April 30, Dear Valued Unitholder,

Transcription

1 April 30, 2018 Dear Valued Unitholder, Re: Merger of Aditya Birla Sun Life India Opportunities Fund, an Open ended Growth Scheme into Aditya Birla Sun Life Digital India Fund, an open ended equity scheme investing in the Technology, Telecom, Media, Entertainment and other related ancillary sectors (previously known as Aditya Birla Sun Life New Millennium Fund) Thank you for choosing Aditya Birla Sun Life Mutual Fund ( the Fund ) as your investment partner. We truly appreciate your trust in us. We would like to inform you that in accordance with SEBI circular no. SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 06, 2017, the Board of Directors of Aditya Birla Sun Life AMC Limited ( ABSLAMC ), Investment Manager for Aditya Birla Sun Life Mutual Fund, and Aditya Birla Sun Life Trustee Private Limited, Trustees to Aditya Birla Sun Life Mutual Fund have approved the merger of Aditya Birla Sun Life India Opportunities Fund (hereinafter referred to as Merging Scheme ) into Aditya Birla Sun Life Digital India Fund (hereinafter referred to as Surviving Scheme ). This merger has been approved by the Board of Directors of Aditya Birla Sun Life AMC Limited (ABSLAMC) and Aditya Birla Sun Life Trustee Private Limited. The Securities and Exchange Board of India has communicated its no-objection for the above changes vide its letter no. IMD/DF3/OW/P/2018/7315/1 dated March 08, The Merger shall be effective on June 04, 2018 (Effective Date). The scheme features and latest portfolios of Merging Scheme and Surviving Scheme are given in Annexure I & II respectively. For further details on both Merging and Surviving Schemes, Unitholders are requested to refer Scheme Information Document and Key Information Memorandum which is available on our website For Performance of Merging Scheme and Surviving Scheme please refer Annexure III. Further, for details of Non-Performing Assets (NPAs) and illiquid assets to net assets please refer Annexure IV. Pursuant to SEBI Circular No. SEBI/MFD/CIR No. 05/12031/03 dated June 23, 2003 read with SEBI Circular No. Cir/IMD/ DF/15/2010 dated October 22, 2010, merger of Aditya Birla Sun Life India Opportunities Fund into Aditya Birla Sun Life Digital India Fund is considered as change in the fundamental attributes of Aditya Birla Sun Life India Opportunities Fund and consequently, as per Regulation 18 (15A) of the SEBI (Mutual Funds) Regulations, 1996 any change in fundamental attributes can be carried out after a written communication is sent to all the unitholders of Merging Scheme, giving them an option to redeem/switch their investments at the prevailing Net Asset Value, without payment of any exit load. Accordingly, the existing unitholders (i.e. whose names appear in the register of unitholders as on close of business hours on April 30, 2018) under the Merging scheme are hereby given an option to exit, i.e. either redeem their investments or switch their investments to any other schemes of Aditya Birla Sun Life Mutual Fund, within the 30 days exit period starting from May 02, 2018 till June 01, 2018 both days inclusive and upto 3.00 pm on June 01, 2018) at Applicable NAV, without payment of any exit load. The Exit Option can be exercised during the Exit Option Period by submitting a valid redemption / switch-out request at any Official Point of Acceptance of the Fund. For list of Official Points of Acceptance, please visit our website com. Unit holders who hold the units of Merging Scheme in electronic (demat) mode need to submit the redemption request to their Depository Participant. All the valid applications for redemptions/switch-outs received under the scheme shall be processed at Applicable NAV of the day of receipt of such redemption / switch request, without payment of any exit load, provided the same is received during the exit period mentioned above. Unitholders who have pledged or encumbered their units will not have the option to exit unless they procure a release of their pledges / encumbrances prior to the submission of redemption / switch requests. Unitholders should ensure that their change in address or bank details are updated in records of Aditya Birla Sun Life Mutual Fund as required by them, prior to exercising the exit option for redemption of units. Unit holders holding Units in dematerialized form may approach their Depository Participant for such changes. In case units have been frozen / locked pursuant to an order of a government authority or a court, such exit option can be executed only after the freeze / lock order is vacated / revoked within the period specified above. The redemption proceeds shall be dispatched within 10 business days of receipt of valid redemption request to those unitholders who choose to exercise their exit option. 1

