Bharti axa mutual fund application form equity with kim

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Bharti axa mutual fund application form equity with kim

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Bharti axa mutual fund application form equity with kim

  1. 1. KEY INFORMATION MEMORANDUM(KIM) CUM APPLICATION FORMBharti AXA Equity Fund(An Open-Ended Equity Growth Fund)Bharti AXA Tax Advantage Fund(An Open-Ended Equity Linked Saving Scheme)Bharti AXA Focused Infrastructure Fund(An Open-Ended Equity Scheme)Offer of Units at Applicable NAV Investment Manager : Sponsor : Mutual Fund : Trustee : Bharti AXA Investment Managers Pvt Ltd AXA Investment Managers Bharti AXA Mutual Fund Bharti AXA Trustee Services Pvt Ltd 51, 5th Floor, Kalpataru Synergy, Vakola, Coeur Défense-Tour B-La Défense 4 51, 5th Floor, Kalpataru Synergy, Vakola, 51, 5th Floor, Kalpataru Synergy, Vakola, Santacruz (E), Mumbai 400055 100 Esplanade du Général de Gaulle Santacruz (E), Mumbai 400055 Santacruz (E), Mumbai 400055 92400 Courbevoie France This Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing. For further details of the Scheme(s)/Mutual Fund, due diligence certificate by the AMC, Key Personnel, investors’ rights & services, risk factors, penalties & pending litigations etc. investors should, before investment, refer to the Scheme Information Documents (SID) and Statement of Additional Information (SAI) available free of cost at any of the Investor Service Centers or distributors or from the website www.bhartiaxa-im.com. The Scheme particulars have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended till date, and filed with the Securities and Exchange Board of India (SEBI). The units being offered for public subscription have not been approved or disapproved by SEBI, nor has SEBI certified the accuracy or adequacy of this KIM. This KIM is dated April 29, 2011 Bharti AXA Equity Fund Units are of Face Value of ` 10/- each. Note: Minimum investment amount criteria does not apply for investments made in the Scheme through Liq-Investment Objective uity facility.To generate income and long-term capital appreciation through a diversified portfolio of predominantly equity Minimum Redemptionand equity-related securities including equity derivatives, across all market capitalizations. The Scheme is in The minimum amount for redemption shall be ` 1,000 or equivalent Unit value, or entire account balancethe nature of diversified multi-cap fund. The Scheme is not providing any assured or guaranteed returns. whichever is lower.However, there can be no assurance that the investment objectives of the Scheme will be realized. For investors transacting through the Stock Exchange Facility (i.e. the facility for transacting (purchase/Asset Allocation Pattern of the scheme redemption) in the Units of the Scheme through the stock exchange infrastructure, in terms of SEBI CircularThe Asset Allocation pattern of the Scheme under normal circumstances would be as under. No. SEBI /IMD / CIR No.11/183204/ 2009 dated November 13, 2009 and in accordance with the guidelines specified by the Exchange from time to time), the minimum quantity for redemption must be 100 Units or suchTypes of Instruments Range of Allocation Risk Profile other quantity as may be specified by the AMC/ Exchange from time to time. If the account balance is less than (% of Net Assets) (High/ Medium/ Low) the minimum number of Units specified, further partial redemption will not be allowed and the entire balanceEquity and equity related securities * 65% - 100% High will be redeemed in response to any redemption application received from the investor.Debt & money market securities/instruments# 0 - 35% Low to Medium Despatch of Repurchase (Redemption) Request* Investments in derivative instruments shall not exceed 50% of net assets of the portfolio.# The Fund will endeavor to dispatch redemption proceeds within 3 Business Days from the acceptance of the No investments will be made in securitized debt. Redemption request, but not later than 10 working days.Investments in foreign securities shall not exceed 35% of net assets of the portfolio. Benchmark IndexThe Scheme may engage in stock lending not exceeding 20% of its net assets, and not more than 5% of S&P CNX Nifty Indexthe net assets would be deployed in stock lending to any single counter party. Dividend PolicyDifferentiation from other schemes Please refer point “C” of section “Information Common for Schemes” in this KIMBharti AXA Equity Fund (BAEF) is a diversified multi-cap fund. As a result the fund will have the flexibility to Name of the Fund Managerinvest in equity and equity related securities across market capitalizations and sectors Mr. Gaurav KapurWho should invest in the scheme Name of the Trustee CompanyBharti AXA Equity Fund is a diversified equity fund and would therefore be less volatile as compared to a Bharti AXA Trustee Services Private Limitedthematic or sectoral fund. However, as Bharti AXA Equity Fund is a multi-cap fund, there may be instances,based on the Fund Manager’s outlook, when the portfolio is more heavily invested in mid or small cap Performance of the schemecompanies. Equity shares with a Mid or small market capitalisation are typically more volatile than as Compounded Annualised Returns%compared to shares having large market capitalizations. During these times, the performance of the fund Scheme Name Last 1 Year as on Since Inception (ascould be more volatile as compared to a fund that invests only in companies with large market capitalizations. March 31, 2011 on March 31, 2011)Hence, the fund is suited to investors with some prior experience in equity investing or even for first timeequity investors who are aware of the risk associated with investing in equities, particularly with regard to mid Bharti AXA Equity Fund - Regular Plan -0.28% 28.43%and small capitalization companies. Bharti AXA Equity Fund - Eco Plan -0.06% 28.77%Investment Strategy S&P CNX Nifty 11.14% 37.56%Under normal market conditions, the Scheme would invest predominantly in a diversified portfolio Absolute Returns (%) for each financial year for the last 5 yearsconstituting equity and equity related instruments of companies that the Fund Manager believes have 78.50% 78.85% 73.76%sustainable business models, and potential for capital appreciation. The Scheme would follow an actively 75.0%managed approach allowing it the flexibility to pursue opportunities across the entire market capitalizationspectrum, from smaller companies to well-established large-cap companies, without having any bias in 55.0%favour of sectoral allocations or market capitalization. The investment environment, valuation parametersand other investment criteria will determine the allocation and the investment style. 