HDFC Developed World Indexes Fund of Funds - NFO SID 25-08 ...
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SCHEME INFORMATION DOCUMENT
HDFC Developed World Indexes Fund of Funds
An open ended fund of funds scheme investing in units/shares of overseas Index Funds and/or
ETFs which will in aggregate track the MSCI World Index
This product is suitable for investors who are seeking*: Riskometer#
● Returns that closely correspond to the performance of the MSCI
World Index, subject to tracking errors, over long term.
● Investments in units/shares of overseas equity Index Funds and/or
ETFs.
*Investors should consult their financial advisers, if in doubt about whether the
product is suitable for them.
# The product labeling assigned during the NFO is based on internal assessment
of the scheme characteristics or model portfolio and the same may vary post NFO
when the actual investments are made.
For latest riskometer, investors may refer to the Monthly Portfolios disclosed on
the website of the Fund viz. www.hdfcfund.com
Offer of Units of Rs. 10 each during the New Fund Offer (NFO)
and Continuous Offer of Units at Applicable NAV
New Fund Offer (NFO) Opens on: September 14, 2021
New Fund Offer (NFO) Closes on: September 28, 2021
Scheme will re-open for continuous Sale and Repurchase within 5 business days from
the date of allotment of units under NFO
Name of Mutual Fund (Fund) : HDFC Mutual Fund
Name of Asset Management Company (AMC) : HDFC Asset Management Company Limited
Name of Trustee Company : HDFC Trustee Company Limited
Addresses, Website of the entities:
Address:
Asset Management Company (AMC) : Trustee Company :
HDFC Asset Management Company Limited HDFC Trustee Company Limited
A Joint Venture with Standard Life Investments Registered Office :
Registered Office : HDFC House, 2nd Floor, H.T. Parekh Marg, 165-166,
HDFC House, 2nd Floor, H.T. Parekh Marg, 165-166, Backbay Reclamation, Churchgate, Mumbai - 400 020.
Backbay Reclamation, Churchgate, Mumbai - 400 020. CIN No. U65991MH1999PLC123026
CIN No: L65991MH1999PLC123027
Website:
www.hdfcfund.com
The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual
Funds) Regulations, 1996, (herein after referred to as SEBI (MF) Regulations) as amended till date, and filed with SEBI,
along with a Due Diligence Certificate from the AMC. The units being offered for public subscription have not been
approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document.
The Scheme Information Document sets forth concisely the information about the Scheme that a prospective investor ought to know
before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document
after the date of this Document from the Mutual Fund/Investor Service Centres (ISCs)/Website/Distributors or Brokers.
The investors are advised to refer to the Statement of Additional Information (SAI) for details of HDFC Mutual Fund,
Tax and Legal issues and general information on www.hdfcfund.com
SAI is incorporated by reference (is legally a part of the Scheme Information Document). For a free copy of the current
SAI, please contact your nearest Investor Service Centre or log on to our website - www.hdfcfund.com
The Scheme Information Document should be read in conjunction with the SAI and not in isolation.
This Scheme Information Document is dated August 30, 2021.TABLE OF CONTENTS
Page No. Page No.
1 Highlights/Summary of The Scheme............................. 3 B. ONGOING OFFER DETAILS
● Ongoing Offer Period.................................. 36
I. Introduction
● Ongoing Price for subscription (purchase)/
A. Risk Factors......................................................... 6 switch-in (from other schemes/plans of the
B. Requirement Of Minimum Investors In The Scheme 11 mutual fund) by investors............................. 37
C. Special Considerations........................................ 11 ● Ongoing Price for redemption (sale)/switch-
outs (to other schemes/plans of the mutual
D. Definitions.......................................................... 13
fund) by investors......................................... 37
E. Abbreviations...................................................... 18
● Cut off timing for subscriptions/redemptions/
F. Due Diligence By The Asset Management switches....................................................... 37
Company........................................................... 19
● Where can the applications for purchase/
G. Rationale And Product Differentiation................... 19 redemption/switches be submitted?.............. 38
● Minimum amount for purchase/redemption/
Ii. Information About The Scheme
switches....................................................... 39
A. Type of The Scheme............................................ 20
● Minimum balance to be maintained and
B. What Is The Investment Objective of The Scheme? 20 consequences of non-maintenance............... 39
C. How Will The Scheme Allocate Its Assets?............. 20 ● Special Products available............................ 39
D. Where Will The Scheme Invest?............................ 21 ● Account Statements...................................... 57
E. What Are The Investment Strategies?.................... 23
● Dividend..................................................... 58
F. Creation of Segregated Portfolio.......................... 24
● Redemption................................................. 58
G. Fundamental Attributes........................................ 26
● Delay in payment of redemption/repurchase
H. How Will The Scheme Benchmark Its Performance? 26 proceeds..................................................... 61
I. Who Manages The Scheme?............................... 27 ● Tax Status of Investors.................................. 61
J. What Are The Investment Restrictions?.................. 27
C. PERIODIC DISCLOSURES
K. How Has The Scheme Performed?....................... 28
● Net Asset Value............................................ 62
L. Additional Scheme Related Disclosure(S).............. 28
● Daily Performance Disclosure (after scheme
completes one year of existence)................... 62
Iii. Units And Offer
● Portfolio Disclosure...................................... 62
A. New Fund Offer (Nfo)
● Monthly Average Asset under Management
● New Fund offer Period................................. 29 (Monthly AAUM) Disclosure.......................... 62
● New Fund offer Price.................................... 29 ● Product Labelling......................................... 62
● Minimum Amount for Application in the NFO 29 ● Half Yearly Results........................................ 63
● Minimum Target amount.............................. 29 ● Annual Report............................................. 63
● Maximum Amount to be raised (if any).......... 29 ● Disclosures with respect to Segregated
Portfolio, if any............................................ 63
● Plans/options offered................................... 29
● Associate Transactions.................................. 63
● Dividend Policy............................................ 30
● Taxation...................................................... 63
● Allotment..................................................... 30
● Investor services........................................... 65
● Refund........................................................ 31
D. COMPUTATION OF NAV.................................. 66
● Who Can Invest........................................... 31
● Where can you submit the filled up applications 33 IV. FEES AND EXPENSES
● How to Apply............................................... 33 A. New Fund Offer (Nfo) Expenses......................... 67
● Listing......................................................... 34 B. Annual Scheme Recurring Expenses..................... 67
● Special Products/facilities available C. Transaction Charges........................................... 69
during the NFO........................................... 34 D. Load Structure..................................................... 69
● The policy regarding re-issue of repurchased E. Waiver of Load For Direct Applications................. 69
units, including the maximum extent, the F. Stamp Duty on Allotment/Transfer of Units*.......... 70
manner of reissue, the entity (the Scheme or
the AMC) involved in the same..................... 35
V. RIGHTS OF UNITHOLDERS..................................... 70
● Restrictions, if any, on the right to freely
retain or dispose of units being offered......... 35 VI. PENALTIES, PENDING LITIGATIONS....................... 71
HDFC Developed World Indexes FOF Sid 2HIGHLIGHTS/SUMMARY OF THE SCHEME
Name of the Scheme HDFC Developed World Indexes Fund of Funds (HMWIFOF)
Category of the Scheme Overseas Fund of Funds
Type of the Scheme An open ended fund of funds scheme investing in units/shares of overseas Index Funds and/or
ETFs which will in aggregate track the MSCI World Index
Investment Objective The investment objective of the Scheme is to provide long-term capital appreciation by passively
investing in units/shares of overseas Index Funds and/or ETFs which will in aggregate closely
correspond to the MSCI World Index, subject to tracking errors.