2 The requirement of minimum application amount for fresh subscription of units as applicable for the Surviving Scheme shall not be applicable in respect of units allotted to the unitholders of the Merging Scheme on account of merger. Consequently, upon the merger of schemes, the unitholders shall be allotted units under the corresponding Plan/Option/Facility under Surviving Scheme as per matrix provided below: Units held under following Option / Facility in Regular / Direct Plan of the Merging scheme Dividend Payout Dividend Reinvestment Dividend Sweep Facility Growth Units shall be allotted under following Option / Facility in Regular / Direct Plan in Surviving scheme Dividend Payout Dividend Reinvestment Dividend Sweep Facility This offer to exit from Merging Scheme is merely an option and not a compulsion. Unitholders who do not exercise the exit option on or before June 01, 2018 would be deemed to have consented to the proposed merger and will be allotted units under the corresponding option of the Surviving Schemes at the last available applicable Net Asset Value before the Effective Date and fresh Account Statement reflecting units in Surviving Scheme will be issued to you. Growth Basis of allotment of units in Surviving Scheme pursuant to merger is explained as follows: Aditya Birla Sun Life India Opportunities Fund Assumed NAV on Effective Date Units Held by Resident Investor Valuation of holding of units on Record date Securities Transaction 0.001% Net Amount to be invested in Aditya Birla Sun Life Digital India Fund Aditya Birla Sun Life Digital India Fund Assumed NAV on Record Date Units to be allotted on merger Valuation of holding of units on Effective date (Rs.) Nos. (Rs.) (Rs.) (Rs.) (Rs.) Nos. (Rs.) (A) (B) (A*B)=C D E F (E/F)=G (F*G)=H , ,50, Nil* 1,50, (1,50,000/40) *Securities Transaction Tax w.r.t. units of Merging scheme, if any, on account of merger would be borne by ABSLAMC. 1,50, The Finance Act, 2016 amended Section 47 so as to include clause (xix) which provides that any transfer of unit or units by a unit holder held by him in the Consolidating Plan of a mutual fund scheme, will not be treated as transfer, if the transfer is made in consideration of the allotment to him of unit or units in the Consolidated Plan of that mutual fund scheme under the process of consolidation of the schemes of mutual fund in accordance with the SEBI (Mutual Funds) Regulation, 1996 and accordingly capital gains will not apply. As per the amendments, allotment of units in Surviving Scheme, pursuant to merger, to Unit holders of Merging Scheme who decide to continue will not be considered as redemption of Units in Merging Scheme and will not result in short term / long term capital gain / loss in the hands of the unit holders. Further, the cost of acquisition of units allotted in Surviving Plan (Consolidated Plan) pursuant to merger or consolidation of plans of a mutual fund scheme will be the cost of acquisition of units in Transferor Plan (Consolidating Plan). However redemption of units from Merging Scheme and/or switch-out of units of Merging Scheme to any other schemes of the Fund during exit window shall be considered as redemption in Merging Scheme and will result in short term / long term capital gain / loss in the hands of the Unit holders depending on the period of holding of the investment. Further there would be no Securities Transaction Tax on allotment of units in Surviving Scheme pursuant to merger to unit holder who decide to continue. Unitholders are required to check the relevant Income Tax provisions as may be applicable to them from time to time. Brief note giving tax implication on merger of schemes are given in Annexure V Following provisions would be applicable Post-merger: Post completion of the proposed Merger, i.e. from the Effective Date, the revised name of the Surviving Scheme will be Aditya Birla Sun Life Digital India Fund, an open ended equity scheme investing in the Technology, Telecom, Media, Entertainment and other related ancillary sectors. The date of allotment at the time of subscription in Merging Scheme shall be considered as the allotment date for the purpose of applicability of exit load period at the time of redemption / switch out of such units in Surviving scheme. 2

3 In case the lien is marked on the units held in the Merging Scheme and such unitholder decides to continue to remain invested (i.e. does not submit redemption / switch-out request during exit option period), then the units allotted in Surviving Scheme pursuant to merger will also be automatically subject to lien in Surviving Scheme post-merger In case of unitholders who had registered Systematic Investment Plan (SIP) and decide to continue to remain invested then such registration for SIP will be processed under the Surviving Scheme for balance tenure / installments as per terms and conditions of the respective special products subsequent to merger. However, Unitholders who have opted for Dividend Sweep Facility (DSF) from Aditya Birla Sun Life Digital India Fund to Aditya Birla Sun Life India Opportunities Fund the same will stand cancelled from the date of merger of the scheme. Unitholders who have availed Century SIP under Merging Scheme and wish to avail of the exit option should note that, as per terms and conditions of Century SIP, discontinuation of Century SIP within 3 years from the commencement of the same or any Redemption / switch-out (fully or partly) of units allotted under Century SIP before the completion of the Century SIP tenure shall result in Cessation of Insurance Cover offered under the facility. Unitholders availing Century SIP under the Scheme can contact us on / (Toll Free) or write in at care.mutualfunds@adityabirlacapital.com or visit your nearest ISCs or consult their financial advisors for any queries regarding their investments in Century SIP. Please note that in absence of any communication in writing as above, Century SIP shall continue, and in case of Merging Scheme, shall be automatically re-registered into Surviving Scheme, for remaining installments / tenure, as per the terms and conditions of the Century SIP as availed by the Unitholder. In case of Unitholders who are holding units of Merging Scheme in electronic (demat) mode and who don t submit redemption / switch-out request during the exit option period, such units of Merging Scheme will be extinguished from their demat account and proportionate units of the Surviving Scheme will be credited to their demat account after the Effective Date (refer Annexure VI for ISIN details). The details of unclaimed redemption and dividend relating to Aditya Birla Sun Life India Opportunities Fund as on March 31, 2018 is enclosed (refer Annexure VII for details). Unitholders should note that after the merger, amounts relating to unclaimed redemption will be transferred in the name of the Surviving scheme i.e. Aditya Birla Sun Life Digital India Fund Cut off timing for NAV applicability for redemption and switch-out: In respect of valid redemption/switch out requests received at a designated Official Points of Acceptance of Transaction of the Fund upto 3.00 p.m. on a Business Day, the NAV of the day of receipt of application shall be applicable and in respect of application received after 3.00 p.m., the NAV of the next Business Day will be applicable. CONTACT US If you have any further queries regarding your investments you can Write in at care.mutualfunds@adityabirlacapital.com Visit your nearest Investor Service Centres (ISCs). To locate your nearest ISC we request you to visit Thanking you once again and looking forward to a long and enduring relationship. For Aditya Birla Sun Life AMC Ltd. (formerly known as Birla Sun Life Asset Management Company Limited) (Investment Manager for Aditya Birla Sun Life Mutual Fund) sd/- Authorised Signatory 3