35.0%Risk Profile of the Scheme 12.01% 11.14% 15.0%Please refer point “A” of section “Information Common for Schemes” in this KIM 2.92% 3.13%Risk Management Strategies -5.0% -0.28% -0.06%Please refer point “B” of section “Information Common for Schemes” in this KIM Since inception (Oct 29, 2008) to Financial Year ended Financial Year endedPlans and Options March 31, 2009 March 31, 2010 March 31, 2011The Scheme offers following Plans: Bharti AXA Equity Fund - Regular Plan Bharti AXA Equity Fund - Eco Plan S&P CNX Nifty• Regular Plan Inception date – Date of First NAV i.e. 29-10-2008• Eco Plan Note: For the purpose of calculating the performance, the inception date is considered to be the date of• Institutional Plan release of first NAV of the Scheme. The Returns shown are for the Growth Option. Performance of the dividendEco Plan is available for retail purchase transactions (including switch, SIP etc) of upto ` 2 lacs only. Where plan for the investor would be net of the dividend distribution tax, as applicable.the value of any purchase transaction (including switch, SIP) by a Unitholder / investor is upto ` 2 lacs, such Past performance may or may not be sustained in future.Unitholder / investor will have a choice to opt for Eco Plan. This Plan cannot be chosen if the value of any Scheme Informationpurchase transaction by a Unitholder / investor exceeds ` 2 lacs. Assets Under Management (as at March 31, 2011): ` 84.41 croresFor investors opting for this Plan, all investor communications including account statements, annual reports, No. of Folios (as at March 31, 2011): 19,868portfolio statements, and other statutory information shall be communicated / sent to them exclusively inelectronic format to their registered e-mail address. Dividend and redemption payments will be made only by Expenses of the Schemeway of direct credit / ECS / RTGS / NEFT to their registered bank mandate. For investors choosing the Eco Load StructurePlan, a lower annual recurring expense ratio as described under the Para B titled “Annual Scheme Recurring For continuous offer:Expenses” under Section V “Fees and Expenses” of the SID of Bharti AXA Equity Fund will apply. Entry Load Nil (Refer # below)Above plans have a common portfolio. Exit Load 1% if redeemed within 1 year from the date of allotmentOptions #Note: In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will beUnder each of the Plans, following Options are available: charged by the Scheme to the investor effective August 1, 2009. Upfront commission shall be paid directly by• Growth Option the investor to the AMFI registered Distributors based on the investors’ assessment of various factors• Bonus Option including the service rendered by the distributor.• Regular Dividend Option and Quarterly Dividend Option – offering Dividend Re-investment and Dividend Bonus Units, if any, and Units issued on re-investment of dividends shall not be subject to Entry and Exit Pay-out facilities Loads.Applicable NAV for ongoing purchase and sale Investments through SIP/STP/ Liq-uity facility and redemptions of any such investments will attract Exit LoadsIn respect of all Purchase, Redemption and Switch requests during Ongoing Offer Period, Applicable as applicable.NAV will be as follows: Recurring Expenses Weekly average First ` 100 Next ` 300 Next ` 300 BalanceFor valid applications accepted: Net Assets crores crores crores• Upto 3:00 PM (cut-off time) on a Business Day, the NAV of such Business Day. Maximum as % of 2.50% 2.25% 2.00% 1.75% weekly average net assets• After 3:00 PM (cut-off time) on Business Day, the NAV of following Business Day. Actual expenses for the Eco Plan : 2.24%The above will be applicable only for cheques / drafts / payment instruments payable locally in the city in previous financial year Regular Plan : 2.49%which Designated Collection Centre or ISC is located where the applications are being submitted. Payments (2010-11)by Cash, Postal Orders, money orders, non-MICR and outstation cheques; and third party payment Please also refer to "Tax treatment for the investors" and "Information Common for Scheme" in this KIMinstruments (except in certain situations as specified in SAI) will not be accepted.For Switches:Valid applications for switch-out shall be treated as applications for Redemption and valid applications for switch- Bharti AXA Tax Advantage Fundin shall be treated as applications for Purchase and thus the provisions of the Cut-off time and the Applicable NAVas mentioned in the Scheme Information Document (SID) of Bharti AXA Equity Fund as applicable to Purchase Investment Objectiveand Redemption shall be applied respectively to the switch-in and switch-out applications. To generate income and long-term capital appreciation through a diversified portfolio of predominantly equityMinimum Application Amount/ Number of Units and equity-related securities including equity derivatives, across all market capitalizations. The Scheme is inPlan Purchase Additional Purchase the nature of diversified multi-cap fund. The Scheme is not providing any assured or guaranteed returns.Regular Plan ` 5,000 and in multiples of ` 1 ` 1,000 and in multiples of ` 1 There can be no assurance that the investment objectives of the Scheme will be realized.Eco Plan ` 5,000 and in multiples of ` 1 ` 1,000 and in multiples of ` 1 1Institutional Plan ` 5 crore and in multiples of ` 1 ` 1,00,000 and in multiples of ` 1
  2. 2. Asset Allocation Pattern of the scheme Name of Trustee CompanyThe Asset Allocation pattern of the Scheme under normal circumstances would be as under. Bharti AXA Trustee Services Private LimitedTypes of Instruments Range of Allocation Risk Profile Performance of the Scheme (% of Net Assets) (High/ Medium/ Low) Compounded Annualised Returns%Equity and equity related securities * 80% - 100% High Scheme Name Last 1 Year as on Since Inception (asDebt & money market securities/instruments# 0 - 20% Low to Medium March 31, 2011 on March 31, 2011)*Investment in derivatives instruments may be made only if permitted under Equity Linked Savings Scheme Bharti AXA Tax Advantage Fund - Regular Plan -2.10% 49.86%(ELSS) Rules and SEBI Regulations. In such event, the investments in derivatives shall be up to 50% of the Bharti AXA Tax Advantage Fund - Eco Plan -1.83% 50.21%net assets of the Scheme. S&P CNX Nifty 11.14% 43.03%# The Scheme will not make investments in securitized debt.Investment in foreign securities may be made only if permitted under and in line with the Regulations and Absolute Returns (%) for each financial year for the last 5 yearsELSS Rules as in force from time to time. In such an event, the Fund may invest in such overseas securities 160.00%subject to limit of 20% of net assets of the Scheme. 116.95% 117.42% 120.00%The Scheme may engage in stock lending not exceeding 20% of its net assets, and not more than 5% of thenet assets would be deployed in stock lending to any single counter party. 