Description
Mutual Fund offer Document and it contains topics like what is offer document, contents of OD, legality
OFFER DOCUMENT
WHAT IS AN OFFER DOCUMENT (OD)
• OD of a mutual fund scheme is a prospectus issued by an Asset Management Company / Sponsor. • It invites the public for subscription in units of the scheme. • It discloses the information which is adequate to enable an investor to make an informed investment decision.
Offer Document (OD)
• A legal document
• issued by AMC or Sponsor
• OD describes the product
• Very important document from the perspective of prospective investor • Primary vehicle for investment decision
Offer Document (OD)
* All ODs are to be approved by the trustees of the
Mutual Fund;
* ODs are prepared and issued by the Asset
Management Company;
* All ODs are filed with SEBI with filing fees (Rs. 25,000) * Modifications, if any, are advised by SEBI within 21 working days from the date of its filing;
Offer Document (OD)
• Close ended fund: issued at the time of fund – launch • Open ended fund: revision after every two years
KIM: Abridged version of OD which is distributed along with the application form
Contents of the Offer Document
• • • • • • • • • Summary information Definitions Risk Factors Legal and Regulatory Compliance Financial Information Constitution of the Mutual Fund Investment objectives and policies Management of the Fund Offer Related information
Contents of the Offer Document
Summary Information ( Cover Page) : • Name of Mutual Fund/ AMC
• Name of Scheme/ Type of scheme
• Period of opening / closing
• SEBI Disclaimer
Contents of the Offer Document
Risk Factors
• Standard Risk factors • Scheme specific risk factor(s).
Contents of the Offer Document
Legal and Regulatory Compliance
• AMC shall confirm that a Due diligence certificate is duly signed by compliance officer / CEO / Whole time Director / MD • Certificate to the effect (a) OD prepared is in accordance with SEBI (MF) Regulations, (b) legal requirements are complied with, (c) disclosures are true and fair, (d) intermediaries named in the OD are registered with SEBI.
Contents of the Offer Document
Financial Information
• Expenses - Sales load, CDSC, Initial issue expenses, estimated annual recurring expenses
• Condensed Financial information of schemes - Information regarding schemes launched during the last 3 years -Historical per unit statistics
Contents of the Offer Document Constitution of the Mutual Fund / Management of the Fund • Name of the sponsor / AMC / Board of Trustees • Powers of Trustees • Names of Key personnel • Custodian / Registrars • Investors relations officer • Name, age, qualifications and experience of fund manager(s)
Contents of the Offer Document Investment objectives and Policies
• Investment only in transferable securities in the money market and the capital market or in privately placed debt or securitised debt provided they are rated not below investment grade. • Minimum and maximum asset allocation under equity, debt and money market instruments has to be specified in the OD. • MF can alter the asset allocation for a short term period on defensive consideration. • Investment Strategy: Regarding portfolio turnover, overseas investments, limits, stock lending etc.
Contents of the Offer Document
Offer Related Information
• Investment procedure • Schemes policy on dividends & distributions, ISTs
(Inter Scheme transfers)
• Associate Transactions • Borrowing Policy • NAV and Valuation
Contents of the Offer Document
Offer Related Information contd…
• Procedure for Redemption or Repurchase • Description of accounting policies • Tax treatment of investments • Investors’ rights and services
• Redressal mechanism for investor grievances
doc_305118118.ppt
Mutual Fund offer Document and it contains topics like what is offer document, contents of OD, legality
OFFER DOCUMENT
WHAT IS AN OFFER DOCUMENT (OD)
• OD of a mutual fund scheme is a prospectus issued by an Asset Management Company / Sponsor. • It invites the public for subscription in units of the scheme. • It discloses the information which is adequate to enable an investor to make an informed investment decision.
Offer Document (OD)
• A legal document
• issued by AMC or Sponsor
• OD describes the product
• Very important document from the perspective of prospective investor • Primary vehicle for investment decision
Offer Document (OD)
* All ODs are to be approved by the trustees of the
Mutual Fund;
* ODs are prepared and issued by the Asset
Management Company;
* All ODs are filed with SEBI with filing fees (Rs. 25,000) * Modifications, if any, are advised by SEBI within 21 working days from the date of its filing;
Offer Document (OD)
• Close ended fund: issued at the time of fund – launch • Open ended fund: revision after every two years
KIM: Abridged version of OD which is distributed along with the application form
Contents of the Offer Document
• • • • • • • • • Summary information Definitions Risk Factors Legal and Regulatory Compliance Financial Information Constitution of the Mutual Fund Investment objectives and policies Management of the Fund Offer Related information
Contents of the Offer Document
Summary Information ( Cover Page) : • Name of Mutual Fund/ AMC
• Name of Scheme/ Type of scheme
• Period of opening / closing
• SEBI Disclaimer
Contents of the Offer Document
Risk Factors
• Standard Risk factors • Scheme specific risk factor(s).
Contents of the Offer Document
Legal and Regulatory Compliance
• AMC shall confirm that a Due diligence certificate is duly signed by compliance officer / CEO / Whole time Director / MD • Certificate to the effect (a) OD prepared is in accordance with SEBI (MF) Regulations, (b) legal requirements are complied with, (c) disclosures are true and fair, (d) intermediaries named in the OD are registered with SEBI.
Contents of the Offer Document
Financial Information
• Expenses - Sales load, CDSC, Initial issue expenses, estimated annual recurring expenses
• Condensed Financial information of schemes - Information regarding schemes launched during the last 3 years -Historical per unit statistics
Contents of the Offer Document Constitution of the Mutual Fund / Management of the Fund • Name of the sponsor / AMC / Board of Trustees • Powers of Trustees • Names of Key personnel • Custodian / Registrars • Investors relations officer • Name, age, qualifications and experience of fund manager(s)
Contents of the Offer Document Investment objectives and Policies
• Investment only in transferable securities in the money market and the capital market or in privately placed debt or securitised debt provided they are rated not below investment grade. • Minimum and maximum asset allocation under equity, debt and money market instruments has to be specified in the OD. • MF can alter the asset allocation for a short term period on defensive consideration. • Investment Strategy: Regarding portfolio turnover, overseas investments, limits, stock lending etc.
Contents of the Offer Document
Offer Related Information
• Investment procedure • Schemes policy on dividends & distributions, ISTs
(Inter Scheme transfers)
• Associate Transactions • Borrowing Policy • NAV and Valuation
Contents of the Offer Document
Offer Related Information contd…
• Procedure for Redemption or Repurchase • Description of accounting policies • Tax treatment of investments • Investors’ rights and services
• Redressal mechanism for investor grievances
doc_305118118.ppt