4 Annexure I The scheme features of Aditya Birla Sun Life India Opportunities Fund (Merging Scheme) and Aditya Birla Sun Life Digital India Fund (Surviving Scheme) are as follows: Name of the Scheme Aditya Birla Sun Life India Opportunities Fund Aditya Birla Sun Life Digital India Fund Type of the Scheme An Open ended Growth Scheme An open ended equity scheme investing in the Technology, Telecom, Media, Entertainment and other related ancillary sectors. Suitable for investors who are seeking * Long term capital growth investments in equity and equity related securities of companies that seek to leverage India s competitive advantages in global outsourcing theme Long term capital growth Investments in equity and equity related securities with a focus on investing in Technology, Telecom, Media, Entertainment and other related ancillary sectors. *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Investment Objective Asset allocation and Investment Pattern The objective of the scheme is to achieve superior longterm growth of capital by investing in shares of companies that do one or more of the following: 1. Leverage India s intellectual capital for providing services, research and creative inputs. 2. Seek to use current and impending changes in patent laws / import tariffs / quotas to supply goods and services. 3. Leverage India s lower labour costs for providing services and manufactured goods. 4. Leverage India s large population of English speaking people for providing services. Under normal circumstances, the asset allocation pattern of the scheme shall be as under: (% age of investible corpus) Instrument Equity and Equity related instruments Cash, Money Market and Short term debt Instruments Asset Allocation Risk Profile 70%-100% High 0-30% Low The scheme may also invest upto 50% of the portfolio (i.e. net assets including cash) in such derivative instruments as may be introduced from time to time subject to framework specified by SEBI, for the purpose of hedging and portfolio balancing and other uses as may be permitted under SEBI Regulations. Under normal circumstances the scheme shall not have an exposure of more than 15% of its net assets in foreign securities. However, the AMC with a view to protecting the interests of the investors, may increase exposure in foreign securities as deemed fit from time to time. The primary investment objective of the scheme is to generate long term growth of capital, through a portfolio with a target allocation of 100% equity, focusing on investing in technology and technology dependent companies, hardware, peripherals and components, software, telecom, media, internet and e-commerce and other technology enabled companies. The secondary objective is income generation and distribution of dividend. Under normal circumstances, the asset allocation pattern of the scheme shall be as under: (% age of investible corpus) Instrument Equity & Equity Related Instruments Debt & Money Markets instruments(including securitized debt) Target Allocation Allocation Range 100% 80%-100% 0% 0%-20% The Fund Manager will review the portfolio for adherence with the above asset allocation patterns and rebalance them within 30 days to conform to the above limits. From time to time it is possible that the portfolios may hold cash. The Scheme may also enter into repurchase and reverse repurchase obligations in all securities held by them as per the guidelines and regulations applicable to such transactions. The Scheme also intends to participate in derivatives trading within the equity component of their portfolios. The scheme intends to use derivatives instruments like options on stocks and stock indices, interest rate swaps, forward rate agreements or such other derivative instruments as may be introduced from time to time subject to framework specified by SEBI, for the purpose of hedging, portfolio balancing and other permitted usages as provided under the regulations 4

5 Name of the Scheme Aditya Birla Sun Life India Opportunities Fund Aditya Birla Sun Life Digital India Fund and guidelines. The value of derivative contracts outstanding will be limited to 50% of net assets of the scheme. RBI has permitted Mutual Funds to participate in Interest Rate Swaps and Forward Rate Agreements. SEBI has also permitted trading of interest rate derivatives through stock exchanges. The scheme may also trade in these instruments. The scheme may invest upto 25% of its net assets in ADRs/GDRs and equities of listed overseas companies, which in the judgment of the Asset Management Company are eligible for investment as part of the scheme s portfolio and is consistent with the investment strategy, subject to the investment restrictions specified by SEBI / RBI from time to time. The Scheme also reserve the right to invest in newer investment products subject to approval of the Trustee Company and in compliance with the applicable SEBI Regulations. Investments may be made in listed or unlisted instruments. Listed securities may be listed on any of the recognised Indian stock exchanges including the National Stock Exchange and the OTCEI. Investments may be made as secondary market purchases, initial public offers, private placements, negotiated investments, rights offers, etc. The Mutual Fund under each Scheme may invest in nonpublicly offered debt securities (including convertible securities). The portfolio invested in each type of security will vary in accordance with economic conditions, the general level of stock prices, interest rates and other relevant considerations, including the risks associated with each investment. The Scheme will, in order to reduce the risks associated with any one security, utilize a variety of investments, performance will depend on the Asset Management Company s ability to assess accurately and react to changing market conditions. Not more than 5% of the net assets of each Scheme may be invested in equity and equity-related securities that are not listed on any stock exchange (including the OTCEI). Any such investments will only be made if the Asset Management Company believes that such securities may be listed within a two-year period. This policy, however, is not applicable to each Scheme s acquisition of equity and equity-related securities in initial public offerings that at the time of acquisition are not yet either listed or quoted on any stock exchange, but pursuant to the terms of such initial public offering will be so listed. The Mutual Fund under each Scheme, will not invest more than 10% of its net assets in the debt (including non-publicly offered debt securities) and money market securities of any one issuer excluding call money. Upto 5% of the net assets of each scheme may be invested in unlisted equity and equity-related securities as stated in the previous paragraph. Further, since a significant section of the debt market consists of nonpublicly offered debt securities, each Scheme could invest upto 20% of its net assets (i.e. its entire allocation to debt and money market securities) in non-publicly offered debt securities. 5

