HDFC Debt Fund Cancer Cure(Hope alone can't fight cancer)

8/7/2019 HDFC Debt Fund Cancer Cure(Hope alone can't fight cancer)

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Key Information Memorandum & Application FormInvestors must read the Key Information Memorandum and Instructions before completing this Form.

The Scheme enables the Unit holders to donate full or part of dividend declared on its corpus to this approved public charitable trust.Such donations made by the Mutual Fund/ AMC on behalf of the Unit holders shall be eligible for claiming deduction under Section

80G of Income-tax Act, 1961. Dividend income is not assured and is subject to availability of distributable surplus.

The scheme is "oriented towards protection of capital" and "not with guaranteed returns". The scheme does not guarantee any returns.The orientation towards protection of capital originates from the structure of the Portfolio of the Scheme and not from any Bank guarantee,Insurance Cover etc. There is no assurance that the structure would provide the necessary protection of capital.

Rated AAA (so) by CRISIL

The assigned rating is valid only for HDFC Debt Fund for Cancer Cure - A 3 year Closed Ended Capital Protection Oriented Scheme. The rating onlyindicates highest degree of certainty regarding payment of face value of investment (excluding entry load charged, if any) to the unit holders onmaturity and is not an opinion on the stability of the scheme's NAV before its maturity date.

This Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing.For further details of the Scheme / Mutual Fund, due diligence certificate by the AMC, Key Personnel, investors' rights & services,risk factors, penalties & pending litigations, etc. investors should, before investment, refer to the Scheme Information Document(SID) and Statement of Additional Information (SAI) available free of cost at any of the Investor Service Centres or distributorsor from the website www.hdfcfund.com.

The Scheme particulars have been prepared in accordance with Securit ies and Exchange Board of India (M utual Funds) Regulations,1996, as amended till date, and filed with Securities and Exchange Board of India (SEBI). The units being offered for publicsubscription have not been approved or disapproved by SEBI, nor has SEBI cert ified the accuracy or adequacy of this KIM. Thedate of this Key Information Memorandum is January 25, 2011.

Offer of Units at R 10 each for cash during the New Fund Offer (NFO)

New Fund Offer Opens on : February 18, 2011New Fund Offer Closes on : March 4, 2011

Scheme re-opens on : The units of the Scheme will be listed on the National Stock Exchange of India Limited (NSE). All investors can subscribe(buy) / redeem (sell) units on a continuous basis on the NSE on which the Units are listed during the trading hours on all the trading days.

The Trustee may close the New Fund Offer before the above mentioned date by giving at least one day notice in one daily Newspaper.

Name of the AMC : HDFC Asset Management Company Limited


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1 Investment Objective

The investment objective of the Scheme is to protect the capital and generate incomethrough investments in high quality fixed income securities like Debt / Money MarketInstruments and Government Securities maturing on or before the maturity date ofthe Scheme.

However, there can be no assurance that the investment objective of the scheme willbe realized.

2 Asset Allocation Pattern of the Scheme

The table below provides the broad asset allocation of the portfolio of the Schemeto be followed under normal circumstances:

Instruments Indicative allocations(% of total assets) Risk Prof ile

M inimum M aximum

Debt instruments* 80 100 Medium

Money Market instruments* 0 100 Low to Medium

Government Securities* 0 20 Low

* The net assets of the Scheme will be invested predominantly in highly rated Debt,Money Market instruments and Government Securities maturing on or before thematurity date of the Scheme which will lead to orientation towards protection ofcapital.

No investments shall be made in securitised debt, debt derivative instruments andforeign debt securities.

The Scheme shall not engage in Stock Lending.

The initial investment shall be entirely in f ixed income securit ies. The Scheme shall not

invest in equity instruments at any point of time during the tenure of the Scheme.

3 Investment Strategy

The net assets of the Scheme will be predominantly invested in highly rated fixedincome securities like Debt, Money market instruments and Government Securitiesmaturing on or before the maturity date of the Scheme. The primary objective of theScheme is to endeavor to protect the capital and generate income through investmentsin high quality fixed income securities like Debt / Money Market Instruments andGovernment Securities maturing on or before the maturity date of the Scheme.

The scheme will endeavor to achieve stability of capital (with an intent to protectcapital) and generate reasonable return by building a portfolio that is a judicious mixof safe debt, money market instruments and government securities maturing on orbefore the maturity date of the Scheme.

In view of the above, deployment of the proceeds collected during the NFO shall bemade as under:

(a) To begin wit h the Fund Manager shall invest the entire NFO proceeds in the MoneyMarket instruments and Bank Fixed Deposits in accordance with the Asset AllocationPattern of the Scheme till the time appropriate Debt Instruments and GovernmentSecurities maturing on or before the maturity date of the Scheme are available.

(b) In line with the Investment Objective of t he Scheme, the fund manager shallconstruct the portfolio by investing in the Debt instruments and GovernmentSecurities maturing on or before the maturity date of the Scheme.

(c) Coupons accrued, if any may be deployed in Debt instruments, Money Marketinstruments or Government Securities maturing on or before the maturity dateof the Scheme.

(d) The Fund Manager may look to increase the maturity of the portfolio by removingsome shorter maturity Debt instruments and investing in Debt instruments whichare maturing closer to the maturity of the Scheme.

The maturity proceeds (i.e. principle + coupon accrued) of the Debt instruments thatmature before the maturity of scheme shall be re-invested in the Debt instruments,Money Market instruments or Government Securities until t he maturit y of the Scheme.

The asset allocation pattern described above would alter from time to time on keepingin view market conditions, market opportunities, applicable regulations and political,economic factors and review by rating agency.

The scheme is " oriented towards protection of capital" and " not w ith guaranteedreturns" . The scheme does not guarantee any returns. The orientation towards protectionof capital originates from the structure of the Portfolio of the Scheme and not fromany Bank guarantee, Insurance Cover etc. There is no assurance that the structurewould provide the necessary protection of capital.

Though every endeavor will be made to achieve the objectives of the Scheme,the AMC/Sponsors/Trustees do not guarantee that the investment objectivesof the Scheme wil l be achieved. No guaranteed returns are being offered underthe Scheme.

4 Risk Profile of the SchemeMutual Fund Units involve investment risks including the possible loss of principal.Please read the Scheme Information Document carefully for details on risk factorsbefore investment. Scheme specific Risk Factors include but are not limited to thefollowing:

Risk factors associated with Capital Protection Orientation

The scheme is " oriented towards protection of capital" and " not w ith guaranteedreturns". The scheme does not guarantee any returns. The orientation towards

protection of capital originates from the structure of the Portfolio of the Schemeand not from any Bank guarantee, Insurance Cover etc. There is no assurance thatthe structure would provide the necessary protection of capital.

Factors such as interest rate movements, reinvestment r isk, credit defaults etc. canimpact the ability of the portfolio to meet capital protection on maturity.

All CRISIL ratings are under surveillance. CRISIL reserves the right to suspend,wit hdraw or revise the above ratings at any time on the basis of any new informationor unavailability of information or any other circumstances which CRISIL believesmay have an impact on the rating.

The initial investment mix of the scheme is based upon assumptions on collections,pre-determined initial and running expenses and yield on the securities in the fixedincome portfolio.

The scheme could face reinvestment risks on interim interest cash flows, if the yieldon such reinvestments is lower than the yield on the initial investments.

Risk factors associated with investing in Fixed Income Securities

Trading volumes, settlement periods and transfer procedures may restrict theliquidity of the investments made by the Scheme. Different segments of the Indianfinancial markets have different settlement periods and such periods may beextended significantly by unforeseen circumstances leading to delays in receipt ofproceeds from sale of securities. The NAV of the Scheme can go up or downbecause of various factors that affect the capital markets in general.

The NAV of the Scheme will be affected by changes in the general level of interestrates. The NAV of the Scheme is expected to increase from a fall in interest rateswhile it would be adversely affected by an increase in the level of interest rates.

Money market securities, while fairly liquid, lack a well developed secondarymarket, which may restrict the selling ability of the Scheme and may lead to theScheme incurring losses till the security is finally sold.

Investment in Debt Securities is subject to the risk of an issuer's inability to meetinterest and principal payments on its obligations and market perception of thecreditworthiness of the issuer.

Government securities where a fixed return is offered run price-risk like any otherfixed income security. Generally, when interest rates rise, prices of fixed incomesecurities fall and when interest rates drop, the prices increase. The extent of fallor rise in the prices is a function of the existing coupon, days to maturity and theincrease or decrease in the level of interest rates. The new level of interest rate isdetermined by the rates at which government raises new money and/or the pricelevels at which the market is already dealing in existing securities. The price-risk isnot unique to Government Securities. It exists for all fixed income securities.However, Government Securities are unique in the sense that their credit riskgenerally remains zero. Therefore, their prices are influenced only by movement in

interest rates in the financial system. Different types of f ixed income securities in which the Scheme would invest as given

in the Scheme Information Document carry different levels and types of risk.Accordingly, the Scheme risk may increase or decrease depending upon its investmentpattern. e.g. corporate bonds carry a higher level of r isk than Government securit ies.

As zero coupon securities do not provide periodic interest payments to the holderof the security, these securities are more sensitive to changes in interest rates.Therefore, the interest rate risk of zero coupon securities is higher. The AMC maychoose to invest in zero coupon securities that offer attractive yields. This mayincrease the risk of the portfolio.

