Mirae Asset Mutual Fund Trustee Registered & Corporate Office · 2020-03-27 · Exchange Mechanism) in any single Equity/Debt Scheme of Mirae Asset Mutual Fund (irrespective of its

Key Information Memorandum - Mirae Asset India Equity Fund 1

Mirae Asset Mutual Fund

Trustee: Mirae Asset Trustee Company Private Limited

CIN: U65191MH2007FTC170231

Investment Manager: Mirae Asset Global Investments (India) Private Limited

CIN: U65993MH2006FTC165663

Registered & Corporate Office:

Unit No.606, Windsor Building, Off. C.S.T Road, Kalina, Santacruz (East),

Mumbai – 400098

Tel. No.: 022-678 00 300 Fax No.: 022- 6725 3940 – 47

Website: www.miraeassetmf.co.in E-mail: [email protected]

KEY INFORMATION MEMORANDUM

Of

Mirae Asset India Equity Fund

Multi Cap Fund - An open-ended equity scheme investing across large cap, mid cap, small cap stocks

Continuous Offer for units at NAV based prices.

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 distributors or from the website www.miraeassetmf.co.in

The Scheme particulars have been prepared in accordance with Securities and Exchange Board of

India (Mutual Funds) Regulations 1996, as amended till date, and filed with Securities and Exchange

Board of India (SEBI). The units being offered for public subscription have not been approved or

disapproved by SEBI, nor has SEBI certified the accuracy or adequacy of this KIM.

Investment

Objective

The investment objective of the scheme is to generate long term capital appreciation by

capitalizing on potential investment opportunities through predominantly investing in

equities, equity related securities. The Scheme does not guarantee or assure any

returns.

Asset

Allocation

Pattern of the

Instruments Indicative allocations

(% of total assets)

Risk

Profile

Minimum Maximum

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mailto:mirae



scheme Indian Equities and Equity Related

Securities* 65 100 High

Money market instruments/debt securities

Instruments**

(Including upto 25% of corpus in securitized

debt)

0 35 Low to

Medium

* Equity and Equity related instruments include convertible debentures, equity warrants,

convertible preference shares, equity derivatives etc. The scheme can invest upto 50% of

Net Assets of Scheme into equity derivatives instruments.

** Debt instruments include securitized debt upto 25% of corpus.

Under current regulations, the fund managers will seek to invest more than 65% of

corpus in equity shares of Indian/domestic companies and the balance portion of corpus

in domestic debt and money market instruments in order to avail of the prevailing tax

benefit of long term capital gains. However, investments in equity instruments are

subjected to change in case of amendment in the tax laws subject to SEBI regulations.

Provided further and subject to the above, any change in the asset allocation pattern

affecting the investment profile of the Scheme shall be effected only in accordance with

the provisions of sub-regulation 15A of Regulation 18 of the SEBI (MF) Regulations.

The corpus of the Scheme shall be predominantly invested in equity and equity related

securities including convertible debentures, equity warrants, convertible preference

shares, equity derivatives etc. in Indian markets. However, due to market conditions, the

AMC may invest beyond the range set out above. Such deviations shall normally be for

a short term purpose only, for defensive considerations and the intention being at all

times to protect the interests of the Unit Holders.

In the event of deviations, rebalancing will normally be carried out within 20 business

days. Investments other than in equity will be made for managing liquidity in the normal

market circumstances. The preferred instruments will be debt and money market

instruments include commercial papers, commercial bills, treasury bills, Government

securities, CBLO or notice money, certificate of deposit and any other like instruments

as specified by Reserve Bank of India from time to time.

For the purpose of further diversification and liquidity, the Scheme may invest in other

schemes managed by the same AMC or by the asset management company of any other

mutual fund without charging any fees on such investments, provided that aggregate

inter-scheme investment made in all schemes managed by the same AMC or in schemes

managed by the AMC of any other mutual fund shall not exceed 5% of the net asset

value of the Fund.

The Scheme may propose to invest in securitized debt upto the limit of 25% of corpus

and does not propose to underwrite issuances of securities of other issuers.