80.00% 73.76%Differentiation from other schemes 40.00%Bharti AXA Tax Advantage Fund is an Equity Linked Savings Scheme (ELSS) offering Tax Benefits under 9.54% 9.54% 9.31% 11.14%Section 80C of the Income Tax Act. The fund is in the nature of a diversified multi-cap fund. 0.00%Who should invest in the scheme -2.10% -1.83% -40.00% Since inception (Feb 27, 2009) to Financial Year ended Financial Year endedBharti AXA Tax Advantage Fund is an ELSS and hence suited for investors who wish to avail of a deduction ofincome under Sec 80 C of Income Tax Act. Bharti AXA Tax Advantage Fund being an ELSS has a 3 year lock- March 31, 2009 March 31, 2010 March 31, 2011in period. The fund is suitable for investors with a long-term investment horizon. In terms of fund Bharti AXA Tax Advantage Fund - Regular Plan Bharti AXA Tax Advantage Fund - Eco Planmanagement, the 3 year lock-in period gives the fund manager the comfort of planning his investments with a S&P CNX Niftylong-term horizon. Inception date – Date of First NAV i.e. 27-2-2009Investment Strategy Note: for the purpose of calculating the performance the inception date is considered to be the date of releaseUnder normal market conditions, the Scheme would invest predominantly in a diversified portfolio of first NAV of the Scheme. The Returns shown are for the Growth Option. Performance of the dividend planconstituting equity and equity related instruments of companies that the Fund Manager believes have for the investor would be net of the dividend distribution tax, as applicable.sustainable business models, and potential for capital appreciation. Past performance may or may not be sustained in future.The Scheme would follow an actively managed approach allowing it the flexibility to pursue opportunities Scheme Informationacross the entire market capitalization spectrum, from smaller companies to well-established large-capcompanies, without having any bias in favour of sectoral allocations or market capitalization. The investment Assets Under Management (as at March 31, 2011): ` 37.59 croresenvironment, valuation parameters and other investment criteria will determine the allocation and the No. of Folios (as at March 31, 2011): 15,590investment style. Expenses of the SchemeRisk Profile of the Scheme Load StructureScheme specific Risk Factors are summarized below: For continuous offer:1. By virtue of requirements under the Equity Linked Savings Scheme, 2005 issued by Department of Entry Load Nil (Refer # below) Economic Affairs, Ministry of Finance, Government of India vide Notification no 226/2005 dated November 13, 2005 and amended vide notification dated December 13, 2005 (ELSS Rules), Units issued Exit Load Nil under the Scheme cannot be redeemed until the expiry of three years from the date of their allotment. #Note: In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be Consequently, the ability of an investor to redeem the investments or realise returns on investments in the charged by the Scheme to the investor effective August 1, 2009. Upfront commission shall be paid directly by Scheme is restricted for the first three years. Redemption prior to the expiry of the aforesaid three year the investor to the AMFI registered Distributors based on the investors’ assessment of various factors period is permissible, subject to the ELSS Rules only in the event of the death of a Unit holder who is an including the service rendered by the distributor. Assessee, subject to the Units having been held for a period of at least one year from the date of allotment. Bonus Units, if any, and Units issued on re-investment of dividends shall not be subject to Entry and Exit2. Bharti AXA Tax Advantage Fund has been framed in accordance with the ELSS Rules and other prevailing Loads. laws. The tax benefits described in this document are as available under the prevailing taxation laws Investments through SIP/STP and redemptions of any such investments will attract Exit Loads as applicable. including the ELSS Rules, which or whose interpretation may change from time to time. As is the case with Recurring Expenses Weekly average First ` 100 Next ` 300 Next ` 300 Balance any investment, there can be no guarantee that the current tax position or the tax position prevailing at the Net Assets crores crores crores time of an investment in the Scheme will not undergo change. In view of the individual nature of tax consequences, each Unit holder is advised to consult his / her / their own professional tax advisor. Maximum as % of 2.50% 2.25% 2.00% 1.75% weekly average net assetsFor further details on risk factors, please refer point “A” of section “Information Common for Schemes” of thisKIM. Actual expenses for the Eco Plan : 2.25% previous financial year Regular Plan : 2.50%Risk Management Strategies (2010-11)Please refer point “B” of section “Information Common for Schemes” in this KIM Please also refer to "Tax treatment for the investors" and "Information Common for Scheme" in this KIMPlans and OptionsThe Scheme offers following Plans: Bharti AXA Focused Infrastructure Fund• Eco Plan• Regular Plan Investment ObjectiveEco Plan: Eco Plan is available for purchase transactions (including switch, SIP etc) of upto ` 2 lacs only. This The Scheme seeks to generate long term capital appreciation through a portfolio of predominantly equity andPlan cannot be chosen if the value of any purchase transaction exceeds ` 2 lacs. equity related securities of companies engaged in infrastructure and infrastructure related sectors.For investors opting for this Plan, all investor communications including account statements, annual reports, However, there can be no assurance that the investment objectives of the Scheme will be realized. Theportfolio statements, and other statutory information shall be communicated / sent to them exclusively in Scheme is not providing any assured or guaranteed returns.electronic format to their registered e-mail address. Dividend and redemption payments will be made only byway of direct credit / ECS / RTGS / NEFT to their registered bank mandate. For investors choosing the Eco Asset Allocation Pattern of the SchemePlan, a lower annual recurring expense ratio as described under the Para B titled “Annual Scheme Recurring The Asset Allocation pattern of the Scheme under normal circumstances would be as under.Expenses” under Section V “Fees and Expenses” of the SID of Bharti AXA Tax Advantage Fund will apply. Types of Instruments Range of Allocation Risk ProfileWhere the value of any purchase transaction is greater than ` 2 lacs, then such investments can be placed (% of Net Assets)only in Regular Plan. If the investor / Unit holder has erroneously chosen Eco Plan, the entire amount will be Equity and equity related securities of companies engaged in 65% to 100% Highautomatically placed in Regular Plan. In such cases, unless the Investor specifies distinct Options/ infrastructure and infrastructure related sectorspreferences, the Options and preferences as chosen under Eco Plan folio, if any, will automatically apply. Allcommunications