ICICIdirect.com :: Mutual Funds :: Mutual Funds FAQ [PDF]

MUTUAL FUNDS New Fees Structure FAQ What is a Mutual Fund? What is an Asset Management Company? What is NAV? How often is the NAV declared? What are the benefits of investing in Mutual Funds? Are there any risks involved in investing in Mutual Funds? What are the different types of Mutual funds? What are the different plans that Mutual Funds offer? What is Exit Load? What is redemption price? What is repurchase price? What is a Switch? What is Shut-Out Period? Is there any minimum lock-in period for my units? Who are the issuers of Mutual funds in India? What are the factors that influence the performance of Mutual Funds? As a new investor how do I select a particular scheme? What are the rights that are available to a Mutual Fund holder? It is very often said that Mutual Funds have performed badly. Please explain? Where can I view the details of my mutual fund folios purchased through www.icicidirect.com ? when will I be able to see my purchase details? Do I have to pay any entry load for mutual fund purchases made after August 01, 2009 ? What exit load will I have to pay as on date? How does the new SEBI Guidelines impact my mutual fund transactions ? In light of the new SEBI guidelines, what would be my effective purchase price? I have invested in a New Fund Offer (NFO) of a scheme launched prior to August 1, 2009. Will I too get the benefit of the new SEBI Guidelines on entry load? Will I be charged Transaction Charges on investments made after August 01, 2009, in NFOs launched prior to August 01, 09?

NON FINANCIAL TRANSACTIONS (NFT) How to change the address, Name of the Holder,Contact details, Email ID, Bank Details & Tax /Residence Status in Mutual Fund in AMC records? How to change the Mutual Fund Dividend Option? How do I consolidate the Folio's. Can I make a nomination for the mutual fund units purchased through www.icicidirect.com? Will nomination(s) made in my linked demat/ bank account(s) be automatically updated for the mutual fund units purchased online? Can I cancel a nomination made by me? What is the effect of making a nomination? Who can make a nomination? Whom can I nominate? Can I nominate a Non Resident Indian as my nominee? Can I nominate a minor as my nominee? Can I nominate more than one person in my Mutual Fund Folios ? Will my existing mutual fund nomination automatically get updated for all future online Mutual Fund purchases also? Can I change my nominee? How do I place a request for Nomination or Change in nomination / Cancellation of my existing nomination through www.icicidirect.com? I have purchased mutual fund units through www.icicidirect.com. Can I send my nomination request directly to the respective Asset Management Company (AMC) of the mutual fund(s) ? Can I transfer My Mutual Fund Unit holdings from one ICICIdirect A/c to another? What do I do if I do not have the canceled cheque or the statement of the old bank account which is currently closed/inactive? What are documents required in case if I have only changed the bank account type from NRI to RI or vice versa and not the bank account number? What is Transfer In : How to place order for online Transfer In? How to cancel online Transfer In Order? What process to be followed if Folio is held in joint mode but icicidirect.com account is in single mode? Is submission of canceled cheque or other proof of bank account mandatory? What can be done if Existing bank account that is registered in the folio is closed? What details should folio statement contain ? For AMC - Franklin Templeton what details should I enter under folio details ? How does the Transfer In request take place? Will all schemes available in my folio get transferred in to my account after completion of Transfer In ? Can the rejected Transfer In order be rectified & sent for re-processing? What is Transmission of Mutual Funds ? What are the documents required for Transmission of mutual fund units? when will I be able to see my purchase details? Do I have to pay any entry load for mutual fund purchases made after August 01, 2009 ? What exit load will I have to pay as on date? How does the new SEBI Guidelines impact my mutual fund transactions ? What happens to my Mutual Fund Folios upon closure of my Trading Account in which Mutual Funds units are held and do I need to follow Transfer Out procedure for the same?

ONLINE MF TRANSACTIONS ON ICICIdirect Do I need to allocate funds for investing in Mutual Funds? Can I modify /cancel my transactions? Will I get an online confirmation of my transactions? Can I transact anytime during the day? Can I purchase after the time, which is displayed beside the scheme? Is there a minimum transaction amount for each scheme? Can I use the funds allocated for investments in secondary market towards investments in Mutual Fund ? After my first purchase, can I immediately enter another transaction? Who are the users of this facility and how? I do not have an account with ICICI Direct, but would like to invest in Mutual Funds. What do I do? How do I convert my existing portfolio units to icicidirect's portfolio? How do I purchase from your web site? Can I as an NRI buy Mutual Fund Units in the PINS account? When will I be able to see my purchase details? How do I redeem my Mutual Fund scheme units? Will TDS be deducted on the redemption of units? If yes what will be the basis of deduction of TDS Where can I see the TDS deducted on the sale proceeds? How do I switch from a particular scheme? How does the Automatic/ Systematic Investment Plan (AIP/ SIP) work? How does the Automatic/ Systematic Withdrawal Plan (AWP/SWP) work? Will TDS be deducted on dividend received? Can I transact on a holiday?

Adding Joint Holder in Mutual Fund Investment What is meant by Joint Holder facility in Investment products? Can I invest in mutual funds in joint holder mode through www.icicidirect.com? What is meant by Investment products? What will be the mode of operation under the joint holding pattern? Who can avail of the Joint Holder facility? Can a joint holder in the linked demat or bank account make a request for availing the Joint Holder facility? How can I avail of the Joint Holder facility? Who can be registered as Joint Holder ? Can the joint holders in my Demat and Bank Account be registered as joint holders for Investment products also? What is the eligibility criteria for registering a person as Joint Holder? Is there any limit on the number of persons I can register as joint holders ? How many Joint holders can I select while making Investments? How would I know what is the permitted number of Joint Holders any Investment? Is there any limit on the different combination of Joint Holders while making investments? I am a registered customer of I-Sec. What is the process for registering a person as my Joint Holder ? I am not a registered customer. Is it mandatory to fill the Joint Holder request letter at the time of account opening? Is it mandatory for the Joint Holders to be KYC complaint with CVL? Can I add Joint Holders in my existing folios? How will I know about status of my Joint Holder registration request? Where can I view the names of my registered Joint Holders? Can I deactivate any Joint Holder at a later date? What is the process for deactivation of Joint Holder/s? What happens after a Joint Holder is deactivated ? Is there a guide that will help me understand how to place transactions in Joint mode? Are there any changes in the way I redeem or switch investments held in Joint mode? Can I make Additional Purchase from the Unit holdings page ? Can I Transfer-In my existing offline Mutual Fund units which I am holding in Joint Holding mode to my ICICIdirect account ? Can the Joint Holders give instructions for any transaction on www.icicidirect.com? Will I-Sec send related communications to the joint holders for investment held with them jointly? Incase of an unfortunate event of demise of any of the Joint Holders, what formalities have to be completed by the surviving Joint Holders ? What is a Mutual Fund?

A Mutual Fund is a body corporate that pools the savings of a number of investors and invests the same in a variety of different financial instruments, or securities. The income earned through these investments and the capital appreciation realised by the scheme are shared by its unit holders in proportion to the number of units owned by them. Mutual funds can thus be considered as financial intermediaries in the investment business who collect funds from the public and invest on behalf of the investors. The losses and gains accrue to the investors only. The Investment objectives outlined by a Mutual Fund in its prospectus are binding on the Mutual Fund scheme. The investment objectives specify the class of securities a Mutual Fund can invest in. Mutual Funds invest in various asset classes like equity, bonds, debentures, commercial paper and government securities. Top What is an Asset Management Company?

An Asset Management Company (AMC) is a highly regulated organisation that pools money from investors and invests the same in a portfolio. They charge a small management fee, which is normally 1.5 per cent of the total funds managed. Top What is NAV?

NAV or Net Asset Value of the fund is the cumulative market value of the assets of the fund net of its liabilities. NAV per unit is simply the net value of assets divided by the number of units outstanding. Buying and selling into funds is done on the basis of NAV-related prices. NAV is calculated as follows: NAV= Market value of the fund's investments+Receivables+Accrued Income- Liabilities-Accrued Expenses _______________________________________________________________________________ Number of Outstanding units Top How often is the NAV declared?

The NAV of a scheme has to be declared at least once a week. However many Mutual Fund declare NAV for their schemes on a daily basis. As per SEBI Regulations, the NAV of a scheme shall be calculated and published at least in two daily newspapers at intervals not exceeding one week. However, NAV of a close-ended scheme targeted to a specific segment or any monthly income scheme (which are not mandatorily required to be listed on a stock exchange) may be published at monthly or quarterly intervals. Top What are the benefits of investing in Mutual Funds?

