Investor services

1. Dr. Ankit Jain 1

2.  Individual Investors
 Non - Individual Investors
Dr. Ankit Jain 2

3.  Resident Indian adult individuals, above the age of 18:
They can invest, either singly or jointly (not exceeding
three names)
 Minors i.e. persons below the age of 18: Since they are
not legally eligible to contract, they need to invest
through their Parents/Lawful guardians.
 Hindu Undivided Families
 Non-Resident Indians (NRIs) /Persons of Indian origin
(PIO) resident abroad
 Foreign investors can invest in equity schemes of MFs
registered with SEBI after completing KYC process.
Dr. Ankit Jain 3

4.  Companies / corporate bodies, registered in India
 Registered Societies and Co-operative Societies
 Trustees of Religious and Charitable Trusts
 Trustees of private trusts
 Partner(s) of Partnership Firms
 Association of Persons or Body of Individuals, whether
incorporated or not
 Banks (including Co-operative Banks and Regional
Rural Banks) and Financial Institutions and Investment
Institutions
Dr. Ankit Jain 4

5.  Other Mutual Funds registered with SEBI
 Foreign Institutional Investors (FIIs) registered with
SEBI
 International Multilateral Agencies approved by the
Government of India
 Army/Navy/Air Force, Para-Military Units and other
eligible institutions
 Scientific and Industrial Research Organizations
 Universities and Educational Institutions
Dr. Ankit Jain 5

6.  All category of Investors should be KYC compliant.
 All joint holders in case of Joint holding
 Power of Attorney investors (Investor and power
holder)
 Guardians in case of Minors.
 Address Proof and Id Proof
Dr. Ankit Jain 6

7.  Proof of Identity : Aadhar card, Passport, Voter ID,
Driving License.
 Proof of Address : Passport, Voter ID, Ration card,
Driving License, Bank account Statement and adhar
card.
 Pan Card
 Photograph
Dr. Ankit Jain 7

8.  Central / State Gov./ Court appointed officials.
 Investors residing in Sikkim
 Lumpsum investment of Rs up to 50000
 Investment up to Rs 50000 can be made without PAN
card.
 PAN exempt KYC Reference number (PEKRN)
 PAN exemption is only for individual investors.
Dr. Ankit Jain 8

9.  Micro SIP ( SIP in a FY upto 50000)
 It can be invest in SIP form not in lumpsum amount.
 PAN card is exempted.
 Total Micro SIP investment in a year do not exceed Rs
50,000.
Dr. Ankit Jain 9

10.  Central KYC is a process of storing the KYC detail of
the customer centrally CKYC is being managed and
administered by the Central Registry of Securitization
& Asset Reconstruction and Securities Interest in
India(CERSAI).
 CKYC will store all the customer information at one
central server that is accessible to all the financial
Institutions.
Dr. Ankit Jain 10

11.  Once CKYC processed successfully, customer will
receive a 14 digit Identification number. This is known
as KIN (KYC Identification Number)
 Customer can check CKYC status online.
Dr. Ankit Jain 11

12.  EKYC is a paperless KYC.
 There is a restriction in EKYC to invest in mutual fund
of Rs 50,000 maximum in one year in any one mutual
fund scheme.
Dr. Ankit Jain 12

13.  When fresh purchase are made by investors then
customer have to submitting application form and
specify the amount of purchase not MF units.
 A new folio Number is generated.
 Additional purchase can be made under existing Folio
number.
Dr. Ankit Jain 13

14.  It can be specified in terms of units or rupees.
 The repurchase price is applicable NAV minus exit
load.
 Redemption request has to be filed by all joint holder.
Dr. Ankit Jain 14

15.  There are different cut off timings for liquid, debt and
equity mutual fund.
 You can be allotted the NAV of the same day, the
previous day or the next day according to the time you
submit your application and funds.
Dr. Ankit Jain 15

16. Non Liquid Fund: Equity, Debt, Hybrid.
Dr. Ankit Jain 16
Purchase Time NAV
Less than 2lakh Till 3 PM Same Day
2lakh or More than
2 lakh
Any time NAV of Fund
Realization day

17.  Liquid Fund is based on historical concept.
 NAV is calculated through out the year.
Dr. Ankit Jain 17
Purchase Time NAV
Fund available for
utilization
Before 2 PM Previous day NAV

18. Redemption Time NAV
Any Amount Till 3 pm Same day
Any Amount After 3pm Next working day
Dr. Ankit Jain 18

19.  Record the time at which transaction was received at
Mutual fund office.
 The time stamp is mandatory to determine the
applicable NAV for a financial transaction.
 The time stamping machine captures the time of receipt
of transaction.
Dr. Ankit Jain 19

20.  Investor Invest a sum periodically into a mutual fund
scheme.
 Applicable NAV is the NAV on the date of the
instalment.
 Period of SIP can vary 1 ,3 and 5 years.
 Investment is made on specific 1, 5,10,15,20 & 25 of
every month.
 Payment mode can be post dated cheque, standing
instruction for direct transfer.
 AMC does not charge bouncing.
Dr. Ankit Jain 20

21.  Periodically redemptions at the prevailing NAV.
 Investor periodically book profit and generate regularly
income.
 Investor must specify the date of withdrawal, the period
of withdrawal.
 May be specified in terms of units or rupees or as the
periodic appreciation in the scheme.
Dr. Ankit Jain 21

22.  STP is combination of SIP and SWP.
 Periodically transfer a specific sum from one scheme to
another within the same fund house.
 Helps in Rebalancing Portfolio.
 Redemption from source scheme
 Investment to destination scheme.
 SWP from source scheme & SIP into destination
scheme.
Dr. Ankit Jain 22

23.  Trigger is a specific event, on occurrence of which the
funds from one scheme will be automatically redeemed
and/or switched to another scheme as specified by the
investor.
 A trigger will activate a transaction/alert when the
event selected for, has reached a value equal to or
greater than (as the exact trigger value may or may not
be achieved) the specified particular value (trigger
point).
Dr. Ankit Jain 23

24. Q.1 The day on which NAV is calculated by a fund is
known as
a. computation date
b. valuation date
c. record date
d. book closure date
Dr. Ankit Jain 24

25. Q.2 Securities Transaction Tax (STT) is applicable on
a. Equity transactions
b. Debt transactions
c. Gold transactions
d. Mutual fund transactions
Dr. Ankit Jain 25

26. Q.3 The systematic approaches offered by mutual funds to
promote an investment discipline for long term wealth
creation are
a. SIP, STP
b. SIP, STP, SWP
c. SIP, SWP
d. None of the above
Dr. Ankit Jain 26

27. Q.4 STP is a combination of SIP and SWP
a. True
b. False
Dr. Ankit Jain 27

28. Q.5 The most important advantage of a money market
mutual fund is
a. quick capital appreciation
b. high regular income
c. safety of principal
d. no loads
Dr. Ankit Jain 28

29. Q.6 The difference between NAV and re-purchase price is
a. Entry Load
b. Exit Load
c. Expense
Dr. Ankit Jain 29

30. Q.7 A significant benefit of open-end schemes is
a. Low cost
b. Better portfolio
c. Superior returns
d. Liquidity
Dr. Ankit Jain 30

31. Q.8 Capital Protection Oriented Schemes are always
______________.
a. Open-ended
b. Closed-ended
c. Interval funds
d. Exchange-traded funds
Dr. Ankit Jain 31