HDFC Mutual Fund has decided to introduce HDFC Swing Systematic Transfer Plan (hereinafter referred to as ¡°Swing STP¡±) for the benefit of the Unitholders with effect from 21 February 2012.
The terms and conditions of Swing STP are as follows:
1. Swing STP is a facility wherein unit holder(s) can opt to transfer an amount at regular intervals from designated open-ended Scheme(s) of HDFC Mutual Fund (¡°Transferor Scheme¡±) to the Growth Option of designated open-ended Scheme(s) of HDFC Mutual Fund (¡°Transferee Scheme¡±) including a feature of Reverse Transfer from Transferee Scheme into the Transferor Scheme, in order to achieve the Target Market Value on each transfer date in the Transferee Scheme, subject to the terms and conditions of Swing STP. Currently, the Scheme(s) eligible for this facility are as follows:
HDFC Liquid Fund, HDFC Cash Management Fund, HDFC Income Fund, HDFC High Interest Fund, HDFC Short Term Plan, HDFC Floating Rate Income Fund, HDFC Short Term Opportunities Fund, HDFC Medium Term Opportunities Fund, HDFC Gilt Fund, HDFC MF Monthly Income Plan (an open - ended income scheme. Monthly income is not assured and is subject to availability of distributable surplus), HDFC Growth Fund, HDFC Equity Fund, HDFC Top 200 Fund, HDFC Capital Builder Fund, HDFC Core & Satellite Fund, HDFC Premier Multi-Cap Fund, HDFC Index Fund, HDFC Balanced Fund, HDFC Prudence Fund, HDFC Mid-Cap Opportunities Fund, HDFC Long Term Equity Fund, HDFC Infrastructure Fund and HDFC Gold Fund (an open ended fund of fund scheme investing in HDFC Gold Exchange Traded Fund).
2. The objective of Swing STP is to achieve the Total Target Market Value in the Transferee Scheme by transferring an amount from the Transferor Scheme at regular intervals in such a way so as to increase the Target Market Value of units in the Transferee Scheme systematically by a fixed amount (i.e. the first installment amount specified by the Unitholder) on the date of each transfer till the tenure of the Swing STP. The amount to be transferred will be arrived at on the basis of the difference between the Target Market Value and the actual Market Value of the holdings in the Transferee Scheme on the date of transfer.3. Swing STP has the following features:
Transfer: The first Swing STP installment will be processed for the first installment amount specified by the Unitholder at the time of enrollment. From the second Swing STP installment onwards, the transfer amount may be higher/lower than the first installment amount, as derived by the formula stated below:
(First installment amount X Number of installments including the current installment) ¨C Market Value of the investments through Swing STP in the Transferee Scheme on the date of transfer.
In case the amounts (as specified above) to be transferred are not available in the Transferor Scheme in the unit holder¡¯s account, the residual amount will be transferred to the Transferee Scheme and Swing STP will be closed.
Reverse Transfer: On the date of transfer, if the Market Value of the investments in the Transferee Scheme through Swing STP is higher than the first installment amount X number of installments (including the current installment), then a Reverse Transfer will be effected from the Transferee Scheme to the Transferor Scheme to the extent of the difference in the amount, in order to arrive at the Target Market Value.
4. Swing STP offers transfer facility at weekly, monthly and quarterly intervals. Unit holder is free to choose the frequency of such transfers.
5. The total amount invested through Swing STP over its tenure in the Transferee Scheme, may be higher or lower than the Total Target Market Value of the investment (i.e. the first installment amount X total number of installments specified by the Unitholder). This may be on account of fluctuations in the Market Value of the Transferee Scheme. If you decide to take up this facility, you should be aware of the possibility, that the total amount invested through Swing STP could be higher or lower than the Total Target Market Value of the investment.
6. The redemption/ switch-out of units allotted in the Transferee Scheme shall be processed on First In First Out (FIFO) basis. In case there is a redemption/ switch-out of any units allotted under Swing STP in the Transferee Scheme by the unit holder, the balance installments under Swing STP will be processed as a normal STP for the remaining installments by investing the amount indicated as first installment amount, on the date of each transfer over the balance tenure of the Swing STP, subject to availability of unit balance in the Transferor Scheme.
7. a. The minimum amount per Swing STP installment shall be as follows:
¡ñ Swing STP - Weekly & Monthly Interval: Rs. 1,000 and any amount thereafter.
¡ñ Swing STP - Quarterly Interval: Rs. 3,000 and any amount thereafter.
b. There should be a minimum of 6 installments for enrollment under Weekly and Monthly Swing STP and 2 installments for Quarterly Swing STP. Beginning of quarter could be any month. There is no maximum duration for Swing STP enrollment.
c. The minimum unit holder¡¯s account balance or a minimum amount of application at the time of Swing STP enrolment should be Rs. 12,000.
8. In respect of Swing STP enrollments made in the above-mentioned Transferor and Transferee Scheme(s) (and in Transferor Scheme for instances of Reverse Transfer), the Load Structure prevalent at the time of enrolment shall govern the investors during the tenure of the Swing STP as under:
¡ñ Exit Load for Transferor Scheme: The transfer under the Swing STP from the Transferor Scheme to the Transferee Scheme will be effected by redeeming units of Transferor Scheme / Plan / Option at the Applicable NAV, after payment of Exit Load, if any, and subscribing to the units of the Transferee Scheme at Applicable NAV.
¡ñ Exit Load for Transferee Scheme: Applicable Exit Load, if any, in the Transferee Scheme / Plan / Option as on the date of enrollment for Swing STP will be levied.
¡ñ Exit Load for Transferor Scheme (for units purchased through Reverse Transfer): Applicable Exit Load, if any, in the Transferor Scheme / Plan / Option as on the date of enrollment for Swing STP will be levied.
9. Swing STP will be automatically terminated if all units are liquidated or withdrawn from the Transferor Scheme or pledged or upon receipt of intimation of death of the unit holder.
10. The provision of ¡®Minimum Redemption Amount¡¯ as specified in the Scheme Information Document(s) of the respective designated Transferor Scheme(s) (Transferee Scheme(s) in case of Reverse Transfer) and ¡®Minimum Application Amount¡¯ specified in the Scheme Information Document(s) of the respective designated Transferee Scheme(s) (Transferor Scheme(s) in case of Reverse Transfer) will not be applicable for Swing STP.
11. Unit holders will have the right to discontinue the Swing STP facility at any time by sending a written request to the ISC. On receipt of such request, the Swing STP facility will be terminated within15 days.
12. Taxation: The redemption/switch-out of units under Swing STP by way of Transfer/Reverse Transfer would be subject to applicable taxes, if any.