1. Qualified and experienced professionals manage Mutual Funds. Generally, investors, by themselves, may have reasonable capability, but to assess a financial instrument a professional analytical approach is required in addition to access to research and information and time and methodology to make sound investment decisions and keep monitoring them. 2. Since Mutual Funds make investments in a number of stocks, the resultant diversification reduces risk. They provide the small investors with an opportunity to invest in a larger basket of securities. 3. The investor is spared the time and effort of tracking investments, collecting income, etc. from various issuers, etc. 4. It is possible to invest in small amounts as and when the investor has surplus funds to invest. 5. Mutual Funds are registered with SEBI. SEBI monitors the activities of Mutual Funds. 6. In case of open-ended funds, the investment is very liquid as it can be redeemed at any time with the fund unlike direct investment in stocks/bonds. Top Are there any risks involved in investing in Mutual Funds?

Mutual Funds do not provide assured returns. Their returns are linked to their performance. They invest in shares, debentures and deposits. All these investments involve an element of risk. The unit value may vary depending upon the performance of the company and companies may default in payment of interest/principal on their debentures/bonds/deposits. Besides this, the government may come up with new regulation which may affect a particular industry or class of industries. All these factors influence the performance of Mutual Funds. Top What are the different types of Mutual funds? (a) On the basis of Objective Equity Funds/ Growth Funds Funds that invest in equity shares are called equity funds. They carry the principal objective of capital appreciation of the investment over the medium to long-term. The returns in such funds are volatile since they are directly linked to the stock markets. They are best suited for investors who are seeking capital appreciation. There are different types of equity funds such as Diversified funds, Sector specific funds and Index based funds. Diversified funds These funds invest in companies spread across sectors. These funds are generally meant for risk-taking investors who are not bullish about any particular sector. Sector funds These funds invest primarily in equity shares of companies in a particular business sector or industry. These funds are targeted at investors who are extremely bullish about a particular sector. Index funds These funds invest in the same pattern as popular market indices like S&P 500 and BSE Index. The value of the index fund varies in proportion to the benchmark index. Tax Saving Funds These funds offer tax benefits to investors under the Income Tax Act. Opportunities provided under this scheme are in the form of tax rebates U/s 88 as well saving in Capital Gains U/s 54EA and 54EB. They are best suited for investors seeking tax concessions. Debt / Income Funds These Funds invest predominantly in high-rated fixed-income-bearing instruments like bonds, debentures, government securities, commercial paper and other money market instruments. They are best suited for the medium to long-term investors who are averse to risk and seek capital preservation. They provide regular income and safety to the investor. Liquid Funds / Money Market Funds These funds invest in highly liquid money market instruments. The period of investment could be as short as a day. They provide easy liquidity. They have emerged as an alternative for savings and short-term fixed deposit accounts with comparatively higher returns. These funds are ideal for Corporates, institutional investors and business houses who invest their funds for very short periods. Gilt Funds These funds invest in Central and State Government securities. Since they are Government backed bonds they give a secured return and also ensure safety of the principal amount. They are best suited for the medium to long-term investors who are averse to risk. Balanced Funds These funds invest both in equity shares and fixed-income-bearing instruments (debt) in some proportion. They provide a steady return and reduce the volatility of the fund while providing some upside for capital appreciation. They are ideal for medium- to long-term investors willing to take moderate risks. Hedge Funds These funds adopt highly speculative trading strategies. They hedge risks in order to increase the value of the portfolio. (b) On the basis of Flexibility Open-ended Funds These funds do not have a fixed date of redemption. Generally they are open for subscription and redemption throughout the year. Their prices are linked to the daily net asset value (NAV). From the investors' perspective, they are much more liquid than closed-ended funds. Investors are permitted to join or withdraw from the fund after an initial lock-in period. Close-ended Funds These funds are open initially for entry during the Initial Public Offering (IPO) and thereafter closed for entry as well as exit. These funds have a fixed date of redemption. One of the characteristics of the close-ended schemes is that they are generally traded at a discount to NAV; but the discount narrows as maturity nears. These funds are open for subscription only once and can be redeemed only on the fixed date of redemption. The units of these funds are listed (with certain exceptions), are tradable and the subscribers to the fund would be able to exit from the fund at any time through the secondary market. Units alloted under Fixed Term Plans & Fixed Maturity Plans shall be credited in your linked Demat account. Interval funds These funds combine the features of both open-ended and close-ended funds wherein the fund is close-ended for the first couple of years and open-ended thereafter. Some funds allow fresh subscriptions and redemption at fixed times every year (say every six months) in order to reduce the administrative aspects of daily entry or exit, yet providing reasonable liquidity. (c) On the basis of geographic location Domestic funds These funds mobilise the savings of nationals within the country. Offshore Funds These funds facilitate cross border fund flow. They invest in securities of foreign companies. They attract foreign capital for investment. Is there is any tax applicable on the redemption of mutual funds? Yes. The tax applicable is called as STT i.e. Security transaction tax which is 0.25%. STT is applicable only in case of redemption of equity linked schemes Top What are the different plans that Mutual Funds offer?

Growth Plan and Dividend Plan A growth plan is a plan under a scheme wherein the returns from investments are reinvested and very few income distributions, if any, are made. The investor thus only realises capital appreciation on the investment. This plan appeals to investors in the high income bracket. Under the dividend plan, income is distributed from time to time. This plan is ideal to those investors requiring regular income. Dividend Reinvestment Plan Dividend plans of schemes carry an additional option for reinvestment of income distribution. This is referred to as the dividend reinvestment plan. Under this plan, dividends declared by a fund are reinvested on behalf of the investor, thus increasing the number of units held by the investors. Automatic Investment Plan Under the Automatic Investment Plan (AIP) also called Systematic Investment Plan (SIP), the investor is given the option for investing in a specified frequency of months in a specified scheme of the Mutual Fund for a constant sum of investment. AIP allows the investors to plan their savings through a structured regular monthly savings program. Automatic Withdrawal Plan Under the Automatic Withdrawal Plan (AWP) also called Systematic Withdrawal Plan (SWP), a facility is provided to the investor to withdraw a pre-determined amount from his fund at a pre-determined interval. Top What is Exit Load?

The non refundable fee paid to the Asset Management Company at the time of redemption/ transfer of units between schemes of mutual funds is termed as exit load. It is deducted from the NAV(selling price) at the time of such redemption/ transfer. Top What is redemption price?

Redemption price is the price received on selling units of open-ended scheme. If the fund does not levy an exit load, the redemption price will be same as the NAV. The redemption price will be lower than the NAV in case the fund levies an exit load. Top What is repurchase price?

Repurchase price is the price at which a close-ended scheme repurchases its units. Repurchase can either be at NAV or can have an exit load. Top What is a Switch?

Some Mutual Funds provide the investor with an option to shift his investment from one scheme to another within that fund. For this option the fund may levy a switching fee. Switching allows the Investor to alter the allocation of their investment among the schemes in order to meet their changed investment needs, risk profiles or changing circumstances during their lifetime. Top What is Shut-Out Period?

After the closure of the Initial Offer Period, on an ongoing basis, the Trustee reserves a right to declare Shut-Out period not exceeding 5 days at the end of each month/quarter/half-year, as the case may be, for the investors opting for payment of dividend under the respective Dividends Plans. The declaration of the Shut-Out period is envisaged to facilitate the AMC/the Registrar to determine the Units of the unitholders eligible for receipt of dividend under the various Dividend Options. Further, the Shut-Out period will also help in expeditious processing and despatch of dividend warrants. During the Shut-Out period investors may make purchases into the Scheme but the Purchase Price for subscription of units will be calculated using the NAV as at the end of the first Business Day in the following month/quarter/half-year as the case may be, depending on the Dividend Plan chosen by the investor. Therefore, if investments are made during the Shut -Out period, Units to the credit of the Unitholder's account will be created only on the first Business Day of the following month/ quarter/half year, as the case may be, depending on the dividend plan chosen by the investor. The Shut-Out period applies to new investors in the Scheme as well as to Unitholders making additional purchases of Units into an existing folio. The Trustee reserves the right to change the Shut-Out period and prescribe new Shut- Out period, from time to time. Top Is there any minimum lock-in period for my units?

There is no lock-in period in the case of open-ended funds. However in the case of tax saving funds a minimum lock-in period is applicable. The lock-in period for different tax saving schemes are as follows: section

minimum lock-in period

U/s 80C

3 yrs.

U/s 54EA

3 yrs.

U/s 54EB

7 yrs. Top

Who are the issuers of Mutual funds in India?

Unit Trust of India was the first mutual fund which began operations in 1964. Other issuers of Mutual funds are Public sector banks like SBI, Canara Bank, Bank of India, Institutions like IDBI, ICICI, GIC, LIC, Foreign Institutions like Alliance, Morgan Stanley, Templeton and Private financial companies like Kothari Pioneer, DSP Merrill Lynch, Sundaram, Kotak Mahindra, Cholamandalam etc. Top What are the factors that influence the performance of Mutual Funds?

