any amount thereafter.
    • Swing STP - Quarterly Interval: Rs. 3,000 and any amount thereafter.

  • Under HDFC Swing STP will the total amount invested in the transferee scheme be equal to the total target market value (TTMV) or less than the TTMV or more than the TTMV
    The amount invested after the first instalment varies till the end of the tenure of Swing STP. These amounts vary due to the fluctuations in the market value of the units allotted in the transferee scheme. Due to this fluctuation the total amount invested in the transferee scheme may be more or less than the TTMV in the transferee scheme.

  • In case of a reverse transfer from the transferee scheme, in what order will the units be redeemed?
    The redemption/switch-out of units allotted in the Transferee Scheme shall be processed on First in First out (FIFO) basis.

  • In case units are redeemed or switched out of the transferee scheme on an instruction given by the investor, what happens to the Swing STP enrolment?
    In case there is a redemption/switch-out other than reverse transfer of any units allotted under Swing STP in the Transferee Scheme by the unit holder, the balance installments under Swing STP will be processed as a normal STP for the remaining installments by investing the amount indicated as first installment amount, on the date of each transfer over the balance tenure of the Swing STP, subject to availability of unit balance in the Transferor Scheme.

  • What is the minimum amount that can be transferred under the reverse transfer from the transferee scheme?
    There are no minimum or maximum limits on the amount of reverse transfers.

  • What is the minimum number of instalments for enrolment under HDFC Swing STP?
    There should be a minimum of 6 installments for enrolment under Weekly and Monthly Swing STP and 2 installments for Quarterly Swing STP.

  • What is the maximum time for enrolment in HDFC Swing STP?
    There is no maximum duration for Swing STP enrollment. However, Swing STP will be registered in a folio held by a minor only till the date of the minor attaining majority, even though the instructions may be for a period beyond that date. The Swing STP facility will automatically stand terminated upon the Unit Holder attaining 18 years of age.

  • What should be the minimum amount in the transferor scheme at the time of enrolment of HDFC Swing STP?
    The minimum unit holder?s account balance or a minimum amount of application at the time of Swing STP enrolment should be Rs. 12,000.

  • What is the time period for registration of HDFC Swing STP under the weekly interval?
    In case of Swing STP - Weekly Interval, the commencement date shall be within 15 days from the date of receipt of a valid request.

  • What is the time period for registration of HDFC Swing STP under the monthly & quarterly interval?
    The application for enrollment for Swing STP - Monthly and Quarterly Intervals should be submitted at least 10 days and not more than 90 days before the desired commencement date.

  • What is the default date of HDFC Swing STP, if the start date is not mentioned under the monthly/quarterly interval?
    In case the Start Date is not mentioned, the application will be registered after expiry of 10 days from submission of the application from the default date i.e. 10th of each month / quarter (or the immediately succeeding Business Day).

  • What is the term of enrolment under the monthly interval option in case the end date is not mentioned?
    In case the End Date is not mentioned, the application will be registered for the minimum number of instalments applicable.

  • What will be the exit load, if any, for the transfers under HDFC Swing STP in the Transferor Scheme?
    The Load Structure prevalent at the time of enrolment shall govern the investors during the tenure of the Swing STP.

  • What will be the exit load, if any for the transferee scheme under HDFC Swing STP?
    For redemption/reverse transfers from the Transferee Scheme exit load applicable, as on the date of enrolment for Swing STP will be levied.

  • What will be the exit load, if any for the transferor scheme (for units purchased through Reverse Transfer) under HDFC Swing STP?
    Applicable Exit Load, if any, in the Transferor Scheme / Plan /Option as on the date of enrolment for Swing STP will be levied.

  • What happens to the Swing STP enrolment if the units are liquidated or withdrawn from the Transferor Scheme or pledged or upon receipt of intimation of death of the unit holder?
    Swing 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.

  • Can a Swing STP enrolment be discontinued before the tenure is over?
    Unit holders have a right to discontinue the Swing STP facility at any time by sending a written request to the ISC. On receipt of such request, the Swing STP facility will be terminated within 15 days.

  • What are the various transfer dates available under each of the three frequencies?
    A. Under the weekly frequency facility the day of transfer can be Monday, Tuesday, Wednesday, Thursday, or Friday. Under the monthly interval facility the date of transfers can be on the 1st, 5th, 10th, 15th, 20th or 25th of each month. Under the quarterly interval facility the date of transfers are on the 1st, 5th, 10th, 15th, 20th or 25th of the first month of each quarter. The beginning of the quarter could be any month e.g. April, August, October, November, etc. In case the day/date of 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 applicability of NAV and processing the Application.

  • What is the taxation impact in HDFC Swing STP?
    The redemption of units under Swing STP by way of Transfer/ Reverse transfer would be subject to applicable taxes, if any. For details on taxation, please refer to the Section on "Taxation on investing in Mutual Funds? in "Statement of Additional Information ("SAI?)?. In view of individual nature of tax consequences, each client is advised to consult their professional tax advisor in regard to tax treatment for their investments / redemption.

  • Can unit holders avail of this facility in the demat mode?
    The Swing STP Facility is available only for units held / to be held in Non - demat Mode in the Transferor and the Transferee Scheme.

    HDFC Swing STP in any manner whatsoever is not an assurance or promise or guarantee on part of HDFC Mutual Fund/HDFC Asset Management Company Limited to the Unit holders in terms of returns or capital appreciation or minimization of loss of capital or otherwise.

Implementation of SEBI KRA regulations - (w.e.f 01 January 2012)

  • What are the new KRA regulations issued by SEBI?
    At present, if a client intends to open accounts with different intermediaries for the purpose of trading / investment in the securities market, he has to undergo the process of Know Your Client (KYC) separately with each intermediary. Therefore, to avoid duplication, SEBI has mandated a unified KYC in the securities market. This is effective January 1, 2012. This activity will be undertaken by KYC Registration Agency(s) (KRA) as notified by SEBI.

  • From when are the new guidelines effective?
    Any new investor, Joint holders, Power of Attorney holders, Donors, Guardian in case of minor's will have to comply with the KYC formalities as per the new guidelines with effect from January 01, 2012.

  • I am an existing investor with your fund. Will I have to complete KYC formalities again?
    No. If you have already completed KYC formalities through CDSL Ventures Ltd (CVL) and your PAN and KYC status is updated in our records you will not have to complete entire KYC formalities again. However, there are few details, which have to be additionally provided under the new regulations, which you may provide at any of our Investor Services Centers (ISC). In the meantime you may continue to transact in our schemes.

    In case you have never completed the KYC formalities, then you will have to complete the formalities under the new regulations before subscribing for mutual fund units.

  • I have completed my KYC process through CDSL Ventures Ltd (CVL) but have never invested with any Mutual Fund. Will I have to complete KYC formalities again with each new KRA appointed by SEBI?
    No. If you have already completed KYC formalities through CVL, you will not have to complete entire KYC formalities again (CVL is a SEBI registered KRA). However, there are some details which have to be additionally provided under the new regulations, which you may provide at any of our ISCs. In the meantime, you may continue to transact in our schemes.

  • Can I submit the KYC application form today and invest later?
    KYC application forms have to necessarily be accompanied with an investment application form except if the applicant intends to be a Power of Attorney (POA) holder for investments. POA holders have to submit a copy of POA agreement along with the KYC application form.

  • What is the difference in completing KYC formalities now and as done through CVL earlier?
    The new KYC norms, as laid down by SEBI, mandate certain additional information to be collected as compared to the KYC being done vide CVL upto December 31, 2011. Additionally, it is mandatory for mutual funds to conduct In-Person Verification (IPV) for all their investors.

  • What is IPV?
    The new common KYC regulation mandates all intermediaries should complete In- Person Verification (IPV) for all clients. Mere submission of identity and address proofs is not sufficient under the new regulations.

  • Who is authorised to perform IPV?
    All intermediaries in the securities market are authorised to conduct IPV. In case of Mutual Funds, Asset Management Companies (AMCs) and the distributors who comply with the certification process of National Institute of Securities Market (NISM) or Association of Mutual Funds (AMFI) and have undergone the process of 'Know Your Distributor (KYD)', can perform IPV. Further, in case of any applications received directly from the investors (i.e. without being routed through the distributors), the Mutual Fund may rely upon the IPV (on the KYC Application Form) performed by the scheduled commercial banks.

  • Can any KYD compliant distributor or banker perform IPV for my KYC?
    IPV can be performed only by the distributor whose ARN code is mentioned on the investment application form accompanying the KYC application form.

    IPV can be performed by a banker only in case of "Direct" investors i.e. applications not routed through distributors. Additionally, IPV performed by a banker will be accepted only if it is mentioned as the redemption bank on the investment application form accompanying the KYC application form can perform IPV.

  • What attestations are required for KYC related documents?
    All documents required by us in terms of PMLA must be certified i.e. attested / gazetted / notarized by appropriate authorities (refer instructions on the common KYC application form). In case you wish to bring the original documents to our offices, the copies of such documents should be self-certified. In such cases, original documents will be seen for verification by POS and returned to the applicant.

  • What intimation will be issued for having completed KYC formalities?
    The intermediary will provide an acknowledgement letter confirming that you have completed the KYC formalities and submitted the requisite documents for the same. Further, the KRA will also send you a confirmation letter, within 10 days of receipt of the documents from the intermediary.

  • Where can I go to complete my KYC formalities?
    You may visit any of our ISCs to complete the KYC formalities. Please click here to locate our ISC closest to you.

  • How long does it take to complete the KYC formalities? I wish to invest in the next few days.
    You may start transacting immediately on receipt of the KYC acknowledgement letter from the intermediary. The KRA will also send you a confirmation letter, within 10 days of receipt of the documents from the intermediary.

  • I am an NRI and am currently out of India. I wish to complete my KYC formalities and subsequently invest in your schemes. Please guide.
    You may submit the duly completed form along with the requisite documents at any of our ISCs, with the IPV section completed by your distributor (who is NISM/ AMFI certified and has complied with the KYD formalities) or a scheduled commercial bank. Please refer to other FAQs for further clarity.

  • Can I email you the KYC information for updating your records?
    Any change in the KYC information has to be submitted in the duly completed KYC change form along with the requisite documents. Any request will not be accepted through an email.

  • Can I send the KYC forms along with the documents by courier/ post to your office?
    Yes, you may submit the duly completed form along with the requisite documents at any of our ISCs, provided the IPV section is completed by your distributor (who is NISM/ AMFI certified and has complied with the KYD formalities) or a scheduled commercial bank. Please refer to other FAQs for further clarity.

  • I am transacting in Mutual Funds through my broker on the NSE MFSS platform. Will I get affected?
    For Mutual Fund transactions routed through Stock Exchanges, the KYC done by the Depository Participant is accepted. You are requested to get in touch with your Depository Participant to seek clarification in this regard.

  • I had completed my KYC formalities through CVL earlier and now I wish to change my address and contact details. How do I do the same?
    Any change in the KYC information has to be submitted in the duly completed KYC change form along with the requisite documents at any intermediary.

  • I am an investor from Sikkim and do not have a PAN. Do I need to complete KYC formalities?
    Investors from Sikkim are also required to complete KYC formalities. In lieu of PAN, applicants will have to submit a valid proof of identity, a list of which is available in the common KYC application form.

  • I wish to enroll for a Micro SIP. Will I still have to comply with these new regulations?
    Yes. Investors who wish to enroll for a Micro SIP are also required to complete KYC formalities. In lieu of PAN, applicants will have to submit a valid proof of identity, a list of which is available in the common KYC application form.

 

  • Is KYC a one time process, is it valid across all securities markets ?
    KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc), you need not undergo the same process again when you approach another intermediary

Transaction Charges for Investments through Distributors

  • What is the amount of transaction charges to be paid by me?
    The amount of transaction charges depends on the amount of investment, type of investor (existing / new) and whether the distributor, if any, has opted for receiving transaction charges.
    a) If you are an existing investor in any Mutual Fund, you will be charged Rs. 100 as transaction charge per purchase transaction / SIP registration of Rs. 10,000 or above. No transaction charge is applied on purchase transactions below Rs. 10,000 and on switches / redemptions / STP registrations.
    b) If you are a new investor in Mutual Funds, you will be charged Rs. 150 as transaction charge per purchase transaction / SIP registration of Rs. 10,000 and above.
    c) In case of SIP registrations, the transaction charge shall be applicable only if the total commitment amount through SIP is Rs. 10,000 or above. The transaction charges will be recovered in 4 installments.
    d) No charges will be applied to your transaction if you do not use a distributor for that transaction or if your distributor has opted-out of receiving transaction charges.

  • What is the transaction charge for direct investments?
    Transaction charges are not applicable for direct investments.

  • Is it compulsory that I pay transaction charges?
    If the purchase transaction / SIP registration of Rs. 10,000 and above is processed through a distributor who has opted to receive transaction charges, transaction charges will have to be paid by you.

  • I wish to switch my existing investment into a new scheme. Will transaction charges be payable by me?
    No. Transaction charges are applicable only for purchase transaction / SIP registration. Hence, you don't have to pay transaction charges for switches.

  • Will transaction charges be applicable for all schemes?
    Yes. Transaction charges are payable on purchase transaction / SIP registration in all categories of schemes including liquid schemes.

  • I wish to redeem my existing investments. Do I have to pay transaction charges?
    No. Transaction charges are payable only on purchase transaction / SIP registration.

  • I have invested earlier in HDFC Mutual Fund. Do I still have to pay transaction charges?
    Yes. If the purchase transaction / SIP registration of Rs. 10,000 and above is processed through a distributor and the distributor has opted to receive transaction charges, transaction charges will have to be paid by you even though you are an existing investor.

  • I have invested earlier in HDFC Mutual Fund as a guardian of my children and have submitted my PAN for that investment. How much transaction charges will I have to pay?
    The transaction charge will be Rs. 100 if the amount of purchase transaction / SIP registration is Rs. 10,000 or above.

  • I have invested earlier in HDFC Mutual Fund as the first holder and have submitted my PAN for that investment. Now, I will be investing as the second holder. Will I be charged Rs. 100?
    If the first holder has invested through a distributor who has opted to receive transaction charges, Rs. 150 will be applied as transaction charge if the first holder is new investor and Rs. 100 if he / she is an existing investor.

  • I pay consultation fees to my advisor. Will transaction charges still be applied to me?
    If your distributor has opted to receive transaction charges, these charges will be applicable to you.