While securities that are listed on the stock exchange carry lower liquidity risk, theability t o sell these investments is limited by the overall trading volume on the stockexchanges and may lead to the Scheme incurring losses till the security is finallysold.

Securities, which are not quoted on the stock exchanges, are inherently illiquid innature and carry a larger amount of liquidity risk, in comparison to securities thatare listed on the exchanges or offer other exit options to the investor, including aput option.

At times, due to the forces and factors affecting the capital market, the Schememay not be able to invest in securities falling within its investment objective result ingin holding the monies collected by it in cash or cash equivalent or invest the samein other permissible securities amounting to substantial reduction in the earningcapability of the Scheme.

Risk Factors associated with Market Trading

Although Unit s of the Scheme as mentioned in this Scheme Information Documentare to be listed on the Exchange, there can be no assurance that an active secondarymarket will develop or be maintained.

Trading in Unit s of t he Scheme on the Exchange may be halted because of marketconditions or for reasons that in view of Exchange Authorities or SEBI, trading inUnits of the Scheme is not advisable. In addition, trading in Units of the Schemeis subject to trading halts caused by extraordinary market volatility and pursuant

to Exchange and SEBI 'circuit filter' rules. There can be no assurance that therequirements of Exchange necessary to maintain the listing of Units of the Schemewill continue to be met or will remain unchanged.

Any changes in trading regulations by the Stock Exchange(s) or SEBI may inter-aliaresult in wider premium/ discount to NAV.

The Units of the Scheme may trade above or below their NAV. The NAV of theScheme will fluctuate with changes in the market value of Scheme's holdings. Thetrading prices of Units of the Scheme will fluctuate in accordance with changes intheir NAV as well as market supply and demand for the Units of the Scheme.

KEY INFORMATION M EMORANDUM


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The records of the depository are final w ith respect to t he number of Units availableto the credit of Unit holder for the Units issued in dematerialised form. Settlementof trades, repurchase of Units by the Mutual Fund on the maturity date / finalredemption date will depend upon the confirmations to be received fromdepository(ies) on which the Mutual Fund has no control.

The market price of t he Units of the Scheme, like any other listed security, is largelydependent on two factors, viz., (1) the intrinsic value of the Unit (or NAV), and (2)demand and supply of Units in the market. Sizeable demand or supply of the Unitsin the Exchange may lead to market price of the Units to quote at premium ordiscount to NAV.

As the Units of the Scheme will be listed on the Exchange, the Mutual Fund shall

not provide for redemption / repurchase of Units prior to maturity / f inal redemptiondate of the Scheme.

5 Risk Mitigation Factors

Exposure to debt securities, other than Sovereign exposures, would be diversified,comprising a number of issuers across the financial and manufacturing / servicessectors. This shall aid in managing concentration risk and sector-specific risks.

Investments in debt / money market securities would be undertaken after assessingthe associated credit risk, interest rate risk and liquidity risk.

The Fund seeks to manage the durat ion of debt assets on a proactive basis to manageinterest rate risks and to optimise returns. Being a close-ended Fund, the maturity ofthe assets would not exceed that of the Fund i.e. 3 years.

A credit evaluation of each debt exposure would be undertaken. This would alsoconsider the credit ratings given to the instrument by recognised rating agencies.Investments in debt / money market securities would normally be undertaken in

instruments that have been assigned high investment grade ratings by any of therecognised rating agencies.

Redemptions in the Fund would take place only at the scheme's maturity date. Thescheme would invest in assets having a corresponding maturity so as to meet theliquidity requirements at the time of redemption. This would help in managing theportfolio liquidity.

6 Plans and Options

The Scheme offers only Dividend Option with Payout Facility.

The genesis of the idea of launching HDFC Debt Fund for Cancer Cure in associationwith Indian Cancer Society is to provide financial assistance to the needy cancerpatients for their treatment by tapping those investors who would be willing to donatepart of the dividend or ent ire dividend declared, if any, under the Scheme for this purpose.

In line with the rationale of t he Scheme, the investors shall have the discretion t o decidethe percentage of donation to be made to the Indian Cancer Society out of the

dividend declared, if any, (subject to deduction of tax at source, if any). Such discretionshall be exercised by the Investors by selecting any of the following option offeredunder the Dividend Payout Facility:

50% Dividend Donation Option

Under this Option, Investors can donate 50% of the dividend amount to Indian CancerSociety and the rest shall be paid to the Unit holder.

100% Dividend Donation Option

Under this Option, Investors can donate 100% of the dividend amount to IndianCancer Society.

The Unit holder shall be eligible to receive deduction under Section 80G of t he Income-tax Act, 1961 on the amount of donation made to ICS from the dividends declaredunder the Scheme. For more details refer to section 'Eligibility for claimingDeduction under Section 80G of Income- tax Act, 1961', please refer SchemeInformation Document (SID).

It is understood that by investing in either of the Options under HDFCC, the Investor

is authorizing HDFC AMC/ HDFC Mutual Fund to make payment of donations fromthe dividend declared, if any, under the Scheme directly to ICS. HDFC AMC/ HDFCMutual Fund shall not be held responsible or liable in any manner whatsoever formaking such donations on behalf of Unit holders to ICS out of their dividend incomeunder the Scheme.

Once the Investor opts for 50% Dividend Donation Option or 100% Dividend DonationOption, the same cannot be changed/modified thereafter by the Investor and theamount once donated to ICS upon such authorization will not be refunded back tothe Investor upon such request.

7 Applicable NAV (after the scheme opens for repurchase)

Applicable NAV for Purchases including switch-ins

The Units of the Scheme will not be available for subscriptions / switch-in after theclosure of NFO Period.

Applicable NAV for Redemptions including switch-outs

Units of the Scheme cannot be redeemed / switched-out by the investors directly withthe Fund until the date of Maturity / Final Redemption. Therefore, the provisions ofCut off timing for redemptions including switch-outs will not be applicable to theScheme.

Units of the Scheme will be automat ically redeemed on the Maturit y/ Final Redemptiondate, except requests for switch-out received by the Fund.

Switch-out request will be accepted upto 3.00 p.m. on the Maturit y Date/Final RedemptionDate.

8 Minimum Application Amount/Number of Units

Purchase Additional Purchase Repurchase

R 1,00,000 and in multiples Not Applicable Not Applicableof R 1,000 thereafter As the Units are listed on

the Stock Exchange, theScheme will not provideredemption facility untilthe date of Maturity/ FinalRedemption date

9 Despatch of Repurchase (Redemption) RequestWithin 10 working days from the date of Maturity / Final Redemption.

10 Benchmark Index

Crisil Short Term Bond Fund

11 Dividend Policy

It is proposed to declare dividends on half yearly intervals subject to availability ofdistributable profits, as computed in accordance with SEBI (MF) Regulations. TheTrustee reserves the right to alter the frequency of Dividend declaration in the interestof Unit holders. Dividend declared, if any under the Scheme shall be limited to thecoupons from, and/or realised surplus from trading of, the fixed income securities inthe Scheme.

Dividends, if declared, wi ll be donated t o the ICS (subject to deduction of t ax at source,if any) as authorized by the Unit holder under 50% Dividend Donation Option or 100%

Dividend Donation Option and the balance, if any will be paid (subject to deductionof tax at source, if any) to those Unit holders whose names appear in the Register ofUnit holders on the record date.

There is no assurance or guarantee to unit holders as to the rate of dividend distribut ionnor that dividends will be paid regularly. On payment of dividends, the NAV will stand

reduced by the amount of dividend and dividend tax (if applicable) paid.

12 Name of the Fund Manager

Mr. Anil Bamboli

13 Name of Trustee Company

HDFC Trustee Company Limited

14 Performance of the Scheme

This Scheme is a new scheme and does not have any performance track record.

15 Expenses of the Scheme

(A) Load Structure

New Fund Offer Period and Ongoing Basis

Entry/ Sales Load Not Applicable.

Pursuant to SEBI circular no. SEBI/IMD/CIR No.4/168230/09 dated June 30, 2009, no entry load willbe charged by the Scheme to the Investor. Theupfront commission on investment made by theInvestor, if any, shall be paid to the ARN Holder(AMFI registered Distributor) directly by the Investor,based on the Investor' s assessment of various factorsincluding service rendered by the ARN Holder.

Exit / Not Applicable.

Redemption LoadThe Units under the Scheme cannot be directlyredeemed with the Fund as the Units are listed onthe stock exchange(s).

(B) Recurring Expenses (% of w eekly average Net Assets)

First R 100 crores : 2.25% Next R 300 crores : 2.00%

Next R 300 crores : 1.75% Balance : 1.50%

16 Waiver of Load for Direct Applications

Pursuant to SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009 noentry load shall be charged for all mutual fund schemes. Therefore, the procedure forwaiver of load for direct applications is no longer applicable.

17 Tax Treatment for the Investors (Unit Holders)

Investors are advised to refer to the Section on 'Taxation on investing in Mut ual Funds'in the Statement of Additional Information and also independently refer to t heir tax

advisor.

18 Daily Net Asset Value (NAV) Publication

The NAV will be declared on all Business Days and will be publ ished in 2 newspapers.NAV can also be viewed on www.hdfcfund.com and www.amfiindia.com. The NAVshall also be communicated to the National Stock Exchange of India Limited, wherethe units will be listed. Investors may also contact any of the Investor Service Centres(ISCs) of HDFC Mutual Fund.


