TaxTMI 
TaxTMI 
Specialized Investment Funds ('SIF') - Application and Investment Strategy Information Document (ISID) formats
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....e Regulatory Framework for Specialized Investment Funds, which, inter- alia, provides the eligibility criteria for a registered Mutual Fund to establish Specialized Investment Fund, including disclosures in Investment Strategy Information Document ('ISID'). 3. Pursuant to the above and to ensure uniformity and efficient processing of applications, it has been decided that registered Mutual Funds intending to establish Specialized Investment Funds are required to submit their applications as per the format provided at Annexure I to this Circular. 4. In terms of Clause 11 of Annexure A of the SIF Circular, the format of ISID is provided at Annexure II to this Circular. 5. This Circular shall come into force with effect from the date of this Circular. 6. This Circular is issued in exercise of the powers conferred by Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Chapter VI-C of the SEBI (Mutual Funds) Regulations 1996 to protect the interest of investors in securities and to promote the development of, and to regulate the securities market. 7. This Circular is available at www.sebi.gov.in under the link "Legal →Circulars". ....
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....appointed for SIF in case applicant opts Route 2 Average AUM managed by the additional fund manager Name of Fund Manager: Qualification: Experience in fund management (brief): Details need to be mentioned in bio data to be submitted in the prescribed format. Please mention the value of assets managed by fund manager on behalf of clients in India/ abroad, provided the said assets are regulated by a financial regulator and/or such assets are located in a country that is a member of Financial Action Task Force (FATF) and a country that is a signatory to International Organization of Securities Commission's (IOSCO) Multilateral Memorandum of Understanding (MMOU). Appendix: 1. Rationale for compliance with the eligibility requirements 2. List of documents to be enclosed Name Designation - Authorised Signatory - .... ....... Appendix 1 Rationale for compliance with the eligibility requirements .....(name of the mutual fund) meets the requirements of the eligibility criteria stipulated in Route 1 (Sound Track Record)/ Route 2 (Alternate Route) for grant of approval to establish Specialized Investment Fund....
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.... Route 1: Sound Track record Annexure xx Certificate from Scheme Statutory Auditor on the average Assets Under Management over the preceding 3 financial years Annexure xx Undertaking from the Trustee Company of Mutual Fund regarding action initiated/ taken against the sponsor/asset management company ('AMC') under section 11, 11B, and/or Section 24 of the SEBI Act, 1992 during the last 3 years. Route 2: Alternate Route Annexure xx Bio data of Chief Investment Officer (CIO) in the format prescribed for 'Bio data of Key Personnel' in SEBI Master Circular for Mutual Funds dated June 27, 2024 along with identity proof. Annexure xx Undertaking from the AMC that the CIO appointed for SIF has managed an average AUM of not less than INR 5,000 crores. Annexure xx Self-certified undertaking from the CIO that he/she has managed an average AUM of not less than INR 5,000 crores. Annexure xx Self-certified fit and proper person declaration by the CIO as per Schedule II of the SEBI (Intermediaries) Regulations, 2008. Annexure xx Bio data of additional fund manager of SIF in the format prescribed for 'Bio data of Key Personnel' i....
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.... .. Risk band Level 5 Risk band Level 1 .. .. .. Risk band Level 5 *The Risk Band shall be as specified by AMFI. The above product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the characteristics of the investment strategy or model portfolio and the same may vary post NFO when the actual investments are made Offer of units of Rs ... each for cash during the New Fund Offer and Continuous offer for Units at NAV based prices New Fund Offer Opens on:______ New Fund Offer Closes on:________ Investment strategy re-opens on:________ Name of SIF : Name of the mutual fund: Name of Asset Management Company : Name of Trustee Company . . Addresses, Website of the entities (including SIF) The particulars of the investment strategy 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 circulars issued thereunder filed with SEBI, along with a Due Diligence Certificate from the AMC. The units being offered for public subscript....
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....stment strategy shall not have a name or title which may be deceptive or misleading. Name of the investment strategy should be consistent with its statement of investment policy and the investment strategy name should be in line with SEBI circular on Regulatory framework for Specialised Investment Funds (SIF). iv. The type of the investment strategy would mean whether the strategy is an equity oriented investment strategy, debt oriented investment strategy or hybrid investment strategy, etc. and whether the investment strategy is open-ended, close-ended or interval and the investment strategy type should be in line with SEBI circular on Regulatory framework for Specialised Investment Funds (SIF). v. Investment Strategy Information Document has two sections- Section I and Section II. While Section I contains investment strategy specific information that is dynamic, Section II contains elaborated provisions (including references to applicable Regulations/circulars/guidelines) with reference to information/disclosures provided in Section I. PART I. HIGHLIGHTS/SUMMARY OF THE INVESTMENT STRATEGY Sr. No. Title Description I. Name of the Investmen....
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.... Growth • Income Distribution cum Capital Withdrawal (IDCW) (include facilities if applicable) • Including Default option/ facility (as applicable) For detailed disclosure on default plans and options, kindly refer SAI. XIII. Load Structure Exit Load: XIV. Minimum Application Amount/switch in • During NFO: • On continuous basis: XV. Minimum Additional Purchase Amount XVI. Minimum Redemption/switch out amount Rs. _______ The redemption will be subject to compliance with provisions mentioned under "Minimum investment threshold" XVII. Notice Period (Maximum duration of notice period shall not exceed 15 working days.) XVIII. New Fund Offer Period This is the period during which a new investment strategy sells its units to the investors. NFO opens on: NFO closes on: Minimum duration to be 3 working days and will not be kept open for more than 15 days Any changes in dates will be published through notice on AMC SIF website i.e. .............. XIX. New Fund Offer Price: This is the pric....