to a Unit holder having Eco Plan folio would continue to be sent in electronic format (e-mail, Debt & money market securities/ instruments# 0 to 35% Low to Mediumsms, etc). # no investments will be made in securitized debt.Regular Plan: The Scheme also offers Regular Plan for any amount (subject to minimum investment amount). Investments in foreign securities shall not exceed 20% of net assets of the portfolio.Purchase transactions exceeding ` 2 lacs can be placed only in Regular Plan. The Scheme may engage in stock lending not exceeding 20% of its net assets, and not more than 5% of theBoth Plans will have common portfolio. If the investor does not clearly specify the choice of Plan at the time of net assets would be deployed in stock lending to any single counter party.investing, it will be treated as an investment in the Regular Plan. Differentiation from other schemesEach of the Plans have following Options: Bharti AXA Focused Infrastructure Fund (BAFIF) is an infrastructure themed fund. As a result the fund will• Growth Option for capital appreciation invest in equity and equity related securities of companies engaged only in infrastructure and infrastructure• Dividend Option offering Dividend Re-investment and Dividend Pay-out facilities related sectors, and will not invest in companies in other sectors.Applicable NAV for ongoing Purchase and sale Who should invest in the schemeIn respect of all Purchase, Redemption and Switch requests during Ongoing Offer Period, Applicable Bharti AXA Focused Infrastructure Fund is an infrastructure themed fund. Unlike a fully diversified equity fund,NAV will be as follows: the portfolio concentration of this Scheme would be higher and hence the fund is expected to be more volatile. However, over a long term, the Scheme will benefit by the sustained focus on infrastructure development inFor valid applications accepted: India.• Upto 3:00 PM (cut-off time) on a Business Day, the NAV of such Business Day. The Scheme would be more suitable for investors who are desirous of increasing their exposure to• After 3:00 PM (cut-off time) on Business Day, the NAV of following Business Day. infrastructure space in their personal equity portfolio. Thus, this Scheme could act as a “top up” over existingThe above will be applicable only for cheques / drafts / payment instruments payable locally in the city in which investments of such investors in diversified equity funds. However, for a first time investor, it might still beDesignated Collection Centre or ISC is located where the applications are being submitted. Payments by advisable to initially start his investment with a diversified equity fund.Cash, Postal Orders, money orders and outstation cheques / drafts; and third party payment instruments Investment Strategy(except in certain situations as specified in SAI) will not be accepted. Bharti AXA Focused Infrastructure Fund is an equity scheme that will invest predominantly in equity and equityFor Switches: related securities of companies that are engaged in infrastructure and infrastructure related Sectors.Valid applications for switch-out shall be treated as applications for Redemption and valid applications for The Scheme would follow an actively managed approach allowing it the flexibility to pursue opportunitiesswitch-in shall be treated as applications for Purchase and thus the provisions of the Cut-off time and the across the entire market capitalization spectrum, from smaller companies to well-established large-capApplicable NAV as mentioned in the SID of Bharti AXA Tax Advantage Fund as applicable to Purchase and companies. The investment environment, valuation parameters and other investment criteria will determineRedemption shall be applied respectively to the switch-in and switch-out applications. the allocation and the investment style.Minimum Application Amount/ Number of Units The Scheme will invest in the infrastructure companies within the broad AMFI classification of Sectors as` 500/- and in multiples of ` 500/- for Purchases including Purchases through Systematic Investment Plan under:(SIP)/ Systematic Transfer Plan (STP) and Additional Purchases. Cement & Cement products, Construction, Energy, Industrial Manufacturing, Metals, Services (onlyUnits are of Face Value of ` 10/- each. Infrastructure related services eg. Transportation), Telecommunication, and Financial services (only those primarily engaged in financing infrastructure projects).Minimum Redemption Amount The scheme will NOT invest in the following Sectors:` 500/- (or equivalent Unit value), or account balance, whichever is lower. Automobiles, Banks & other Financial Services companies (other than those covered in above list), ServicesFor investors transacting through the Stock Exchange Facility (i.e. the facility for transacting purchase (Other than Infrastructure related), Chemicals, Consumer Goods, Fertilizers & Pesticides, Information/redemption) in the Units of the Scheme through the stock exchange infrastructure, in terms of SEBI Circular Technology, Paper, Pharmaceuticals, and Textiles.No. SEBI /IMD / CIR No.11/183204/ 2009 dated November 13, 2009 and in accordance with the guidelinesspecified by the Exchange from time to time), the minimum quantity for redemption must be 50 Units or such Risk Profile of the Schemeother quantity as may be specified by the AMC/ Exchange from time to time. If the account balance is less than Scheme specific Risk Factors are summarized below:the minimum number of Units specified, further partial redemption will not be allowed and the entire balance 1. The investments under the Scheme would predominantly be in equity and equity related securities ofwill be redeemed in response to any redemption application received from the investor. companies engaged in infrastructure and infrastructure related sectors, and hence will be affected by risksDespatch of Repurchase (Redemption) Request associated with such companies. Infrastructure sector is sensitive to government policy. If the governmentWithin10 working days of the receipt of the redemption request at the authorised centre of Bharti AXA Mutual policy ceases to be favorable towards the sector, the sector may under perform. Further, amongst theFund. (Redemptions are subject to lock-in period of 3 years from the date of respective allotment). infrastructure sectors covered under the Scheme, majority of the equity/ equity oriented investments could be under a single sector/industry. Hence, if the said sector/industry does not perform positively asBenchmark Index expected by the Fund Manager of the Scheme, the Schemes performance may be adversely affected dueS&P CNX Nifty Index to a risk associated with non diversification and could thus affect the value of investments.Dividend Policy 2. Given that the Scheme seeks to invest in equity/ equity related securities of the Companies engaged in thePlease refer point “C” of section “Information Common for Schemes” in this KIM infrastructure sector and that the investment concentration may be high in certain companies belonging toName of the Fund Manager the said sector, the volatility and/or performance of the said sector and/or of the scrips belonging to this 2Mr. Gaurav Kapur