  • My distributor has opted to receive transaction charges. Am I required to pay him advisory charges additionally?
    Advisory charges are decided by you in consultation with your distributor. Hence, you may liaise with your distributor in this regard.

  • I am a new investor and wish to invest in 3 mutual funds on the same day. Will I be considered a new investor in all 3 mutual funds?
    Yes. You will be considered a new investor in all 3 mutual funds.

  • I had invested 5 years back and had not provided my PAN. Will I be considered as a new investor and charged Rs. 150? Can I inform you about my earlier investment and be charged only Rs. 100?
    If you have an existing folio with us and you invest in the existing folio, you will be charged Rs. 100. In case you do not mention your existing folio in the application form while investing, you will be charged Rs. 150 for the first investment and Rs. 100 for subsequent investments since the PAN is registered after the first purchase.

  • I am a new investor and wish to invest vide SIP. When will the transaction charges be applied?
    If an SIP is submitted without the first cheque, transaction charges will be applied in 4 instalments beginning from the first SIP installment. For SIPs submitted with the first cheque (i.e. any day SIP) the transaction charges will be applied in 4 instalments beginning from the first installment after SIP registration.

  • How will be Rs. 10,000 criterion be computed for SIPs?
    The SIP value will be computed as amount per installment (x) number of installments.

  • Will transaction charges be applied for SIPs registered prior to 01-Nov-11?
    Transaction charges will not be applicable for registrations prior to 01-Nov-11.

  • I will be investing in HDFC Top 200 Fund with SIP Top - Up facility. How will be Rs. 10,000 criterion be computed?
    In case of SIP with Top-up facility, the additional amount (i.e. top-up amount) will be considered for applying the transaction charges.

  • I intend to register for STP. Will I be charged Rs. 100?
    No. Transaction charges are applicable only for purchase transaction / SIP registration is Rs. 10,000 or above.

  • I will be investing Rs. 30,000 in HDFC TaxSaver. Will I get the tax benefit for Rs. 30,000 after deduction of transaction charges?
    Yes. Tax benefits, if applicable, will be available on the subscription amount i.e. Rs. 30,000.

  • I am a new investor and will be investing Rs. 10,000 in HDFC Equity Fund. Thus, after deducting Rs. 150 as the transaction charges, the balance of Rs. 9,850 will be invested. However, the application amount is required to be in multiples of Rs. 100. How will this be resolved?
    The minimum / multiples criterion for purchases will be validated against the gross investment amount i.e. Rs. 10,000 in this case.

  • I am an NRI. What will be the transaction charges applicable to my investment?
    Transaction charges will be the same for all categories of investors.

Holding units in Demat mode

  • What are the provisions of SEBI circular No. Cir/ IMD/ DF/9/ 2011 dated May 19, 2011?
    With a view to popularize the option of holding mutual fund units in demat form, SEBI has mandated mutual funds with effect from October 1, 2011 to:

    • Provide an option to the investors to receive allotment of mutual fund units in their demat account while subscribing for units in any scheme.
    • Provide an option to the investors to mention demat account details in the application form, in case they desire to hold units in demat form.
    • Quote the ISIN along with the name of the respective scheme in all Statements of Account / Common Account Statements (CAS) issued to the investors.

  • Can I hold units in my demat account in all schemes?
    You can hold units in your demat account in all schemes offered by HDFC Mutual Fund except for the following:

    • HDFC Cash Management Fund - Treasury Advantage Plan - Retail - Daily Dividend Reinvestment.
    • HDFC Cash Management Fund - Treasury Advantage Plan - Retail - Weekly Dividend Reinvestment.
    • HDFC Cash Management Fund - Treasury Advantage Plan - Wholesale - Daily Dividend Reinvestment.
    • HDFC Cash Management Fund - Treasury Advantage Plan - Wholesale - Weekly Dividend Reinvestment.
    • HDFC Floating Rate Income Fund - Short Term Plan - Retail - Weekly Dividend Reinvestment.
    • HDFC Floating Rate Income Fund - Short Term Plan - Retail - Daily Dividend Reinvestment.
    • HDFC Floating Rate Income Fund - Short Term Plan - Wholesale - Daily Dividend Reinvestment.
    • HDFC Floating Rate Income Fund - Long Term Plan - Weekly Dividend Reinvestment.
    • HDFC Liquid Fund - Daily Dividend Reinvestment.
    • HDFC Liquid Fund - Premium Plan - Daily Dividend Reinvestment.
    • HDFC Liquid Fund - Premium Plus Plan - Daily Dividend Reinvestment.
    • HDFC High Interest Fund - Short Term Plan - Dividend.

  • If I opt to receive units in my demat account, when will I receive the account statement?
    Units will be allotted to you depending on the time of receipt of your transaction. A transaction confirmation specifying the units allotted will be sent by way of email and/or SMS within 5 Business Days after the receipt of the transaction. This transaction confirmation will be sent to the investors whose email address and/or mobile number is available with the mutual fund. The account statement reflecting the units will be sent to you by your Depository Participant (DP).

  • How do I opt for receiving units in my demat account?
    For receiving units in your demat account, you have to submit a duly filled "Application for Allotment of Units in Dematerialized Mode" along with the application form / transaction slip.

  • If I purchase units and wish to receive units in my demat account, when will I be able to view the units in my demat account?
    You will be able to view the units in your demat account within 10 days from the date of submission of the transaction.

  • Will the SIP units be available in my demat account?
    As of now, this facility is restricted to purchases other than systematic transactions including SIPs. You can opt to receive SIP units in your demat account for new SIPs registered after January 1, 2012.

  • I have a folio with live investments in 2 schemes of HDFC Mutual Fund. I wish to view the units of 1 of the schemes in my demat account. Can that be done?
    Yes. After dematerialisation of the units in 1 scheme, the account statement for the folio will not contain the details about the units in the dematerialized form.

  • I wish to redeem the units which are in my demat account. How can I do that?
    For redeeming units from your demat account, you have to approach your Depository Participant (DP) / broker for stock exchange transactions for redeeming them. You will not be able to redeem these units from any office of HDFC Mutual Fund / CAMS.

  • How do I switch the units from HDFC Equity Fund which are in my demat account?
    The units held in your demat account cannot be switched into another scheme. As an alternative, you can redeem the units from the HDFC Equity Fund and purchase the units in the other scheme.

Subscription of units of HDFC Mutual funds using VISA debit card

  • Can I purchase units of schemes from HDFC MF using my Debit card?
    Yes, this facility is avaliabe on VISA and Maestro Debit card issued by select banks. (please refer to the list of banks through whihc subscription /purchase can be made)

  • Can I use my Master card / Maestro to buy?
    Yes, this facility is available on VISA Verified and Masetro Debit cards issued by select banks.

  • Can I invest through debit card by visiting your ISC?
    No, currently this facility is only available on our online portals HDFCMFOnline and HDFCMFInvestOnline.

  • Are there any charges for using this facility?
    The fund house does not charge you for this facility, we request you to check with you bank for any charges that they might levy.

  • Can I purchase units of schemes from HDFC MF using my credit card?
    No, credits card are not accepted for purchase of mutual funds.

  • Can I transact using a Debit card from any Bank?
    Currently, this facility is offered to a list of banks only. List of banks mentioned below.

  • Which are the banks that are offering this facility?
  • VISA Debit Cards
  • Andhra Bank
    Axis Bank Limited
    Bank Of Baroda
    Bank Of India
    Barclays Bank Plc
    Canara Bank
    City Union Bank Ltd
    Corporation Bank
    Dena Bank
    Deutsche Bank Ag
    Development Credit Bank Ltd.
    HDFC Bank Limited
    ICICI Bank Ltd
    IDBI Bank Ltd
    Indian Overseas Bank
    Indusind Bank Limited
    Karnataka Bank Limited
    Oriental Bank Of Commerce
    Standard Chartered Bank
    State Bank Of India
    Syndicate Bank
    The Dhanalakshmi Bank Limited
    The Federal Bank Ltd
    The Karur Vysya Bank Ltd
    The Lakshmi Vilas Bank Ltd
    UCO Bank
    Union Bank Of India

 

  • Maestro Cards
    Bank of India
    Indian Overseas Bank
    Laxmi Vilas Bank
    Punjab National Bank
    State Bank of India
    Union Bank of India
  • Is it safe to transact using the Debit card?
    This facility has a two level authorization which is verified by VISA, hence it is a safe mode of payment.

  • Which are the schemes that I can subscribe for using Debit card?
    Currently subscription of Liquid Funds (any amount) and Debt Funds (1 crore and above) are not allowed.

  • I am an NRI, I am not getting the option of subscribing for units using my Debit card?
    Currently this facility is not offered to NRI investors.

  • What is Verified by Visa?
    The investor needs to generate a password by visiting the issuing banks site. After following the procedure the password will be generated / issued. On receipt of this online purchases using your VISA Debit card will be allowed.

DIRECT Investment

  • What is the SEBI guideline on 'DIRECT' investment all about?
    In the interest of the investors, The Securities and Exchange Board of India (SEBI) has mandated that no entry load shall be charged for 'DIRECT' applications received by the Asset Management Company (AMC) i.e. applications received through Internet, submitted to AMC or collection centre / Investor Service Centre that are not routed through any distributor/agent/broker. This circular shall be applicable to:
    • Investments in existing schemes with effect from January 4, 2008 and in new schemes launched on and after the said date.
    • Additional purchases done directly by the investor under the same folio and switch-in to a scheme from other schemes if such a transaction is done directly by the investor.

  • Since when will the waiver of entry load for 'DIRECT' applications be effective?
    The waiver of entry load for 'DIRECT' applications will be effective from January 4, 2008.

  • Is it applicable only for fresh investments?
    New / additional subscriptions, existing Systematic Investment Plans (SIP) and Systematic Transfer Plans (STP) not routed through a distributor / broker / agent will not attract entry load.

  • Would the entry load on a switch transaction be waived off in case it is routed directly, even if the transferee scheme attracts entry load?
    Any transaction routed directly, i.e. without a broker, would not attract any entry load.

  • Will I be charged an entry load for my existing SIPs / STPs registered before January 4, 2007, which were routed directly?
    No entry load will be applicable for the installments falling on or after 04th January 2008 for SIP / STP routed directly, i.e. without a broker. Units will be allotted for the entire amount of redemption.

  • For my existing SIP / STP can I change my broker code to 'DIRECT' for future installments?
    Yes. A written request has to be given by the investor(s), depending on the mode of holding, for change of broker to 'DIRECT'. For all the future installments the entry load will be waived off. However, the request should be submitted at least 10 days before the next SIP / STP date.

  • Is there any waiver of exit loads in the equity schemes?
    There is no change in the exit load provisions.

  • If I have an existing investment routed through a broker in a folio, will I be charged entry load for additional purchases?
    The investments would continue to be routed through the recorded broker unless specifically instructed by the investor by mentioning 'DIRECT' on the application form / transaction slip and signed by the Unitholder(s), depending on the mode of holding. If the broker code is preprinted then the same has to be struck off and countersigned by the investor(s), depending on the mode of holding. In addition the word 'DIRECT' should be written on the transaction slip.

  • If no broker code is mentioned on the transaction slip would the transaction be treated as 'DIRECT'?
    Yes.

  • If the broker code on the transaction slip is modified or changed to 'DIRECT', will an entry load be charged?
    The change / alteration has to be countersigned by the investor(s), depending on the mode of holding. Only then the investment will be treated as 'DIRECT' and no entry load will be charged.

  • If I invest through , will I be charged entry load on my purchase / switch transaction?
    Only if the investor selects the broker code as 'DIRECT' while transacting online, there will be no entry load for the purchase / switch transaction.

  • How many days before the next SIP / STP installment date should I submit the change of broker code request in order to ensure that it is updated and that no entry load is charged on my next installment?
    You are required to submit the change of broker code request at least 10 days prior to your next SIP / STP installment date.

  • What is the Turn Around Time (TAT) for change of broker code request to be updated?
    A change of broker code request would take approximately one week to get updated.

  • Would my folio details be disclosed to my previous broker once my broker code is updated as 'DIRECT'?
    No. However, we would intimate your old broker about the change of broker code.

  • Can I submit a change of broker code request to CAMS directly?
    Yes, as long as it is authorized by the Unitholder(s), depending on the mode of holding. However, the procedure would be different for the Channel Distributors. In such case, the documents have to be routed through the Channel Distributor.

  • If I request a change of broker code to 'DIRECT' for my transaction dated before January 4, 2008, will my units be recreated?
    No. The said guideline is effective January 4, 2008.

  • If I invest directly, can I later add a broker?
    Yes. A written request has to be submitted for change of broker code signed by the Unitholder(s), depending on the mode of holding. However, the procedure would be different for the Channel Distributors. In such case, the documents have to be routed through the Channel Distributor.

  • If I add a broker to a 'DIRECT' transaction (transaction already effected), would the broker be eligible for commission?
    Yes, the broker would be eligible for the trail commission from the date the broker code is added in the scheme.

  • After I change my broker code to 'DIRECT', would my previous broker continue to receive the trail commission?
    No.

  • I have transacted through ICICI Direct. Would my investment be subject to entry load?
    No Entry Load is applicable.

SEBI Circular on Permanent Account Number (PAN)

  • Why has PAN been made compulsory for transacting in Mutual Funds?
    Securities and Exchange Board of India (SEBI) vide their circulars MRD/DoP/Cir-05/2007 dated April 27, 2007 and MRD/DoP/Cir-08/2007 dated June 25, 2007, has made Permanent Account Number (PAN), the sole identification number for all participants transacting in the securities market, irrespective of the amount of transaction, effective July 2, 2007. Hence, all investors would compulsorily have to provide their PAN details along with the original PAN card for verification.

  • Which category of investor needs to provide PAN?
    The requirement of PAN applies to -
    • All unit holders in the folio, including Guardian(s)
    • Non Resident Indian (NRI) investors as well
    • Power of Attorney (PoA) holder,
    • Lien Holder

  • Do I need to submit PAN for all types of investments?
    Yes, PAN needs to be submitted for all investments viz. New Purchases, Additional Purchases, Switches.New SIP registrations and in the event of Transmission of units or upon Minor becoming Major. The investor needs to be KYC compliant as well.