The performances of Mutual funds are influenced by the performance of the stock market as well as the economy as a whole. Equity Funds are influenced to a large extent by the stock market. The stock market in turn is influenced by the performance of the companies as well as the economy as a whole. The performance of the sector funds depends to a large extent on the companies within that sector. Bond-funds are influenced by interest rates and credit quality. As interest rates rise, bond prices fall, and vice versa. Similarly, bond funds with higher credit ratings are less influenced by changes in the economy. Top As a new investor how do I select a particular scheme?

Choice of any scheme would depend to a large extent on the investor preferences. For an investor willing to undertake risks, equity funds would be the most suitable as they offer the maximum returns. Debt funds are suited for those investors who prefer regular income and safety. Gilt funds are best suited for the medium to long-term investors who are averse to risk. Balanced funds are ideal for medium- to long-term investors willing to take moderate risks. Liquid funds are ideal for Corporates, institutional investors and business houses who invest their funds for very short periods. Tax Saving Funds are ideal for those investors who want to avail tax benefits. An important aspect while selecting a particular scheme is the duration of the investment. Depending on your time horizon you can select a particular scheme. Besides all this, factors like promoter's image, objective of the fund and returns given by the funds on different schemes should also be taken into account while selecting a particular scheme. Top What are the rights that are available to a Mutual Fund holder?

As per SEBI Regulations on Mutual Funds, an investor is entitled to 1. Receive Unit certificates or statements of accounts confirming your title within 6 weeks from the date your request for a unit certificate is received by the Mutual Fund. 2. Receive information about the investment policies, investment objectives, financial position and general affairs of the scheme; 3. Receive dividend within 42 days of their declaration and receive the redemption or repurchase proceeds within 10 days from the date of redemption or repurchase 4. The trustees shall be bound to make such disclosures to the unit holders as are essential in order to keep them informed about any information which may have an adverse bearing on their investments. 5. 75% of the unit holders with the prior approval of SEBI can terminate the AMC of the fund. 6. 75% of the unit holders can pass a resolution to wind-up the scheme. 7. An investor can send complaints to SEBI, who will take up the matter with the concerned Mutual Funds and follow up with them till they are resolved. Top It is very often said that Mutual Funds have performed badly. Please explain?

The performance of Mutual Funds is evaluated on the basis of absolute increase or decrease in its Net Asset Value (NAV). However a fund's performance should be evaluated on the basis of a comparison with the relevant indices and alternative instruments. The NAV varies from fund to fund. Therefore this argument is not entirely true. However some funds have performed poorly with their NAV quoting well below their original IPO price. Top Where can I view the details of my mutual fund folios purchased through www.icicidirect.com ?

To view the details of your mutual fund folios purchased online visit the Unit Holdings page of the Mutual Fund section of your ICICIDirect trading account. Top when will I be able to see my purchase details?

The order book reflects details of all the orders placed by you. All successful transactions will be updated in the Unit Holding link within T+3 or T+5 days (depending on the AMC's rules and regulation) Top Do I have to pay any entry load for mutual fund purchases made after August 01, 2009 ?

No. Prior to the implementation of the SEBI guideline, an entry load of 2.25% was charged on all Mutual fund purchases. As per the new guidelines issued by SEBI, with effect from August 1, 2009, entry load will not be charged on purchases in existing mutual fund schemes or on schemes launched thereafter . However, any investment made by you in an NFO which was launched prior to August 1, 2009 will continue to attract entry load and other charges as specified in the offer document. Top What exit load will I have to pay as on date?

Exit Load varies for different schemes and is generally charged as a percentage of NAV. The Exit load normally varies between 0.25% to 2% of the redemption value. Some mutual funds however do not charge any exit load. Such mutual funds are referred to as 'No Load Funds'. Top How does the new SEBI Guidelines impact my mutual fund transactions ?

SEBI Guidelines stipulate that with effect from August 1, 2009,there shall be no entry load for any Mutual Fund scheme whether existing or new. SEBI Guidelines further stipulate that investors will be required to pay upfront commission directly to distributors. This means that earlier if you invested Rs. 10,000/- in a mutual fund, your total invested amount was reduced to the extent of entry load charged ie Rs.225 (@ 2.25%) thereby making your actual investment Rs9775/-. However, w.e.f August 1, 2009, the entire Rs. 10.000/- invested by you would be your investment in the mutual fund. However, while you will not be charged any entry load, you will have to pay 'Transaction charges' directly to your distributor as per the applicable fee structure. Click here for more information on the I-Sec Fee structure. Top In light of the new SEBI guidelines, what would be my effective purchase price?

Effective Purchase Price is the sum of the NAV, transaction charges and service charges divided by the number of units purchased. For example: Let's say you purchased 1,000 MF units for Rs. 10,000. If the transaction and service charges applicable are Rs. 100 and Rs. 10.30 respectively, then the effective purchase price per unit will be Rs. 10.11 (i.e. Rs. 10110.30/1000 units). It is the price which you actually pay to purchase a single unit of a Mutual Fund Scheme. Top I have invested in a New Fund Offer (NFO) of a scheme launched prior to August 1, 2009. Will I too get the benefit of the new SEBI Guidelines on entry load?

No. Entry load has been abolished only with effect from August 1, 2009. Any investment made by you in an NFO which was launched prior to August 1, 2009 will continue to attract Entry Load and other charges as specified in the offer document. Top Will I be charged Transaction Charges on investments made after August 01, 2009, in NFOs launched prior to August 01, 09?

Yes. Although upfront Transaction Charges and Goods & Services Tax(GST) would be charged to you on placing a purchase order in NFO launched prior to August 1, 2009, such charges will be refunded subsequently. Top Do I need to allocate funds for investing in Mutual Funds?

Yes, just as in the secondary market, you will need to allocate funds for the purpose of investing in Mutual Funds. Under the Modify Allocation option you would have a separate section for allocating money for Mutual Funds. Also the funds which are allocated for investments in Mutual Fund will not be allowed for transactions in the secondary market. Top Can I modify /cancel my transactions?

Yes, while placing any mutual fund order, modify or cancel option would be available to you till the final confirmation of the order is placed by you. Once you click on Final Confirmation you cannot modify or cancel the order placed by you. You can only modify / cancel any Systematic Investment Plan (SIP) / Systematic Withdrawal Plan (SWP) order placed by you. Top Will I get an online confirmation of my transactions?

As soon as you confirm your order you can view the details of your transaction in the order book. Also an email will be sent to your email address. Top Can I transact anytime during the day?

Yes, you can transact at any time of the day. However, in order to get the applicable NAV for the current day you would have to transact before the cut-off time of the scheme. If you place any order after the said cut-off time, you would be eligible for applicable NAV of the next day. As per SEBI guidelines the cutoff time for accepting orders in Non-liquid funds is 1500 hrs and in Liquid funds it is 1400 hrs. However taking into account internal transaction processing time, ICICIdirect.com has kept the cutoff time, for accepting orders in Non-liquid funds as 1430 hrs and in Liquid funds as 1330 hrs. Top Can I purchase after the time which is displayed beside the scheme?

In order to get the applicable NAV for the same day, you can purchase up to the cut-off time of the scheme, after which you will get the next day's applicable NAV. (If the next day is a holiday, then the applicable NAV of the next working day). Top Is there a minimum transaction amount for each scheme?

As decided by the fund, there is a minimum transaction amount indicated against each scheme. You will get to see the minimum transaction amount in the Place Order screen. Top Can I use the funds allocated for investments in secondary market towards investments in Mutual Fund ?

In order to invest in Mutual Fund, you will need to separately allocate funds for the same. This option is available to you in the Modify Allocation screen. Top After my first purchase, can I immediately enter another transaction?

After your first purchase you will not be permitted to transact for a period of 4 to 7 days depending on the processing time of the Mutual Funds' Registrar. After you place an investment order in any Mutual Fund for the first time a Folio Number is generated for that particular fund. Until the Folio number is generated you will not be allowed to place any further orders for that particular Mutual Fund. After the Folio Number is generated you can place any number of order in any schemes of the Mutual Fund. In the case of Franklin Templeton MF and Birla Sun Life MF, the Folio Number is generated for each scheme offered by the MF. Hence the processing time would be for each scheme of the Mutual Fund. Suppose if you place an order for a Liquid Fund, then a folio number is generated for that scheme only and to place an order for the first time in a balanced fund you will have again wait till a new folio number is generated. Top Who are the users of this facility and how?