6 Name of the Scheme Aditya Birla Sun Life India Opportunities Fund Aditya Birla Sun Life Digital India Fund Investment Strategy Investment Strategy would focus on achieving superior risk adjusted returns by investing in attractively priced shares of companies that are poised for rapid growth in Revenues and Profits. These companies would fall into two broad categories. One set of investment opportunities includes information technology (IT) and IT-related companies, media, telecom, pharmaceutical and bio-technology companies. These companies use a combination of intellectual capital and lower labour costs to deliver high quality and low cost solutions. The second set of companies where the scheme would invest will come from sectors that are not directly related to IT and related companies. So far, we have seen India s low cost and intellectual capital being exploited in the field of services and pharmaceutical research. We believe India is now ready to play an increasingly important role in exports of manufactured goods like auto ancillaries, generic & bulk pharmaceuticals and textiles. These represent large business opportunities where India has medium-tolong term competitive advantage. The key criteria for evaluation would be whether foreign exchange earnings form a material portion of revenue and exports and is the key thrust area for future growth. Thus, the scheme aims to be a vehicle for investing in India s role in the Global Outsourcing Theme. Stock Selection Strategy The scheme would invest a substantial portion of its investible assets (over 65%) in the investment universe as defined above. In order to diversify the portfolio, the fund manager may invest upto 30% in stocks which other than as defined in the investment universe above. A small portion of the portfolio may be kept in call and money market instruments in order to meet the liquidity needs. The investment emphasis of the scheme would be on identifying companies with sound corporate managements and prospects of good future growth. Past performance will also be a major consideration. Essentially, the focus would be on long-term fundamentally driven values. However, short-term opportunities would also be seized, provided they are supported by underlying values. As part of the investment strategy, scheme will book profits regularly to take advantage of the volatility in the market. In accordance with the proviso to clause 10 of the Schedule VII to SEBI Regulations, the scrip wise limit of 10% is not applicable for investments in case of sector specific schemes. The upper ceiling on investments in case of the schemes shall be the weightage of the scrip in respective benchmark index or 10% of the NAV of the scheme whichever is higher. Notwithstanding the foregoing investment policies for the scheme, for temporary defensive purposes (e.g., during periods in which the Asset Management Company believes changes in the securities market or economic or other conditions warrant), the scheme may invest in Indian Government T-Bills and hold cash or cash equivalents and other money market instruments. The Trustee of the Mutual Fund may from time to time alter these limitations in conformity with the SEBI (MF) Regulations, 1996 and other guidelines or notifications that may be issued by SEBI. The scheme aims to generate returns by investing in technology and technology dependent companies which includes: software services, products, BPO, hardware, internet and e-commerce, media and entertainment, telecommunication services and equipment s and technology enabled companies. The scheme will follow a bottom-up approach to stock picking, adopting a blend of value and growth style of investing. The investment emphasis of the scheme will be to identify and invest in companies with robust business model, strong competitive position and managed by quality management. Portfolio Turnover The scheme has no explicit constraints either to maintain or limit the portfolio turnover. Portfolio turnover will depend upon the circumstances prevalent at any time and would also depend on the extent of volatility in the market and inflows/outflows in the scheme. The Fund Manager will however endeavour to maintain a low portfolio turnover rate. 6

7 Name of the Scheme Aditya Birla Sun Life India Opportunities Fund Aditya Birla Sun Life Digital India Fund Portfolio turnover The scheme has no explicit constraints either to maintain or limit the portfolio turnover. Portfolio turnover will depend upon the circumstances prevalent at any time and would also depend on the extent of volatility in the market. A higher churning to the portfolio could attract high transaction costs of the nature of brokerage; demat charges, stamp duty, custodian transaction charges, etc. Benchmark Nifty500 S&P BSE Teck Inception date December 27, 1999 January 15, 2000 Entry Load Exit Load Recurring Expenses Fund Manager For redemption/switch out of units within 365 days from the date of allotment: 1.00% of applicable NAV Nil As per Regulation 52(6)(c) of SEBI (MF) Regulations, the total expenses of the Schemes, including Investment Management and Advisory Fees, shall be subject to following limits as specified below: First Rs. 100 Crs Next Rs. 300 Crs Next Rs. 300 Crs Over Rs. 700 Crs 2.50% 2.25% 2.00% 1.75% In addition to total expense permissible within limits of Regulation 52(6)(c)(i) of SEBI (MF) Regulations as above, the AMC may charge the following to the scheme in terms of Regulation 52(6A) of SEBI (MF) Regulations. (a) Additional expenses not exceeding of 0.30% of daily net assets may be charged to the Scheme, if the new inflows from beyond top 30 cities* are at least (i) 30% of gross new inflows in the scheme or (ii) 15% of the average assets under management (year to date) of the scheme, whichever is higher. In case inflows from beyond such cities is less than the higher of (i) or (ii) mentioned above, such additional expense on daily net assets of the scheme shall be charged on proportionate basis in accordance with SEBI Circular no. CIR/IMD/DF/21/2012 dated September 13, The expense so charged shall be utilised for distribution expenses incurred for bringing inflows from such cities. However, the amount incurred as expense on account of inflows from such cities shall be credited back to the scheme in case the said inflows are redeemed within a period of one year from the date of investment. *Beyond Top 30 (B30) cities shall mean beyond top 30 cities based on Association of Mutual Funds in India (AMFI) data on AUM by Geography - Consolidated Data for Mutual Fund Industry as at the end of the previous financial year. (b) Brokerage and transaction costs incurred for the execution of trades and included in the cost of investment, not exceeding 0.12 per cent of the value of trades in case of cash market transactions and 0.05 per cent of the value of trades in case of derivatives transactions. Thus, in terms of SEBI circular CIR/IMD/DF/24/2012 dated November 19, 2012, it is hereby clarified that the brokerage and transaction costs incurred for the execution of trades may be capitalized to the extent of 0.12 per cent of the value of trades in case of cash market transactions and 0.05 per cent of the value of trades in case of derivatives transactions. Any payment towards brokerage and transaction costs (including service tax, if any) incurred for the execution of trades, over and above the said 0.12 per cent and 0.05 per cent for cash market transactions and derivatives transactions respectively may be charged to the scheme within the maximum limit of Total Expense Ratio (TER) as prescribed under Regulation 52 of the SEBI (MF) Regulations. (c) Additional expenses incurred towards different heads mentioned under Regulations 52(2) and 52(4) of SEBI (MF) Regulations, not exceeding 0.20 per cent of daily net assets of the scheme. Mr. Kunal Sangoi Liquidity Minimum Application Amount/ Number of Units The Scheme will offer for purchase/ switch-in and redemption/ switch-out of units at NAV based prices on every Business Day on an ongoing basis. The Mutual Fund shall dispatch the Redemption proceeds within 10 working days from the date of acceptance of the Redemption request. Purchase (including Switch-in): Rs.1000/- Additional Purchase (including Switch-in): Rs. 1000/- Repurchase: In multiples of Rs. 1/- or units 7

