KEY INFORMATION MEMORANDUM (KIM) CUM APPLICATION FORM Bharti AXA Equity Fund (An Open-Ended Equity Growth Fund) Bharti AXA Tax Advantage Fund (An Open-Ended Equity Linked Saving Scheme) Bharti AXA Focused Infrastructure Fund (An Open-Ended Equity Scheme) Offer of Units at Applicable NAV MutualFund: BhartiAXAMutualFund 5,5thFlor,KalpataruSynergy,Vakola, Santacruz(E),Mumbai405 Truste: BhartiAXATrusteServicesPvtLtd 5,5thFlor,KalpataruSynergy,Vakola, Santacruz(E),Mumbai405 InvestmentManager: BhartiAXAInvestmentManagersPvtLtd 5,5thFlor,KalpataruSynergy,Vakola, Santacruz(E),Mumbai405 Sponsor: AXAInvestmentManagers CoeurDéfense-TourB-LaDéfense4 0EsplanadeduGénéraldeGaule 9240CourbevoieFrance This Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing. For further details of the Scheme/Mutual Fund, due diligence certificate by the AMC, Key Personnel, Investors' rights & services, risk factors, penalties and pending litigations etc., Investors should, before investment, refer to the Scheme Information Document (SID) and Statement of Additional Information (SAI) available free of cost at any of the Investor Service Centres or distributors or from the website www.bhartiaxa-im.com. The Scheme particulars have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 996, as amended till date, and filed with Securities and Exchange Board of India (SEBI). The Units being offered for public subscription have not been approved or disapproved by SEBI, nor has SEBI certified the accuracy or adequacy of this KIM. This KIM is dated April 29, 200. Bharti AXA Equity Fund Investment Objective To generate income and long-term capital appreciation through a diversified portfolio of predominantly equity and equity-related securities including equity derivatives, across all market capitalizations. The Scheme is in the nature of diversified multi-cap fund. The Scheme is not providing any assured or guaranteed returns. However, there can be no assurance that the investment objectives of the Scheme will be realized Asset Allocation Pattern of the scheme The Asset Allocation pattern of the Scheme under normal circumstances would be as under. Types of Instruments Normal Allocation Risk Profile (% of Net Assets) (High/ Medium/ Low) Equity and equity related securities * 65% - 00% High Debt & money market securities/instruments 0-35% Low to Medium * Investments in derivative instruments shall not exceed 50% of net assets of the portfolio. No investments will be made in securitized debt. Investments in foreign securities shall not exceed 35% of net assets of the portfolio. The Scheme may engage in stock lending not exceeding 20% of its net assets, and not more than 5% of the net assets would be deployed in stock lending to any single counter party. Differentiation from other schemes Bharti AXA Equity Fund (BAEF) is a diversified multi-cap fund. As a result the fund will have the flexibility to invest in equity and equity related securities across market capitalizations and sectors. Who should invest in the scheme Bharti AXA Equity Fund is a diversified equity fund and would therefore be less volatile as compared to a thematic or sectoral fund. However, as Bharti AXA Equity Fund is a multi-cap fund, there may be instances, based on the Fund Manager s outlook, when the portfolio is more heavily invested in mid or small cap companies. Equity shares with a Mid or small market capitalisation are typically more volatile than as compared to shares having large market capitalizations. During these times, the performance of the fund could be more volatile as compared to a fund that invests only in companies with large market capitalizations. Hence, the fund is suited to investors with some prior experience in equity investing or even for first time equity investors who are aware of the risk associated with investing in equities, particularly with regard to mid and small capitalization companies. Investment Strategy Under normal market conditions, the Scheme would invest predominantly in a diversified portfolio constituting equity and equity related instruments of companies that the Fund Manager believes have sustainable business models, and potential for capital appreciation. The Scheme would follow an actively managed approach allowing it the flexibility to pursue opportunities across the entire market capitalization spectrum, from smaller companies to well-established large-cap companies, without having any bias in favour of sectoral allocations or market capitalization. The investment environment, valuation parameters and other investment criteria will determine the allocation and the investment style. Risk Profile of the Scheme Risk Management Strategies Plans and Options The Scheme offers following Plans: Plan Eco Plan Institutional Plan Eco Plan is available for retail purchase transactions (including switch, SIP etc) of upto Rs 2 lacs only. Where the value of any purchase transaction (including switch, SIP) by a Unitholder / investor is upto Rs 2 lacs, such Unitholder / investor will have a choice to opt for Eco Plan. This Plan cannot be chosen if the value of any purchase transaction by a Unitholder / investor exceeds Rs. 2 lacs. For investors opting for this Plan, all investor communications including account statements, annual reports, portfolio statements, and other statutory information shall be communicated / sent to them exclusively in electronic format to their registered e-mail address. and redemption payments will be made only by way of direct credit / ECS / RTGS / NEFT to their registered bank mandate. For investors choosing the Eco Plan, a lower annual recurring expense ratio as described under the Para B titled Annual Scheme Recurring Expenses under Section V Fees and Expenses of the SID of Bharti AXA Equity Fund will apply. Above plans have a common portfolio. Options Under each of the Plans, following Options are available: Growth Option Bonus Option Option and Quarterly Option - offering Re-investment and Pay-out facilities Applicable NAV for ongoing purchase and sale In respect of all Purchase, Redemption and Switch requests during Ongoing Offer Period, Applicable NAV for will be as follows: For valid applications accepted: Upto 3:00 PM (cut-off time) on a Business Day, the NAV of such Business Day. After 3:00 PM (cut-off time) on Business Day, the NAV of following Business Day. The above will be applicable only for cheques / drafts / payment instruments payable locally in the city in which Designated Collection Centre or ISC is located where the applications are being submitted. Payments by Cash, Postal Orders, money orders, non-micr and outstation cheques; and third party payment instruments will not be accepted. For Switches: Valid applications for 'switch-out' shall be treated as applications for Redemption and valid applications for 'switchin' shall be treated as applications for Purchase and thus the provisions of the Cut-off time and the Applicable NAV as mentioned in the Scheme Information Document (SID) of Bharti AXA Equity Fund as applicable to Purchase and Redemption shall be applied respectively to the 'switch-in' and 'switch-out' applications. Minimum Application Amount/ Number of Units Plan Purchase Additional Purchase Plan Rs 5,000 and in multiples of Re. Rs,000 and in multiples of Re. Eco Plan Rs 5,000 and in multiples of Re. Rs,000 and in multiples of Re. Institutional Plan Rs 5 crore and in multiples of Re. Rs,00,000 and in mulitiples of Re. Units are of Face Value of Rs. 0/- each. Note: Minimum investment amount criteria does not apply for investments made in the Scheme through Liquity facility. Minimum Redemption The minimum amount for redemption shall be Rs,000 or equivalent Unit value, or entire account balance whichever is lower. For investors transacting through the Stock Exchange Facility (i.e. the facility for transacting (purchase / redemption) in the Units of the Scheme through the stock exchange infrastructure, in terms of SEBI Circular No. SEBI /IMD / CIR No./83204/ 2009 dated November 3, 2009 and in accordance with the guidelines specified by the Exchange from time to time), the minimum quantity for redemption must be 00 Units or such other quantity as may be specified by the AMC/ Exchange from time to time. If the account balance is less than the minimum number of Units specified, further partial redemption will not be allowed and the entire balance will be redeemed in response to any redemption application received from the investor. Despatch of Repurchase (Redemption) Request The Fund will endeavor to dispatch redemption proceeds within 3 Business Days from the acceptance of the Redemption request, but not later than 0 working days Benchmark Index S&P CNX Nifty Index Policy Name of the Fund Manager Mr. Prateek Agrawal Name of the Trustee Company Bharti AXA Trustee Services Private Limited Performance of the scheme Compounded Annualised Returns% Scheme Name Last Year as on Since Inception as March 3, 200 on March 3, 200 Bharti AXA Equity Fund - Plan 78.499% 53.507% Bharti AXA Equity Fund - Eco Plan 78.846% 53.937% S&P CNX Nifty 73.757% 59.874% Absolute Returns (%) for each financial year for the last 5 years 90 80 70 60 50 40 30 20 0 0 78.50 78.85 2.92 3.3 Bharti AXA Equity Fund - Plan Bharti AXA Equity Fund - Eco Plan Inception date - Date of First NAV i.e. 29/0/2008 Note: For the purpose of calculating the performance the inception date is considered to be the date of release of first NAV of the Scheme. The Returns shown are for the Growth Options. Performance of the dividend Plan for the investor would be net of the dividend distribution tax, as applicable. Past performance may or may not be sustained in future. Scheme Information Assets Under Management (as at March 3, 200): Rs. 20.26 crores No. of Folios (as at March 3, 200): 22,605 Expenses of the Scheme Load Structure For continuous offer: Entry Load Nil (Refer below) Exit Load %, if redeemed within year from the date of allotment Note:In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 68230/09 dated June 30, 2009, no entry load will be charged by the Scheme to the investor effective August, 2009. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors assessment of various factors including the service rendered by the distributor. Bonus Units, if any, and Units issued on re-investment of dividends shall not be subject to Entry and Exit Loads. Investments through SIP/STP/ Liq-uity facility and redemptions of any such investments will attract Exit Loads as applicable. Recurring Expenses Weekly average Net Assets First Rs. 00 Next Rs. 300 Next Rs. 300 Balance crores crores crores Maximum as % of weekly average net assets 2.50% 2.25% 2.00%.75% Actual expenses for the Eco Plan : 2.22% previous financial year Plan : 2.47% (2009-0) Bharti AXA Tax Advantage Fund Investment Objective The Scheme seeks to generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities across all market capitalisations. The Scheme is in the nature of diversified multicap fund. The Scheme is not providing any assured or guaranteed returns. There can be no assurance that the investment objectives of the Scheme will be realized. 2.0 73.76 S&P CNX Nifty Since Inception (October 29, 2008) to March 3, 2009 Last year as on March 3, 200
Asset Allocation Pattern of the scheme The Asset Allocation pattern of the Scheme under normal circumstances would be as under. Types of Instruments Normal Allocation Risk Profile (% of Net Assets) (High/ Medium/ Low) Equity and equity related securities * 80% - 00% High Debt & money market securities/instruments 0-20% Low to Medium *Investment in derivatives instruments may be made only if permitted under ELSS Rules and SEBI Regulations. In such event, the investments in derivatives shall be up to 50% of the net assets of the Scheme. The Scheme will not make investments in securitized debt. Investment in foreign securities may be made only if permitted under and in line with the Regulations and ELSS Rules as in force from time to time. In such an event, the Fund may invest in such overseas securities subject to limit of 20% of net assets of the Scheme. The Scheme may engage in stock lending not exceeding 20% of its net assets, and not more than 5% of the net assets would be deployed in stock lending to any single counter party. Differentiation from other schemes Bharti AXA Tax Advantage Fund is an Equity Linked Savings Scheme (ELSS) offering Tax Benefits under Section 80C of the Income Tax Act. The fund is in the nature of a diversified multi-cap fund. Who should invest in the scheme Bharti AXA Tax Advantage Fund is an ELSS and hence suited for investors who wish to avail of a deduction of income under Sec 80 C of Income Tax Act. Bharti AXA Tax Advantage Fund being an ELSS has a 3 year lockin period. The fund is suitable for