All ICICI Direct customers who are Non-resident Indians, whose accounts are activated, can use the same login Id and password to invest in Mutual Funds.You can invest in units of a Mutual fund from either the Non-Pins NRE or Non-Pins NRO account. Top I do not have an account with ICICI Direct, but would like to invest in Mutual Funds. What do I do?

You can contact any ICICI Centre to open accounts or fill in the application form on the web site and our Customer Service Executive will visit you for opening your e-invest account. Once the processing of your form is completed, you can start investing in Mutual Funds online. Top How do I convert my existing portfolio units to icicidirect's portfolio?

You can transfer in your existing mutual fund units to your ICICIdirect account by filling a Transfer-in request form which is available on the site. However this facility of Transfer-in can be availed only if you're a sole holder in the physical units else your request cannot be processed. Transfer In request can be placed through the "Transfer In" link on the Mutual Fund page. Fill in the existing folio number alloted for that scheme. Thereafter you need to take a printout of the duly filled form and forward it to ICICIdirect. In case of transfer-in of dividend schemes, the dividend re-investment option will by default be activated and will appear as "Y". In case the dividend re-investment option as per your records is dividend pay-out "N", to change the dividend re-investment option you can use the modify dividend re-investment hyperlink. The units are converted to electronic form within 30 days. You can check the status of your request the TI Book link. Once the units are converted into electronic form, the same will be updated in the Unit Holdings link. Top How do I purchase from your web site?

Click on the link "Place Order " in the MF Trading section. This will take you to all the schemes of the fund. The details of the scheme are indicated against each scheme. Select PURCHASE in the drop down menu and then click on GO to place your purchase order. You can also select the option for dividend reinvestment through the purchase order screen. In case you are an NRI, first you need to decide is whether you want repatriation benefit or not. If you want repatriation benefit, select the Non-Pins NRE account. Select Non-Pins NRO account if you do not want repatriation benefit. Top Can I as an NRI buy Mutual Fund Units in the PINS account?

No, you cannot purchase mutual fund units in the PINS account. You can only do so in the Non-Pins account. Top When will I be able to see my purchase details?

The details of your transactions will be immediately updated in your order book. An email will also be sent to you and the entry in your portfolio will be displayed within T+3 days. Top How do I redeem my Mutual Fund scheme units?

Click on the link "Place Order" in the MF Trading section. This will display all the scheme units held by you, with details against each scheme. Select the REDEEM option in the drop down menu and then click on GO to place your redemption request. You can either redeem a certain amount or specify the number of units held by you. There is a minimum transaction amount that is indicated against each scheme. A cut off time is also displayed to get that day's NAV. The details of your transactions will be immediately updated in your order book, an email will be sent and your bank account will be credited after T+3 days (the date of pay-out would differ for scheme and will not necessarily be T+3 days). Top Will TDS be deducted on the redemption of units? If yes what will be the basis of deduction of TDS

TDS is not deducted on the sale proceeds for Resident Indians. TDS rate for NRI for MF is as under: Tax deducted at source pertaining to NRI Investors



Short Term Capital Gain

Long Term Capital Gain

Equity

15.450%

Nil

Debt

30.900%

20.60%*

Note: These are the tax rates applicable to capital gains, in case the rate of tax is lower than 20% and if the NRI does not have a Permanent Account Number, then for the purpose of TDS, the withholding tax rate would be 20%. Top Where can I see the TDS deducted on the sale proceeds?

The TDS deducted for NRI can be seen by Clicking on the executed hyperlink against the transaction. You will find the complete details of the redemption including the TDS deducted. Top How do I switch from a particular scheme?

Click on the link "Place Order" in the MF Trading section. This will display all the scheme units held by you, with details against each scheme. Select the SWITCH option in the drop down menu and then click on GO to place your switch request. Click on the scheme you wish to Switch From. There is a minimum transaction amount indicated against the scheme. Also the scheme you wish to "Switch To" carries a minimum transaction amount. Therefore the amount which you will be switching will be higher of the two. The details of your transactions will be immediately updated in your order book, an email will be sent showing the "Switch From" and "Switch To" units. The entry in your portfolio will be displayed within T+3 days. Since this does not involve any transfer of funds, your bank account will not be affected. Switch Out is treated as redemption. Hence, in case of NRI's, TDS will be deducted on Switch out transaction also. The gross amount after deducting the TDS will be used for switch in Transaction i.e. units worth equivalent to the net amount will be utilized to switching in into the desired scheme. Top How does the Automatic/ Systematic Investment Plan (AIP/ SIP) work?

Select the option "SIP" followed by "Create a Systematic Investment Plan". Select the fund name and the scheme. A screen will appear with the details of that scheme similar to that in the Purchase screen. In addition to these details you will have to fill up the frequency with which the investments will be made and the start date. From the date specified a fixed amount will be debited to your bank account. An email will be sent showing the details of the amount invested and the entry in your portfolio will be displayed within T+3 days. You can however enter into only one plan per scheme. In case you do not have sufficient funds in your account in any specific month, the SIP would be rejected for that particular month Top How does the Automatic/ Systematic Withdrawal Plan (AWP/SWP) work?

Select the option for "Systematic Withdrawal Plan". Select the fund name and the scheme. A screen will appear with the details of that scheme similar to that in the Redemption screen. In addition to these details you will have to fill up the frequency with which the withdrawals will be made and the start date. From the date specified a fixed amount will be credited to your bank account. An email will be sent showing the details of the amount withdrawn and the entry in your portfolio will be displayed within T+3 days. You can however enter into only one plan per scheme. However if a SWP\AWP request is rejected for insufficient units, then the entire Plan will be scraped automatically. You will also receive an e-mail indicating that the plan has been scrapped. Top Will TDS be deducted on dividend received?

No, TDS will not be deducted on Dividend payments for both Resident as well as NRI's. Top Can I transact on a holiday?

Yes, You can place your request even on a holiday. However, the request would be processed on the next business day and respective NAV would be applicable as per the Mutual Fund's offer document. Top How to change the address, Name of the Holder,Contact details, Email ID, Bank Details & Tax /Residence Status in Mutual Fund in AMC records?

For change of address, contact details, Email ID, Bank Details & Tax/ Residence status in Mutual fund folios you will have to send a duly filled & signed request letter Mutual Fund change in details form. All the co-holders should sign this letter. Please ensure that the requested details should be updated in KRA before submitting this request. Please note that the Email id and contact numbers are not shared with AMC upfront by ICICI Securities Ltd at the time of initial purchase. Note: If you are MF KRA Compliant then you need to update new address in KRA by submitting the prescribed form to KRA intermediary. Once the address is updated in KRA, on placement of next financial transaction in the folio, AMC shall fetch the address directly from KRA without any request letter. Please send the filled in form at the below address : Mutual Fund Operations Team ICICI Securities Limited, Shree Sawan Knowledge Park, Ground Floor, Plot No. D-507, T.T.C Ind Area,M.I.D.C, Turbhe, Opp Juinagar Railway Station, Navi Mumbai - 400705. The Turn Around Time (TAT) for change in details is 15 working days from the date of receipt of documents at the corporate office. ICICI Securities Ltd ( I-Sec ) will process the request on best effort basis within a reasonable time and I-Sec cannot be held responsible for any loss of documents or delay in processing of the request. 'My Message' will be updated in your icicidirect.com updating the status of your request. Top How to change the Mutual Fund Dividend Option?

To change the dividend option from Payout to Re-investment or vice -versa, you need to place a online request for Dividend modification and send a duly filled & signed Request Letter Change in Dividend Option for every Scheme in which you wish to make the change. to update. For placing online request visit www.icicidirect.com >Trade & invest >Mutual Funds> Manage My Relationship with ICICIdirect >Modify dividend options. Please send the filled in form at the below address : Mutual Fund Operations Team ICICI Securities Limited Shree Sawan Knowledge Park, Ground Floor, Plot No. D-507, T.T.C Ind Area, M.I.D.C, Turbhe, Opp Juinagar Railway Station, Navi Mumbai - 400705. The Turn Around Time (TAT) for Dividend modification/Change of Dividend Option is 15 working days from the date of receipt of documents at the corporate office. ICICI Securities Ltd ( I-Sec ) will process the request on best effort basis within a reasonable time and I-Sec cannot be held responsible for any loss of documents or delay in processing of the request. 'My Message' will be updated in your icicidirect.com updating the status of your request. Top How do I consolidate the mutual fund Folios?

