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FAQs
  • Who should invest in Mutual Funds?
  • What is Net Asset Value (NAV)?
  • What is Purchase Price?
  • What is Redemption Price?
  • What is Entry Load?
  • What is Exit Load?
  • What is an offer document?
  • Where can an Investor get application form?
  • What are the cut off timings?
  • What is my Current Value of Investment?
  • At what time is the NAV declared?
  • When will I receive my account statement if I make investment today?
  • I have not received my account statement or Dividend/Redemption Warrant?
  • What is the procedure for redemption?
  • What are the benefits of a systematic investment plan?
  • What is the Rupee Cost Averaging?
  • Can the redemption proceeds be directly credited to my bank account?
  • What are the documents to be submitted along with a purchase application?
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    Who should invest in Mutual Funds?

    Mutual Funds can meet the investment objectives of almost all types of investors. Younger investors who can take some risk while aiming for substantial growth of capital in the long term will find growth schemes (i.e. funds which invest in stocks) an ideal option

    Older investors who are risk-averse and prefer a steady income in the medium term can invest in income schemes (i.e. funds which invest in debt instruments). Investors in middle age can allocate their savings between income funds and growth funds and achieve both income and capital growth.Investors who want to benefit from regular savings, save a small sum every month, can use the Systematic Investment Plan

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    What is Net Asset Value (NAV)?

    Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date

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    What is Purchase Price?

    Is the price you pay when you invest in a scheme. Also called Offer Price. It may include a sales load.

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    What is Redemption Price?

    Is the price at which Open-Ended schemes repurchase their units and Close-Ended schemes redeem their units on maturity. Such prices are NAV related.

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    What is Entry Load?

    Is a charge collected by a scheme when it sells the units. Also called, 'Front-end' load or 'Sales Load'. Schemes that do not charge a load are called "No Load' schemes.

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    What is Exit Load?

    Is a charge collected by a scheme when it buys back the units from the unit-holders.Also called as "Repurchase Load"

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    What is an offer document?

    Offer Document
    The document containing the details of the new scheme that the AMC or sponsor prepares for and circulates to the prospective investors is called the Offer Document

    Importance for the Investors
    The Offer Document is the most important source of the information from the perspective of the prospective investor
    Contents of Offer Document
    The offer documents issued by mutual funds in India are required by SEBI to include the following information.
    Details of the Sponsor and the AMC
    Description of the Scheme and the investment objective/strategy
    Terms of Issue
    Historical Statistics
    Investor's Rights and Services
    Risk Factors
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    Where can an Investor get application form?

    The applications are usually available at all the Mutual Fund branch locations and the Registrar Branch locations in the locations where the Mutual fund operates. On request, the application could be sent by e-mail to the customer or by courier. The customer has to take a print out of the application form fill in the details and submit it at the nearest Investor Service Center


    Application forms for Principal Mutual Funds can be downloaded from this site click here.

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    What are the cut off timings?

    Cutoff timing is the time before which an investor has to submit / lodge his / her application form for the date of submmission / lodgement to be considered as the transaction date. For applications submitted / lodged after the cut off time the applicable transaction date is the next business day. Depending on the transaction date the NAV is applicable.

    Click here to know the current SEBI regulations on this.
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    What is my Current Value of Investments?

    The Current Value of Investment is the 'Market Value' of the Investment based on that day's NAV of the Investment in the invested Scheme - Plan of a Mutual Fund.

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    At what time is the NAV declared?
    On all business days, depending on the scheme type, NAV is declared in the evening on or before 9 p.m
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    When will I receive my account statement if I make investment today?

    Once you make an Investment with a selected Mutual Fund the Statement of Account should reach the Investor with in 3-4 days from the date transaction.

    Click here to know how you can track your application online.

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    I have not received my account statement or Dividend/Redemption Warrant?

    Once you make an Investment with a selected Mutual Fund the Statement of Account should reach the Investor with in 3-4 days from the date transaction. Where as in the case of Dividend and Redemption Warrants, the Warrants should reach the Investor with 10-12 days from the date of transaction.

    If the documents do not reach you, you can approach the nearest Investor Service Center or send an email to the customer care mail ID of the respective fund or call up the toll free number of the concerned Mutual Fund to find out the details regarding the delay in receiving the above mentioned documents.