investors with a long-term investment horizon. In terms of fund management, the 3 year lock-in period gives the fund manager the comfort of planning his investments with a long-term horizon. Investment Strategy Under normal market conditions, the Scheme would invest predominantly in a diversified portfolio constituting equity and equity related instruments of companies that the Fund Manager believes have sustainable business models, and potential for capital appreciation. The Scheme would follow an actively managed approach allowing it the flexibility to pursue opportunities across the entire market capitalization spectrum, from smaller companies to well-established large-cap companies, without having any bias in favour of sectoral allocations or market capitalization. The investment environment, valuation parameters and other investment criteria will determine the allocation and the investment style. Risk Profile of the Scheme Scheme specific Risk Factors are summarized below:. By virtue of requirements under the Equity Linked Savings Scheme, 2005 issued by Department of Economic Affairs, Ministry of Finance, Government of India vide Notification no 226/2005 dated November 3, 2005 and amended vide notification dated December 3, 2005 (ELSS Rules), Units issued under the Scheme cannot be redeemed until the expiry of three years from the date of their allotment. Consequently, the ability of an investor to redeem the investments or realise returns on investments in the Scheme is restricted for the first three years. Redemption prior to the expiry of the aforesaid three year period is permissible, subject to the ELSS Rules only in the event of the death of a Unit holder who is an Assessee, subject to the Units having been held for a period of at least one year from the date of allotment. 2. Bharti AXA Tax Advantage Fund has been framed in accordance with the ELSS Rules and other prevailing laws. The tax benefits described in this document are as available under the prevailing taxation laws including the ELSS Rules, which or whose interpretation may change from time to time. As is the case with any investment, there can be no guarantee that the current tax position or the tax position prevailing at the time of an investment in the Scheme will not undergo change. In view of the individual nature of tax consequences, each Unit holder is advised to consult his / her / their own professional tax advisor. For further details on risk factors, please refer to Page No. 4 of this KIM. Risk Management Strategies Plans and Options The Scheme offers following Plans:. Eco Plan 2. Plan Eco Plan: Eco Plan is available for purchase transactions (including switch, SIP etc) of upto Rs. 2 lacs only. This Plan cannot be chosen if the value of any purchase transaction exceeds Rs. 2 lacs. For investors opting for this Plan, all investor communications including account statements, annual reports, portfolio statements, and other statutory information shall be communicated / sent to them exclusively in electronic format to their registered e-mail address. and redemption payments will be made only by way of direct credit / ECS / RTGS / NEFT to their registered bank mandate. For investors choosing the Eco Plan, a lower annual recurring expense ratio as described under the Para B titled Annual Scheme Recurring Expenses under Section V Fees and Expenses of the SID of Bharti AXA Tax Advantage Fund will apply. Where the value of any purchase transaction is greater than Rs. 2 lacs, then such investments can be placed only in Plan. If the investor / Unit holder has erroneously chosen Eco Plan, the entire amount will be automatically placed in Plan. In such cases, unless the Investor specifies distinct Options / preferences, the Options and preferences as chosen under Eco Plan folio, if any, will automatically apply. All communications to a Unit holder having Eco Plan folio would continue to be sent in electronic format (e-mail, sms, etc). Plan: The Scheme also offers Plan. Purchase transactions exceeding Rs. 2 lacs can be placed only in Plan. Both Plans will have common portfolio. If the investor does not clearly specify the choice of Plan at the time of investing, it will be treated as an investment in the Plan. Each of the Plans have following Options: Growth Option for capital appreciation Option offering Re-investment and Pay-out facilities Applicable NAV for ongoing Purchase and sale In respect of all Purchase, Redemption and Switch requests, the Applicable NAV will be as follows: For valid applications accepted:upto 3:00 PM (cut-off time) on a Business Day, the NAV of such Business Day. After 3:00 PM (cut-off time) on a Business Day, the NAV of following Business Day. The above will be applicable only for cheques / drafts / payment instruments payable locally in the city in which Designated Collection Centre or ISC is located where the applications are being submitted. Payments by Cash, Postal Orders, money orders and outstation cheques / drafts; and third party payment instruments will not be accepted. For Switches: Valid applications for 'switch-out' shall be treated as applications for Redemption and valid applications for 'switch-in' shall be treated as applications for Purchase and thus the provisions of the Cut-off time and the Applicable NAV as mentioned in the SID of Bharti AXA Tax Advantage Fund as applicable to Purchase and Redemption shall be applied respectively to the 'switch-in' and 'switch-out' applications. Minimum Application Amount/ Number of Units Rs. 500/- and in multiples of Rs. 500/- for Purchases including Purchases through Systematic Investment Plan (SIP)/ Systematic Transfer Plan (STP) and Additional Purchases. Units are of Face Value of Rs. 0/- each. Minimum Redemption Amount Rs. 500/- (or equivalent Unit value), or account balance, whichever is lower. For investors transacting through the Stock Exchange Facility (i.e. the facility for transacting (purchase / redemption) in the Units of the Scheme through the stock exchange infrastructure, in terms of SEBI Circular No. SEBI /IMD / CIR No./83204/ 2009 dated November 3, 2009 and in accordance with the guidelines specified by the Exchange from time to time), the minimum quantity for redemption must be 50 Units or such other quantity as may be specified by the AMC/ Exchange from time to time. If the account balance is less than the minimum number of Units specified, further partial redemption will not be allowed and the entire balance will be redeemed in response to any redemption application received from the investor. Despatch of Repurchase (Redemption) Request Within0 working days of the receipt of the redemption request at the authorised centre of Bharti AXA Mutual Fund.