There is no assurance that the investment objective of the Scheme will be realized.
Liquidity The Scheme being an open-ended scheme will offer Units for Sale/Switch-in and Redemption/
Switch-out on every Business Day at NAV based prices when the Scheme re-opens for ongoing
transactions (after the NFO).
As per SEBI (MF) Regulations, the Mutual Fund shall despatch redemption proceeds within 10
Business Days from the date of redemption. A penal interest of 15% or such other rate as may be
prescribed by SEBI from time to time, will be paid by the AMC in case the redemption proceeds
are not dispatched within 10 Business Days from the date of redemption. However, under normal
circumstances, the Mutual Fund would endeavour to pay the redemption proceeds within 5 Business
Days (subject to these days being business days for the Underlying Schemes also) of from the date
of redemption. Please refer to section “Redemption” on Page 58 for details.
Benchmark Index MSCI World Index (Net Total Return Index) (Due to time zone difference, benchmark performance
will be calculated with a day’s lag)
Transparency/NAv The AMC will calculate and disclose the first NAVs of the Scheme not later than 5 Business Days
Disclosure) from the date of allotment of units under the NFO Period.
Subsequently, the AMC will calculate and disclose the NAVs under the Scheme at the close of every
Business Day by 10:00 a.m. on the next Business day in the following manner:
i) Displayed on the website of the Mutual Fund (www.hdfcfund.com)
ii) Displayed on the website of Association of Mutual Funds in India (AMFI) (www.amfiindia.com).
iii) Any other manner as may be specified by SEBI from time to time.
The Net Asset Value (NAV) of Segregated Portfolio, if any, shall be declared on daily basis.
Mutual Fund/AMC will provide facility of sending latest available NAVs to unitholders through SMS,
upon receiving a specific request in this regard.
AMC shall update the NAVs on the website of the Fund and AMFI by 10:00 a.m. on the next
Business day. In case of any delay in uploading on AMFI website, the reasons for such delay would
be explained to AMFI in writing. If the NAVs are not available before commencement of business
hours on the following day due to any reason, Mutual Fund shall issue a press release providing
reasons and explaining when the Mutual Fund would be able to publish the NAVs.
The Mutual Fund/AMC will disclose portfolio (along with ISIN) of the Scheme in the prescribed
format, as on the last day of the month/half-year i.e. March 31 and September 30, on its website
viz. www.hdfcfund. com and on the website of Association of Mutual Funds in India (AMFI) viz.
www.amfiindia.com within 10 days from the close of each month/half-year respectively. In case of
unitholders whose e-mail addresses are registered, the Mutual Fund/AMC will send via email both
the monthly and half-yearly statement of scheme portfolio within 10 days from the close of each
month/half-year respectively. Mutual Fund/AMC will publish an advertisement every half-year in
the all India edition of at least two daily newspapers, one each in English and Hindi, disclosing
the hosting of the half-yearly statement of the Scheme portfolio on its website and on the website
of Association of Mutual Funds in India (AMFI). Mutual Fund/AMC will provide a physical copy
of the statement of its Scheme portfolio, without charging any cost, on specific request received
from a unitholder.
Loads Entry Load: Not Applicable.
(For Lumpsum Purchases
Pursuant to SEBI Circular No. SEBI/IMD/CIR No.4/168230/09 dated June 30, 2009, no entry load
and Investments through
will be charged by the Scheme to the investor.
SIP/STP)
Upfront commission shall be paid directly by the investor to the ARN Holder (AMFI registered
Distributor) based on the investors’ assessment of various factors including the service rendered
by the ARN Holder.
3 HDFC Developed World Indexes FOF SidExit Load:
● Exit Load of 1.00% is payable if Units are redeemed/switched-out within 30 days from the
date of allotment of units.
● No Exit Load is payable if Units are redeemed/switched-out after 30 days from the date of
allotment. In respect of Systematic Transactions such as SIP, GSIP, Flex SIP, STP, Flex STP, Swing
STP, Exit Load, if any, prevailing on the date of registration/enrolment shall be levied.
For further details on load structure refer to the section 'Load Structure' on Page 68.
Plans/Options Plans: Regular & Direct
Regular Plan is for investors who wish to route their investment through any distributor. Direct Plan
is for investors who wish to invest directly without routing the investment through any distributor.
Regular and Direct Plans offer Growth Option:
Default Plan
Investors should indicate the Plan viz. Regular/Direct for which the subscription is made by indicating
the choice in the appropriate box provided for this purpose in the application form. In case of
valid applications received without indicating any choice of Plan, the application will be processed
for the Plan as under:
Scenario ARN Code mentioned Plan mentioned by Default Plan to be
by the investor the investor 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
In cases of wrong/invalid/incomplete ARN codes are mentioned on the application form, the
application shall be processed under Regular Plan. The AMC shall contact and obtain the correct
ARN code within 30 calendar days of the receipt of the application form from the investor/distributor.
In case, the correct code is not received within 30 calendar days, the AMC shall reprocess the
transaction under Direct Plan from the date of application without any exit load.
The financial transactions# of an investor where his distributor’s AMFI Registration Number (ARN)
has been suspended temporarily or terminated permanently received during the suspension period
shall be processed under “Direct Plan” and continue to be processed under “Direct Plan” perpetually
unless after suspension of ARN is revoked, unitholder makes a written request to process the future
instalments/investments under “Regular Plan”. Any financial transactions requests received through
the stock exchange platform, from any distributor whose ARN has been suspended, shall be rejected.