    If you register for our 'online services' you could obtain all such details from this website.


    Click here to register for our online services
    Click here to send us online queries e.g. Dividend warrants not received, etc.
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    What is the procedure for Redemption ?

    The Investor needs to fill in the redemption application generally available on the foot of your account statement, which needs to be signed by all the account holders in case the mode of holding is "joint". In case the mode of holding is "any one or survivor", the application can be duly signed by any one of the account holders. The duly filled in application form is to be sent to the nearest Investor Service Center. The units shall be redeemed to you at the redemption price applicable for the transaction date on which your application was received at the Investor Service Center. In case your application is received after the cut-off time, the applicable transaction date would be the next business day.

    If you register for our online services , you could redeem your units electronically.

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    What are the benefits of a systematic investment plan?

    Systematic Investment Plan (SIP) is a simple, time-honored strategy designed to help investors accumulate wealth in a disciplined manner over the long-term and plan a better future for them. This disciplined approach to investing will provide you with the following benefits

  • Power of Compounding
  • Rupee Cost Averaging
  • Convenience

    Know more about SIP ( Systematic Investment Plan) online.Click here to know how !!!

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    What is the Rupee Cost Averaging?

    The rupee cost averaging is mainly not to produce sudden, dramatic profits but to generate sustained growth over the long term, despite short-term fluctuations in the market. Opting for a Systematic Investment Plan for a Mutual Fund Scheme can get the advantage of Rupee Cost Averaging.

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    Can the redemption proceeds be directly credited to my bank account?

    When an investor has an account in a designated direct credit bank for a particular Mutual Fund, based on a redemption request, the redemption proceeds can be credited directly to your bank account. Please note procedure for direct credit may vary from fund to fund.

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    What are the documents to be submitted along with a purchase application?

    The following documents are to be submitted along with the purchase application depending on the legal status of the applicant as mentioned in the application form.

    Every person shall quote his PAN in all investments  irrespective of amount involved for purchase of its units, including fresh/ additional purchase, switch, Systematic Investment / Transfer Provide copy of PAN card, or PAN allotment letter or any intimation from Income tax Department quoting PAN as proof of PAN. Every person shall submit  copy of form 60/61 if he does not have a PAN for all investments of Rs. 50,000 or more to a Mutual Fund for purchase of its units, including fresh/ additional purchase, switch, Systematic Investment / Transfer of Rs. 50,000 or more to a Mutual Fund for purchase of its units.

    COMPANIES / BODY CORPORATE :
  • Certified Copy of the Board Resolution authorizing investment in Mutual Fund
  • List Containing names and specimen signatures of the signatories, authorized as per the board resolution.
  • Copy of the Memorandum and Articles of Association of the company duly attested by the Company Secretary or
        Directors.
  • PARTNERSHIP FIRMS :
  • Copy of the partnership deed duly attested by any one of the partners.
  • Signatures of the partners attested by their bankers.
  • Copy of the resolution signed by the partners, authorizing investments and disinvestments in the Mutual Fund.
  • TRUST :
  • Copy of the trust deed attested by the trustees / Secretary.
  • Copy of the resolution passed by the trustees
  • List containing name and specimen signatures of the trustees authorized as per the resolution duly attested
        by bankers / secretary of the Trust.
  • CO-OPERATIVE SOCIETIES :
  • Copy of the registration certificate attested by the secretary of the society.
  • Copy of the Resolution duly attested by the secretary / office bearer of the society.
  • List of members / authorized signatories and their signatures, attested by the bankers.
  • NON-RESIDENT-INVESTORS :

    On Repatriation Basis :

    In case Indian rupee drafts are purchased abroad or payment is made from debit to NRE / FCNR account, an account debit certificate from the bank issuing the draft confirming the debit.

    On Non-Repatriation Basis :

    In case Indian rupee drafts are purchased abroad or from FCNR / NRE account an account debit certificate from the bank issuing the draft confirming the debit shall be enclosed along with the application form

    For subscriptions amounts remitted out of debit to the FCNR / NRE account the Application form must be accompanied with a Foreign Inward Remittance Certificate (FIRC), issued by the investors bankers

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