  • I wish to invest in Mutual Funds but I do not have a PAN. How do I go about it?
    All existing and potential investors are permitted to invest in units of Mutual Fund only if he / she possesses a valid PAN card. Submission of PAN is mandatory for all investments as mentioned in point 3 above.

  • How do I apply for a PAN?
    You may apply for a PAN at any of the agencies appointed by the Income Tax Department for accepting PAN applications.
    The website links for applying for PAN are as under -
  • How do I get my PAN verified with the Mutual Fund?
    Investors who do not have their PAN verified are requested to submit a copy of the PAN card along with the original PAN card for verification at our Investor Service Centre / CAMS Investor Service Centers. The original will be returned immediately across the counter after verification.

  • Do I need to attach a copy of my PAN card and provide my original PAN card for verification over the counter each time I invest?
    No. This is a one-time process for investors who do not have their PAN verified in our records yet. Once the PAN is verified, it shall be useful for all future transactions.

  • Do I need to submit the copy of the PAN card only along with a fresh / additional investment, or can that be done at my convenience?
    An investor must submit the PAN details along with all investments. However, if an investor has an existing folio with us, he/ she must get his/her PAN verified at the earliest, even if s/he wishes to transact at a later point of time.

  • I am a Non Resident Indian. Do I still need to have a PAN if I wish to invest in Indian Mutual Funds?
    PAN has been made compulsory for all investors irrespective of the tax status or the amount of investment.

  • I have invested less than Rs. 50,000.00 in a Mutual Fund. Do I still need to have my PAN verified or would I be required to get my PAN verified only when my investment exceeds a valuation of Rs. 50,000.00?
    Yes. Effective 1st January 2011 PAN has been made mandatory for any investment in Mutual Funds (as mentioned in point 3 above) irrespective of the investment amount.

  • I am not assessed to Income Tax. Am I still required to procure a PAN and get it verified?
    Yes, PAN has been made compulsory for investing in units of Mutual Funds and also to strengthen the Know Your Client (KYC) norms.

  • I have procured a Mutual Fund Identification Number (MIN) recently and also undergone KYC compliance with your fund house. Is it mandatory for me to submit my PAN proof again?
    Erstwhile MIN was a requirement to meet the obligations of the Prevention of Money Laundering Act, 2002 (PMLA). However, PAN is a requirement under SEBI regulations and also under Income Tax Act, 1961. Hence, you are required to get your PAN details verified.
    KYC norms however, remain unchanged and PAN is now the sole identification number.

  • Currently I am out of India. Can I send scanned copy of my PAN card or fax the same for verification?
    No, you would be required to provide us with the original for us to verify the same. Alternatively, you may send us a true copy of your PAN card attested by the Notary Public, Gazetted Officer, Manager of a Scheduled Commercial Bank (Name, Designation and Seal should be affixed on the copy) or by an official from the local office of the Indian Embassy / Consulate. Please refer new KRA Norms

  • I am a Non Resident Indian (NRI). How do I apply for a PAN?
    You may apply for a PAN online with the Income Tax website (please refer to point number 5 above for details).

  • Would my application be rejected if I mention my PAN number in my application form but inadvertently miss out attaching the copy of the PAN card?
    Yes. Both application form and copy of PAN, duly verified by us, is a must for processing of any application. Applications without PAN details and a copy of the PAN card will be deemed as incomplete.

  • I invest through my Agent / Distributor who submits my application form at the Mutual Fund office. How am I supposed to get my PAN verified?
    In such a case, your Agent / Distributor must verify your PAN with the original PAN card and then submit to us. PAN verified by an Agent / Distributor shall be accepted provided the Agent / Distributor affixes his ARN seal along with his signature and name on the PAN card copy with the words "Verified with the original PAN Card" The Agent / Distributor should be the same as the one on the investment application form.

  • Can I get my PAN verified by any other entity?
    You may submit PAN attested by the Notary Public, Gazetted Officer, Manager of a Scheduled Commercial Bank or by the Indian Embassy / Consulate. Name, Designation and Seal along with the signature should be affixed on the copy with the words "Verified with the original PAN Card"

  • The joint holder of my folio is not assessed to tax and hence, does not have a PAN. How do I invest in Mutual Fund units in such a case?
    All applicants / joint holders of Mutual Fund units need to have a valid PAN.

  • What if my PAN verification fails? Will the units allotted to me be forfeited?
    For the cases wherein the PAN verification fails, the investors would be contacted by us. If we fail to get the same regularized, the investment amount is liable to get redeemed / refunded, and the folio is liable to be locked for further transactions.

  • I hold multiple folios but my PAN is verified in one of the folios. Does it get verified for the other folios automatically?
    No. You must intimate to us in writing, signed by all Unitholder(s) as per the mode of holding, mentioning your folio number(s) on a separate sheet in order to enable us to update your record. You must ensure that all unit holders (i.e., first and all joint holders) have the PAN verified too.
    However, we strongly recommend, that you consolidate all folios (certain conditions apply) for your own convenience.

  • My account statement shows PAN details and verification status as "Yes". Do I need to submit any other document?
    Since this is a new requirement, please ensure that you give a copy of PAN card duly verified. If you have done so and have an acknowledgement from us, you need not take any action.
    Mutual Funds are required to counter verify the details from the Income Tax website or the CAMS website. Your PAN card copy, duly verified will help us in case of any discrepancy.

  • My account statement shows PAN details and verification status as "No". Do I need to submit my PAN proof?
    Yes, you must get your PAN details verified with us immediately, in order to be able to carry out transactions.

  • Is there anyway I can ascertain if my PAN details with you are validated?
    Yes. We recommend that you visit the website of our Registrar & Transfer Agent (RTA), Computer Age Management Services Pvt. Limited (CAMS), the link for which is
    You may enter your PAN on the site, wherein, the link is provided in order to enable you to ascertain the status.
    If your PAN is verified, please send us a list of all your folios quoting the verification status on this website.
    This is applicable for all unit holders of the folio.

  • If I / we do not have a copy of the PAN card but have an intimation of my / our PAN card from the Income Tax authorities, will it suffice?
    No. As per SEBI circulars, we are required to verify the original PAN card.


Frequently Asked Questions (FAQs) on Prevention of Money Laundering Act, 2002 (PMLA) and Know Your Client (KYC) requirements for investors and distributors of HDFC Mutual Fund.

(For questions specific to Non Resident Indians (NRI), please refer to the NRI Section below)

  • What is PMLA?
    PMLA refers to Prevention of Money Laundering Act, 2002 (referred to in this document as "PMLA")

  • What is the meaning of KYC?
    KYC means Know Your Customer. In terms of PMLA, every intermediary (including Mutual Funds) is required to have a Client Identification Program and frame a KYC policy, which means knowing your customer by seeking information and supporting documentation about the customer's identity and address, besides other information like nationality, income source, occupation etc.

  • To which category of investors / Unit holders are these KYC requirements applicable?
    The requirement is applicable to all categories of investors eligible to invest with us viz., Resident Individual investors, Non Resident Indians, Persons of Indian Origin (PIO), HUF, Societies, Partnership Firms, Trusts, Companies, Body Corporate, Public Sector Undertakings, Banks, Financial Institutions, Mutual Funds, Foreign Institutional Investors and such other individuals / institutions, including any holders / issuers of Power of Attorney.

  • What are the requirements for Resident Indians?
    The documents required for a Resident Indian are a KYC Application form, along with a valid PAN proof, address proof, and a color photograph on a light background. Original PAN card must be shown while submitting KYC application form for verification, thereafter, which, the same will be returned across the counter.

  • Are all investors / unit holders required to meet requirements under PMLA / KYC Policy?
    Yes, PMLA and KYC requirements apply to all classes of investors. Please refer the below mentioned grid

    Applicability of KYC norms:  
    Category of Investors  
    Resident Individuals Any Amount
    Non Resident Investors/ Persons of Indian Origin Any Amount
    Investors investing through Channel Partners/Channel Distributors Any Amount
    Non Individual Investors (Corporates, Partnerships, Trusts, HUF, etc.) Any Amount


  • Are Know Your Customer Application Form (KAF) / documentation requirements separate for Individual / Non- Individual applicants?
    Yes. Separate KAF is available for Individual and Non-Individual applicants. Documentation requirements are also unique to both categories of applicants.

  • I / We have already provided my PAN copy for my investment in Mutual Fund. Is that not sufficient for KYC compliance?
    The requirement of providing a PAN is a requirement under the Income Tax Act and SEBI (Mutual Funds) Regulations, 1996. The current requirement is for KYC and under a different law - the PMLA.

  • Why should I / We comply with KYC norms when all the details are available in my/our Application Form?
    The KYC norms require submission of information matched by a valid document for proof of identity and proof of address besides other mandatory information in line with PMLA. This is a regulatory requirement and also mandated by SEBI.

  • I am a joint holder in a Mutual Fund investment account (folio). Do I need to comply with KYC requirement?
    Yes. Each investor, including all joint holders within a folio / all other folios needs to get KYC compliant. If investment is in the name of a minor, the Guardian has to be KYC compliant. Holders and issuers of Power of Attorney, both have to be KYC compliant.

  • Is it necessary for a minor to be KYC complaint?
    A minor investor does not require to get KYC compliant. In such cases, the Guardian has to be KYC compliant and provide his / her KYC Compliance letter along with the minor's investment application form.

  • What happens when the minor becomes a major?
    On attaining majority, he / she has to apply for his / her independent KYC status, should they choose to invest with us thereafter. Guardians will not be able to use their KYC Compliance letter thereafter for the minor. However they can continue to use such KYC Compliance letter for their individual transactions.

  • As an existing Investor / Unit holder, I / We do not have investments of / intend to invest Rs. 50,000 or more. Do I / We still have to meet the KYC requirements?
    With effect from 1St January 2011 all investors need to be KYC compliant to invest in mutual funds irrespective of the investment amount.

  • How do I / We get KYC compliant and are there any charges to be paid?
    HDFC Mutual Fund requires you to submit a completed KAF at a designated POS, seeking certain mandatory information about you, your address, income, nationality, occupation etc, supported by valid documents and also a recent photograph. Presently, there are no charges for getting KYC compliant.

  • How will I / We come to know my /our KYC Compliance status?
    On receipt of KAF along with the required documents, the KYC Compliance letter will normally be issued across the counter at the designated Official Points of Service after preliminary verification of documents. However, based on final verification of the documents at the back office, the KYC Compliance letter may be invalidated in case of deficiency of documents / incomplete information.

  • Can I / We submit the proof of address in a local language?
    If a valid document (including attestations / certifications) towards proof of address is in a regional language or a foreign language, they have to be translated into English prior to submission.

  • Does a Nominee have to be KYC compliant?
    Not while he / she is a nominee. In the event of such nominees stepping into the shoes of a unit holder by virtue of Operation of Law, the nominee has to complete KYC requirements in force at that time. If the nominee is still a minor in such an event, the Guardian of the minor has to be KYC compliant.

  • For a HUF investor, who has to comply with the KYC requirements?
    The HUF as an entity is required to be KYC compliant.

  • For a partnership firm investing in a mutual fund scheme, do all partners have to comply with the KYC requirements or merely the Authorised Signatory (ies)? The Partnership entity is required to be KYC compliant and not the individual partners. Hence all requirements as applicable to a non-individual applicant will apply. Please refer new KRA norms.

  • Can the address proof and identity documentary proof, be of any date?
    Only Permanent Account Number (PAN) card can be submitted as a Identity Proof. However, for proof of address a most recent document has to be submitted (not more than 3 months old). If proof of address is for example a passport, such a requirement will not apply as long as it is a valid passport.

  • All applicants from a folio have the same address. Do we need to give separate documents evidencing address?
    Yes. KYC compliance is for each applicant. Unique sets of documents are required from each applicant. Please note that this is a one time requirement unless there are changes in the address or if additional information is required by any governmental / regulatory body (ies) in terms of PMLA.

  • What attestations are required for KYC related documents?
    All documents required by us in terms of PMLA must be certified i.e. attested / gazetted / notarized by appropriate authorities (see instructions on KAF). In case you wish to bring the original documents to our offices, the copies of such documents should be self-certified. In such cases, original documents will be seen for verification by POS and returned to the applicant.

  • Can I / We submit the "photocopy of an attested copy" of an original document?
    No. Such documents will not be accepted. Every documentary proof has to be either certified i.e. attested / gazetted / notarized by appropriate authorities or the document has to be produced in original with self-attested photocopies for verification.

  • What happens if any document / information deficiency is observed?
    Any deficiency in documentation / information will render the KAF and KYC Compliance letter, if any, allotted as invalid.

  • Do I / We have to reapply for KYC Compliance if my allotted KYC Compliance letter is deactivated?
    Yes. You will have to submit a new KAF with all requisite valid supporting documents.

  • I have recently been married and my name has changed. What should I do in terms of PMLA?
    Investors / Unit holders must send their request for change in name at the earliest supported by a valid document (such as a attested / gazetted copy of the marriage certificate) evidencing the marriage and change in name to the designated Official Points of Service.

  • I / We already have a KYC Compliance letter provided by a POS / Registrar / other Mutual Fund. Can I / We use the same for investing in your Fund?
    As long as it is a KYC Compliance letter issued by CDSL Ventures Limited (CVL) at any official Point of Service, it is valid. Such KYC compliance letter should have been obtained by submitting a valid PAN copy. No other number/letter issued by any other entity (unless designated by HDFC Mutual Fund in future) will be recognized as a valid KYC compliance, if such a number/letter is used for transacting with HDFC Mutual Fund.

  • Do I/We need to attach the KYC Compliance letter at the time of each transaction?
    Each investor / unit holder has to attach the KYC Compliance letter issued to him / her / it for a new subscription. Our Registrars and Transfer Agents will update the KYC Compliance status of all unit holders with the same PAN on our record by drawing the KYC status from CVL and thereafter the KYC status will be mentioned in your account statement.

  • What do I / We need to do in case I / We have multiple folios with HDFC Mutual Fund?
    Such Unit holders must send us a separate letter containing a complete list of their folios. The list must explicitly state the unit holders name, scheme, plan, unit-holding pattern (whether 1st / 2nd / 3rd unit holder). All unit holders must sign such letters. Invalid requests will not be processed. We also strongly recommend that for similar unit holding patterns across folios, you send us a request for consolidation of folios.

  • I / We do not want to invest now, can I / we apply for KYC Compliance?
    It is in your own interest to do so at the earliest, so that a future investment is smoothly processed.