# Financial Transactions shall include all Purchase/Switch requests (including under fresh
registrations of Systematic Investment Plan (“SIP”)/Systematic Transfer Plan (“STP”) or under SIPs/
STPs registered prior to the suspension period).
Minimum Application During NFO Period
Amount
Purchase: Rs. 5,000/- and any amount thereafter.
During continuous offer period (after scheme re-opens for repurchase and sale):
Purchase: Rs. 5,000/- and any amount thereafter*
Additional Purchase: Rs. 1,000/- and any amount thereafter
*applicable if investing for the first time in a folio in the Scheme
Note: Allotment of units will be done after deduction of applicable stamp duty and transaction
charges, if any.
Applications Supported Investors may apply through the ASBA process during the NFO period of the Scheme by filling
By Blocked Amount in the ASBA form and submitting the same to their respective banks, which in turn will block the
(ASBA) amount in the account as per the authority contained in ASBA form, and undertake other tasks as
per the procedure specified therein.
For complete details on ASBA process refer Statement of Additional Information (SAI) made available
on our website www.hdfcfund.com.
HDFC Developed World Indexes FOF Sid 4Dematerialization The Unit holders would have an option to hold the Units in demat form or account statement (non-
of Units demat) form. Units held in Demat Form are freely transferable. The Applicant intending to hold
Units in demat form will be required to have a beneficiary account with a Depository Participant
(DP) of the NSDL/CDSL and will be required to mention in the application form DP's Name, DP ID
No. and Beneficiary Account No. with the DP at the time of purchasing Units.
Transaction In accordance with SEBI circular No. Cir/IMD/DF/13/2011 dated August 22, 2011, as amended
Charges from time to time, HDFC Asset Management Company Limited (“the AMC”)/Mutual Fund shall
deduct the Transaction Charges on purchase/subscription received from the investors investing
through a valid ARN Holder i.e. AMFI registered Distributor including transactions routed through
Stock exchange(s) platform viz. NSE Mutual Fund Platform (“NMF II”) and BSE Mutual Fund Platform
(“BSE StAR MF”) (provided the distributor has opted-in to receive the Transaction Charges for the
Scheme type) as under:
TRANSACTION CHARGES IN CASE OF INVESTMENTS THROUGH SIP:
Transaction Charges in case of investments through SIP are deductible only if the total commitment
of investment (i.e. amount per SIP installment x No. of installments) amounts to Rs. 10,000 or
more. In such cases, Transaction Charges shall be deducted in 3-4 installments.
(i) First Time Mutual Fund Investor (across Mutual Funds):
Transaction Charge of Rs. 150/- per purchase/subscription of Rs.10,000/- and above will
be deducted from the purchase/subscription amount for payment to the distributor of such
investor and the balance shall be invested.
(ii) Investor other than First Time Mutual Fund Investor:
Transaction Charge of Rs. 100/- per purchase/subscription of Rs.10,000/- and above will
be deducted from the purchase/subscription amount for payment to the distributor of such
investor and the balance shall be invested.
Identification of investors as “first time” or “existing” will be based on Permanent Account
Number (PAN) at the First/Sole Applicant/Guardian level. Hence, Unitholders are urged to
ensure that their PAN/KYC is updated with the Fund. Unitholders may approach any of the
Official Points of Acceptances of the Fund i.e. Investor Service Centres (ISCs) of the Fund/
offices of our Registrar and Transfer Agent, M/s. Computer Age Management Services Ltd. in
this regard.
It may be noted that Transaction Charges shall not be deducted:
(a) where the distributor of the investor has not opted to receive any Transaction Charges;
(b) for purchases/subscriptions/total commitment amount in case of SIP of an amount less than
Rs. 10,000/-;
(c) For transactions other than purchases/subscriptions relating to new inflows i.e. through Switches/
Systematic Transfers/Transfer of IDCW Plan (TIP Facility) etc.;
(d) for purchases/subscriptions made directly with the Fund (i.e. not through any distributor);
(e) for purchases/subscriptions routed through Stock exchange(s) through stock brokers as
applicable.
IMPORTANT
Before investing, investors should also ascertain about any further changes pertaining to scheme such as features,
load structure, etc. made to this Scheme Information Document by issue of addenda/notice after the date of this
Document from the AMC/Mutual Fund/Investor Service Centres (ISCs)/Website/Distributors or Brokers or Investment
Advisers holding valid registrations.
5 HDFC Developed World Indexes FOF SidINTRODUCTION ● The Scheme’s performance may be impacted by exit
loads or other redemption charges that may be charged
A. RISK FACTORS at the time of redemption from the Underlying Schemes.
● Switch-out from an Underlying Scheme and Switch-in
■ Standard Risk Factors: to another Underlying Scheme will be subject to the
● Investment in Mutual Fund Units involves investment risks provisions of applicability of NAV as also the pay-out
such as trading volumes, settlement risk, liquidity risk, default and pay-in cycles applicable to redemption/purchase
risk including the possible loss of principal. under the relevant schemes. In times of extreme volatility,
this may have impact on the NAV of the Scheme,
● As the price/value/interest rates of the securities in which the particularly at the time of portfolio rebalancing.
Scheme invests fluctuates, the value of your investment in
the Scheme may go up or down depending on the various ● Since the Scheme will invest in overseas mutual funds,
factors and forces affecting the capital markets and money the net assets, distributions and income of the Scheme
markets. may be affected adversely by fluctuations in the value
of foreign currencies relative to the Indian Rupee.
● Past performance of the Sponsors and their associates/AMC/
Mutual Fund does not guarantee future performance of the ● The processing of redemption requests within 10
Scheme of the Mutual Fund. Business Days of the Redemption date will be subject
to the ability of the Scheme to liquidate units of the
● The name of the Scheme does not in any manner indicate Underlying Schemes. The payment of redemption
either the quality of the Scheme or its future prospects and proceeds under the Scheme will be subject to receipt
returns. of redemption proceeds from the Underlying Schemes.
● The Sponsors are not responsible or liable for any loss ● The repatriation of investments to India may also
resulting from the operation of the Scheme beyond the be hampered by changes in regulations concerning
initial contribution of Rs. 1 lakh each made by them towards exchange controls or political circumstances as well
setting up the Fund. as any other restrictions on investment. The Scheme
● The present Scheme is not a guaranteed or assured return may have to pay applicable taxes on gains from such
Scheme. investment.
