TRUSTEE Cholamandalam Trustee Company Ltd. The Trustee Cholamandalam Trustee Company Ltd., a company

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  • Offer Document

    Chola Mutual Fund

    512 - 514, Raheja Chambers, 213, Free Press Journal Marg, Nariman Point, Mumbai 400 021

    Chola Multi-Cap Fund An Open Ended Equity Scheme

    Initial issue of units at Rs.10/- per unit plus applicable load and at NAV related price upon re-opening

    Initial Offer Opens on : December 14, 2004

    Initial Offer Closes on : January 10, 2005

    SPONSOR

    Cholamandalam Investment & Finance Company Ltd. ‘Dare House’, No. 2, N S C Bose Road, Chennai - 600001

    INVESTMENT MANAGER

    Cholamandalam AMC Ltd.

    Registered Office: ‘Dare House’, No. 2, N S C Bose Road, Chennai - 600001 Head Office: 512-514, Raheja Chambers, 213, Free Press Journal Marg,

    Nariman Point, Mumbai 400021

    TRUSTEE

    Cholamandalam Trustee Company Ltd. ‘Dare House’, No. 2, N S C Bose Road, Chennai - 600001

    The offer document sets forth concisely the information about the scheme that a prospective investor ought to know before investing. The particulars of Chola Multi-Cap Fund, the Mutual Fund Scheme offered under this Offer Document, have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended from time to time and filed with the Securities and Exchange Board of India (SEBI) and the Units being offered for public subscription have not been approved or disapproved by the SEBI nor has SEBI certified the accuracy or adequacy of this Offer Document. This Offer Document contains information necessary for an investor to make informed investment decision in the Scheme described herein. Investors should carefully read the Offer Document prior to making an investment decision and retain the Offer Document for future reference. Investors may note that this Offer Document remains effective until a material change occurs. Material changes shall be filed with SEBI and circulated to all unit holders or may be publicly notified by advertisements in the newspapers subject to the applicable regulations. Investors are advised to ascertain from the mutual fund / its investor service centres / distributors or brokers about any further changes after the date of the offer document.

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  • TABLE OF CONTENTS Sr. No. Particulars Page No.

    1) Definitions 3

    2) Risk Factors 4

    3) Due Diligence Certificate 6

    4) Summary Features 7

    5) Fundamental Attributes of the Scheme 11

    6) Valuation of Scheme Assets 19

    7) Determination of Net Asset Value 21

    8) Fees & Expenses 22

    9) Condensed Financial Information 24

    10) Income and Investment Options 28

    11) Units, Offer & Allotment 30

    12) Buying and Redeeming after the Initial Offer Period 31

    13) Account Facilities 36

    14) Tax Benefits 37

    15) Investor Services 40

    16) Constitution of Chola Mutual Fund 43

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  • DEFINITIONS In this Offer Document the following words and expressions shall have the meaning specified herein unless the context otherwise requires: Asset Management Company / AMC / Investment Manager

    Cholamandalam AMC Ltd., the asset management company set up under the Companies Act, 1956

    Business Day Any day other than : 1) Saturday; 2) Sunday; 3) Day on which any one of Banks / RBI in Mumbai or the Stock

    Exchange, Mumbai or the National Stock Exchange are required or obliged by law of Executive Order to remain closed including the occasions when the functioning of any of the above banks or stock exchanges is affected due to a strike call made by a recognized Union / Management at any part of the Country;

    4) Day on which the Sale and Redemption of units is suspended by the Trustee / AMC.

    CDSC Contingent Deferred Sales Charge permitted under the Regulations Custodian HDFC Bank, HDFC Bank House, Senapati Bapat Marg, Lower Parel -

    (West), Mumbai - 400 013 acting as the Custodian of the Scheme. Equity and Equity related Securities

    Equity and equity related securities shall mean and include equity shares, preference shares, convertible bonds and debentures and warrants carrying the right to obtain equity shares.

    Entry Load Load on sale of units Exit Load Load on repurchase/redemption of units Investment Management Agreement or IMA

    The Investment Management Agreement dated October 23, 1996, executed between Cholamandalam Trustee Company Ltd. and Cholamandalam AMC Ltd.