  • Do I need to be KYC compliant to switch between schemes of HDFC Mutual Fund?
    Yes, you need to be KYC compliant to switch between schemes of HDFC Mutual funds irrespective of the switch amount.

  • Which transactions will the KYC be applicable?
    KYC will be applicable for the below mentioned
    • New / Additional Purchases
    • Switch Transactions
    • New SIP/ STP/ Flex STP/ FlexIndex/ DTP registrations received from the effective date.

  • Which transactions are excluded from KYC?
    KYC will be not be applicable for the below mentioned
    • Existing SIP/ STP/ Flex STP/ FlexIndex/ DTP registrations, including those received till December 31, 2010
    • Dividend reinvestment transactions of any amount.

  • Can I quote my Mutual Fund Identification Number (MIN)?
    The erstwhile Mutual Fund Identification Number is now withdrawn since PAN is the sole identification number for KYC compliance. However if the investor had applied for MIN with PAN as the proof of identity, he can submit the MIN intimation letter and quote his PAN at the time of application. If PAN was not submitted as a proof of identity at the time of procuring MIN, then the unit-holder has to reapply for KYC compliance with PAN as the proof of identity.

  • Will my purchase application be rejected if I am not KYC compliant?
    From 01st January 2011 if an investor or the joint holders are not KYC compliant purchase applications will be rejected.

  • The joint holder of the folio held be me cannot sign. Can s/he affix her / his thumb impression on the KYC acknowledgement form?
    Yes. However, the same has to be duly attested by a Gazetted officer.

    NRI SECTION
  • Are there any special requirements for Non Resident Indians?
    Yes. Such applicants must furnish a certified copy of proof of their identity (their PAN). PAN is the sole identification number for KYC compliance. Also a copy of their overseas / local address proof (as applicable) certified by a local authority / Indian embassy / consulate is required. If documents are not in the English language, they must be translated into English.

  • Are there any special requirements for Persons of Indian Origin (PIO)?
    Yes. The requirements are same as those applicable to Non Residents Indians.

  • Currently I am out of India. Can I send scanned copy of the required documents or fax the same for verification?
    You may send us a true copy of your documents attested by the Notary Public, Gazetted Officer, Manager of a Scheduled Commercial Bank (Name, Designation and Seal should be affixed on the copy) or by an official from the local office of the Indian Embassy / Consulate. However, the KYC application form has to be in original only.

  • I work for the Merchant Navy and hence, do not have any overseas address proof. I wish to get KYC compliant. How do I go about it?
    You may provide your local address proof and a notarized copy of mariner's declaration or your Continuous Discharge Certificate (CDC).

    GUIDANCE NOTE
    This FAQ is only meant to clarify certain basic questions around PMLA. The information given is included only for general purpose and the investors / unit holders should be aware that the relevant rules, regulations, or their interpretation might change. We strongly advise you to contact your distributor / our Investor Service Center / official POS for any additional information / clarifications. Please read the notes, guidelines and checklist given on the reverse of the KAF before filling up / submission of the same to a POS. Please visit the website of the Financial Intelligence Unit of the Government of India at http://fiuindia.gov.in or the website of Securities and Exchange Board of India at http://www.sebi.gov.in/ regularly for further information.


Consolidated Account Statement


  • What is a Consolidated Account statement (CAS)?
    Consolidated Account Statement is a single account statement that reflects all transactions of a unit holder in all folios across all schemes of all mutual funds.

  • When will I start receiving the CAS?
    The first CAS statement shall be sent in the month of November 2011 covering all your transactions in October 2011. Thus, CAS will be sent every month going forward, for your transactions during a calendar month and dispatched to you before the 10th of a succeeding month.

  • Is there a charge / fee for receiving the CAS?
    CAS is absolutely free of charge to a unit holder

  • What will be the basis for consolidation across other fund houses?
    Investors will be identified across fund houses by their permanent account number - PAN for the purposes of a Consolidated Account Statement. Holding pattern in the folios determines CAS. For example if unit holders A, B and C are all unit holders in a particular folio, all folios within the Fund House and across mutual funds with a similar holding pattern will be classified for consolidation purposes

  • What types of transactions / folios will be included or aggregated for CAS?
    CAS will include only those folios in which financial transactions have taken place during the month. e.g. if you have three folios and but you transact in only two folios during the month, then CAS for the month will include only the two folios and not the folio where there were no transactions.

  • Which kind of financial transactions will be included in CAS?
    CAS will include all types of financial transactions like subscriptions including NFOs, redemptions including those under fixed maturity plans, switches, systematic transactions like SIP, SWP, STP etc, dividend payouts or reinvestments, etc.
    • What is an Exchange Traded Fund (ETF)?
      An ETF is a fund whose units are listed on stock exchanges. Units can be bought and sold just like stocks at prices, which may be close to the NAV of the scheme. Most ETFs track an underlying security or group of securities like index, sector stocks or commodities like gold.

      ETFs are an attractive investment avenue due to their lower costs, as compared to other forms of investing, and tax efficiency.

    • What is Gold ETF?
      A Gold ETF is an ETF whose assets are invested in gold bullion with the objective of generating returns that are in line with the performance of gold (and gold related instruments including derivatives - as and when permitted by SEBI) subject to tracking errors.

    • How is fund managed? Active or Passive?
      These are passively managed funds and are designed to provide returns that would closely track the returns from physical gold in the spot market.

    • How do Gold ETFs differ from physical gold?
      Unlike physical gold, Gold ETFs are held in demat / electronic form and can be traded on a stock exchange just like buying and selling stocks.

    • How are Gold ETFs better than physical gold?
      Gold ETFs score over physical gold, because they eliminate the hassles and drawbacks of physical gold (e.g. impurity risk), are more tax-efficient and allow you to invest in small amounts.

    • How are Gold ETFs better than Gold Funds?
      Gold ETFs are better than Gold Funds because in comparison to Gold Funds, Gold ETFs are less volatile. While gold ETFs invest in physical gold, Gold Funds invest in equities of gold mining companies; and gold stocks are more leveraged to the gold prices than the gold itself.

    • What is the minimum application amount during the New Fund Offer Period of HDFC Gold Exchange Traded Fund (HGETF)?
      Authorised Participants: Application for subscription of Units should be in Creation Unit Size. Each Creation Unit Size will consist of 1,000 units of HDFC Gold ETF and 1 Unit of HGETF will be approximately equal to 1 gram of gold.

      Other Investors (including Large Investors): Rs. 5,000 and any amount thereafter per application during the NFO period. In case of investors opting to switch into the scheme from the existing schemes of HDFC Mutual Fund (subject to completion of lock-in period, if any) during the NFO period, the minimum amount is Rs. 5,000 per application and any amount thereafter.

    • Who are Authorised Participants (APs) and Large Investors?
      The member(s) of NSE or any other recognized stock exchange and their nominated entities/ persons are appointed by the AMC to act as an Authorised Participants for the Scheme. They act as market makers to improve the liquidity of ETF on the exchanges. The APs provide quotes in the exchange and ensure that investors have a ready buyer and seller any time they wish to enter into a transaction during market hours. After the NFO, only AP's and Large Investors can create/ redeem Units directly with the Mutual Fund.

      Large investors are investors who buy Units in Creation Unit Size. Presently this size is 1000 Units and is equivalent to 1 kg of physical gold. Large investors can directly create or redeem the Units in lieu of physical gold of 1 kg and multiples thereof from the AMC if they so desire. Please do refer to the Scheme Information Document for more information on the same.

    • How does one invest in HDFC Gold ETF after the NFO?
      After the NFO, Units of the Scheme will be listed on the National Stock Exchange of India Ltd (NSE). Investors can buy or sell units on a continuous basis on the NSE on which the units are listed during the trading hours on all the trading days like any other publicly traded stock at prices which may be close to the NAV of the scheme.

      Subscriptions made through Stock Exchanges will be made compulsorily in demat mode by specifying the number of Units to be subscribed and not the amount to be invested. The minimum number of units that can be brought or sold through the NSE is 1 (one) Unit of HGETF.

      Further, the Scheme would be open for subscription (Purchase/ redemption) only for Authorized Participants and large investors in "Creation Unit Size" on all business days from the date of listing at NAV based prices.

    • Can one invest in the HGETF through a Systematic Investment / Transfer Plan?
      Systematic Investment Plan (SIP), Systematic Transfer Plan (STP), HDFC FLEX STP, Systematic Withdrawal Advantage Plan (SWAP), Dividend Transfer Plan (DTP) and HDFC Flexindex Plan are not available under this scheme.

    • What are the plans / options available under the HGETF?
      Currently, there are no Investment Plans / Options being offered under the Scheme. However, the Trustee reserves the right to introduce investment plan / options under the Scheme at a future date in accordance with SEBI (MF) Regulations.

    • What is the purity of the underlying gold?
      Gold ETFs invest in standard gold bullion with purity (fineness) of 995 parts per1,000 (99.5%) or higher.

    • How will AMC check the quality of the gold that your Authorised Participants (APs) will deposit with custodian?
      The custodian will accept physical gold only if the gold is in the compliance with the Good Delivery norms specified by LBMA as described in the SID. The Custodian will also ensure that Gold bars deposited with it indicate that the fineness is 995 or above.

    • Can I exchange Units of Gold ETF for gold?
      No (except for Authorised Participants and Large Investors). Delivery of the gold will be at the location of the Custodian within the jurisdiction of Mumbai.

    • How are Gold ETFs taxed under Income Tax Act, 1961?
      YGold ETFs schemes are treated like non- equity mutual funds for the purpose of taxation. So, the gains attract short term capital gains (STCG) tax if held for less than one year and long term capital gains (LTCG) tax if the period of holding is more than a year.

      For futher details please refer to the Scheme Information Document (SID), which is available on our website http://www.hdfcfund.com/, and at the ISCs/ Bank Collection Centres of HDFC Mutual Fund. Investors can also contact us on 1800 233 6767 (toll free) or send an email at .

      Disclaimer: The responses in the FAQs alone are not sufficient and should not be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. While utmost care has been exercised while preparing the FAQs, HDFC Mutual Fund / HDFC Asset Management Company Limited (HDFC AMC) does not warrant the completeness and absolute accuracy or completeness of this information and disclaims all liabilities, losses and damages arising out of the use of this information. The recipient alone shall be fully responsible / liable for any decision taken on the basis of this material. The recipient before investing in this Scheme should make his or her own investigation and seek appropriate professional advice. Please read the Scheme Information Document of the Scheme and the Statement of Additional Information before investing.


    HDFC Mutual Fund - Multilingual Statement of Account (MSA)

    • What is a Multilingual Statement of Account?
      This is a new facility from HDFC Mutual Fund in an effort to help investors read their Mutual Fund statement of account in the language they wish to and in a user-friendly manner. Multilingual Statement of Account (MSA), as the facility is called, is offered to unit holders of HDFC Mutual Fund.

    • What are the features / details available in the MSA?
      • Transaction details.
      • Portfolio Summary.
      • Summary of Account Registration Details
      • Fund Messages
      • Summary of Dividends Undelivered, if any
      • Load Structures.

    • What are the pre-requisites for this facility?
      • An Existing Folio.
      • An Email ID OR Mobile number registered with us.
      • Permanent Account Number (PAN) or bank account number registered in our records (Please note for multiple bank accounts registered with us, use the default bank account number only).

    • I am an existing subscriber of the facility? Can I view the multi lingual statements?
      Yes. The option of viewing the multi lingual statements is part of the menu. Please click here to login on to .

    • I do not have an email ID nor do I have a mobile contact number registered with HDFC Mutual Fund. How can I register for this facility?
      In case your email ID and Mobile number is not registered with HDFC Mutual Fund, a link will be provided on the MSA login screen on our website to download the contact details updation form. The duly filled and signed form can be submitted at any of our nearest Investor Service Centres (ISCs). Upon receipt of the valid request we will update the email/mobile contact information. Once the details are updated, you can avail this facility.

    • I have an email ID and also a mobile contact number registered with HDFC Mutual Fund. How can I avail this facility?
      You can avail this facility in two ways. With a registered mobile number, you can view the MSA instantly, by way of a unique passcode, which will be sent to you. This passcode will help you view the statement on our website. Similarly, if you have a registered email ID with us, a statement of account will be mailed to this email ID.

    • I am an NRI and my mobile number is not from a service provider in India. Can I avail this service?
      No. This service is not available if you have a mobile service from a non-Indian service provider. The best option for you is to avail this service through a registered email ID.

    • What if my contact details i.e. my mobile number or the email id is incorrectly registered?
      In case your email ID / Mobile number has been incorrectly registered (or you may have changed the contact details and not informed us), you may submit the correct details using our contact details updation form. Please click here to download this form. Upon the receipt of the request we will update the correct email/mobile. You can then avail this facility.

    • What is a passcode?
      The passcode issued to you is unique and is meant to ensure security of your investment information. It will ensure that the passcode is issued only to the registered mobile number of the unit holder and information is securely accessed.

    • Does the passcode issued to me have any validity?
      Yes, this has a validity period of 30 minutes from its generation. This is also a security feature. To request for a new one, please repeat the procedure prescribed for MSA on our website. A new passcode will be messaged to your registered mobile number.

    • Can I re use the same passcode?
      This is a one-time use passcode. Each time you request for a statement to view instantly, a new passcode will be required.

    • Are Hindi and Marathi the only languages available for the MSA?
      No. English statements are presently available. Hindi and Marathi were chosen as the first non-English language for the MSA. Other major Indian languages like Tamil, Telgu, Kannada, Malayalam, Bengali and Gujarati are languages which are available on MSA.

    • Are these the only languages that are planned?
      No, we would like to offer the MSA service in other Indian languages as well. Your feedback of the preferred language besides the ones available / planned for launch will be of immense use for other languages to be considered.

    • Will I be able to see the complete account statement?
      There are two options available.
      a. A standard account statement : This is a predefined statement with a host of information for a period that you choose to have.
      b. A customized statement of account: Your have the freedom to choose the contents of the statement that you wish to have. Certain mandatory information will however form part of the statement.

    • Do I have the option to choose only the specific period of investments in the MSA?
      Yes you have the option to choose the same from a range starting 1 year, 6 months, 3 months and 1 month.

    • Will I get the physical MSA if requested for?
      This facility is available online on our website www.hdfcfund.com, through , can be emailed to you and also available at all our Investor Service Centres.