The Scheme may invest upto 50% of net assets in various derivatives instruments

including futures (index and stock), options (index and stock) and forward contracts that

are available for investment in India and overseas from time to time and are permissible

as per the applicable Regulations. Investment in derivative instruments will be made in

accordance with the investment objective and the strategy of the Scheme to protect the

value of the portfolio and to enhance returns. The investments shall also be subject to

the internal limits as may be laid down from time to time and such limits and restrictions

as may be prescribed by the regulations or any other regulatory body.


Investment

Strategy

The investment strategies for the scheme are as follows:

The Scheme aims to maximize the long term capital appreciation by finding investment

opportunities resulting from Indian economic growth and its structural shifts through

investing in equities, equities related securities with risk mitigating and controlling

measures.

The fund manager may not have any bias towards particular theme, sector, market cap

or style in picking investment opportunities. However, the fund manager may have the

flexibility to follow a focused approach on the investments and may relatively

aggressively manage the portfolio in comparison to diversified equity fund.

The fund manager broadly analyses the macro economy, industry trends and business

cycles. He will invest in companies that benefit from macroeconomic, industry and

sectoral trends (Top down Theme Overlay) after doing bottom up analysis and due

diligence, quality of management in terms of corporate governance and commitment to

minority shareholders etc. The Scheme may invest in equity derivatives instruments in

accordance with applicable regulations to the extent upto 50% of Net Assets of the

scheme for the purposes of portfolio hedging and portfolio balancing to optimize the

returns. Hedging does not mean maximization of returns but only attempts to reduce risk

that may be inherent in the investment.

Risk Profile of

the Scheme

Mutual Fund involve investment risks including the possible loss of principal. Please

read the SID / SAI carefully for details on risk factors before investment. The Scheme is

subjected to risk factors associated with Equity, Foreign Securities, Debt and Money

Market instruments, Securitized Debt, Derivatives and Unlisted Securities. Besides, the

scheme is also subjected to Liquidity Risk, Settlement Risk & Regulatory Risk

associated with Securities and Risk Factors associated with Securities Lending and

Short selling as detailed in the SID.

Risk Control

measures

a) Monitoring risk adjusted returns performance of the fund with respect to its peers and

its benchmark.

b) Monitoring the sectoral diversification of the fund to ensure that the fund is well

diversified across various sectors to avoid any sectoral risk.

c) Ensure that the fund is diversified across various stocks to avoid any stock specific

risk.

d) Tracking analysis of the fund on various risk parameters undertaken by independent

fund research / rating agencies or analysts and take corrective measures if needed.

Plans and

Options

The Scheme will have Regular Plan and Direct Plan** with a common portfolio and

separate NAVs. Investors should indicate the Plan for which the subscription is made by

indicating the choice in the application form.

Each of the above Regular and Direct Plan under the scheme will have the following

Options / Sub-options: (1) Growth Option and (2) Dividend Option. The Dividend

Option shall have 2 sub options: (a) Dividend Payout (b) Dividend Reinvestment.

Investors subscribing under Direct Plan of the Scheme will have to indicate “Direct

Plan” against the Scheme name in the application form i.e. “Mirae Asset India Equity

Fund - Direct Plan”. Treatment for investors based on the applications received is given

in the table below:

Scenario Broker Code

mentioned by the

investor

Plan mentioned

by the investor

Default Plan

to be captured

1 Not mentioned Not mentioned Direct Plan

2 Not mentioned Direct Direct Plan

3 Not mentioned Regular Direct Plan


4 Mentioned Direct Direct Plan

5 Direct Not Mentioned Direct Plan

6 Direct Regular Direct Plan

7 Mentioned Regular Regular Plan

8 Mentioned Not Mentioned Regular Plan

In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form,

the application shall be processed under Regular Plan. The AMC shall contact and

obtain the correct ARN code within 30 calendar days of the receipt of the application

form from the investor/ distributor. In case, the correct code is not received within 30

calendar days, the AMC shall reprocess the transaction under Direct Plan from the date

of application without any exit load.

However, the investors should note the following instructions for ensuring that the

application is treated as a direct application:

1. Broker code, if already printed on the forms must be struck off and countersigned by

the investors.