  3. 3. sector can have a material adverse bearing on the performance of the Scheme. Dividend Policy 3. Although the Scheme seeks to make investments in equity and equity related securities of the Please refer point “C” of section “Information Common for Schemes” in this KIM Infrastructure sector, this scheme will not be a sector specific scheme for the purpose of monitoring the Name of the Fund Manager investment restrictions applicable to the Scheme and hence investments per issuer under the Scheme will Mr. Gaurav Kapur not exceed 10% (at the time of investment) of the net assets of the Scheme. 4. The Scheme will focus on companies which will benefit from structural changes brought about by Name of Trustee Company continuing liberalization in economic policies by the Government and / or from continuing investments in Bharti AXA Trustee Services Private Limited infrastructure, both by public / private sector. It is possible that such policies may not fructify or crystallize in Performance of the Scheme a manner commensurate with expectations thereby affecting the prospects of the companies held in the Compounded Annualised Returns% portfolio of the Scheme. Scheme Name Last 1 Year as on Since Inception For further details on risk factors, please refer point “A” of section “Information Common for Schemes” of this March 31, 2011 (as on March 31, 2011) KIM. Bharti AXA Focused Infrastructure Fund -8.99% -7.84% Risk Management Strategies BSE 100 Index 8.55% 10.32% Please refer point “B” of section “Information Common for Schemes” in this KIM Plans and Options Absolute Returns (%) for each Financial year for the last 5 years The Scheme offers following Options: 12.00% • Growth Option for capital appreciation 8.55% 8.00% • Quarterly Dividend Option offering Dividend Re-investment and Dividend Pay-out facilities • Regular Dividend Option offering Dividend Re-investment and Dividend Pay-out facilities 4.00% 2.20% 0.78% Applicable NAV for ongoing Purchase and sale 0.00% In respect of all Purchase, Redemption and Switch requests, the Applicable NAV will be as follows: For valid applications accepted: -4.00% • Upto 3:00 PM (cut-off time) on a Business Day, the NAV of such Business Day. -8.00% • After 3:00 PM (cut-off time) on a Business Day, the NAV of following Business Day. -8.99% The above will be applicable only for cheques / drafts / payment instruments payable locally in the city in which -12.00% Since inception (March 10, 2010) to March 31, 2010 Financial Year ended March 31, 2011 Designated Collection Centre or ISC is located where the applications are being submitted. Payments by Cash, Postal Orders, money orders, non-MICR and outstation cheques; and third party payment instruments Bharti AXA Focused Infrastructure Fund - Regular Plan BSE 100 Index (except in certain situations as specified in SAI) will not be accepted. For Switches: Inception date – Date of First NAV i.e. 10-3-2010 Valid applications for switch-out shall be treated as applications for Redemption and valid applications for Note: for the purpose of calculating the performance the inception date is considered to be the date of release switch-in shall be treated as applications for Purchase and thus the provisions of the Cut-off time and the of first NAV of the Scheme. The Returns shown are for the Growth Option. Performance of the dividend plan Applicable NAV as mentioned in this SID as applicable to Purchase and Redemption shall be applied for the investor would be net of the dividend distribution tax, as applicable. respectively to the switch-in and switch-out applications. Past performance may or may not be sustained in future. Minimum Application Amount/ Number of Units Scheme Information Minimum Investment Minimum Additional Investment Assets Under Management (as at March 31, 2011): ` 29.77 crores ` 5,000/- ` 1,000/- No. of Folios (as at March 31, 2011): 8,233 Investments may be made in multiples of ` 1/- (subject to minimum amount) Expenses of the Scheme Investments through SIP / STP Load Structure Minimum Instalment Amount Minimum Duration Entry Load Nil (Refer # below) Daily SIP/STP ` 300/- and in multiples of ` 100/- thereafter 1 month Exit Load 1%, if redeemed within 1 year from the date of allotment (eg: ` 400/-, 500/-, 600/- etc) #Note: In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be Monthly SIP/STP ` 1,000/- and in multiples of ` 100/- thereafter 6 months charged by the Scheme to the investor effective August 1, 2009. Upfront commission shall be paid directly by (eg: ` 1,100/-, 1,200/-, 1,300/- etc) the investor to the AMFI registered Distributors based on the investors’ assessment of various factors Minimum investment amount criteria does not apply for investments made in the Scheme through Liq-uity including the service rendered by the distributor. facility. Bonus Units, if any, and Units issued on re-investment of dividends shall not be subject to Entry and Exit Units are of Face Value of ` 10/- each Loads. Minimum Redemption Investments through SIP/STP/ Liq-uity facility and redemptions of any such investments will attract Exit Loads as applicable. The minimum amount for redemption shall be ` 1,000 or equivalent Unit value, or entire account balance Recurring Expenses Weekly average First ` 100 Next ` 300 Next ` 300 Balance whichever is lower. Net Assets crores crores crores For investors transacting through the Stock Exchange Facility (i.e. the facility for transacting (purchase / Maximum as % of 2.50% 2.25% 2.00% 1.75% redemption) in the Units of the Scheme through the stock exchange infrastructure, in terms of SEBI Circular weekly average net assets No. SEBI /IMD / CIR No.11/183204/ 2009 dated November 13, 2009 and in accordance with the guidelines specified by the Exchange from time to time), the minimum quantity for redemption must be 100 Units or such Actual expenses for the 2.50% other quantity as may be specified by the AMC/ Exchange from time to time. If the account balance is less than previous financial year the minimum number of Units specified, further partial redemption will not be allowed and the entire balance (2010-11) will be redeemed in response to any redemption application received from the investor. Please also refer to "Tax treatment for the investors" and "Information Common for Scheme" in this KIM Despatch of Repurchase (Redemption) Request The Fund will endeavor to dispatch redemption proceeds within 3 Business Days from the acceptance of the Redemption request, but not later than 10 working days. Benchmark Index BSE 100 Index Tax treatment for the Investors (Unitholders) Bharti AXA Equity Fund, Bharti AXA Tax Advantage