    • If I register for the MSA facility will the current option of receiving the account statement discontinue?
      No. This is only an added facility. All other facilities will continue.

    • Will I be charged for availing this facility?
      This facility is free of cost to the unit holder.

    • What are the advantages of this facility?
      The MSA facility has been introduced for the convenience our investors keeping in mind their varied and changing needs. This facility offers:
      • Online account statement which can be downloaded anytime, anywhere.
      • Available on demand at all offices of HDFC Mutual Fund.
      • It can be viewed in the language as per the choice of the investor (presently Hindi, Marathi, English,Tamil, Telgu, Kannada, Malayalam, Bengali and Gujarati  with more Indian languages to follow shortly).
      • Provides additional useful information viz. fund related messages for unit holders, summary of undelivered dividend warrants (if any), existing products and / or services, new products and/or services, load structures of schemes etc.
      • Most importantly, it shall help unit holders understand their statement of account and its contents better, in the language of their choice.

      • In case you have any additional queries, please feel free to:
        There are two options available.
        a. Call us on 1800-233-6767 / 60006767 (Do not use any code).
        b. write to us at .
        c. Visit any of our Investor Service Centers or,
        d. Contact your independent financial advisor.


    HDFC Flexindex Plan

    • What is HDFC Flexindex Plan?
      HDFC Flexindex Plan is a facility provided to the Unit Holders to set triggers based on the predetermined event to enable automatic transfer of a specified percentage of the amount registered in the source schemes to select target schemes on the trigger date occurring during the period of 1 year from the date of registration under the plan.

    • What is the trigger?
      Trigger means the predetermined event set by the Unit holder (s) of the source scheme.

    • What is the predetermined event?
      Predetermined event is the reaching or crossing of closing Index Level as specified by the Unit Holder during the period of 1 year from the date of registration under the HDFC Flexindex Plan. Index refers to the BSE Sensex.

    • What is the trigger date?
      The trigger date is the date on which the closing value of index meets or crosses the Index Level(s) as indicated by the Unit Holder(s) in the enrolment form.

    • What is the period of enrolment for HDFC Flexindex Plan?
      The enrolment period is 1 year from the date of registration by the Unit Holder under the HDFC Flexindex Plan.

    • How can I register?
      The unit holder should fill the HDFC Flexindex Plan enrolment form. The form has to be complete in all respects and signed by all init holders. It should be submitted at the official point of acceptance. The AMC will require at least 7 calendar days from the date of submission of valid enrolment forms to register the Unit holder under the Plan.

    • Is this facility available for all schemes?
      Currently, the source schemes available under HDFC Flexindex Plan are as follows:
      • HDFC Cash Management Fund (including Call, Savings Plan, Treasury Advantage Plan)
      • HDFC Liquid Fund
      • HDFC Liquid Fund Premium Plan
      • HDFC Floating Rate Short Term Plan
      • HDFC Short Term Plan
      • HDFC High Interest Fund Short Term Plan.
      Currently the targets schemes eligible for HDFC Flexindex Plan are as follows:
      • HDFC Growth Fund
      • HDFC Equity Fund
      • HDFC Top 200 Fund
      • HDFC Capital Builder Fund
      • HDFC Index Fund
      • HDFC Core & Satellite Fund
      • HDFC Premier Multi-Cap Fund
      • HDFC Prudence Fund
      • HDFC Balanced Fund

      The unit holder must have holding in the dividend re investment and growth options in the source scheme.

    • What is the load applicable? / Is there any separate Load structure for this product?
      The normal load structure, if any prevalent at the time of registration will be applicable both for the source scheme as well as the target schemes. There is no separate load structure for switches done through the HDFC Flexindex Plan. However the transfer of the amounts from the source scheme will happen without payment of any exit load, if any and the subscription in the target scheme shall happen subject to payment of entry load if any.

    • What is the minimum amount for registration of HDFC Flexindex Plan?
      The minimum unit holder's account balance or a minimum amount of application in the source scheme at the time of enrolment should be Rs. 20,000. This amount, which will be registered, must be available in the source scheme at the time of registration

    • What is the minimum amount to be switched into the target scheme when a trigger is activated?
      For a first switch (trigger) into any of the target equity schemes the minimum amount for the switch to be valid should be Rs 5,000/-. If the switch amount is lower than this amount the switch transaction will be rejected. For existing investors in the target equity schemes any amount can be switched in.

    • Will I get a confirmation of registration?
      Upon registration the unit holders will be sent a confirmation through a letter. Confirmation through Email and SMS will be sent wherever the e-mail id / mobile phone details are available. We strongly advocate that you provide these electronic contact means to ensure speedy communication.

    • What are the options available in HDFC Flexindex Plan?
      There are two options available under the said plan viz. Flexible Instalment Option and Fixed Instalment Option. Unit holders will use separate form for enrolling under each option

    • What is the default option if a unit holder does not indicate either of the two options?
      In case of valid enrolment forms are received without indicating any choice of option, the default option considered for processing the form will be the Fixed Instalment option.

    • What are the percentages, which can be indicated under the Flexible Instalment Option?
      Under the Flexible Instalment Option the minimum percentage to be indicated against each index level trigger is 10% and in multiples of 1% thereafter. The cumulative percentage indicated at all the four levels must be equal to 100%.

    • What are the percentages, which can be indicated under the Fixed Instalment Option?
      Under the Fixed Instalment Option the percentages indicated against each of the four levels is fixed at 25%.

    • Can a unit holder indicate any BSE Sensex levels?
      Yes. Any level can be indicated. However the BSE Sensex levels filled in by the unit holder must be in multiples of 100 points e.g. 9600, 10300,8900,11,700 etc. Index levels in ascending or descending order or vice versa or combination of both maybe indicated.

    • Can I change the percentage of Switch amount?
      No. The percentage for switch indicated at each level will be valid for a period of 1 year.

    • What if the Trigger level is not reached for a long time? / Is the registration perpetual?
      In case there is balance in the source scheme and the triggers have not been exhausted one year from the date of registration then this balance will be automatically switched over 6 monthly installments at fixed amounts on the first of every month (or immediately following business day, if that day is not a business day). This is part of the terms and conditions of the enrolment for the HDFC Flexindex Plan.

    • How will I get a confirmation in case a switch is triggered?
      An account statement will be sent to the unit holder, which will give details of the switch transaction processed in the folio. The account statement will have the narration for the switch transaction processed, which will indicate the details including the percentage of amount switched pertaining to the HDFC Flexindex Plan registered.

    • What will happen if the second level trigger is attained before the first?
      The levels indicated in the HDFC Flexindex form do not denote the order in which the switches will be processed. If at all the second level is breached before the first level the switch transaction will be triggered based on the same.

    • Can I change the trigger levels anytime?
      No. The levels once registered cannot be changed. An investor has an option to discontinue the facility and register afresh for the new trigger levels. One-year validity will be from the new registration date in such case.

    • What if a trigger level is attained in the time period between submission of he application and actual registration?
      The application for enrollment for HDFC Flexindex Plan should be submitted at least 7 calendar days before the first event trigger date. In the intervening period between the date of submission of the enrolment form and the registration of the HDFC Flexindex Plan, if the any index level or NAV as defined in the form is reached, the same will not be considered.

    • What will happen if any of the trigger levels is attained more than once?
      Once the trigger has been activated for a particular index and the switch transaction is processed, the switch will not be done if the earlier level is already reached. The trigger once activated at a certain level will only be a one-time trigger. For e.g. if the trigger is activated at Sensex level of 8500 on a particular day and the percentage switch indicated at this level is processed, it will not be activated again if the Sensex touches 8500 at a subsequent date within the validity period of 1 year.

    • What will happen if the balance in the switch-out scheme is less than the trigger amount on a particular trigger date? What will happen if the balance in the source scheme is NIL?
      The switch will not be processed in case of insufficient or nil balance then the switch will not be processed for the trigger. However within the plan period if balance is available in the source scheme and the trigger level is met then the switch transaction will go through to the target scheme.

    • How can I discontinue this facility?
      Unit holders will have the right to discontinue the HDFC Flexindex Plan facility at any time by sending a written signed request to the ISC. Notice of such discontinuance duly signed by the unit holder(s) should be received at least 7 calendar days prior to the next trigger date .In case of joint holding all the unit holders must sign. On receipt of such request, the said facility will be terminated and notified to the unit holder. In case a trigger is activated in the interim period before ceasing the request the switch transaction will be processed.

    • What happens if none of the triggers or some of the triggers are met at the end of the registration period?
      On completion of 1 year from the date of registration, in case Nil Triggers or few triggers are activated, then the balance of the amount registered under the Plan will be automatically transferred into the Target Scheme in 6 equal monthly installments on 1st of every month (or immediately following business day, if that is not a business day) provided the balance amount is not less than the minimum amount of transfer per installment under Systematic Transfer Plan (STP) of the respective schemes. Load structure as prevailing under STP will be applicable and transfers will be subject to STP terms and conditions.

    • Can I apply for HDFC Flexindex Plan only and not the subsequent 6-month STP, in case of non-occurrence of trigger events?
      No. The STP one year from the date of registration is automatic. In case the unit holder does not want the STP he can give a cancellation request before the STP is activated.

    • What happens if the balance amount under the HDFC Flexindex Plan falls below the minimum amount of transfer per installment under STP as indicated under point no 20 above?
      The amount shall continue in the source scheme.

    • Can I register multiple options in the source scheme under the HDFC Flexindex Plan? What would be the minimum amount for such registration?
      Yes. The minimum amount in the source scheme for each HDFC Flexindex Plan enrolment should be met. For e.g. if a person has registered for HDFC Flexindex Plan in HDFC Top 200 and HDFC Equity Fund. The minimum amount in the source scheme (s) must be Rs 40,000/-. i.e. Rs 20,000 for each of the two schemes.

    • In case two levels are breached on a particular date will the switch be processed only for one level or will it be processed for both?
      1. If on a particular date the trigger activated is based on the second or third level in the options enrolled for, the cumulative percentage across the levels will be switched into the target scheme. For e.g. if the Unit holder has enrolled in the following option:
      Serial no. Index Levels % to be switched
      1 9600 25
      2 9300 25
      3 10400 25
      4 11200 25

      Assume the following scenarios:
      Opening Index Level on April 01, 2009: 9700 points. The closing Index Level touches 9250 points. As a result 2 Index levels are trigged, one at 9600 and second at 9300, which means 50% of the registered amount will be switched into the select Target scheme. In the above example if Rs. 1 lac has been enrolled for the trigger plan, then Rs. 50,000 will be switched into the select target scheme and the units will be allotted at the closing NAV of April 1, 2009.

    • What happens in case of death of the unit holder or if the units in the source scheme are pledged?
      HDFC Flexindex Plan will be automatically terminated if all units of the Source scheme are pledged or upon receipt of intimation of death of the Unit Holder.

    Disclaimer:

    The responses in the FAQs alone are not sufficient and should not be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. While utmost care has been exercised while preparing the FAQs, HDFC Mutual Fund / HDFC Asset Management Company Limited (HDFC AMC) does not warrant the completeness and absolute accuracy or completeness of this information and disclaims all liabilities, losses and damages arising out of the use of this information. The recipient alone shall be fully responsible / liable for any decision taken on the basis of this material. The recipient should before enrolling for HDFC FLEXINDEX PLAN ('Plan') make their own investigation, read the terms and conditions of the Plan and seek appropriate professional advice. The Plan in any manner whatsoever is not an assurance or promise or guarantee on part of HDFC Mutual Fund/ HDFC AMC to the Unit holders in terms of returns or capital appreciation or minimization of loss of capital or otherwise. Please read the Scheme Information Document and Statement of Additional Information of the Schemes before investing.



    • What is new in ?
      is a mobile application which enables you to transact using your smart phone.

    • Where can I download the app??
      The app is available on Google play store free of cost

    • What are the minimum requirements to download the app??
      The requirements are phone with Android O/s 2.3 (Gingerbread), 10 MB space for installation and active Data Plan

    • Which phones can the app downloaded?
      Currently the application is available on Android based smart phones, refer the minimum requirements.

    • Which transaction can I do using the app ?
      The application allows the investor to purchase / redeem / switch / register for systematic transactions and host of other features

    • Can I login using my Folio and HPIN?
      No, you need to login with your User ID and password on the app

    • Can I request for an account statement through the app?
      Yes, you have the option to request for an email statement

    • I do not have a user ID, can I create the User Id using the app?
      The app offer you the facility to create the User ID

    • I already have a user ID for , do I need to create a new User id for ?
      No, you do not need to create a new User ID, its common for and .

    • Can I install this application on my Android Tablet?
      This application is designed specifically for mobile phones, it’s recommended you do not install this on your tablet. We will be launching the tablet ver soon

    • Can I register for systematic transaction using the app ?
      The application allows the investor to register for systematic transactions (SIP/ STP/ Flex index /Flex STP)

    • Are there any charges for using
      HDFC MF does not levy any charges for using this application, we request you to check with your mobile service provider as they might levy data usages charges (mobile internet)

    • Do I get a confirmation when I transact on ?
      Yes, email is triggered on your registered email id once the transaction is processed successfully
    • Is transacting safe on ?
      Reasonable safety measures have been undertaken to protect the interest of all our Investors.

    • What are the payment options on ?
      You can subscribe / purchase units of HDFC Mutual Fund using Net banking, Debit card (VISA / Maestro) and RTGS (for investments 2 lac and above)

    Fixed Maturity Plan - Post listing requirements

    • How do I apply for units of a Fixed Maturity Plan?
      The investor can apply for the units using the application form attached to Key Information Memorandum (KIM) and submit the same to any Collection Centres (HDFC Bank Ltd) / ISCs / Official Points of Acceptance of HDFC Mutual Fund ('the Fund') during the New Fund Offer period.

    • Is it compulsory to hold units in demat form?
      The investors applying for subscription of units of HDFC FMP Schemes would have an option to hold the Units either in physical form or in demat form.

    • Can units under the Plans be held partially in physical and demat form by the Unit holder?
      Yes. However, Unit holders must use separate application forms for investing simultaneously in both i.e. physical form and demat form.

    • Will these units be automatically listed on a stock exchange?
      The Units issued in demat form will be listed on the capital market segment of the National Stock Exchange of India Limited (NSE) within 30 days from the closure of NFO. In case a Unit holder wants to hold units in a demat form he will have to give the details of his demat account in the space provided in the application form. It will not be automatically allotted in demat form without the requisite details.