● Transactions with Underlying Funds shall be subject to
■ Scheme Specific Risk Factors
their Business day, cut-off timings, valuation norms,
The specific risk factors related to the Scheme include, but which may be different from those prevailing in India.
are not limited to the following:
● As regards investment in overseas mutual funds, the
(i) Scheme Specific Risk Factors Net Asset Value (NAV) of the Scheme will be calculated
based on the last available NAV of the overseas mutual
● Investors will bear the recurring expenses of fund schemes and the prevailing exchange rate on that
the Scheme in addition to the expenses of the date.
Underlying Schemes. Thus, the Scheme returns may
be lower than the returns investors may obtain by ● Treaty/Tax Risk: The Scheme relies on the Double Tax
directly investing in the Underlying Schemes. Further, Avoidance Agreement (DTAA) between India and
expenses charged being dependent on the structure Luxembourg/Ireland/other countries for relief from
and weightage of the Underlying Schemes, may lead to certain Indian taxes. Treaty renegotiation (particularly
non-uniform charging of expenses over a period of time. to introduce a limitation on benefits clause) or future
Portfolio rebalancing may result in higher transaction legislative or regulatory changes or other administrative
costs. or legal developments, may result in higher taxes and/
or lower returns for the Scheme.
● While it would be the endeavour of the Fund Manager
of the Scheme to invest in the Underlying Schemes in ● The Portfolio disclosure by the Scheme may be limited
a manner, which will seek to track the returns of MSCI to providing the particulars of the Underlying Schemes
World Index, the benchmark Index of the Scheme, the where the Scheme has invested and may not include
performance of the Underlying Schemes may vary which the investments made by the Underlying Schemes.
may lead to the returns of the Scheme being adversely ● There exists a possibility that the investment policy and/
impacted. or attributes of the Underlying Schemes change over
● Further, the Scheme’s tracking error may arise due to time. In such circumstances, the fund manager will
various reasons such as: seek to continue to remain invested in such Underlying
Schemes as long as it does not challenge the investment
o Minimum subscription and redemption criteria of strategy of the Scheme. Else the fund manager may
Underlying Schemes, expenses to be incurred by invest in other overseas mutual fund schemes, with
the Scheme for the same. investment policy and/or attributes which are in
o Indian mutual funds are permitted to invest accordance with the investment strategy of the Scheme.
in foreign securities/Overseas ETFs subject to
maximum specified limits. Accordingly, the Scheme (ii) Risk Factors related to Underlying Schemes
may not be able to invest upto the desired level in ● The Scheme will primarily invest in Overseas ETFs
the ETFs and may have to invest in alternate Index and/or Index funds. Accordingly, the risk factors
Funds. relating to investment in the Underlying Schemes
● Movements in the Net Asset Value (NAV) of the will be relevant such as performance, volatility and
Underlying Schemes will impact the performance of the liquidity of underlying stocks, money markets/fixed
Scheme. Tracking error of the Underlying Schemes will income instruments, derivative instruments, offshore
affect the performance of the Scheme. investments, stock lending, changes in credit rating,
HDFC Developed World Indexes FOF Sid 6trading volumes, settlement periods, price/interest rate impact negatively on another Share Class.
risk, basis risk, spread risk, re-investment risk, exchange Liquidity Risk: There is a risk that the Underlying
risks, including the possible loss of capital etc. Scheme will suffer liquidity issues because of unusual
Additional information in relation to the Underlying market conditions, an unusually high volume of
Index performance, characteristics, constituents, sector redemption requests or other reasons. In such cases
and country weights, methodology of construction and the Underlying Scheme may not be able to pay
maintenance, rebalancing dates and other general redemption proceeds in full or within the time period
information is available on the index provider’s website stated in scheme offer document. Further, in case of
https://www.msci.com/constituents. liquidity issue, the payment made shall be subject to
Tracking Error Risk: Tracking error is the divergence recovery by the Underlying Scheme, net of expenses,
of the Underlying Schemes from that of their Underlying etc. hence possibility of loss of capital cannot be ruled
Index. Tracking error may occur because of differences out. Large repurchases in Underlying Schemes might
between the securities held in the Underlying Scheme’s result in them being forced to sell assets at a time and
portfolio and those included in the Underlying Index, price at which it would normally prefer not to dispose
pricing differences (including differences between a of those assets which may be materially adverse to the
security’s price at the local market close and the intrinsic Underlying Schemes.
value of a security at the time of calculation of the NAV), Liquidation/winding up/Merger of Overseas
transaction costs, the Underlying Scheme’s holding of Mutual Funds/ETFs:
cash, differences in timing of the accrual of dividends,
changes to the Underlying Index or the need to meet o Credit Suisse Index Fund (Lux) may be liquidated in
various new or existing regulatory requirements. This risk accordance with Luxembourg law if the minimum
may be heightened during times of increased market capital requirement of EUR 1,250,000 is not met
volatility or other unusual market conditions. or if extraordinary general meeting of share/
unit holders with requisite quorum so decides.
The Underlying Schemes may invest in a representative The net liquidation proceeds of the Subfunds
selection of securities from the benchmark index (i.e. Underlying Schemes) shall be distributed pro
(optimized sampling) rather than in all the securities in rata to the share/unit holders of these Underlying
the Index. Selection is facilitated by a system that takes Schemes.
account of both quantitative factors as well as factors
that determine returns. The portfolio may be limited to a o An Underlying Scheme may be liquidated and
representative selection of securities from the benchmark shares/units thereunder may be compulsorily
index owing to the fund’s own investment restrictions redeemed if the shareholders/unit holders decide
or owing to other legal or statutory restrictions, to costs to or if Board of Directors of the Underlying Scheme
and expenses incurred by the fund, or to the illiquidity pass a resolution, that the scheme is no longer
of certain securities. be appropriately managed within the interests of
the share/unit holders. The Net Asset Value of the
Management Risk: As the Underlying Schemes may shares/units of the relevant Underlying Scheme
not fully replicate their respective Underlying Index, it will be paid out on the date of the mandatory
is subject to the risk that investment strategy may not redemption.
produce the intended results.