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19 For Investor Grievances, Please Contact

Investors may contact any of the Investor Service Centres (ISCs) of the AMC for any

queries / clarifications at telephone number 60006767 (Do not prefix STD code) or

1800 233 6767 (toll free), Fax number. (022) 22821144, e-mail: [email protected].

Investors can also post their grievances/feedback/suggestions on our website

www.hdfcfund.com under the section 'Customer Care' appearing under 'Contact Us'.

The Head Office of the AMC will follow up with the respective ISCs to ensure timely

redressal and prompt investor services. Mr. John Mathews, Head - Client Services can

be contacted at Mistry Bhavan, 2nd Floor, 122, Dinsha Vachha Road, Churchgate,

Mumbai - 400 020 at telephone number (Direct) (022) 66316301 or telephone number

(Board) (022) 66316333. His e-mail contact is: [email protected] any grievances with respect to transactions through stock exchange(s), the investors/

Unit Holders should approach either the stock broker or the investor grievance cell of

the respective stock exchange.

Registrar and Transfer Agent :

Computer Age Management Services Pvt. Ltd,

Unit: HDFC Mutual Fund

5th Floor, Rayala Tower, 158, Anna Salai, Chennai - 600 002.

Telephone No: 044-30212816 Fax No: 044-42032955

Email: [email protected]

20 Unit Holder's Information

Account Statements: (Applicable to investors who opt to hold Units in non-demat

form)

An Account Statement reflecting the Units allotted will be mailed to each Unitholder within 5 business days from the date of closure of the NFO Period.

The Account Statement reflecting Redemption / Switch-out of Units shall be

despatched to the Unit holder within 10 days from the date of Maturity / Final

Redemption date. However, under normal circumstances, the Mutual Fund shall

endeavour to despatch the Account Statement within 3 Business Days from the

Maturity / Final Redemption date.

Annual Account Statement : The Mutual Funds shall provide the Account Statementto the Unitholders who have not transacted during the last six months prior to thedate of generation of account statements.The account statements in such casesmay be generated and issued along with the Portfolio Statement or Annual Reportof the Scheme.

Allotment Advice (for demat holders)

An allotment advice will be sent upon allotment of Units stating the number of Unitsallotted to each of the Unit holder(s) who have opted for allotment in dematerializedmode within 5 business days from the date of closure of the NFO Period.

For more details, please refer the Scheme Informat ion Document (SID) and Statementof Additional Information (SAI).

Annual Financial Results: The Scheme wise annual report or an abridged summarythereof shall be mailed (e-mailed if opted / requested) to all Unit holders not later thanfour months from the date of closure of the relevant accounting year (i.e. 31st Marcheach year) and full annual report shall be available for inspection at the Head Officeof the Mutual Fund and a copy shall be made available to the Unit holders on requeston payment of nominal fees, if any. These results shall also be displayed on the websiteof the Mutual Fund on www.hdfcfund.com and Association of Mutual Funds in India(AMFI) on www.amfiindia.com

Half Yearly Unaudited Financial Results: Half Yearly Unaudited Financial Resultsshall be published in one national English daily newspaper circulating in the whole ofIndia and in a newspaper published in the language of the region where the HeadOffice of the Mutual Fund is situated before expiry one month from the close of eachhalf-year, that is on March 31 and September 30. It is also displayed on the websiteof the Mutual Fund on www.hdfcfund.com and Association of Mutual Funds in India(AMFI) on www.amfiindia.com

Half yearly Portfolio Disclosure: Full portfolio in the Prescribed format shall bedisclosed either by publishing it in one national English daily newspaper circulating inthe whole of India and in a newspaper published in the language of the region wherethe Head Office of the Mutual Fund is situated or by sending it to the Unit Holderswithin one month from the end of each half-year, that is as on March 31 andSeptember 30. It is also displayed on the website of the Mutual Fund onwww.hdfcfund.com and Association of Mutual Funds in India (AMFI) onwww.amfiindia.com

21 Comparison w ith the Existing Closed- Ended Income Schemes

HDFC Debt Fund for Cancer Cure is a new scheme launched by HDFC Mut ual Fund under the Closed- ended Capital Protection Orientated Income Scheme category t hat shall be investingin high quality fixed income securities like Debt/ Money Market Instruments and Government Securities and seek to protect the capital and generate income. The Scheme is comparedwith the existing Closed-ended Income Schemes in the following table:

Name of the HDFC Fixed Maturity Plans - Series XI HDFC Fixed HDFC Fixed HDFC Fixed HDFC FixedScheme/ Plans Maturity Plans - Maturity Plans - Maturity Plans - Maturity Plans -

Series XII Series XIV Series XV Series XVIIType of the Scheme Closed Ended Income Scheme

Investment The investment objective of the Plan(s) under the The investment objective of the Plan(s) under the Scheme is to generate income throughObjective Scheme is to generate regular income through investments in Debt / Money Market Instruments and Government Securities maturing on or

investments in Debt / Money Market Instruments before the maturity date of the respective Plan(s).and Government Securities maturing on or beforethe maturity date of the respective Plan(s).

Investment Strategy The net assets of the Plan(s) under the Scheme will be invested in Debt, Money market instruments and Government Securities maturing on or before[Please refer to the maturity date of the respective Plan(s).Scheme InformationDocument (SID) ofthe Scheme(s) forcomplete details.]

Risk Mitigation Exposure to debt securities, other than Sovereign exposures, would be diversified, comprising a number of issuers across the financial and

Strategy manufacturing / services sectors. This shall aid in managing concentration risk and sector-specific risks. Investments in debt / money market securities would be undertaken after assessing the associated credit risk, interest rate risk and liquidity risk.

The Fund seeks to manage the duration of debt assets on a proactive basis to manage interest rate risks and to optimise returns.

A credit evaluation of each debt exposure would be undertaken. This would also consider the credit ratings given to the instrument by recognisedrating agencies. Investments in debt / money market securities would normally be undertaken in instruments that have been assigned high investmentgrade ratings by any of the recognised rating agencies. Unrated investments, if any, would require specific approval from a committee constitutedfor the purpose.

Redemptions in the Fund would take place only at the scheme's maturity date. The scheme would invest in assets having a corresponding maturityso as to meet the liquidity requirements at the time of redemption. This would help in managing the portfolio liquidity.

Comparison with the Existing Closed- Ended Income Schemes vis-a- vis Assets Under Management (AUM) and Number of Folios:

Name of the Scheme/ Plans Asset Under Management (AUM) Number of Folios (Live Accounts) as on December 31, 2010

(R in Crore) as on December 31, 2010 (Cumulative total of folios under Plans/ Options)

1 HDFC FMP 20M September 2009 Series XI 239.96 256

2 HDFC FMP 18M October 2009 Series XI 229.51 836

3 HDFC FMP 19M November 2009 Series XI 75.58 495

4 HDFC FMP 15M December 2009 Series XII 26.53 277

5 HDFC FMP 24M February 2010 Series XII 51.24 224

6 HDFC FMP 13M March 2010 Series XII 296.28 595

7 HDFC FMP 14M March 2010 Series XII 309.53 373

8 HDFC FMP 367D March 2010 (1) Series XII 149.27 322

9 HDFC FMP 13M March 2010 (2) Series XII 222.53 365


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10 HDFC FMP 13M March 2010 (3) Series XII 59.28 119

11 HDFC FMP 367D April 2010 (1) - Series XII 15.00 82

12 HDFC FMP 36M April 2010 - Series XII 87.58 387

13 HDFC FMP 367D April 2010 (2) - Series XII 18.02 309

14 HDFC FMP 100D September 2010 (3) Series XIV 108.28 455



17 HDFC FMP 100D October 2010 (1) Series XIV 286.36 36218 HDFC FMP 100D October 2010 (2) Series XIV 72.17 224

19 HDFC FMP 100D October 2010 (3) Series XIV 201.68 372

20 HDFC FMP 370D June 2010 (1)- Series XV 211.29 219

21 HDFC FMP 370D June 2010 (2) - Series XV 170.13 242

22 HDFC FMP 370D July 2010 (1) - Series XV 40.10 88

23 HDFC FMP 370D August 2010 (1) - Series XV 243.35 720

24 HDFC FMP 25M September 2010 - Series XV 64.04 643

25 HDFC FMP 370D September 2010 (1) - Series XV 218.68 528

26 HDFC FMP 370D September 2010 (2) - Series XV 355.68 928

27 HDFC FMP 370D November 2010(1) - Series XVII 558.19 604

28 HDFC FMP 100D November 2010 (1) - Series XVII 289.30 412



Name of the Scheme/ Plans Asset Under Management (AUM) Number of Folios (Live Accounts) as on December 31, 2010

(R in Crore) as on December 31, 2010 (Cumulative total of folios under Plans/ Options)

INSTRUCTIONS

1 General Instructions

Please read the terms of the Key Information Memorandum and t he Scheme Information Document(SID) and Statement of Additional Information (SAI) carefully before filling the Application Form.

Investors are deemed to have accepted the terms subject to which t his offer is being made and bindthemselves to the terms upon signing the Application Form and tendering payment.

Investors have been provided One Application Form and Third Party Declaration Form.