To consolidate Mutual fund folios you need to place online request & send a duly filled & signed request letter Folio Consolidation. For placing online request visit www.icicidirect.com >Trade & invest >Mutual Funds> Folio Consolidation. Please send the filled in form at the below address : Mutual Fund Operations Team ICICI Securities Limited Shree Sawan Knowledge Park, Ground Floor, Plot No. D-507, T.T.C Ind Area, M.I.D.C, Turbhe, Opp Juinagar Railway Station, Navi Mumbai - 400705. The Turn Around Time (TAT) for Folio consolidation is 15 working days from the date of receipt of documents at the corporate office. ICICI Securities Ltd ( I-Sec ) will process the request on best effort basis within a reasonable time and I-Sec cannot be held responsible for any loss of documents or delay in processing of the request. 'My Message' will be updated in your icicidirect.com updating the status of your request. Top Can I make a nomination for the mutual fund units purchased through www.icicidirect.com?

Yes. The website www.icicidirect.com. provides you a facility to make nomination(s) for your Mutual Fund units purchased online. Top Will nomination(s) made in my linked demat/ bank account(s) be automatically updated for the mutual fund units purchased online?

No. Nomination details of your linked bank or demat account are not considered for your online mutual fund purchases. Hence, you would be required to make a separate nomination request for your mutual fund folios. Top Can I cancel a nomination made by me?

Yes. You can cancel your existing nomination at any time before you redeem your mutual fund units. Top What is the effect of making a nomination?

Nomination causes all rights and/or amount(s) payable in respect of your Mutual Fund Holdings to vest in and be transferred to your nominee upon your death. If your legal heir is different from your nominee, your legal heir cannot dispute this action as transfer by the respective AMC(s) in favour of a Nominee acts as valid discharge by the AMC(s) against the legal heir of the deceased holder. Top Who can make a nomination?

Investors in the Category of "Individuals" are permitted to make a nomination for their mutual fund units. Non-individuals including society, trust, body corporate, partnership firm, Karta of Hindu Undivided Family and a holder of Power of Attorney are not allowed to nominate. Top Whom can I nominate?

You can nominate any individual as your nominee. However, you cannot nominate the following as your nominee with regard to your mutual fund units: a. b. c. d. e. f.

A Trust A Society A Body Corporate A Partnership Firm Karta of a Hindu Undivided Family A Power of Attorney Holder Top

Can I nominate a Non Resident Indian as my nominee?

Yes. A non-resident Indian can be a nominee subject to the exchange controls in force, from time to time. Top Can I nominate a minor as my nominee?

Yes. You are permitted to nominate a minor. However, if you nominate a minor, do provide the name and address of the minor's guardian in the nomination request. Top Can I nominate more than one person in my Mutual Fund Folios ?

You can nominate only one person while placing purchase order in new Folio. However you may later give physical request letter for adding nominee. Maximum 3 nominees can be updated in a single folio. Notes: (Nominee Section) 1. Your nomination/ change/ cancellation request will be registered only for those folio numbers details of which are mentioned in the Request form. 2. Once the nominee is updated in AMC records, it shall reflect in your mutual fund unit holdings page on the next working day based the report provided by the Mutual Fund Registrar. 3. The Turn Around Time (TAT) for Nominee updation is 15 working days from the date of receipt of documents at the corporate office. ICICI Securities Ltd ( I-Sec ) will process the request on best effort basis within a reasonable time and I-Sec cannot be held responsible for any loss of documents or delay in processing of the request. 4. 'My Message' will be updated in your icicidirect.com updating the status of your request. In case your request is rejected, the reason(s) for such rejection will also be updated. Top Will my existing mutual fund nomination automatically get updated for all future online Mutual Fund purchases also?

No. Nomination made in your existing mutual fund folios will not be automatically updated for new folios created for fresh mutual fund purchases made by you. For all new folios, you will be required to make a separate nomination request. Top Can I change my nominee?

Yes. You can cancel your existing nomination at any time before you redeem your mutual fund units. Top How do I place a request for Nomination or Change in nomination / Cancellation of my existing nomination through www.icicidirect.com?

To make a Nomination request / Change an earlier Nomination, you would be required to fill the prescribed Form (click to download the form). Please fill in all the relevant details and send the duly signed form to the following address: Attn: Mutual Funds Operations Team ICICI Securities Limited Shree Sawan Knowledge Park, Ground Floor, Plot No. D-507, T.T.C Ind Area, M.I.D.C, Turbhe, Opp. Juinagar Railway Station, Navi Mumbai - 400705 NOTE: Your nomination/ change/ cancellation request will be registered only for those folio numbers details of which are mentioned in the Request form. The Turn Around Time (TAT) for Nominee updation is 15 working days from the date of receipt of documents at the corporate office. ICICI Securities Ltd ( I-Sec ) will process the request on best effort basis within a reasonable time and I-Sec cannot be held responsible for any loss of documents or delay in processing of the request. 'My Message' will be updated in your icicidirect.com updating the status of your request.In case your request is rejected, the reason(s) for such rejection will also be updated. Top I have purchased mutual fund units through www.icicidirect.com. Can I send my nomination request directly to the respective Asset Management Company (AMC) of the mutual fund(s) ?

No. AMC(s) do not accept any direct/ offline request for nomination or other transactions in mutual fund folios that are purchased online. Hence you will have to route all your transactions including nomination related requests through www.icicidirect.com. Can I transfer My Mutual Fund Unit holdings from one ICICIdirect A/c to another?

Yes you can transfer your mutual fund unit holdings from one Match Account (source Account) to another(Target Account), provided both the Match Accounts pertain to same holder(s) and the Source account should be in suspended status and Target Account should not be in suspended status. Requirements of Internal Transfer: 1. You need to close the existing Trading account before sending the Internal Transfer request. 2. You need to cancel any ongoing Systematic Investment plan (SIP) in the source icicidirect.com account before giving any internal transfer request. In case an internal transfer request is given with ongoing SIP in the source account, the same will be canceled. You may in future start a new SIP in the target account. 3. If the folios are held in Joint Holding mode in source account then please ensure that the same joint holders are registered for mutual fund in the target account. 4. The folio numbers and the fund details to be correctly filled in the request letter. Documents required for Internal Transfer: 1. Duly filled & signed Internal Transfer Request Form. 2. Supporting Documents as mentioned in the instructions on the request letter. Please send the above documents at the below address: Attn: Mutual Fund Operations Team ICICI Securities Limited Shree Sawan Knowledge Park, Ground Floor, Plot No. D-507, T.T.C Ind Area, M.I.D.C, Turbhe, Opp Juinagar Railway Station, Navi Mumbai - 400705. The Turn Around Time (TAT) for Internal Transfer is 15 working days from the date of receipt of documents at the corporate office. ICICI Securities Ltd ( I-Sec ) will process the request on best effort basis within a reasonable time and I-Sec cannot be held responsible for any loss of documents or delay in processing of the request. 'My Message' will be updated in your icicidirect.com updating the status of your request. What do I do if I do not have the canceled cheque or the statement of the old bank account which is currently closed/inactive?

A bankers verification letter stating that the old bank account is closed/inactive can be provided. What are documents required in case if I have only changed the bank account type from NRI to RI or vice versa and not the bank account number?

In case only the bank account type is changed from NRI to RI or vice versa,you need to fill only the change in tax/Residence status details & not the bank account details on the Request Letter and the canceled cheque/other valid bank proof bearing the new bank account type to be provided. What is Transfer In :

Transfer In is a process where the customer can transfer his Online/Offline folio held with some other broker or directly with the AMC to Online/Offline broker code of ICICI Securities Ltd.Incase customer wants to transfer the folios to online code of ICICI Securities Ltd then he needs to have an icicidirect.com account. Customer can also transfer his folios from offline broker code of ICICI Securities Ltd to online code of ICICI Securities Ltd. Requirements of Online Transfer In: 1. 2. 3. 4. 5. 6.