2. Ensure that the broker code block in the form is not left blank (i.e. it should be either

struck off or indicated 'direct' or NA)

However, if the investor does not specify the application as “Direct” or otherwise, then

the AMC treats such application as “Direct” in the interest of the investors.

**DIRECT PLAN: Direct Plan is only for investors who purchase /subscribe Units in a

Scheme directly with the Mutual Fund and is not available for investors who route their

investments through a Distributor.

Applicable

NAV (after

the scheme

opens for

repurchase)

In respect of valid Purchase (including Switch-in) (along with cheques/drafts/other

payment instruments)/ Redemption (including Switch-out) applications accepted at a

Designated Collection Centre, the closing NAV of the day (or immediately following

Business Day if that day is not a Business Day) on which the funds are available for

utilization shall be applicable for application amount equal to or more than Rs.2 lakhs,

irrespective of the time of receipt of such application.

In respect of valid Purchase (including Switch-in) (along with cheques/drafts/other

payment instruments) /Redemption (including Switch-out) applications accepted at a

Designated Collection Centre upto 3 p.m. on a Business Day, for application amount

less than Rs.2 lakhs, the closing NAV of that day will be applicable.

Investors are requested to note that in case of multiple valid applications for

Purchases/Switch-ins (either in Physical Form or in demat Form through Stock

Exchange Mechanism) in any single Equity/Debt Scheme of Mirae Asset Mutual Fund

(irrespective of its Plan/Option) for an aggregate investment amount equal to or more

than Rs. 2 Lakh on the same business day, such applications shall be consolidated at

Permanent Account Number (PAN) level irrespective of the number of folios to

determine the total application amount of Rs. 2 Lakh and above.

Accordingly, the applicable NAV for all such Purchases/Switch-ins taken together shall

be the closing NAV of the day on which funds are available for utilization, before the

cut off time. In case the funds are received under the Scheme on separate days and are

available for utilization on different business days before the cut off time, then the

applicable NAV shall be the business day on which the cleared funds are available for

the respective application amount.

The closing NAV of the day on which the funds are available for utilization shall be


applied where the aggregated amount of investments is Rs. 2 lacs and above:

a. All transactions received on the same day (as per Time stamp rule).

b. Transactions shall include purchases, additional purchases, excluding Switches,

SIP/STP/triggered transactions and various other eligible systematic transactions as

mentioned in the para titled “Special Products” of respective SIDs.

c. Aggregations shall be done on the basis of investor’s PAN. In case of joint holding,

transactions with similar holding structures shall be aggregated.

d. All transactions shall be aggregated where investor holding pattern is same as stated

above, irrespective of whether the amount of the individual transaction is above or

below Rs.2 lacs.

e. Only transactions in the same scheme shall be clubbed. This will include transactions

at plan/option level (Dividend, Growth and Direct).

f. Transactions in the name of minor, received through guardian should not be

aggregated with the transaction in the name of same guardian.

Minimum

Amount for

Application

Purchase Additional Purchase Repurchase

Rs. 5,000/- and in

multiples of Re. 1/-

thereafter.

Rs. 1000/- and in

multiples of Re.1/-

thereafter.

The minimum redemption amount

shall be ‘any amount’ or ‘any

number of units’ as requested by the

investor at the time of redemption

request.

Dispatch of

Repurchase

(Redemption)

Request

The redemption or repurchase proceeds shall be dispatched to the unitholders within 10

working days from the date of redemption or repurchase.

Benchmark

Index S&P BSE 200

Dividend

Policy

A dividend may be declared by the Trustee, at its discretion, from time to time (subject

to the availability of distributable surplus as calculated in accordance with the

Regulations). Such dividends if declared will be paid under normal circumstances, only

to those Unit holders who have opted for Dividend Option - Payout. There is no

assurance or guarantee to unit holders as to the rate of dividend distribution nor will that

dividend be regularly paid. If the Fund declares a dividend under the Scheme, AMC

shall dispatch the dividend warrants within 30 days from the date of declaration of the

dividend.