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...., yields etc. have been checked and are factually correct (vi) A confirmation that the AMC has complied with the compliance checklist applicable for Investment Strategy Information Document other than cited deviations/ that there are no deviations from the regulations (vii) Notwithstanding anything contained in this Investment Strategy Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable. (viii) The Trustees have ensured that the (name of the Investment Strategy) approved by them is a new product offered by (name of the SIF) and is not a minor modification of any existing Investment Strategy. Date: Place: Name: Designation: PART II. INFORMATION ABOUT THE INVESTMENT STRATEGY A. HOW WILL THE INVESTMENT STRATEGY ALLOCATE ITS ASSETS? This includes asset allocation table giving the broad classification of assets and indicative exposure level in percentage terms. The asset allocation should be consistent with the investment objective of the Investment Strategy and SEBI circular on Regulatory framework for Specialised Investment Funds (SIF). Instruments Indicative allocation....
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....ter Circular for Mutual Funds and applicable clause of Consolidated checklist of standard observations for active and passive breach/es. B. WHERE WILL THE INVESTMENT STRATEGY INVEST? This includes only a list of all instruments in which the Investment Strategy will invest. (Detailed definition and applicable regulations/guidelines for each instrument shall be included in Section II) Investment in overseas securities shall be made in accordance with the requirements stipulated by SEBI and RBI from time to time. Any other information/disclosure to be added as per applicable Consolidated checklist of standard observations. C. WHAT IS THE INVESTMENT APPROACH? Information about investment approach and risk control should be included in simple terms. Investment approach shall match the asset allocation pattern of the investment strategy. Further, details on generic concepts such as macroeconomic trends may not be provided unless there are investment approaches derived specifically from these concepts. Disclosure for derivatives to be provided in summary form. For detailed derivative strategies, please refer to SAI. Further, Portfolio turnover policy, particular....
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.... be given for that investment strategy only. For an investment strategy which is in existence for more than 1 year, the returns given will be Compounded Annualised Returns and for investment strategy which is in existence for less than 1 year, the returns would be absolute returns since inception. Absolute returns for each financial year for the last 5 years shall be represented by means of a bar diagram as per the adjacent format.] Compounded Annualised Returns Investment Strategy Returns % Benchmark Returns % Returns for the last 1 year Returns for the last 3 years Returns for the last 5 years Returns since inception Absolute Returns for each financial year for the last 5 years H. ADDITIONAL INVESTMENT STRATEGY RELATED DISCLOSURES i. Investment Strategy's portfolio holdings (top 10 holdings by issuer and fund allocation towards various sectors to be provided through a functional website link that contains detailed description.) ii. Functional website link for Portfolio Disclosure -. ....
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....ed p.a.) Investment Management & Advisory Fee Audit fees/fees and expenses of trustees Custodial Fees Registrar & Transfer Agent Fees including cost of providing account statements / IDCW / redemption cheques/ warrants Marketing & Selling Expenses including Agents Commission and statutory advertisement Costs related to investor communications Costs of fund transfer from location to location Cost towards investor education & awareness Brokerage & transaction cost pertaining to distribution of units Goods & Services Tax on expenses other than investment and advisory fees Goods & Services Tax on brokerage and transaction cost Other Expenses (to be specified as per Reg 52 of SEBI MF Regulations) Maximum Total expenses ratio (TER) permissible under Regulation 52 (6) (c) Additional expenses under Regulations 52(6A)(c) Additional expenses for gross new inflows from specified cities *Impact of TER on returns of both Direct plan and Regular plan through an illustration may be provided. An....
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.... period on defensive considerations. (iii) Terms of Issue • Liquidity provisions such as listing, repurchase, redemption. • Aggregate fees and expenses charged to the investment strategy. • Any safety net or guarantee provided. In accordance with Regulation 18(15A) of the SEBI (MF) Regulations and Clause 1.14.1.4 of SEBI Master Circular for Mutual Funds, the Trustees shall ensure that no change in the fundamental attributes of the investment strategy or the trust or fee and expenses payable or any other change which would modify the investment strategy thereunder and affect the interests of Unitholders is carried out unless: • SEBI has reviewed and provided its comments on the proposal • A written communication about the proposed change is sent to each Unitholder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and • The Unitholders are given an option for a period of atleast 30 calendar days to exit at the prevailing Net Asset Value withou....
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....n their applications/requests for redemption. . The policy regarding reissue of repurchased units, including the maximum extent, the manner of reissue, the entity (the investment strategy or the AMC) involved in the same. Restrictions, if any, on the right to freely retain or dispose of units being offered. Cut off timing for subscriptions/ redemptions/ switches This is the time before which your application (complete in all respects) should reach the official points of acceptance. Where can the applications for purchase/redemption switches be submitted? Please refer the AMC website/ SIF website (Provide website link) at the following link for the list of official points of acceptance, collecting banker details etc. To inform investors that it is mandatory to mention their bank account numbers in their applications/requests for redemption. Minimum amount for purchase/redemption/switches Minimum threshold requirement and consequences of non- maintenance Accounts Statements The AMC shall send an allotment confirmation specifying the units allotted by way of email and/or SMS within 5 working....