The offline folios should be in the name of the Account holder of the icicidirect.com account The primary holder in the folio should be the first holder in the icicidirect.com account. If the mode of holding in folio to be transferred in is joint then the online transfer in order should be placed by selecting the joint holder. The joint holder selected in Transfer in order should be same as the joint holder mentioned in the folio statement as per AMC records. The tax status of customer as per Online trading account should match with that mentioned in folio statement as per AMC records. If the customer has ongoing offline SIP in the folio, it should be cancelled before placing a transfer in request.This is because, the offline SIP transactions done after transfer in will not be reflected in unit holdings of icicidirect.com account. Once transfer in is done, the customer can start a SIP online. 7. If the customer has IPIN facility with AMC for the folio to be transferred in, he needs to cancel the same before applying for transfer in. Documents required for Transfer In: A. For offline to online transfer In – 1. Duly signed Transfer In request Letter, which can be downloaded from www.icicidirect.com, after placing the transfer in order. 2. Latest folio statement for the folios to be transferred in containing holder's name,tax status, mode of holding. 3. If Bank Mandate Change is not opted then the Redemption proceeds and Dividend proceeds (if any) will be processed into the existing "Default" bank account linked to the Folio as per the record of respective RTAs / AMCs. 4. Proof of Existing bank account that is registered in the folio. You may submit anyone of below documents: i. Original or banker attested copy of Letter from the banker mentioning the Account number & Holder's name duly signed by branch manager/authorized personnel with name,employee code & bank seal. ii. Original or banker attested copy of Bank Passbook or Bank Account Statement with Account number & Holder's name printed on it. iii. Original Canceled Cheque Leaf. 5. Proof of New bank account that is linked to icicidirect.com account. You may submit any one of the below documents: i. Original or banker attested copy of Letter from the banker mentioning the Account number, Holder's name,Bank Name, Branch Name , IFSC Code,MICR Code & Account Type duly signed by branch manager/authorized personnel with name,employee code & bank seal. ii. Original or banker attested copy of Bank Passbook or Bank Account Statement (not older than 3 months) with Account number,Account Type & Holder's name printed on it. iii. Original or banker attested copy of Canceled Cheque Leaf with holder's name & Account Type ( SB/SBNRO/SBNRE) printed on it. Note: Few AMCs accept online Transfer in without the request letter. Please refer the instructions given at below path in the logged in session of IDirect account for more details. The processing of online Transfer in without physical request is subject to matching of your signature given on IDirect account opening form with that recorded in AMC records at the time of initial purchase. Trade & Invest>Mutual Fund>Transact>Transfer In B. For online to online transfer In Documents as mentioned above for offline to online transfer In. C. For offline to offline transfer In – 1. Duly signed Transfer In request Letter as per specified format.You may contact nearest ICICI Direct Center or your Relationship manager for the same. 2. Latest statement of holding for the Mutual Fund folio to be transferred How to place order for online Transfer In?

1. 2. 3. 4. 5. 6. 7. 8. 9.

Login to www.icicidirect.com Click on Trade & invest >Mutual Funds >Transfer In option Select AMC pertaining to offline folio which is to be transferred Enter correct folio number and reenter the folio number for validation Select Joint holder name ( if any) from joint holder details Select Bank mandate option yes if you wish to update the bank account linked in your trading account in the Mutual Fund Folio which you wish to Transfer in. Click on Submit. Once the order is submitted, option for printing the TI application will be available. 9.10. Post printing the TI application, the account holder will have to submit the aforesaid forms duly signed (as directed) to the nearest ICICI Direct Store or on below mentioned address. Attn: Mutual Fund Operations Team ICICI Securities Limited Shree Sawan Knowledge Park, Ground Floor, Plot No. D-507, T.T.C Ind Area, M.I.D.C, Turbhe, Opp Juinagar Railway Station, Navi Mumbai - 400705.

The Turn Around Time (TAT) for the Transfer In process is 30 working days from the date of receipt of documents at Corporate office of ICICI Securities Ltd. ICICI Securities Ltd ( ISec ) will process the request on best effort basis within a reasonable time and I-Sec cannot be held responsible for any loss of documents or delay in processing of the request. The status of your Transfer In request will be updated by ICICI Securities Limited in TI book under Mutual fund section in your icicidirect.com account. In case your request is rejected, the reason(s) for such rejection will also be updated. How to cancel online Transfer In Order?

You can cancel your existing Transfer In request if the status of the same is 'Documents Awaited'. 1. 2. 3. 4.

Login to www.icicidirect.com Click on Trade & invest >Mutual Funds >TI Book option Select the relevant period & click on View Then you may proceed with cancellation

What process to be followed if Folio is held in joint mode but icicidirect.com account is in single mode?

Incase customer is holding offline Mutual Fund folio jointly with co-holder, then the process of registration of jointholder in trading account for Mutual Fund product is to be followed before Transfer In. Registration of Joint holder in trading account and 'Transfer In' are sequential process , former has to happen before the latter can be initiated. Is submission of canceled cheque or other proof of bank account mandatory?

If bank mandate option is selected as 'Yes' then Bank proof is required for change in bank mandate in folio which is being transferred into your icicidirect.com account. Incase of change of bank mandate, Bank Proof is required for both the below bank accounts: Bank Proof is required for both the below bank accounts: 1. Existing bank account that is registered in the folio. 2. Bank account that is linked to icicidirect.com account. What can be done if Existing bank account that is registered in the folio is closed?

If the registered bank account is closed, a banker's letter with the bank seal & signature can be taken stating the account status as closed/Inactive from the respective banker.The same to be submitted alongwith Transfer In request. Alternatively you may submit a declaration letter stating that the old bank account is closed. What details should folio statement contain ?

Folio statement should contain below details: 1. 2. 3. 4. 5. 6. 7. 8.

Name of the customer Mode of holding Joint Holder Name (If any) Tax status Folio number Name of AMC Bank account number Existing broker code ( if any).

For AMC - Franklin Templeton what details should I enter under folio details ?

For AMC - Franklin Templeton, 13 digit ' account number' has to be mentioned instead of 'cust folio' under folio details. How does the Transfer In request take place?/b>

Once the customer places a Transfer In request online, the status of the order will be 'Documents Awaited' in TI Book till the customer sends the documents to ICICI Securities Ltd. 1. 2. 3. 4.

On receipt of the documents for Transfer in, they are verified Post verification, the documents are sent to the AMC/Registrar for further processing and the status of the order is changed to "Sent to Registrar" On confirmation from the AMC/Registrar, the number of units transferred in is updated on the Mutual Fund Unit Holdings page and the status of the order then becomes "Executed". Incase Transfer in order is placed for folios pertaining to online AMC (List available on Transfer In order instructions page) with single holder (i.e. Joinholder is NA) and Bank mandate option as 'No' then the status of order shall be directly changed to 'Sent to Registrar' upon order placement. 5. Incase Transfer in order is placed for folios pertaining to online AMC (List available on Transfer In order instructions page) with single holder (i.e. Joinholder is NA) and Bank mandate option as 'Yes' then the status of order shall be 'Documents awaited' as physical request is mandatory for change of bank mandate in the Mutual fund folio. Will all schemes available in my folio get transferred in to my account after completion of Transfer In ?

Yes. After completion of Transfer In process all schemes available in folio will be reflected under Mutual Fund unit holdings page. Can the rejected Transfer In order be rectified & sent for re-processing?

The rejected Transfer In request can be Re-processed In below scenario however you need to place fresh Online Transfer In order for the same: A. Incomplete documentation(i.e. Bank proof not provided, folio statement not provided, etc): The duly signed fresh Transfer In request should be sent to Mutual Fund Operations team along with pending documents mentioning "REJECTED/PENDING TI documents" on the packet.

B. 13 digit folio number not mentioned:This rejection is only for folios belonging to Franklin Templeton AMC. In such case fresh online Transfer In order to be placed by entering 13 digit ' account number' which is mentioned on the folio statement instead of 'cust folio' under folio number. The duly signed fresh Transfer In request should be sent to Mutual Fund Operations team along with pending documents if any mentioning “REJECTED/PENDING TI documents†on the packet.

C. Tax status details not available on statement:The customer needs to arrange for latest folio statement from the AMC with Tax status, mode of holding and bank account details mentioned on it.The same needs to be sent alongwith duly signed fresh Transfer In request to Mutual Fund Operations team along with other pending documents if any mentioning â €œREJECTED/PENDING TI documents†on the packet.

D. Invalid folio number: The folio number should be entered in the same manner as it is mentioned on the folio statement.If the customer has skipped any zeroes before the folio number OR did not add the “/ †and digits following the same OR added extra zeroes or any other characters which is not present in folio number mentioned on folio statement OR placed order with UPPER CASE for Sundaram folios, then the order is rejected as Invalid/Incorrect folio number. In such case the customer has to place fresh online Transfer In order by entering correct folio number. The duly signed fresh Transfer In request should be sent to Mutual Fund Operations team along with pending documents if any mentioning â €œREJECTED/PENDING TI documents†on the packet. Note:For Sundaram AMC the alphanumeric Folio number needs to entered in Folio number field while placing online order.

E. AMC Rejection-Folio having I-PIN facility:The customer has to first disable the I-PIN facility with the AMC. For this the customer needs to give written request to respective AMC to disable I-PIN facility registered for the particular folio. Once the confirmation of disabling I-PIN facility is received from AMC, customer can then place fresh TI order for the rejected folio. The duly signed fresh Transfer In request should be sent to Mutual Fund Operations team along with pending documents if any mentioning â €œREJECTED/PENDING TI documents†on the packet.