Two or more Underlying Schemes may merge
Concentration Risk: Each Underlying Scheme may be with each other. An overseas mutual fund and/
susceptible to an increased risk of loss to the extent that or its Underlying Scheme may be merged with
the investments are concentrated in the securities of a another overseas mutual fund and/or its Underlying
particular issuer or issuers, country, group of countries, Scheme(s) on a domestic or cross-border basis.
region, market, industry, group of industries, sector or
asset class. o CSIF (IE) MSCI USA Blue UCITS ETF (one of the
Underlying Schemes, referred to as “this fund”) may
Currency Risk: As the Underlying Schemes will be wound up pursuant to section 37 of the ICAV
invest in securities which are denominated in foreign Act. Further, all of the shares/units of any Class
currencies, fluctuations in the exchange rates of these of this fund may be repurchased in circumstances
foreign currencies may have an impact on the income laid down in this fund’s offer document. Manner of
and value of the Underlying Scheme. Thus, returns to winding up/repurchase and consequent payment to
investors are the result of a combination of returns from be made to the share/unit holders will be governed
investments and from movements in exchange rates. by the applicable law.
Thus, the Indian rupee equivalent of the net assets,
distribution and income may be adversely affected by In such scenarios, the realization by the Scheme and
changes in the exchange rates of respective foreign consequently by the Unit holders of the Scheme, shall
currencies relative to the Indian Rupee. be as mentioned in the relevant Underlying Scheme
documents and as per applicable laws.
Currency Hedging: An Underlying Scheme may
enter into currency exchange transactions and/or use Investors should refer to the offering documents
derivatives to seek to protect against fluctuation as a for the scheme specific risk factors and special
result of changes in currency exchange rates. Although considerations of the respective Underlying Schemes
these transactions are intended to minimise the risk of available at the below link (To view the Prospectus,
loss due to a decline in the value of the hedged currency, click on link below, Click on the Tab “Publications”
they also limit any potential gain that might be realised and click on “Prospectus (EN/English)”:
should the value of the hedged currency increase. The CSIF (IE) MSCI USA Blue UCITS ETF - https://amfunds.
successful execution of a hedging strategy cannot be credit-suisse.com/lu/en/institutional/fund/detail/
assured. Hedging activity at Share Class level may IE00BJBYDR19#
7 HDFC Developed World Indexes FOF SidCSIF (Lux) Equity Europe - https://amfunds.credit-suisse. economic deterioration, bi-lateral conflict leading to
com/lu/en/institutional/fund/detail/LU1871077506# immobilisation of the overseas financial assets and
CSIF (Lux) Equity Japan - https://amfunds.credit-suisse. the prevalent tax laws of the respective jurisdiction for
com/lu/en/institutional/fund/detail/LU0985871796# execution of trades or otherwise.
CSIF (Lux) Equity Pacific ex Japan - https://amfunds. To manage risks associated with foreign currency and
credit-suisse.com/lu/en/institutional/fund/detail/ interest rate exposure, the Mutual Fund may if thought
LU0941629049 fit use derivatives for efficient portfolio management
including hedging and in accordance with conditions
CSIF (Lux) Equity Canada - https://amfunds.credit-suisse. as may be stipulated by SEBI/RBI from time to time.
com/lu/en/institutional/fund/detail/LU1419778490
(iv) Risk factors associated with investing in Equities
(iii) Risk factors associated with investing in Foreign
Securities ● Investments by the Underlying Schemes in equity shares
of the constituents of the underlying Index/ETFs are
Currency Risk: Moving from Indian Rupee (INR) to any subject to price fluctuation on daily basis. The volatility
other currency entails currency risk. To the extent that in the value of equity is due to various micro and
the assets of the Scheme will be invested in securities macroeconomic factors like performance of companies
denominated in foreign currencies, the Indian Rupee whose stock comprises the underlying portfolio,
equivalent of the net assets, distributions, if any and economic and political developments, changes in
income may be adversely affected by changes in the interest rates, changes is government policies, etc.
value of certain foreign currencies relative to the Indian inflation and other monetary factors affecting the
Rupee. securities markets. This may have adverse impact on
Interest Rate Risk: The pace and movement of individual securities/sector and consequently on the
interest rate cycles of various countries, though loosely NAV of Scheme.
co-related, can differ significantly. Hence by investing ● Listing and trading of the Underlying ETFs are
in securities of countries other than India, the Scheme undertaken on the Stock Exchanges within the rules,
stand exposed to their interest rate cycles. regulation and policy of the Stock Exchange and
Credit Risk: Investment in Foreign Debt Securities are Regulator. Any change thereto would have a bearing
subject to the risk of an issuer’s inability to meet interest on the trading of the units/shares of the Underlying
and principal payments on its obligations and market ETFs and its prices.
perception of the creditworthiness of the issuer. This is
substantially reduced since the SEBI (MF) Regulations (v) Risk factors associated with investing in Fixed
stipulate investments only in debt instruments with rating Income Securities
not below investment grade by accredited/registered ● The Net Asset Value (NAV) of the Scheme, to the extent
credit rating agency. invested in Debt and Money Market instruments, will
Taxation Risk: In addition to the disclosure related be affected by changes in the general level of interest
to taxation mentioned under section “Special rates. The NAV of the Scheme is expected to increase
Consideration” on Page 11, Investment in Foreign from a fall in interest rates while it would be adversely
Securities poses additional challenges based on the affected by an increase in the level of interest rates.
tax laws of each respective country or jurisdiction. The ● Money market instruments, while fairly liquid, lack a
Scheme may be subject to a higher level of taxes than well developed secondary market, which may restrict
originally anticipated and or dual taxation. The Scheme the selling ability of the Scheme and may lead to the
may be subject to withholding or other taxes on income Scheme incurring losses till the security is finally sold.
and/or gains arising from its investment portfolio.
Further, such investments are exposed to risks associated ● Investments in money market instruments involve credit
with the changing/ evolving tax / regulatory regimes of risk commensurate with short term rating of the issuers.
all the countries where the Scheme invests. All these may ● Investment in Debt instruments are subject to varying
entail a higher outgo to the Scheme by way of taxes, degree of credit risk or default (i.e. the risk of an
transaction costs, fees etc. thus adversely impacting its issuer’s inability to meet interest or principal payments
NAV; resulting in lower returns to an Investor. on its obligations) or any other issues, which may have
Legal and Regulatory Risk: Legal and regulatory their credit ratings downgraded. Changes in financial
changes could occur during the term of the Scheme conditions of an issuer, changes in economic and
which may adversely affect it. If any of the laws and political conditions in general, or changes in economic
regulations currently in effect should change or any or and political conditions specific to an issuer, all of
new laws or regulations should be enacted, the legal which are factors that may have an adverse impact
requirements to which the Scheme and the investors on an issuer’s credit quality and security values. The
may be subject could differ materially from current Investment Manager will endeavour to manage credit
requirements and may materially and adversely affect risk through in-house credit analysis. This may increase
the Scheme and the investors. Legislation/ Regulatory the risk of the portfolio.