    Mutual Fund or Fund Chola Mutual Fund, a Trust set up under the provisions of Indian Trust Act, 1882 and registered with SEBI vide Registration No. MF/035/97/9

    NAV Net Asset Value of the Units of Chola Multi-Cap Fund calculated in the manner provided in the Offer Document as may be prescribed by the SEBI Regulations from time to time

    Market capitalisation

    The market value of a quoted company which is calculated by multiplying its current share price by the number of shares outstanding.

    Large cap stocks Any stock having market capitalisation above Rs. 3000 Crore. Midcap Stocks Any stock having market capitalization between Rs. 300 Crore and Rs.

    3000 Crore. Small cap stocks Any stock having market capitalisation below Rs. 300 Crore. Multi-Cap Fund means the fund which will invest across various ranges of market

    capitalisation. Applicable NAV In respect of valid applications received upto 3 p.m. by the Mutual Fund

    alongwith a local cheque or a demand draft payable at par at the place where the application is received, the closing NAV of the day on which application is received shall be applicable. In respect of valid applications received after 3.00 p.m. by the Mutual Fund alongwith a local cheque or a demand draft payable at par at the place where the application is received, the closing NAV of the next business day shall be applicable. However, in respect of valid applications with outstation cheques/demand drafts not payable at par at the place where the application is received, closing NAV of the business day on which cheque/demand draft is credited shall be applicable.

    Offer Document This document issued by Chola Mutual Fund offering Units of Chola Multi- Cap Fund.

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  • Registrars Computer Age Management Services Ltd., (CAMS) Chennai, performing the functions of a Registrar.

    Regulations / SEBI Regulations

    SEBI (Mutual Funds) Regulations, 1996, as amended from time to time, for the operation and management of mutual funds

    Repo / Reverse Repo Sale / purchase of Government securities with simultaneous agreement to repurchase/resell them at a later date

    RBI Reserve Bank of India, established under the Reserve Bank of India Act, 1934

    SEBI Securities and Exchange Board of India established under Securities and Exchange Board of India Act, 1992

    Sponsor Cholamandalam Investment & Finance Company Ltd., having their registered office at Dare House, No. 2, N S C Bose Road, Chennai- 600 001

    The Trustee Cholamandalam Trustee Company Ltd., a company set up under the Companies Act, 1956

    Trust Deed The Registered Trust Deed dated October 17, 1996 establishing Cholamandalam Mutual Fund as a Trust under the Indian Trusts Act, 1882 and amended from time to time

    The Scheme Chola Multi-Cap Fund Unit or Units The interest of an investor which consists of one undivided share in the

    NAV of the relevant option of Multi-Cap Fund Unitholder A participant in Chola Multi-Cap Fund Chola Multi-Cap Fund

    The scheme that is being offered under this Offer Document for subscription

    RISK FACTORS

    Standard Risk Factors • Mutual Funds and securities investments are subject to market risks and there is no

    assurance that the objectives of the Scheme will be achieved. • As with any investment in stocks, shares, bonds, debentures or any securities in the capital

    markets, the NAV of the units issued under the Scheme can go up or down, depending on the factors and forces affecting the capital markets. The NAV of the Scheme may be affected by changes in the general level of interest rates and trading volumes.

    • Chola Multi-Cap Fund is only the name of the Scheme and do not in any manner indicate either the quality of the Scheme, its future prospects or returns.

    • The past performance of the AMC, Mutual Fund, the Sponsor or their Group affiliation is not indicative of the future performance of the Scheme.

    • The Sponsor is neither responsible nor liable for any loss resulting from the operation of the Scheme beyond the initial contribution of Rs. 1 Lac made by them towards setting up of the Mutual Fund.

    Scheme Specific Risk : 1. Returns: Investors in the Scheme are not being offered any guaranteed returns. 2. Performance Risk : Scheme’s performance can decrease or increase, depending on a

    variety of factors, which may affect the values and income generated by a Scheme’s portfolio of securities. The returns of a Scheme’s investments are based on the current yields of the securities, which may be affected generally by factors affecting capital markets such as price and volume, volatility in the stock markets, interest rates, currency exchange rates, foreign investment, changes in government and Reserve Bank of India policy, taxation, political, economic or other developments and closure of the stock exchanges. Investors should understand that the investment pattern indicated for the Scheme, inline with prevailing market c

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