The Application Form should be completed in ENGLISH and in BLOCK LETTERS only. Please tickin the appropriate box for relevant options wherever applicable. Please do not overwrite. For anycorrection / changes (if any) made on the application f orm, applicants are requested to authenticatethe same by canceling and re-writing the correct details and counter-signed by the sole / allapplicants.

Applications completed in all respects must be submitted at the Bank Collection Centres/ InvestorService Centres (ISCs) of HDFC Mutual Fund.

Investors can also subscribe to the Units of HDFC Debt Fund for Cancer Cure (HDFCC) during theNFO period through the mutual fund trading platforms viz. BSE StAR MF of Bombay Stock ExchangeLimited and Mutual Fund Service System (MFSS) of National Stock Exchange of India Limited. Forfurther details, investors are advised to contact ISCs of HDFC Mutual Fund or visit our websitewww.hdfcfund.com

Please write the Serial Number of the Application Form / Folio Number on the reverse ofthe cheque / demand draft.

In case of investors opting to switch into the Scheme from the existing Schemes of HDFC MutualFund (subject to completion o f Lock-in Period, if any) during the NFO Period, the switch request canbe made on a pre-printed form or by using the relevant tear off section of the Transaction Slipenclosed with the Account Statement, which should be submitted along with this Application Formto any of t he ISCs. The Swit ch must comply wit h the Redemption rules of t he existing Scheme andthe Issue rules of NFO (e.g. as to the minimum number of Units that may be redeemed or issued,Exit Load etc).

Applications incomplete in any respect are liable to be rejected.

The AMC / Trustee retains the sole and absolute discretion to reject any application.

No request f or wit hdrawal of application made during the New Fund Offer Period will beentertained.

It may be noted that the Securities and Exchange Board of India (SEBI) vide its Notification datedMay 31, 2010 read with Circular dated June 24, 2010 states that with effect from June 01, 2010,the distributors, agents or any persons employed or engaged or to be employed or engaged in thesale and/or distribution of mutual fund products shall be required to have a valid certification fromthe National Institute of Securities Markets (NISM) by passing the certification examination.

In order to facilitate the transition process from AMFI to NISM, it has been informed that a personholding a valid AMFI certi fication whose validity expires between June 01, 2010 and December 31,2010 or thereafter, will be required to comply with the Continuing Professional Education (CPE)requirements as laid down by NISM under the relevant clauses of the SEBI (Certification of AssociatedPersons in the Securities Market) Regulations, 2007.

Further, no agents / distribut ors would be entit led to sell units of mutual funds unless the intermediaryis registered with AMFI.

2 Existing Unit Holder Information

Investors already having an account in any of HDFC Mutual Fund Schemes should provide their Folio

Number in section 1 and proceed to section 4. The personal details and Bank Account details asthey feature in the existing folio would apply to this investment as well and would prevail over anyconflicting information furnished in this form. Unitholders' name should match with the details inthe existing folio number, failing which the application form is liable to be rejected.

For Investors who opt to hold Units in demat mode, the personal details and Bank Account detailsas they feature in the existing fol io would apply to this investment p rovided these details match withthe demat account details. The demat account details would prevail over any conflicting informationfurnished in this form. Unitholders' name should be in the same sequence as appearing in t he demataccount, failing which the application form is liable to be rejected.

3 Unit Holder Information

Name and address must be written in full. In case the Investor is an NRI/FII, an overseas address mustbe provided. A local address if available may also be mentioned in the Application Form.

Name of the Parent or Guardian must be mentioned if the investments are being made on behalfof a minor and the same should be as provided in the demat account.

Applications under a Power of Attorney or by a limited company or a body corporate or an eligibleinstitution or a registered society or a trust / fund must be accompanied by the original Power ofAttorney (or a certified true copy of the same duly notarised) or the relevant resolution or authorityto make the application (or duly notarised copy thereof) as the case may be, along with a certifiedcopy of the Memorandum and Art icles of Association or bye-laws or trust deed or partnership deedor Certificate of Registration. Authorised officials should sign the Application Form under theirofficial designation. A list of specimen signatures of the authorised officials, duly certified / attestedshould also be attached to the Application Form. In case of a Trust/Fund a resolution from theTrustee(s) authorising such purchase must be submitted.

Applications not complying with the above are liable to be rejected.

All communications and payments shall be made in the name of and favouring the first / soleapplicant.

In case of applications made in joint names wit hout indicating the mode of holding, mode of holdingwill be deemed as 'Joint' and processed accordingly.

In case an investor opts to hold the Units in demat form, the applicant(s) details mentionedin Section 3a, should be the same as appearing in demat account held with a DepositoryParticipant.

4 Bank Details

In order to protect the interest of Unit holders from fraudulent encashment of redemption / dividendcheques, SEBI has made it mandatory for investors to provide their bank details viz. name of bank,branch, address, account type, number, etc. to the Mutual Fund. Applications without completebank details shall be rejected. The AMC will not be responsible for any loss arising out o f f raudulentencashment of cheques / warrants and / or any delay / loss in t ransit.

A. Pay -Out Bank Account Details: An investor at the time of his/her purchase of units must

provide the details of his / her pay-out bank account (i.e. account into which redemption /dividend proceeds are to be paid) in Section 5 in t he Application Form.

B. Change in Bank Details: Unit holders are free to change their bank details registered withthe Mutual Fund subject to adherence with the following procedure:

(i) Unit holders will be required to submit a valid request for a change in bank account detailsalong with a cancelled original cheque leaf of the new bank account as well as thebank account currently registered with the Mutual Fund (where the account numberand first unit holder name is printed on the face of the cheque). Unit holders should wi thoutfail cancel the cheque and writ e 'Cancelled' on the face of it to prevent any possible misuse.

(ii) Where such name is not printed on the original cheque, the Unit holder may submit a letterfrom the bank on its letterhead certifying that the Unit holder maintains/ maintained anaccount with the bank, the bank account information like bank account number, bankbranch, account type, the MICR code of the branch & IFSC Code (where available).

(iii) In case of non-availability of any of these documents, a copy of the bank pass book ora statement of bank account having the name and address of the account holder andaccount number.

(In respect of (ii) and (iii) above, they should be certified by the bank manager withhis / her full signature, name, employee code, bank seal and contact number)

(iv) Unit holders may also bring a copy of any of the documents mentioned in (iii) above alongwith the original documents to the ISCs/Official Points of Acceptance of HDFC MutualFund. The copy of such documents will be verified with the original documents to thesatisfaction of HDFC Mutual Fund. The originals documents will be returned across thecounter to the Unit holder after due verification.

In the event of a request f or change in bank account information being invalid / incomplete/not satisfactory in respect of signature mismatch/document insufficiency/ not meeting any


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requirements more specifically as indicated in clauses i-iv above, the request for suchchange will not be processed. Redemptions / dividend payments, if any, will be processedand the last registered bank account information will be used for such payments to Unitholders. Unit holders may note that it is desirable to submit their requests for change inbank details atleast seven days prior to date of redemption / dividend payment, if any.Further, in t he event of a request f or redemption of uni ts being received wi thin seven daysof a request for change in bank account details, the normal processing time as specifiedin the Scheme Information Document, may not necessarily apply, however it shall be wi thinthe regulatory limits.

Unit holders are advised to provide their contact details like telephone numbers, mobile

numbers and email Ids to HDFC Mutual Fund in writing.The Trustee reserves the right to amend the aforesaid requirements.

In case an investor opts to hold the Units in demat form, he/ she will be required to followthe procedure for change in bank mandate as per the instructions given by their respectiveDepository Participants.

C. Mult iple Bank Account Registration: The Mutual Fund has also provided a facility to theinvestors to register mult iple bank accounts. By registering mult iple bank accounts, the investorscan use any of the registered bank accounts to receive redemption / dividend proceeds. Theseaccount details will be used by the AMC/ Mutual Fund /R&TA for verification of instrument usedfor subscription to ensure that a third party payment instrument is not used for mutual fundsubscription, except as cases enumerated in Instruction 7.2a Investors are requested to availthe facility of registering multiple bank accounts by filling in the 'Multiple Bank AccountsRegistration Form' available at our Investor Service Centres (ISCs) or on our websitewww.hdfcfund.com.

D. Indian Financial System Code (IFSC): IFSC is a 11 digit number given by some of the bankson the cheques. IFSC will help to secure transfer of redemption and dividend payouts, if anyvia the various electronic mode of transfers that are available with the banks.

5 Investment Details

The genesis of the idea of launching HDFC Debt Fund for Cancer Cure in association with IndianCancer Society is t o provide f inancial assistance to t he needy cancer patients for their treatment bytapping those investors who would be willing to donate part of the dividend or entire dividenddeclared, if any, under the Scheme for this purpose.

In line with the rationale of the Scheme, the investors shall have the discretion to decide thepercentage of donation to be made to the Indian Cancer Society out of the dividend declared, ifany, (subject to deduction of tax at source, if any). Such discretion shall be exercised by the Investorsby indicating the choice of option offered under the Dividend Payout Facility in the appropriate boxprovided for this purpose in the application form.

In case of valid applications received without indicating any choice of Option, it will be consideredas option for 50% Dividend Donation Option and processed accordingly wherein 50% of thedividend declared, if any will be donated (subject to deduction of tax at source, if any) to IndianCancer Society (ICS) and the rest will be paid to the Investors. Investors must use separate ApplicationForms for investing simultaneously in both the Options under the Scheme.

