STATEMENT of ADDITIONAL INFORMATION (SAI) Mutual Fund
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STATEMENT OF ADDITIONAL INFORMATION (SAI) Mutual Fund This Statement of Additional Information (SAI) contains details of BOI AXA Mutual Fund, its constitution, and certain tax, legal and general information. It is incorporated by reference (is legally part of all the Scheme Information Document of all the Schemes of BOI AXA Mutual Fund). This Statement of Additional Information is dated June 28, 2021. Mutual Fund Asset Management Company Trustee Company BOI AXA Mutual Fund BOI AXA Investment Managers Private Limited BOI AXA Trustee Services Private Limited B/204, Tower 1, B/204, Tower 1, B/204, Tower 1, Peninsula Corporate Park, Peninsula Corporate Park, Peninsula Corporate Park, Ganpatrao Kadam Marg, Ganpatrao Kadam Marg, Ganpatrao Kadam Marg, Lower Parel, Mumbai 400013. Lower Parel, Mumbai 400013. Lower Parel, Mumbai 400013. www.boiaxamf.in CIN - U65900MH2007FTC173079 CIN - U67190MH2007FTC173080 www.boiaxamf.in www.boiaxamf.in PRODUCT LABEL Scheme This product is suitable for investors who are seeking*: Risk-o-meter is based on the scheme portfolio as on May 31, 2021 BOI AXA Overnight Fund • Income over short term with low risk and high liquidity Moderately (An open ended debt scheme investing in • Investments in overnight securities having residual High overnight securities) maturity of 1 business day. Moderate High Low to Moderate V er y High BOI AXA Arbitrage Fund • Income over short to medium term ow (An open ended scheme investing in arbitrage • Income through arbitrage opportunities between cash and L opportunities) derivative segments of the equity market and arbitrage opportunities within the derivative segment RISKOMETER Investors understand that their principal will be at low risk BOI AXA Liquid Fund • Income over short term. Moderately (An Open Ended Liquid Scheme) • Investment in Debt and Money Market Instruments. Moderate High High Low to Moderate V er y High BOI AXA Ultra Short Duration Fund • Regular income over Short to Medium term. ow (An open ended ultra-short term debt scheme • Investment in Debt & Money Market instruments such L investing in instruments with Macaulay duration that the Macaulay duration of the portfolio is between 3 of the portfolio between 3 months and 6 months and 6 months RISKOMETER months) Investors understand that their principal will be at low to moderate risk *Investor should consult their financial advisor if they are not clear about the suitability of the product. PRODUCT LABEL Scheme This product is suitable for investors who are seeking*: Risk-o-meter is based on the scheme portfolio as on May 31, 2021 BOI AXA Short Term Income Fund • Regular income over short to medium term. Moderately (An open ended short term debt scheme • Investment in Debt & Money Market instruments such that High investing in instruments with Macaulay duration the Macaulay duration of the portfolio is between 1 year - 3 Moderate of the portfolio between 1 year and 3 years) years High Low to BOI AXA Conservative Hybrid Fund • Long term capital appreciation and regular income. Moderate V (An open ended hybrid scheme investing • Investment in equity and equity related securities (10% - er predominantly in debt instruments) 25%) as well as fixed income securities (Debt / Money y High Market Instruments/ Govt. Securities). ow L BOI AXA Equity Debt Rebalancer Fund • Long term capital appreciation RISKOMETER (An Open Ended Dynamic Asset Allocation Fund) • Dynamic asset allocation between equity and fixed income based on equity market valuations Investors understand that their principal will be at moderate risk BOI AXA Credit Risk Fund • Long term capital appreciation (An open ended debt scheme predominantly • Investment primarily in corporate debt securities with investing in AA and below rated corporate bonds medium to long term maturities across the credit (excluding AA+ rated corporate bonds) spectrum within the universe of investment grade rating BOI AXA Mid & Small Cap Equity & Debt Fund • Long term capital appreciation and income distribution (An open ended hybrid scheme investing • Equity fund investing in Mid & Small Cap equity and equity predominantly in equity and equity related related securities (not part of the top 100 stocks by market instruments) capitalization) as well as fixed income securities. BOI AXA Small Cap Fund • Long term capital appreciation (An open ended equity scheme predominantly • Investment predominantly in equity & equity related investing in small cap stocks) instruments of Small Cap companies. BOI AXA Large & Mid Cap Equity Fund • Long-term capital growth. (An open ended equity scheme investing in both • Investment in equity and equity-related securities including Moderately large cap and mid cap stocks) equity derivatives