Fund and Bharti AXA Focused Infrastructure Fund be no guarantee that the current tax position or the tax position prevailing at the time of an investment in the Resident Investor * Mutual Fund Scheme will not undergo change. In view of the individual nature of tax consequences, each Unit holder isTax on Dividend distributed by Nil Nil - In case of equity oriented advised to consult his / her / their own professional tax advisor.the Mutual Fund fund (Refer Note) * The tax rate would be increased by a surcharge of:Long-term capital gains Nil - in case of equity oriented fund Nil (a) 5% - in case of domestic corporate Unit Holders, where the total income exceeds ` 10,000,000Short-term capital gains 15% - in case of equity oriented fund# Nil (b) Nil – in case of individuals, firms, local authority and co-operative societiesBusiness Income 10% - 30% based on the total income Nil Further, an additional surcharge of 3% by way of education cess would be charged on amount of tax inclusive of the investor## of surcharge for all Unit Holders.An equity oriented mutual fund will also attract securities transaction tax (STT) at applicable rates on # In case of resident individuals and HUFs, where the total income as reduced by the short-term capital gains,redemption / repurchase of units. is below the maximum amount which is not chargeable to income-tax, then, such short-term capital gains willNote: An equity oriented fund has been defined as a scheme of a Mutual Fund where the investible funds are be reduced to the extent of the shortfall and only the balance short-term capital gains will be subjected to theinvested in equity shares of domestic companies to the extent of more than 65 per cent of the total proceeds of 15% tax rate.such fund. The percentage of equity shareholding of the fund shall be computed with reference to the annual ## Assuming that the total income in case of individuals, HUF / Association of Persons (AOP) / Body ofaverage of the monthly averages of the opening and closing figures. Individuals (BOI) exceeds the basic exemption limit (` 500,000 in case of resident individual of an age 80For further details on taxation, please refer to Section XI titled “TAX PROVISIONS IN RESPECT OF years or more, ` 250,000 in case of resident individual of an age of 60 years or more but less than 80 years,INVESTMENTS IN MUTUAL FUNDS” in the Statement of Additional Information. ` 190,000 in case of woman resident in India below 60 years of age and ` 180,000 in case of other individual and HUF, AOP/BOI).The tax benefits described in the SID of the schemes/ in the SAI are as available under the prevailing taxationlaws, which or whose interpretation may change from time to time. As is the case with any investment, there can All rates are as at March 31, 2011. 3
  4. 4. Information Common for SchemesA. Risk Profile of the Scheme next working/Business Day will be considered as a record date. All Unit holders in the respective Plans, whoseMutual Fund Units involve investment risks including the possible loss of principal. Please read the Scheme names appear in the Register of Unit holders on the record date, will be eligible to receive the dividend.Information Document (SID) of the schemes carefully for details on risk factors before investment. Scheme Where the amount of dividend payable to a Unit holder is less than or equal to ` 500/-, the dividend amount willspecific Risk Factors are summarized below: not be paid, but shall be compulsorily reinvested irrespective of the Unit holder having selected the PayoutEquity and equity related securities are volatile and carry risk of price fluctuations on an ongoing basis. The Option.liquidity of investments made in the Scheme may be restricted by trading volumes and settlement periods. D. Waiver of Load For Direct ApplicationSettlement periods may be extended significantly by unforeseen circumstances. The inability of the Scheme to No Entry Load shall be charged on application received on or after August 1, 2009, including Directmake intended securities purchases due to settlement problems could cause the Scheme to miss certain Application. Direct Application means application for purchase of Units received from investors / Unitholdersinvestment opportunities. Similarly, the inability to sell securities held in the Schemes portfolio may result, at which are lodged directly at the ISCs / Designated Collection Centres or made through the AMC Website, andtimes, in potential losses to the Scheme, should there be a subsequent decline in the value of securities held in which does not bear stamp or code of any distributor, sub-distributor, agent or broker or not routed through anythe Schemes portfolio. such intermediary.Investments in equity and equity related securities involve a degree of risk and investors should not invest in the For Direct Application, investors should note the following for ensuring that the application is treated as aScheme unless they can afford to take the risk of losing their investment. Direct Application :The liquidity and valuation of the Schemes investments due to its holdings of unlisted securities may be 1. Broker code, if already printed on the application form, should be crossed-out / struck-off and investoraffected if they have to be sold prior to the target date of disinvestment. Fixed Income instruments may be should counter sign besides the same.subject to price volatility due to factors such as changes in interest rates, general level of market liquidity and 2. Where the broker code block in the application form is blank, it is advisable to cross out / strike-off ormarket perception of credit worthiness of the issuer of such instruments. indicate “DIRECT” / “Not Applicable” in the block.Different types of securities in which the Scheme would invest, carry different levels and types of risk. 3. Such applications should be lodged at ISCs as listed in AMC Website.Accordingly, the Schemes risk may increase or decrease depending upon its investment pattern. e.g.corporate bonds carry a higher amount of risk than Government securities. Further, even among corporate Direct Applications will attract Exit Load as applicable.bonds, bonds which are rated AAA are comparatively less risky than bonds which are AA rated. E. Daily Net Asset Value (NAV) publicationFor further Risk Factors, please refer to the Scheme Information Documents of the schemes. The NAV will be declared on all Business Days and will be released for publication in 2 newspapers. NAV canB. Risk Management Strategy also be viewed on www.bhartiaxa-im.com and www.amfiindia.com. For Bharti AXA Tax Advantage Fund, it may be noted that the first re-purchase/ redemption price will be published only after 1 year from the date ofRisk Management is integral to the portfolio management process and endeavours to monitor and align the first allotment and thereafter for all Business Days.financial risk profile of the actual