It is understood that by investing in either of the Options under HDFCC, the Investor is authorizingHDFC AMC/ HDFC MF to make payment of donations from the dividend declared, if any, under t heScheme directly to ICS. HDFC AMC/ HDFC MF shall not be held responsible or liable in any mannerwhatsoever for making such donations on behalf of Unit holders to ICS out of their dividend incomeunder the Scheme.

Once the Investor opts for 50% Dividend Donation Option or 100% Dividend Donation Option, thesame can not be changed/ modified thereafter by the Investor and the amount once donated toICS upon such authorization will not be refunded back to the Investor upon such request.

6 Mode of Payment

I Pay - in Bank Account

An Investor at the time of his/her purchase of units must provide the details of his / her pay-in bankaccount (i.e. account from which a subscription payment is being made) in Section 7 in theApplication FormI Resident Investors

(a) For Investors having a bank account with HDFC Bank Limit ed or such banks wit h whom t heAMC would have an arrangement from time to time:

Payment may be made for subscription to the Units of t he Scheme either by issuing a chequedrawn on such banks or by giving a debit mandate to their account with a branch of HDFCBank Limited situated at the same location as the ISC or such other banks wit h whom the AMCwould have an arrangement from time to time.

(b) For Investors not covered by (a) above:

Payment may be made by cheque or bank draft drawn on any bank, which is situated at andis a member of the Bankers' Clearing House, located at the place where the application issubmitted. No cash, money orders, outstation cheques, post dated cheques and postalorders will be accepted. Bank charges for out station demand drafts will be borne by the AMCand will be limited to t he bank charges stipulated by the State Bank of India. Outstation DemandDraft has been defined as a demand draft issued by a bank where there is no ISC available forInvestors. The AMC will not accept any request for refund of demand draft charges, in suchcases.

I NRIs / FIIs

Repatriation Basis

In the case of NRIs, payment may be made either by inward remitt ance through normal banking

channels or out of funds held in his Non - Resident (External) Rupee Account (NRE) / ForeignCurrency (Non-Resident) Account (FCNR). In case Indian rupee drafts are purchased abroad orfrom Foreign Currency Accounts or Non-resident Rupee Accounts, an account debit certificatefrom the Bank issuing the draft confirming the debit shall also be enclosed.

FIIs shall pay their subscription either by inward remittance through normal banking channelsor out of funds held in Foreign Currency Account or Non-Resident Rupee Account maintainedby the FII with a designated branch of an authorised dealer.

Non-repatriation Basis

In the case of NRIs, payment may be made either by inward remitt ance through normal bankingchannels or out of funds held in his NRE / FCNR / Non-Resident Ordinary Rupee Account (NRO).In case Indian rupee drafts are purchased abroad or from Foreign Currency Accounts or Non-resident Rupee Accounts, an account debit certif icate from the Bank issuing the draft confirmingthe debit shall also be enclosed.

In order to prevent f rauds and misuse of payment instruments, the investors are mandated to makethe payment instrument such as cheque, demand draft, pay order, etc.favouring either of thefollowing given below and crossed " Account Payee only" . Investors are urged to follow the orderof preference in making the payment instrument favouring as under:

1. 'HDFC Debt Fund for Cancer Cure A/c Permanent Account Number' or

2. 'HDFC Debt Fund for Cancer Cure A/c First Investor Name'

e.g. " HDFC Debt Fund for Cancer Cure A/c ABCDE1234F" OR " HDFC Debt Fund for CancerCure A/c Bhavesh Shah"

Returned cheque(s) are liable not to be presented again for collection and the accompanyingApplication Form is liable to be rejected. In case the returned cheque(s) are presented again, thenecessary charges are liable to be debited to the Investor.

7 Third Party Payments

(1) HDFC Asset Management Company Limited (" AMC" ) / HDFC Mutual Fund ("Mutual Fund" ),shall not accept applications for subscriptions of uni ts accompanied with Third Party Paymentsexcept in cases as enumerated in para 7.2a below.

"Third Party Payment" means payment made through an instrument issued from a bankaccount other than that of the first named applicant/ investor mentioned in the applicationform. In case of payment instruments issued from a joint bank account, the first namedapplicant/ investor must be one of the joint holders of the bank account from which thepayment instrument is issued.

IllustrationsIllustration 1: An Application submitted in joint names of A, B & C alongwith cheque issuedfrom a bank account in names of C, A & B. This is a valid application and w ill not be consideredas Third Party Payment.

Illustration 2: An Application submitted in joint names of A, B & C alongwith cheque issuedfrom a bank account in name of A. This is a valid application and will not be considered asThird Party Payment.

Illustration 3: An Application submitted in joint names of A, B & C alongwith cheque issuedfrom a bank account in names of B, C & Y. This will be considered as Third Party Payment.

(2a) As referred to in para 7.1 above, following are the exceptional cases where third party paymentswill be accepted subject to submission of requisite documentation/ declarations.

i) Payment by Parents/Grand-Parents/Related Persons* on behalf of a minor in considerationof natural love and affection or as gift for a value not exceeding R 50,000 for each regularpurchase or per SIP installment; (However, third party payment will not be acceptedin such cases as the minimum application amount is R 1,00,000).

ii) Payment by employer on behalf of employee under Systematic Investment Plan (SIP) facilitythrough payroll deductions;

iii) Custodian on behalf of an FII or a Client.

* 'Related Person' means any person investing on behalf of a minor in consideration of natural loveand affection or as a gift.

(2b) For investments through t hird party payments, Investors must accompany the 'Third PartyPayment Declaration Form' (available at any of our ISCs or on our w ebsite www.hdfcfund.com)along with the Application Form for subscription of units.

(3) The Mutual Fund shall adopt the following procedures to ascertain whether payments are ThirdParty Payments and investors are therefore required to comply wi th the requirements specifiedhereinbelow:

(i) Source of funds - if paid by cheque

Identification of third party cheques by the AMC/ Mutual Fund/ Registrar & Transfer Agent(R&TA) wil l be on t he basis of either matching of pay-in bank account details with pay-out bankaccount details or by matching the bank account number /name/signature of the first namedapplicant /investor with the name/account number/signature available on the cheque. If thename is not pre-printed on the cheque or signature on the cheque does not match, then thefirst named applicant/ investor should submit any one of the following documents:

(a) a copy# of the bank passbook or a statement of bank account having the name and addressof the account holder and account number;

(b) a letter* (in original) from the bank on its letterhead certifying that t he investor maintainsan account wi th t he bank, along wi th information l ike bank account number, bank branch,account type, the MICR code of the branch & IFSC Code (where available).

# Investors should also bring the original documents along with the documents mentioned in(a) above to the ISCs/Official Points of Acceptance of HDFC Mutual Fund. The copy of suchdocuments will be verified with the original documents to the satisfaction of the AMC/ MutualFund/R&TA. The original documents will be returned across the counter to the investor afterdue verification.

* In respect of (b) above, it should be certi fied by the bank manager with his / her full signature,name, employee code, bank seal and contact number.

Investors should not e that where the bank account numbers have changed on account of t heimplementation of core banking system at their banks, any related communication from thebank towards a change in bank account number should accompany the application form forsubscription of units.

The Mutual Fund has also provided a facility to the investors to register mult iple bank accounts,as detailed in Instruction No. 4C. Investors are requested to avail the facility of registeringmultiple bank accounts by filling in the 'Multiple Bank Accounts Registration Form' availableat our Investor Service Centres (ISCs) or on our website www.hdfcfund.com

(ii) Source of funds - if funded by pre-funded instruments such as Pay Order, Demand Draf t,Banker's cheque etc.

Investors should attach a Certificate (in original) from the issuing banker with the purchaseapplication, stating the Account holder's name and the Account Number which has been

INSTRUCTIONS (CONTD.)


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debited for issue of the instrument. The said Certificate should be duly certified by the bankmanager with his / her full signature, name, employee code, bank seal and contact number.The account number mentioned in the Certificate should be a registered bank account or thefirst named applicant/ investor should be one of the account holders to the bank accountdebited for issue of such instruments.

(iii ) Source of funds - if paid by RTGS, Bank Account-to-Account Transfer, NEFT, ECS, etc.

Investors should attach to the purchase application form, an acknowledged copy of theinstruction t o the bank also stating t he account number debited. The account number mentionedon the transfer instruction copy should be a registered bank account or the first namedapplicant/ investor should be one of the account holders to the bank account debited for suchelectronic transfer of funds.

(iv) Source of funds - if paid by a pre-funded instrument instruments issued by the Bankagainst Cash

The AMC/Mutual Fund /R&TA will not accept any purchase applications from investors ifaccompanied by a pre-funded instrument issued by a bank (such as Pay Order, Demand Draft,Banker's cheque) against cash for investments of R 50,000 or more. The investor should submita Certificate (in original) obtained from the bank giving name, address and PAN (if available)of the person who has requested for the payment instrument. The said Certificate should beduly certified by the bank manager with his / her full signature, name, employee code, bankseal and contact number. The AMC / Mutual Fund /R&TA will check that the name mentionedin the Certificate matches with the first named investor.

