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
Cholamandalam Investment & Finance Company Ltd.
‘Dare House’, No. 2, N S C Bose Road, Chennai - 600001
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
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
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.
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
In this Offer Document the following words and expressions shall have the meaning specified
herein unless the context otherwise requires:
Company / AMC /
Cholamandalam AMC Ltd., the asset management company set up under
the Companies Act, 1956
Business Day Any day other than :
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
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
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
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.
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
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-
Registrars Computer Age Management Services Ltd., (CAMS) Chennai, performing
the functions of a Registrar.
Regulations / SEBI
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,
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
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
The scheme that is being offered under this Offer Document for
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