guidelines could also be imposed retrospectively. ● Government securities where a fixed return is offered
Country Risk: The Country risk arises from the run price-risk like any other fixed income security.
inability of a country, to meet its financial obligations. Generally, when interest rates rise, prices of fixed
It is the risk encompassing economic, social and income securities fall and when interest rates drop, the
political conditions in a foreign country, which might prices increase. The extent of fall or rise in the prices
adversely affect foreign investors’ financial interests. is a function of the existing coupon, days to maturity
In addition, country risks would include events such and the increase or decrease in the level of interest
as introduction of extraordinary exchange controls, rates. The new level of interest rate is determined by the
HDFC Developed World Indexes FOF Sid 8rates at which government raises new money and/or make intended securities purchases, due to settlement
the price levels at which the market is already dealing problems, could cause the Scheme to miss certain
in existing securities. The price-risk is not unique to investment opportunities. Similarly, the inability to sell
Government Securities. It exists for all fixed income securities held in the Scheme’s portfolio, due to the
securities. However, Government Securities are unique absence of a well developed and liquid secondary
in the sense that their credit risk generally remains zero. market for debt securities, may result at times in potential
Therefore, their prices are influenced only by movement losses to the Scheme in the event of a subsequent decline
in interest rates in the financial system. in the value of securities held in the Scheme's portfolio.
● Different types of fixed income securities in which the (vi) Risk factors associated with Repo in Corporate
Scheme would invest as given in the Scheme Information Debt Securities
Document carry different levels and types of risk.
Accordingly, the Schemes’ risk may increase or decrease In repo transactions, also known as a repo or sale
depending upon its investment pattern. e.g. corporate repurchase agreement, securities are sold with the seller
bonds carry a higher level of risk than Government agreeing to buy them back at later date. The repurchase
securities. Further even among corporate bonds, AAA price should be greater than the original sale price, the
rated bonds are comparatively less risky than AA rated difference effectively representing interest. A repo in
bonds. corporate debt securities is economically similar to a
secured loan, with the buyer receiving corporate debt
● The AMC may, considering the overall level of risk of securities as collateral to protect against default. Some
the portfolio, invest in lower rated/unrated securities of the risks associated with repo in corporate debt are
offering higher yields as well as zero coupon securities given below:
that offer attractive yields. This may increase the absolute
level of risk of the portfolio. Counterparty Risk: Counterparty risk refers to the
inability of the seller to meet the obligation to buy back
● As zero coupon securities do not provide periodic securities at the contracted price on the contracted
interest payments to the holder of the security, these date. In case of over the counter (OTC) repo trades,
securities are more sensitive to changes in interest rates. the investment manager will endeavour to manage
Therefore, the interest rate risk of zero coupon securities counterparty risk by dealing only with counterparties
is higher. The AMC may choose to invest in zero coupon having strong credit profiles. Also, the counter-party risk
securities that offer attractive yields. This may increase is to an extent mitigated by taking collateral equivalent
the risk of the portfolio. Zero coupon or deep discount in value to the transaction after knocking off a minimum
bonds are debt obligations that do not entitle the holder haircut on the intrinsic value of the collateral. In the event
to any periodic payment of interest prior to maturity of default by the repo counterparty, the scheme shall
or a specified date when the securities begin paying have recourse to the corporate debt securities. In case
current interest and therefore, are generally issued and the repo transaction is executed on exchange platform
traded at a discount to their face values. The discount approved by RBI/SEBI, the exchange may also provide
depends on the time remaining until maturity or the settlement guarantee.
date when securities begin paying current interest. It
also varies depending on the prevailing interest rates, Collateral Risk: Collateral risk arises when the
liquidity of the security and the perceived credit risk of market value of the securities is inadequate to meet
the Issuer. The market prices of zero coupon securities the repo obligations. This risk can be partly mitigated
are generally more volatile than the market prices of by restricting participation in repo transactions only in
securities that pay interest periodically. corporate debt securities which are approved by credit
risk team. Additionally, to address the risk related to
● The Scheme’s performance may differ from the reduction in market value of corporate debt security held
benchmark index to the extent of the investments held as collateral due to credit rating downgrade, the repo
in the debt segment, as per the investment pattern contract can incorporate either an early termination
indicated under normal circumstances. of the repo agreement or call for fresh margin to
● Prepayment Risk: Certain fixed income securities give meet the minimum haircut requirement or call for
an issuer the right to call back its securities before their replacement of security with eligible security. Moreover,
maturity date, in periods of declining interest rates. The the investment manager may apply a higher haircut
possibility of such prepayment may force the Scheme to on the underlying security than required as per RBI/
reinvest the proceeds of such investments in securities SEBI regulation to adjust for the illiquidity and interest
offering lower yields, resulting in lower interest income rate risk on the underlying instrument. To mitigate the
for the Scheme. risk of price reduction due to interest rate changes,
● Reinvestment Risk: This risk refers to the interest rate the adequacy of the collateral can be monitored on
levels at which cash flows received from the securities in a daily basis by considering the daily market value &
the Scheme are reinvested. The additional income from applying the prescribed haircut. The fund manager or
reinvestment is the “interest on interest” component. The the exchange can then arrange for additional collateral
risk is that the rate at which interim cash flows can be from the counterparty, within a prespecified period. If
reinvested may be lower than that originally assumed. the counterparty is not able to top-up either in form of
cash/collateral, it would tantamount to early termination
● Settlement risk: Different segments of Indian financial of the repo agreement, and the outstanding amount
markets have different settlement periods and such can be recovered by sale of collateral.
periods may be extended significantly by unforeseen
circumstances. Delays or other problems in settlement (vii) Risk factors associated with investment in Tri-Party
of transactions could result in temporary periods when Repo
the assets of the Scheme are uninvested and no return The Mutual Fund is a member of securities segment
is earned thereon. The inability of the Scheme to and Triparty Repo trade settlement of the Clearing
9 HDFC Developed World Indexes FOF SidCorporation of India (CCIL). All transactions of the units being offered’.
mutual fund in government securities and in Tri- ● At times, due to the forces and factors affecting the
party Repo trades are settled centrally through the capital market, the Scheme may not be able to invest in
infrastructure and settlement systems provided by CCIL; securities falling within its investment objective resulting
thus reducing the settlement and counterparty risks in holding the monies collected by it in cash or cash
considerably for transactions in the said segments. equivalent or invest the same in other permissible
The members are required to contribute an amount securities/investments amounting to substantial
as communicated by CCIL from time to time to the reduction in the earning capability of the Scheme. The
default fund maintained by CCIL as a part of the default Scheme may retain certain investments in cash or cash
waterfall (a loss mitigating measure of CCIL in case of equivalents for its day-to-day liquidity requirements.
