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.  

Trigger means the predetermined event set by the Unit holder (s) of the source scheme.  

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.

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.  

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

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.  

Currently, the source schemes available under HDFC Flexindex Plan are as follows: Currently the targets schemes eligible for HDFC Flexindex Plan are as follows:
The unit holder must have holding in the dividend re investment and growth options in the source scheme.

• 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.
• 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 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.

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  

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.

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.  

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  

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.  
 

 

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%.  

Under the Fixed Instalment Option the percentages indicated against each of the four levels is fixed at 25%.

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.  

No. The percentage for switch indicated at each level will be valid for a period of 1 year.  

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.

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.

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.

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.  

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.  

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.

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.

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.

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.

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.

The amount shall continue in the source scheme.

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.

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

1960025
2930025
31040025
41120025

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.

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.