8 Name of the Scheme Aditya Birla Sun Life India Opportunities Fund Aditya Birla Sun Life Digital India Fund Plans/ Options and Default Plan/ Option/ Facility Plans offered under the Scheme: The Scheme shall offer Regular Plan and Direct Plan** with a common portfolio and separate NAVs. Options/Facility offered under Regular and Direct Plan : Dividend (Payout / Reinvestment / Sweep Facility) Growth Default Option: Dividend Reinvestment Default Plan: Investors are requested to note the following scenarios for the applicability of Direct Plan or Regular Plan for valid applications received under the Scheme: Scenario Broker Code mentioned by the investor Plan mentioned by the investor Default Plan to be captured 1 Not mentioned Not mentioned Direct Plan 2 Not mentioned Direct Direct Plan 3 Not mentioned Regular Direct Plan 4 Mentioned Direct Direct Plan 5 Direct Not Mentioned Direct Plan 6 Direct Regular Direct Plan 7 Mentioned Regular Regular Plan 8 Mentioned Not Mentioned Regular Plan Number of Folios (as on March 31, 2018) Assets Under Management (Rs. In Crores)(As on March 31, 2018) Actual expenses charged (in %) as on March 31, ,955 14, Regular Plan % Regular Plan % Direct Plan % Direct Plan % 8

9 ADITYA BIRLA SUN LIFE INDIA OPPORTUNITIES FUND (An Open ended Growth Scheme) 9 Annexure II Portfolio as on March 31, 2018 Name of the Instrument ISIN Industry^ Quantity Market/Fair Value % to Net Assets (Rs. in Lacs) Equity & Equity related (a) Listed / awaiting listing on Stock Exchanges Infosys Limited INE009A01021 Software 100,000 1, % Honeywell Automation India Limited INE671A01010 Industrial Capital Goods 6,438 1, % Tech Mahindra Limited INE669C01036 Software 164,000 1, % HCL Technologies Limited INE860A01027 Software 100, % Sanofi India Limited INE058A01010 Pharmaceuticals 18, % WABCO India Limited INE342J01019 Auto Ancillaries 10, % KPIT Technologies Limited INE836A01035 Software 350, % Majesco Limited INE898S01029 Software 150, % Persistent Systems Limited INE262H01013 Software 100, % Sterlite Technologies Limited INE089C01029 Telecom - Equipment & 210, % Accessories Sonata Software Limited INE269A01021 Software 200, % Bajaj Auto Limited INE917I01010 Auto 20, % Reliance Industries Limited INE002A01018 Petroleum Products 60, % Aurobindo Pharma Limited INE406A01037 Pharmaceuticals 80, % Sun Pharmaceutical Industries Limited INE044A01036 Pharmaceuticals 90, % AIA Engineering Limited INE212H01026 Industrial Products 30, % Cyient Limited INE136B01020 Software 60, % Dr. Reddy s Laboratories Limited INE089A01023 Pharmaceuticals 18, % Hindustan Zinc Limited INE267A01025 Non - Ferrous Metals 115, % Hindalco Industries Limited INE038A01020 Non - Ferrous Metals 150, % Cummins India Limited INE298A01020 Industrial Products 44, % Arvind Limited INE034A01011 Textile Products 78, % CRISIL Limited INE007A01025 Finance 15, % Bharat Forge Limited INE465A01025 Industrial Products 40, % Vedanta Limited INE205A01025 Non - Ferrous Metals 90, % Lupin Limited INE326A01037 Pharmaceuticals 32, % Torrent Pharmaceuticals Limited INE685A01028 Pharmaceuticals 15, % K.P.R. Mill Limited INE930H01023 Textile Products 29, % Sub Total 15, % (b) Unlisted Brillio Technologies Pvt Limited ** # INE763E01017 Miscellaneous 83, $0.00% Sree Rama Polymer ** # Miscellaneous 100, $0.00% Magnasound (I) Limited ** # Miscellaneous 75, $0.00% Jainpur Straw Brd ** # INE Miscellaneous 100, $0.00% Oriqua Limited ** # INE Miscellaneous 103, $0.00% Sub Total 0.00 $0.00% Total 15, % Others CBLO / Reverse Repo Clearing Corporation of India Ltd % Sub Total % Total % Net Receivables / (Payables) (4.56) -0.03% GRAND TOTAL 16, % ** Thinly Traded / Non Traded Security # Unlisted Security $ Less Than 0.01% of Net Asset Value ^Industry classification as recommended by AMFI and wherever not available, internal classification has been used