    • Is it possible to redeem units before maturity of the FMP?
      No, the units cannot be redeemed before maturity directly with the Fund. However the units held in demat form can be redeemed (sold) on a continuous basis on NSE.

    • If an investor is willing to hold on till maturity, Does he needs a demat account?
      No. He can hold the units as per the current form. He will get the redemption proceeds at maturity.

    • Can I switch units out of a FMP before maturity into another scheme?
      No. The switch can be done only on the date of maturity.

    • Can I dematerialize the units after allotment but before the date of maturity?
      Yes. The Unit holder will have to fill in a Request Form for Demat, and submit the same alongwith the account statement to your DP. The Unit holder has to ensure that enclosed account statement is defaced by marking "Surrendered for Dematerialisation" on the face of the statement.On verification, the same will be forwarded the Registrar & Transfer Agent ('CAMS') to the CDSL/NSDL for dematerialization.

    • Is it compulsory to mention the ISIN of the Unit while filling up the DRF (Demat Request Form)?
      Yes, the ISIN of the Unit should be mentioned in the DRF, to ensure that the correct Unit is dematerialized. Separate ISIN will be allotted for each Plan/Option of the respective Plan(s). If, however, the investor does not know the ISIN, the same can be obtained from the DP or from CDSL /NSDL website or from the Fund.

    • Can I rematerialize the units once they have been allotted in demat form.
      Yes, if you wish to convert the units in physical form (i.e. account statement), a request has to be made to your DP for rematerialisation in Remat Request Form (RRF), who will forward to the Registrar & Transfer Agent ('CAMS').. Once the rematerialization is complete, an account statement will be sent to the Unit holder.

    • Can a channel investor apply for the units in demat form?
      Yes. The channel will have to provide the demat details in the channel feed at the time the file is sent to the Registrar & Transfer Agent ('CAMS'). The provision for the said codes is already there in the existing transaction feed format.

    • How can I change the non-financial details for units held in demat form?
      The request for any change in non-financial details is required to be informed to your DP. If any request is received from such investors at any of the official points of acceptance at the AMC, the same will be summarily rejected and necessary intimation will be sent to the respective investor.

    • Is it possible for the channel investor to convert his holdings from the physical mode to demat mode?
      Yes. The conversion process defined in (6) above for the normal investors will apply to such investors.

    • Will I get the redemption proceeds if I hold in units in demat form till maturity?
      Yes. The Unit holder will get the redemption proceeds directly into their bank account linked to their demat account if he holds the units in demat form till maturity.

    • If there is no PAN in the demat account, but there is one submitted at the time of application.
      The Units cannot be allotted in demat form, in case your demat account is frozen / in activated by the DP on account of non- submission of documents, such as PAN. Therefore, submission of PAN alongwith the application form alone will not be sufficient to process the application for allotting units in demat mode.

    • How will I get my dividend proceeds?
      For Unit holders in the physical mode the dividend will be paid in the bank mandate indicated in the folio/application form according to the payout mode opted for. For Unit holders in the demat mode the same will be credited to the bank account linked to their demat account or will receive a dividend warrant depending upon the mode of receipt opted.

    • What is the importance of record dates to units held in demat form?
      In case the Units bought by you are yet to be transferred into your account by your broker before the record date, you will not be entitled to receive corporate benefits such as dividend since your name will not figure in the list of beneficial owners. Hence, you must ensure that units bought by you are transferred into your account before the record date announced by the Fund.

    • Is STT applicable for the units, which will be listed?
      No. Though the units will be listed on the stock exchange STT is applicable to only equity shares and equity oriented funds. On debt securities there is no STT.

    • What if I close my existing demat account and open a new demat account, what will happen to my FMP units?
      The unit holder will have to fill out a transfer instruction for delivery (TIFD), which he will have to submit to the DP where he will have a new account.

    • Do dematerialized units have distinctive or certificate numbers?
      No. In demat all units are fungible, which means that any unit of an ISIN is similar to any other unit of that ISIN.

    • How will I get my statement of account?
      In the physical mode the Unit holder can receive the account statement on request. In the demat mode the Units will reflect in the statement of holdings issued by the DP. The Unit holder can approach his DP for a statement of holdings over and above what he will receive periodically.

    • How do I sell the units which have been allotted to me in demat form?
      The Units, which are in demat form can be sold through any SEBI registered stock broker at NSE. The investor will have to approach the stockbroker and follow the procedure, which is ordinarily done to sell securities like equity shares.

    • Does the order of holding and bank account and other details in the demat account have to be the same?
      Yes. The order of holding and bank account and other details in the demat account have to be the same as given in the application form.

    • Does the mode of holding in the application form have to be the same as that in the demat account?
      Yes. In case a Unit holder has opted to hold Units in the demat mode, the mode of holding mentioned in the application form should be the same as that existing in his demat account. In case of any mismatch the application will be rejected.

    • Does the nominee mentioned in the application form have to be the same as that in the demat account?
      Yes. The nomination should be the same as given in the demat account. In case the nomination details provided by the Unit holder in the application form vary, the nomination details as per his demat account will prevail.

    • If I apply for the units during the NFO period through a switch transactions can I get the units in demat form?
      Yes. To enable the same the Unit holder will have to provide the demat account details. He can attach the application form with the transaction slip. The DP details can be mentioned in the relevant space provided in the application form.

    • What happens in case of death of the unit holder?
      In case the units are held in physical form the transmission policy in force for HDFC Mutual Fund will be applicable. In case the units are held in demat form the Unit holder will have to comply with the guidelines formulated for transmission by the respective DP's.

    • What will happen in case any application for switch-in results in units being allotted in decimal places?
      The applications for subscriptions/ switch-in of Units should be made in multiples of Rs 10/-. However, switch-in requests which results in allotment of units in decimal places (fractional) will be refunded to the Unit holders.

    • How long does it take to dematerialize or rematerialize the units?
      It will normally take 15 days to process a valid dematerialization request from the date of receipt of such request and 30 days to process a valid rematerialization request from date of receipt of the said request.


    Registering and managing HDFC Flex STP on

    • What is this facility?
      This facility provides you an option to manage your HDFC Flex STP on the go with . To know more about HDFC STP, click here

    • Who can avail of this facility?
      An existing investor, who has an HPIN, can avail of this facility by logging in on our online transacting module on http://www.hdfcfund.com/.

      If you do not have an HPIN, click here to download the application form and obtain your HPIN. Your HPIN can be used for as well as (our latest offering to you which allows transacting on your mobile handset). To know more about ,
      click here
      .

    • How can I use the facility?
      After logging into your account on follow these steps:
      Step 1 : Select "HDFC Flex STP"
      Step 2 : Provide the details for HDFC Flex STP registration / cancellation
      Step 3 : Confirm the details entered.

    • Are the terms of registration of HDFC Flex STP different for online registration?
      No. The same terms and conditions (like minimum amount, load applicable, schemes available for HDFC Flex STP etc.) are applicable for online as well as offline registration of HDFC Flex STP.

    • When will the registration be completed?
      The registration for HDFC Flex STP will be completed on the 3rd calendar day from the date of enrolment for the facility. Upon registration you will be sent a confirmation by mail or email or SMS (as opted by you).

    • Can I cancel my registration for HDFC Flex STP online?
      Yes. You can cancel the registration of HDFC Flex STP that you have registered online. However, for cancelling registration of HDFC Flex STP made using the physical application form, a written cancellation request has to be submitted to any of our Investor Service Centres (ISCs).

    • Can I view the details of the HDFC Flex STP in my folio in ?
      You can view the details of registrations for HDFC Flex STP registration(s) made online. However, the details of HDFC Flex STP registration(s) made using a physical application form in your folio will not be available in .



    Registering and managing SIP/STP on

    • What is this facility?
      This facility provides you an option to manage your SIPs and STPs on the go with . It makes your financial planning more convenient, faster and paperless.

    • Who can avail of this facility?
      An existing investor, who has an HPIN, can avail of this facility by logging in on our online transacting module on www.hdfcfund.com

      If you do not have an HPIN, click here to download the application form and obtain your HPIN. Your HPIN can be used for as well as (our latest offering to you which allows transacting on your mobile handset). To know more about ,
      click here
      .

    • How can I use the facility?
      After logging into your account on follow these steps:
      Step 1 : Select "SIP/STP Registration"
      Step 2 : Provide the details of SIP / STP registration
      Step 3 : Confirm the details entered and note your SIP Registration Number (SRN)
      Step 4 : To enable us to debit your bank account for SIP instalments, register HDFCMF as a biller on your bank's net banking module. (This step is very important for execution of your registration and regular debit of your SIP).

    • Are the terms of online registration of SIP / STP different for online registration?
      No. The same terms and conditions (like minimum amount, load applicable, dates for SIP / STP etc.) are applicable for online as well as offline registration of SIP / STP.

    • Which banks can use to register the online SIP?
      The list of banks currently available for online registration of SIP is:
      • AMCO Bank
      • Axis Bank
      • Bank of Baroda
      • Bank Of India
      • Bank Of Maharashtra
      • Central Bank of India
      • Citibank
      • Corporation Bank
      • Cosmos Bank
      • Dena Bank
      • Development Credit Bank
      • Greater Bank
      • HDFC BANK
      • ICICI Bank
      • IDBI BANK
      • Indian Bank
      • IndusInd Bank
      • ING Vysya
      • Jankalyan Shahkari Bank
      • Karnataka Bank Ltd
      • Karur Vysya Bank
      • Punjab and Maharashtra Co-op Bank
      • State Bank of Bikaner and Jaipur
      • State Bank of Hyderabad
      • State Bank Of India
      • State Bank of Indore
      • State Bank of Mysore
      • State Bank of Patiala
      • State Bank Of Travancore
      • Syndicate Bank
      • Union Bank of India
      • Yes Bank
      Important - Please note that you need to have online access with your bank to avail this facility.

    • What type of account do I need to avail of the online SIP registration facility?
      You have to maintain a current or savings account with the banks which are available for the facility. This facility is currently not available for NRI accounts.

    • Do I have an option to add my distributor's code for my SIP / STP registered online?
      Yes. You have an option of mentioning your distributor's name / ARN code as well as the sub-distributor's code while registration of online SIP / STP.

    • What is SRN?
      SRN refers to SIP Registration Number. This is a unique confirmation number that is provided to you for the SIP that you register on . The SRN has to be used while adding HDFC MF as a biller on your bank's website. It is also a reference number which can be used for resolution of your queries, if any, regarding the SIP registration.

    • Can I use my debit card or credit card for this facility?
      No. You can use this facility only using the auto-debit facility from your bank account.

    • What procedure has to be followed on my bank's website once I have the SIP Registration Number (SRN)?
      You have to login into your bank's website and proceed to the bill payment section. Then, select "HDFC MF" as the biller and provide the SRN when prompted for. We recommend that you select the "Auto-Pay" option for debiting your account.

    • How long do I have to authorize the auto-debit of my bank account on my bank's website?
      You have 10 days from the date of registering the SIP on to register HDFC MF as a biller on your bank's website.

    • How will I know if the SIP registered online is active?
      The following status will be displayed for SIPs which have been registered online:
      Pending : You have registered a SIP on and the first installment has not yet been debited from your bank account.
      Active : Your SIP is active your bank account will be debited on the date of the SIP.
      Cancelled : Online SIP registered earlier has been cancelled by you.
      Expired : The SIP Registration Number (SRN) has expired. This will happen if you do not register HDFC MF as a biller with your bank within 10 days from the date of registering the SIP on .

    • Can I cease / cancel my SIP / STP online?
      Yes. You can cancel the SIPs / STPs that you have registered online. However, for cancelling SIPs / STPs registered using the physical application form, the SIP / STP cancellation request has to be submitted to any of our Investor Service Centres (ISCs).

    • When will the cancellation of a SIP (registered on ) be effective?
      A SIP which has been registered on can be cancelled online. It takes 10 working days for the cancellation to be effective. Thus, if a SIP installment is due within 10 working days from the date of cancellation, that installment will be processed and your bank account will be debited for that SIP installment. You will receive an intimation letter confirming the cancellation of your SIP enrolment.

    • When will the cancellation of a STP (registered on ) be effective?
      A STP which has been registered on can be cancelled online. It takes 3 working days for the cancellation to be effective. Thus, if a STP installment is due within 3 working days from the date of cancellation, that installment will be processed. You will receive an intimation letter confirming the cancellation of your STP enrolment.

    • Can I view the details of all the SIPs / STPs in my folio in ?
      Yes, you can view the details of all the SIPs / STPs (whether registered online or using the physical application form) in the folio.



    Registering and managing HDFC Flexindex Plan on

    • What is this facility?
      This facility provides you an option to manage your HDFC Flexindex Plan on the go with . To know more about HDFC Flexindex Plan, click here.

    • Who can avail of this facility?
      An existing investor, who has an HPIN, can avail of this facility by logging in on our online transacting module on www.hdfcfund.com

      If you do not have an HPIN, click here to download the application form and obtain your HPIN. Your HPIN can be used for as well as (our latest offering to you which allows transacting on your mobile handset). To know more about ,
      click here
      .

    • How can I use the facility?
      After logging into your account on follow these steps:
      Step 1 : Select "HDFC Flexindex Plan"
      Step 2 : Provide the details for HDFC Flexindex Plan registration
      Step 3 : Confirm the details entered.

    • Are the terms of registration of HDFC Flexindex Plan different for online registration?
      No. The same terms and conditions (like minimum amount, load applicable, Sensex levels for HDFC Flexindex Plan etc.) are applicable for online as well as offline registration of HDFC Flexindex Plan.

    • When will the registration be completed?
      The registration for HDFC Flexindex Plan will be completed on the 7th calendar day from the date of enrolment for the facility. Therefore, in the intervening period i.e. between the date of enrolment for facility on and the date of registration, if any of the triggers (i.e. closing Index levels) as indicated by you is reached or crossed, the same will not be taken into consideration for activation of HDFC Flexindex Plan. Upon registration you will be sent a confirmation by mail or email or SMS (as opted by you).

    • Can I cancel my registration for HDFC Flexindex Plan online?
      Yes. You can cancel the registration of HDFC Flexindex Plan that you have registered online. However, for cancelling registration of HDFC Flexindex Plan made using the physical application form, a cancellation request has to be submitted to any of our Investor Service Centres (ISCs).