default by any member in settling transactions routed
through CCIL). ● The Scheme at times may receive large number of
redemption requests, leading to an asset-liability
As per the waterfall mechanism, after the defaulter’s mismatch and therefore, requiring the investment
margins and the defaulter’s contribution to the default manager to make a distress sale of the securities
fund have been appropriated, CCIL’s contribution leading to realignment of the portfolio and consequently
is used to meet the losses. Post utilization of CCIL’s resulting in higher exposure to lower yield instruments.
contribution if there is a residual loss, it is appropriated
from the default fund contributions of the non-defaulting ● Investment strategy to be adopted by the Scheme
members. Thus, the Scheme is subject to risk of the initial may carry the risk of significant variance between the
margin and default fund contribution being invoked portfolio allocation of the Scheme and the Benchmark
in the event of failure of any settlement obligations. In particularly over a short to medium term period.
addition, the fund contribution is allowed to be used ● Performance of the Scheme may be affected by political,
to meet the residual loss in case of default by the other social, and economic developments, which may include
clearing member (the defaulting member). changes in government policies, diplomatic conditions,
CCIL shall maintain two separate Default Funds in and taxation policies.
respect of its Securities Segment, one with a view to ● While securities that are listed on the stock exchange
meet losses arising out of any default by its members carry lower liquidity risk, the ability to sell these
from outright and repo trades and the other for meeting investments is limited by the overall trading volume
losses arising out of any default by its members from on the stock exchanges and may lead to the Scheme
Triparty Repo trades. The mutual fund is exposed to the incurring losses till the security is finally sold.
extent of its contribution to the default fund of CCIL,
in the event that the contribution of the mutual fund (ix) Risk factors associated with Creation of Segregated
is called upon to absorb settlement/default losses of Portfolio
another member by CCIL, as a result the Scheme may
In the event of creation of Segregated Portfolio in case
lose an amount equivalent to its contribution to the
of a Credit Event, investors’ investments may be subject
default fund.
to following risks:
(viii) General Risk Factors ● Investor holding units of Segregated Portfolio may not
● Securities, which are not quoted on the stock exchanges, able to liquidate their holding till the time recovery of
are inherently illiquid in nature and carry a larger money from the issuer.
amount of liquidity risk, in comparison to securities that ● Listing of units of Segregated Portfolio on recognised
are listed on the exchanges or offer other exit options stock exchange does not necessarily guarantee its
to the investor, including a put option. The AMC may liquidity. There may not be active trading of units on the
choose to invest in permitted unlisted securities that exchange. Further trading price of units on the exchange
offer attractive returns. This may increase the risk of may be significantly lower than the prevailing NAV.
the portfolio.
● Security comprising Segregated Portfolio may not realise
● Trading volumes, settlement periods and transfer any value.
procedures may restrict the liquidity of the investments
made by the Scheme. Different segments of the Indian (x) Risk factors associated with processing of
financial markets have different settlement periods transaction through Stock Exchange Mechanism
and such periods may be extended significantly by The trading mechanism introduced by the Stock
unforeseen circumstances leading to delays in receipt of Exchange(s) is configured to accept and process
proceeds from sale of securities. The NAV of the Units transactions for mutual fund Units in both Physical and
of the Scheme can go up or down because of various Demat Form. The allotment and/or redemption of Units
factors that affect the capital markets in general. through NSE and/or BSE or any other recognised Stock
● As the liquidity of the investments made by the Scheme Exchange(s), on any Business Day will depend upon the
could, at times, be restricted by trading volumes and modalities of processing viz. collection of application
settlement periods, the time taken by the Mutual Fund form, order processing/settlement, etc. upon which the
for redemption of Units may be significant in the event Fund has no control. Moreover, transactions conducted
of an inordinately large number of redemption requests through the Stock Exchange mechanism shall be
or restructuring of the Scheme. In view of the above, governed by the operating guidelines and directives
the Trustee has the right, in its sole discretion, to limit issued by respective recognized Stock Exchange(s).
redemptions (including suspending redemptions) under
certain circumstances, as described on Page 35 under (xi) Disclaimer of MSCI
‘Right to Limit Redemptions’ in Section ‘Restrictions, NETIHER THE SCHEME NOR ANY OF THE UNDERLYING
if any, on the right to freely retain or dispose of SCHEMES (COLLECTIVELY “THE SCHEMES”) ARE SPONSORED,
HDFC Developed World Indexes FOF Sid 10ENDORSED, SOLD OR PROMOTED BY MSCI INC. (“MSCI”), and the units would be redeemed at applicable NAV. The
ANY OF ITS AFFILIATES, ANY OF ITS INFORMATION two conditions mentioned above shall be complied within
PROVIDERS OR ANY OTHER THIRD PARTY INVOLVED IN, each subsequent calendar quarter, on an average basis,
OR RELATED TO, COMPILING, COMPUTING OR CREATING
as specified by SEBI. If there is a breach of the 25% limit by
ANY MSCI INDEX (COLLECTIVELY, THE “MSCI PARTIES”). THE
MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI any investor over the quarter, a rebalancing period of one
AND THE MSCI INDEX NAMES ARE SERVICE MARK(S) OF MSCI OR month would be allowed and thereafter the investor who
ITS AFFILIATES AND HAVE BEEN LICENSED FOR USE FOR CERTAIN is in breach of the rule shall be given 15 days’ notice to
PURPOSES BY CREDIT SUISSE AG AND HDFC ASSET MANAGEMENT redeem his exposure over the 25% limit. Failure on the part
COMPANY LIMITED. NONE OF THE MSCI PARTIES MAKES ANY of the said investor to redeem his exposure over the 25%
REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, TO THE limit within the aforesaid 15 days would lead to automatic
ISSUER OR OWNERS OF THE SCHEMES OR ANY OTHER PERSON OR redemption by the Mutual Fund on the applicable Net Asset
ENTITY REGARDING THE ADVISABILITY OF INVESTING IN FUNDS
Value on the 15th day of the notice period. The Fund shall
GENERALLY OR IN THE SCHEMES PARTICULARLY OR THE ABILITY
OF ANY MSCI INDEX TO TRACK CORRESPONDING STOCK MARKET adhere to the requirements prescribed by SEBI from time
PERFORMANCE. MSCI OR ITS AFFILIATES ARE THE LICENSORS OF to time in this regard.
