Basics Of Mutual Funds

About Investments How do I apply for Investments in a fund?
Where do I get applications?
What is a Systematic Investment Plan?
How do I apply for a Systematic Investment Plan?
How do I make an additional purchase?
Are there any minimum amount limits for subsequent purchases in the same scheme?
How do I transfer money between various schemes? Do loads prevail?
Is there a limit to transfer money from one scheme to another?
What is a lock-in period?

About Repurchase (Redemptions) When and how can I redeem my investments? What is a Systematic Withdrawal Plan? Do loads prevail? I have not received my redemption proceeds? What should I do?

About Dividends

How do I get dividends?
What is dividend reinvestment? Do loads prevail?
I have not received my dividend? What should I do?

General

How do Minors apply?
How to apply under Power of Attorney (POA)?
What is Nomination and how does it work?
How do I apply for the PIN facility?
Can I get a loan against my fund units? What is the process?
What do NRIs do for Investments and Redemptions?
I have multiple accounts in a fund. Can I consolidate?
How are monies transferred in the event of Unit holders death ?

Mutual Funds in general What is a Mutual Fund?

Mutual Fund is another saving or investment vehicle, akin to, but different from bank deposits, shares etc., It is an entity wherein people / institutions pool small amounts of money into larger amounts for investment and achieve returns with minimum risk, which otherwise is not possible by a common man. Types of Mutual Funds?

Basically closed ended or open ended. Further with loads and no-loads. Again based on investment objective can be further classified into :-
1) Growth funds
2) Income funds
3) Balanced funds
4) Money Market funds
5) Tax Savings funds
6) Specialized funds and
7) Assured Return funds etc…

What is NAV?

Net Asset value is the networth of the Mutual Fund at the close of any Working Day. What is Applicable NAV?

For the purpose of purchase, redemption & switches, the applicable NAV is the Net Asset Value per Unit at the close of the Working day on which a request, complete in all respects is accepted and received before the cut-off time for the particular scheme. Otherwise, the applicable NAV would be the one for the next business day. What is a load and types thereof?

It is a charge paid by the Investor to the Mutual Fund.

There are 3 types,
1) Entry load – this is paid when an investment is made in a scheme
2) Exit load – this is paid when a redemption is carried out from a scheme and
3) CDSC ( Contingent Deferred Sales Charge) - this is an Exit charge payable by the Investor for a No load scheme.

What is the difference between Fund Scheme and Plan?

A Fund Scheme is the fund itself and based upon the investment objectives. It may have several plans pertaining to growth or distribution of dividends. What is forward and historical pricing?

Forward pricing is the price arrived at after the closing hours of a Working day, which the Investor is not aware of. Historical pricing is a price which an Investor knows before transacting, typically transactions allowed on the basis of the previous day’s NAV.

About Account Statement What is an Account Statement?

It is a statement summarising all the transactions and other details like unit balance, value of units etc. of the Investor. It also records all his / her registration attributes and records changes therein as and when they occur. It is a conclusive proof of their investments and shows the financial standing on a given date. How do I get a duplicate account statement?

An account statement can be obtained from the following sources :-

Requesting any of the CAMS SERVICE CENTREs

Writing / email / phone to back office at CAMS, Chennai or its SERVICE CENTREs

Requesting through CAMS Website under Account Information –

Email robot service sends the account statement to the registered email id in no time

Requesting through CAMS Website under Query / Complaints –

Email / physical account statement would be sent to the Investor at their registered address

I have changed my residence. What should I do?

You have to inform the nearest CAMS SERVICE CENTRE / concerned AMC in writing, appropriately signed, so that the change is recorded in the database. Alternatively, you can submit a request at the CAMS website to record the change by logging on to the Account Information with a PIN reference under Investors section. An acknowledgement will be sent reflecting the change. I have a new bank account. What should I do?

You have to inform the nearest CAMS SERVICE CENTRE / concerned AMC in writing, appropriately signed, so that the change is recorded in the database. Alternatively, you can submit a request at the CAMS website to record the change by logging on to the Account Information with a PIN reference under Investors section. An acknowledgement will be sent reflecting the change.

About Investments How do I apply for Investments in a fund?

By making an application to the Mutual Fund. The same can be submitted to the CAMS SERVICE CENTREs / concerned Fund. Where do I get applications?