scheme portfolio with the stated investment objective of the scheme and, assuch, the financial risks associated with that investment objective. F. For Investor Grievances, please contactVarious financial risks are applicable to the schemes, as given above and also the Risk Factors section as Registrar & Transfer Agent: Asset Management Company:detailed in the respective Scheme Information Documents. These financial risks are measured and monitored Karvy Computershare Pvt. Ltd. Mr Nanda Kishore Sethuramanon a regular basis, with a view to managing these within levels, which, under normal market conditions, the Karvy Registry House # 8-2-596, Head – Marketing & Customer ServiceFund views as being consistent with the investment objective of the scheme. Avenue 4, Street No. 1, Bharti AXA Investment Managers Private LimitedRisk Risk Monitoring / Management Strategy Banjara Hills, Hyderabad - 500 034 51, 5th Floor, East Wing , Kalpataru Synergy,For Fixed Income Investments Vakola, Santacruz (E), Mumbai - 400 055, India.Interest Rate Risk Interest rate sensitivity parameters such as interest rate duration and average Email: Service@bhartiaxa-im.com maturity - for individual instruments as well as portfolio aggregates - are used to monitor interest rate risk. These metrics are maintained within levels which, Customer Engagement Centers: under normal market conditions, the Fund views as being consistent with the Tollfree Number: 18001032263 investment objective of the scheme Alternate Number : 020 - 40112300Credit Risk Internal Credit Analysis is undertaken for non-sovereign issuers whose fixed G. Unitholders Information income securities are invested in by the fund. In addition to internal analysis, a) Account Statement: An account statement will be sent by ordinary post / courier / electronic mail to each process also includes obtaining information from one or several external credit Unit Holder, stating the number of units purchased not later than 5 working days from the date of rating agencies e.g., CRISIL, ICRA, CARE and Fitch. acceptance of valid application form / transaction slip.Liquidity Risk Managed by maintaining a portion of the portfolio in cash, cash equivalents, For SIP/ STP/ SWP transactions - The first Account Statement under SIP/ STP/ SWP shall be issued money market instruments and sovereign instruments which reduce the overall within 10 working days of the initial investment/ transfer/ withdrawal. Account Statement for SIP/ STP/ portfolio liquidity risk. SWP transactions will be dispatched once every quarter ending March, June, September and DecemberFor Equity Investments within 10 working days of the end of the respective quarter.Concentration risk Investing in a diversified portfolio of companies and industry sectors within the Account Statement for Dormant Account - The fund shall provide the Account Statement to the Unit defined investment universe. (It should be noted that for schemes where the holders who have not transacted during the last six months prior to the date of generation of Account objective is to invest in specific sectors, concentration risk is inherently higher Statements. The Account Statement shall reflect the latest closing balance and value of the Units prior to than schemes with a larger investment universe.) the date of generation of the Account Statement.Liquidity Risk Secondary market liquidity of equity investments of the schemes are monitored b) Annual Report: Scheme wise Annual Report or an abridged summary thereof shall be mailed to all at aggregate portfolio levels. Investment in unlisted stocks would tend to be a Unitholders within four months from the date of closure of the relevant accounting year i.e. 31st March small part of the portfolio. each year.C. Dividend Policy The Abridged Scheme wise Annual Report may be mailed to the investors’ e-mail address if so mandatedDepending on the respective Plans and Options of the Scheme, the Scheme will endeavor to declare dividends by the Investors in the Application Form.as mentioned in the Scheme Information Document. c) Half – Yearly Financial Results and Portfolio Details: The Mutual Fund shall publish statement of theIn case no dividend is declared, the net surplus, if any, will remain invested and be reflected in the NAV. All Scheme portfolio and the unaudited financial results, within one month from the close of each half yeardividends will be paid in accordance with procedure prescribed by SEBI circular dated April 4, 2006. (i.e. 31st March and 30th September), by way of an advertisement, in one National English daily and oneDeclaration of dividends will be subject to availability of distributable profits, as computed in accordance with regional newspaper in the language of the region where the head office of the Mutual Fund is located orSEBI Regulations, 1996. All distribution of earnings will be out of distributable surplus and at the discretion of as required by the Regulations. Alternatively, the mutual fund may opt to send the portfolio to all Unitthe Trustee. The Trustees decision with regard to availability and adequacy, rate, timing and frequency of holders in lieu of the advertisementdividend declaration shall be final. d) For unit holders who have opted to receive all communications in email form and investors in Eco Plan, allThe dividends, if declared/paid, may vary for different pay-out periods. investors communications including account statements, annual reports, portfolio statements, statutoryThe record date for the dividends may be fixed by the AMC. If such record date is a non-Business Day, then the and other information shall be communicated/sent exclusively in electronic format to their e-mail address. INSTRUCTIONS FOR COMPLETING APPLICATION FORM Please read the Scheme Information Document, Key Information Memorandum of the relevant scheme and the the relationship/status along with documents evidencing such relationship of the guardian should be furnished. Statement of Additional Information carefully before filling up the application form. Investors are deemed to have read Documentary proof of date of birth of minor (Birth certificate, School leaving certificate, Passport copy or similar and accepted the terms subject to which the offer is being made, and bind themselves to the terms upon signing the document, duly attested) should be furnished while opening the account. application form and tendering payment. Applications for Non-Individuals: Companies, Trusts, Partnership firms, Societies or any other association should General instructions - Please complete the form : write the name exactly as it appears in its Incorporation document and in the Bank records (as provided in the bank • Legibly. • In black ink or any dark coloured ink. account details). Sole-proprietorship concerns should apply in the name of the sole-proprietor. • In English language. • In BLOCK LETTERS. Applications under a Power of Attorney