10 ADITYA BIRLA SUN LIFE DIGITAL INDIA FUND (An open ended equity scheme investing in the Technology, Telecom, Media, Entertainment and other related ancillary sectors.) Portfolio as on March 31, 2018 Name of the Instrument ISIN Industry^ Quantity Market/Fair Value % to Net Assets (Rs. in Lacs) Equity & Equity related (a) Listed / awaiting listing on Stock Exchanges Infosys Limited INE009A01021 Software 260,000 2, % HCL Technologies Limited INE860A01027 Software 110,000 1, % Tech Mahindra Limited INE669C01036 Software 162,000 1, % KPIT Technologies Limited INE836A01035 Software 300, % Tata Consultancy Services Limited INE467B01029 Software 22, % Sterlite Technologies Limited INE089C01029 Telecom - Equipment & Accessories 180, % Majesco Limited INE898S01029 Software 110, % Dish TV India Limited INE836F01026 Media & Entertainment 700, % Bharti Airtel Limited INE397D01024 Telecom - Services 100, % Cyient Limited INE136B01020 Software 55, % Oracle Financial Services Software Limited INE881D01027 Software 10, % Persistent Systems Limited INE262H01013 Software 53, % Zee Entertainment Enterprises Limited INE256A01028 Media & Entertainment 50, % Tejas Networks Limited INE010J01012 Telecom - Equipment & Accessories 77, % Sun TV Network Limited INE424H01027 Media & Entertainment 27, % Tata Communications Limited INE151A01013 Telecom - Services 35, % Redington (India) Limited INE891D01026 Transportation 130, % INOX Leisure Limited INE312H01016 Media & Entertainment 50, % Sonata Software Limited INE269A01021 Software 40, % Info Edge (India) Limited INE663F01024 Software 7, % Zee Entertainment Enterprises Limited (Preference Share) INE256A04022 Media & Entertainment 176, % Sub Total 11, % (b) Unlisted Magnasound (I) Limited ** # Miscellaneous 150, $0.00% Sub Total 0.00 $0.00% Total 11, % Others CBLO / Reverse Repo Clearing Corporation of India Ltd % Sub Total % Total % Net Receivables / (Payables) (330.22) -2.85% GRAND TOTAL 11, % ** Thinly Traded / Non Traded Security # Unlisted Security $ Less Than 0.01% of Net Asset Value ^Industry classification as recommended by AMFI and wherever not available, internal classification has been used 10

11 Scheme Performance Annexure III Returns as on March 31, 2018 Aditya Birla Sun Life India Opportunities Fund (Merging Scheme) NAVs as on March 31, 2018 Regular Rs Direct - Rs Period Scheme Returns (%) Benchmark Returns (%) Direct Regular Direct Regular 1 Year Year Year Since Inception Past performance may or may not be sustained in the future Since Inception Date : January 01, 2013 # Scheme Benchmark: Nifty 500 Total Return Index Pursuant to provisions of SEBI Circular dated September 13, 2012, Direct Plan is introduced w.e.f. January 1, Date of allotment for Direct Plan is January 1, Scheme Performance Returns as on March 31, 2018 Aditya Birla Sun Life Digital India Fund (Surviving Scheme) NAVs as on March 31, 2018 Regular Rs Direct - Rs Period Scheme Returns (%) Benchmark Returns (%) Direct Regular Direct Regular 1 Year Year Year Since Inception Past performance may or may not be sustained in the future Since Inception Date : January 15, 2000 # Scheme Benchmark: S&P BSE Teck Total Return Index Pursuant to provisions of SEBI Circular dated September 13, 2012, Direct Plan is introduced w.e.f. January 1, Date of allotment for Direct Plan is January 1,

12 The Non-Performing Assets (NPAs) and illiquid assets as on March 31, 2018 are under: Percentage of total NPAs to net assets Percentage of total Illiquid Assets* to net assets Aditya Birla Sun Life India Opportunities Fund *defined as thinly traded/ non-traded/unlisted equity shares. Aditya Birla Sun Life Digital India Fund Annexure IV Consolidated Scheme Nil Nil Nil Nil Nil Nil Note: - As on March 31, 2018 Aditya Birla Sun Life India Opportunities Fund is holding illiquid securities as mentioned below which are valued at Rs Description Jainpur Straw Brd and Paper Ltd Brillio Technologies Pvt Ltd Magnasound (I) Ltd Oriqua Ltd Sree Rama Polymer Quantity (in units) As on March 31, 2018 Aditya Birla Sun Life Digital India Fund is holding illiquid securities as mentioned below which are valued at Rs Description Quantity (in units) Magnasound (I) Ltd