F. AMC Rejection-Ongoing Offline SIP:The customer has to first cancel the ongoing Offline SIP registered in the folio with the AMC. For this the customer needs to give written request to respective AMC to cancel the Offline SIP registered in the folio. Once the confirmation of cancelation of SIP from AMC, customer can then place fresh TI order for the rejected folio. The duly signed fresh Transfer In request should be sent to Mutual Fund Operations team along with pending documents if any mentioning â €œREJECTED/PENDING TI documents†on the packet.

G. AMC Name mismatch:This rejection is done incase customer has selected wrong AMC name while placing Online Transfer In order. In such case the customer has to place fresh online Transfer In order by selecting correct AMC name & entering correct folio number. The duly signed fresh Transfer In request should be sent to Mutual Fund Operations team along with pending documents if any mentioning “REJECTED/PENDING TI documents†on the packet.

H. AMC Rejection-Signature mismatch:The duly signed fresh Transfer In request should be sent to Mutual Fund Operations team along with pending documents if any mentioning â €œREJECTED/PENDING TI documents†on the packet. The sign on the Transfer In request should match with that done by the customer at the time of initial purchase in that folio which is updated in AMC records.

I. AMC Rejection-Folio in Dematerialized (Demat) mode:In such case customer needs to rematerialized the Folio (i.e. convert it to physical mode) by contacting respective Depository Participant (DP).Once the folio is rematerialized (converted to physical mode),the customer has to place fresh online Transfer In order.The duly signed fresh Transfer In request should be sent to Mutual Fund Operations team along with pending documents if any mentioning “REJECTED/PENDING TI documents†on the packet.

J. Primary holder name mismatch: If the name of the customer registered in the folio in AMC records does not match with that as per icicidirect.com account,then customer needs to update the correct name in the folio first by giving name change request to AMC alongwith relevant proof.Once the name is corrected in Folio in AMC records customer needs to place fresh Online Transfer In order.The duly signed fresh Transfer In request should be sent to Mutual Fund Operations team along with fresh folio statement with corrected name & pending documents if any mentioning “REJECTED/PENDING TI documents†on the packet.

K. Tax status mismatch:The Tax/Residence status (account category) of icicidirect.com account can be identified from the 10 digit Match account number e.g. 550xxxxxxx – Corporate 651xxxxxxx – NRE/NRI Repatriable 751xxxxxxx – NRO/NRI Non Repatriable 850xxxxxxx – Resident Individual If the Tax/Residence status of the customer on the folio does not match with Tax/Residence status (account category) of icicidirect.com account, then the order gets rejected.In such case the customer needs to change the Tax/Residence status in folio in AMC records by submitting written request for 'change of tax status in folio' to the AMC alongwith relevant proofs. Once the Tax/Residence status is corrected/updated in Folio in AMC records,customer needs to place fresh Online Transfer In order. The duly signed fresh Transfer In request should be sent to Mutual Fund Operations team along with fresh folio statement with corrected Tax/Residence status mentioned on it & pending documents if any mentioning â €œREJECTED/PENDING TI documents†on the packet. Note:If the Tax/Residence status is NRE in folio & online Transfer In order is placed through NRO icicidirect.com account (Match account 751xxxxxxx), Then customer needs to place fresh Online Transfer In order through NRE icicidirect.com account (Match account 651xxxxxxx) and vice versa. What is Transmission of Mutual Funds ?

Transmission is the process of transferring mutual fund units to the claimant/ nominee on the death of sole/All/one or more unit holders. Note: The Online trading account needs to be closed before submitting the Transmission request for Mutual Funds. What are the documents required for Transmission of mutual fund units?

The list of documents required for transmission under various situations is as follows: Note: Self attested Original set of documents (stated below) required for each AMC. 1. Transmission to surviving unit holders in case of death of one or more unitholders: i. Letter from surviving unitholders to the Fund/AMC/RTA requesting for transmission of units, ii. Death Certificate in original or photocopy duly notarized or attested by gazette officer or a bank manager, iii. Bank Account Details of the new first unit holder as per Annexure I along with attestation by a bank branch manager or canceled cheque bearing the account details and account holders name. iv. KYC of the surviving unit holders, if not already available. v. FATCA Declaration of the claimant/s. 2. Transmission to registered nominee/s in case of death of Sole or All unit holders: i. Letter from claimant nominee/s to the Fund/AMC/RTA requesting for transmission of units, ii. Death Certificate/s in original or photocopy duly notarized or attested by gazette officer or a bank manager, iii. Bank Account Details of the new first unit holder as per Annexure I along with attestation by a bank branch manager or canceled cheque bearing the account details and account holders name. iv. KYC of the claimant/s, v. If the transmission amount is Rs One Lakh or more: Notarized Indemnity duly signed and executed by the nominee/s as per Annexure II on stamp paper. vi. FATCA Declaration of the claimant/s. 3. Transmission to claimant/s, where nominee is not registered, in case of death of Sole or All unit holders: i. Letter from claimant/s to the Fund / AMC / RTA requesting for transmission of units, ii. Death Certificate/s in original or photocopy duly notarized or attested by gazette officer or a bank manager, iii. Bank Account Details of the new first unit holder as per Annexure I along with attestation by a bank branch manager or canceled cheque bearing the account details and account holders name. iv. KYC of the claimant/s, v. Notarized Indemnity Bond from legal heir/s as per Annexure III on stamp paper. . vi. Notarized Individual affidavits from legal heir/s as per Annexure IV on stamp paper. . vii. Notarized No Objection Certificate (NOC) incase there are more than one legal heirs. viii. If the transmission amount is below Rs One Lakh: any appropriate document evidencing relationship of the claimant/s with the deceased unit holder/s. ix. If the transmission amount is Rs Two Lakh or more: Any one of the documents mentioned below: a. Notarized copy of Probated Will, or b. Legal Heir Certificate or Succession Certificate or Claimant's Certificate issued by a competent court, or c. Letter of Administration, in case of Intestate Succession. 4. Transmission in case of HUF, due to death of Karta: HUF, being a Hindu Undivided Family, the property of the family is managed by the Karta and HUF does not come to an end in the event of death of the Karta. In such a case, the members of the HUF will appoint the new Karta who needs to submit following documents for transmission: i. Letter Requesting for change of Karta, ii. Death Certificate in original or photocopy duly notarized or attested by gazette officer or a bank manager, iii. Duly certified Bank certificate stating that the signature and details of new Karta have been appended in the bank account of the HUF as per Annexure I iv. KYC of the new Karta and KYC of HUF, if not already available. v. Notarised Indemnity bond signed by all the surviving coparceners and new Karta as per Annexure V on stamp paper.. vi. In case of no surviving co-parceners OR the transmission amount is Rs Two Lakh or more OR where there is an objection from any surviving members of the HUF, transmission should be effected only on the basis of any of the following mandatory documents: a. Notarized copy of Settlement Deed, or b. Notarized copy of Deed of Partition, or c. Notarized copy of Decree of the relevant competent Court Notes: 1. 2. 3. 4.

PAN card copy or another proof of identity of claimant/s is not required separately if KYC acknowledgment issued by CVL is made available. Where the units are to be transmitted to a claimant who is a minor, various documents like KYC, PAN, Bank details, indemnity should be of the guardian of the nominee. With a view to implement common standard documentation, suggested common formats for various documents is attached as annexures for easy reference. While the list of documents mentioned above should be provided in all cases, AMCs may consider seeking additional documents if the amount involved in transmission exceeds Rs One Lakh on a case to case basis. 5. A ready reckoner matrix of various documents required under different situations is provided for convenience as Annexure VI. ANNEXURES/FORMATS: Transmission Annexures What should be the Stamp duty value for Indemnity Bond and Affidavit?

The stamp duty or stamp paper value for indemnity Bond and Affidavit should be as given below: 1. Indemnity Bond Annexure-II : ICICI PRU & HSBC & L&T - Rs. 300/HDFC & Tata- Rs.200/Other AMCs - Rs.100/2. Indemnity Bond Annexure III: HSBC & L&T - Rs. 300/ICICI Pru - For Value less than 5 lakhs -Indemnity Bond from legal heir/s on Plain paper Indemnity Bond with banker or notary attestation For Value > 5 lakhs -Indemnity Bond from legal heir/s on Rs.300 stamp paper with notary attestation ) HDFC & Tata- Rs.200/Other AMCs - Rs.100/3. Individual Affidavit Annexure-IV : ICICI Pru – For Value less than 5 lakhs-Plain paper affidavit with banker or notary attestation. For Value > 5 lakhs- Individual affidavits from legal heir/s on Rs.100/- stamp paper with notary attestation. Other AMCs - Rs.100/Note: All legal heir's signature is required on the affidavits & Indemnity Bond & Sureties' name, address & sign to be provided in Indemnity bond. Where should I send the Documents and what is the TAT for processing transmission request?