(Redepmtions are subject to lock-in period of 3 years from the date of respective allotment). Benchmark Index S&P CNX Nifty Index Policy Name of the Fund Manager Mr. Prateek Agrawal Name of Trustee Company Bharti AXA Trustee Services Private Limited Performance of the Scheme Compounded Annualised Returns% Scheme Name Last Year as on Since Inception as March 3, 200 on March 3, 200 Bharti AXA Tax Advantage Fund - Plan 6.95% 2.638% Bharti AXA Tax Advantage Fund - Eco Plan 7.424% 22.083% S&P CNX Nifty 73.757% 80.362% 40 20 00 80 60 40 20 0 Absolute Returns (%) for each financial year for the last 5 years Bharti AXA Tax Advantage Fund - Plan 6.95 7.42 9.54 9.54 9.3 Bharti AXA Tax Advantage Fund - Eco Plan Since Inception (February 27, 2009) to March 3, 2009 Last year as on March 3, 200 Inception date - Date of First NAV i.e. 27/2/2009 Note: For the purpose of calculating the performance the inception date is considered to be the date of release of first NAV of the Scheme. The Returns shown are for the Growth Options. Performance of the dividend Plan for the investor would be net of the dividend distribution tax, as applicable. Past performance may or may not be sustained in future. Scheme Information Assets Under Management (as at March 3, 200): Rs. 3.59 crores No. of Folios (as at March 3, 200): 4,082 Expenses of the Scheme Load Structure For continuous offer: Entry Load Nil (Refer below) Exit Load Nil Note: In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 68230/09 dated June 30, 2009, no entry load will be charged by the Scheme to the investor effective August, 2009. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors assessment of various factors including the service rendered by the distributor. Bonus Units, if any, and Units issued on re-investment of dividends shall not be subject to Entry and Exit Loads. Investments through SIP/STP and redemptions of any such investments will attract Exit Loads as applicable. Recurring Expenses Weekly average First Rs. 00 Next Rs. 300 Next Rs. 300 Balance Net Assets crores crores crores Maximum as % of 2.50% 2.25% 2.00%.75% weekly average net assets Actual expenses for the Eco Plan : 2.25% previous financial year Plan : 2.50% (2009-0) Bharti AXA Focused Infrastructure Fund S&P CNX Nifty Investment Objective The Scheme seeks to generate long term capital appreciation through a portfolio of predominantly equity and equity related securities of companies engaged in infrastructure and infrastructure related sectors. However, there can be no assurance that the investment objectives of the Scheme will be realized. The Scheme is not providing any assured or guaranteed returns. Asset Allocation Pattern of the Scheme The Asset Allocation pattern of the Scheme under normal circumstances would be as under. Types of Instruments Range of Allocation Risk Profile (% of Net Assets) Equity and equity related securities of companies engaged in 65% to 00% High infrastructure and infrastructure related sectors Debt & money market securities/ instruments 0 to 35% Low to Medium no investments will be made in securitized debt. Investments in foreign securities shall not exceed 20% of net assets of the portfolio. The Scheme may engage in stock lending not exceeding 20% of its net assets, and not more than 5% of the net assets would be deployed in stock lending to any single counter party. Differentiation from other schemes Bharti AXA Focused Infrastructure Fund (BAFIF) is an infrastructure themed fund. As a result the fund will invest in equity and equity related securities of companies engaged only in infrastructure and infrastructure related sectors, and will not invest in companies in other sectors. Who should invest in the scheme Bharti AXA Focused Infrastructure Fund is an infrastructure themed fund. Unlike a fully diversified equity fund, the portfolio concentration of this Scheme would be higher and hence the fund is expected to be more volatile. However, over a long term, the Scheme will benefit by the sustained focus on infrastructure development in India. The Scheme would be more suitable for investors who are desirous of increasing their exposure to infrastructure space in their personal equity portfolio. Thus, this Scheme could act as a top up over existing investments of such investors in diversified equity funds. However, for a first time investor, it might still be advisable to initially start his investment with a diversified equity fund. Investment Strategy Bharti AXA Focused Infrastructure Fund is an equity scheme that will invest predominantly in equity and equity related securities of companies that are engaged in infrastructure and infrastructure related Sectors. The Scheme would follow an actively managed approach allowing it the flexibility to pursue opportunities across the entire market capitalization spectrum, from smaller companies to well-established large-cap companies. The investment environment, valuation parameters and other investment criteria will determine the allocation and the investment style. The Scheme will invest in the infrastructure companies within the broad AMFI classification of Sectors as under: Cement & Cement products, Construction, Energy, Industrial Manufacturing, Metals, Services (only Infrastructure related services eg. Transportation), Telecommunication, and Financial services (only those primarily engaged in financing infrastructure projects). The scheme will NOT invest in the following Sectors: Automobiles, Banks & other Financial Services companies (other than those covered in above list), Services (Other than Infrastructure related), Chemicals, Consumer Goods, Fertilizers & Pesticides, Information Technology, Paper, Pharmaceuticals, and Textiles. Risk Profile of the Scheme Scheme specific Risk Factors are summarized below:. The investments under the Scheme would predominantly be in equity and equity related securities of companies engaged in infrastructure and infrastructure related sectors, and hence will be affected by risks associated with such companies. Infrastructure sector is sensitive to government policy. If the government policy ceases to be favorable towards the sector, the sector may under perform. Further, amongst the infrastructure sectors covered under the Scheme, majority of the equity/ equity oriented investments could be under a single sector/industry. Hence, if the said sector/industry does not perform positively as expected by the Fund Manager of the Scheme, the Scheme's performance may be adversely affected due to a risk associated with non diversification and could thus affect the value of investments. 2. Given that the Scheme seeks to invest in equity/ equity related securities of the Companies engaged in the infrastructure sector and that the investment concentration may be high in certain companies belonging to the said sector, the volatility and/or performance of the said sector and/or of the scrips belonging to this sector can have a material adverse bearing on the performance of the Scheme. 73.76 2