Name of the

Fund

Manager

The Scheme will be managed by Mr. Neelesh Surana and with effect from May 01,

2017, Mr. Harshad Borawake shall also co-manage the scheme.

Name of the

Trustee

Company

Mirae Asset Trustee Company Private Limited


Scheme

Performance

Particulars Regular Plan –

Growth option

Direct Plan – Growth

option

Compounded Annualised

Growth Returns (CAGR)

Scheme

returns

(%)

Benchmark

Returns

(%)

Scheme

returns

(%)

Benchmark

Returns

(%)

Since Inception 16.88 9.32 20.40 12.97

Last 1 year 22.13 18.99 22.99 18.99

Last 3 years 12.56 7.70 13.43 7.70

Last 5 years 21.52 14.74 22.56 14.74

NAV as on 28/02/2018 46.93

- 49.04

-

Since Inception date of the Scheme: April 4, 2008; Direct Plan was introduce on January

01, 2013

Graph depicting absolute returns for past 5 years:

Past performance may or may not be sustained in future and should not be used as

a basis for comparison with other investments.

Note: As per the SEBI standards for performance reporting, the returns are calculated on

Rs.10/- invested at inception. For this purpose the inception date is deemed to be the

date of allotment. The calculations of returns shall assume reinvestment of all payouts at

the then prevailing NAV. The absolute graph of Direct Plan is computed from the Date

of Allotment/1st April, as the case maybe, to 31st March of the respective financial year.

Expenses of

the Scheme

1. Load

Structure

2. Recur

ring expenses

a) Entry Load: Not Applicable

The upfront commission on investment made by the investor, if any, will be paid to the

ARN Holder (AMFI registered Distributor), directly by the investor, based on the

investor’s assessment of various factors including service rendered by the ARN Holder.

b) Exit Load:

If redeemed within 1 year (365 days) from the date of allotment: 1.00%;

If redeemed after 1 year (365 days) from the date of allotment: NIL

As per the regulations, the maximum recurring expenses including investment

management and advisory fee that can be charged to the scheme shall be subject to the

percentage limit of weekly net assets as in the table below:

First Rs. 100

crores

Next Rs. 300

crores

Next Rs. 300

crores

Balance

2.50% 2. 25% 2.00% 1.75%


In addition to the recurring expenses specified for the Scheme(s), the following

expenses may also be charged under the Scheme(s)-

(a) Expenses in respect of inflows from beyond top 30 cities - a maximum charge of

0.30% on the daily net assets computed as per the guidelines issued by SEBI for meeting

distribution expenses incurred for bringing inflows from such cities;

(b) Expenses not exceeding 0.20% p.a. of daily net assets towards Investment

Management and Advisory Fees and the various sub-heads of recurring expenses

mentioned under Regulation 52 (2) and (4) of SEBI (MF) Regulations respectively;

(c) Brokerage and transaction costs not exceeding 0.12% of the value of trades in case of

cash market transactions and 0.05% of the value of trades in case of derivatives

transactions; and

(d) Service Tax on Investment Management and Advisory Fees.

Actual expenses for the financial year 2016-17, inclusive of Service Tax : Regular Plan: 2.35%

Direct Plan: 1.59%

Waiver of

Load for

Direct

Applications

Not Applicable.

Tax treatment

for the

Investors

(Unitholders)

Investors are advised to refer to the paragraph on Taxation in the “Statement of

Additional Information” or “Scheme Information Document” and to consult their own

unit holder's tax advisors with respect to the specific amount of tax and other

implications arising out of their participation in the scheme.

Daily Net

Asset Value

(NAV)

Publication

The NAV will be declared on all business days and will be published in at least 2

newspapers. NAV can also be viewed on www.miraeassetmf.co.in and

www.amfiindia.com. Investors can also call us on “1800 2090 777” (toll-free from a

MTNL / BSNL landline) to know the latest NAV.

