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Notice cum Addendum: Change in scheme features of IDFC Mutual Fund

Mutual Fund

by IDFC Mutual Fund | Mutual Fund | 11 Downloaded

NOTICE is hereby given that IDFC Money Manager Fund - Investment Plan (MMF-IP) shall be merged into IDFC Super Saver Income Fund - Short Term Plan (SSIF-ST) with effect from Monday, May 14, 2018 (“Effective Date”):

Accordingly, on the date of merger :

  1. Growth Option of MMF-IP is proposed to be merged into Growth Option of SSIF-ST.

  2. Daily, Weekly and Monthly Dividend Options under MMF-IP (payout, reinvestment and sweep facility) are proposed to be merged into the Monthly Dividend Option under SSIF-ST (payout, reinvestment and sweep facility respectively).

  3. Periodic Dividend Option under MMF-IP (payout, reinvestment and sweep facility) is proposed to be merged into the Periodic Dividend Option under SSIF-ST (payout, reinvestment and sweep facility).

  4. Two new Options viz., Quarterly Dividend and Annual Dividend Options are proposed to be introduced under the Regular and Direct Plans of SSIF - ST from the Effective Date. Quarterly and Annual Dividend Options under MMF-IP (payout, reinvestment and sweep facility) are proposed to be merged into the Quarterly and Annual Dividend Options under SSIF-ST (payout, reinvestment and sweep facility) respectively.

  5. Investors who have invested in Regular Plan of MMF - IP shall be merged into Regular Plan of SSIF - ST. Similarly, investors who have invested in Direct Plan of MMF - IP shall be merged into Direct Plan of the SSIF - ST.

  6. In case of investors in dividend sweep option, the destination scheme will remain unchanged postmerger with Regular/Direct Plan.

The proposal for merger of the schemes has been approved by the Trustees of IDFC Mutual Fund and the Board of Directors of IDFC Asset Management Co. Ltd. SEBI has accorded it’s no objection for this merger.

As per the SEBI (Mutual Funds) Regulations, 1996 modification mentioned above inter alia the merger of schemes is considered as change in the fundamental attribute of the Scheme/MMF-IP, in terms of regulation 18(15A) of SEBI (Mutual Funds) Regulations, investors in MMF-IP are given an option to exit (redeem / switch-out) at the prevailing Net Asset Value without any exit load, in case they do not wish to continue in the Scheme in view of the proposed merger. The period of this no load exit offer is valid for a period of 30 days from Wednesday, April 11, 2018 to Friday, May 11, 2018 (both days inclusive). The normal redemption / switch request form may be used for this purpose and submitted at any of the IDFC AMC / CAMS ISCs. The no load exit option will be available only to those investments in the Scheme made prior to Wednesday, April 11, 2018.

Such exit option will not be available to unitholders whose units have been pledged or encumbered their units in the Scheme and Mutual Fund has been instructed to mark a pledge/lien on such units, unless the release of the pledge/ lien is obtained and appropriately communicated to AMC / Mutual Fund prior to applying for redemption/switch-out.

Unitholders who do not exercise the exit option on or before Friday, May 11, 2018 would be deemed to have consented to the proposed change. It may be noted that the offer to exit is merely an option and is not compulsory.

All other features, terms and conditions of the Scheme/ MMF-IP, as stated in the Scheme Information Document (SID) & the Key Information Memorandum (KIM) of the Scheme, read with the addenda issued from time to time, remain unchanged.

As regards the unitholders who redeem their investments during the Exit Option Period, the tax consequences as set forth in the Statement of Additional Information of IDFC Mutual Fund and Scheme Information Document of the Scheme would apply. In view of individual nature of tax consequences, unitholders are advised to consult their financial / tax advisor for detailed tax advice.

The Notice - Cum - Addendum forms an integral part of the SID and KIM of the Scheme, read with the addenda.

(Mutual Fund investments are subject to market risks, read all scheme related documents carefully.)

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