3. Although the Scheme seeks to make investments in equity and equity related securities of the Infrastructure sector, this scheme will not be a sector specific scheme for the purpose of monitoring the investment restrictions applicable to the Scheme and hence investments per issuer under the Scheme will not exceed 0% (at the time of investment) of the net assets of the Scheme. 4. The Scheme will focus on companies which will benefit from structural changes brought about by continuing liberalization in economic policies by the Government and / or from continuing investments in infrastructure, both by public / private sector. It is possible that such policies may not fructify or crystallize in a manner commensurate with expectations thereby affecting the prospects of the companies held in the portfolio of the Scheme. For further details on risk factors, please refer to Page No. 4 of this KIM. Risk Management Strategies Plans and Options The Scheme offers following Options: Growth Option for capital appreciation Quarterly Option offering Re-investment and Pay-out facilities Option offering Re-investment and Pay-out facilities Applicable NAV for ongoing Purchase and sale In respect of all Purchase, Redemption and Switch requests, the Applicable NAV will be as follows: For valid applications accepted: Upto 3:00 PM (cut-off time) on a Business Day, the NAV of such Business Day. After 3:00 PM (cut-off time) on a Business Day, the NAV of following Business Day. The above will be applicable only for cheques / drafts / payment instruments payable locally in the city in which Designated Collection Centre or ISC is located where the applications are being submitted. Payments by Cash, Postal Orders, money orders and outstation cheques / drafts will not be accepted. For Switches: Valid applications for 'switch-out' shall be treated as applications for Redemption and valid applications for 'switch-in' shall be treated as applications for Purchase and thus the provisions of the Cut-off time and the Applicable NAV as mentioned in this SID as applicable to Purchase and Redemption shall be applied respectively to the 'switch-in' and 'switch-out' applications. Minimum Application Amount/ Number of Units Minimum Investment Minimum Additional Investment Rs. 5,000/- Rs.,000/- Investments may be made in multiples of Re./- (subject to minimum amount) Investments through SIP / STP Minimum Instalment Amount Minimum Duration Daily SIP/STP Rs.300/- and in multiples of Rs.00/- thereafter month (eg: Rs.400/-, 500/-, 600/- etc) Monthly SIP/STP Rs.,000/- and in multiples of Rs.00/- thereafter 6 months (eg: Rs.,00/-,,200/-,,300/- etc) Minimum investment amount criteria does not apply for investments made in the Scheme through Liq-uity facility. Units are of Face Value of Rs. 0/- each. Minimum Redemption The minimum amount for redemption shall be Rs,000 or equivalent Unit value, or entire account balance whichever is lower. For investors transacting through the Stock Exchange Facility (i.e. the facility for transacting (purchase / redemption) in the Units of the Scheme through the stock exchange infrastructure, in terms of SEBI Circular No. SEBI /IMD / CIR No./83204/ 2009 dated November 3, 2009 and in accordance with the guidelines specified by the Exchange from time to time), the minimum quantity for redemption must be 00 Units or such other quantity as may be specified by the AMC/ Exchange from time to time. If the account balance is less than the minimum number of Units specified, further partial redemption will not be allowed and the entire balance will be redeemed in response to any redemption application received from the investor. Despatch of Repurchase (Redemption) Request The Fund will endeavor to dispatch redemption proceeds within 3 Business Days from the acceptance of the Redemption request, but not later than 0 working days. Benchmark Index BSE 00 Index Policy Name of the Fund Manager Mr. Prateek Agrawal Name of Trustee Company Bharti AXA Trustee Services Private Limited Performance of the Scheme Absolute Return % Since Inception as on March 3, 200 Bharti AXA Focused Infrastructure Fund 0.779% BSE 00 Index 2.204% 2.50 2.00.50.00 0.50 0.00 0.78 Bharti AXA Focused Infrastructure Fund Since Inception (March 0, 200) to March 3, 200 Inception date - Date of First NAV i.e. 0/3/200 Note: For the purpose of calculating the performance the inception date is considered to be the date of release of first NAV of the Scheme. The Returns shown are for the Growth Options. Performance of the dividend option for the investor would be net of the dividend distribution tax, as applicable. Past performance may or may not be sustained in future. Scheme Information Assets Under Management (as at March 3, 200): Rs. 43.64 crores No. of Folios (as at March 3, 200): 6,980 Expenses of the Scheme (I) Load Structure Entry Load Nil (Refer below) Exit Load %, if redeemed within year from the date of allotment Note: In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 68230/09 dated June 30, 2009, no entry load will be charged by the Scheme to the investor effective August, 2009. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors assessment of various factors including the service rendered by the distributor. Bonus Units, if any, and Units issued on re-investment of dividends shall not be subject to Entry and Exit Loads. Investments through SIP/STP/ Liq-uity facility and redemptions of any such investments will attract Exit Loads as applicable. Recurring Expenses Weekly average First Rs. 00 Next Rs. 300 Next Rs. 300 Balance Net Assets crores crores crores Maximum as % of 2.50% 2.25% 2.00%.75% weekly average net assets Actual expenses for the 2.50% previous financial year (2009-0) 2.20 BSE 00 Index Tax treatment for the Investors (Unitholders) Bharti AXA Equity Fund, Bharti AXA Tax Advantage Fund and Bharti AXA Focused Infrastructure Fund Resident Investors Mutual Fund Tax on distributed by Nil Tax on income distribution by the the Mutual Fund Mutual Fund: Nil - In case of equity oriented fund (Refer Note) Long-term capital gains Nil - in case of equity oriented fund Nil Short-term capital gains 5% - in case of equity oriented fund Nil 2 Business Income 0% - 30% based on the total income Nil 3 of the investor Redemption of units of an equity oriented fund will attract securities transaction tax (STT) at the rate of 0.25%. Note: An equity oriented fund has been defined as a scheme of a Mutual Fund where the investible funds are invested in equity shares of domestic companies to the extent of more than 65 per cent of the total proceeds of such fund. The percentage of equity shareholding of the fund shall be computed with reference to the annual average of the monthly averages of the opening and closing figures. For further details on taxation, please refer to Section XI titled TAX PROVISIONS IN RESPECT OF INVESTMENTS IN MUTUAL FUNDS in the Statement of Additional Information. The tax benefits described here /in the SID / in the SAI are as available under the prevailing taxation laws, which or whose interpretation may change from time to time. As is the case with any investment, there can be no guarantee that the current tax position or the tax position prevailing at the time of an investment in the Scheme will not undergo change. In view of the individual nature of tax consequences, each Unit holder is advised to consult his / her / their own professional tax advisor. The tax rate would be increased by a surcharge of: (a) 0 per cent - in case of domestic corporate Unit Holders, where the total income exceeds Rs.00,00,000/- (b) 2.5 per cent - in case of foreign corporate Unit Holders, where the total income exceeds Rs.00,00,000/- Further, all Unit Holders would be liable to an education cess of 3 per cent in addition to the amount of tax and applicable surcharge (if any). 2 In case of resident individuals and HUFs, where the total income as reduced by the short-term capital gains, is below the basic exemption limit, the short-term capital gains will be reduced to the extent of the shortfall and only the balance short-term capital gains will be subjected to the 5 per cent tax rate. 3 Assuming that the total income in case of individuals, HUF, AOP and BOI investors exceeds the basic exemption limit (Rs 240,000/- in case of resident individuals of an age of 65 years or more, Rs.90,000/- in case of women resident in India below 65 years of age and Rs.60,000/- in case of other individuals and HUF, AOP/BOI). All rates are as prevailing as at March 3, 200. 3
Information Common for Schemes Risk Profile of the Scheme Mutual Fund Units involve investment risks including the possible loss of principal. Please read the Scheme Information Document (SID) of the schemes carefully for details on risk factors before investment. Scheme specific Risk Factors are summarized below: Equity and equity related securities are volatile and carry risk of price fluctuations on an ongoing basis. The liquidity of investments made in the Scheme may be restricted by trading volumes and settlement periods. Settlement periods may be extended significantly by unforeseen circumstances. The inability of the Scheme to make intended securities purchases due to settlement problems could cause the Scheme to miss certain investment opportunities. Similarly, the inability to sell securities held in the Scheme's portfolio may result, at times, in potential losses to the Scheme, should there be a subsequent decline in the value of securities held in the Scheme's portfolio. Investments in equity and equity related securities involve a degree of risk and investors should not invest in the Scheme unless they can afford to take the risk of losing their investment. The liquidity and valuation of the Scheme's investments due to its holdings of unlisted securities may be affected if they have to be sold prior to the target date of disinvestment. Fixed Income instruments may be subject to price volatility due to factors such as changes in interest rates, general level of market liquidity and market perception of credit worthiness of the issuer of such instruments. Different types of securities in which the Scheme would invest, carry different levels and types of risk. Accordingly, the Scheme's risk may increase or decrease depending upon its investment pattern. e.g. corporate bonds carry a higher amount of risk than Government securities. Further, even among corporate bonds, bonds which are rated AAA are comparatively less risky than bonds which are AA rated. For further Risk Factors, please refer to the Scheme Information Documents of the schemes. Risk Management Strategy Risk Management is integral to the portfolio management process and endeavours to monitor and align the financial risk profile of the actual scheme portfolio with the stated investment objective of the scheme and, as such, the financial risks associated with that investment objective. Various financial risks are applicable to the schemes, as given above and also the Risk Factors section as detailed in the respective Scheme Information Documents. These financial risks are measured and monitored on a regular basis, with a view to managing these within levels, which, under normal market conditions, the Fund views as being consistent with the investment objective of the scheme. Risk Risk Monitoring / Management Strategy For Fixed Income Investments Interest Rate Risk Interest rate sensitivity parameters such as interest rate duration and average maturity - for individual instruments as well as portfolio aggregates - are used to monitor interest rate risk. These metrics are maintained within levels which, under normal market conditions, the Fund views as being consistent with the investment objective of the scheme. Credit Risk Internal Credit Analysis is undertaken for non-sovereign issuers whose fixed income securities