or by a limited company or a corporate body or an eligible institution or a • By ticking the appropriate box for relevant options. registered society or a trust must be accompanied by the original Power of Attorney (or a certified true copy of the same Please fill in the fields marked as MANDATORY to prevent rejection of your Application Form. Please refer to the duly notarised) or the relevant resolution or authority to make the application (or duly notarised copy thereof) as the case checklist provided at the end of the Application Form to ensure that the necessary details and attachments are made may be, along with a certified copy of the Memorandum and Articles of Association and/or bye-laws and/or trust deed available. This will help to avoid processing delays and / or rejection of your Application. and/or partnership deed and/or Certificate of Registration. Authorised officials should sign the Application Form under Applications complete in all respects, may be submitted at the designated Investor Service Centres (ISCs) / Official their official designation. A list of specimen signatures of the authorised officials, duly certified / attested should also be Points of Acceptance of Bharti AXA Mutual Fund. attached to the Application Form. In case of a Trust, a resolution from the Trustee(s) authorising such purchase must be submitted. Applications not complying with the above are liable to be rejected. Investors must write the Application Form number / Folio number / Zero Balance Folio Number on the reverse of the cheques and bank drafts accompanying the Application Form. In case of applications made in joint names without indicating the mode of holding, mode of holding will be deemed as Joint and processed accordingly. All applications will be accepted subject to verification. Invalid or incomplete applications are liable to be rejected after acceptance and verification. The AMC / Trustee retains the sole and absolute discretion to reject any application. 4. APPLICANTS CONTACT INFORMATION 1. DISTRIBUTOR INFORMATION Investor is required to provide his full address. Application received through Distributor If the Investor is an NRI/FII, an overseas address must be provided. A local address if available may also be mentioned in the Application Form. The P.O. Box Number alone is not sufficient. Please ensure to write the correct AMFI Registration Number (ARN) of the distributor in the Application Form. For investors who has submitted KYC acknowledgement, the address as mentioned in the Application Form will be Application received directly overwritten by the address provided by you for the purpose of your KYC to CDSL Ventures Limited (“CVL”). Also for such Investors should ensure to write the word DIRECT in the column ARN No or Broker Code in their applications for investors all future change in your address should be informed to CVL quoting your KYC acknowledgement number / PAN purchases/additional purchases/switches/fresh Systematic Investment Plans (SIP)/ fresh Systematic Transfer Plans number. For information on CVL, please refer to Instruction No. 13. (STP) in all such cases where applications are not routed through any distributor/agent/broker. In cases where unit holder For issuing the Customer ID for each investor in the Folio, the investors are requested to provide their contact details (i.e. uses a pre-printed transaction slip where details in the ARN No or Broker Code column is already printed, unit holder Mobile Numbers). should cancel the ARN No/ Broker Code, write DIRECT in the said column and it should also be counter signed by the 5. EMAIL COMMUNICATION unit holder/ all joint holder(s). Transactions slips/application forms where the column under ARN No or Broker Code is provided, has to be filled by the unit holder as DIRECT for processing the same as Direct applications. Investors can Account Statements / Newsletters / Annual Reports / Other statutory information (as may be permitted under SEBI submit their applications for purchases /additional purchases/ switches/fresh SIP/ fresh STP at any of the Official Point(s) (Mutual Funds) Regulations, 1996) can be sent to each Unit holder by courier / post / e-mail. Unit holders who have opted of Acceptance of Bharti AXA Mutual Fund. The updated list of Official Point(s) of Acceptance is available on the website of to receive these documents by e-mail will be sent all documents by email only and no physical documents will be sent. Bharti AXA Mutual Fund (www.bhartiaxa-im.com). Should the Unit holder experience any difficulty in accessing the electronically delivered documents, the Unit holder may Any modification or cancellation of the Distributor Information should be countersigned by the investor else the same is request the Fund for delivery the same through alternate means. liable to be rejected. It is deemed that the Unit holder is aware of all security risks including possible third party interception of the documents 2. INFORMATION OF EXISTING INVESTOR / ZERO BALANCE FOLIO HOLDER and contents of the documents becoming known to third parties. Existing Investor / Zero Balance Folio Holders should mention the correct Folio Number & can go directly to Section 7 The Newsletter shall be displayed at the AMC website. The Unit holders can request for a copy of the Newsletter by post / (Scheme Details). e-mail. 3. APPLICANT INFORMATION All communication and payments shall be made in the name of and favouring the first/sole applicant only. For ECO Plan - By default all communications to the investors would be via Email only. Applications for Individuals: Please write your name in the sequence of First Name, Middle Name and Last Name. Please do not abbreviate any name. Preferably write your name exactly as it appears in the Bank records (as provided in 6. BANK ACCOUNT DETAILS the bank account details). In order to protect the interest of investors from fraudulent encashment of cheques and as per the current SEBI Please fill in your date of birth as this may be required to establish your identity in your future communication with us. Regulations, it is mandatory for Unit holders to specify their complete bank details in the application for subscription or Incase of investments on behalf of the minor by parent/Guardian, it is mandatory to provide the name of parent/guardian redemption of units. Applications without complete bank details shall be rejected. and the Minor shall be the first and sole holder, and no other person can be added as first/joint holder. Please note that the Applicants should provide the name of the bank, branch address, account type and account no. of the Sole/First Guardian in the folio should be a natural guardian (Father or Mother) or Court appointed legal guardian. Information on Applicant. As per SEBI guidelines, it is mandatory for investors to mention their bank account details in the 4

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