For Investor

Grievances

please contact

Mr. Girish Dhanani

Mirae Asset Mutual Fund

606, 6th Floor, Windsor Bldg, Off CST Road, Kalina, Santacruz (E),

Mumbai - 400 098. Telephone Nos.: 6780 0300 / 25

e-mail: [email protected]

Investors are advised to contact any of the ISCs or the AMC by calling the investor

line of the AMC at "1800 2090 777 " (toll-free from a MTNL / BSNL landline) for

any queries. Investors can also visit the website at www.miraeassetmf.co.in, for

complete details.

Unitholders’

Information

nfirmation specifying the units allotted shall be sent by way of email

and/or SMS within 5 Business Days of receipt of valid application/transaction to the

Unit holders registered e-mail address and/or mobile number.

atement (CAS), generated based on PAN,

containing details relating to all the transactions carried out by the investor across all

schemes of all mutual funds during the month and holding at the end of the month shall

be sent to the Unit holder in whose folio transactions have taken place during that

month, on or before 10th of the succeeding month by mail/email.

-availability of PAN, AMC will send monthly account statement for

any financial transactions undertaken during the month on or before 10th day of the

succeeding month by mail/email.

ders, the AMC/Fund will

provide an account statement (reflecting transactions of the Fund) to the investors within

5 Business Days from the receipt of such request by mail/email.

ling the

AMC/ISC/R&T. The Mutual Fund/ AMC shall dispatch an account statement within 5


http://www.amfiindia.com/

http://mail.miraeassetmf.co.in/exchweb/bin/redir.asp?URL=http://www.miraeassetmf.co.in/


Business Days from the date of the receipt of request from the Unit holder.

of every six months (i.e. September/ March), shall be sent by mail/e-mail on or before

10th day of succeeding month, to all such Unit holders in whose folios no transaction

has taken place during that period. The half yearly consolidated account statement will

be sent by e-mail to the Unit holders whose email address is available, unless a specific

request is made to receive in physical form.

shown in the statement issued by respective Depository Participants (DPs) periodically.

For more details, please refer the Scheme Information Document (SID) and Statement

of Additional Information (SAI).

Monthly Portfolio Disclosures: Portfolio of the Scheme(s) as on the last day of the

month shall be disclosed on or before the tenth day of the succeeding month on the

website of the Mutual Fund viz. www.miraeassetmf.co.in in the prescribed format.

Half Yearly Portfolio Disclosure: Full portfolio in the prescribed format shall be

disclosed either by publishing it in one national English daily newspaper circulating in

the whole of India and in a newspaper published in the language of the region where the

Head Office of the Mutual Fund is situated or by sending it to the Unit Holders within

one month from the end of each half-year, that is as on March 31 and September 30. It is

also displayed on the website of the Mutual Fund on www.miraeassetmf.co.in and

Association of Mutual Funds in India (AMFI) on www.amfiindia.com

Half Yearly Unaudited Financial Results: Half yearly Unaudited Financial Results

shall be hosted in the prescribed format on the website of the Mutual Fund on

www.miraeassetmf.co.in within one month from the close of each half year i.e. on

March 31 and on September 30 and an advertisement in this regard shall be published in

at least one English daily newspaper having nationwide circulation and in a newspaper

having wide circulation published in the language of the region where the Head Office

of the Mutual Fund is situated. A link for the half yearly Unaudited Financial Results

shall also be provided on website of Association of Mutual Funds in India (AMFI) on

www.amfiindia.com

Annual Financial Results: The Scheme wise annual report or an abridged summary

thereof shall be sent:

(i) by e-mail to the Unit holders whose e-mail address is available with the Fund,

(ii) in physical form to the Unit holders whose email address is not registered with the

Fund and/or those Unit holders who have opted / requested for the same.

The scheme wise annual report or an abridged summary thereof shall be sent by

mail/e-mail not later than four months from the date of closure of the relevant

accounting year (i.e. 31st March each year).

The physical copy of the scheme wise annual report or abridged summary thereof shall

be made available to the investors at the registered office of the AMC.

A link of the scheme annual report or abridged summary thereof shall be displayed

prominently on the website of the Fund and shall also be displayed on the website of

Association of Mutual Funds in India (AMFI).


http://www.amfiindia.com/


Additional Disclosures:

a. Details as per SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2016/42 dated March 18, 2016

Sr.

