Prudent Corporate Advisory Services Ltd.
 
How to Invest?

 

How do I apply for Investments in a fund?

  • Obtain an application form along with the Offer Document from your investment advisor / broker / agents, download it from our website or procure it from any of offices or investor service centers
  • Read and understand the Offer Document and complete the application form
  • Attach a cheque for the amount you would like to invest. You can also transfer the money electronically if you have an account in bank
  • The completed application can be mailed to or dropped off at any of AMC offices or investor service centers.

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 Website of the funds houses.

 

What documents do I need to submit with my initial application to buy units of mutual funds?
The following is a list of documents required by an investor while investing in mutual fund for the first time. Subsequent investments do not need these documents.
Those who indicate "Individual" in the "Status" division of the application form

  • The application complete in all respects Those who indicate "Corporate" in the "Status" division of the application form
  • Certified copy of Memorandum of Association/ Articles of Association ·
  • Board Resolution authorizing the company to invest in mutual funds ·
  • List of authorized signatories with specimen signatures

Those who indicate "Trust" in the "Status" division of the application form

  • Trust Deed ·
  • List of authorized signatories with specimen signatures ·
  • Board Committee Resolution

Those who indicate "Societies" in the "Status" division of the application form

  • Board Committee Resolution ·
  • Bylaws ·
  • List of authorized signatories with specimen signatures

Those who indicate "Partnership Firms" in the "Status" division of the application form

  • Board Committee Resolution, Partnership Deed ·
  • List of authorized signatories with specimen signatures

Where do I submit my application form?
The Application can be mailed to or dropped off at any of offices of AMC or investor service centers.


 

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 can I transfer money between various schemes? Do loads Prevail?
Yes, you can switch between schemes/investment options/plans. You need to complete a transaction slip, which you can download from website or detach from the bottom of your account statement. A switch from one scheme to the other is treated as redemption from the scheme from where it is switched out & a purchase into the scheme into which it is being switched. Thus you will be liable for any 'applicable' entry load, exit load, or CDSC


 

What is a lock-in period for my units?
Lock-in period is a time span during which the money invested cannot be redeemed. In the case of open-ended funds there are no lock in periods, however in the case of tax saving funds a minimum lock-in period of 3 years is applicable.


 

What is a Switch?
Some Mutual Funds provide investor with an option to shift his investment from one scheme to another within that fund this option is known as switching.

Investors can opt to switch units between Dividend Plan and Growth Plan at NAV based prices. Switching is also allowed into/from open-ended schemes currently within the Fund family or schemes that may be launched in the future at NAV based prices.

While switching between Debt and Equity Schemes, one has to take care of exit and entry loads. Switching from a Debt Scheme to Equity scheme involves an entry load while the vice versa does not involve an entry load.

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 will have the minimum subscription amount as specified in the Offer Document.


 

What is the applicable NAV for switch?
Switch requests are affected the day the request for switch is received. The Applicable NAV for the switch will be the NAV on the day that the request for switch is received


 

Can an investor appoint a nominee for his investment in units of a mutual fund?
Yes. The nomination can be made by individuals applying for / holding units on their own behalf singly or jointly. Non-individuals including society, trust, body corporate, partnership firm, Karta of Hindu Undivided Family, holder of Power of Attorney cannot nominate.


 

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.


 

Can an investment be made in joint names?
Yes, investments can be made in joint names.


 

How many joint names are permissible?
Two joint names are permissible.


 

What do u mean by “Joint” or “either or survivor”? What option should I opt?
When an investment is made joint mode of holding it means the units are in both the names and transactions needs signature of both. On the other hand when one opts for either or Survivor it means the units are in both the names but transaction can be carried out by either the individuals. And in case if one of them is dead the transaction is not stopped. But in the case of joint holding the living individual have to submit the dead certificate along with the application to the AMC. Thus either or survivor is a better option


 

Is there a time period to submit the application form?
Yes there are cut-off time before which investor should submit the transaction so that he can take the advantage of that day’s NAV so that if in case the NAV increases the next day he would get less units.


 

Is Permanent Account Mandatory?
Yes, PAN is mandatory when the investment is or more than Rs. 50, 000.

What are Growth / Equity Oriented SchemeWhat are Growth / Equity Oriented Scheme
The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time.

 

What are Income / Debt Oriented Scheme?
The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations.

What is Balanced Fund?
The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared to pure equity funds.

What are Money Market / Liquid Fund / income funds?
These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities, etc. Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods
What is Equity Linked Saving Schemes (ELSS)?
Equity linked saving schemes (ELSS), these schemes are open-ended growth schemes with a mandatory 3-year lock- in. These schemes offer the benefit of section 80(C) of IT Act, up to a maximum of Rs 100,000
The main features of ELSS are -
Repurchase: Repurchases are permitted after a period of 3 years.
Lock-in-period: The units under ELSS are prohibited from trading, pledging and transfer during the lock in period of 3 years.
What are Index Funds?
Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc. These schemes invest in the securities in the same weightage comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index.

What are sectoral specific funds?
These are schemes whose objective is to invest only in the equity of those companies existing in a specific sector, as laid down in the fund’s offer document. For example, an FMCG sectoral fund shall invest in companies like HLL, Cadbury’s, Nestle etc., and not in a software company like Infosys. Currently there exist approximately four broad classifications of basic sectors namely – technology, media & telecom (TMT), fast moving consumer goods (FMCG), basic industry (that invest in core industries like petrochemicals, cement, steel, etc.) and pharmaceuticals.

What is a Fund of Funds (FoF) scheme?
A scheme that invests primarily in other schemes of the same mutual fund or other mutual funds is known as a FoF scheme. A FoF scheme enables the investors to achieve greater diversification through one scheme. It spreads risks across a greater universe.

What is an entry load?
The costs of the fund management process that includes marketing and initial costs are charged when you enter the scheme. These charges are termed the entry load. It is the additional charge you pay when you join a scheme.
What is an exit load?
Just like entry load some funds impose a fee when you leave the scheme, i.e., redeem your units, called the exit load.