of companies across market capitalisations. Moderate High High BOI AXA Tax Advantage Fund • Long-term capital growth. Low to (An open ended equity linked saving scheme • Investment in equity and equity-related securities of Moderate with a statutory lock in of 3 years and tax benefit) companies across market capitalisations. V er BOI AXA Flexi Cap Fund** • Capital appreciation over medium to long term y High ow (Formerly BOI AXA MultiCap Fund) • Investment in a diversified portfolio consisting of equity L (An open ended dynamic equity scheme and equity related instruments across market capitalization. investing across large cap, mid cap, small cap RISKOMETER stocks) **Fundamental Attributes and Name of the Investors understand that their principal will be at fund has been changed from BOI AXA Multi Cap very high risk Fund to BOI AXA Flexi Cap Fund w.e.f. February 03, 2021. BOI AXA Manufacturing & Infrastructure Fund • Long-term capital growth. (An open ended equity scheme investing in • Investment in equity and equity-related securities of manufacturing and infrastructure sectors) companies engaged in manufacturing & infrastructure related sectors. BOI AXA Midcap Tax Fund - Series 1 • Capital appreciation over a period of 10 years (A 10 Year Close-ended Equity Linked Savings • Investment in equity and equity related instruments of mid Scheme) cap companies along with income tax benefit u/s 80C of the Income Tax Act, 1961 BOI AXA Midcap Tax Fund - Series 2 • Capital appreciation over a period of 10 years (A 10 Year Close-ended Equity Linked Savings • Investment in equity and equity related instruments of mid Scheme) cap companies along with income tax benefit u/s 80C of the Income Tax Act, 1961 *Investor should consult their financial advisor if they are not clear about the suitability of the product. Note on Risk-o-meters: Please note that the above risk-o-meter is as per the product labelling of the scheme available as on the date of this communication/ disclosure. STATEMENT OF ADDITIONAL INFORMATION (SAI) Index I. DEFINITIONS AND ABBREVIATION ................................................................. 2 C. Equity and Equity Related Securities ..................................................... 31 A. Definitions ............................................................................................... 2 D. Inter-scheme transfers .......................................................................... 34 B. Abbreviations ........................................................................................... 4 X. TAX PROVISIONS IN RESPECT INVESTMENTS IN MUTUAL FUNDS .......... 35 C. Interpretations ......................................................................................... 4 XI. LEGAL INFORMATION .................................................................................... 39 II. INFORMATION ABOUT SPONSOR, AMC AND TRUSTEE COMPANY .............. 5 A. “On behalf of Minor” Accounts, Minor attaining Majority - Status Change and Change in Guardian of a Minor ...................................................... 39 A. Constitution of the Mutual Fund .............................................................. 5 B. Nomination Facility ................................................................................ 39 B. Sponsor ............................................................................................... 5 C. Requirements under Prevention of Money Laundering Act and KYC C. The Trustee .............................................................................................. 5 Requirements ........................................................................................ 40 a. Brief details about the Trustee Company ........................................ 5 D. Transmission of Units ............................................................................ 41 b. Details of Trustee Directors ............................................................ 5 E. Pledge of Units ...................................................................................... 42 c. Duties & Responsibilities of Trustees ............................................. 7 F. Investor Protection ................................................................................ 42 d. Summary of the Substantive Provisions of the Trust Deed ............ 8 G. Signature Mismatches .......................................................................... 42 e. Trustee - Fees and Expenses ......................................................... 9 H. Maturity of the Scheme ........................................................................ 42 III. ASSET MANAGEMENT COMPANY ................................................................ 10 I. Lien / Set - off .....................................................................................