8 E-mail Communication

Account Statements/ Allotment advice/ Newsletters/ Annual Reports/ Other statutory information(as may be permitted under SEBI (Mutual Funds) Regulations, 1996) can be sent to each Unit holderby courier / post / e-mail.

Unit holders who have opted to receive these documents by e-mail will be required to downloadand print the documents after receiving e-mail from the Mutual Fund. Should the Unit holderexperience any difficulty in accessing the electronically delivered documents, the Unit holder shallpromptly advise the Mutual Fund to enable the Mutual Fund to make the delivery through alternatemeans. It is deemed that the Unit holder is aware of all security risks including possible third partyinterception of the documents and contents of the documents becoming known to third parties.

The Newsletter, shall be displayed at the website of the Mutual Fund. The Unit holders can requestfor a copy of the Newsletter by post / e-mail. The AMC would arrange to dispatch these documentsto the concerned Unit holder.

This facility is covered under eServices facility as detailed in instruction 10.

9 Mode of Payment of Redemption / Dividend Proceeds

The Units of the Scheme cannot be redeemed by the investors directly with the Fund untilthe M aturity / Final Redemption date. Units of the Opt ion will be automatically redeemedon the Maturity / Final Redemption date.

Dividends, if declared, will be donated to the ICS (subject to deduction of tax at source, if any) asauthorized by the Unit holder under 50% Dividend Donation Option or 100% Dividend Donation

Option and the balance, if any will be paid (subject to deduction of tax at source, if any) to thoseUnit holders whose names appear in the Register of Unit holders on the record date.

Direct Credit

The AMC has entered into arrangements with eleven banks to facilitate direct credit ofredemption and dividend proceeds (if any) into the bank account of the respective Unit holdersmaintained with any of these banks. These banks are: ABN AMRO Bank N.V., Axis Bank Ltd.,Citibank N.A., Deutsche Bank AG, HDFC Bank Limited, The Hongkong and Shanghai BankingCorporation, ICICI Bank Limited, IDBI Bank Limited, Kotak Mahindra Bank Ltd., StandardChartered Bank and YES Bank Limited.

The list of banks is subject to change from time to time.

National Electronic Funds Transfer (NEFT)

The AMC provides the facility of 'National Electronic Funds Transfer (NEFT)' offered by ReserveBank of India (RBI), which aims to provide credit of redemption and dividend payouts (if any)directly into the bank account of the Unit holder maintained with the banks (participating inthe NEFT System). Unit holders can check the list of banks participating in the NEFT System fromthe RBI website i.e. www.rbi.org.in or contact any of our Investor Service Centres.

However, in the event of the name of Unit holder's bank not appearing in the 'List of Banks

participating in NEFT' updated on RBI website www.rbi.org.in, from t ime to t ime, the instructionsof the Unit holder for remittance of redemption/ dividend (if any) proceeds via NEFT Systemwill be discontinued by HDFC Mutual Fund / HDFC Asset Management Company Limitedwithout prior notice to the Unit holder and the payouts of redemption / dividend (if any)proceeds shall be effected by sending the Unit holder(s) a cheque / demand draft.

For more details on NEFT or for frequently asked questions (FAQs) on NEFT, Unit holders areadvised to visit the RBI website www.rbi.org. in / HDFC Mutual Fund website www.hdf cfund.com.

Electronic Clearing Service (ECS)

Investors who have opted for the ECS facility of RBI for dividend payment wil l receive a directcredit of the amount due to them in their mandated account whenever the payment is madethrough ECS. A separate advice regarding credit of amount(s) via ECS will be sent to the Unitholder. It should be noted that while the Mutual Fund will make all efforts, there is nocommitment that this facility will be made available to all desirous investors.

Applicants in cities not covered under ECS facility will receive dividend payments, if any bycheques or demand drafts and the same will be mailed to the Unit holders. Please note thatthe ECS Facility is available only in respect of dividend payments and not in the case of

Redemption of Units.Therefore, the Investors will receive their redemption / dividend proceeds (if any) directly intotheir bank accounts in the following order:

(i) In case the bank account of an investor is covered under Direct Credit facility then thepayment of redemption / dividend proceeds (if any) will happen via direct credit payoutmode only. Investors having these bank accounts will not receive payouts via NEFT/ECS*

(ii) In case the bank account of an investor is not covered under Direct Credit facility but

covered under NEFT system offered by the RBI then the payment of redemption / dividendproceeds (if any) shall be effected via NEFT mechanism only.

(iii) The facility for payment of dividend proceeds, if any via ECS* shall be aff ected only incase the bank account of an investor is not covered under the Direct Credit facility o r NEFTsystem.

* available only in respect of dividend payments.

The above-mentioned mode of payments shall be applicable to Other Investors only for the paymentof dividend proceeds, if any.

Each of the above facilities aims to provide direct credit of the redemption proceeds and dividendpayouts (if any) into the bank account linked to the demat account (as furnished in Section 5 ofthe Application Form) of the Unit holder and eliminates the time lag between despatch of thecheque, its receipt by the Unit holder and the need to personally bank the instrument and awaitsubsequent credit to the Unit holder account. Further, the potential risk of loss of instruments intransit through courier / post is also eliminated. Each of the said facility as a mode of payment isfaster, safer and reliable.

In case the bank account as communicated by the Unit holder is with any of the said banks withwhom the AMC has entered into arrangements to facilitate such direct credits or with any of thebanks participating in the NEFT System of fered by RBI, the AMC shall automat ically extend this facilityto the Unit holders.

HDFC Asset Management Company Limited / HDFC Mutual Fund shall not be held liable for anylosses / claims, etc. arising on account of processing the direct credit or credit via NEFT / ECS ofredemption / dividend proceeds on the basis of Bank Account details as provided by the Unit holderin the Application Form.

However, in case the Unit holder has rematerialized the units and is not keen on availing any of t hesaid facilities and prefer receiving cheques / demand drafts, the AMC would then ensure that thepayouts are effected by sending the Unit holder cheques / demand drafts.

In case of unforeseen circumstances, the AMC reserves the right to issue a cheque / demand draft.

Mode of Payment for Unit holders holding Units in Demat form

Investors will receive their maturity / dividend proceeds directly into their bank accounts linked tothe demat accounts. Please ensure to furnish the Bank Account details under section 5.

10 eServices Options

TheeServices facility includes HDFCMFOnline, HDFCMFMobile, eAlerts andePayouts.

HDFCMFOnline

This facility enables investors to transact online on www.hdfcfund.com using HDFCMFOnline. On

HDFCMFOnline, Unit ho lders can execute t ransactions online for purchase* , redemption, swit ch andalso register for Systematic Investment Plan (SIP) / Systematic Transfer Plan (STP) of units of theschemes of HDFC Mutual Fund and other services as may be introduced by HDFC Mutual Fund fromtime to time. Unit holders can also view account details and portfolio valuation online, downloadaccount statements and request for documents via email, besides other options.

* facility available wi th select banks and subject to submission of Permanent Account Number (PAN)and Know Your Customer (KYC) compliance proof by all Unit holder(s). Please refer to paragraphson Permanent Account Number (PAN) and Know Your Customer (KYC) for further details.

HDFCMFMobile

This facility enables investors to t ransact on their mobile handsets. On HDFCMFMobile, Unitholderscan execute transactions on their mobile phone fo r purchase* , redemption or swit ching of uni ts ofschemes of HDFC Mutual Fund and other services as may be introduced by HDFC Mutual Fund fromtime to time. Unitholders can also view account details and portfolio valuation on their mobilephone, request for account statements, besides other options.

* Payment arrangement for purchase of units is available at present wi th HDFC Bank only. Pleasevisit our website from time to time for an updated list of banks. You also need to have opted forthe mobile-banking facility with your Bank. As per RBI's operative guidelines on Mobile bankingdated December 24, 2009, presently there is a restriction of R 50,000 per customer per day fortransactions.

eDocs

This facilit y enables the Unit holder to receive documents viz. account statements, etc. by email tothe email address provided by the Unit holder in HDFCMFeServices Request Form.

eAlerts

This facility enables the Unit holder to receive SMS confirmation for purchase, redeem or switch,dividend declaration details and other alerts. Apart from above mentioned facilities, the facility ofePayouts comprising of mode of payment of Redemption / Dividend Proceeds if any, via Direct

Credit / NEFT / ECS is covered under eServices facility for further details, please refer eServicesbooklet available to all Investor Service Centres (ISCs) as well as on our website on www.hdf cfund.com.

11 Dematerialization

The Unit holders would have an option to hold the Units in dematerialized form. Accordingly, theUnits of the Scheme will be available in dematerialized (electronic) form. The Applicant intendingto hold Units in dematerialized form wi ll be required to have a beneficiary account w ith a DepositoryParticipant (DP) of the NSDL/ CDSL and will be required to mention in the application form DP IDNo. and Beneficiary Account No. with the DP at the time of purchasing Units during the NFO ofthe Scheme. Applicants must ensure that the sequence of names as mentioned in the applicationform in section 3a matches to that of the account held with the Depository Participant. Names,Address, PAN details, KYC details etc. mentioned in the application form will be verified against theDepository data. Only those applications where the details are matched with the depository data,will be treated as valid applications. If the details mentioned in the application are incomplete /incorrect, not matched wit h the depository data, t he application shall be treated as invalid and shallbe liable to be rejected. The Units of the Scheme will be traded and settled on the exchangecompulsorily in dematerialized (electronic) form.