The documents needs to be sent to following address : Attn: Mutual Funds Operations Team ICICI Securities Limited Shree Sawan Knowledge Park, Ground Floor, Plot No. D-507, T.T.C Ind Area, M.I.D.C, Turbhe, Opp. Juinagar Railway Station, Navi Mumbai – 400705

The Turn Around Time (TAT) for Transmission is 20 working days from the date of receipt of documents at the corporate office. ICICI Securities Ltd ( I-Sec ) will process the request on best effort basis within a reasonable time and I-Sec cannot be held responsible for any loss of documents or delay in processing of the request. The status of the request will be updated in the My Messages in nominee/ claimant's icicicdirect.com account if available. If nominee/claimant is not having icicidirect.com account a letter would be sent to mailing address provided by the claimant in the Transmission request letter. You may also contact your Relationship Manager for knowing the status. What process to be followed on completion of transmission process by AMC?

On completion of Transmission the mutual fund units of transmitted folio would be transferred in the name of the nominee/claimant who had requested for the same. The nominee/claimant can either request to transfer the units in online mode or offline mode. If the nominee/ claimant is having icicidirect.com account, he needs to follow the online Transfer In process for transferring the units in his online trading account. If the nominee/claimant is not having icicidirect.com account then in such case the transmitted folios would be kept under Offline mode on completion of Transmission. What happens to my Mutual Fund Folios upon closure of my Trading Account in which Mutual Funds units are held and do I need to follow Transfer Out procedure for the same?

Transfer Out procedure is not required to be followed as : i. the said units shall be held under the same folios under ARN code of I-Sec and for doing any transactions (purchase / redemption etc) you will have to approach the respective AMC / RTA directly for transacting in offline mode. ii. you also have an option to approach any other distributor and submit your Transfer-in application form to them which they shall forward to AMC / RTA. Post processing of the Transfer-In request (i.e. Change of Broker Code) the said units shall be transferred by AMC / RTA to the new Distributor/s ARN code. iii. you also have an option to transfer the mutual fund holdings from one I-Sec trading account to. For same, you shall have to complete the requisite Internal Transfer formalities. Top What is meant by Joint Holder facility in Investment products?

Joint Holder facility is a facility by ICICI Securities Limited (I-Sec) on www.icicidirect.com for making investments in Investment Products in Joint Holding mode. Top Can I invest in mutual funds in joint holder mode through www.icicidirect.com?

Yes Top What is meant by Investment products ?

Investment products like Fixed deposits, Mutual Fund units, GOI Bonds that are offered by I-Sec in it's capacity as a referral agent to a Principal. The term does not include Equity/ Currency /other products traded on the exchanges. Top What will be the mode of operation under the joint holding pattern?

The mode of operation for the joint holding will be 'Anyone or Survivor' only. Top Who can avail of the Joint Holder facility?

The Joint Holder facility can be availed of by all the existing as well as new clients of I-Sec. The holder of the online trading account has the right to request for availing the facility. Top Can a joint holder in the linked demat or bank account make a request for availing the Joint Holder facility?

No. As mentioned above, only the trading account holder ie the First holder in the linked demat and bank account alone can make a request for availing the Joint Holder facility. Top How can I avail of the Joint Holder facility?

To avail of the Joint Holder facility, you will have to first register the names of the persons with whom you wish to make investments jointly through www.iccidirect.com. After the persons are successfully registered with I-Sec as your joint holders, you can start making investments in joint mode . Top Who can be registered as Joint Holder ?

You may predominately appoint any person, aged 18 years or above, who are your family members or other persons as Joint Holders. You will have to mention your relationship with the person while requesting for registering him as a Joint Holder. Top Can the joint holders in my Demat and Bank Account be registered as joint holders for Investment products also?

Yes, you may register your joint holders in Demat and Bank Account as joint holders for Investment products also. Top What is the eligibility criteria for registering a person as Joint Holder?

An individual who is 18 years or above and who has a PAN card can be registered as Joint Holder. Top Is there any limit on the number of persons I can register as joint holders ?

Yes. Currently, you can appoint maximum 3 persons as Joint Holders. Top How many Joint holders can I select while making Investments?

The number of Joint holders that you will be permitted to select will depend on the product feature. Thus while some products may allow you to select all the 3 Joint Holders there may be others in which Joint holding will not be permitted. Top How would I know what is the permitted number of Joint Holders any Investment?

Depending on the product, the site www.icicidirect.com will allow you to select only the permitted number of Joint holders. Top Is there any limit on the different combination of Joint Holders while making investments?

No. You may choose to have as many combinations as you wish across different joint holders. Top I am a registered customer of I-Sec. What is the process for registering a person as my Joint Holder?

For registering a person as your Joint Holder, you will have to submit the duly filled and signed request letter to the nearest ICICI Center/ISec Hub. Please click here to download registration form /request letter. In addition to the request letter, you will also have to submit self attested KYC documents of each proposed joint holders. Further, if you are not already registered with CVL (CDSL Ventures Limited), you will have to fill the KRA KYC form also for completing KYC formalities with CVL. Top I am not a registered customer. Is it mandatory to fill the Joint Holder request letter at the time of account opening?

No, the Joint Holder facility is optional. You may or may not opt for availing the facility at the time of account opening. However, you may avail of the facility at any time even after the account is opened. Top Is it mandatory for the Joint Holders to be KYC complaint with CVL?

Yes, it is mandatory that the Joint holder is KYC Compliant as per CVL. Top Can I add Joint Holders in my existing folios?

No. You cannot add joint holders to your existing folios. Top How will I know about status of my Joint Holder registration request?

After the Joint Holder has been registered, the name will be updated the system and will be displayed in the logged in section of your www.icicidirect.com account. The processing of your registration request will normally be completed within 7 working days. Top Where can I view the names of my registered Joint Holders ?

You can view the names of your registered Joint Holders as follows: In case of Mutual Funds: On the Unit Holding Page of the Mutual Fund section under the column Nominee/Joint Holder by clicking on the "View Joint Holder". In case of Fixed Deposit/GOI Bonds: Order Placement Page under the column Nominee and clicking on the "View Joint Holder". Top Can I deactivate any Joint Holder at a later date?

Yes, you may request for removing/deleting the name of any joint holder at any point in time after the registration . Top What is the process for deactivation of Joint Holder/s ?

To deactivate a Joint Holder, you will have to submit a duly filled and signed request letter to any of the ICICI Securities Centers/hubs. On receipt of the request and on verifying your signature, I-Sec shall deactivate such Joint Holders. Top What happens after a Joint Holder is deactivated?

After a Joint Holder is deactivated, all further purchases in the scheme will be made in a fresh folio only. Also, I-Sec shall cancel all the pending transactions and running SIP [if any]. Kindly note that incase you are holding any mutual fund units with the said person as Joint Holder in that case you will only have an option to redeem such units (at any time) and the redemption proceeds of the same shall be credited directly by the AMC/Registrar to your registered bank account. Top Is there a guide that will help me understand how to place transactions in Joint mode?

Please click here to understand the process of order placement. Top Are there any changes in the way I redeem or switch investments held in Joint mode?

No there is no change in the procedure for redeeming/switching your existing units. Top Can I make Additional Purchase from the Unit holdings page?

Yes, you have an option to place fresh purchase transactions from the Unit Holding Page. You will have to click on 'Additional purchase link' mentioned against the folio on the Unit Holding Page. Thereafter, the process flow remains the same Top Can I Transfer-In my existing offline Mutual Fund units which I am holding in Joint Holding mode to my ICICIdirect account?

Yes, you can transfer your existing offline mutual fund units which you are holding in Joint Holder Mode to your ICICIdirect Account provided you have registered the said joint holders . Please ensure that the names of all the holders in the offline folio matches exactly with the names as registered on www.icicidirect.com. Top Can the Joint Holders give instructions for any transaction on www.icicidirect.com?

No. I-Sec will not accept any instruction, whether financial or non financial, from the joint holders as the trading account is held by you and not the joint holders. The holder of the trading account, will be the authorised person for all the registered joint holders and I-Sec will accept instructions only from the account holder. Top Will I-Sec send related communications to the joint holders for investment held with them jointly?

No. All communications pertaining to the investments made through www.icicidirect.com, whether in Single name or Joint name, will be sent to you I.e. holder of the trading account only. Top Incase of an unfortunate event of demise of any of the Joint Holders, what formalities have to be completed by the surviving Joint Holders?

All the surviving Joint Holders (for each folio - separately) will have to inform the respective AMC/Registrar and I-Sec of the demise of the Joint Holder and will have to complete all the legal formalities as mandated by the respective AMC / I-Sec. I-Sec will cancel all SIPs and pending purchases that are registered in joint name with the deceased Joint Holder.

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