No. Particulars Details Details (with effect from May

01, 2017)

i. Name Mr. Neelesh Surana Mr. Harshad Borawake

ii. Age 45 years 36 Years

iii. Qualification B.E. (Mechanical), MBA (Finance) MBA (Finance), B.E. (Polymers)

iv. Last 10

years’

experience

Mr. Neelesh Surana is Head of Equities at

Mirae Asset Global Investments (India)

Pvt. Ltd. He joined Mirae Asset in 2008.

In his capacity as Head of Equities,

Neelesh spearheads the equity research

and investment function. He is

responsible for the managing existing

equity funds of Mirae Asset (India), as

well as, providing research support for the

global mandate. Following others

Schemes of the Fund are managed or co-

managed by him:

i. Mirae Asset India Equity Fund

ii. Mirae Asset Hybrid-Equity Fund

(Equity Portion)

iii. Mirae Asset Tax Saver Fund (Equity

Portion)

iv. Mirae Asset Emerging Bluchip Fund

An engineering graduate with MBA in

Finance, Neelesh has over 18 years of

experience in equity research and

portfolio management. Prior to Mirae,

Neelesh was with ASK Investment

Managers Ltd., as Senior Portfolio

Manager responsible for managing

domestic and international portfolios.

Mr. Borawake has professional

experience of more than 12 years

and his primary responsibility

includes Investment Analysis &

Research. Prior to this assignment,

he was associated with Motilal

Oswal Securities as Vice President

(Research). He has also been

associated with Capmetrics & Risk

Solutions as Research Analyst –

Equity.

v. Tenure for

which the

fund manager

has been

managing the

scheme

9 years (since May, 2008) He shall co-manage the fund from

May 01, 2017.

vi. Scheme’s

portfolio

turnover ratio

0.36 times as on February 28, 2018

Portfolio of the Schemes as on February 28, 2018:

Top 10 holdings of the Scheme:

Holding as on February 28,

2018

Industry/Rating Market Value

(Rs. In Lakhs)

%

EQUITY HOLDINGS

HDFC Bank Limited Banks 58,396.75 0.09


Holding as on February 28,

2018

Industry/Rating Market Value

(Rs. In Lakhs)

%

Infosys Limited Software 36,882.55 0.05

ICICI Bank Limited Banks 35,477.18 0.05

Housing Development

Finance Corporation Limited

Finance 29,088.83 0.04

Larsen & Toubro Limited Construction Project 27,010.75 0.04

State Bank of India Banks 23,190.75 0.03

Reliance Industries Limited Petroleum Products 22,394.07 0.03

ITC Limited Consumer Non Durables 22,095.71 0.03

Grasim Industries Limited Cement 21,442.25 0.03

Kotak Mahindra Bank

Limited

Banks 20,451.84 0.03

Other Equity 368,986.07 0.54

Total Equity 665,416.74 0.98

MUTUAL FUND UNITS

Mirae Asset Cash

Management Fund - DIRECT

GROWTH

Others 1,554.46 0.00

MUTUAL FUND UNITS

TOTAL

1,554.46 0.00

CASH & OTHER

RECEIVABLES

CBLO / Repo 8,420.91 0.01 Net Receivalbes/(Payables) 3,133.77 0.00

CASH & OTHER

RECEIVABLES Total

11,554.68 0.02

Grand Total 678,525.87 1.00

Top 10 Sector-wise allocation of holdings of the Scheme:

Industry Allocation (Domestic Equities) % Weightage

Banks 27.27%

Software 9.43%

Consumer Non Durables 8.58%

Auto 7.30%

Finance 6.59%

Construction Project 5.20%

Petroleum Products 5.10%

Pharmaceuticals 3.92%

Cement 3.68%

Gas 2.78%

Others 18.23%

Total 98.07%

For complete details of the portfolio refer: https://www.miraeassetmf.co.in/downloads/portfolios

Date: March 15, 2018









Documents

Mirae Asset Mutual Fund Trustee Registered & Corporate Office · 2020-03-27 · Exchange Mechanism) in any single Equity/Debt Scheme of Mirae Asset Mutual Fund (irrespective of its