13 Annexure V TAX TREATMENT ON MERGER OF PLANS/SCHEMES OF MUTUAL FUNDS A. Tax Treatment for Units holders who decide to continue remain invested after merger I. Consolidation of Mutual Fund Schemes The Finance Act, 2015 to provide tax neutrality on transfer of units of a scheme of a Mutual Fund under the process of consolidation of schemes of Mutual Funds as per SEBI (Mutual Funds) Regulations, Section 47 was amended to so as to include clause (xviii) which provides that any transfer of unit or units by a unit holder held by him in the Consolidating Scheme of a mutual fund, will not be treated as transfer, if the transfer is made in consideration of the allotment to him of unit or units in the Consolidated Scheme of the mutual fund under the process of consolidation of the schemes of mutual fund in accordance with the SEBI (Mutual Funds) Regulation, 1996 and accordingly capital gains will not apply. For the purpose of above clause, Consolidating Scheme means the scheme of a mutual fund which merges under the process of consolidation of the schemes of mutual fund in accordance with the SEBI (Mutual Funds) Regulation, 1996 and Consolidated Scheme means the scheme with which the Consolidating Scheme merges or which is formed as a result of such merger. Provided that the Consolidation is of two or more schemes of equity oriented fund or of two or more scheme of a fund other than equity oriented fund Thus as per the amended Section 47, allotment of units in Surviving Scheme (Consolidated Scheme), pursuant to consolidation of schemes or merger, to Unit holders of Transferor Scheme (Consolidating Scheme) who decide to continue in the Surviving Scheme (Consolidated Scheme) will not be considered as redemption of units of Transferor Scheme (Consolidating Scheme) and will not result in short term / long term capital gain / loss in the hands of the unit holders. Further there would be no securities transaction tax on allotment of units in Surviving Scheme (Consolidated Scheme) pursuant to merger to unit holders who decide to continue. 2. Section 2(42A) is amended with sub clause (hd) to provide that in case of unit or units allotted to Unit holder pursuant to consolidation or merger of schemes of mutual fund, the period for which the unit or units in the Consolidating Scheme were held by the Unit holder will be included in determining the period for which such units were held by the unit holder. Thus the date of allotment at the time of subscription in Transferor Scheme (Consolidating Scheme) will be considered as the date of allotment for determining period of holding for the purpose of computing short term / long term capital gain / loss at the time of redemption of such units in Surviving Scheme (Consolidated Scheme). 3. Section 49 is amended with sub-section (2AD) to provide that where units are allotted in Consolidated Scheme pursuant to consolidation of scheme of mutual funds, the cost of acquisition of the units will be deemed to be the cost of acquisition to unitholder of unit or units in the Consolidating Scheme of the mutual fund. Thus, the cost of acquisition of units allotted in Surviving Scheme (Consolidated Scheme) pursuant to merger or consolidation of schemes will be the cost of acquisition of units in Transferor scheme (Consolidating Scheme). II. Consolidation of Mutual Fund Plans Further, the Finance Act, 2016 and the Finance Act, 2017 have made several amendments in the provisions of the Act relating to the taxation of mutual funds. The amendments and their implications may be summarised as under: 1. Amendment in Section 47 of the Act: Transactions not regarded as transfer The Finance Act, 2016 amended Section 47 so as to include clause (xix) which provides that any transfer of unit or units by a unit holder held by him in the Consolidating Plan of a mutual fund scheme, will not be treated as transfer, if the transfer is made in consideration of the allotment to him of unit or units in the Consolidated Plan of that mutual fund scheme under the process of consolidation of the schemes of mutual fund in accordance with the SEBI (Mutual Funds) Regulation, 1996 and accordingly capital gains will not apply. For the purpose of above clause, Consolidating Plan means the plan within a scheme of a mutual fund which merges under the process of consolidation of the plans within a scheme of mutual fund in accordance with the SEBI (Mutual Funds) Regulations, 1996 made under the SEBI Act, Provided that the Consolidation is of two or more schemes of equity oriented fund or of two or more scheme of a fund other than equity oriented fund Thus, as per the amended section 47, allotment of units in Surviving Plan (Consolidated Plan), pursuant to consolidation of plans or merger, to Unit holders of Transferor Plan (Consolidating Plan) who decide to continue in the Surviving Plan (Consolidated Plan) will 13