    • Can I view the details of the HDFC Flexindex Plan in my folio in ?
      You can view the details of registrations for HDFC Flexindex Plan registration(s) made online. However, the details of physical application form) in your folio will not be available in .




    The Facility of Registering Multiple Bank Accounts in a Folio

    • What is the facility of registering multiple bank accounts in a folio?
      HDFC Mutual Fund offers a facility for registering upto 5 bank accounts in a folio for receiving redemption proceeds. You have to specify any one bank account as "Default" and can register upto 4 additional bank accounts. Upon registration, you can opt to receive redemption proceeds into any one of the registered bank accounts without providing any supporting documents at the time of redemption. Supporting documents for all the bank accounts have to be submitted with the registration form for multiple bank accounts. Dividend proceeds will be processed into the "Default" bank account only.

    • Why should I opt for this facility?
      Registering for this facility enables you to receive redemption proceeds into any one of the registered bank accounts without providing any supporting documents at the time of redemption. This enables you to receive redemption proceeds into the bank account of your choice.

    • What is a "Default" bank account?
      At the time of registering for this facility, you have to specify any one bank account as a Default" bank account. This account is used for redemption processing in case you do not specify the bank account in the request for redemption of units. Dividend proceeds, if any, are processed into the "Default" bank account only.

    • Which bank account will be used for dividend proceeds?
      Dividend proceeds, if any, are processed into the "Default" bank account only.

    • When will redemption be processed into the "default" bank account?
      Redemption is processed into the "default" bank account in the following scenarios:
      • No bank account is mentioned in the redemption request for receiving redemption proceeds
      • Details of the "Default" bank account are mentioned in the redemption request for receiving redemption proceeds
      • Maturity of investments in FMP schemes
      • In case you have already 2, 3 or 4 bank accounts in your folio and provide a new bank account for redemption along with the redemption request without complete / correct supporting documents.

    • Can I add one or more bank accounts to those already registered in my folio?
      Yes. The application form for registration for this facility has to be used for adding one or more accounts. However, the maximum number of bank accounts that can be registered in a folio is 5.

    • Can I change the bank accounts registered in my folio?
      Yes. Any registered bank account including the "Default" bank account can be changed / replaced. A separate form is available for this purpose. We request you to refer to the addendum dated June 4, 2009 which specifies the aforesaid documentation requirements.

    • Can I delete one or more of the bank accounts registered in my folio?
      Yes. You may submit a request specifying the bank account to be deleted from you folio. In case the "Default" bank account has to be deleted, please ensure that you specify the new bank account to be treated as "Default".

    • Can I replace the "default" bank account with another bank account already registered in my folio?
      Yes. You have to submit a separate form for this purpose. No supporting documents have to be submitted along with the application form.

    • What are valid supporting documents for a bank account?
      Any of the following documents are valid supporting documents for a bank account:
      • A cancelled original cheque leaf (where the account number and first Unitholder name is printed on the face of the cheque). Unitholders should without fail cancel the cheque and write 'Cancelled' on the face of it to prevent any possible misuse.
      • A letter from the bank on its letterhead certifying that the Unitholder maintains/maintained an account with the bank, the bank account information like bank account number, bank branch, account type, the MICR code of the branch & IFSC Code (where available). The letter should be certified by the bank manager with his / her full signature, name, employee code, bank seal and contact number.
      • A copy of the bank pass book or a statement of bank account having the name and address of the account holder and account number. The copy should be certified by the bank manager with his / her full signature, name, employee code, bank seal and contact number.
      • Unitholders may also bring a copy of any of the documents mentioned in (3) above along with the original documents to the ISCs/Official Points of Acceptance of HDFC Mutual Fund. The copy of such documents will be verified with the original documents to the satisfaction of HDFC Mutual Fund. The originals documents will be returned across the counter to the Unitholder after due verification.

      We request you to refer to the addendum dated June 4, 2009 which specifies the aforesaid documentation requirements.

    • What are the documents to be submitted for registration for this facility?
      To register for multiple bank accounts in your folio, valid supporting documents should be submitted for the following bank accounts:
      • Any one of the existing bank accounts in the folio
      • All the bank accounts mentioned in the application form for registration of multiple bank accounts

    • What are the documents to be submitted for additions / changes / deletion of bank account?
      To add one or more bank accounts in your folio after registering for multiple bank accounts, valid supporting documents should be submitted for the following bank accounts:

      • Any one of the registered bank accounts in the folio
      • The new bank account(s) which has/have to be added to the list of bank accounts registered in the folio

      To change a bank account in your folio after registering for multiple bank accounts, valid supporting documents should be submitted for the following bank accounts:

      • The bank account which is being replaced
      • The new bank account(s) which has/have to be added to the list of bank accounts registered in the folio

      To delete a bank account from your folio after registering for multiple bank accounts, no supporting documents have to be submitted.

    • What if I do not mention the bank account in the redemption request?
      In case no bank account details are mentioned in the redemption request, the redemption proceeds are processed into the "Default" bank account. HDFC Mutual Fund or HDFC Asset Management Company Ltd. will not be liable for any loss arising to you due to the credit of redemption proceeds into any of the bank accounts registered with us in your folio.

    • Can I provide a new bank account for redemption along with the redemption request?
      In case you have registered 2, 3 or 4 bank accounts for your folio, you can provide a new bank account for redemption along with the redemption request. Valid supporting documents for any one of the bank accounts already registered for your folio as well as the new bank account sought to be added for the folio should be submitted with the redemption request. Subject to proper documentation, the redemption will be processed into the new bank account and the account will be registered in the folio. In case the supporting documents provided by you are incomplete / incorrect, the redemption proceeds will be credited into the bank account registered as "Default" in your folio and the account will be not be registered in the folio.

      In case you have already registered 5 bank accounts for your folio, you cannot provide a new bank account for redemption along with the redemption request. Any changes to the registered bank accounts have to be communicated separately to us using the application form for registration / addition of bank accounts. The changes will be effected within 10 calendar days from the date of submission of the application form.

    • How many days are required for registration for the facility?
      The registration process is completed after 10 calendar days from the date of submission of the application form for the facility at any of our official points of acceptance.

    • How can I opt out of the facility?
      To opt out of the facility of registration of multiple bank accounts, you may submit a letter indicating the same and specifying the bank account to be retained in the folio for redemptions / dividends in future. In case you submit a request for deleting bank accounts which reduce the number of bank accounts in the folio to one, it will be construed as a request for opting out of the facility of registration of multiple bank accounts. The bank account that is retained in the folio will be used for processing any redemptions / dividends for all the schemes in the folio thereafter.

    • How will I know that my request for registration has been completed?
      A letter intimating the registration of the bank accounts for the facility will be sent to you within 2 weeks of the date of submission of the application form for the facility at any of our official points of acceptance. Additionally, SMS and emails will be sent to investors who have provided their mobile number and email ID respectively. You are requested to verify the contents of the confirmation letter sent to you and contact us immediately in case of any discrepancy(ies).

      We would like to communicate electronically to you, if possible, for important changes to your folio. Hence, if you provide us with your mobile contact number / email ID, we would - most importantly - be able to reach you faster to keep you abreast of transactions / changes in your folio.

    • How will I know the bank accounts registered in my folio?
      In the letter intimating the registration for the facility, the complete bank account details registered for your folio will be mentioned. Additionally, the account statement will reflect the details of the bank accounts registered in the folio. In the interest of the security of your bank account information, the account statement will reflect a maximum of 4 digits of each account number.

    • Can I delete the "default" bank account?
      No. The "default" bank account can't be deleted. However, you can change the same.

    • Can the bank accounts be updated for specific schemes in my folio?
      No. Bank accounts registered in the folio vide this facility are applicable for all schemes in the folio.

    • The mode of operating my folio is "Joint". Is the joint holder's signature required for registration of this facility?
      Yes.

    • Can I register more than 5 bank accounts in a folio?
      No.

    • In case any credit into my bank account vide direct credit / RTGS / NEFT is rejected by my banker, will the redemption / dividend proceeds be credited into the other account registered for my folio?
      No. In case of a rejection of our instructions for direct credit / RTGS / NEFT, we will endeavour to contact you for the further course of action. In case we are unable to do so or get a response from you, a cheque shall be issued to you against the redemption / dividend proceeds.

    • Can I register for less than 5 bank accounts in my folio?
      Yes. You may register 2, 3, 4 of 5 bank accounts in your folio under this facility.

    • Can I opt for receiving direct credit for one or more of my bank accounts and NEFT / RTGS transfer into the other bank account(s)?
      Yes. We recommend that you opt for electronic receipt of redemption / dividend for all the bank accounts registered with HDFC Mutual Fund for receiving redemption / dividend proceeds.

    • Do I need to use separate a application form for each folio that I have with HDFC Mutual Fund for registering for multiple bank accounts?
      No. You may use 1 application form for upto 6 folios held by you if the joint holders and the mode of holding are the same. For additional folios, new application forms have to be submitted. In case you have numerous folios with HDFC Mutual Fund, we recommend that you consolidate all your investments into one folio.

    • Can I provide the bank account details of my SB as well as NRE accounts in the same folio?
      No. For a folio, all the bank accounts for receiving redemption / dividend proceeds should be of type SB or NRO in case the investments are made vide SB or NRO accounts. If investments are made vide NRE accounts, all the bank accounts registered for redemption should be of type NRE only.

    • Do I have to submit any additional supporting documents for registering an NRE account for redemption in my folio?
      No. However, please note that for receiving redemption / dividend proceeds into your NRE account, the Foreign Inward Remittance Certificate (FIRC) for each underlying investment has to be submitted to HDFC Mutual Fund. For additional details in this regard, please contact any of our Investor Service Centres.

    • Can I provide the bank account(s) of any other person to receive the redemption / dividend proceeds in my folio?
      No. You have to submit valid supporting documents for each bank account that you wish to register for receiving redemption / dividend proceeds in your folio. These documents should conclusively prove that the bank accounts provided pertain the sole / first unitholder in the folio.



    New Facility for Purchase and Redemption of Units of HDFC Mutual Fund Schemes Through Stock Exchanges

    • What is this new facility?
      This new facility enables transactions (purchase/redemption) of units of HDFC Mutual Fund Schemes through the Stock Exchange infrastructure. This will enable to expand the reach of mutual fund schemes to more towns and cities.

    • Is this new facility available only to new investors?
      No. This new facility i.e. purchase/redemption of units is available to both existing unit holders and new investors.

    • Will the folio be the same in case of units held in physical and demat mode?
      Separate folios will be allotted for units held in physical and demat mode.

    • Are the units of the eligible schemes of HDFC Mutual Fund listed on BSE & NSE? Can the units be traded on the stock exchange(s)?
      No, the units of eligible Schemes of HDFC Mutual Fund are not listed on BSE & NSE and the same cannot be traded on the Stock Exchange.

    • Where does the investor go to transact in units of HDFC Mutual Fund Schemes through the stock exchange?
      The investor has to approach a Trading Member of Bombay Stock Exchange ("BSE") or National Stock Exchange ("NSE") (who is registered with AMFI as Mutual Fund Advisor and who has signed up with HDFC Asset Management Company Limited and also registered with BSE & NSE as Participant) for availing this facility.

    • Does the trading member of BSE or NSE have to be AMFI certified or empanelled with HDFC Asset Management Company Limited ("HDFC AMC") or registered with BSE & NSE to offer this facility?
      Yes the trading member has to have an AMFI Registration Number (ARN) and has to be empanelled with HDFC AMC and also registered with BSE & NSE as Participant to offer this facility.

    • The units can be purchased/redeemed only if the investor has a demat account?
      No. The units transacted through the stock exchange can be purchased and redeemed in the demat as well as the physical form, as per the choice of the investor.

    • Which schemes can be purchased or sold through this route?
      Currently there are select equity and debt schemes (eligible schemes), which can be purchased and redeemed through this route. There are totally 20 eligible schemes, which are available as of now. Please refer to the Addendum dated December 3, 2009 Introduction of New Facility for Purchase/Redemption of Units through Stock Exchange(s) for the complete list of such eligible schemes. The list of eligible schemes is subject to change from time to time.

    • Is there any limit for value of transactions, which can be done through this route?
      Currently transactions i.e. purchase and redemptions of less than Rs 1 crore can only be done through this route. For physical transactions the maximum redemption amount is Rs 1 lac per folio per day. Please refer to the circulars issued by NSE and BSE respectively for details on the same.

    • What is the electronic platform offered by NSE for this facility called?
      The electronic platform is called Mutual Fund Services System (MFSS).

    • What is the electronic platform offered by BSE for this facility called?
      The electronic platform is called Bombay Stock Exchange Platform for Allotment and Redemption of Mutual Funds (BSE StAR MF)

    • Does the investor have to sign any documents with the trading member?
      There is a letter to be signed and provided by the investor to the trading member for registering for this facility. This letter also contains the terms and conditions of the MFSS/BSE StAR MF facility.

    • What documents are required for purchase of units through this facility in the physical mode?
      Investor who chooses physical mode has to submit the following documents/details along with clear funds to the Trading Member:
      • Completed and Signed respective scheme Application Form
      • Copy of PAN Card of first holder
      • Copy of PAN Card of each additional holder in case of joint investment
      • Copy of KYC acknowledgement form of all holders
      • Copy of Guardians PAN Card in case investment is on behalf of minor
      • Folio No. in case the subscription is an additional purchase.

    • What confirmation will the investor get for the order placed through the trading member?
      The investor will receive from the Trading Member a confirmation slip (which will contain unique confirmation number and date and time stamp of order entry) generated from the MFSS/BSE StAR MF system. Till the Trading Member provides allotment details to the investor, the order confirmation slip would be the proof of the transaction. In addition, for physical mode, the investor will receive Statement of Account from the Registrar & Transfer Agent (RTA) directly.

    • In whose favour will the cheque for purchase have to be made by the investor?
      The cheque has to be made in favour of the trading member, as the trading member has to fulfill the payment obligation with the stock exchange/Clearing Corporation.

    • What documents are required for making a purchase in the demat mode?
      Investor who chooses depository mode can place order for subscription as currently followed for secondary market activities. The investor should provide their depository account details along with PAN details to the member. When investor desires to hold units in dematerialised form, KYC performed by DP will be considered compliance with applicable requirements specified in this regard in terms of SEBI circular ISD/AML/CIR-1/2008. This is in accordance with SEBI circular no SEBI/IMD/CIR No.11/183204/2009 dated November 13, 2009.