Unit holders who have opted to hold unit s in dematerialized form will receive payment of redemption(maturity) / dividend proceeds into their bank (i.e. beneficiary) account l inked to t he Demat account.



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12 Signature(s)

Signature(s) should be in English or in any Indian Language. Appli cations on behalf of minors shouldbe signed by their Guardian.

In case of a HUF, the Karta should sign t he Appli cation Form on behalf of t he HUF.

If you are investing through your Constituted Attorney, please ensure that the Power of Attorneyis signed by you and your Constit uted At torney. The signature in the Application Form, then, needsto clearly indicate that the signature is on behalf of the applicant by the Constituted Attorney.

13 Nomination

The nomination can be made only by individuals applying for/holding uni ts on their ow n behalf singlyor jointly. Non-individuals including society, trust, body corporate, partnership firm, karta of Hinduundivided family, holder of Power of Attorney cannot nominate. If the units are held jointly, all jointholders will sign the nomination form.

Minor(s) can be nominated and in that event, the name, address and signature of the guardian ofthe minor nominee(s) shall be provided by the unitholder. Nomination can also be in favour of theCentral Government, State Government, local authorit y, any person designated by virtue of his officeor a religious or charitable trust.

The Nominee shall not be a trust, other than a religious or charitable trust, society, body corporate,partnership firm, karta of Hindu undivided family or a Power of Attorney holder. A non-residentIndian can be a Nominee subject to the exchange controls in force, from time to time.

Nomination in respect of the units stands rescinded upon the transfer of units.

Nomination can be made for maximum number of three nominees. In case of multiple nominees,the percentage of allocation/share in favour of each of the nominees should be indicated againsttheir name and such allocation/share should be in whole numbers without any decimals making atotal of 100 percent.

In the event of the Unitholders not indicating the percentage of allocation/share for each of thenominees, HDFC Mutual Fund/ HDFC Asset Management Company Limited (AMC), by invokingdefault option shall settle the claim equally amongst all the nominees.

Transfer of units in favour of Nominee(s) shall be valid discharge by the AMC against t he legal heir.

In case of investors opting to hold the Units in demat form, the nomination details providedby the investor to the depository participant will be applicable.

14 Permanent Account Number

SEBI has made it mandatory f or all applicants (in the case of application in join t names, each of theapplicants) to ment ion his/her permanent account number (PAN) irrespective of the amount [Exceptfor SIP upto w 50,000/- per year per investor (Micro SIP)]. Where the applicant is a minor, and donot posses his / her own PAN, he / she shall quote the PAN of his/ her father or mother or theguardian, as the case may be. However PAN is not mandatory in the case of Central Government,State Government entities and the officials appointed by the courts e.g. Official liquidator, Courtreceiver etc (under the category of Government) for transacting in the securities market. HDFCMutual Fund reserves the right to ascertain the status of such entities with adequate supportingdocuments.

In order to verify that the PAN of the applicants (in case of application in joint names, each of theapplicants) has been duly and correctly quoted therein, the applicants shall attach along with theApplication form, a photocopy of the PAN card duly self certified along with the original PAN Card.The original PAN Card will be returned immediately across the counter after verification.

Applications not complying with the above requirement may not be accepted/ processed.

Additionally, in the event of any application form being subsequently rejected for mismatch ofapplicant's PAN details wit h the details on the website of the Income Tax Department, the investmenttransaction wi ll be cancelled and t he amount may be redeemed at the applicable NAV, subject to paymentof exit load, if any.

For further details, please refer Section 'Permanent Account Number' under Statement o f Addi tionalInformation available on our website www.hdfcfund.com or contact any of the Investor ServiceCentres/ CAMS/ Distributors.

15 Prevention of Money Laundering

SEBI vide its circular reference number ISD/CIR/RR/AML/1/06 dated January 18, 2006 mandated thatall intermediaries including Mutual Funds should formulate and implement a proper pol icy frameworkas per t he guidelines on anti money laundering measures and also to adopt a Know Your Customer(KYC) policy.The Investor(s) should ensure that the amount invested in the Scheme is through legitimate sources

only and does not involve and is not designated for the purpose of any contravention or evasionof the provisions of the Income Tax Act, Prevention of Money Laundering Act, Prevention ofCorruption Act and / or any other applicable law in force and also any laws enacted by theGovernment of India from to time or any rules, regulations, notifications or directions issuedthereunder.To ensure appropriate identification of the Investor(s) and with a view to monitor transactions forthe prevention of money laundering, HDFC AMC/ HDFC Mutual Fund reserves the right to seekinformat ion, record investor' s telephonic calls and or obtain and retain documentation f or establishingthe identity of the Investor(s), proof of residence, source of funds, etc. It may re-verify identity andobtain any incomplete or additional information for this purpose.HDFC Mut ual Fund, HDFC AMC, HDFC Trustee Company Limited (" HDFC Trustee" ) and theirDirectors, employees and agents shall not be liable in any manner for any claims arising whatsoeveron account of freezing the folios/ rejection of any application / allotment of Units or mandatoryredemption of Units due to non compliance wit h the provisions of the Act, SEBI/AMFI circular(s) andKYC policy and / or where the AMC believes that transaction is suspicious in nature within thepurview of the Act and SEBI/AMFI circular(s) and reporting the same to FIUIND.

For further details, please refer Section 'Prevention of Money Laundering' under the Statement ofAdditional Information available on our website www.hdfcfund.com.

16 Know Your Customer (KYC) Compliance

It is mandatory to quote the KYC Compliance Status of each applicant (guardian in case of minor)in the application f or subscription and attach proof of KYC Compliance viz. KYC AcknowledgementLetter (or the erstwhile Mutual Fund Identification Number* (MIN) Allotment Letter) / Printout ofKYC Compliance Status downloaded from CVL website (www.cvlindia.com) using the PAN for allapplications for subscription.* Valid only where investors who have already obtained the erstwhile Mut ual Fund IdentificationNumber (MIN) by submitting the PAN copy as the proof of identity.Applicants intending t o apply for uni ts through a Power of Att orney (PoA) must ensure that t he issuerof the PoA and the holder of the PoA must mention their KYC Compliance Status and attach proofof KYC Compliance at the time of investment.The KYC Compliance status wi ll be validated wi th t he records of t he Central Agency before allottingunits. HDFC Mutual Fund will not be held responsible and /or liable for rejection of KYC Form, ifany, by the Central Agency.Applications for subscriptions without a valid KYC compliance may be rejected. Provided further,where it is not possible to verify the KYC compliance status of the investor at the time of allotmentof un its, the Trustee / AMC shall verify t he KYC compliance status of the investor wit hin a reasonable

time after the allotment of units. In the event of non compliance of KYC requirements, the Trustee/ AMC reserves the right to freeze the folio of the investor(s) and affect mandatory redemption ofunit holdings of the investors at the applicable NAV, subject to payment of exit load, if any.For applicants who subscribe to the Units of HDFCC during the NFO period through themutual fund trading platforms viz. BSE StAR MF of Bombay Stock Exchange Limited andMutual Fund Service System (MFSS) of National Stock Exchange of India Limited andapplicants who wish to hold the units in dematerialized mode, the KYC performed by theDepository Participant of the applicants will be considered as KYC verification done by theTrustee / AMC.


CHECKLIST

Please ensure that your Application Form is complete in all respect and signed by all applicants: Name, Address and Contact Details are mentioned in full. Status of First/Sole Applicant is correctly indicated. Bank Account Details are enteredcompletely and correctly. Permanent Account Number (PAN) of all Applicants is mentioned irrespective of the amount of purchase and proofattached (if not already validated) Please attach proof of KYC Compliance status Appropriate Option is selected. If units are applied by morethan one applicant, Mode of Operation of account is indicated.

Your investment Cheque / DD should be drawn in favour of HDFC Debt Fund for Cancer Cure A/c (Permanent Account Number) or HDFCDebt Fund for Cancer Cure A/c (First Investor Name) dated, signed and crossed A/c Payee only. Application Number is mentioned on thereverse of the Cheque/DD.

Documents as listed below are submitted along with the Application Form (as applicable to your specific case).

Documents Companies Trusts Societies Partnership LLP FIIs* NRI Investments throughFirms Constituted Attorney

1. Resolution / Authorisation to invest

2. List of Authorised Signatories with Specimen Signature(s)

3. Memorandum & Articles of Association

4. Trust Deed

5. Bye-Laws

6. Partnership Deed / LLP Agreement (as applicable)

7. Notarised Power of Attorney

8. Account Debit Certif icate in case payment is made byDD from NRE / FCNR A/c. where applicable

9. Certificate of Incorporation 10. PAN Proof

11. KYC Acknowledgement Letter (or erstwhile Mutual FundIdentification Number (MIN) allotment letter) / Print out ofKYC Compliance Status downloaded from CDSL Ventures Ltd.website (www.cvlindia.com) using PAN Number

All documents in 1 to 6 above should be originals or true copies certified by the Director / Trustee / Company Secretary / Authorised Signatory / Notary Public, as applicable.

* For FIIs. Copy of SEBI registration certi ficate should be provided.


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KEY PARTNER / AGENT INFORM ATION FOR OFFICE USE ONLY

ARN-

Name and Sub Agents Name M O CodeAMFI Reg. No. (ARN) and Code / Bank

Branch Code

Date of Folio Branch Collection Centre / Receipt No. Trans. No. ISC Name & Stamp

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 distributor.