are invested in by the fund. In addition to internal analysis, process also includes obtaining information from one or several external credit rating agencies e.g., CRISIL, ICRA, CARE and Fitch. Liquidity Risk Managed by maintaining a portion of the portfolio in cash, cash equivalents, money market instruments and sovereign instruments which reduce the overall portfolio liquidity risk. For Equity Investments Concentration risk Liquidity Risk Investing in a diversified portfolio of companies and industry sectors within the defined investment universe. (It should be noted that for schemes where the objective is to invest in specific sectors, concentration risk is inherently higher than schemes with a larger investment universe.) Secondary market liquidity of equity investments of the schemes are monitored at aggregate portfolio levels. Investment in unlisted stocks would tend to be a small part of the portfolio. Policy Depending on the respective Plans and Options of the Scheme, the Scheme will endeavor to declare dividends as mentioned in the Scheme Information Document. In case no dividend is declared, the net surplus, if any, will remain invested and be reflected in the NAV. All dividends will be paid in accordance with procedure prescribed by SEBI circular dated April 4, 2006. Declaration of dividends will be subject to availability of distributable profits, as computed in accordance with SEBI Regulations, 996. All distribution of earnings will be out of distributable surplus and at the discretion of the Trustee. The Trustee's decision with regard to availability and adequacy, rate, timing and frequency of dividend declaration shall be final. The dividends, if declared/paid, may vary for different pay-out periods. The record date for the dividends may be fixed by the AMC. If such record date is a non-business Day, then the next working/business Day will be considered as a record date. All Unit holders in the respective Plans, whose names appear in the Register of Unit holders on the record date, will be eligible to receive the dividend. Where the amount of dividend payable to a Unit holder is less than or equal to Rs 500/-, the dividend amount will not be paid, but shall be compulsorily reinvested irrespective of the Unit holder having selected the Payout Option. Waiver of Load For Direct Application No Entry Load shall be charged on application received on or after August, 2009, including Direct Application. Direct Application means application for purchase of Units received from investors / Unitholders which are lodged directly at the ISCs / Designated Collection Centres or made through the AMC Website, and which does not bear stamp or code of any distributor, sub-distributor, agent or broker or not routed through any such intermediary. For Direct Application, investors should note the following for ensuring that the application is treated as a Direct Application :. Broker code, if already printed on the application form, should be crossed-out / struck-off and investor should counter sign besides the same. 2. Where the broker code block in the application form is blank, it is advisable to cross out / strike-off or indicate DIRECT / Not Applicable in the block. 3. Such applications should be lodged at ISCs as listed in AMC Website. Direct Applications will attract Exit Load as applicable. Daily Net Asset Value (NAV) publication The NAV will be declared on all Business Days and will be released for publication in 2 newspapers. NAV can also be viewed on www.bhartiaxa-im.com and www.amfiindia.com. For Bharti AXA Tax Advantage Fund, it may be noted that the first re-purchase/ redemption price will be published only after year from the date of first allotment and thereafter for all Business Days. For Investor Grievances, please contact Registrar & Transfer Agent: Asset Management Company: Karvy Computershare Pvt. Ltd. Ms Sharmista Chakrabarty - Manager Customer Karvy Registry House 8-2-596, Service Avenue 4, Street No., Bharti AXA Investment Managers Private Limited Banjara Hills, Hyderabad - 500 034 5, 5th Floor, East Wing, Kalpataru Synergy, Vakola, Santacruz (E), Mumbai- 400 055 India. Email: service@bhartiaxa-im.com Customer Engagement Centers: Tollfree Number: 800032263 Alternate Number : 020-402300 Unitholder's Information (a) Account Statements: An account statement stating the number of Units purchased and allotted will be sent through ordinary post and/or electronic mail to each Unit holder not later than 30 days from the date of acceptance of valid application form/ transaction slip. (b) Annual Report: Scheme wise Annual Report or an abridged summary thereof shall be mailed to all Unit holders within four months from the date of closure of the relevant accounting year i.e. 3st March each year. The Abridged Scheme wise Annual Report may be mailed to the investors e-mail address if so mandated by the Investors in the Application Form. (c) Half - Yearly Financial Results and Portfolio Details: The Mutual Fund shall publish statement of the Scheme portfolio and the unaudited financial results, within one month from the close of each half year (i.e. 3st March and 30th September), by way of an advertisement, in one National English daily and one regional newspaper in the language of the region where the head office of the Mutual Fund is located or as required by the Regulations. Alternatively, the mutual fund may opt to send the portfolio to all Unit holders in lieu of the advertisement. (d) For unit holders who have opted to receive all communications in email form and investors in Eco Plan, all investor communications including account statements, annual reports, portfolio statements, statutory and other information shall be communicated/ sent exclusively in electronic format to their e-mail address. Please read the Scheme Information Document, Key Information Memorandum of the relevant scheme and the Statement of Additional Information carefully before filling up the application form. Investors are deemed to have read and accepted the terms subject to which the offer is being made, and bind themselves to the terms upon signing the application form and tendering payment. General instructions - Please complete the form : Legibly. In black ink or any dark coloured ink. In English language. In BLOCK LETTERS. By ticking the appropriate box for relevant options. Please fill in the fields marked as