    • What confirmation will the investor get for the purchase order placed through the member in demat mode?
      The investor will receive from the Trading Member a confirmation slip (which will contain unique confirmation number and date and time stamp of order entry) generated from the MFSS/ BSE StAR MF system. Till the Trading Member provides allotment details to the investor, the order confirmation slip would be the proof of the transaction. In the case of demat mode, demat statement given by depository participant would be deemed to be adequate compliance of the requirement of Statement of Account as specified in SEBI circular number SEBI/IMD/CIR No.11/183204/2009.

    • What is procedure for submitting redemption in the physical mode?
      Investor who chooses physical mode has to submit the following documents/details to the Trading Member:
      • Completed and Signed redemption request stating the Folio no.
      • Copy of PAN Card of first holder
      • Copy of PAN Card of each additional holder in case of joint investment
      • Copy or allotment statement / holding statement/ SOA displaying the scheme holdings to be redeemed
      • Copy of Guardians PAN Card in case investment is on behalf of minor

    • Who will verify the signature on the redemption slip?
      The member shall verify the application for mandatory details, investor identity and verifies the signature on the application against the PAN signature.

    • What confirmation will the investor get for the order placed through the trading member?
      The investor will receive from the Trading Member a confirmation slip (which will contain unique confirmation number) generated from the MFSS/ BSE StAR MF front-end system. This will be the proof of the transaction for the investor till the redemption proceeds are received from the RTA.

    • Where will the investor receive the redemption proceeds through the physical mode?
      The redemption proceeds will be directly sent by RTA through appropriate payment mode such as direct credit, NEFT or cheque as decided by AMC from time to time, as per the bank account details recorded with the HDFC Mutual Fund.

    • Who is responsible for the processing of the redemption accurately?
      It would be the primary responsibility of the trading member to ensure completeness of the documents including ensuring filling up of the all Key fields by the investor before accepting the same for processing. It would also be the responsibility of the trading member to ensure identity and authentication of signature affixed based on the original PAN shown at the time of accepting the redemption application form. A copy of the PAN will be sent along with the redemption request. In case of joint holding, this will be ensured by the trading member for all holders. In case the subscription application form has not been reached to the RTA, the redemption request for such subscription will not be taken by the RTA and shall be rejected.

    • What is the procedure to submit the redemption of units in demat form?
      In case units are held in physical mode, the investor should ensure that the units are converted from physical mode to demat mode prior to placing of redemption order. Investor who chooses depository mode can place order for redemption as currently followed for secondary market activities. The investor should provide their depository account details along with PAN details to the Trading Member. The investor should also provide their Depository Participant with Depository instruction slip with relevant units to be credited to Clearing Corporation pool account same day before 4.30 p.m.

    • Where will the investor receive the redemption proceeds through the demat mode?
      The redemption proceeds will be credited to the bank account of the investor, as per the bank account details recorded with the Depository Participant.

    • What are the timings for putting orders, which are valid for the same day NAV?
      Currently, the timing for entering the orders on the respective platforms are between 9.00 a.m. to 3.00 p.m. The applicability of NAV will be subject to guidelines issued by SEBI on Uniform cut-off timings for applicability of NAV of Mutual Fund Scheme(s)/Plan (s).

    • Can an investor do a switch transaction through the stock exchange?
      No. Switching of units cannot be done through this platform. Only purchase and redemption transactions can be done currently through this platform.

    • Can an investor enroll for a Systematic Investment Plan (SIP) though this platform?
      Yes. SIP transactions can be done through this platform.

    • Is reinvestment and payout available as an option under the dividend option in the eligible schemes through this route?
      Yes. Dividend Reinvestment Option and dividend payout option is available as an option under the dividend option in the eligible schemes wherever it is available.

    • Will the purchase/redemption applications submitted to the trading member for this facility comply with the requirement of submitting applications only at Official Points of Acceptance (OPA)?
      Yes, the eligible trading members will be considered as Official Points of Acceptance (OPA) of HDFC Mutual Fund.

    • How does an investor Dematerialize units?
      In case an investor desires to transfer the units held in Physical form into the Demat account , an application should be submitted to its respective Depository Participant.

    • How does an investor rematerailise units into physical form?
      In case an investor desires to convert the dematerialized units into physical form (represented by statement of account), an application for Rematerialization of units should be submitted to its Depository Participant.

    • Where can an investor submit request for change of address/bank details, etc. in case of units held in physical /demat mode?
      In case of non-financial requests/applications such as change of address, change of bank details, etc., investors should approach Investor Service Centres (ISCs) of HDFC Mutual Fund if units are held in physical mode and the respective Depository Participant(s) if units are held in demat mode.

    This FAQ is dated January 1, 2011.

    Ultimate Beneficial Ownership (UBO’s)

    • Who is an Ultimate Beneficial Owner (UBO)?
      The beneficial owner is the 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.

    • Which categories of investors have to provide details of UBO?
      SEBI vide its Circular No. CIR/MIRSD/2/2013 dated January 24, 2013 has mandated that all investors (other than Individuals) are required to provide details of UBO(s).

    • Who need not provide the UBO details?
      In case the investor or owner of the controlling interest is a company listed on a stock exchange or is a majority owned subsidiary of such a company, the details of shareholders or beneficial owners are not required to be provided. Such a company has to submit a declaration to this effect.

    • Why the need to know the details of ‘Ultimate Beneficial Owner’?
      The Prevention of Money Laundering Rules, 2005 inter alia mandates that every intermediary shall identify the beneficial owner and take all reasonable steps to verify his identity. The Government of India in consultation with the regulators has specified a uniform approach to be followed towards determination of beneficial ownership as specified in SEBI Circular CIR/MIRSD/2/2013 dated January 24, 2013.

      The term reflects a recognition that a person in whose name the Units are held not necessarily be the person who ultimately controls such Units or who is ultimately entitled to such Units. This distinction is important because the focus of anti- money laundering guidelines and the beneficial ownership guidelines is on identifying persons, in particular circumstances, should be viewed as having the ultimate beneficial ownership of the Units held under the Scheme.

    • Who can complete and sign the declaration?
      Only persons authorized to represent the company or entity according to its constitution/ resolutions should complete and sign the declaration.

    • How does one identify an UBO?
      The identity of the UBO can be ascertained from the following information:
      a. For investments of non-individuals (other than trusts) viz., company, partnership or unincorporated association/body of individuals, the identity of the natural person, who, whether acting alone or together, or through one or more juridical person, exercises control through ownership or who ultimately has a controlling ownership interest.
      Here controlling ownership interest means ownership of/entitlement to:
      • more than 25% of shares or capital or profits of the juridical person, where the juridical person is a company;
      • more than 15% of the capital or profits of the juridical person, where the juridical person is a partnership; or
      • more than 15% of the property or capital or profits of the juridical person, where the juridical person is an unincorporated association or body of individuals.

      b. where there exists doubt as above as to whether the person with the controlling ownership interest is the beneficial owner or where no natural person exerts control through ownership interests, the identity of the natural person exercising control over the juridical person through other means such as through voting rights, agreement, arrangements or in any other manner.

      c. Where no natural person is identified under clauses a or b above, the identity of the relevant natural person who holds the position of senior managing official.

    • Who will be considered as UBO in case of trust?
      The identity of the settlor of the trust, the trustee, the protector, the beneficiaries with 15% or more interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership.

    • How can I register the UBO?
      You can register the UBO details by filling up the ‘Declaration of Ultimate Beneficial Ownership’ Form and submitting the same to the nearest Investor Service Centre (ISC) of HDFC Mutual Fund. Please contact our ISCs or log on to ‘Investor Corner’ section on our website www.hdfcfund.com for the Declaration Form and to know more about UBO.



    • FATCA FAQ

      • What is FATCA?
        FATCA stands for the Foreign Account Tax Compliance Act. The new rules require foreign financial institutions (FFI’s) to provide the (IRS) with information on certain the investments of U.S. persons invested in accounts outside of the U.S. and for certain non-U.S. entities to provide information about any U.S. owners.

      • Are there any other regulations similar to FATCA which will apply to HDFC Mutual Funds?
        Yes, CRS is similar to FATCA. Common Reporting standard (CRS) is a global level common standard for automatic exchange of financial account information. CRS has been developed by the OECD in close co-operation with the G20 countries and the EU. Accordingly, Indian Financial Institutions will be required perform enhanced KYC procedures to identify accounts of US and other foreign taxpayers, as defined, and report on such accounts on an annual basis.

        India is a part of G-20 countries and has committed itself as an early adopter of CRS

      • What is the purpose of FATCA/CRS?
        The purpose of FATCA is to prevent US persons from using banks and other financial institutions outside the USA to park their wealth outside US to avoid US taxation on income generated from such wealth. FATCA obliges such banks and financial institutions to report information about US persons having accounts with them.

        Similar to FATCA, the purpose of CRS is to aid automatic exchange of information between bilateral treaty partner countries about accountholders/investors maintaining accounts in foreign jurisdictions.

      • How does the law of another country become applicable to me?
        In case of FATCA, the Government of India and the United States of America (US) have reached an agreement in substance on the terms of an Inter- Governmental Agreement (IGA) to implement Foreign Accounts Tax Compliance Act (FATCA) and India is now treated as having an IGA in effect from April 11, 2014. However, the IGA is expected to be signed in due course.

        In case of CRS, India has committed to implement reciprocal exchange of information on financial accounts on an automatic basis with 93 countries as on 6 November 2014. In addition, as at 30 June 2014, India has treaties with 130 other countries/ non-sovereign territories. India would be obligated to get its financial institutions to share financial account information of accountholders who are tax residents in any of these countries. Likewise, India would also get similar information through financial institutions of such treaty countries.

      • Who will be covered under the purview of FATCA and CRS?
        FATCA legislation will affect both individual and entities customers who are treated as a ‘US person’ for US tax purposes. The FATCA legislation will also affect certain types of entities with beneficial owners/ controlling persons from US.

        An account having U.S. indicia like U.S place of birth, U.S. address etc. does not necessarily mean that the account would be reported. However such accounts would be subjected to closer scrutiny by HDFC. With respect to CRS, the coverage would extend to investors/ beneficial owners or controlling persons of entities, being tax residents of any of the 130 signatory countries.

      • Why does HDFC Mutual Fund have to collect additional information from its customers? Has HDFC Mutual Fund volunteered for such tax information reporting?
        India is committed to the cause of automatic sharing of information. Amendments have been carried out in the Income-tax Act, 1961 to enable enhanced reporting on the part of financial institutions. The rule framework for such reporting is expected shortly.

        As any other compliant Indian financial institution, HDFC Mutual Fund is required to comply with such tax information sharing laws.

      • What are the obligations of HDFC AMC /HDFC Mutual Fund under FATCA-CRS?
        HDFC AMC will have to report information on all accounts (new and existing) identified as ‘reportable’. In addition, HDFC AMC may also need to report information about customers who do not provide the required documentation to us.

      • To whom will HDFC AMC/ HDFC Mutual Fund have to report this additional information to?
        HDFC Mutual Fund will have to report the information to the Indian Income Tax Department or any other Agency to be appointed by them who would then transmit the financial information to the Tax authority of the relevant countries.

      • What is the information that is being sought from investors?
        The information reported will depend on the classification of the customer under FATCA and CRS. Investors will be expected to provide details such as Country of Tax residence, Tax Identification Number from such country, Country of Birth, Country of Citizenship, etc. A separate form will be made available shortly, in which existing investors will have to submit such information.

        In case of Non-individual investors, the above mentioned information of any of the controlling persons will have to be submitted.(Refer SEBI circular no. CIR/MIRSD/2/2013 dated January 24,2013 for guidelines on identification of controlling persons)

        Apart from the above, HDFC would be required to report additional information sought by the local authorities from time to time.

      • How frequently will HDFC AMC seek information for FATCA-CRS purposes?
        HDFC AMC will seek such information from every new investor. Further if we were to notice any relevant change in the account information, we may be required to contact the investors to obtain additional information/documentation so that we are able to update their account classification under FATCA/CRS. We are also required to remediate the information from our existing customers and will be reaching out to them in due course.

      • Will this affect the existing investments of investors in the schemes of HDFC Mutual Fund?
        Under the provisions of FATCA/CRS, existing Unit Holders (as on 30th June, 2014 in case of FATCA and 31st Dec, 2015 in case of CRS) may note that information regarding their investments would be reported to the respective local tax authorities.

      • Will folios held jointly by a reportable person and a non-reportable person considered as reportable?
        A joint account which has one tax resident of a relevant foreign country reportable owner is treated as a reportable account and therefore the entire account is subject to the FATCA/CRS legislation.

      • What if any investor refuses to provide the requisite information?
        In case if a new investor refuses to provide the FATCA/CRS information and documents then he/she may not be allowed to open an account with HDFC AMC.

        While in case of pre-existing investors, such clients/customers will be treated as Recalcitrant Account Holders and we be reported to the tax authority as such. A recalcitrant account holder is defined as per the FATCA CRS regulations as any holder of an account maintained by an FFI if such account holder is not an FFI and not meeting the threshold exceptions and the account holder:

        • Fails to comply with the requests (documentation or information) by FFI;
        • Fails to provide valid W9
        • Fails to provide waiver
        • Provides documentation to classify the entity as Passive NFFE but fails to provide information on substantial owners


      • Where can the customer find detailed information on FATCA/CRS?
        FATCA and CRS regulations, notices and other related topics are available on the below websites:

        IRS website
        OECD website

        Disclaimer:

        The responses in the FAQs alone are not sufficient and should not be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. While utmost care has been exercised while preparing the FAQs, HDFC Mutual Fund / HDFC Asset Management Company Limited (HDFC AMC) does not warrant the completeness and absolute accuracy or completeness of this information and disclaims all liabilities, losses and damages arising out of the use of this information. The recipient alone shall be fully responsible / liable for any decision taken on the basis of this material. The recipient should before enrolling for HDFC FLEXINDEX PLAN ('Plan') make their own investigation, read the terms and conditions of the Plan and seek appropriate professional advice. The Plan in any manner whatsoever is not an assurance or promise or guarantee on part of HDFC Mutual Fund/ HDFC AMC to the Unit holders in terms of returns or capital appreciation or minimization of loss of capital or otherwise. Please read the Scheme Information Document and Statement of Additional Information of the Schemes before investing.

    • MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.





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