IIFL Global Equity Fund (An open ended Fund of Funds Scheme) Offer of units at Rs. 10/- each during the New Fund Offer This product is suitable for investors who are seeking* Long Term Capital Growth Investments in Overseas Mutual Fund Schemes. High Risk (Brown); *Investors should consult their financial advisors if in doubt about whether the product is suitable for them. Risk is represented in following colours: (BLUE) investors (YELLOW) investors (BROWN) investors understand understand that their understand that their that their principal will be at high principal will be at low risk principal will be at medium risk risk New Fund Offer Opens on: ______________, 2014 New Fund Offer Closes on: ____________, 2014 Scheme re-opens for Continuous Sale and Repurchase on or before five business days of allotment. Mutual Fund: IIFL MUTUAL FUND Asset Management Company: India Infoline Asset Management Company Ltd. Trustee Company: India Infoline Trustee Company Ltd. Registered Office : IIFL Centre, 3rd floor Annex, Kamala City, S.B. Marg, Lower Parel, Mumbai – 400 013 Tel No.: 022 4249 9000 Fax No.: 022 2495 4310 Website: www.iiflmf.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 (SID). The SID 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 SID after the date of this Document from the Mutual Fund / Investor Service Centres / Website / Distributors or Brokers. The investors are advised to refer to the Statement of Additional Information (SAI) for details of IIFL Mutual Fund, Tax and Legal issues and general information on www.iiflmf.com SAI is incorporated by reference (is legally a part of the SID). For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website. The SID should be read in conjunction with the SAI and not in isolation. This SID is dated __________________, 2014. Table of Contents HIGHLIGHTS/SUMMARY OF THE SCHEME .................................................................................................................. 3 I. INTRODUCTION ........................................................................................................................................................ 6 A. RISK FACTORS ............................................................................................................................................................ 6 B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME ................................................................................... 12 D. DEFINITIONS ............................................................................................................................................................ 14 II. INFORMATION ABOUT THE SCHEME .................................................................................................................... 19 A. TYPE OF SCHEME ..................................................................................................................................................... 19 B. INVESTMENT OBJECTIVE ......................................................................................................................................... 19 C. ASSET ALLOCATION ................................................................................................................................................. 19 D. INVESTMENT BY THE SCHEME ................................................................................................................................ 20 E. INVESTMENT STRATEGIES ....................................................................................................................................... 22 F. FUNDAMENTAL ATTRIBUTES ................................................................................................................................... 24 G. BENCHMARK INDEX ................................................................................................................................................ 24 H. FUND MANAGER OF THE SCHEME .......................................................................................................................... 24 Mr. Manish Bandi is also a Fund Manager for IIFL NIFTY ETF & IIFL Dividend Opportunities Index Fund. ................. 25 I. INVESTMENT RESTRICTIONS .................................................................................................................................... 25 J. SCHEME PERFORMANCE .......................................................................................................................................... 27 III UNITS AND OFFER ................................................................................................................................................. 28 A. NEW FUND OFFER (NFO)s ....................................................................................................................................... 28 B. ONGOING OFFER DETAILS ....................................................................................................................................... 34 C. PERIODIC DISCLOSURES .......................................................................................................................................... 48 D. COMPUTATION OF NAV .......................................................................................................................................... 50 IV. FEES AND EXPENSES ............................................................................................................................................. 50 A. NEW FUND OFFER (NFO) EXPENSES........................................................................................................................ 50 B. ANNUAL SCHEME RECURRING EXPENSES ............................................................................................................... 50 V. RIGHTS OF UNITHOLDERS ..................................................................................................................................... 53 VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY ........................................................................................................................................................................................ 53 2 HIGHLIGHTS/SUMMARY OF THE SCHEME Name of the IIFL Global Equity Fund Schemes Type of the Scheme An open ended Fund of Funds Scheme. To provide long term appreciation by investing in units of overseas mutual fund Investment Objective schemes which have the mandate to invest globally. The Scheme will offer Units for Purchase and Redemption at NAV related prices on every Business Day on an ongoing basis, commencing not later than 5 working days Liquidity from the allotment of units of the scheme. The Mutual Fund will dispatch the Redemption proceeds not later than 10 business days from the acceptance of the Redemption request. I. PLAN: Regular Plan and Direct Plan II. OPTION The Scheme has following Options under each of the above Plans: Growth Option: This option is suitable for investors who are not looking for current income but who invest only with the intention of capital appreciation. Dividend Option: This option is suitable for investors seeking income through dividend declared by the Scheme. Under this Option, the Scheme will endeavor to declare dividends from time to time, subject to availability of distributable surplus. Plans and Options for Investment Bonus Option: The Dividend Option will have facility of Payout & Sweep. o In cases where the investor fails to opt for a particular Option at the time of investment, the default Option will be Growth. If the investor chooses Dividend Option and fails to mention facility then the default facility will be Payout. If Dividend payable under Dividend Payout option is equal to or less than Rs. 500/- then the Dividend would be compulsorily reinvested in the option of the Scheme. The Regular Plan and Direct Plan including all options there under will have a common portfolio of investments. Benchmark MSCI All Country World Index The NAV will be calculated by the AMC for each Business Day. Since the Scheme is a Fund of Funds Scheme which will predominantly invest in overseas mutual fund schemes, the NAV of the Scheme will be calculated and based Transparency/NAV on the NAV of such underlying overseas schemes; disclosure Accordingly, pursuant to SEBI Circular No. SEBI/IMD/CIR No.5/96576/2007 dated June 25, 2007 (applicable to Fund of Funds Scheme) the NAV of the scheme will be uploaded on AMFI’s and IIFL Mutual Fund’s website with one business day time lag. The NAV will be uploaded by 10 a.m. of next business day and in case of delay beyond 10 a.m. the reason for delay would be explained to AMFI & SEBI in writing and the Mutual Fund shall issue a press release providing reasons and explaining when