1. EXISTING UNIT HOLDER INFORMATION (If you have existing folio, please fill in your folio number insection 1 and proceed to section 4. Refer instruction 2).

The details in our records under the folio number mentionedalongside will apply for this application.

Folio No.

2.

Resident

Individual

HUF

Minor through

guardian

Society / Club

NRI-Repatriation

AOP

BOI

Others __________________________ (please specify)

NRI-Non Repatriation

PIO

Body Corporate

Partnership

Company

LLP

Trust

FIIs

MODE OFHOLDING

[Please tick ()]

Single

Joint

Anyone or Survivor

OCCUPATION(of First/Sole Applicant)

[Please tick ()]

Service

Housewife

Agriculture

Others__________________ (please specify)

Student

Business

Proprietorship

Professional

Retired

STATUS (of First/Sole Applicant) [Please tick ()]

3a. UNIT HOLDER INFORMATION (refer instruction 3) DATE OF BIRTH

(Mandatory in case of Minor)

D D M M Y Y Y Y

NAME OF FIRST / SOLE APPLICANT

Enclose KYC Compliance Proof * *(Mandatory)

Mr. Ms. M/s.

Nationality PAN#

HDFC MUTUAL FUNDHead Office : Ramon House, 3rd Floor,

H.T. Parekh Marg, 169, Backbay Reclamation,Churchgate, Mumbai 400020

Date :

Received from Mr./Ms./M/s.an application for allotment of Units of the Option (as mentioned in the Application) of HDFCDebt Fund for Cancer Cure (HDFCC) along with Cheque / Demand Draft as detailed overleaf.Please Note : All Purchases are subject to realisation of Cheques / Demand Drafts.

Collection Centre /ISC Stamp & Signature

ACKNOWLEDGEMENT SLIP (To be filled in by the Investor)[For any queries please contact our nearest Investor Service Centre or call us at our

Customer Service Number 60006767 (Do not prefix STD code) or 18002336767 (Toll Free)]

Application No. : HDFCC

... continued# Please attach PAN Proof. If PAN is already validated please dont attach any proof . Refer instruction No 14. * * Refer instruction No 16.

Tear Here

New Fund Offer Price : R 10 per unit

The Scheme enables the Unit holders to donate full or part of dividend declared on its corpus to this approved public charitable trust.

Such donations made by the Mutual Fund/ AMC on behalf of the Unit holders shall be eligible for claiming deduction under Section80G of Income-tax Act, 1961. Dividend income is not assured and is subject to availability of distributable surplus.

Application FormNew Fund Offer Opens on: February 18, 2011

New Fund Offer Closes on: March 4, 2011

The Trustee reserves the right to close the NFO before the abovementioned date by giving at least one day notice in one dailyNewspaper.

Investors must read the Key Information Memorandum and Instructions before completing this Form.

The Application Form should be completed in English and in BLOCK LETTERS only. Read Section 4 & 11 carefully andprovide your Signature(s) therein.

Application No. : HDFCC

Continuing a tradition of trust

33099


10/20

NAM E OF GUARDIAN (in case of First / Sole Applicant is a Minor) / NAM E OF CONTACT PERSON DESIGNATION(in case of non-individual Investors)

Enclose KYC Compliance Proof* * (Mandatory)

PARTICULARS HDFC DEBT FUND FOR CANCER CURE (HDFCC)

Dividend Payout Facility50% Dividend Donation Option (Default Option) 100% Dividend Donation Option

Amount inFigures (R)Cheque /DD No.

Drawn on (Name of Bank and Branch)

Cheque / DDDate

Mr. Ms.

Nationality Contact No.Designation

PAN#

NAM E OF THE SECOND APPLICANT Resident Individual NRI [M andatory Please tick ()]


Mr. Ms. M/s.

Nationality PAN#

NAM E OF THE THIRD APPLICANT Resident Individual NRI [Mandatory Please tick ()]


Mr. Ms. M/s.

Nationality PAN#

MAILING ADDRESS OF FIRST / SOLE APPLICANT (P.O. Box Address may not be sufficient)

(Furnishing PIN CODE is mandatory)

CITY STATE PIN CODE

OVERSEAS ADDRESS (M andatory in case of NRIs /FIIs/PIOs) (P. O. Box Address may not be sufficient)

CONTACT DETAILS OF FIRST / SOLE APPLICANT

# Please attach PAN Proof. If PAN is already validated please dont attach any proof . Refer instruction No 14. * * Refer instruction No 16.

STD Code

Telephone : Off. Res. Mobile

Fax Email

3b. POWER OF ATTORNEY (PoA) HOLDER DETAILSNAM E OF PoA

# Refer instruction no. 14. * * Refer instruction No 16.Enclose KYC Compliance Proof* *

(Mandatory)

Mr. Ms. M/s.

PAN#

... continued

3a. UNIT HOLDER INFORMATION (refer instruction 3) (CONTD.)


11/20

IFSC Code* * *

(* * Refer Instruction 9) (Mandatory for Dividend Payout via ECS) (The 9 digit codeappears on your cheque next to the cheque number)

The 9 digit MICR Code number ofmy/our Bank & Branch is**

*** Refer Instruction 4D (Mandatory for Credit via NEFT / RTGS) (11Character code appearing on your cheque leaf. If you do not find thison your cheque leaf, please check for the same with your bank)

5. BANK ACCOUNT (PAY-OUT) DETAILS OF FIRST / SOLE APPLICANT (ref er instruction 4) Please not e that as perSEBI Regulat ions it is mandatory for investors to provide t heir bank account deta ils

Branch Bank City

SAVINGS CURRENT NRE NRO FCNR OTHERS __________________ (please specify)Account Type [Please tick ()]

i) & HDFCMFMobile- I/ We would like register for my/our HDFCMF Personal Identification Number (HPIN) to transact online.Mandatory information to be provided:

a) Email address: _________________________________________________________ _______________________________________________

(if the address given herein is different from the email address under section 3a, the email address under section 6(i)(a) will be considered duringregistrat ion for HPIN).

b) Mother's maiden name:____________________________________________________________________________________________

I / We have read and understood the terms and condit ions and confirm I/ we shall bound by them (Terms & Condit ions available in theeServices booklet as well as on our website)

ii) : I / We wish to receive account statements, newsletters, annual reports and other statutory information documents by email in lieuof physical documents (Email address is mandatory).

iii) eAlerts : I / We would like to receive SMS updates (Mobile number in section 3a is mandatory).

6. eSERVICES OPTIONS (SAVE PAPER, SAVE TREES) [Please tick ()] (refer instruction 10)

7. PAYMENT DETAILS Cheque / DD should be drawn in favour of HDFC Debt Fund for Cancer Cure A/c (Permanent AccountNumber) or HDFC Debt Fund for Cancer Cure A/c (First Investor Name) (refer instruction 6) Please write Application Form No. / Folio No. on the reverse of the Cheque / Demand Draft.

Payment Type [Please ()] Non-Third Party Payment Third Party Payment# (refer instruction 7)(Please attach 'Third Party Payment Declaration Form')

Account Type [Please ()] SAVINGS CURRENT NRE NRO FCNR OTHERS_____________(please specify)

Cheque / DD No.

(i) Amount of Cheque/DDin figures (R)

(ii) DD charges,if any, in figures (R)

Total Amount(i) + (ii)

Cheque / DD Date

Drawn on (Bank / Branch Name)

Pay-in Bank Account No.

in figures (R)

in words

... continued

Account No.Name of the Bank

AUTHORISATION FOR DONATION OF DIVIDEND

The Scheme offers only Dividend Option with Payout Facility

50% Dividend Donation Option (Default Option) 100% Dividend Donation Option

4. INVESTMENT DETAILS - Please t ick () choice of Options (refer instruction 5)

I / We hereby authorise HDFC Asset Management Company Limited (HDFC AMC) / HDFC Mutual Fund (HDFC MF) to donate thedividend amount, if any, received as per the Dividend Donation Option selected under the Scheme directly to IndianCancer Society (ICS). HDFC AMC / HDFC MF shall not be held responsible or liable in any manner whatsoever for making suchdonations on my / our behalf to ICS out of the dividend income under the Scheme.

Note: Once either of the Option is selected, the same can not be changed/ modified thereafter by the Investor and theamount once donated to ICS upon such authorization will not be refunded back to the Investor upon request.

SIGNATURE/S First / Sole Applicant / Second ThirdGuardian / PoA Applicant Applicant

x x x

# As provided in instruction 7, Third Party Payment on behalf of minor will not be accepted.


12/20

9. NOMINATION (refer instruction 13) This section is to be filled in only by investors who opt to hold the Unitsin non-demat form.

10. M ODE OF PAYMENT OF REDEMPTION / DIVIDEND PROCEEDS (refer instruction 9) [Please tick ()]

Unit holders will receive their redemption/ dividend proceeds (if any) directly into their bank account (as furnished bythem in Section 5) via Direct Credit / NEFT / ECS facility.

I/We want to receive the redemption / dividend proceeds (if any) by way of a cheque / demand draft instead of directcredit / credit through NEFT system / credit through ECS into my / our bank account

I/ We ___________________________________________________________________________________________________,

_________________________________________________