CERTAIN TRADEMARKS, SERVICE MARKS AND TRADE NAMES AND
OF THE MSCI INDEXES WHICH ARE DETERMINED, COMPOSED AND C. SPECIAL CONSIDERATIONS
CALCULATED BY MSCI WITHOUT REGARD TO THE SCHEMES OR THE
ISSUER OR OWNERS OF THE SCHEMES OR ANY OTHER PERSON OR ● The information set out in the Scheme Information Document
ENTITY. NONE OF THE MSCI PARTIES HAS ANY OBLIGATION TO (SID) and Statement of Additional Information (SAI) are for
TAKE THE NEEDS OF THE ISSUER OR OWNERS OF THE SCHEMES general purposes only and do not constitute tax or legal
OR ANY OTHER PERSON OR ENTITY INTO CONSIDERATION advice. The tax information provided in the SID/SAI does
IN DETERMINING, COMPOSING OR CALCULATING THE MSCI not purport to be a complete description of all potential tax
INDEXES. NONE OF THE MSCI PARTIES IS RESPONSIBLE FOR OR costs, incidence and risks inherent in subscribing to the Units
HAS PARTICIPATED IN THE DETERMINATION OF THE TIMING OF, of Scheme offered by HDFC Mutual Fund. Investors should
PRICES AT, OR QUANTITIES OF THE SCHEMES TO BE ISSUED OR IN
be aware that the fiscal rules/tax laws may change and there
THE DETERMINATION OR CALCULATION OF THE EQUATION BY OR
THE CONSIDERATION INTO WHICH THIS FUND IS REDEEMABLE. can be no guarantee that the current tax position as laid out
herein may continue indefinitely. The applicability of tax laws,
FURTHER, NONE OF THE MSCI PARTIES HAS ANY OBLIGATION if any, on HDFC Mutual Fund/Scheme/investments made by
OR LIABILITY TO THE ISSUER OR OWNERS OF THE SCHEMES OR
ANY OTHER PERSON OR ENTITY IN CONNECTION WITH THE
the Scheme and/or investors and/or income attributable to
ADMINISTRATION, MARKETING OR OFFERING OF THE SCHEMES. or distributions or other payments made to Unitholders are
based on the understanding of the prevailing tax legislations
ALTHOUGH MSCI SHALL OBTAIN INFORMATION FOR INCLUSION
and are subject to adverse interpretations adopted by the
IN OR FOR USE IN THE CALCULATION OF THE MSCI INDEXES
FROM SOURCES THAT MSCI CONSIDERS RELIABLE, NONE OF
relevant authorities resulting in tax liability being imposed
THE MSCI PARTIES WARRANTS OR GUARANTEES THE ORIGINALITY, on the HDFC Mutual Fund/Scheme/Unitholders/Trustee/
ACCURACY AND/OR THE COMPLETENESS OF ANY MSCI INDEX AMC.
OR ANY DATA INCLUDED THEREIN. NONE OF THE MSCI PARTIES In view of the individual nature of the tax consequences, each
MAKES ANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO
BE OBTAINED BY THE ISSUER OF THE SCHEMES, OWNERS OF THE
investor is advised to consult his/her own professional tax
SCHEMES, OR ANY OTHER PERSON OR ENTITY, FROM THE USE OF advisor to determine possible legal, tax, financial or other
ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. NONE OF considerations for subscribing and/or redeeming the Units
THE MSCI PARTIES SHALL HAVE ANY LIABILITY FOR ANY ERRORS, and/or before making a decision to invest/redeem Units.
OMISSIONS OR INTERRUPTIONS OF OR IN CONNECTION WITH The tax information contained in SID/SAI alone may not be
ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. FURTHER, sufficient and should not be used for the development or
NONE OF THE MSCI PARTIES MAKES ANY EXPRESS OR IMPLIED implementation of an investment strategy or construed as
WARRANTIES OF ANY KIND, AND THE MSCI PARTIES HEREBY investment advice. Investors alone shall be fully responsible/
EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY
AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO
liable for any investment decision taken on the basis of this
EACH MSCI INDEX AND ANY DATA INCLUDED THEREIN. WITHOUT document. Neither the Mutual Fund nor the AMC nor any
LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL ANY OF person connected with it accepts any liability arising from
THE MSCI PARTIES HAVE ANY LIABILITY FOR ANY DIRECT, INDIRECT, the use of this information.
SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHER DAMAGES
● The Trustee, AMC, Mutual Fund, their directors or their
(INCLUDING LOST PROFITS) EVEN IF NOTIFIED OF THE POSSIBILITY
OF SUCH DAMAGES. employees shall not be liable for any of the tax consequences
that may arise, in the event that the Schemes are wound up
Note: The above disclaimer is subject to change from time to time. for the reasons and in the manner provided in SAI.
● Redemption by the Unit holder either due to change in the
B. REQUIREMENT OF MINIMUM INVESTORS IN THE fundamental attributes of the Scheme or due to any other
SCHEME reasons may entail tax consequences. The Trustee, AMC,
The Scheme shall have a minimum of 20 investors and no Mutual Fund, their directors or their employees shall not be
single investor shall account for more than 25% of the corpus liable for any such tax consequences that may arise.
of the Scheme. However, if such limit is breached during the ● Subject to SEBI (Mutual Funds) Regulations, 1996 in the
NFO of the Scheme, the Fund will endeavour to ensure that event of substantial investment by the Sponsors and their
within a period of three months or the end of the succeeding associates directly or indirectly in the Scheme of the Mutual
calendar quarter from the close of the NFO of the Scheme, Fund, Redemption of Units by these entities may have an
whichever is earlier, the Scheme complies with these two adverse impact on the performance of the Scheme because
conditions. In case the Scheme does not have a minimum of the timing of any such Redemptions and this may also
of 20 investors in the stipulated period, the provisions of impact the ability of other Unit holders to redeem their Units.
Regulation 39(2)(c) of the SEBI (MF) Regulations would
become applicable automatically without any reference ● The Scheme has not been registered in any jurisdiction.
from SEBI and accordingly the Scheme shall be wound up The Scheme may however in future be registered in any
11 HDFC Developed World Indexes FOF SidYou can also read
