HDFC Next 50 ETF SID V2.Indd

DRAFT - Scheme INFORMATION DOCUMENT HDFC Next 50 ETF AN O PEN E NDED S CHEME REPLICATING/TRACKING NIFTY NEXT 50 INDEX NAME OF SCHEME THIS PRODUCT IS SUITABLE FOR RISKOMETER INVESTORS WHO ARE SEEKING* HDFC Next 50 ETF l returns that are commensurate with the performance of the NIFTY Next 50 Total Moderate Moderately Return Index, subject to tracking error, High over long term ModeratelyLow l investment in equity securities covered by the NIFTY Next 50 Index High Low LOW HIGH Investors understand that their principal will be at moderately high risk *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. New Fund Offer Opens On: New Fund Offer Closes On: Scheme re-opens on: The units of the Scheme will be listed on the National Stock Exchange of India Ltd. (NSE) and/or BSE Limited (BSE). All investors including Authorised Participants and Large Investors can subscribe (buy) / redeem (sell) units on a continuous basis on the NSE/BSE on which the Units are listed during the trading hours on all the trading days. In addition, Authorised Participants and Large Investors can directly subscribe to / redeem units of the Scheme on all Business Days with the Fund in ‘Creation Unit Size’ at NAV based prices on an ongoing basis. Offer for Sale of Units of Face Value of 1/100th Value of Underlying Index as on date of Allotment of Units (On allotment, the value of each unit of the Scheme would be approximately equal to 1/100th of the value of NIFTY Next 50 Index) per unit during the new fund offer period and Continuous offer for Units at NAV based prices. Name of Mutual Fund: HDFC Mutual Fund Name of Asset Management Company: HDFC Asset Management Company Limited Name of Trustee Company: HDFC Trustee Company Limited Addresses, Website of the entities: Address: Asset Management Company (AMC) : Trustee Company : HDFC Asset Management Company HDFC Trustee Company Limited A Joint Venture with Standard Life Investments Registered Office : Registered Office : HDFC House, 2nd Floor, H.T. Parekh Marg, 165-166, HDFC House, 2nd Floor, H.T. Parekh Marg, 165-166, Backbay Reclamation, Churchgate, Mumbai - 400 020. Backbay Reclamation, Churchgate, Mumbai - 400 020. CIN No. U65991MH1999PLC123026 CIN No: U65991MH1999PLC123027 Website: www.hdfcfund.com The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, (herein after referred to as SEBI (MF) Regulations) as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the AMC. The units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document. The Scheme Information Document sets forth concisely the information about the Scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / Investor Service Centres (ISCs) / Website / Distributors or Brokers. The investors are advised to refer to the Statement of Additional Information (SAI) for details of HDFC Mutual Fund, Tax and Legal issues and general information on www.hdfcfund.com SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website - www.hdfcfund.com Please refer to NSE and BSE Disclaimer clauses overleaf. The Scheme Information Document should be read in conjunction with the SAI and not in isolation. This Scheme Information Document is dated _________________________. DISCLAIMER OF NSE: As required, a copy of this Scheme Information Document has been submitted to National Stock Exchange of India Limited (hereinafter referred to as NSE). NSE has given vide its letter NSE/LIST/43942 dated April 13, 2018 permission to the Mutual Fund to use the Exchange’s name in this Scheme Information Document as one of the stock exchanges on which the Mutual Fund’s Units are proposed to be listed subject to, the Mutual Fund fulfilling the various criteria for listing. The Exchange has scrutinized this Scheme Information Document for its limited internal purpose of deciding on the matter of granting the aforesaid permission to the Mutual Fund. It is to be distinctly understood that the aforesaid permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE; nor does it in any manner warrant, certify or endorse the correctness or completeness of any of the contents of this Scheme Information Document; nor does it warrant that the Mutual Fund’s Units will be listed or will continue to be listed on the Exchange; nor does it take any responsibility for the financial or other soundness of the Mutual Fund, its Sponsors, its management or any Scheme of the Mutual Fund. Every person who desires to apply for or otherwise acquire any Units of the Mutual Fund may do so pursuant to independent inquiry, investigation and analysis and shall not have any claim against the Exchange whatsoever by reason of any loss which may be suffered by such person consequent to or in connection with such subscription /acquisition whether by reason of anything stated or omitted to be stated herein or any other reason whatsoever. DISCLAIMER OF BSE: “BSE Ltd. (“the Exchange”) has given vide its letter dated April 13, 2018 permission to HDFC Mutual Fund to use the Exchange’s name in this SID as one of the Stock Exchanges on which this Mutual Fund’s Units are proposed to be listed. The Exchange has scrutinized this SID for its limited internal purpose of deciding on the matter of granting the aforesaid permission to HDFC Mutual Fund. The Exchange does not in any manner:- i) warrant, certify or endorse the correctness or completeness of any of the contents of this SID; or ii) warrant that this Scheme’s units will be listed or will continue to be listed on the Exchange; or iii) take any responsibility for the financial or other soundness of this Mutual Fund, its promoters, its management or any Scheme or project of this Mutual Fund; and it should not for any reason be deemed or construed that this SID has been cleared or approved by the Exchange. Every person who desires to apply for or otherwise acquires any unit of HDFC Next 50 ETF of this Mutual Fund may do so pursuant to independent inquiry, investigation and analysis and shall not have any claim against the Exchange whatsoever by reason of any loss which may be suffered by such person consequent to or in connection with such subscription/ acquisition whether by reason of anything stated or omitted to be stated herein or any other reason whatsoever. DRAFT - HDFC NEXT 50 ETF - SID 2 TABLE OF CONTENTS Page No. Page No. Highlights / Summary of the Scheme .................... 4 l Policy regarding re-issue of repurchased units ... 41 I. INTRODUCTION l Restrictions on the right to freely retain or dispose A. Risk Factors ..................................................... 7 of units being offered ...................................... 42 B. Requirement of Minimum Investors B. ONGOING OFFER DETAILS in the Scheme ................................................. 10 l Ongoing Offer Period...................................... 43 C. Special Considerations .................................... 10 l Ongoing Price for subscription ......................... 43 D. Definitions ...................................................... 12 l Ongoing Price for redemption.......................... 44 E. Abbreviations .................................................. 16 l Cut off timing .................................................. 45 F. Due Diligence by the l Where can the applications for purchase / Asset Management Company .......................... 16 redemption / switches be submitted? ............... 46 G. Rationale and Product Differentiation ............... 17 l Minimum amount for purchase / II. INFORMATION ABOUT THE Scheme redemption / switches...................................... 46 A. Type of the Scheme ........................................ 20 l Minimum balance to be maintained ................ 47 B. What is the Investment Objective l Special Products available ............................... 47 of the Scheme? .............................................. 20 l Account Statements ......................................... 47 C. How will the Scheme allocate its assets? .......... 20 l Dividend ......................................................... 47 D. Where will the Scheme invest? ........................ 23 l Redemption ................................................... 47 E. What are the Investment Strategies? ................ 25 l Delay in payment of redemption / F. Fundamental Attributes ................................... 28 repurchase proceeds ....................................... 48 G. How will the Scheme Benchmark C. PERIODIC DISCLOSURES its Performance? ............................................ 29 l Net Asset Value ............................................... 49 H. Who manages the Scheme? ........................... 30 l Monthly Portfolio Disclosure ............................. 49 I. What are the Investment Restrictions? .............. 31 l Monthly Average Asset under J. How has the Scheme Performed? .................... 31 Management (Monthly AAUM) Disclosure ........

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