The applications can be obtained from CAMS SERVICE CENTREs / Fund offices or branches. Alternatively, they can be downloaded from the CAMSONLINE Website, wherein specific Fund (for a few funds) applications are also available apart from generic ones. What is a Systematic Investment Plan?

Just like a recurring deposit in a Bank, this scheme enables an investor to invest periodically over a period of time. Anybody can avail of this facility subject to the terms and conditions contained in the application form / Offer Document. It is a convenient way to " invest as you earn " and affords the investor an opportunity to enter the market regularly, thus averaging the acquisition cost of Units. How do I apply for a Systematic Investment Plan?

An application can be made through a letter or with a regular application. This needs to be submitted to a CAMS SERVICE CENTRE / concerned AMC along with the no. of cheques for the duration of plan. Make sure that the cheques are drawn locally or as per terms of the Offer Document How do I make an additional purchase?

By submitting an application along with a locally payable cheque /DD at a CAMS SERVICE CENTRE / concerned AMC office. Are there any minimum amount limits for subsequent purchases in the same scheme?

Yes, limits of minimum amount are applicable for additional purchases for schemes and will be mentioned in the Offer Document. How do I transfer money between various schemes? Do loads prevail?

Money can be transferred between schemes by making a switch of units from a scheme to another Scheme. A Source scheme is one from where you want to switch out and a Target scheme is one where you want to switch in. A switch can be effected by applying through the transaction slip available in the Account Statement or by a request letter, appropriately signed. Yes, Switches are subject to loads depending upon the Scheme details Is there a limit to transfer of money from one scheme to another?

Yes, the target scheme should have the minimum subscription amount as specified in the Offer Document. What is a lock-in period?

This is a pre-defined period during which the investments cannot be redeemed. This could be due to a legal implication (erstwhile 54 EA & 54 EB or ELSS sections of Income Tax Act ) or due to a restriction levied by the AMC (this could be for a short period of say, 7 / 10 days depending upon the AMC). This short restriction is to ensure that the Units are not redeemed before encashment of the Investment cheque.

About Repurchase (Redemptions) When and how can I redeem my investments?

Investments can be redeemed after the expiry of the lock-in period, if any, either by submitting a physical request to any of the CAMS SERVICE CENTREs / concerned AMC or requesting the same through the on-line services available under Investors section at the CAMS website. What is a Systematic Withdrawal Plan? Do loads prevail?

This plan enables the Unit holders to withdraw fixed sums from their Unit Accounts at periodic intervals. Any Unit holder can avail of this facility subject to the terms and conditions contained in the application form / Offer Document, to include exit loads if applicable. I have not received my redemption proceeds? What should I do?

You may write / email to any of the CAMS SERVICE CENTREs or to the AMC concerned addressing the same for further course of action.

About Dividends How do I get dividends?

Dividends would be paid by cheques, drawn in the name of the sole holder /first-named holder ( as determined by the account and mailed to the last address recorded in the books ). The Bank name and the Account no. as specified in the records, will also be mentioned in the cheque. The cheque will be payable at par in all the cities designated by the Fund. In case of other cities, you will be paid by a Demand Draft after deducting the demand draft charges (if any and depending upon the concerned AMC). What is dividend reinvestment? Do loads prevail?

Creation of Units in lieu of the amounts due as dividends, is termed as dividend reinvestment. There is no outflow of money here. Normally, loads are not applicable. However, the terms are clearly specified in the Offer Document. I have not received my dividend? What should I do?

You may write / email to any of the CAMS SERVICE CENTREs or to the AMC concerned addressing the same for further course of action.

General

How do Minors apply?

Parents / Lawful Guardians can apply on behalf of a Minor. They can sign the application on behalf of the Minor and status of the Investor in the Account Statement would also reflect the same. How to apply under Power of Attorney (POA)?

Any investment made can be operated upon by a POA holder. This is possible after receipt of the POA by the Registrar, duly attested in original. Once the POA is registered, the POA holder steps into the shoes of the Investor. The right of operating the account reverts back to the Investor only after the POA is revoked. What is Nomination and how does it work?

Nomination is a process whereby the Units get transferred to a nominee’s favour upon the demise of the Investor. A form needs to be submitted with relevant particulars of the Nominee by an investor duly signed, to CAMS for recording the same. How do I apply for the Personal Identification Number (PIN) facility?

Upon request, a pre-printed disclaimer form is sent to you for completing the formalities of PIN registration. This form duly filled and signed,

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