MANDATORY to prevent rejection of your Application Form. Please refer to the checklist provided at the end of the Application Form to ensure that the necessary details and attachments are made available. This will help to avoid processing delays and / or rejection of your Application. Applications complete in all respects, may be submitted at the designated Investor Service Centres (ISCs) / Official Points of Acceptance of Bharti AXA Mutual Fund. Investors must write the Application Form number / Folio number / Zero Balance Folio Number on the reverse of the cheques and bank drafts accompanying the Application Form. All applications will be accepted subject to verification. Invalid or incomplete applications are liable to be rejected after acceptance and verification. The AMC / Trustee retains the sole and absolute discretion to reject any application.. DISTRIBUTOR INFORMATION Application received through Distributor Please ensure to write the correct AMFI Registration Number (ARN) of the distributor in the Application Form. Application received directly Investors should ensure to write the word 'DIRECT' in the column 'ARN No' or 'Broker Code' in their applications for purchases/additional purchases/switches/fresh Systematic Investment Plans (SIP)/ fresh Systematic Transfer Plans (STP) in all such cases where applications are not routed through any distributor/agent/broker. In cases where unit holder uses a pre-printed transaction slip where details in the 'ARN No' or 'Broker Code' column is already printed, unit holder should cancel the ARN No/ Broker Code, write 'DIRECT' in the said column and it should also be counter signed by the unit holder/ all joint holder(s). Transactions slips/application forms where the column under 'ARN No or 'Broker Code' is provided, has to be filled by the unit holder as 'DIRECT' for processing the same as Direct applications. Investors can submit their applications for purchases /additional purchases/ switches/fresh SIP/ fresh STP at any of the Official Point(s) of Acceptance of Bharti AXA Mutual Fund. The updated list of Official Point(s) of Acceptance is available on the website of Bharti AXA Mutual Fund (www.bhartiaxa-im.com). Any modification or cancellation of the Distributor Information should be countersigned by the investor else the same is liable to be rejected. 2. INFORMATION OF EXISTING INVESTOR / ZERO BALANCE FOLIO HOLDER Existing Investor / Zero Balance Folio Holders should mention the correct Folio Number & go directly to Section 7 (Scheme Details). 3. APPLICANT INFORMATION Applications for Individuals: Please write your name in the sequence of First Name, Middle Name and Last Name. Please do not abbreviate any name. Preferably write your name exactly as it appears in the Bank records INSTRUCTIONS FOR COMPLETING APPLICATION FORM (as provided in the bank account details). Please fill in your date of birth as this may be required to establish your identity in your future communication with us. Incase of investments on behalf of the minor by parent/guardian/related person, it is mandatory to provide the name of parent/guardian. Applications for Non-Individuals: Companies, Trusts, Partnership firms, Societies or any other association should write the name exactly as it appears in its Incorporation document and in the Bank records (as provided in the bank account details). Sole-proprietorship concerns should apply in the name of the sole-proprietor. Applications under a Power of Attorney or by a limited company or a corporate body or an eligible institution or a registered society or a trust must be accompanied by the original Power of Attorney (or a certified true copy of the same duly notarised) or the relevant resolution or authority to make the application (or duly notarised copy thereof) as the case may be, along with a certified copy of the Memorandum and Articles of Association and/or bye-laws and/or trust deed and/or partnership deed and/or Certificate of Registration. Authorised officials should sign the Application Form under their official designation. A list of specimen signatures of the authorised officials, duly certified / attested should also be attached to the Application Form. In case of a Trust, a resolution from the Trustee(s) authorising such purchase must be submitted. Applications not complying with the above are liable to be rejected. In case of applications made in joint names without indicating the mode of holding, mode of holding will be deemed as 'Joint' and processed accordingly. 4. APPLICANTS CONTACT INFORMATION Investor is required to provide his full address. If the Investor is an NRI/FII, an overseas address must be provided. A local address if available may also be mentioned in the Application Form. The P.O. Box Number alone is not sufficient. For investors who has submitted acknowledgement, the address as mentioned in the Application Form will be overwritten by the address provided by you for the purpose of your to CDSL Ventures Limited ( CVL ). Also for such investors all future change in your address should be informed to CVL quoting your acknowledgement number / PAN number. For information on CVL, please refer to Instruction No. 3. For issuing the Customer ID for each investor in the Folio, the investors are requested to provide their contact details (i.e. Mobile Numbers). 5. EMAIL COMMUNICATION Account Statements / Newsletters / Annual Reports / Other statutory information (as may be permitted under SEBI (Mutual Funds) Regulations, 996) can be sent to each Unit holder by courier / post / e-mail. Unit holders who have opted to receive these documents by e-mail will be sent all documents by email only and no physical documents will be sent. Should the Unit holder experience any difficulty in accessing the electronically delivered documents, the Unit holder may request the Fund for delivery the same through alternate means. It is deemed that the Unit holder is aware of all security risks including possible third party interception of the documents and contents of the documents becoming known to third parties. The Newsletter, shall be displayed at the AMC website. The Unit holders can request for a copy of the Newsletter by post / e-mail. All communication and payments shall be made in the name of and favouring the first/sole applicant only. For ECO Plan - By default all communications to the investors would be via Email only. 4