14 not be considered as redemption of units of Transferor Plan (Consolidating Plan) and will not result in short term / long term capital gain / loss in the hands of the unit holders. Further there would be no Securities Transaction Tax ( STT ) on allotment of units in Surviving Plan (Consolidated Plan) pursuant to merger to unit holders who decide to continue. 2. Amendment of Section 2(42A) of the Act: Section 2(42A) is amended with sub clause (hg) by virtue of the Finance Act, 2017 to provide that in case of unit or units allotted to unit holder pursuant to consolidation or merger of plans under a mutual fund scheme, the period for which the unit or units in the Consolidating Plan of a mutual fund scheme were held by the unit holder will be included in determining the period for which such units were held by the unit holder. The amendment is effective from April 1, Thus, the date of allotment at the time of subscription in Transferor Plan (Consolidating Plan) under a mutual fund scheme will be considered as the date of allotment for determining period of holding for the purpose of computing short term / long term capital gain / loss at the time of redemption of such units in Surviving Plan (Consolidated Plan) under a mutual fund scheme. 3. Amendment of Section 49 of the Act: Section 49 is amended with sub-section (2AF) by Finance Act, 2017 to provide that where units are allotted in Consolidated Plan of a mutual fund scheme pursuant to consolidation of plans of a mutual fund scheme, the cost of acquisition of the units will be deemed to be the cost of acquisition to unit holder of unit or units in the Consolidating Plan of the scheme of mutual fund. Thus, the cost of acquisition of units allotted in Surviving Plan (Consolidated Plan) pursuant to merger or consolidation of plans of a mutual fund scheme will be the cost of acquisition of units in Transferor Plan (Consolidating Plan). The above amendment is applicable from Assessment Year and will therefore, apply to the consolidation of plans on or after April 1, B. Tax Treatment for Units holders who decide to redeem pursuant to proposed merger during the exit window The redemption from the Transferor Plan and/or switch-out of units of Transferor Plan to any other plans under the relevant mutual fund scheme of Aditya Birla Sun Life Mutual Fund during exit window shall be considered as redemption in Transferor Plan and will result in short term / long term capital gain / loss in the hands of the unit holders depending on the period of holding of the investment. Taxation of Capital Gains in case of Resident: ü Long Term Capital Gain As per section 10(38) of the Act, long term capital gain arising from the sale of a unit of an equity oriented fund is exempt from tax. In such cases, at the time of sale of units (redemption) the unit holder will have to pay a STT of 0.001% of the sale / redemption value. Long term capital gain arising from the sale of a unit other than an equity oriented fund is taxed at 20% after indexation plus applicable Surcharge and Cess for listed units. The income by way of long term capital gains of a company on equity oriented funds would be taken into account in computing the book profits and Minimum Alternate Tax payable, if any, u/s 115JB of the Act [irrespective of whether it is exempt u/s 10(38)]. ü Short Term Capital Gain: As per section 111A of the Act, short term capital gain arising from the sale of a unit of an equity oriented fund is taxable at the rate of 15% (excluding surcharge and education cess). In such cases, at the time of sale of units (redemption) the unit holder will have to pay STT of 0.001% of the sale / redemption value. The capital gains will be computed by deducting expenditure incurred in connection with such transfer and cost of acquisition of the unit from the sale consideration. Short term capital gain arising from sale of a unit other than equity oriented fund is taxed as per the relevant tax slab applicable to respective investors. Further, in case of an individual or HUF, being a resident, where the total income as reduced by the short term capital gains as per section 111A is below the maximum amount not chargeable to tax i.e. Rs. 2,50,000 in case of all individuals (other than senior citizens and very senior citizens) and HUF, Rs.3,00,000 in case of senior citizens above 60 years of age but less than 80 years of age and Rs.5,00,000 in case of senior citizens above 80 years of age, the short term capital gains as per section 111A shall be reduced to the extent of the shortfall and only the balance short term capital gains as per section 111A will be subject to the flat rate of taxation. 14

15 Taxation of Capital Gains in case of Non Resident ü Long Term Capital Gain ü For all non-resident unit holders other than offshore funds & FII s: Long-term capital gains on transfer of unlisted units arising will be subjected to the income tax at the rate of 10%. However, no benefit of Currency Inflation Indexation or the Cost Inflation Indexation is available. Long term capital gains on other units will be 20%. However, in this case, an assessee will have an option to apply the concessional rate of tax of 10% provided the long term capital gains are computed without substituting indexed cost in place of cost of acquisition. For Overseas Financial Organizations, including Overseas Corporate Bodies fulfilling conditions laid down under section 115AB (Offshore Funds): Under section 115AB of the Act, long-term capital gains in respect of units purchased in foreign currency will be chargeable at the rate of 10%. (Plus surcharge in case Offshore Funds are corporate bodies). Such gains would be calculated without indexation of cost of acquisition. Short Term Capital Gain Short-term capital gains arising on sale/repurchase of units of equity oriented funds would be taxed at 15% (excluding surcharge and education cess) (referred in section 111A of the Act, discussed elsewhere in this document). Short term capital gain arising from sale of a unit other than equity oriented fund is taxed as per the relevant tax slab applicable to respective investors. Securities Transaction Tax STT is payable on redemption / switch-out of units of Transferor Plan during the exit option window will be borne by the Company. Tax Deducted at Source (TDS) (applicable in case of NRI investors): Tax shall be deducted at source u/s 194F of the 20% at the time of making the payment for repurchase of units. The above tax provisions are applicable for all categories of investors including Non Resident Indians. The information stated above is based on Aditya Birla Sun Life Mutual Fund understanding of the tax laws and only for the purpose of providing general information to the unit holders of the Surviving Plan and Transferor Plan. In view of the individual nature of tax implications, each unit holder is advised to consult with his or her own professional tax advisors with respect to the specific tax and other financial implications arising out his / her / their participation in merger of plans of mutual fund scheme. 15

16 Annexure VI ISIN s Details of Aditya Birla Sun Life India Opportunities Fund and Aditya Birla Sun Life Digital India Fund ISINs of the Merging Scheme to be extinguished Aditya Birla Sun Life India Opportunities Fund - Dividend - Direct Plan INF209K01P98 Aditya Birla Sun Life India Opportunities Fund - Dividend - Regular Plan INF209K01280 Aditya Birla Sun Life India Opportunities Fund - Growth - Direct Plan INF209K01VR7 Aditya Birla Sun Life India Opportunities Fund - Growth - Regular Plan INF209K01298 Aditya Birla Sun Life India Opportunities Fund - Dividend Reinvestment - Regular Plan INF209K01CK2 ISINs of the Surviving Scheme Aditya Birla Sun Life Digital India Fund - Dividend - Regular Plan Aditya Birla Sun Life Digital India Fund - Growth - Regular Plan Aditya Birla Sun Life Digital India Fund - Dividend - Direct Plan Aditya Birla Sun Life Digital India Fund - Growth - Direct Plan Aditya Birla Sun Life Digital India Fund - Dividend Reinvestment - Regular Plan INF209K01132 INF209K01140 INF209K01P49 INF209K01VF2 INF209K01CD7 Details of Unclaimed Dividend as on March 31, 2018 Annexure VII Scheme Name Unclaimed Dividend Unclaimed Redemptions/ Refunds Aditya Birla Sun Life India Opportunities Fund Aditya Birla Sun Life Digital India Fund Amount (Rs.) No. of Investors Amount (Rs.) No. of Investors 5,457, , ,307,